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Asserting that banks are repository of public resources, the Reserve Bank of India (RBI) Deputy Governor M K Jain has said that lenders need to design appropriate governance standards and implement internal controls to be worthy of the public trust. He emphasized that corporate governance is the cornerstone for any enterprise and it assumes a distinctly different undertone and importance for banks.

RBI Deputy Governor said it is well known that banks are special in terms of services they render and the segments they touch, and they act as catalysts in growth of the economy. He said most importantly, banks enjoy the privilege of mobilising uncollateralised public deposits. He pointed out that the negative externalities of banks and NBFCs are also much higher due to their interconnectedness and that's why globally, banks are regulated and supervised very closely.

Stressing that governance reforms have been an area of continued focus for the RBI, Jain said that various regulatory measures, including the mandatory listing of private sector banks, composition of the board and guidance on fit and proper criteria, have all been driven to improve the corporate governance and internal controls in the banks. He said various prudential supervisory initiatives have been taken by the RBI in recent years for bringing about the unified and more holistic approach to supervision and improving skill and capacity of supervisory staff.