The Reserve Bank of India (RBI) on September 19, 2022, issued a notification regarding the Compliance Function and Role of Chief Compliance Officer (CCO)- Urban Co-operative Banks.
The Compliance Function plays a vital role as part of the overall structure for Corporate Governance. As a result, it has been decided to introduce certain principles, standards and procedures for Compliance functions in UCBs.
This notification is applicable to all UCBs under Tier 3 and Tier 4 categories except UCBs under All Inclusive Directions (AID). The UCBs under Tier 1 and Tier 2 categories will continue to be governed under the existing guidelines.
The UCBs under Tier 4 category shall put in place a Board-approved policy and a Compliance Function, including the appointment of a Chief Compliance Officer (CCO), based on the Framework given in the Annexure, latest by April 01, 2023. The UCBs under Tier 3 category shall implement the same latest by October 01, 2023.
This notification must be placed in the immediate next meeting of the Board of Directors for information and devising an implementation strategy, under the Board’s supervision, in a time-bound manner.
Disclaimer – Kindly find the Annexure attached to the notification provided in the Link/Document.
[Notification No. RBI/2022-2023/118]
