RBI Guv calls for reduced dominance of individual directors on bank boards
Reserve Bank of India (RBI) Governor Shaktikanta Das has emphasised the need to avoid the excessive dominance of one or two directors in the functioning of bank boards. He has urged directors to engage in open and frank discussions, and to be proactive in questioning bank operations.
Addressing directors of urban cooperative banks (UCBs), Das noted that the RBI had observed such undue influence even in major commercial banks. When identified, the RBI has advised these banks against such practices. The governor first addressed UCB directors on August 30, 2023, and the video of his remarks was released on Monday.
Das asserted that directors in UCBs, who are elected to their positions, must possess expertise in diverse banking functions, including risk management and inf...