RBI'S INCREASED EXAMINATION OF BANKS' BUSINESS MODELS MAKE CEOS UNEASY

CEOs are feeling uneasy because of the RBI’s increased examination of bank business models? The financial services industry becoming more bureaucratic

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Is Governor Shaktikanta Das’ comment about the Reserve Bank of India’s (RBI) deeper examination of banks’ business models a response to leaving CEO of Kotak Bank Uday Kotak’s remarks on the bureaucratization of financial services? It would seem so.

Das has stated that a bank’s business model and strategy are intimately related to its financial resiliency. Therefore, the RBI has begun paying closer attention to banks’ business models. At a conference sponsored by the College of Supervisors in Mumbai on “Future-Proofing the Indian Financial System,” Das discussed how aspects or flaws in the business model itself could eventually cause a crisis.