Banking Finance

RBI promulgated updated guidance note for banks, NBFCs

RBI promulgated updated guidance note for banks, NBFCs

The Reserve Bank of India (RBI) has updated its "Guidance Note" on operational risk management for the financial sector, and extended it to non-banking financial companies (NBFCs), including housing finance companies. Only commercial banks were included in the 2005 'Guidance Note on Operational Risk Management'.RBI said all regulated entities (REs) in India should implement robust information and communications technology (ICT) risk management program in line with their operational risk management framework."RES should manage their reliance on relationships for the delivery of critical functions, but not limited to, third parties (including intragroup entities)," the Reserve Bank said in its guidance note.…
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