Mumbai: Swaminathan J, Deputy Governor of the Reserve Bank of India (RBI), urged non-banking finance companies (NBFCs) to enhance their vigilance against financial risks and vulnerabilities, and to optimise their governance and assurance functions.
During a conference, held by the RBI on May 15, Swaminathan discussed various risks that NBFCs face, such as cybersecurity threats, operational risks, credit risks from rule-based models, and liquidity risks. He then laid out RBI’s supervisory expectations from these NFBCs to make sure that assurance functions (that evaluate and ensure compliance, risk management, and internal controls) are independent and relevant, and that their conduct towards customers is fair and transparent.
The event was attended by 280 participants from over 100 NBFCs, including key officials such as Chief Compliance Officers, Chief Risk Officers, and Heads of Internal Audit. Senior RBI officials, including Deputy Governors M. Rajeshwar Rao and Swaminathan J., and Executive Directors S. C. Murmu, Saurav Sinha, J. K. Dash, and Rohit Jain, also attended the conference.
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