Mumbai: The Reserve Bank on Friday discussed with the heads of the small finance banks (SFBs) the stress build-up due to the COVID-19 pandemic and other related issues.
The round-table discussion of RBI Deputy Governors M K jain and M Rajeshwar Rao with managing directors and chief exceutives of small finance banks was held through video conference.
The discussion, according to an RBI release, focused on a range of issues including evolution of the business models of SFBs; enhancing board oversight and professionalism; further improvements in assurance functions, compliance; internal control and risk management; and need to build up their IT infrastructure both for enhanced customer experience and for cyber security resilience. "...the stress build-up due to COVID-19 and the mitigation measures for continued resilience of books of SFBs also formed part of the discussion," it said.
Challenges and the way forward were also deliberated upon to enable the SFBs to play their role in the Indian financial intermediation space and contribute to financial inclusion, the RBI said. The deputy governors recognised also the contribution of SFBs towards financial inclusion by extending credit and reaching out to the underserved sections of society.