Strong Governance Intent Can Bridge Regulatory Gaps, RBI Deputy Governor Asserts

Swaminathan J from RBI highlighted at the Gatekeepers of Governance Summit that strong governance can mitigate regulatory gaps and overlaps. Emphasizing the need for evolved governance structures as businesses grow, he provided guiding principles for regulators to ensure balanced, outcome-focused oversight.

Addressing the Gatekeepers of Governance Summit in Mumbai, RBI Deputy Governor Swaminathan J stressed the pivotal role of strong governance intent in mitigating regulatory gaps and overlaps.

Swaminathan emphasized that when governance is actively practiced, regulatory complexities dissolve. In contrast, weak governance leads to superfluous rules and the neglect of core risks. Evolving governance structures are vital as businesses digitize and expand, he asserted.

He further detailed five foundational areas of governance that require focus, urging boards to own both risk and outcomes while empowering control functions. Addressing regulatory overlap as potential safety nets, he advocated for proportional oversight and an outcome-driven regulatory approach aligned with market maturity.

(With inputs from agencies.)