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RBI Deputy Governor urges UCBs to stay alert on financial risks

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Deputy Governor of the Reserve Bank of India (RBI), M Rajeshwar Rao, called on large Urban Co-operative Banks (UCBs) to remain vigilant in monitoring and managing risks. Speaking at a conference in Mumbai for the heads of assurance functions from over 120 UCBs, Rao emphasized the need for effective risk management amid rising competition and evolving financial challenges.

The conference, themed “Resilient Financial System – Role of Effective Assurance Functions,” brought together around 300 participants, including Chief Compliance Officers, Chief Risk Officers, and Heads of Internal Audit.

In his keynote address, Rao highlighted the critical role of assurance functions in ensuring financial stability. He urged Chief Risk Officers to support bank management in monitoring and containing risks on their balance sheets. Rao also called for compliance officers to adopt a forward-looking approach and for internal auditors to establish robust communication channels to facilitate proactive reporting and necessary corrective actions.

Deputy Governor Swaminathan J. echoed these sentiments, outlining the RBI’s supervisory expectations. He asserted that effective assurance functions are vital for maintaining the financial soundness of banks and upholding customer trust. Swaminathan stressed the importance of continuously updating and strengthening internal control systems to manage emerging and traditional risks. He reiterated the RBI’s zero-tolerance policy towards poor governance practices in UCBs.

PR Newswire

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