Keeping India’s goal of becoming a more inclusive economy by 2047, banks should align their strategies with the developmental aspirations of the people, Das said.

Reserve Bank Governor Shaktikanta Das voiced concerns over banks miscategorizing customer complaints as "queries" and urged bank boards to prioritize customer centricity. He emphasized the importance of trust in banking and addressing concerns to ensure the industry's stability and growth.

If granted an extension, Shaktikanta Das would become the longest-serving head of India's central bank since Sir Benegal Rama Rau's term ended in 1957.

The Governor also asked bank boards to strengthen the internal governance framework to curb unethical practices, such as mis-selling of products or opening of accounts without proper KYC verification.

Reserve Bank Governor Shaktikanta Das on Monday expressed concerns over instances wherein banks misclassify complaints as "customer queries" and asked bank boards to ensure lenders' genuine commitment to customer centricity.

RBI Governor Shaktikanta Das also stated that incentives for bank employees should be properly designed so that they are not encouraged to engage in unethical behaviour.

Das’s term comes to an end in December, top sources say process under wraps. PM Modi seen to continue with key appointments in third term

Governor Shaktikanta Das, a Reuters report said on Monday. According to the report, three sources told the agency that the government is poised to give a third term to Das. The move would make Shaktikanta Das the longest-serving RBI Governor since the 1960s.

RBI Governor Shaktikanta Das emphasizes the need for bank boards to proactively manage risks by monitoring their portfolios for over-concentration, addressing unethical practices and structuring incentives appropriately.

While such practices may yield short-term gains, they ultimately expose the bank to significant long-term risks, including reputational damage, supervisory scrutiny, and financial penalties, says RBI Governor Shaktikanta Das.

RBI Governor emphasizes bank boards to prevent unethical practices and strengthen internal governance for long-term stability.