Regulatory Alerts2026-07-31
Added · Updated
Reserve Bank of India (Commercial Banks - Compliance Function) Directions, 2026
These Directions apply to Commercial Banks, excluding Small Finance Banks, Payments Banks, and Local Area Banks, requiring the establishment of an independent Compliance function headed by a Chief Compliance Officer. The Board and Senior Management must implement a written Compliance Policy, conduct annual compliance risk assessments, and ensure quarterly reviews of the Compliance function by the Board or Audit Committee. The regulations mandate specific structural requirements, including the separation of Compliance from Internal Audit, adequate staffing, and direct reporting lines for the Compliance function to the Board or Audit Committee. Banks must also disclose non-compliance with regulatory guidelines in their annual reports and ensure adherence to Monitorable Action Plans within prescribed timeframes.