As India is soon to become World’s third largest Economy, Deputy Governor of RBI claimed that Indian banking sector is undergoing a decade-high performance in financial metrics.
He said that the central bank is busy improving the auditing process to safeguard the integrity and stability of financial institutions.
“Auditors and chief financial officers are key pillars of financial integrity and governance in our banking system. Auditors must apply due rigor in their audit processes to mitigate any potential for divergence, under-provisioning, or non-compliance with statutory and regulatory requirements,” said Swaminathan at a conference in Mumbai.
According to Swaminathan, the RBI has expedited the employment of auditors, established exception reporting, and organized meetings between supervisory teams and auditors.
Additionally, he issued a warning to Chief Financial Officers about fraudulent transactions and the evergreening of loans through particular bank accounts with enormous corpus amounts devoid of justification.
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Additionally, Swaminathan emphasized the significance of cooperation between all involved in the banking and financial sector.
According to the RBI, India’s Financial Inclusion Index (FI-Index) climbed to 64.2 for the fiscal year that concluded on March 31, 2024, from 60.1 in March 2023. Growth was seen in all of the sub-indices as well.
The FI-Index’s improvement is indicative of a nation-wide increase in financial inclusion.
There has been a renewed national focus on financial inclusion, promoting financial education and literacy and making credit available to productive sectors of the economy including the rural and Micro, Small and Medium Enterprises (MSME) sector which has led to the improvement in the FI-Index.
