Taking cognisance of such a need and in line with the international best practices, in furtherance to the announcement made in the First Bi-monthly Policy Statement for the year _________________, the Board for Financial Supervision (BFS) approved a Supervisory Enforcement Framework for action against non-compliant regulated entities (REs), while ensuring the Principles of Natural Justice along with transparency, consistency, severity and timeliness of action.
2016-17 on April 5, 2016,
While the said framework was originally intended for undertaking enforcement action against scheduled commercial banks, following an announcement in the Sixth Bi-monthly Policy Statement for the year ______________, a separate Enforcement Department (EFD) was established in the Reserve Bank on April 3, 2017, with a view to put in place a structured, rule-based approach to identify and process the violations committed by scheduled commercial banks.
2016-17 on February 8, 2017,
Enforcement Department (EFD) was established in the Reserve Bank on
April 3, 2017,
EFD was also mandated to take enforcement action against
Urban Co-operative Banks, Non-Banking Financial Companies, Housing Finance Companies, Credit Information Companies and Payment System Operators
EFD was tasked with the responsibility of imposing monetary penalties for violations by the Scheduled Commercial Banks (SCBs) under _______________, rules framed, and directions/regulations issued thereunder and violations falling under the Prevention of Money Laundering Act, 2002 where directions have been issued by RBI under the BR Act.
Section 47A of the BR Act,
Subsequently, enforcement work pertaining to Co-operative Banks and Non-banking Financial Companies (NBFCs) was also brought under the purview of EFD with effect from
October 3, 2018
Thereafter, the National Housing Bank Act, 1987 [NHB Act] was amended vide Finance (No. 2) Act, 2019 and with effect from ____________, regulation of Housing Finance Companies (HFCs) under the NHB Act, and the consequent enforcement actions, were transferred to the Reserve Bank.
August 9, 2019,
The mandate of EFD was extended to include enforcement action against Credit Information Companies (CICs) with effect from
June 28, 2022.
Further, enforcement related work (i.e., imposition of monetary penalty and compounding) under the PSS Act has also been transferred to EFD since
April 1, 2023
Regional Offices of EFD (i.e., EFD ROs) were set up in May 2019 at
Ahmedabad, Chennai, Kolkata, Mumbai, Nagpur and New Delhi.
