Vinod Kothari and Anita Baid l finserv@vinodkothari.com What is the notification on change in Risk Weights (RWs) issued by RBI? RBI has issued notification dated August 12, 2024 on Review of Risk Weights for Housing Finance Companies (HFCs). Accordingly, with immediate effect, the RWsfor computation of risk weighted assets (RWAs), for capital adequacy purposes, for […]
– Anita Baid, finserv@vinodkothari.com Streamlining internal compliance monitoring function The recent RBI directive on streamlining the internal compliance monitoring function by leveraging technology has raised concerns regarding actionable on the part of regulated entities covered thereunder. The notification on Streamlining of Internal Compliance monitoring function – leveraging use of technology dated January 31, 2024 is […]
– Anita Baid, Vice President | anita@vinodkothari.com Updated as on 09.11.2023 The Reserve Bank of India (RBI) has issued a notification outlining a new regulatory framework for Non-Banking Financial Companies (NBFCs) on October 19, 2023 (‘SBR Framework’). The RBI has played a crucial role in regulating the NBFC sector over the years. With the sector’s […]
Key Points as per the RBI’s Directions on Risk Management under the KYC and PML Regime -Anita Baid | Vice President | anita@vinodkothari.com In line with the Reserve Bank of India’s (RBI) directions on risk management under the Know Your Customer (KYC) norms and Anti-Money Laundering (AML) standards, Non-Banking Financial Companies (NBFCs) are required to […]
Transfer of Factoring Units to come under the purview of TLE in lieu of the regulator’s move to enhance TReDs Platform – Anita Baid, Vice President | finserv@vinodkothari.com The concept of Trade Receivables Discounting System (TReDS) was introduced by RBI to enable discounting of invoices of MSME sellers against large corporates, including government departments and […]
The evolution of a concept, from its inception to being prohibited, and ultimately establishing a regulatory framework to allow its practice – Anita Baid (finserv@vinodkothari.com) The concept of First Loss Default Guarantees (FLDGs) in the financial industry has experienced a remarkable journey, marked by its inception, subsequent prohibition, and eventually being on the verge of […]
RBI amends KYC norms to permit faceless KYC; beneficial owner of 10% or more to be subjected to KYC – Anita Baid, Vice President | anita@vinodkothari.com Recognising the increasing trend towards faceless lending, and the use of technology for customer due diligence, the RBI has made much-needed changes in the KYC process, permitting lenders to […]
Anita Baid, Vice President | finserv@vinodkothari.com Backdrop The regulations for conducting customer identification and due diligence by financial sector entities have been laid down by RBI and SEBI, in accordance with the provisions of Prevention of Money Laundering Act and Rules. Under the current regime, the KYC process extends from physical KYC to digital and […]
As per reports available on public domain[1], the RBI intends to intensify regulatory audits of non-banking finance companies, to find dormancy, non-compliance, non clarity of business models, or other risks that the regulator may wish to check. The intent seems to be weed out the truant ones out of the crowd of over 9000 NBFCs […]
– Anita Baid, Vice-President, VKCPL | finserv@vinodkothari.com In line with the guidance given in the Scale Based Regulatory Framework of the RBI[1], the new regulatory framework is effective from October 1, 2022. Just one day before D-day, the RBI on September 30, has kickstarted the new regulatory version for NBFCs by identifying 16 of the […]