In a move to bolster the operational resilience of Small Finance Banks (SFBs), Reserve Bank of India (RBI) Deputy Governor Swaminathan J. emphasized the need for vigilance and proactive risk management during a conference for SFB directors held in Bengaluru.
Speaking at the event themed Governance in SFBs – Driving Sustainable Growth and Stability, Swaminathan highlighted the critical role of governance in ensuring the sustainable growth of SFBs. He urged directors to adopt a proactive stance in identifying and mitigating emerging risks, stressing the importance of a strong cybersecurity framework to protect against growing digital threats.
‘Governance will play a pivotal role in guiding SFBs towards stability and sustainable business models,’ said Swaminathan. He also pointed to the need for SFBs to strengthen financial inclusion, enhance customer service, and improve grievance redressal mechanisms.
The conference, part of a series of supervisory engagements by the RBI, brought together directors from several SFBs. It follows similar initiatives by the central bank for public sector and private sector banks in May 2023, and for urban cooperative banks in August 2023 and June 2024.
RBI Executive Directors SC Murmu, Rohit Jain, and RLK Rao, along with senior officials from the supervision, regulation, and enforcement departments, conducted technical sessions at the event.
