You are here: Home » Economy & Policy » News
Business Standard

RBI asks NBFCs with over Rs 50,000 crore in assets to appoint risk officers

The government took control of IL&FS last year after its default triggered fears about contagion in India's financial sector.

Reuters  |  New Delhi 

rbi, reserve bank of india
Reserve Bank of India asks shadow banks to appoint risk officers.

The said on Thursday that non banking financial companies (NBFCs) with asset size of more than Rs 50,000 crore should appoint a chief risk officer in a move to tighten regulation after a series of defaults at top lender Infrastructure Leasing & Financial Services' (IL&FS).

The government took control of IL&FS last year after its default triggered fears about contagion in India's financial sector.

An independently functioning chief risk officer with clearly specified role and responsibilities has to be appointed by NBFCs, the said in a statement.

"With the increasing role of in direct credit intermediation, there is a need for to augment risk management practices," the central bank said in a statement.

The central bank said that the chief risk officer has to be appointed for a fixed tenure and cannot be removed without board approval.

First Published: Thu, May 16 2019. 19:52 IST
RECOMMENDED FOR YOU