In a recent development, the Reserve Bank of India (RBI) has issued a call for enhanced oversight and improved functioning within urban cooperative banks (UCBs), stressing the pivotal role of the audit panel of the board.
Emphasizing the significance of early irregularity detection, the RBI highlighted the criticality of leveraging technology within the internal audit function.
Deputy Governor M Rajeshwar Rao addressed directors and chief executives of select UCBs in Lucknow, shedding light on the indispensable role UCBs play in providing banking services, particularly to the unbanked.
Rao underscored the need for effective governance and emphasized the importance of a robust risk management framework to ensure the soundness of banking operations.
Continuing its engagement with UCB directors, the RBI organized a conference for the Northern Zone in Uttar Pradesh’s capital, themed ‘Governance in UCBs: Risk Management, Compliance, and Audit.’
Governor Shaktikanta Das, in his recent statement on monetary policy, stressed the imperative for banks, NBFCs, and other financial entities to prioritize governance quality and regulatory compliance. He reminded financial sector players of their responsibility in handling public funds, urging them to remain vigilant.
RBI’s Executive Director Rohit Jain reiterated the importance of a strong and independent assurance function in his special address. He highlighted the role of the Audit Committee of the Board in enhancing overall oversight within banks.
Jain also discussed areas requiring improvement and emphasized the necessity of bolstering cybersecurity and operational resilience in UCBs.
The conference featured sessions focusing on UCBs’ oversight and assurance functions, alongside discussions on building resilient risk management systems.
It culminated in an interactive session between participants and senior RBI officers, providing a platform for dialogue and exchange of ideas.