How banks can move from reactive to proactive governance

Cyraacs14 Oct, 2025Technology

Regulatory fines against Indian banks have soared – ₹54.78 crore was imposed by RBI on regulated entities in FY 2024-25 alone for statutory compliance failures, ranging from KYC lapses to data reporting errors. These costly penalties are only the visible tip of the iceberg: reputation damage and customer trust erode even more quietly when banks operate in a reactive governance mode. But there’s a smarter path forward – proactive governance – where compliance is woven into the fabric of daily operations rather than applied as a patch after a failure.