The Reserve Bank of India vide its notification dated 11th June 2020 has released on its website a Discussion Paper on ‘Governance in Commercial Banks in India’ for public comments. The paper is aimed to align the current regulatory framework with global best practices while being mindful of the context of the domestic financial system.
Among the major issues that the paper highlights to empower the Board of Directors to set the culture and values of the organization; recognize and manage conflicts of interest; set the appetite for risk and manage risks within the appetite; improve the supervisory oversight of senior management.
Further, it seeks to empower the assurance functions through various interventions, to achieve a clear division of responsibilities between the Board and the management and to encourage the separation of ownership from management.
Thereby, RBI has sought public suggestions and comments on this discussion paper by the latest till July 15, 2020.
Click here to read the notification.
