Now Chief Compliance Officer, RBI will be appointed in the country’s banks, what will be the work


RBI has issued a guideline on Friday to appoint Chief Compliance Officer (CCO) in banks. The appointment of CCO will be based on the appropriate evaluation criteria. CCO will be appointed for a minimum period of 3 years and this post will be of the rank of General Manager.

Mumbai. The Reserve Bank of India on Friday released guidelines for the appointment of CCO-Chief Compliance Officer in banks to bring uniformity in compliance and risk management culture in the banking industry. According to an RBI circular in this regard, CCO will have to be appointed on General Manager rank for at least 3 years. Even if this post does not belong to the rank of General Manager, it should not be of the rank below 2 levels of the CEO’s rank.

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Compliance process will be possible in all banks
RBI said, ‘The independent compliance process will have to be completed under the CCO itself, who will be selected under the appropriate procedure. These will be selected on the basis of fit and proper evaluation criteria to ensure compliance risk in the bank correctly. It was said in the RBI guidelines that it has been found that it is followed in banks according to their own. But the new one will ensure uniformity in it.

how CCO will be appointed in banks

According to the guidelines, even before the completion of the term of the CCO, it can be transferred or removed. But it will be under the internal evaluation process to seek bank board approval and transparently in exceptional circumstances. It was said that CCO would be the senior executive of the bank, whose rank would be that of general manager. It should not be more than two ranks below the rank of CEO. CCO can also be appointed through the market.

Try to avoid conflict of interest
It was also said in the guidelines that the CCO would not have to give any such responsibility which would lead to a conflict of interest. This should not be done specifically for any business related role. Banks can be given the role of which there is no risk of conflict of interest. Such as the post of anti-money laundering officer. On such posts, help can be given for bank size, complexity, risk management strategy.

CCO will not be made a member of the committee
It also said that the CCO cannot become a member of any such committee, so that a situation of confrontation can arise between the member of the committee and his post. This includes purchases or any connection related commissions. Even if a CCO becomes a member of such a committee, then their role will be only as advisor.


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