New Delhi: Today Reserve Bank of India (RBI) has issued three revised master directions on Fraud Risk Management for the regular entities.
i) Commercial Banks (including Regional Rural Banks) and All India Financial Institutions
(ii) Cooperative Banks (Urban Cooperative Banks / State Cooperative Banks / Central Cooperative Banks)
(iii) Non-Banking Finance Companies (including Housing Finance Companies)
The revised Master Directions, derived from a thorough analysis of previous directives and emerging concerns, adopt a principle-centric approach.
The main aim is that Board’s governance and oversight responsibilities concerning fraud risk management within Regulated entities (REs) and ensuring robust frameworks for mitigating financial risks and ensuring robust frameworks for mitigating financial risks and ensuring regulatory compliance.
The issuance of these Master Directions replaces 36 existing circulars. aimed at simplifying regulations and alleviating compliance burdens for regulated entities (REs). This strategic move seeks to streamline instructions and enhance operational efficiency across sectors.