The Reserve Bank of India issued Master Directions on 15th July 2024, mandating all NBFCs to enhance their risk management frameworks and governance practices. Key requirements include forming audit and risk management committees, adhering to strict asset classification norms, timely provisioning for NPAs, and implementing robust grievance redressal systems. Additionally, NBFCs must strengthen internal controls, conduct regular audits, and ensure comprehensive cybersecurity policies, emphasizing Board accountability and transparency.
