New Delhi, Jan 19 (KNN) Efforts are being made to strengthen corporate governance in the public sector banks (PSBs) to effectively check incidence of financial frauds, said Shaktikanta Das, RBI Governor.

He was speaking at the 9th Vibrant Gujarat Global Summit 2019.

The PSBs have been hit by a series of frauds in the recent past, including the much-talked about Rs 14,000 crore frauds at Punjab National Bank.

He said, “Will take necessary steps to maintain financial stability and facilitate enabling conditions for sustainable and robust growth."

"The government, the Banks Board Bureau and the Reserve Bank are currently engaged in developing an objective framework for performance evaluation and this should redefine the contours of corporate governance in the public sector banks (PSBs) with a focus on transparency, accountability and skills," Das said.

Referring to the problems being faced by the non-banking financial sector (NBFs), the RBI chief said the debt default of a systemically important NBFC highlighted the vulnerability and need for strengthening regulatory vigil on the sector in general and on asset liability management (ALM) framework in particular.

"The Reserve Bank intends to strengthen the ALM framework for NBFCs and harmonize it across different categories of NBFCs with the objective of enabling the NBFCs to play a vital role in our economy," he said.

"We need to brace ourselves for any sudden bout of global financial market turbulence that domestic economy and financial markets may face in the period ahead. In such a milieu, domestic macroeconomic policy framework needs to be supported by sound financial supervision and regulation," the RBI governor said.

"We will carefully weigh the challenges and opportunities that lie ahead and undertake appropriate policy responses," the central bank chief said.

The RBI chief said the central bank is committed to play its role as the monetary authority for maintaining mandated price stability objective while keeping in mind the objective of growth.