India's banking sector needs more reforms: RBI governor

India's banking sector needs reforms in terms of governance culture and risk management practices, Reserve Bank of India (RBI) governor Shaktikanta Das warned on Thursday.

Even though the financial sector continues to be sound and stable, more needs to be done to bring about more reforms, Das said at an event at Business Standard newspaper.

Das also raised concerns about the rising fraud cases in the banks and expressed concerns around managing such incidents.

Frauds of 100,000 Indian rupees ($1,345) and above at banks increased by 159 per cent in terms of value in 2019/20, the RBI said in its annual report released earlier this week.

Total fraud stood at 1.86 trillion rupees in fiscal 2020 versus 715.43 billion rupees in fiscal 2019, data showed.

The RBI has also asked banks to build strong buffers at a time when bad loans are expected to rise.