RBI flags board dominance by some directors at banks

RBI Governor Shaktikanta Das has expressed concern over the excessive domination of boards of large commercial banks by a few directors. Speaking to directors of urban cooperative banks, Das emphasized the need for free and frank board discussions and rotation of directors. He also highlighted the importance of stringent underwriting standards and protecting the interests of depositors. Additionally, Das stressed the significance of good governance, compliance, risk management, internal audit, and leadership in differentiating between good and bad banks. He suggested that commercial banks choose directors with expertise in specific areas like IT and credit.

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