RBI Governor Shaktikanta Das urged banks to strengthen their governance standards, risk management practices, and compliance culture during meetings with managing directors (MDs) and chief executive officers (CEOs) of public sector banks and select private banks. He acknowledged the improvements in banks’ asset quality, loan provisioning, capital adequacy, and profitability, but stressed the need for further enhancement in governance, risk management, and compliance. The discussions also covered topics such as the gap between credit and deposit growth, liquidity risk management, unsecured retail lending trends, cybersecurity controls, third-party risk management, and measures to combat digital fraud. Additionally, the meetings addressed issues related to credit flows to MSMEs, increasing the usage of the Indian Rupee for cross-border transactions, and banks’ participation in innovation initiatives. The meetings were attended by deputy governors M Rajeshwar Rao and Swaminathan J, along with executive directors responsible for regulation and supervision. The previous meetings took place on February 14, 2024.