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RBI Finds No Governance Issues at HDFC Bank After Chairman’s Resignation

The central bank will release draft rules to refocus bank boards on strategy.

Overview

  • RBI Governor Sanjay Malhotra said Wednesday that a supervisory inspection found no governance or conduct issues at HDFC Bank.
  • The review followed the March 18 resignation of part-time chairman Atanu Chakraborty, who cited differences over “values and ethics”.
  • Supervisors also examined the bank’s board meeting minutes and recorded no material concerns.
  • The RBI will issue draft directions to shift bank boards toward strategy and policy work rather than daily operations.
  • The central bank described the banking system as safe and resilient and said recent foreign-exchange curbs were temporary and may be rolled back when volatility eases.