RBI marks rules for appointment of chief compliance officers (CCO) of banks and and their role functions
Today, RBI in its notification said that an independent compliance function is required to be headed by a designated Chief Compliance Officer (CCO) of banks, selected through a suitable process with an appropriate ‘fit and proper’ evaluation/selection criteria to manage compliance risk effectively.The Central Bank also directed all the banks to lay down a board-approved…
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The K.V.Kamath committee constituted by RBI names 26 sectors for restructuring: COVID 19 related stress
Based on the report of the Expert Committee (K.V.Kamath Committee) on Resolution Framework for Covid-19 related Stress the Reserve Bank of India (RBI) on Monday announced the financial parameters for the resolution plans under the scheme. The Committee has recommended financial parameters that, inter alia, include aspects related to leverage, liquidity, and debt serviceability. The…
Read article Revised LFAR format with audit scope on areas of credit risk, market risk, operational risk, capital adequacy among others
RBI on Saturday announced the revised long format audit report (LFAR) norms with the scope of the mandate of an audit covering areas of ‘Credit risk’, ‘market risk’, assurance functions and operational risk areas’, ‘capital adequacy’ and ‘going concern and liquidity risk assessment’, among others. This may also involve commenting on various risks to which…
Read article SLR holdings limit in HTM category changed effective September 1:RBI
The Statutory Liquidity Ratio (SLR) is the liquid reserve to be maintained by the commercial banks at the rate fixed by RBI. At present, banks are permitted to exceed the limit of 25 per cent of the total investments under Held to Maturity (HTM) category, provided the excess comprises only of SLR securities and total…
Read article RBI Announces steps to maintain Orderly Market Conditions
Reserve bank of India on Monday (August 31) announced conducting of additional special open market operation involving the simultaneous purchase and sale of Government securities for an aggregate amount of Rs.20,000 crore in two tranches of Rs.10,000 crore each. The auctions would be conducted on September 10, 2020 and September 17, 2020. “The RBI remains…
MPC maintains repo rate on hold and makes several other important announcements
In the second bi-monthly monetary policy statement announced on Thursday (dated 06.08.2020), MPC decided to keep policy REPO rate under the liquidity adjustment facility (LAF) unchanged at 4.25 per cent. The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within…
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