Reserve Bank of India (RBI) Governor Shaktikanta Das today asked bank boards to strengthen the internal governance framework to curb unethical practices, such as mis-selling products or opening accounts without proper KYC verification. Das also said that the incentives for bank staff should be carefully structured to avoid encouraging mis-selling or unethical practices.

He was delivering a keynote address at the Conference of Directors of Private Sector Banks in Mumbai. The governor has also urged bank boards to proactively manage concentration risks by monitoring portfolios, identifying over-concentration, and addressing potential vulnerabilities.

It was the second annual conference organised by the Reserve Bank with the boards of private sector banks as part of a series of engagements with them. The conference had the participation of over 200 directors of private sector banks, including chairmen, managing directors and chief executive officers.