Fraud Reporting and Monitoring Framework in India
IntroductionThe increasing prevalence of financial cybercrimes has necessitated the development of a robust national infrastructure to facilitate timely reporting and resolution. In response, the Government of India established the Citizen Financial Cyber Fraud Reporting and Management System, a centralized mechanism overseen by the Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs.…
Read article Understanding Fraud and Forgery in the Banking Sector: Definitions and Key Vulnerability Areas
IntroductionBanks play a pivotal role in safeguarding financial assets and maintaining public trust. To uphold this responsibility, it is essential for financial institutions to establish robust fraud prevention and vigilance mechanisms. These mechanisms encompass preventive measures, investigative processes, and timely reporting protocols. Leveraging advanced technology, stringent internal policies, and a strong ethical culture, banks aim…
Read article Strengthening Fraud Prevention and Vigilance Mechanisms in Banks
Fraud prevention and vigilance are critical components of a sound risk management framework in the banking sector. To safeguard the financial system and maintain public trust, banks must proactively identify potential risks and implement measures to detect and prevent fraudulent activities. 1. Preventive Vigilance Preventive vigilance focuses on identifying potential vulnerabilities and instituting measures to…
Read article Key Aspects of the Transition Path for Chief Compliance Officers in NBFCs
The transition path for Chief Compliance Officers (CCOs) in Non-Banking Financial Companies (NBFCs) is a critical component of aligning with the Reserve Bank of India’s (RBI) Scale-Based Regulatory (SBR) Framework. This framework classifies NBFCs into four distinct layers—Base, Middle, Upper, and Top—each subject to specific regulatory obligations. The evolving role of the CCO is particularly…
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Regulatory Framework for Compliance Function and Chief Compliance Officer in NBFC-UL and NBFC-ML
The Reserve Bank of India (RBI) has prescribed a comprehensive compliance framework for Non-Banking Financial Companies (NBFCs) classified under the Upper Layer (NBFC-UL) and Middle Layer (NBFC-ML). This framework emphasizes the establishment of a dedicated Compliance Function and the appointment of a Chief Compliance Officer (CCO) to ensure regulatory adherence, effective compliance risk management, and…
Framework for Scale-Based Regulation of NBFCs: Structure, Implications, and Clarifications
The Scale-Based Regulatory (SBR) framework, introduced by the Reserve Bank of India (RBI), marks a significant shift in the regulation and supervision of Non-Banking Financial Companies (NBFCs). This approach aligns regulatory intensity with the size, activity, and risk profile of NBFCs, thereby promoting a more calibrated and proportionate oversight mechanism. On October 19, 2023, the…
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