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RBI Governor Shaktikanta Das on Wednesday told the managing directors and CEOs of public and private sector banks that the customer grievance redress mechanism and protection of customers’ interests are of paramount importance for the safety and stability of the financial system and that of individual financial institutions.

At the meeting held here, the RBI Governor complimented the banks on their improved financial performance and that of the whole banking sector.

However, while noting the resilience of the domestic financial system with healthy balance sheets of banks, he observed that there is no scope for any complacency and banks should continue to maintain their vigil around build-up of risks, if any.

The RBI Governor highlighted the issues relating to Business Model viability; outlier growth in personal loans; adherence to co-lending guidelines; Bank exposure to NBFC sector; Liquidity Risk Management; IT and Cyber security preparedness, operational resilience, digital frauds; and strengthening of the internal rating framework.

He also encouraged the banks to actively participate in RBI’s FinTech initiatives and give a further push to the Digital Banking Units.