Key Points
The Reserve Bank of India on Tuesday updated its "guidance note" on operational risk management for the financial sector, and also extended it to the NBFCs, including housing finance companies..
The Reserve Bank of India (RBI) said an operational disruption can threaten the viability of a regulated entity (RE), impact its customers and other market participants, and ultimately have an impact on financial stability...
The latest 'Guidance Note on Operational Risk Management and Operational Resilience' aligns with the RBI's regulatory guidance with the Basel Committee on Banking Supervision (BCBS) Principles, the central bank said...
The guidance note intends to promote and further improve the effectiveness of operational risk management of the REs, and enhance their operational resilience given the interconnections and interdependencies, within the financial system, that result from the complex and dynamic environment in which the REs operate...
One of the key changes carried out in the updated guidance note is that its applicability has been extended to all non-banking financial companies (NBFCs) -- including housing finance companies -- co-operative banks, and financial institutions, in addition to commercial banks...
