The various regulatory measures including the mandatory listing of private sector banks, composition of the Board and its Committees, guidance on “fit and proper” criteria and on remuneration, separation of chairperson from managing director / chief executive officer have all been driven to improve the corporate governance and internal controls in banks. Supervisory Initiatives 7.
I shall now highlight the various prudential supervisory initiatives taken by Reserve Bank in recent years. The broad objectives of these can be detailed as follows: (i) Bringing about a unified and more holistic approach to supervision and improving skill and capacity of supervisory staff. (ii) Improving the governance practices and internal defenses in supervised entities, including an assessment of business model adopted.