be subject to less frequent but regular assessments. good quality internal audit reports can provide valuable insights mitigating current risks and anticipating areas of potential risks by evaluating the risk management systems and control procedures prevailing in various areas of a bank's operations. it can also play an important role in preventing and detecting frauds. role of rbi onsite examinations by rbi are not intended to be fault finding missions and instead to provide an insight into the overall health of the bank. they often pick up issues missed by the internal assurance functions and external audit. we would also like you to give due attention to the risk assessment report ( rar ) observations and risk mitigation plans ( rmp ) issued by the rbi. to ensure sustained compliance, it is important to address the root cause of the observations. further, there should be no compromise on the agreed timelines for rmps, and the bank should ensure that all rmp items and rar observations are comprehensively addressed well before the start of the next 3 / 4 bis - central bankers'speeches inspection cycle. pending compliance paragraphs is not a desirable situation and may be a reflection of the lack of due attention by the management as well as the board. such instances can also invite stern supervisory action. conclusion one of the most important facets of effective assurance functions is independence. there are regulations already in place that provide for adequate stature, direct lines of reporting and preventing of dual hatting of assurance functionaries. i would urge you to ensure that these regulations are complied with and that you are not engaged in any role which compromises your independence. overall, i believe assurance functions, if they work effectively, can create an environment in the bank where adherence to laws, regulations, ethical standards, and internal policies is paramount, and where everyone is committed to doing the right thing. effective assurance functions are indispensable in promoting trust, integrity, and compliance within the banking sector. by working collaboratively and proactively, we can navigate the challenges ahead and ensure the long - term success of our institutions. i once again extend my sincere regards to all present and wish that going ahead in future we collectively embark on a journey of financial resilience drawing from the key ideas discussed here. i also look forward to listening from you. 4 / 4 bis - central bankers'speeches

k c chakrabarty : empowering msmes for financial inclusion and growth – issues and strategies keynote address by dr k c chakrabarty, deputy governor of the reserve bank of india, at the central bank of india sme conclave, mumbai, 20 december 2011. * * * assistance provided by smt l vadera in preparation of this address is gratefully acknowledged. shri m. v. tanksale, chairman and managing director, central bank of india ( cbi ), smt v. r. iyer, executive director, central bank of india, shri chadrakant salunkhe, president sme chamber of india, shri a. ramesh kumar, md & ceo – asia pragati capfin pvt ltd, sme entrepreneurs, staff members of cbi, distinguished guests, members of the print and electronic media, ladies and gentlemen. it is my pleasure to be here at this conclave on the eve of the conclusion of centenary year celebrations of central bank of india. as you all may be aware, central bank of india, which was established way back in 1911, has a glorious past and would be celebrating its foundation day on december 21, 2011. i take this opportunity to congratulate shri tanksale, cmd, smt iyer, ed, all employees and customers of the bank and all the other stakeholders on completing a remarkable hundred years of exemplary service to the nation. the bank was the realization of the dream of shri sorabji pochkhanawala, a visionary, a philanthropist and a rare breed of people who richly deserve our tributes. it was the first commercial bank which was wholly owned and managed by indians. central bank of india, over the years, has won the trust and confidence of its clients and it comes as no surprise then that it has become one of the most prominent banks in india. but more importantly, the bank had a rich tradition of promoting small and medium entrepreneurship and played a sterling role in the industrial development of the bombay presidency region. however, over a period of time, this zeal of promoting entrepreneurship development appeared to have dimmed a bit and, therefore, i am extremely happy that as their centenary year draws to a close, central bank of india is bringing the limelight back to smes and rededicating themselves to the cause. i congratulate shri tanksale for organizing this conclave on “ empowering smes for inclusive growthstrategies and