BoM Generalist Officer (Scale II III) Practice Questions - Bank Of Maharashtra Generalist Officer (Scale II III) Exam

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Read the passage and answer: 'The Reserve Bank of India has increasingly focused on strengthening the internal governance framework of commercial banks. Recent circulars emphasize that the board of directors must exercise active oversight over risk management systems, rather than delegating these responsibilities entirely to executive management. This shift is intended to prevent systemic failures resulting from unchecked credit expansion and operational negligence.' According to the passage, what is the primary objective of the RBI's focus on internal governance?

To prevent systemic failures caused by credit expansion and operational lapses. To replace executive management with the board of directors in daily operations. To completely halt the expansion of credit in the commercial banking sector. To reduce the regulatory compliance burden on the board of directors.

Correct Answer:

To prevent systemic failures caused by credit expansion and operational lapses.

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