Reserve Bank of India (RBI) Deputy Governor Swaminathan J has underlined the importance of calibrated and adaptive regulation in strengthening the resilience of India’s banking sector, including urban cooperative banks (UCBs).
Speaking at the School of International and Public Affairs (SIPA), Columbia University, on Monday, Swaminathan said that banking resilience must be built through transparent recognition of stress, stronger supervision, balance-sheet strengthening, adaptive regulation, and sound governance within institutions.
Referring to regulatory initiatives undertaken by the RBI, he cited tier-based regulatory frameworks for urban cooperative banks, scale-based regulation for NBFCs, digital lending guidelines, IT governance requirements, and directions on fraud risk management as examples of a calibrated approach to regulation.
The Deputy Governor noted that modern supervision has evolved beyond compliance checks to include assessments of governance, risk management, technology risk, cyber resilience, conduct, and emerging vulnerabilities.
He emphasized that resilience must be built within institutions through sound governance, accountability, and prudent risk management practices.