ARTICLE · 23 JULY 2024

AKP Banking & Finance Digest- July 22, 2024

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Reserve Bank of India ("RBI") has issued directions titled "Reserve Bank of India (Fraud Risk Management in Non-Banking Financial Companies (NBFCs) Directions, 2024"...

IndiaFinance and Banking

1. Regulatory Updates

1.1. India

1.1.1. RBI introduces stringent fraud risk management directions for NBFCs

Reserve Bank of India ("RBI") has issued directions titled "Reserve Bank of India (Fraud Risk Management in Non-Banking Financial Companies (NBFCs) Directions, 2024", aimed at enhancing fraud prevention and management in Non-Banking Financial Companies ("NBFCs"). These directions mandate robust governance structures, early warning systems, and stringent reporting mechanisms to combat fraudulent activities. They require NBFCs to establish clear policies, conduct regular audits, promptly report fraud incidents to regulatory authorities and law enforcement agencies, and further outline penalties and accountability measures for entities involved in fraudulent activities. RBI

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