RBI introduces compliance function for UCBs in Tier-3 and 4 categories

The compliance function would ensure strict observance of all statutory and regulatory requirements. UCBs with deposits of more than Rs 1,000 crore fall under Tier-3 & 4 categories

To further strengthen the corporate governance framework of urban co-operative banks (UCBs), the Reserve Bank of India (RBI) on Monday said it is introducing certain principles, standards and procedures for compliance function in such entities under Tier-3 & 4 categories.

“The compliance function is an integral part of effective governance, along with internal control and risk management processes. UCBs under Tier-3 and Tier 4 categories shall treat the guidelines as a set of minimum guidelines only and accordingly frame their own guidelines taking into account their corporate governance framework, the scale of operations, risk profile, organisational structure and code of