CFOs welcome RBIs easing of compliance norms

Metro India News | MUMBAI

The Reserve Bank of India (RBI) has announced a series of measures to simplify regulatory compliance, rationalize board-level requirements and enhance access to credit for micro, small, and medium enterprises (MSMEs).Additionally, it proposes to remove due diligence requirements for MSMEs onboarding onto Trade Receivables Discounting System (TReDS) platforms, facilitating faster invoice discounting and better working capital access.

Chief Financial Officers (CFOs) welcomed the reforms as pragmatic steps toward greater efficiency. Ajay Goel of Vedanta noted they would allow boards to prioritise strategic priorities. He highlighted that rationalizing board compliance would allow boards to focus more on strategy and risk oversight and help boards reprioritize bandwidth without diluting their responsibilities.

Dr Kishore Nuthalapati, CFO of BEKEM Infra Projects, strongly endorsed the RBI’s decision to rationalize board-level compliance requirements. He stated that the autonomy on board agenda items would help banks sharpen focus on strategy and risk management, while suggesting that further orientation by the regulator could strengthen governance outcomes. He explained that the changes would allow banks to expand loan books marginally without diluting provisioning discipline.

Both CFOs welcomed the RBI’s push for greater efficiency and MSME credit flow but stressed that governance standards must remain robust and that any credit uptick would be gradual rather than dramatic.