NBFC Current Affairs - 2019
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The Reserve Bank of India (RBI) has launched Complaint Management System (CMS), on its website for facilitating RBI’s grievance redressal process.
It is a software application launched by RBI for lodging complaints against any regulated entity with public interface such as commercial banks, urban cooperative banks (UCBs), Non-Banking Financial Companies (NBFCs).
Objective: To facilitate RBI’s grievance redressal process and also to improve customer experience in timely redressal of grievances.
Need: For maintaining trust and sustaining the confidence of consumers in the banking system and other financial service providers (FSPs), prompt and effective grievance redressal mechanism together with customers empowerment through education is must.
Keeping convenience of customers in mind, RBI has designed CMS in a way to enable online filing of complaints.
Targeted Solution: Once the complaint is registered it would be directed to appropriate office of Ombudsman or Regional Office of RBI.
Transparent Procedure: The application has the feature of keeping complainants fully informed via auto-generated acknowledgements and enabling them to track status of their complaints as well as to file appeals online against the decisions of Ombudsmen, where applicable. Thus help improving transparency in system.
Tracking: The application is also provided with various dashboards which will help RBI to effectively track progress in redressal of complaints.
Feedback: Complainants can also voluntarily share feedback on their experience in obtaining redressal thus helping the service provider to further improvise its services.
Way Ahead: CMS will be accessible on desktop and on mobile devices. In future, RBI also plans to introduce a dedicated Interactive Voice Response (IVR) system for tracking status of complaints.
RBI can leverage the data from CMS for analytics purpose, which can then be used for regulatory and supervisory interventions, if required.
Tags: Complaint Management System • Grievance Redressal Mechanism • Interactive Voice Response • Lodging Complaints • NBFC • Non-Banking Financial Companies • RBI • RBI CMS • RBI Complaint Management System • UCB • Urban Cooperative Banks
The Reserve Bank of India’s (RBI’s) Central Board has decided to create a ‘Specialised Supervisory and Regulatory Cadre’ within the RBI.
About: The decision to create a Specialised Supervisory and Regulatory Cadre within the RBI was taken at the recent two-day meeting of Reserve Bank of India’s (RBI’s) Central Board which was held under the chairmanship of RBI Governor Shaktikanta Das in Chennai. This was the boards 576th Meeting.
Objective: The cadre creation came with a view of strengthening the supervision and regulation of commercial banks, urban cooperative banks and Non-Banking Financial Companies (NBFCs).
Importance: The decision for creating an additional oversight mechanism was taken in the wake of recent NBFC crisis such as large-scale defaults by IL&FS in 2018 (which caused on-going liquidity crunch in banking system), failures by credit rating agencies to flag risks, alleged lapses by auditors and divergence in asset quality by big banks. Thus the supervision cadre would supplement RBI to be better equipped in picking up early warning signs.
Key Discussions at RBI’s Central Board Meeting
- It reviewed the current economic situation, global and domestic challenges and various areas of operations of RBI.
- It reviewed the present structure of supervision in RBI in light of growing complexities, diversity and interconnections within the Indian financial sector.
- It also discussed issues related to currency management and Banker to Government functions of the RBI.
- It also discussed the Medium Term Strategy document, which covers RBI’s Mission and Vision Statements.
Tags: IL&FS • Medium Term Strategy Document • NBFC • Non-Banking Financial Companies • RBI Governor • RBI’s Central Board Meeting • RBI’s Mission and Vision Statements • Reserve Bank of India • Shaktikanta Das • Specialised Supervisory and Regulatory Cadre