{"id":48,"date":"2024-03-30T05:35:40","date_gmt":"2024-03-30T05:35:40","guid":{"rendered":"https:\/\/www.thekgac.com\/blog\/?p=48"},"modified":"2024-04-02T04:42:34","modified_gmt":"2024-04-02T04:42:34","slug":"%f0%9d%97%96%f0%9d%97%bc%f0%9d%97%ba%f0%9d%97%bd%f0%9d%97%b9%f0%9d%97%b6%f0%9d%97%ae%f0%9d%97%bb%f0%9d%97%b0%f0%9d%97%b2-%f0%9d%97%bf%f0%9d%97%b6%f0%9d%98%80%f0%9d%97%b8-%f0%9d%97%ae%f0%9d%98%80","status":"publish","type":"post","link":"https:\/\/www.thekgac.com\/blog\/%f0%9d%97%96%f0%9d%97%bc%f0%9d%97%ba%f0%9d%97%bd%f0%9d%97%b9%f0%9d%97%b6%f0%9d%97%ae%f0%9d%97%bb%f0%9d%97%b0%f0%9d%97%b2-%f0%9d%97%bf%f0%9d%97%b6%f0%9d%98%80%f0%9d%97%b8-%f0%9d%97%ae%f0%9d%98%80\/","title":{"rendered":"Compliance risk assessment methodology for NBFCs"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

RBI issued the Compliance Circular on April 11, 2022. It’s for certain types of NBFCs -\ud835\udc0c\ud835\udc22\ud835\udc1d\ud835\udc1d\ud835\udc25\ud835\udc1e \ud835\udc0b\ud835\udc1a\ud835\udc32\ud835\udc1e\ud835\udc2b (\ud835\udc0d\ud835\udc01\ud835\udc05\ud835\udc02-\ud835\udc0c\ud835\udc0b) \ud835\udc1a\ud835\udc27\ud835\udc1d \ud835\udc14\ud835\udc29\ud835\udc29\ud835\udc1e\ud835\udc2b \ud835\udc0b\ud835\udc1a\ud835\udc32\ud835\udc1e\ud835\udc2b (\ud835\udc0d\ud835\udc01\ud835\udc05\ud835\udc02-\ud835\udc14\ud835\udc0b). These NBFCs need to have a framework for the Compliance Function and appoint a Chief Compliance Officer (CCO) by October 1, 2023 (for NBFC-ML) and April 1, 2023 (for NBFC-UL).<\/p>\n\n\n\n

This circular talks about something called ‘Compliance Risk.’ This idea has been important for banks for a long time. Now, it’s also important for some NBFCs. The circular defines Compliance risk like this:<\/p>\n\n\n\n

‘\ud835\ude01\ud835\uddf5\ud835\uddf2 \ud835\uddff\ud835\uddf6\ud835\ude00\ud835\uddf8 \ud835\uddfc\ud835\uddf3 \ud835\uddf9\ud835\uddf2\ud835\uddf4\ud835\uddee\ud835\uddf9 \ud835\uddfc\ud835\uddff \ud835\uddff\ud835\uddf2\ud835\uddf4\ud835\ude02\ud835\uddf9\ud835\uddee\ud835\ude01\ud835\uddfc\ud835\uddff\ud835\ude06 \ud835\ude00\ud835\uddee\ud835\uddfb\ud835\uddf0\ud835\ude01\ud835\uddf6\ud835\uddfc\ud835\uddfb\ud835\ude00, \ud835\uddfa\ud835\uddee\ud835\ude01\ud835\uddf2\ud835\uddff\ud835\uddf6\ud835\uddee\ud835\uddf9 \ud835\uddf3\ud835\uddf6\ud835\uddfb\ud835\uddee\ud835\uddfb\ud835\uddf0\ud835\uddf6\ud835\uddee\ud835\uddf9 \ud835\uddf9\ud835\uddfc\ud835\ude00\ud835\ude00 \ud835\uddfc\ud835\uddff \ud835\uddf9\ud835\uddfc\ud835\ude00\ud835\ude00 \ud835\uddfc\ud835\uddf3 \ud835\uddff\ud835\uddf2\ud835\uddfd\ud835\ude02\ud835\ude01\ud835\uddee\ud835\ude01\ud835\uddf6\ud835\uddfc\ud835\uddfb \ud835\uddee\ud835\uddfb \ud835\udde1\ud835\uddd5\ud835\uddd9\ud835\uddd6 \ud835\uddfa\ud835\uddee\ud835\ude06 \ud835\ude00\ud835\ude02\ud835\uddf3\ud835\uddf3\ud835\uddf2\ud835\uddff, \ud835\uddee\ud835\ude00 \ud835\uddee \ud835\uddff\ud835\uddf2\ud835\ude00\ud835\ude02\ud835\uddf9\ud835\ude01 \ud835\uddfc\ud835\uddf3 \ud835\uddf6\ud835\ude01\ud835\ude00 \ud835\uddf3\ud835\uddee\ud835\uddf6\ud835\uddf9\ud835\ude02\ud835\uddff\ud835\uddf2 \ud835\ude01\ud835\uddfc \ud835\uddf0\ud835\uddfc\ud835\uddfa\ud835\uddfd\ud835\uddf9\ud835\ude06 \ud835\ude04\ud835\uddf6\ud835\ude01\ud835\uddf5 \ud835\uddf9\ud835\uddee\ud835\ude04\ud835\ude00, \ud835\uddff\ud835\uddf2\ud835\uddf4\ud835\ude02\ud835\uddf9\ud835\uddee\ud835\ude01\ud835\uddf6\ud835\uddfc\ud835\uddfb\ud835\ude00, \ud835\uddff\ud835\ude02\ud835\uddf9\ud835\uddf2\ud835\ude00 \ud835\uddee\ud835\uddfb\ud835\uddf1 \ud835\uddf0\ud835\uddfc\ud835\uddf1\ud835\uddf2\ud835\ude00 \ud835\uddfc\ud835\uddf3 \ud835\uddf0\ud835\uddfc\ud835\uddfb\ud835\uddf1\ud835\ude02\ud835\uddf0\ud835\ude01, \ud835\uddf2\ud835\ude01\ud835\uddf0., \ud835\uddee\ud835\uddfd\ud835\uddfd\ud835\uddf9\ud835\uddf6\ud835\uddf0\ud835\uddee\ud835\uddef\ud835\uddf9\ud835\uddf2 \ud835\ude01\ud835\uddfc \ud835\uddf6\ud835\ude01\ud835\ude00 \ud835\uddee\ud835\uddf0\ud835\ude01\ud835\uddf6\ud835\ude03\ud835\uddf6\ud835\ude01\ud835\uddf6\ud835\uddf2\ud835\ude00.\u2019<\/h6>\n\n\n\n

So, \ud835\uddd6\ud835\uddfc\ud835\uddfa\ud835\uddfd\ud835\uddf9\ud835\uddf6\ud835\uddee\ud835\uddfb\ud835\uddf0\ud835\uddf2 \ud835\udde5\ud835\uddf6\ud835\ude00\ud835\uddf8 isn’t just about fines; it’s about all the bad stuff that can happen if a company doesn’t follow the rules. This can be really serious, like having to stop doing business or damaging the company’s reputation. To prepare for and prevent these risks, the RBI requires a good system for assessing these risks, and senior management should check them every year.<\/p>\n\n\n\n

According to the \ud835\udde5\ud835\uddd5\ud835\udddc \ud835\uddff\ud835\ude02\ud835\uddf9\ud835\uddf2\ud835\ude00, the Compliance Department must make sure the NBFC follows all the laws and rules. This includes how they treat customers, handle conflicts of interest, and provide the right services.<\/p>\n\n\n\n

\ud835\uddd4\ud835\uddfb \ud835\udde1\ud835\uddd5\ud835\uddd9\ud835\uddd6 needs to have the right setup to make sure everything goes well. The Chief Compliance Officer (CCO) and the Compliance Department are very important in this setup. They make sure we pay attention to big risks and have good controls in place to manage them.<\/p>\n\n\n\n

#compliance<\/a> <\/a>#NBFC<\/a> #compliancerisk<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

RBI issued the Compliance Circular on April 11, 2022. It’s for certain types of NBFCs -\ud835\udc0c\ud835\udc22\ud835\udc1d\ud835\udc1d\ud835\udc25\ud835\udc1e \ud835\udc0b\ud835\udc1a\ud835\udc32\ud835\udc1e\ud835\udc2b (\ud835\udc0d\ud835\udc01\ud835\udc05\ud835\udc02-\ud835\udc0c\ud835\udc0b) \ud835\udc1a\ud835\udc27\ud835\udc1d \ud835\udc14\ud835\udc29\ud835\udc29\ud835\udc1e\ud835\udc2b […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-48","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/posts\/48","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/comments?post=48"}],"version-history":[{"count":3,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/posts\/48\/revisions"}],"predecessor-version":[{"id":128,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/posts\/48\/revisions\/128"}],"wp:attachment":[{"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/media?parent=48"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/categories?post=48"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/tags?post=48"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}