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RBI issues guidelines for appointment of CCO in banks

14th September, 2020 Economy

Context: Reserve Bank of India has issued guidelines for appointment of Chief Compliance Officer (CCO) in banks to ensure uniform approach with regard to compliance and risk management culture across the banking industry.

Chief Compliance Officer

  • The CCO must be appointed for a minimum fixed period of three years.
  • The person should be a senior executive of the bank, preferably in the rank of a general manager or an equivalent position or he could also be recruited from outside.
  • Further, there shall not be any responsibility which brings elements of conflict of interest, especially the role relating to business.
  • He must not be a member of any committee which brings his/her role in conflict with responsibility as member of the committee, including any committee dealing with purchases/sanctions.
  • No vigilance case or adverse observation from the RBI should be pending against the candidate identified for appointment as the CCO.
  • Selection of the candidate for the post of the CCO should be done on the basis of a well-defined selection process and recommendations made by the senior executive-level selection committee constituted by the board for the purpose.


Government has constituted a three member expert committee to assist in the assessment of relief to bank borrowers.

Context: The committee chaired by former CAG Rajiv Mehrishi will measure the impact on the national economy and financial stability of waiving of interest and COVID-19 related moratorium.

About Rajiv Mehrishi committee:

  • It will also give suggestions to mitigate financial constraints of various sections of society in this respect and measures to be adopted in this regard.
  • Need: The move came as various concerns have been raised during the ongoing hearing in the Supreme Court in the matter regarding relief sought in terms of waiver of interest and waiver of interest on interest and other related issues