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While such techniques might produce temporary gains, they eventually subject the financial institution to substantial lasting dangers, consisting of reputational damages, managerial analysis, and punitive damages, states RBI Governor Shaktikanta Das.
Shaktikanta Das states the rewards for financial institution team ought to be meticulously structured so as not to urge them to delight in dishonest techniques. (File Photo)
RBI Governor Shaktikanta Das on Monday asked financial institution boards to reinforce inner administration structure to suppress dishonest techniques, such as mis-selling of items or opening of accounts without appropriate KYC confirmation.
Das additionally stated that the rewards for financial institution team ought to be meticulously structured so as not to urge them to delight in dishonest techniques.
“While such techniques might produce temporary gains, they eventually subject the financial institution to substantial lasting dangers, consisting of reputational damages, managerial analysis, and punitive damages,” he said in a keynote address at the Conference of Directors of Private Sector Banks here.
Das further said that the Indian banking sector is transitioning through a time which is replete with opportunities as well as risks and challenges.
“The banking sector remains strong and stable. All the financial indicators have improved since we met in May last year, reflecting the efforts of the various participants of the banking sector, including their management and boards,” he stated.
To maintain the strength of the financial system undamaged, the guv stressed that solid basics should be leveraged to strengthen and strengthen the protections.
“Good times, besides, are the most effective times to strengthen strength and expand sustainably,” he added.
Das also said that in the rapidly evolving and technology-driven environment, organisations face significant challenges and risks.
Factors like technological advancements, the rise of new-age fintech entities, third-party dependencies and climate change are reshaping the economic landscape, he added.
Amid these shifting tides, bank boards should serve as a lighthouse for lenders and provide steady guidance to help navigate these challenges and steer towards safe and prosperous shores, he said.
(This tale has actually not been modified by News18 team and is released from a syndicated information company feed – PTI)
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