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Focus on sustainable business model, governance: RBI tells SFBs in meeting

SFBs were advised to continue to evolve in tune with the differentiated banking licence given to them with proportionate growth in their capital base.

photo: Bloomberg
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Photo: Bloomberg

Manojit Saha Mumbai
The Reserve Bank of India (RBI) on Friday asked small finance banks (SFBs) to focus on sustainable growth and accord importance to business model and governance.

RBI Deputy Governors M. K. Jain and M. Rajeshwar Rao held discussions with managing directors (MDs) and chief executive officers (CEOs) of SFBs. Executive directors of supervision and regulation and other senior officials of the RBI also attended the meeting, the central bank said in a statement.

“In the meeting, the emphasis on according due importance to these themes for sustainable growth of SFBs, particularly their business model and governance, was reiterated after taking