RBI, Bank Executives To Hold Talks On Supervisory Issues In May: Report

India’s central bank will hold separate meetings with the executive of state-run and private banks late next month to discuss supervision, ethics and governance issues, five banking sources said on Thursday.

Reserve Bank of India (RBI) officials, including Governor Shaktikanta Das, will meet with executives at state-run banks on May 22 and with private banks’ executives on May 29, the sources said.

“The RBI has been regularly gathering inputs from banks about the status of supervisory methods, risk management and stress testing,” said a senior banker at a private sector lender.

“The RBI is probably looking to discuss the feedback with banks’ management on a broader and individual level.”

RBI Governor Shaktikanta Das will address the chairpersons and directors of state-run banks on these topics, including the role of the board of directors on a bank’s “assurance functionalities”, one of the sources said.

The meetings will also include the RBI’s deputy governors and executive directors of its Department of Supervision, Department of Regulation and Enforcement Department, the person said.

The bankers declined to be named as they are not authorised to speak to the media. The RBI did not immediately respond to an email seeking comment.

The collapse of three mid-sized U.S. banks in March led to turbulence in the U.S. and European banking sectors and sparked fears of the spillover impact reaching Indian shores.

However Indian policymakers have, on multiple occasions, assured that India’s banking system is stable and resilient.

Last month, Das said the banking system is “well-supervised and well-regulated,” with lenders having sufficient buffers against any unforeseen stress and the RBI in constant touch with banks.

“Banks are constantly doing stress testing and monitoring of any risk on their balance sheets regularly and the RBI is intimated regarding the same,” a second banker said.

“The RBI is holding these meetings to ensure that any unforeseen stress is identified early and how it could be prevented.”

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)