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Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday emphasised on strengthening governance standards.

Addressing a meeting of managing directors and chiefs of select non-banking finance companies (NBFCs) and housing finance companies (HFCs), Das said that governance standards and assurance mechanisms such as compliance, risk management and internal audit should be made stronger, reads a statement issued by the RBI. 

In the meeting, which was held in Mumbai, ways to contain the increasing reliance on bank borrowings, risks associated with high credit growth in the retail segment, prioritising the upgrade of IT systems and cyber security were also discussed, the statement said. 

Das also discussed ways to strengthen balance sheets with improved provisioning cover and monitoring of stressed exposures and slippages. It was also ensured that robust liquidity and asset-liability management should be ensured. In addition to this, adherence to the fair practices code, including robust grievance redress mechanism, were also discussed, the statement said.