Ethics in banking not a 'soft theme', says RBI Deputy Governor

RBI Deputy Governor Swaminathan J stressed that banking ethics is a critical discipline, not a "soft theme". He said it protects all stakeholders, prevents small compromises from becoming large problems, and supports regulatory discipline and transparency.

The Reserve Bank of India (RBI) Deputy Governor Swaminathan J on Wednesday said the ethics in banking is sometimes treated as a "soft theme". "It is not. It is the discipline that protects customers, employees, and the institution itself."

While speaking at the Axis Bank Champions Awards ceremony, the RBI DG said, "Every large organisation faces moments of temptation: the temptation to cut corners, to postpone a difficult disclosure, to take a convenient interpretation, or to treat a complaint as an inconvenience. Ethics is what stops small compromises from becoming large problems. It is not about being perfect. It is about how you handle grey areas, and how fairly and quickly you correct a mistake," he said.

Regulatory Discipline and Institutional Reliability

He said the same mindset supports regulatory discipline as well. "Regulatory discipline should never be seen as a box-ticking exercise. It is part of institutional reliability and long-term credibility."

The Core of Customer Centricity

Emphasising customer centricity, Swaminathan noted that effective service is rooted in getting the basics right, including clarity in communication, accuracy in execution, fairness in dealings, and timely resolution of issues. The best customer service, he said, is often "quiet and consistent," marked by responsiveness rather than grand gestures.

Promoting Transparency Internally and Externally

On transparency, he said customers must be given clear, unambiguous information, particularly in digital journeys, regarding terms, charges, consent, and authorisations. "Transparency extends beyond outward communication to fostering an internal culture where employees feel comfortable raising concerns and flagging errors," he said.

Ownership: From Assigned Task to Personal Responsibility

Highlighting ownership as the value that makes others tangible, the Deputy Governor described it as the shift from viewing a task as merely assigned work to embracing it as personal responsibility. Champions, he said, not only deliver results but set standards for others to emulate.

Collaborative Teamwork for Modern Banking Risks

Addressing teamwork, Swaminathan observed that modern banking risks cut across departmental boundaries and require coordinated responses. Effective collaboration, he said, reduces blind spots and improves response times. (ANI)

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