Mahesh Kumar Jain: Regulatory and supervisory expectations on compliance function in banks

Speech by Mr Mahesh Kumar Jain, Deputy Governor of the Reserve Bank of India, at Financial institution Benchmarking and Calibration (FIBAC) 2019 - the Annual Global Banking Conference, organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Indian Banks' Association (IBA), Mumbai, 23 September 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
25 September 2019

Shri Sunil Mehta, Chairman - IBA, Chairmen and Chief Executive Officers of banks, other dignitaries and participants, Good Evening to all. This conference brings in the best minds from the Indian banking fraternity, the technology, knowledge and other service providers together to deliberate the latest developments and future agenda for banks in India. It is indeed a great pleasure to be amongst you here today.

The banking landscape of India is changing rapidly. With the evolution of technology, the entire industry has undergone a massive transformation that has changed the way financial procedures are carried out, and the way financial institutions operate. The collaboration between finance and technology has led to a radical change in several aspects of banking. Financial technology is said to be a disruptive force that in the future is expected to reshape the financial sector, business models and banking structures. This paradigm change has posed significant challenges to the banks as well as the regulators. One of the important challenges is 'compliance'; a very important aspect for sustainable success story for any banking and financial system. I am going to share my thoughts on this aspect today.