In response to reports, the RBI plans to intensify scrutiny of over 9000 non-banking finance companies (NBFCs) to address issues like ๐ฑ๐ผ๐ฟ๐บ๐ฎ๐ป๐ฐ๐ ๐ฎ๐ป๐ฑ ๐ป๐ผ๐ป-๐ฐ๐ผ๐บ๐ฝ๐น๐ถ๐ฎ๐ป๐ฐ๐ฒ With a focus on eliminating problematic entities, the RBI has been reducing the number by approving fewer new registrations and canceling existing ones. It’s crucial to note that the high NBFC count doesn’t necessarily reflect active operations, as the classification includes entities with no genuine public interest. The regulator could streamline the count by recognizing that without public funds, customer interaction, and relying solely on self-funded investments, there might be no need for regulatory intervention.
๐ฅ๐๐ ๐ถ๐ ๐๐ต๐ฒ ๐ฎ๐ฝ๐ฒ๐ ๐ฏ๐ผ๐ฑ๐ ๐ฎ๐๐๐ต๐ผ๐ฟ๐ถ๐๐ฒ๐ฑ ๐๐ผ ๐ถ๐ป๐๐ฝ๐ฒ๐ฐ๐ ๐ฎ๐ป๐ ๐ป๐ผ๐ป-๐ฏ๐ฎ๐ป๐ธ๐ถ๐ป๐ด ๐ถ๐ป๐๐๐ถ๐๐๐๐ถ๐ผ๐ป, ๐ถ๐ป๐ฐ๐น๐๐ฑ๐ถ๐ป๐ด ๐ณ๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น ๐ถ๐ป๐๐๐ถ๐๐๐๐ถ๐ผ๐ป๐.
In overseeing the financial sector, the RBI adopts a comprehensive approach, evaluating NBFC operations, procedures, and compliance with regulations. NBFCs should be prepared for regulatory inspections at any time. The regulator prioritizes stability and systemic risk, focusing on risk management, including asset side risks and liability side risks.
๐ฅ๐๐ ๐ต๐ฎ๐ ๐ถ๐ป๐ถ๐๐ถ๐ฎ๐๐ฒ๐ฑ ๐ฎ ๐๐ฒ๐ฟ๐ถ๐ฒ๐ ๐ผ๐ณ ๐บ๐ฒ๐ฎ๐๐๐ฟ๐ฒ๐ ๐๐ผ ๐๐๐ฟ๐ฒ๐ป๐ด๐๐ต๐ฒ๐ป ๐ถ๐๐ ๐๐๐ฝ๐ฒ๐ฟ๐๐ถ๐๐ผ๐ฟ๐ ๐ณ๐ฟ๐ฎ๐บ๐ฒ๐๐ผ๐ฟ๐ธ:
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Early identification of risks and vulnerabilities.
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The root cause of vulnerabilities: governance, risk management, compliance, and internal audit.
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Early and effective corrective actions.
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Harmonized and consolidated supervision.
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Strengthening cybersecurity resilience.
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Regular deep dives into areas of concern through thematic studies.