Financial Crime World

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Financial Institutions in India Must Comply with RBI’s New Regulations: RegTrack Offers Solution

The Reserve Bank of India (RBI) has made it mandatory for financial institutions to adopt technology-driven solutions for overseeing their internal compliance processes and operations. In line with this directive, RegTrack, a next-generation compliance management software, is tailored to meet the requirements of financial institutions in India.

RegTrack’s Compliance Management Software

RegTrack’s compliance management software provides real-time visibility into compliance statuses, streamlined automated workflows, and an integrated document management system. The platform empowers financial institutions to align with RBI’s mandate by providing effective communication and collaboration among stakeholders, identifying, assessing, monitoring, and managing compliance requirements, escalating issues of non-compliance, and asking for recorded approval from competent authorities.

RBI’s Scale Regulation Framework: A New Era for NBFCs

In 2021, the RBI notified a revised regulatory framework for Non-Banking Financial Companies (NBFCs) called “Scale Regulation (SBR): A Revised Regulatory Framework for NBFCs.” This framework reclassified NBFCs into four layers - Base Layer (BL), Middle Layer (ML), Upper Layer (UL), and Top Layer (TL). The previous classifications of NBFCs have been done away with.

RegTrack’s Financial Institution-Specific Features

RegTrack offers specialized features for regulated entities like banks and NBFCs, allowing internal audit teams to thoroughly review regulatory compliance. Some of the key features include:

  • Reopening of Compliances: A platform for REs to clarify requests on compliance documents and reopen compliance by documenting observations.
  • Deviation Workflow: Empowering users with the capability to request deviations in case of delayed or partially completed compliance, involving a structured workflow encompassing specific compliance status, remarks, reports, and tracking of additional deadlines.
  • Compliance Categorization: Linking each compliance requirement to one of six broader categories - Policy, Procedure, Disclosures, Customer Communication, Reporting, and Automation.
  • User-Friendly Compliance Descriptions: Allowing customers to update compliance descriptions in their own language.
  • Task Module: Facilitating the breakdown of primary compliance into multiple tasks, which can then be assigned to various departments.
  • Comparative Analysis: Capturing compliance IDs from previous notifications and linking them to relevant new notifications.

Benefits of RegTrack’s Compliance Management Software

RegTrack’s compliance management software is trusted by financial institutions in India for its ability to provide a unified dashboard view on the compliance position of regulated entities, color-coded smart dashboards with drill-down capabilities, and an email notification engine. With RegTrack, financial institutions can ensure transparency, accountability, and timeliness in compliance, aligning with RBI’s mandate and regulatory requirements.