πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!

  • google app store apple app store
  • βœ–

      Question

      As per RBI guidelines on fraud risk management in NBFCs,

      the Special Committee of the Board for Monitoring and Follow-up of cases of Frauds (SCBMF) must consist of how many members, and who specifically?
      A At least 3, consisting of the CEO and two Independent Directors Correct Answer Incorrect Answer
      B At least 3, consisting of the CEO, Risk Officer, and one Independent Director Correct Answer Incorrect Answer
      C At least 3, consisting of the CEO and two Non-Executive Directors Correct Answer Incorrect Answer
      D At least 3, consisting of the CEO, Compliance Officer, and one Independent Director Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      β€’ RBI mandates that all NBFCs in the Upper Layer, Middle Layer, and Base Layer (with asset size β‰₯ β‚Ή500 crore) must set up a Special Committee of the Board for Monitoring and Follow-up of cases of Frauds (SCBMF). β€’ Composition requirements: o Minimum 3 members of the Board. o Must include the Chief Executive Officer (CEO). o Must include two Independent Directors. o The Chairperson of the committee must be an Independent Director. β€’ For some Middle and Base Layer NBFCs, a Committee of Executives (CoE) can be constituted instead, with at least 3 members (including a Whole-time Director/equivalent rank official).

      Practice Next
      ask-question