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Acknowledging the higher resilience and strength of the banking sector, Reserve Bank of India (RBI) governor Shaktikanta Das has asked banks to further strengthen the governance standards, risk management practices and compliance culture.

RBI governor also urged them to step up efforts against 'mule accounts' and also intensify customer awareness and education initiatives, among other measures, to curb digital frauds. He also emphasised the need for banks to ensure robust cybersecurity controls and effectively manage third-party risks.

As part of the RBI's continuous engagement with the senior management of its regulated entities, Das held meetings with the managing directors (MDs) and chief executive officers (CEOs) of public sector banks and select private banks. Persisting gap between credit and deposit growth; liquidity risk management and ALM-related issues; and trends in unsecured retail lending were among the issues which were discussed at length. Cybersecurity, third-party risks, and digital frauds; strengthening of assurance functions; credit flows to MSMEs; increasing the usage of Indian Rupee for cross-border transactions; and banks' participation in innovation initiatives of the Reserve Bank too were discussed in detail.