NBFCs urged to bolster governance and assurance functions

Reserve Bank Of India Deputy Governor Swaminathan J has urged NBFCs to bolster governance and assurance functions and maintain constant vigil against potential risks and vulnerabilities. In the highly dynamic and challenging environment in which financial entities operate, they are exposed to a multitude of risks that can impact their financial and operational resilience. He inter-alia highlighted cybersecurity and operational risks; credit risks from rule-based credit models; and liquidity risks. He also conveyed the Reserve Banks Supervisory expectations from the regulated entities to ensure independent and meaningful assurance functions as well as fair and transparent conduct towards customers.