Reserve Bank of India has started taking a close look business models of banks and their strategies after it transpired that some of them are interested in serving their investors rather than depositors.
Speaking at the State Bank of India (SBI) Banking & Economic Conclave, RBI Governor Shaktikanta Das sounded a word of caution to commercial banks over their business practices while acknowledging that they had weathered the pandemic shock better than expected. Shaktikanta Das who became RBI governor in 2018 for three years recently got an extension of another three years. While emphasising the need for good governance for strong and resilent financial institutions, Das said the board of directors of a bank has the responsibility of being the guardians of the trust that the depositors reposed in it. The RBI governor was unusually frank finally relieved that he could address audiences physically frank finally relieved that he could address audiences physically for the first time the pandemic outbreak at the annual SBI Economic Conclave where he was talking to a hall filled with senior bankers and the who’s who of the Indian corporate sector.