Mumbai, February 11 RBI Deputy Governor Swaminathan J. said that ethics in banking is not a soft topic but a core safeguard for the financial system.
Strong ethical standards protect customers, employees, and institutions, the career banker-turned-central banker said.
"Ethics in banking is sometimes treated as a soft topic. It is not. It is the discipline that protects customers, employees, and the institution itself," Swaminathan said during an address at the Axis Champions Awards, Mumbai, on January 30.
The speech was released by the RBI on Wednesday.
Swaminathan said that ethics prevents small compromises from becoming large problems. "It is not about being perfect. It is about how you handle grey areas, and how fairly and quickly you correct a mistake."
Further, he said that regulatory discipline should never be seen as a mere formality and it is a part of institutional reliability and long-term credibility.
On transparency, he added that customers must be given clear and unambiguous information, particularly in digital transactions, regarding terms, charges, consent, and authorizations.
"Transparency is not only about outward communication; it is also about inward honesty," he added.
Swaminathan added that institutions respond best when information moves across early and teams coordinate without ego. "Teamwork is therefore a control mechanism. It reduces blind spots and improves response time."