RBI Issues New Compliance Rules! check How Will it Impact Customers

RBI: On Tuesday, banks and non-banking financial organisations (NBFCs) were able to comply with the regulations pertaining to information monitoring more easily. In accordance with this, all of the guidelines for ensuring that banks and non-banking financial organisations (NBFCs) provide their monitoring data in compliance have been combined into a single document.

RBI’s ‘Master’ Guidelines Unveiled

The Reserve Bank of India noted in a statement that the “Master” Guidelines – Reserve Bank of India (Inspection-Related Filing of Information) Guidelines – 2024 offer a thorough framework to comprehend the goal of providing information and harmonise the deadlines for their submission.

Every unit is being watched over, Commercial banks, cooperative banks, NBFCs, SIDBI, NABARD, NHB (National Housing Bank), Export-Import Bank of India, EXIM Bank, and National Bank for Financing Infrastructure and Development In compliance with the many guidelines, circulars, and notices that the Central Bank periodically issues, it is necessary to provide surveillance-related data or returns to the Reserve Bank.

Understanding Surveillance-Related Returns

Returns pertaining to surveillance are associated with interim or periodic data that is filed to RBI using the formats that are periodically specified. “In order to create a single reference for all returns related to monitoring and to harmonize the timelines for filing returns, all relevant instructions have been rationalized and combined into a single master guideline,” RBI said.

Revocation of Obsolete Notices and Circulars

There is also a list of revoked notices and circulars in the “Master” Guidelines. A single document contains both the general description of the returns and the collection of applicable returns that the entities under surveillance are required to file.

“In this, some instructions which have become obsolete have been removed and 20 existing instructions, including a master guideline for non-banking financial companies, have been brought together,” the central bank said. 

It makes it easier to verify adherence to all monitoring-related data submission guidelines with a single document. Additionally, a list of all the modifications has been placed in the “Master” Guidelines for convenience of reference.

Challenges Faced by Financial Units

The concerned units were having trouble following these guidelines because of changes in technology platforms, submission methods, and return deadlines. In this regard, the Reserve Bank had declared in August of last year that it will provide “Master” rules in order to offer greater clarification and lessen the cost of compliance.

The “Master” Guidelines provide that risk data collecting capabilities and risk reporting operations should be thoroughly documented and subject to strict standards of verification. These obligations fall under the purview of the Board of Directors and senior management of supervised companies. ought to be beneath. “The board of directors and senior management should ensure that adequate steps are taken for this purpose,” it said.