COMMONWEALTH BANK OF AUSTRALIA

EXCLUSION OF “COMMONWEALTH BANK OF AUSTRALIA” FROM THE SECOND SCHEDULE OF THE RESERVE BANK OF INDIA ACT, 1934

WHAT WAS THE NOTIFICATION?

 The “Commonwealth Bank of Australia” has been excluded from the Second Schedule of the Reserve Bank of India Act, 1934 

 With this announcement, Commonwealth Bank of Australia is not a scheduled bank.

INCLUSION OF “AU SMALL FINANCE BANK LIMITED” IN THE SECOND SCHEDULE OF THE RESERVE BANK OF INDIA ACT, 1934 

WHAT WAS THE NOTIFICATION? 

 The “Au Small Finance Bank Limited” has been included in the Second Schedule to the Reserve Bank of India Act, 1934

  With this announcement, Au Small Finance Bank Limited is a scheduled bank.

DIRECTIONS ON MANAGING RISKS AND CODE OF CONDUCT IN OUTSOURCING OF FINANCIAL SERVICES BY NBFCS 

WHAT WAS THE NOTIFICATION? 

 In the notification, the RBI on has asked non-banking finance companies (NBFCs) to put in place necessary safeguards for activities outsourced by them. 

 Among others, the safeguards relate to evaluation of the service provider’s capability, customer confidentiality and security, responsibilities of agents, and monitoring and control of outsourced activities.

  NBFCs are advised to conduct a self-assessment of their existing outsourcing arrangements and bring these in line with the aforesaid Directions within two months from the date of this circular.

  NBFCs need to have a robust grievance redress mechanism, which in no way will be compromised on account of outsourcing. 

WHY THIS NOTIFICATION? 

This is to protect the interest of the customers, and to ensure that the NBFCs and the RBI have access to all relevant books, records and information available with service provider. 

WHAT ARE OUTSOURCED FINANCIAL SERVICES? 

Typically, outsourced financial services include applications processing (loan origination, credit card), document processing, marketing and research, supervision of loans, data processing and back office related activities.