New Delhi: Reserve Bank of India (RBI) Deputy Governor Swaminathan J on Friday asked Small Finance Banks to be vigilant and ensure that risks are mitigated in time.
After inaugurating an RBI-organised conference of SFB directors in Bengaluru, Swaminathan said governance will play a significant role in guiding SFBs towards sustainable growth.
"He (Swaminathan) also exhorted the directors to be vigilant and proactive in identifying and mitigating emerging risks and highlighted the importance of sustainable business models," an official statement said.
He emphasised the need to strengthen cybersecurity to safeguard against digital threats, as per the statement.
The commercial banker-turned-central banker also suggested a stronger focus on financial inclusion, customer service and grievance redressal by such lenders, it added.
The event themed 'Governance in SFBs - Driving Sustainable Growth and Stability' is part of a series of supervisory engagements that the Reserve Bank has been organising with the Directors of its Supervised Entities in the recent past, it said.
It follows conferences for directors on the boards of public sector banks and private sector banks held in May 2023, and for urban cooperative banks in August 2023 and June 2024.
RBI's Executive Directors SC Murmu, Rohit Jain and RLK Rao along with other senior officials from the supervision, regulation, and enforcement departments also participated in the conference.
Officials from the central bank conducted technical sessions on various aspects, such as 'Governance and Assurance Functions', 'Business Risk Regulatory and Supervisory Expectations' and 'IT Systems and Cybersecurity' at the event.
It concluded with an interactive session of the participants with RBI executive directors.
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