The Reserve Bank of India (RBI) on January 31, 2024, issued a notification regarding the Streamlining of the Internal Compliance monitoring function – leveraging the use of technology
The following has been stated namely: -
• It states that it has evaluated the current system for internal monitoring of compliance with regulatory instructions and the extent to which technological solutions are being used to assist this role in a few selected Supervised Entities
• It states that in order to improve the efficacy of this function, comprehensive, integrated, enterprise-wide, and workflow-based solutions and technologies must be used.
• It specifies that in order to facilitate effective communication and collaboration between all parties involved procedures for identifying, evaluating, monitoring, and managing compliance requirements must be in place.
• It states that Non-compliance issues must be escalated and the recording of competent authority approval for deviations from or delays in compliance submission must be required. Senior Management must also have access to a unified dashboard that displays the Regulated Entity compliance position overall.
• The REs may decide on the tools/ mechanism it would prefer to deploy for monitoring of compliance and development of the unified dashboard.
•It further states that an appropriate monitoring mechanism may also be put in place to review the progress of its implementation.
• The REs are advised to carry out a comprehensive review of the existing internal compliance tracking and monitoring processes and institute necessary changes to existing systems or implement new systems by June 30, 2024.
[Notification No. RBI/2023-24/117 DoS.CO.CSITEG.SEC.No.9/31-01-015/2023-24 ]
