MUMBAI: The Reserve Bank of India (RBI) on Thursday said non-banking financial companies (NBFCs) with assets of more than ₹5,000 crore must appoint a chief risk officer (CRO). The central bank said that with the increasing role of NBFCs in direct credit intermediation, there is a need for NBFCs to augment risk management practices. The CRO’s role, RBI said, in deciding credit proposals shall be limited to being an adviser. RBI has mandated that the CRO shall report directly to the managing director and chief executive officer or the risk management committee (RMC) of the board. “The CRO shall not have any reporting relationship with the business verticals of the NBFC and shall not be given any business targets.

Source: Mint May 16, 2019 13:52 UTC