Monetary Authority

MONETARY
AUTHORITY
FORMULATES, IMPLEMENTS
AND MONITORS THE MONETARY
POLICY
OBJECTIVE:
Maintaining price stability while

keeping in mind the objective of
growth.
REGULATOR AND SUPERVISOR
OF THE FINANCIAL SYSTEM
PRESCRIBES BROAD PARAMETERS OF BANKING
OPERATIONS WITHIN WHICH THE COUNTRY'S
BANKING AND FINANCIAL SYSTEM FUNCTIONS.
OBJECTIVE:
Maintain public confidence in the system,
protect depositors' interest and provide cost-
effective banking services to the public.
MANAGER OF
FOREIGN EXCHANGE
MANAGES THE FOREIGN EXCHANGE

MANAGEMENT ACT, 1999.
OBJECTIVE:
To facilitate external trade and payment and
promote orderly development and maintenance
of foreign exchange market in India.
ISSUER OF CURRENCY
ISSUES, EXCHANGES AND DESTROYS CURRENCY

NOTES AS WELL AS PUTS INTO CIRCULATION
COINS MINTED BY GOVERNMENT OF INDIA.
OBJECTIVE:
To give the public adequate quantity of supplies
of currency notes and coins and in good quality.
DEVELOPMENTAL
ROLE
OBJECTIVE:
Performs a wide range of promotional
functions to support national
objectives.
REGULATOR AND
SUPERVISOR OF PAYMENT
AND SETTLEMENT
SYSTEMS
REGULATOR AND SUPERVISOR OF PAYMENT
AND SETTLEMENT SYSTEMS
OBJECTIVE:
Maintain public confidence in payment and
settlement system.
RELATED FUNCTIONS
 BANKER TO THE GOVERNMENT:

PERFORMS MERCHANT BANKING FUNCTION FOR THE
CENTRAL AND THE STATE GOVERNMENTS; ALSO
ACTS AS THEIR BANKER.
 BANKER TO BANKS:
MAINTAINS BANKING ACCOUNTS OF ALL
SCHEDULED BANKS
CDD
 The process of gathering and verifying information about a customer
during the onboarding process
 Information includes the customer’s name, address, and other personal

information.
 When establishing a business relationship, companies must perform CDD
 Businesses that do not use CDD expose themselves to fraud as well as fines
for non-compliance with anti-money laundering or AML requirements.
 For example, a bank or trading platform may need to check a customer’s

passport before allowing them to open an account and deposit funds into
it.
TYPES OF
CDD
 When there is a low risk of money laundering,
some regulators allow a simplified check, known
as Simplified Due Diligence (SDD)
 Businesses may need to perform more in-depth
verification, known as Enhanced Due Diligence,
in higher-risk situations (EDD).
PIDEECO
 Theirdedicated platforms can operate on local or
outsourced supports adapted to each case.
 In the platform's workflows, evaluations, documentation
and data categorization are available. This ensures
business continuity and the workflow does not depend on
staff turnover.
 Pideeco has a team of IT experts, lawyers and financial
experts to assist you throughout the implementation of the
CDD Investigation Platform.
BAIN AND
COMPANY
 Their deep expertise and global network help them guide clients
at all stages of the process.
 They begin with the investment thesis, which they flesh out and
later test by concentrating on the big issues that will determine
the deal's ultimate success.
 They then pair fieldwork—gaining insight into customers,
suppliers, and competitors—with their best-in-class ecosystem of
alternative data solutions, automation tools, and private equity-
specific advanced analytics capabilities to build a proprietary
understanding of the investment's true potential.
BANKING
COMPLIANCE
 It is to make sure that the rules and regulations in the bank are being followed, thus
preserving the reputation and integrity of the banks.
 The bank's board of directors have the duty to ensure the compliance function of the banks.
 Banks must, among other things, have a strong compliance risk management programme at
the bank and group level as part of a strong compliance system.
 To effectively manage compliance risk, a designated Chief Compliance Officer (CCO) is

appointed through a suitable process with appropriate 'fit and proper' evaluation/selection
criteria.
 A bank must develop a board-approved compliance policy outlining its compliance philosophy,
expectations for compliance culture, including tone from the top, accountability, incentive
structures, effective communication, and challenges thereto, the structure and purpose of
the compliance function, role of the CCO, and procedures for detecting, assessing,
monitoring, managing, and reporting on compliance risk across the board.
BANKING
COMPLIANCE
 The increasing acceptance of digitisation has altered how public services are
provided. Indian payment technology known as Unified Payment Interface
(UPI), which enables immediate, real-time bank-to-bank transactions utilising
mobile devices, has seen amazing growth. As a result, both peer to peer and
in-store transactions can now be completed with a click on a mobile device.
 Although peer-to-peer transfers and retail payments experienced this success,

it was not possible to replicate it when it came to the credit and payment
needs of small businesses.
 To close this funding gap and aid small businesses in more quickly obtaining
financing from the formal sector, the NITI Aayog, the government of India's
apex public policy think tank, recommended a full-stack digital bank in its
discussion paper titled "Digital banks - a proposal for licencing and regulatory
regime for India" published in November 2021.

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MONETARY

Maintaining price stability while

MANAGES THE FOREIGN EXCHANGE

ISSUES, EXCHANGES AND DESTROYS CURRENCY

 BANKER TO THE GOVERNMENT:

 Information includes the customer’s name, address, and other personal

 When establishing a business relationship, companies must perform CDD

 For example, a bank or trading platform may need to check a customer’s

 To effectively manage compliance risk, a designated Chief Compliance Officer (CCO) is

 Although peer-to-peer transfers and retail payments experienced this success,

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