such training. … extending the scope • while talking about financial education, it is important that the focus also extends to the urban populace, including the literate masses, which may not be having the financial acumen, technology suaveness and may not be'financially literate '. it is not that the urban masses are well versed in the internet banking and other newer methods of banking ; there continues to remain a segment, which either avoids using the services due to lack of confidence or remains unaware of the options available. financial education to such target group would be mutually beneficial. • there is also need for greater awareness of various products and services offered by banks. a specific case that comes to mind pertains to the housing finance sector. rbi had also raised the issue of transparency and fairness in housing loans in the recent mid - term review of monetary policy. it has been reported that some banks, while lending for housing, are not fully transparent in indicating the factors governing the benchmark in respect of floating rates as well as in regard to reset clauses. as part of consumer awareness, many initiatives have been taken to increase the disclosure levels on part of lenders, but effectiveness of all this would be predicated on the financial understanding of the person taking the loan. the short point is - does the consumer understand the underlying principle of a floating rate or can he even ensure that the bank has been fair and transparent in its dealing with him? clearly, there is need for financial education to prevent vulnerable consumers from falling prey to'financially disquieting credit arrangements '. even in regard to remittance facilities and foreign exchange encashment, the lack of awareness about the various facilities could adversely impact a population segment at the'bottom of the pyramid'which is the beneficiary of smaller remittances from migrant workers. recently, a working group on cost of nri remittances has stressed in its report the need for an ongoing'awareness program'for imparting basic awareness on facilities existing for making remittances, particularly for migrant workers. apart from other things, this could also help in reducing the cost of effecting remittances. • though the term'financial education has come to be associated with individual / personal finance, a very important segment that must be brought under the ambit of such initiatives relates to small entrepreneurs and small businesses. particularly when the effort is towards'inclusive growth ', it is these segments in smaller

swaminathan j : the crucial role of assurance functions in urban cooperative banks speech by mr swaminathan j, deputy governor of the reserve bank of india, at the conference of heads of assurance of urban cooperative, mumbai, 16 may 2024. * * * deputy governor shri rao, heads of assurance functions from urban cooperative banks, and my colleagues from the reserve bank of india. a very good morning to all of you. the reserve bank of india has been engaging with its supervised entities regularly over matters of governance and effectiveness of assurance functions. we have had a series of engagements with the boards of directors of both commercial and cooperative banks conveying the importance of strong corporate governance and remaining vigilant to ensure the continuing stability of the financial sector. we have also been meeting the heads of assurance functions, recognising the key role these functions play in ensuring the safety and soundness of the banks and promoting regulatory compliance. today's conference is an extension of our efforts to engage with assurance functionaries. assurance functions namely, the risk management, internal audit and compliance functions play a very crucial role, as guardians ensuring the bank operates safely, ethically and within regulatory and legal boundaries. assurance functionaries, by becoming effective gatekeepers, can give the required comfort to all stakeholders that the bank is on the right track, its systems are strong, its operations are reliable, and its risks are managed effectively. as conscience keepers of the bank, they are intended to detect and prevent any deviations or build - up of any potential risks, safeguard the reputation of the bank and help uphold the trust of its customers and other stakeholders. in the ever - changing landscape of banking, new risks constantly emerge. while traditional risks like credit, market, and liquidity risks remain significant, we now face new challenges such as cybersecurity threats and operational disruptions. the proliferation of digital technologies and the interconnected nature of financial systems have exposed banks to a myriad of cyber threats, ranging from data breaches to malicious ransomware attacks. the potential impact of a successful cyberattack on a bank's operations, reputation, and financial stability cannot be overstated, underscoring the critical importance of robust cybersecurity measures and proactive risk mitigation strategies. operational risk has also become increasingly complex and pervasive, fuelled by a variety of factors including technological advancements, outsourcing arrangements, and the associated dependencies. disruptions to critical systems and processes, whether due