Bureau’s Post

India's central financial authority is doubling down on how Regulated Entities (RE) look at #Fraud Risk Management. A key component of the revised Master Directives is mandating strengthening frameworks for early warning signals (EWS) and red-flagging of accounts (RFA) to detect potential fraudulent activities early. And that's exactly what Bureau promises. Our dynamic AI & ML models can help banks and FIs identify bad actors even before the actual fraud is committed. 𝗥𝗲𝗮𝗰𝗵 𝗼𝘂𝘁 𝘁𝗼 𝘂𝘀 𝘁𝗼 𝗲𝘅𝗽𝗹𝗼𝗿𝗲 𝗼𝘂𝗿 𝗹𝗼𝘄-𝗰𝗼𝗱𝗲, 𝗰𝘂𝘀𝘁𝗼𝗺𝗶𝘇𝗮𝗯𝗹𝗲 𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝘀. Preekshit Gupta, Nikhil Jois, Ganesh Prasad, Carthic Kameshwaran

The RBI’s annual report released recently highlighted a worrying trend. The number of frauds in Indian banks rose by a staggering 166 percent YoY last fiscal- the figure stood at 36,075 for FY24, against the 13,564 reported in FY23. In the wake of such stats, the central bank has come out with its first stipulated set of rules on fraud and risk management for banks. While this is a positive and much needed step, the intent behind it can be met only if possible gaps in interpretation, implementation and enforcement of the guidelines by financial institutions are first identified and addressed. Clarity is also required in terms of accountability at the institution and entity level.  And the regulator would also need to find the right balance between enforcing the regulation and ensuring fairness and justice to customers and all associated players. To discuss some of these aspects, I had the opportunity to catch up with Abizer Diwanji, Anirban Chowdhury and  Sangita Mehta from The Economic Times in this podcast. Thank you ET for the opportunity and for deliberating on such an important matter. https://lnkd.in/gm5G2dyS Hashtags: #RethinkRisk #Compliance #RiskManagement #AML #KYC #FraudPrevention #RBI #Guidelines #FinancialFraud The Economic Times PwC India

The Reserve Bank of India (“RBI”) vide its notification dated July 15, 2024, has issued master directions to bolster governance and strengthen the fraud detection, risk management and prevention framework in NBFCs, Commercial Banks, AIFIs and Cooperative Banks. 𝐑𝐞𝐚𝐝 𝐡𝐞𝐫𝐞: https://lnkd.in/g4PD3qvs 𝐀𝐮𝐭𝐡𝐨𝐫: Amit Shekhar Dutta #rbi #fraud #risk #governance #lawyer #legaladvice #ahlawatassociates

Reserve Bank of India (RBI) Issues New Regulatory Principles for Credit Models The RBI emphasizes prudence and robustness in the adoption of credit models. Organizations must comply with the key principles, as stated by the RBI and the Central Bank: - Set up risk management committees or model risk management framework for approving credit models. - Annual review and validation of models before deployment by a dedicated committee. An RBI official highlighted that these models are based on assumptions that might differ significantly from actual outcomes, posing risks to organizations. The new circular will be implemented three months after coming into force, as mentioned by the Central Bank. At SIGN3, we fully support this initiative. Our advanced fraud risk score monitors each parameter, helping financial institutions ensure compliance and security. Stay ahead with security and compliance! 💪 #RBI #Fintech #CreditRisk #FraudPrevention #Sign3 #Financialinclusion #creditmanagement #Creditscore #business #AePS

The Reserve Bank of India (RBI) has recently mandated that all banks, Non-Banking Financial Companies (NBFCs), and Housing Finance Companies (HFCs) conduct a comprehensive assessment of their existing fraud risk management systems by January 2025. This directive aims to enhance the robustness and effectiveness of fraud prevention mechanisms within these financial institutions, ensuring better protection for customers and the financial system as a whole. Our bolt on solution Clari5.FIRST assists you in swiftly complying with these new RBI guidelines. Get ahead and connect with us: connect@customerxps.com #enterprisefraud #fraud #enterprisefraudmanagement #NBFC #GetClarified #Clari5First

RBI action on Kotak Bank 🛑 Why action was taken 📌 The Reserve Bank informed that the bank's IT capabilities will be examined in the year 2022 and 2023, in which some concerns came to the fore. Concerns were raised about IT inventory management, user accessories management, vendor risk management, data leak, data leak prevention management, disaster disruption etc. At the same time, the bank did not meet the standards set for IT risk and information sensitivity governance for 2 consecutive years, after which this action has been taken.

The Reserve Bank of India (RBI) has issued new guidelines to improve fraud risk management in cooperative banks. These guidelines are designed to make sure that cooperative banks are safe and reliable. Here are some of the key points of the new guidelines: Banks need to establish a committee to oversee fraud risk management. Banks need to implement early warning systems to identify potential problems. Banks need to have reporting requirements in place. Legal audits are required to ensure that banks are following the guidelines. I think these are important steps to take to protect consumers and ensure the stability of the financial system. RBI #FraudRiskManagement #CooperativeBanks

Good to see regulators taking stringent action against non-compliance. For two consecutive years, the bank was assessed to be deficient in its IT risk and information security governance, the RBI said. During subsequent assessments, it was non-compliant with corrective action plans issued by the RBI in 2022 and 2023. #compliance #riskmanagement #kotak #auditing

For two consecutive years, the bank was assessed to be deficient in its IT risk and information security governance, the RBI said. During subsequent assessments, it was non-compliant with corrective action plans issued by the RBI in 2022 and 2023. The compliance statements submitted by the bank were inadequate, incorrect or not sustained. Consequently, the RBI barred Kotak Mahindra Bank from signing up new customers through its online and mobile banking channels, and issuing fresh credit cards, among the toughest curbs imposed on a scheduled bank. https://lnkd.in/gM_EmZUT

Staying compliant with RBI regulations is essential for banks to protect sensitive information and manage risks efficiently. Adhering to these regulations ensures secure operations and helps avoid penalties. Learn how to maintain compliance and safeguard your institution: https://lnkd.in/gRp-kMkz #RBI #Seclore #DataRegulation