STRENGTHENING COMPLIANCE

IN RECENT YEARS, India’s financial services industry has seen a significant shift in regulatory compliance due to increased vigilance of the Reserve Bank of India (RBI). This aligns with a global trend where regulatory bodies prioritise financial stability, governance, and customer protection. Prompted by crises at major banks and financial institutions, this new approach underscores the need for stronger compliance frameworks. As a result, institutions face heightened scrutiny, stringent standards, and substantial penalties. In FY24, the RBI’s monetary penalties more than doubled year-on-year—from ₹40.39 crore in FY23 to ₹86.1 crore. BRIDGING THE GAPS The compliance framework for regulated entities (REs) in India has evolved, transitioning from manual processes to automated systems. Previously dependent on labour-intensive methods prone to errors, the industry faced vulnerabilities, especially in the burgeoning digital payments ecosystem. Broad…