(ET)
The Department of Financial Services has asked heads of all state-run banks to initiate the process of reforming their boards in line with governance changes announced by finance minister Nirmala Sitharaman on Friday as part of the mega banking reform package. “With a view to institutionalize accountability for observance of approved risk appetite, the bank may give the risk committee of its board a mandate to periodically review adherence to the risk appetite framework of the bank and to fix accountability in the event of breach of approved risk appetite,” the Financial Services Department said in a letter sent to state-run banks.
