Streamlining of Internal Compliance monitoring function – leveraging use of technology

Summary:

The Reserve Bank of India (RBI) has issued a circular (RBI/2023-24/117) to Scheduled Commercial Banks, Small Finance Banks, Payments Banks, primary co-operative banks, upper- and middle-layer non-banking financial companies, and credit information companies, advising them to strengthen their internal compliance monitoring function by leveraging technology. The RBI has identified the need for a comprehensive, integrated, and enterprise-wide solution/tool to enhance the effectiveness of compliance monitoring. The suggested solution should enable effective communication, collaboration, and management of compliance requirements, and provide a unified dashboard view to senior management. The banks are advised to complete a comprehensive review of their existing internal compliance processes and implement necessary changes by June 30, 2024, with an additional mechanism to monitor progress.