{"what_this_is":"The machine-readable twin of the BankPulse page for one RBI rulebook. Same points, same dates, same paragraph references as the page a person reads. RBI's own wording is not reproduced here: each point names the RBI paragraph, the character offset into the text BankPulse read and the sha256 of that text, so the claim can be checked against RBI's own document.","schema_version":1,"release_id":"d653cdb0a5","generated_at":"2026-09-15T00:33:59.117975+00:00","id":"md13593","title":"Reserve Bank of India (Non-Banking Financial Companies - Compliance Function) Directions, 2026","document_kind":"Directions","page":"https://bankpulse.ai/rule/md13593","status":"In force","importance":{"code":"MR","label":"MUST READ","weight":"Must read","why":"Binding RBI Directions naming this institution class in the title","layer":"bankpulse_inference"},"applies_to":{"shown":"Finance companies","class_code":"NBFC","from":"the document's own title","layer":"bankpulse_inference"},"dates":{"prid":"md13593","mode":"four_dates_v1","published":{"label":"Published","value":"Jul 31, 2026","stated":true,"why":"The day RBI put this document out."},"effective":{"label":"Starts to apply","value":"","stated":false,"why":"Not stated separately in this document. Read the rule itself before you assume a start date."},"transition":{"label":"Time to get ready","value":"","stated":false,"why":"Cannot be worked out until the day it starts to apply is known."},"deadline":{"label":"Last date to act","value":"","stated":false,"why":"No date to act by was found in this document. Other dates may sit inside single paragraphs."},"sources":{"published":"doc_date in data/highlights/md13593.json","effective":"none held","transition":"none held","deadline":"none held"}},"rbi_source":{"url":"https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=13593","document_date":"Jul 31, 2026","read_by_bankpulse":"2026-08-21 16:26:04 UTC","text_sha256":"e2ae960b1928bfa40a3acd1d080b31c70ac82deb47236146a496ddfe99de94fd","word_count":2990,"standing_last_checked":"Standing checked on RBI’s Master Directions index, 15 September 2026, 5:58 am IST."},"counts":{"points_shown":27,"points_naming_an_rbi_paragraph":27,"points_stored":27,"actions":0,"amendments":0},"points":[{"n":1,"claim":"md13593-a5a4fd46","page_group":"Opening paragraphs","stored_section":"THE CORE IDEA","heading":"Sized to the lender","plain_english":"The rules are minimum standards; the compliance setup must match the lender's size, risk and structure.","rbi_paragraph":"Opening paragraphs","rbi_char_offset":2874,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p1","layer":"bankpulse"},{"n":1,"claim":"md13593-0e747d72","page_group":"Chapter I. Preliminary","stored_section":"KEY DATES","heading":"In force at once","plain_english":"These rules came into force on the day they were issued.","rbi_paragraph":"Para 2","rbi_char_offset":3723,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p2","layer":"bankpulse"},{"n":2,"claim":"md13593-cf56e69b","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Who is covered","plain_english":"These rules bind finance companies in the middle and upper layers of RBI's scale-based framework.","rbi_paragraph":"Para 3","rbi_char_offset":3819,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p3","layer":"bankpulse"},{"n":3,"claim":"md13593-34964741","page_group":"Chapter I. Preliminary","stored_section":"THE CORE IDEA","heading":"What compliance risk is","plain_english":"Compliance risk is the punishment, money loss, or lost trust a lender faces for breaking the rules.","rbi_paragraph":"Para 4(1)","rbi_char_offset":4541,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p4","layer":"bankpulse"},{"n":1,"claim":"md13593-43af7937","page_group":"Chapter II. Governance and Oversight","stored_section":"WHO SHOULD ACT","heading":"The board sets the policy","plain_english":"The board or its audit committee must put a compliance policy in place and set how often risk is reviewed.","rbi_paragraph":"Para 6","rbi_char_offset":5275,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"A written compliance policy sitting in a drawer is not enough. The board must ensure an appropriate compliance policy is put in place and implemented. Implemented is the word that does the work.","anchor":"https://bankpulse.ai/rule/md13593#p5","layer":"bankpulse"},{"n":2,"claim":"md13593-4e19995f","page_group":"Chapter II. Governance and Oversight","stored_section":"WHO SHOULD ACT","heading":"A yearly risk check","plain_english":"Management must assess the main compliance risks every year and prepare a plan to manage them.","rbi_paragraph":"Para 7","rbi_char_offset":5496,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p6","layer":"bankpulse"},{"n":3,"claim":"md13593-508c37e4","page_group":"Chapter II. Governance and Oversight","stored_section":"WHO SHOULD ACT","heading":"The annual review's contents","plain_english":"The yearly review must cover failures, losses, regulatory action, new rules, and the steps taken.","rbi_paragraph":"Para 7(1)","rbi_char_offset":5831,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"A year with no compliance failures still needs the review written. Where there were failures, the review carries the losses, any regulatory action, and the steps taken to avoid recurrence. Listing the failure without the remedy is half a review.","anchor":"https://bankpulse.ai/rule/md13593#p7","layer":"bankpulse"},{"n":1,"claim":"md13593-0e0d6285","page_group":"Chapter III. Scope, Structure, and Responsibilities","stored_section":"WHAT CHANGES","heading":"New products watched","plain_english":"Every new product gets intensive compliance monitoring for at least its first six months.","rbi_paragraph":"Para 15(2)","rbi_char_offset":10101,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"A bank launches a new deposit product in April. Compliance watches it closely until October, which is six months. The intensive monitoring runs from introduction, not from the first complaint.","anchor":"https://bankpulse.ai/rule/md13593#p8","layer":"bankpulse"},{"n":2,"claim":"md13593-3eae1917","page_group":"Chapter III. Scope, Structure, and Responsibilities","stored_section":"THE CORE IDEA","heading":"Strict observance","plain_english":"The function must ensure strict observance of every statutory and regulatory requirement.","rbi_paragraph":"Para 10","rbi_char_offset":7803,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p9","layer":"bankpulse"},{"n":3,"claim":"md13593-eadff1d5","page_group":"Chapter III. Scope, Structure, and Responsibilities","stored_section":"WHAT CHANGES","heading":"Free to structure","plain_english":"The company may shape its own compliance structure, but the function must stay independent and well resourced.","rbi_paragraph":"Para 11","rbi_char_offset":8168,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p10","layer":"bankpulse"},{"n":4,"claim":"md13593-4888bdea","page_group":"Chapter III. Scope, Structure, and Responsibilities","stored_section":"WHAT CHANGES","heading":"Other duties allowed","plain_english":"Compliance staff may take on some other duties, but only where no conflict of interest arises.","rbi_paragraph":"Para 13","rbi_char_offset":8989,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"A small bank asks its compliance staff to help with training. That is allowed. Some other duties may be assigned, provided no conflict of interest arises. Asking the same person to run the business they must check is not allowed.","anchor":"https://bankpulse.ai/rule/md13593#p11","layer":"bankpulse"},{"n":5,"claim":"md13593-d7726d2b","page_group":"Chapter III. Scope, Structure, and Responsibilities","stored_section":"WHAT CHANGES","heading":"Skills and succession","plain_english":"The team needs staff who know the rules, law, accounts, risk and technology, with succession planned.","rbi_paragraph":"Para 14","rbi_char_offset":9418,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p12","layer":"bankpulse"},{"n":6,"claim":"md13593-c1b9802b","page_group":"Chapter III. Scope, Structure, and Responsibilities","stored_section":"WHAT CHANGES","heading":"The central role","plain_english":"The function plays the central role in finding the level of compliance risk in the organisation.","rbi_paragraph":"Para 15(2)","rbi_char_offset":9831,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"Two departments disagree about how much compliance risk a new process carries. The compliance function plays the central role in identifying the level of compliance risk in the organisation. It is not one voice among several.","anchor":"https://bankpulse.ai/rule/md13593#p13","layer":"bankpulse"},{"n":7,"claim":"md13593-62776e68","page_group":"Chapter III. Scope, Structure, and Responsibilities","stored_section":"WHAT CHANGES","heading":"Audited itself","plain_english":"Compliance risk joins the internal audit framework, and the function itself is audited regularly.","rbi_paragraph":"Para 17","rbi_char_offset":11733,"weight":"BACKGROUND","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"The compliance function checks everyone else. It is checked too. Compliance risk sits in the internal audit risk assessment framework, and the function is subject to regular internal audit.","anchor":"https://bankpulse.ai/rule/md13593#p14","layer":"bankpulse"},{"n":1,"claim":"md13593-197b8b53","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"A three year term","plain_english":"The officer serves a fixed minimum tenure of not less than three years.","rbi_paragraph":"Para 21","rbi_char_offset":12772,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p15","layer":"bankpulse"},{"n":2,"claim":"md13593-a28a43ae","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"One year relaxation","plain_english":"In exceptional cases the board may relax the term by one year, with succession planned.","rbi_paragraph":"Para 21","rbi_char_offset":12874,"weight":"MUST KNOW","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"The board may relax the minimum tenure by one year, and no more. It may do so only where succession planning is already in place. A relaxation of two years is not available to it.","anchor":"https://bankpulse.ai/rule/md13593#p16","layer":"bankpulse"},{"n":3,"claim":"md13593-8af0be9f","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"A clean record","plain_english":"The officer must have a clean track record and unquestionable integrity.","rbi_paragraph":"Para 19","rbi_char_offset":12459,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p17","layer":"bankpulse"},{"n":4,"claim":"md13593-7f41dc70","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHO SHOULD ACT","heading":"Tell RBI first","plain_english":"RBI must be told in advance of any appointment, early transfer, resignation or removal, with a fit and proper certificate.","rbi_paragraph":"Para 29","rbi_char_offset":14896,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p18","layer":"bankpulse"},{"n":5,"claim":"md13593-53af1bd7","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHO SHOULD ACT","heading":"Chosen by committee","plain_english":"A board committee recommends the chief compliance officer; the board decides, and outside hiring is allowed.","rbi_paragraph":"Para 18","rbi_char_offset":12192,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"The chief executive cannot simply name the chief compliance officer. A committee constituted by the Board recommends, and the board decides. Hiring from outside the bank is open to it.","anchor":"https://bankpulse.ai/rule/md13593#p19","layer":"bankpulse"},{"n":6,"claim":"md13593-76fb67a2","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"Hard to remove","plain_english":"Removing the officer early needs rare grounds and the board's clear prior approval.","rbi_paragraph":"Para 22","rbi_char_offset":13043,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"A chief compliance officer who reports an uncomfortable finding cannot be moved out quietly. Removal before the term ends needs exceptional circumstances and the explicit prior approval of the board. It also needs a well-defined and transparent internal administrative procedure.","anchor":"https://bankpulse.ai/rule/md13593#p20","layer":"bankpulse"},{"n":7,"claim":"md13593-38bba621","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"Rank can relax once","plain_english":"The officer sits within two levels of the chief; middle layer companies may relax this by one more level.","rbi_paragraph":"Para 23","rbi_char_offset":13356,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p21","layer":"bankpulse"},{"n":8,"claim":"md13593-6e1f6204","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"Direct line to RBI","plain_english":"The officer has the freedom and authority to deal with the regulators directly.","rbi_paragraph":"Para 24","rbi_char_offset":13575,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p22","layer":"bankpulse"},{"n":9,"claim":"md13593-8cbb1ed4","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"A private quarterly meeting","plain_english":"If the officer reports to the chief, the board meets the officer alone every quarter.","rbi_paragraph":"Para 25","rbi_char_offset":13832,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p23","layer":"bankpulse"},{"n":10,"claim":"md13593-79d2eac5","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"No business ties","plain_english":"The officer reports to no business vertical, and the board reviews the officer's appraisal.","rbi_paragraph":"Para 26","rbi_char_offset":14038,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p24","layer":"bankpulse"},{"n":11,"claim":"md13593-d529b714","page_group":"Chapter IV. Chief Compliance Officer","stored_section":"WHAT CHANGES","heading":"One hat only","plain_english":"No dual hatting: the officer takes no role that conflicts with compliance work.","rbi_paragraph":"Para 27","rbi_char_offset":14149,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p25","layer":"bankpulse"},{"n":1,"claim":"md13593-38bd5bbc","page_group":"Chapter V. Use of Technology for Monitoring","stored_section":"WHAT CHANGES","heading":"One dashboard","plain_english":"Workflow tools must track compliance and give management one dashboard view of the whole lender.","rbi_paragraph":"Para 32(5)","rbi_char_offset":16570,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p26","layer":"bankpulse"},{"n":1,"claim":"md13593-af5ec752","page_group":"Chapter VI. Repeal and Other Provisions","stored_section":"WHAT IT REPLACES","heading":"What it replaces","plain_english":"Earlier compliance circulars for this class of lender stand repealed by these Directions.","rbi_paragraph":"Para 34","rbi_char_offset":17021,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13593#p27","layer":"bankpulse"}],"actions":[],"amendments":[],"layers":{"rbi_source":"Facts taken from RBI's own document.","bankpulse":"BankPulse's plain-English summary of RBI's document.","bankpulse_inference":"BankPulse's own inference, not stated by RBI."},"rbi_wording_not_included":"By design. BankPulse never republishes RBI's exact sentences. Use rbi_paragraph with rbi_source.url to read RBI's own words.","terms":"BankPulse's plain-English summaries are BankPulse's own work. The underlying regulation is the Reserve Bank of India's. Always check the RBI document named in rbi_source before acting."}