RBI updates operational risk management guidance to include NBFCs and cooperative banks.
The Reserve Bank of India (RBI) has updated its guidance note on operational risk management, extending it to non-banking finance companies (NBFCs), cooperative banks, and central cooperative banks, replacing the 2005 guidance note that applied only to scheduled commercial banks. The revised guidelines aim to enhance the operational resilience of regulated entities, given their interconnections and interdependencies within the financial system. The RBI introduced a three-line defense model for managing operational risk and emphasized the need for better risk management in light of the growing reliance on technology and third-party providers in the financial sector.
April 30, 2024
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