High employee attrition of 25 per cent in private banks pose operational risk: RBI Report

Banks need to implement strategies like improved onboarding processes, providing extensive training and career development opportunities, mentorship programmes, competitive benefits, and a supportive workplace culture to build long-term employee engagement, it said.

In view of several irregularities observed in grant of loans against gold ornaments and jewellery, including top-up loans, the Reserve Bank advised supervised entities to comprehensively review their policies, processes and practices on gold loans to identify gaps and initiate appropriate remedial measures in a time-bound manner.

Supervised entities were advised to closely monitor their gold loan portfolios and ensure adequate controls over outsourced activities and third-party service providers, it said.

The report said climate change risks are envisaged to impact profitability of financial institutions, growth prospects, and inflation dynamics and, thus, impinge upon financial stability and price stability.

To foster assessment of these concerns by regulated entities, regulatory and supervisory frameworks need to be strengthened with enhanced risk management guidelines, disclosure requirements, periodic stress testing, and stipulating reasonable verification and assurance functions, it added.