With the aim of making small finance banks (SFBs) more resilient, the Reserve Bank of India today held talks with chief executives of SFBs to increase board oversight and improve risk management and make IT setup robust.
The discussions were held on a range of themes such as evolution of the business models of SFBs, enhancing Board oversight and professionalism, RBI said in statement.
The issue of further improvement in assurance functions–compliance; internal control and risk management–also figured in discussions. They also deliberated on building their IT infrastructure both for enhanced customer experience and for cyber security resilience.
The stress build-up due to Covid-19 and mitigation steps for continued resilience of books of SFBs were also discussed.
Analysts said while most of them have established viability and robust networks the past 3-4 years, they have faced severe headwinds during the past 18 months of the Covid-19 pandemic. As a result, they will need more time to build a higher share of low-cost deposits (Current Accounts and Savings Accounts) and enhance the contribution…
