board's role to provide oversight, asking the right questions and holding the management accountable for executing the bank's strategy within the agreed risk appetite. in this context, it is imperative that the views of the board are clearly articulated and documented in the minutes of the meetings of the board and its various subcommittees. it is said that the'palest ink is better than the best memory '. proper documentation serves as a vital record of the board's deliberations, decisions, and rationale behind those decisions, ensuring transparency and accountability in governance. clear minutes not only provide a historical account of the board's discussions but also serve as a reference for future decision - making, helping to maintain continuity and clarity in governance practices. boards should prioritise proper succession planning for top management. having just one whole time director ( wtd ) can create potential vulnerabilities, especially in times of transition or unforeseen circumstances. without a well - thought - out succession plan, 2 / 5 bis - central bankers'speeches the bank may face leadership gaps that could disrupt operations and affect strategic decision - making. a broader pool of experienced leaders also contributes to better governance and more resilient management structures. we observe that while the sfbs are strengthening their boards by bringing in new directors, some sfbs are yet to ensure the presence of at least two whole time directors. i would request these banks to expeditiously consider appointing more wtds. empowering assurance functions boards should accord due importance to assurance functions, namely, risk management, compliance and internal audit. these functions play a critical role in identifying and mitigating risks, ensuring compliance with laws and regulations as well as safeguarding the organisation's integrity. boards should ensure that heads of assurance functions are positioned appropriately within the organisational hierarchy and granted direct access to the board. dual - hatting, or combining assurance responsibilities with operational or management duties, undermines the independence and objectivity of assurance functions by creating conflicts of interest. therefore, any dual hatting of assurance functions, should be avoided. key risks to reflect upon small finance banks have demonstrated strong growth since their inception, now accounting for 1. 18 percent of total banking assets ( as of march 2024 ). this is a substantial rise from 0. 44 percent in march 2018. the deposit base has grown at a 32 per cent compounded annual growth rate ( cagr ) over the last five years whereas net advances recorded a cagr

extend my best wishes for successful deliberations during this three - day conference and commend the organisers for their efforts. may the next three days be filled with fruitful exchanges, innovative ideas, and collaborative solutions that would contribute to the process of keeping our financial system resilient, future ready, and crisis resistant. 1 dr sheri marina markose, professor of economics, university of essex, colchester, uk & cbdc academic advisory group, bank of england & uk hm treasury. 2 dr. hiroko oura, head, financial sector assessments and policies division, mission chief, fsap, india, imf, washington dc, usa. 3 through a combination of training programs, workshops, seminars, and conferences, the college equips supervisors with the knowledge, skills, and tools necessary to fulfil their responsibilities effectively. 4 the gross non - performing assets ( gnpa ) ratio for the scheduled commercial banks ( scbs ) was 2. 74 per cent at end march 2024 ( provisional ), down from 3. 87 per cent as on march 31, 2023 and 5. 82 per cent as on march 31, 2022. the capital to risk weighted assets ratio ( crar ) at 16. 8 per cent at end march 2024 is also much above the minimum regulatory requirement. the gnpa ratio of nbfcs was 3. 96 per cent at end march 2024 ( provisional ), down from 5. 03 per cent at end march 2023, and 6. 29 per cent at end march 2022. the capital to risk - weighted asset ratio ( crar ) at 26. 58 per cent at end march 2024 is also well above the minimum regulatory requirement. 5 the erstwhile departments of banking supervision, non - banking supervision and cooperative banking supervision were merged to form a single unified department of supervision. 6 refer paragraph 2 of governor's monetary policy statement dated june 7, 2024 ( https : / / www. rbi. org. in / scripts / bs _ pressreleasedisplay. aspx? prid = 58049 ) 5 / 6 bis - central bankers'speeches 6 / 6 bis - central bankers'speeches