RBI Holds a Conference for Heads of NBFCs’ Assurance Functions to Maintain Constant Vigil Against Potential Risks

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Press Release No. 2024-2025/307; Dated: 15.05.2024

The RBI held a conference in Mumbai on May 15, 2024 for the heads of Assurance Functions (i.e., Chief Compliance Officers, Chief Risk Officers and Heads of Internal Audit) of select Non-Banking Financial Companies (NBFCs). The conference was attended by about 280 participants representing more than 100 NBFCs. Deputy Governors Shri M. Rajeshwar Rao and Shri Swaminathan J. addressed the participants.

The RBI’s top official, Shri Swaminathan, urged NBFCs to bolster governance and assurance functions and maintain a constant vigil against potential risks and vulnerabilities. In the highly dynamic and challenging environment in which financial entities operate, they are exposed to many risks that can impact their financial and operational resilience.

Further, he highlighted cybersecurity and operational risks, credit risks from rule-based credit models, and liquidity risks. He conveyed the RBI’s Supervisory expectations from the regulated entities to ensure independent and meaningful assurance functions and fair and transparent conduct towards customers.

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