On Thursday, five banking sources said India’s central bank would meet separately with state-run and private bank executives late next month to address supervision, ethics, and governance.
According to sources, RBI officials, including Governor Shaktikanta Das, would meet with state-run bank executives on May 22 and private bank executives on May 29.
“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.”
One source claimed RBI Governor Shaktikanta Das will address state-run bank chairpersons and directors on these themes, particularly the board’s “assurance functionalities.”
The individual said that the RBI’s deputy governors and executive directors of its Supervision, Regulation, and Enforcement Departments would attend.
Since they could not speak to the media, the bankers declined to be named. An RBI email went unanswered.
Three mid-sized U.S. banks collapsed in March, causing volatility in the U.S. and European financial sectors and fears of spillover to India.
Indian policymakers have often emphasized that India’s financial system is safe and resilient.
Das stated last month that the banking sector is “well-supervised and well-regulated,” with lenders buffered against unexpected stress and the RBI in frequent contact 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 added.
“The RBI is holding these meetings to identify and prevent unexpected stress.”
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