India's cenbank says banks' group entities cannot be used to circumvent norms

The Reserve Bank of India (RBI) issued a directive urging banks to improve group-level risk management practices. This comes in light of concerns over rising systemic risks from large conglomerates that operate multiple entities. The central bank highlighted the need for banks to carefully monitor exposures at both individual and group levels, ensuring that any risks are adequately mitigated. With the increasing complexity of financial structures, the RBI’s directive aims to safeguard the financial system from potential contagion risks posed by interconnected businesses, emphasizing the importance of prudent governance and risk management in maintaining financial stability.