9 FINANCEOUTLOOKINDIANOVEMBER, 2024REPORTTHE DEPUTY GOVERNOR OF RBI REQUESTS THAT NBFC EXECUTIVES STRENGTHEN GOVERNANCEBy Finance Outlook India TeamJ Swaminathan, the deputy governor of the RBI, requested that NBFCs strengthen their governance and assurance roles and keep a close eye out for any threats to the system.He was giving a speech at an RBI-organized conference in Mumbai for the heads of internal audit, chief risk officers, and compliance officials of certainNBFCs. Following the RBI's action against two NBFCs for irregularities in gold loans and loans secured by securities, the conference was convened. Additionally, the regulator has penalized NBFCs for their unjust actions regarding interest rate billing.According to Swaminathan, financial organizations operate in a dynamic and demanding environment where they are subject to a wide range of risks that might compromise their operational and financial resilience.He emphasized the dangers associated with cybersecurity, operations, rule-based credit models, and liquidity. According to banking sources, even though there are clear norms in place, NBFC oversight has shown that there are conduct-related problems, which has underlined the need for stricter compliance.Additionally, the deputy governor communicated to the businesses the supervisory requirements of RBI regarding independent and significant assurance duties in addition to equitable and transparent customer conduct.
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