<p>Mumbai: Lenders must strengthen their governance standards and ensure robust cybersecurity controls to curb digital frauds, the Governor of the Reserve Bank of India (RBI) told bank chiefs on Wednesday.</p>.<p>RBI Governor Shaktikanta Das, in his opening remarks at a meeting with the CEOs of private and public sector banks in Mumbai, also emphasised the importance of lenders strengthening their risk management practices and compliance culture.</p>.<p>The central bank has been increasingly encouraging banks to strengthen governance standards to avoid financial instability and prevent systemic risks, and has fined and placed restrictions on non-compliant entities.</p>.RBI Governor Shaktikanta Das emphasises on need to eliminate biases in algorithms.<p>For example, in April, the RBI barred private lender Kotak Mahindra Bank from taking on new customers via its online and mobile banking channels and from issuing new credit cards due to information technology-related deficiencies.</p>.<p>Das also urged banks to adopt cybersecurity controls and effectively manage third-party risks, the central bank said in a statement, without specifying these risks.</p>.<p>He also urged banks to step up efforts against so-called mule accounts, which are used for illegal activities, and intensify customer awareness and education initiatives, among other measures, to curb digital frauds.</p>.<p>Other topics discussed at the meeting included liquidity risk management, the persistent gap in credit and deposit growth, trends in unsecured retail lending and increasing the Indian rupee's use in cross-border transactions, the RBI said. </p>
<p>Mumbai: Lenders must strengthen their governance standards and ensure robust cybersecurity controls to curb digital frauds, the Governor of the Reserve Bank of India (RBI) told bank chiefs on Wednesday.</p>.<p>RBI Governor Shaktikanta Das, in his opening remarks at a meeting with the CEOs of private and public sector banks in Mumbai, also emphasised the importance of lenders strengthening their risk management practices and compliance culture.</p>.<p>The central bank has been increasingly encouraging banks to strengthen governance standards to avoid financial instability and prevent systemic risks, and has fined and placed restrictions on non-compliant entities.</p>.RBI Governor Shaktikanta Das emphasises on need to eliminate biases in algorithms.<p>For example, in April, the RBI barred private lender Kotak Mahindra Bank from taking on new customers via its online and mobile banking channels and from issuing new credit cards due to information technology-related deficiencies.</p>.<p>Das also urged banks to adopt cybersecurity controls and effectively manage third-party risks, the central bank said in a statement, without specifying these risks.</p>.<p>He also urged banks to step up efforts against so-called mule accounts, which are used for illegal activities, and intensify customer awareness and education initiatives, among other measures, to curb digital frauds.</p>.<p>Other topics discussed at the meeting included liquidity risk management, the persistent gap in credit and deposit growth, trends in unsecured retail lending and increasing the Indian rupee's use in cross-border transactions, the RBI said. </p>