Pune: Reserve Bank governor Shaktikanta Das blames absence of effective control for fraud in banking sector. He said that in the coming months, the Reserve Bank will focus on reforms in corporate governance in banking and non-banking sector to enhance transparency and accountability.
Underline the importance of control
As per the information received from the sources, Das while addressing the 15th annual convocation ceremony at NIBM said that it has been found that most of the banks are not responsible for effective control of frauds. Strong control system is the essential element for an effective system of internal control. It is the responsibility of the Board of Directors and senior management to underline the importance of internal control by their actions and statements.
Also speak something
At the same, he said that banks should train their employees on a regular basis so that they can fully understand the importance of internal control at their respective workplaces. The Board of directors of banks needs to focus exclusively on developing a culture of effective control within the bank. Das said that his first and foremost task in the coming months would be to push forward operational reforms in the banking and non-banking sector.