Entries by Anita Baid

Tech-driven compliance monitoring and validation of internal models

February 16, 2024 /0 Comments/in , , /by

– 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 […]

Consolidated NBFC Regulations for all Scales and Functions

October 20, 2023 /2 Comments/in , , , /by

– 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 […]

KYC/AML risk categorisation of customers

July 17, 2023 /0 Comments/in , , /by

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 […]

Embracing a Wider Scope for TReDS

June 13, 2023 /1 Comment/in , /by

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 […]

RBI to release guidelines to permit default guarantees

June 8, 2023 /0 Comments/in , , , , /by

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 […]

Simplifying the KYC process and business identifier

February 1, 2023 /0 Comments/in , , /by

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 […]

16 NBFCs identified as Upper Layer entities for bank-like compliances

October 1, 2022 /0 Comments/in , , , /by

– 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 […]

Digital lending: Footnote prescriptions heavier than the headlines

September 2, 2022 /3 Comments/in , /by

Time to re-think on co-lending transactions and FLDG arrangements – Anita Baid, Vice President | anita@vinodkothari.com The August 10, 2022 Press Release of the RBI on implementation of the recommendations of the Working group on Digital Lending was a major setback for the existing business model of several fintech entities and digital lenders. Through the […]