The Reserve Bank of India (RBI) has urged Non-Banking Financial Companies (NBFCs) to enhance their governance and assurance functions while remaining vigilant against various risks. RBI Deputy Governor Swaminathan J emphasized the importance of maintaining constant vigilance against potential risks and vulnerabilities during an interaction held in Mumbai. The conference targeted Heads of Assurance Functions, including Chief Compliance Officers, Chief Risk Officers, and Heads of Internal Audit, from select NBFCs, with over 280 participants representing more than 100 NBFCs in attendance.
Swaminathan J highlighted the significant exposure of NBFCs to various risks such as cybersecurity and operational risks. He also discussed the RBI’s expectations regarding assurance functions, emphasizing the need for independent and meaningful assurance functions, as well as fair and transparent conduct towards customers.
Deputy Governor M Rajeshwar Rao echoed Swaminathan’s sentiments, emphasizing the role of assurance functions in addressing issues such as third-party dependencies, operational risks, customer conduct, and operational transparency. Rao also discussed the transformative journey and progress witnessed in the Indian financial landscape, attributing a significant contribution to the NBFC sector.
In addition to the Deputy Governors, the conference saw the participation of Executive Directors S C Murmu, Saurav Sinha, J K Dash, and Rohit Jain, along with other senior officials representing the Regulation and Supervision departments of the RBI. Technical sessions on the three Assurance Functions were conducted by the Chief General Managers of the RBI, with presentations on best practices and challenges faced by the Heads of Assurance Functions of select NBFCs.
