RBI mandate on capacity building in banks RBI mandate on capacity building in banks RBI mandate on capacity building in banks

RBI has made it mandatory for all commercial banks and All India Financial Institutions (AIFIs) in India to obtain certification in specified areas for their employees, vide circular dated 11 August 2016 on Capacity Buildings in Banks and AIFIs. As per the circular, banks should make acquiring of a certificate course mandatory for the following areas:

• Treasury operations – Dealers, mid-office operations
• Risk management – credit risk, market risk, operational risk, enterprise wide risk, information security, liquidity risk
• Accounting – Preparation of financial results, audit function
• Credit management – credit appraisal, rating, monitoring, credit administration.

It is expected that employees working in the aforementioned areas should be asked to acquire certifications before 31 March 2018, making this a significant compliance requirement.

The Indian Banking Association (IBA) has identified, in consultation with RBI, a list of institutions and courses that will meet the certification requirements for different work areas mentioned above.

The RBI circular also stated that banks should put in place a Board approved policy in this regard, mandating such certifications by its employees working in respective areas. The Boards of the banks are required to provide necessary guidance and monitor the implementation of this initiative.

IBA circular** accrediting agencies for providing training in the above mentioned areas

KPMG in India is the only accounting firm accredited by IBA in the area of accounting. IBA has accredited the Diploma in IFRS (ACCA) training programme conducted by KPMG in India, the only gold-approved learning partner accredited by ACCA.

This programme is relevant to the following sets of employees in the bank:

• Employees in the accounting and audit function
• Credit officers (CO) dealing with corporate and SME loans.

DipIFR course by KPMG in India

DipIFR is KPMG’s flagship training programme, designed to enable participants to acquire the skills and knowledge related to the latest international accounting practices and help them prepare for Diploma in IFRS examination conducted by ACCA. The course has the following structure:

Level 1: At the end of the programme, KPMG will issue a Certificate of Completion depending on the attendance and marks obtained in the final mock exam

Level 2: Participants can further appear in the examination conducted by ACCA to attain their Diploma in IFRS

Delivery Modes: This course is available in three formats:

• Self-paced video-based learning: Anyone can access this course anywhere, anytime through our Learning Management System. It allows participants to complete the certificate in their own time through an engaging and interactive platform
• Live online: Join a virtual classroom to do this course from any city through our live online option
• Classroom: Join us in the classroom for an in-person programme, dates of which are released every quarter.

More details on this course can be found here.

The KPMG in India advantage:

• Accredited gold-approved learning provider by the Association of Chartered Certified Accountants (ACCA)
• Conducted by experienced professionals from the firm
• Experience of training 6500+ participants
• Certificate issued to participants, subject to attendance and successful completion in mock tests
• Learning Management System that allows access to presentations, session videos, summary of standards, extracts of annual reports of IFRS compliant companies and KPMG publications.

Other relevant courses provided by KPMG in India:

• Certificate in Treasury Operations
• Certificate in Risk Management
  • Financial Risk management
  • IT Risk Management
• Certificate in Credit Management.

* Circular no: DBR.No.BP.BC.4/21.03.009/2016-17 Capacity Building in Banks and AIFIs/ Reserve Bank of India (RBI)/ August 2016/ Accessed 15th November 2017

** Circular no: CIR/HR&IR/KSC/2017-18/2602 Committee on Capacity Building: Report and Recommendation/ IBA/ April 2017/ Accessed 15th November 2017

To know more about this mandate and how KPMG can help, please get in touch with us at IN-FMCFS@KPMG.com

All learning programmes are offered under the auspices of the KPMG Learning Academy. Click here to know more and explore other programmes offered by KPMG in India.