The Reserve Bank of India (RBI) announced the introduction of risk-based internal audit norms for large urban cooperative banks (UCBs) and non-banking financial companies (NBFCs), as part of measures aimed at improving governance and assurance functions at supervised entities.
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Key-Points
The RBI also moved to harmonise the guidelines on appointment of statutory auditors for commercial banks, UCBs and NBFCs in order to improve the quality of financial reporting.
The growing significance of NBFCs and their interlinkages with different parts of the financial system had made it imperative to enhance the sector’s resilience. Thus it had been decided to put in place transparent criteria for the declaration of dividends by different categories of NBFCs.
With a view to deepening financial markets, regional rural banks would be allowed to access the liquidity adjustment facility (LAF) and marginal standing facility (MSF) of the RBI, as also the call/notice money market.
To significantly improve the ecosystem of digital payment channels with robust security and convenience for users, the RBI has proposed to issue Digital Payment Security Controls directions for the regulated entities.
