RBI tells bank boards to prioritize strategic decisions over operations
The Reserve Bank of India (RBI) is shaking up how bank boards work, asking them to spend more time on big policy decisions instead of getting bogged down in everyday operational stuff.
This change follows the sudden exit of HDFC Bank's chairman, which put a spotlight on governance issues.
RBI official Sanjay Malhotra pointed out that too many small details are crowding board meetings and making it tough to talk strategy.
RBI imposes temporary foreign exchange limits
Malhotra reassured everyone that India's banks are safe and well-regulated, even if a few like IDFC First and IndusInd have had some bumps: these aren't signs of a bigger crisis.
To keep things steady, the RBI has put temporary limits on foreign exchange transactions and might lift them if markets calm down.
Plus, there's a push with SEBI to build the capacity of independent directors and strengthen corporate governance.