New Delhi: To deal with the uncertainties posed by the coronavirus epidemic, the banking sector needs to tighten corporate governance and risk management standards, the Reserve Bank of India (RBI)  said on Tuesday.

With SWIFT technological advancements in the digital payments backdrop and emergence of new entrants across the FinTech ecosystem, banks would also be required to prioritise upgrading their IT infrastructure and improving customer services, together with strengthening their cybersecurity. "Banks would need to strengthen their corporate governance practices and risk management strategies to build resilience in an increasingly dynamic and uncertain economic environment," the RBI said in its report on 'Trend and Progress of Banking in India 2020-21'.

It said although credit offtake by banks remained subdued in an environment of risk aversion and muted demand conditions during 2020-21, a pick up has started in the second quarter of 2021-22. " The revival in bank balance sheets hinges around overall economic growth which is contingent on progress on the pandemic front," it said.

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