Reforms meaningful only if understood in proper perspective: Mundra

RBI’s prompt corrective action framework facilitates banks to take corrective measures to restore their financial health, said SS Mundra

geetanjali

Geetanjali Minhas | July 14, 2017 | Mumbai


#prompt corrective action   #banks   #RBI deputy governor   #SS Mundra   #Governance Now   #India Banking Reforms Conclave 2017  


“Any intended reforms will be meaningful only if they are understood in proper perspective which all stakeholders have to value,” said RBI deputy governor SS Mundra while delivering his keynote address at the Governance Now, India Banking Reforms Conclave 2017, in Mumbai on Friday.
 
Mundra said that despite banks deploying best technology for securing their network, cyber attacks  have acquired unprecedented scale and complexity. 
 
He cautioned customers to use passwords protection provided by banks rationally and with responsibility. He added: “All security footprints of the person who has initiated the transaction can be captured in the system.”
 
Explaining PCA (Prompt Corrective Action) framework of the RBI, the top banking official said: “Sometimes the stake holders fail to appreciate the import of intended changes and get misled by the uninformed or at times motivated interpretations. The related aspect is the reaction of customers to such propaganda.”
 
He added: “PCA framework is one such supervisory tool which involves monitoring of certain performance indicators of banks as an early warning exercise. It is initiated on thresholds relating to capital, asset quality etc. Its objective is to facilitate for banks to take corrective measures including those prescribed by the RBI in a manner to restore their financial health.”
 
Mundra said though PCA Framework has been in operation since Decemeber2002, the April 13, 2017 guidelines are only a revision in the framework .
 
“The entire exercise is to restore the health of PCA bank through closer and expert engagement of our supervisory team with management of  such banks  for assessment of progress made.”
 
He explained that the amount of Rs 6 lakh crore lent to 10 companies/ individuals as mentioned by sections of the media may be exposure to certain groups of certain industrial conglomerates or several entities within the group, including SPVs. “It is too ad hoc to assume that all entities under in such a group are under stress and all would simultaneously default.”
 
He added that RBI being the regulator of financial sector is no way connected to lending by banks.
 

 

Comments

 

Other News

IBC is like a nuclear arsenal: Its value lies in deterrence not in use

The Standing Committee on Finance of the parliament has come out with a report on implementation of the Insolvency and Bankruptcy Code (IBC) - pitfalls and solutions. It was presented in both houses of parliament on August 3. It has gone into the basic pillars of the IBC, studied corporate insolvency resol

CBIC launches Compliance Information Portal (CIP)

The Central Board for Indirect Taxes & Customs (CBIC) has launched the Indian Customs Compliance Information Portal (CIP) for providing free access to information on all Customs procedures and regulatory

Maharashtra eases restrictions: All shops to remain open till 8 pm on weekdays

Starting Tuesday, Maharashtra has relaxed restrictions in 22 out of the 36 districts reporting low case positivity numbers of Covid-19. However, Level 3 restrictions will continue in Kolhapur, Sangli, Satara, Pune, Ratnagiri, Sindhudurg, Solapur, Ahmednagar, Beed , Raigad and Palghar.

e-RUPI voucher, another milestone in digital India

Today (August 2), prime minister Narendra Modi launched the e-RUPI voucher system which is another milestone in Digital India. Simply put, this will be a digital payment which will be delivered to mobile phones of beneficiaries, even with no bank account and this payment is like an e-Voucher in form of a S

Thackeray, Pawar lay foundation stone for BDD Chawls redevelopment

Inaugurating the project to redevelop the famed BDD Chawls at Jamboree Maidan in Worli area of central Mumbai, Maharashtra chief minister Uddhav Thackeray appealed to the residents not to sell their new homes and to preserve the chawl’s culture and history. The Bhoomipujan, earlier sch

BJP-RSS have never had elected presidents to date: Pawan Khera

In a scathing attack on the government, PawanKhera, national spokesperson of the Congress party, has said that the BJP is remote-controlled by RSS, an unregistered organisation that decides who the PM will be and lead the country, yet no question is asked to them. Asking how Amit Shah, JP N

Visionary Talk with Pawan Khera, On Present State of Governance & Congress Party


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter