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RBI calls on banks to remain vigilant against accumulation of risks
Photo courtesy: wikipedia.org

RBI calls on banks to remain vigilant against accumulation of risks

| @indiablooms | 14 Feb 2024, 10:05 pm

Mumbai: RBI Governor Shaktikanta Das cautioned banks about the accumulation of risks within the banking system during a meeting with CEOs. He underscored the importance of remaining vigilant and avoiding complacency, stressing that banks must stay alert to potential risks, media reports said.

The governor’s comments gather importance in the background of growing incidents of fraudulent practices and scams in the banking system.

In October last year, the Central bank directed the Bank of Baroda (BoB) to stop onboarding new customers via its digital banking app, BoB World.

UCO Bank witnessed discrepancies in its IMPS services from November 10 to 13. Following this, the bank temporarily disabled the IMPS money transfer option offline due to a technical glitch.

This glitch resulted in some transactions by customers of other banks being credited to UCO Bank account holders without the actual receipt of money from these banks.

At the meeting, Das further asked the banks to continue implementing strong risk management measures.

Furthermore, Das emphasised concerns about the sustainability of business models, exceptional growth in personal loan segments, compliance with co-lending regulations, bank exposure to the non-banking financial company (NBFC) sector, management of liquidity risks, readiness for IT and cyber security challenges, operational robustness, digital fraud prevention, and enhancement of the internal rating system, reported Moneycontrol.

Das also encouraged the banks to actively participate in RBI’s Fin Tech initiatives and bolster the Digital Banking Units (DBUs).

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