Page 61 - BFSI CHRONICLE 10 th Issue (2nd Annual Issue ) 23062 COPY.indd

BFSI Chronicle, 2 Annual Issue, 10 Edition July 2022
th
nd
Committee, Risk Management normal tenure.
Committee or any other Committee) and
lay down a calendar of reviews. Regulatory guidelines for NBFCs under Top
Layer –
NBFCs shall formulate a whistle blower
NBFCs falling in the Top Layer of the regulatory
mechanism for directors and employees structure shall, inter alia, be subject to higher
to report genuine concerns.
capital charge. Such higher requirements shall
The Board shall ensure good corporate be specifically communicated to the NBFC
governance practices in the subsidiaries at the time of its classification in the Top
of the NBFC. Layer. There will be enhanced and intensive
supervisory engagement with these NBFCs.
j) Core Banking Solution - NBFCs with Transition Plan - Once a NBFC is identified
10 and more branches are mandated to for inclusion as NBFC-UL, the NBFC shall
adopt Core Banking Solution. A glide be advised about its classification by the
path of 3 years with effect from October Department of Regulation, Reserve Bank and
01, 2022 is being provided. it will be placed under regulation applicable to
the Upper Layer.
Detailed circulars will be issued in due
course by the Reserve Bank on guidelines For this purpose, the following timelines shall
indicated at paras f, g, h, i and j above. be adhered to:
Additional regulatory changes under Within 3 months of being advised by the RBI
SBR applicable to NBFC-UL regarding its inclusion in the NBFC-UL, the

k) Qualification of Board Members - Board NBFC shall put in place a Board approved
policy for adoption of the enhanced regulatory
members shall be competent to manage
the affairs of the NBFC. The composition framework and chart out an implementation
plan for adhering to the new set of regulations.
of the Board should ensure mix of
educational qualification and experience The Board shall ensure that the stipulations
within the Board. Specific expertise of prescribed for the NBFC-UL are adhered to
Board members will be a prerequisite within a maximum time-period of 24 months
depending on the type of business from the date of advice regarding classification
pursued by the NBFC. as a NBFC-UL from the Reserve Bank. During
the period of transition, calibrated increment to
l) Listing & Disclosures - NBFC-UL shall
be mandatorily listed within 3 years of business may be allowed through supervisory
engagement. The period of 3 months provided
identification as NBFC-UL. Disclosure
requirements shall be put in place on for charting out the plan for implementation
the same lines as applicable to a listed shall be subsumed within the 24-months’
company even before the actual listing, time-period referred to above. The roadmap as
as per Board approved policy of the approved by the Board towards implementation
of the enhanced regulatory requirement shall
NBFC.
be submitted to the Reserve Bank and shall be
Supervisor in case any Independent Director subject to supervisory review.
is removed/resigns before completion of his

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