INSUBCONTINENT EXCLUSIVE:
The central bank said that the chief risk officer has to be appointed for a fixed tenure.Reserve Bank of India said on Thursday that shadow
banks also known as non-banking finance companies (NBFC) with asset size of more than Rs 5,000 crore should appoint a chief risk officer
(CRO) in a move to tighten regulation after a series of defaults at top lender Infrastructure Leasing Financial Services (ILFS).The
government took control of ILFS last year after its default triggered fears about contagion in India's financial sector."With the
increasing role of NBFCs in direct credit intermediation, there is a need for NBFCs to augment risk management practices," the central bank
said in a statement.An independently functioning chief risk officer with clearly specified role and responsibilities has to be appointed by
the NBFCs, the Reserve Bank of India said.The CRO shall be a senior official in the hierarchy of an NBFC and shall possess adequate
professional qualification or experience in the area of risk management, RBI added.The central bank said that the chief risk officer has to
be appointed for a fixed tenure and cannot be removed without board's approval of the NBFC.Get the latest election news, live updates and
election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections
Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general
Election results will be out on May 23.
