The central bank had in August MPC announced to issue a direction on managing risks and code of conduct in outsourcing of financial services.
The Reserve Bank of India, on October 26, has placed the draft master direction on managing risks and the code of conduct in outsourcing financial services for public comments.
“Comments or feedback, if any, may be sent by email with the subject line ‘Comments on draft Master Direction on Managing Risks and Code of Conduct in Outsourcing of Financial Services’ by November 28, 2023,” the central bank said in a press release.
In the October MPC meeting, RBI Governor Das said that banks and non-banking financial companies should strengthen their risk management strategies and develop stronger underwriting standards to tackle stress in these loans.
Earlier, in June, RBI Deputy Governor M Rajeshwar Rao, at a conference of directors of state-run and private banks, said that boards should set clear expectations for management and should require reports on risk management on a regular basis.
“Boards should set clear expectations for management in terms of risk management and corporate governance and should require management to report on risk management on a regular basis. This reporting should include information on the bank’s risk appetite, risk exposures, and risk mitigation strategies,” he said.
Courtesy : https://www.moneycontrol.com/news/business/rbi-invites-public-comments-on-risk-management-for-banks-11605471.html