beyond symbolism to genuine accountability and vigilance When Reserve Bank of India (RBI) Deputy Governor Swaminathan Janakiraman recently cautioned that governance lapses often lie at the root of financial failures, his warning echoed a pattern that India’s financial sector has witnessed repeatedly over the past decade. From infrastructure finance giants collapsing under opaque debt structures to banks failing due to concentrated lending and weak oversight, the common threa

The Reserve Bank of India (RBI) has recently tightened regulations governing how Non-Banking Financial Companies (NBFCs) lend to borrowers who have already defaulted on existing loans. The regulatory move aims to prevent the practice of extending fresh credit to stressed borrowers without adequate safeguards—a practice that can mask underlying asset quality issues and deepen systemic risk. While the intent of the RBI’s action is sound and necessary, the intervention arguably

Audience:  NBFC Board of Directors | Audit Committee | Risk Management Committee Applicability:  Middle Layer & Upper Layer NBFCs (heightened relevance post SBR) Objective:  To identify  areas of highest regulatory and personal liability exposure  for NBFC directors under RBI oversight. This is in continuation to my earlier blog which focussed on "Tone at the Top" for Banks and financial Institutions. However my experiences make me capture and articulate NBFC governance linke

Audience:  Board of Directors | Audit Committee | Risk Management Committee Objective:  To identify areas of highest regulatory exposure for directors and committees under RBI supervision. Over the years i have interacted with mutiple Financial services entities in India and Abroad. I have also had the opportinity to engage with financial regulators in the course of my consulting engagements. i have realized that that "Tone at the Top" sets up the financial institution for su

Regulator:  Reserve Bank of India (RBI) Audience:  Audit Committee & Risk Management Committee Purpose:  To summarise recent RBI regulatory expectations and highlight priority oversight actions for committees. Time Horizon:  Ongoing / FY 2025–26 planning WHAT HAS CHANGED & WHY IT MATTERS 1. Regulatory Context RBI’s regulatory stance has evolved toward  outcomes-based supervision , with increasing emphasis on: ·       Board and committee effectiveness ·       Early identificat

Regulator:  Reserve Bank of India (RBI) Audience:  Bank Boards, Audit Committees, Risk Management Committees, Independent Directors Purpose:  To summarise recent RBI regulatory and supervisory developments and outline their implications for board-level oversight, fiduciary responsibility, and institutional resilience. 1. Why This Matters for Bank Boards Recent RBI regulatory actions reflect a  decisive shift from rules-based supervision to outcomes-based oversight , with a st