One or two board members in big banks: Das

Mumbai: RBI Governor Shaktikanta Das said that the Reserve Bank has noticed that even in the country's big commercial banks, one or two members of the board are ruling. He has also told the banks that such policies should be stopped.

A PTI report said Das, while addressing directors of urban cooperative banks in a meeting organized by the RBI, said that there should be free and democratic discussion on the board of the bank.

One or two members of the bank's board or the chairman or vice-chairman should not dominate the board too much. We have seen this fact in large commercial banks. Wherever we have seen this, we have told that such method will not work, said Das.

Each director should be allowed to present his side and one particular director should not have the final word on any matter. Giving an example of what is called a good board of a bank, the governor said this. However, he did not say anything in detail.

This problem was seen earlier in promoter-led Yes Bank. This bank was rescued through the initiative of SBI.

Directors of urban cooperative banks need to be aware of various aspects of banking sector like risk management, information technology etc. It is important for directors to clarify any doubts they may have.