Mumbai, January 27: RBI Governor Sanjay Malhotra held meetings with managing directors (MDs) and chief executive officers (CEOs) of Public Sector Banks and select Private Sector Banks on Monday. He flagged the rise in digital fraud and advised banks to establish robust and proactive systems to thwart such attempts.
Key Points
1.
Enhance digital fraud prevention and cybersecurity mechanisms
2.
Deepen financial inclusion and improve credit accessibility
3.
Strengthen customer service and technology investments
4.
Promote close collaboration between RBI and banking institutions
He exhorted the banks to ensure continued financial stability, deepen financial inclusion, improve digital literacy, enhance the availability and affordability of credit, strengthen customer service and grievance redress mechanisms, and continue to invest in technology.
The interactions were part of the central bank's continuous engagement with the senior management banks. The meetings were also attended by Deputy Governors M Rajeshwar Rao, T Rabi Sankar, and Swaminathan J, along with executive directors-in-charge of regulation and supervision. The previous such meeting was held on July 3, 2024.
The Governor, in his opening remarks, acknowledged the important role played by the banks in building the resilience of the domestic financial system while highlighting some of the main vulnerabilities present globally that can pose downside risks.
While dwelling upon IT risk management and cyber security, the Governor urged banks to have enhanced oversight over third-party service providers for mitigation of the risks emanating from them.
The need for RBI and banks to work together closely was emphasized and suggestions were sought from the banks on enhancing the ease of doing business.
Malhotra, who was serving as the revenue secretary at the Ministry of Finance, was appointed as the new Governor of Reserve Bank of India on December 9, 2024. The appointment has been effective since December 11, 2024, and will continue for three years.
Sanjay Malhotra is an Indian Administrative Service Officer of the 1990 Batch Rajasthan Cadre. He is an Engineering Graduate in Computer Science from the Indian Institute of Technology, Kanpur and has a Master's in Public Policy from Princeton University, USA.
