The National Bank for Agriculture and Rural Development (NABARD) on May 10, 2024, issued a Guidance Note on the Business Continuity Plan (BCP).
The following has been stated: -
•The guidelines on business continuity plans to mitigate the risks in the event of disruptions in SEs are revisited. They should have a keen awareness of the need to identify critical business functions and evaluate vulnerabilities and threats as well as to determine that they have a sound organisational framework and Corporate Governance for effective implementation of BCP. On these lines, the guidance note on BCP has been revised.
•The main goal of a business continuity plan is to minimise losses during disruptions. This includes minimising financial losses, operational losses, and any other losses that could occur due to a disruption in service or operations.
•The SEs covered under the ECAMELSC-based supervisory approach are advised to put in place an effective and robust business continuity plan as envisaged in the guidance note by September 30, 2024.
•Remaining banks are advised to put in place an effective business continuity plan framework by March 31, 2025.
•BCP is the process of evaluating potential weaknesses and planning how to deal with what could possibly go wrong in case any disaster strikes. It offers the management a chance to get a better understanding of their business thereby ultimately helping an organisation identify ways to strengthen any shortcomings, even in areas that had previously gone unnoticed.
The detailed notification is given in the document below.
[Notification No. Ref. No. NB. HO. DoS. Pol. / 657 / J-1 / 2024-25]
