The Reserve Bank of India (RBI) has found three weaknesses in entities regulated by it during supervisory exercises in recent years. These are compliance, risk management and internal audit, Deputy Governor MK Jain said in a recent speech.
“Failure/delay in detection and reporting of non-compliances, persisting sub-par compliance, deficiencies in compliance testing with respect to inadequate coverage and limited transaction testing, persisting irregularities due to non-addressing of root causes and not ensuring sustainability of compliance were observed,” Jain said in a speech at CAFRAL on March 10 which was uploaded on the RBI website on Tuesday.
He also observed that the compliance setup was not resourced adequately with required number and quality of staff in many cases.
Jain said RBI’s supervision observed a disconnect between the risk appetite framework as approved by the Board and actual business strategy and decision…
