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RBI Deputy Governor M Rajeshwar Rao has said that India's banking sector needs to address gaps in the governance frameworks and assurance functions in a bid to gear up to meet the future challenges as the country strives to become a developed nation by 2047. He emphasized that financial institutions will need extraordinary amounts of financial resources to support growth to realize the visions for a brighter tomorrow.  

Rao has stated that raising these resources would not be a constraint for financial intermediaries with robust governance frameworks as they can command a governance premium. It is important in this context to gain and retain the trust of other stakeholders such as depositors and various providers of financial resources. This is best ensured by strong governance, control, and assurance functions in financial institutions. Also, he said while we collectively aspire for an efficient financial intermediation with positive spillover to the real sectors, these aspirations are set in an increasingly competitive, diverse, and interconnected world. 

RBI Deputy Governor said the banking sector in India at this juncture is sound, resilient, and financially healthy. So, the time is perhaps right to improve the plumbing by addressing the gaps in governance frameworks, assurance functions and strategise for better times ahead. Observing that it is essential for the management to deliver good performance, he said but more importantly this should be achieved by adhering to acceptable customer and market conduct and best corporate governance practices.