The 175th State Level Bankers’ Committee meeting was held at Vidhana Soudha on May 26.
| Photo Credit: File photo

“While such practices may yield short-term gains, they ultimately expose the bank to significant long-term risks, including reputational damage, supervisory scrutiny, and financial penalties,” Shaktikanta Das said in a keynote address at the Conference of Directors of Private Sector Banks here.
| Photo Credit: Thulasi Kakkat

RBI Governor Shaktikanta Das on Monday (November 18, 2024) asked bank boards to strengthen internal governance framework to curb unethical practices, such as mis-selling of products or opening of accounts without proper KYC verification.

Mr. Das also said that the incentives for bank staff should be carefully structured so as not to encourage them to indulge in unethical practices.

“While such practices may yield short-term gains, they ultimately expose the bank to significant long-term risks, including reputational damage, supervisory scrutiny, and financial penalties,” he said in a keynote address at the Conference of Directors of Private Sector Banks here.

Mr. Das further said that the Indian banking sector is transitioning through a time which is replete with opportunities as well as risks and challenges.

“The banking sector remains strong and stable. All the financial indicators have improved since we met in May last year, reflecting the efforts of the various participants of the banking sector, including their management and boards,” he said.

To keep the resilience of the banking system intact, the governor emphasised that strong fundamentals ought to be leveraged to reinforce and fortify the defences.

“Good times, after all, are the best times to reinforce resilience and grow sustainably,” he added. Mr. Das also said that in the rapidly evolving and technology-driven environment, organisations face significant challenges and risks.

Factors like technological advancements, the rise of new-age fintech entities, third-party dependencies and climate change are reshaping the economic landscape, he added.

Amid these shifting tides, bank boards should serve as a lighthouse for lenders and provide steady guidance to help navigate these challenges and steer towards safe and prosperous shores, he said.

Imagine a scene from Neuromancer: hackers breaking in, causing chaos with every keystroke. Now, flash back to this Friday. That sci-fi scenario? It’s suddenly not so fictional. A botched software update has just thrown real life into disarray. Planes grounded, emergency lines jammed, and check-in counters swamped with long, snaking lines of frustrated travellers.

The Microsoft outage has disrupted India’s aviation sector. As major airlines like Vistara, IndiGo, SpiceJet, and Akasa Air scramble with systems down, passengers face the brunt-endless lines, delayed flights, and a ticking clock. Even as airports like Delhi and Bengaluru report disruptions in up to 90% of flights, the response has been reactive, not proactive.

Also Read | The ‘Fake’ CrowdStrike Worker Who Crippled Windows Users Worldwide

This isn’t a plot twist from Mr. Robot, where vigilantes manipulate the digital world for justice or chaos. This is our reality-the infrastructure teetering on the edge because of a glitch. As we stand in overcrowded terminals or seek urgent help to no avail, the dystopian futures of cyberpunk are already knocking on our door.

Who Pays When Software Fails Us?

Think about the price tag of such an outage. Airlines cancel thousands of flights, hospitals delay life-saving procedures, and emergency responders hit a wall. The immediate cost is staggering, sure. But what about the long game? Lost trust, furious customers, and shaken investor confidence can balloon these costs to even more astronomical levels. How many millions – or billions – are we talking about here?

Why aren’t Microsoft or CrowdStrike held to the same stringent standards as those in more traditional sectors? A single faulty brake pad can trigger nationwide recalls in the automotive world. So why does the tech industry get a free pass when their mistakes can shut down our hospitals, ground our planes, and leave us stranded at check-in counters? It’s ridiculous.

Also Read | Airports Clearing Backlog After Global IT Chaos, Centre Shares An Update

When the digital infrastructure crumbles, the fallout is accepted as part of the modern condition. And where’s the backup plan? Our entire digital life hangs by the thread of a few lines of code with no strong fail-safe in sight. Why isn’t there a robust Plan B when Plan A fails so spectacularly? Shouldn’t there be mandatory, iron-clad redundancies for technologies that our lives depend on?

Another tech glitch, and who’s caught in the crossfire? The users, because we’re over-reliant on platforms like Microsoft. They blame CrowdStrike, but that’s not the point. Apple and Linux users dodged the bullet-why aren’t we spreading our risks? It’s high time we break up with single-system dependency.

We need more than apologies when tech systems fail disastrously. It’s time for stringent regulations to hold tech giants like Microsoft and their partners accountable, just as any other sector crucial to public safety and welfare would be.

Our reliance on these platforms is too critical to allow the ‘single-system dependency’ to continue unchecked. Let’s push for diversity in our tech solutions to safeguard our digital – and physical – lives. 

(Pankaj Mishra has been a journalist for over two decades and is the co-founder of FactorDaily.)

Disclaimer: These are the personal opinions of the author

Fourth of July will mark the 278th anniversary of the founding of the United States (US). Since the adoption of the Declaration of Independence by the Continental Congress on July 4, 1776, this day has been an important federal holiday in the US. In 1776, on this day, American colonies gained independence from British rule. Since then, every year, parades, fireworks, carnivals, fairs, political speeches and numerous ceremonies mark this day. 

Notably, Independence Day this year arrives Thursday and several offices and businesses will be closed to commemorate the holiday.

What Will Be Closed?

• All federal offices will be closed, including from the legislature to the courthouse.
• State offices will also be closed, including courts and the legislature.
• All major banks, including Capital One, Bank of America, PNC, Truist, CitiBank, and JPMorgan Chase, will be closed, as per USA Today.
• Stock markets will be closed. The Nasdaq and the New York Stock Exchange will also get the day off.
• Post offices will be closed on July 4 and there will be no mail delivery, caller service or Post Office Box service available for the holiday. 
• There will be no UPS pickup or delivery service and some store locations will be closed
• Public libraries, U.S. warehouses and the Department of Motor Vehicles will also be closed.

What Will Be Open?

• Online banking services and ATMs will be available. Capital One Cafes will stay operational for basic banking needs and services.
• FedEx will offer modified service on FedEx Office while FedEx Custom Critical will remain open. UPS Express Critical service will also be available.
• Most grocery stores under Kroger which includes Fred Meyer, Dillons, Food 4 Less, Ralphs and QFC will be open during their regular hours on July 4. Walmart and Target will also maintain regular operating hours, as per CNN.
• Most Whole Foods stores will be open during normal hours, while Trader Joe’s locations will close at 5 pm.
• Major pharmacy chains like CVS and Walgreens will likely be open, though some locations might have adjusted hours.
• Museums and zoos will mostly be open.