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Banking & Finance

Banking Regulations and Compliance Updates

RBI and SEBI circulars released in Q4 2024 introduce new directives on consumer protection, cybersecurity, and capital adequacy. Here’s what compliance teams must know.

December 15, 2024
Adv. Amit Patel

The Reserve Bank of India (RBI) has tightened oversight on digital lending, capital buffers, and data security. These measures reflect increased reliance on digital banking channels and the need for robust consumer safeguards.

Digital Lending Norms

Regulated entities must now maintain granular customer consent logs, disclose lending partners, and ensure all repayments flow directly into bank-controlled escrow accounts. NBFCs must update their agreements and disclosure templates accordingly.

Cybersecurity & Data Protection

RBI’s IT Framework now mandates half-yearly cyber resilience audits and incident reporting within six hours. Institutions must adopt zero-trust principles, update disaster recovery plans, and classify data access based on job roles.

Capital Adequacy

Risk-weight adjustments for unsecured retail portfolios influence capital planning. Banks are expected to maintain additional buffers when growth exceeds thresholds. Scenario testing and ICAAP documentation should reflect these changes.

J & S Attorney Alliance assists banks and NBFCs with policy updates, regulatory filings, and board presentations to remain compliant without operational hiccups.

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