The board should set the tone on governance

Financial institutions have limited choice. The central bank is increasingly looking at governance while evaluating the effectiveness of the board and senior management

The twin meetings of the boards of banks with the Reserve Bank of India (RBI) to discuss governance have not come a day too soon (the first with state-run banks will be held today in New Delhi, with the one with private banks on May 29 in Mumbai). The RBI and the Securities and Exchange Board of India have issued several directions on governance, some based on recommendations of expert committees. While governance has become a buzzword across India Inc, its implementation has left much to be desired.

From my four decades of handling compliance, I can firmly say that governance