Dear Readers,
The Reserve Bank of India (RBI) recently conducted a comprehensive training program for its officers at Hyderabad, focusing on a broad range of subjects that reflect the evolving landscape of the financial services sector.
Highlights from the RBI Officer Training Program:
The following key areas were covered:
- Digital Banking & Fintech Innovations
- Cybersecurity & Ethical Hacking
- Digital Payments & UPI Frameworks
- Banking Technology Risk Management
- Regulatory Compliance in Tech-Driven Operations
- Macroeconomic Policy & Banking System Supervision
- Public Finance, Financial Programming, and Operational Procedures
This initiative underlines RBI’s commitment to strengthening supervisory frameworks and adapting to digital transformation in the financial ecosystem.
What This Means for NBFCs:
In the coming months, NBFCs can expect an increase in communications and data requests from the Department of Supervision (DoS), RBI. These will be aimed at detailed analysis and tracking of compliance metrics.
It is essential for NBFCs and their Directors to stay updated and prepared. Key compliance areas include:
1. Capital & Business Compliance
- Net Owned Fund (NOF) – Para 6 of SBR
➤ Current requirement: ₹5 crore
➤ Deadline to reach ₹10 crore: March 2027 - Principal Business Criteria – Para 5A of SBR
2. Income & Asset Recognition
- Income Recognition, Investments & Asset Classification – Para 12, 13, 14 of SBR
- NPA Classification – Para 14.2 of SBR
3. Financial Disclosures
- Notes to Accounts – Para 27 of SBR
- Additional Reporting – Para 28, 29, 33.2.iii, and Para 45
4. Governance & Risk Management
- Risk Committee Formation, Submission of Form A – Para 39, 40, 41, 44
- Reserve Fund Compliance – Section 45-IC of RBI Act, 1934
5. Digital Lending Regulations
- Digital Lending Guidelines – Para 49, 50, 51 of SBR
This regulatory insight is based on expertise provided by CA Manoj Kumar, a seasoned professional in financial compliance and regulatory advisory.
