Mandatory certification for the staff manning key responsibilities in Banks

The Apex bank after examining the recommendations of the Shri G Gopalakrishna (former Executive Director of RBI)  committee on ‘Committee on Capacity Building in Banks All India financial Institutions’ in detail, decided  that recommendations pertaining to the banks may be implemented by the banks based on their organisational objectives and business strategies, after taking approval from their respective Boards.

At the outset, the banks must make acquiring of a certificate course mandatory for the staff manning following key areas.

1. Treasury operations – Dealers, mid-office operations.
2. Risk management – credit risk, market risk, operational risk, enterprise-wide risk, information security, liquidity risk.
3. Accounting – Preparation of financial results, audit function.
4. Credit management – credit appraisal, rating, monitoring, credit administration.
5. The employees involved in marketing third party retail products and wealth management products must necessarily undergo an appropriate certification process. Where other financial sector regulators have prescribed any certifications, these must be complied with.

RBI notification on the above, advised that the Banks are free to require certification for other areas of work also. The employees working in the aforementioned areas should be asked to acquire certifications within a specified period, say, 6 months. This period can be extended depending on the time required for the certification. Banks should have a specific policy in place for this purpose. If an employee has already acquired relevant graduate, diploma and certificate courses offered by reputed universities, the same can also be considered as an accreditation/ certification.

The issue of setting up of an accreditation agency for assuring and accrediting learning initiatives within the banking industry, etc., is being examined separately by RBI. In the interim, IBA has been requested to identify in consultation with RBI and provide to its members, by end December 2016, a list of institutions and courses that will meet the certification requirements for different work areas mentioned above. Banks are further asked to identify the courses/certifications that are suitable for their operations once the list of institutions for certification, prepared by IBA. Same should be put in place a Board approved policy, mandating obtainment of such certifications by its employees working in the respective areas.Further banks are asked to complete the process of obtaining necessary certifications of employees by the end of March 2017.

Indian Institute of Banking & Finance (IIB&F), declared that it would conduct three certificate courses which meet the certification requirement in areas identified by RBI and communicated by IBA vide their circular no CIR/HR& IR/ KSC/2017-18/2602 dated 26th April 2017.

Three courses are :
Certified Treasury Dealer
Risks in Financial Services
Certified Credit Officer
RBI hopes that, w.e.f. April 1, 2018; staff will have to first obtain the requisite certification before being posted in the above mentioned functional areas.