Compliance in Banks by Indian Institute of Banking & Finance

Compliance in Banks is a comprehensive guide to the regulatory and compliance frameworks governing the banking industry. It distils critical guidelines, norms, and global best practices—covering everything from Basel III capital-adequacy rules to risk management and governance structures. This thoroughly revised edition incorporates the latest regulatory updates to provide readers with a comprehensive understanding of contemporary banking compliance landscapes. The book serves as a foundational text for newcomers and a practical manual for seasoned professionals, ensuring that readers not only learn the principles of compliance but also understand how to apply them effectively in practical scenarios. Each chapter has been meticulously designed to clarify complex regulations and provide actionable insights for effective compliance management.

This book is intended for the following audience:

• Banking Professionals – Executives, managers, and practitioners seeking a comprehensive reference on domestic and international banking regulations
• Compliance Officers and Auditors – Those responsible for designing, monitoring, and enforcing internal control frameworks
• Students and Academics – Individuals enrolled in banking and finance courses, particularly those preparing for professional certifications like the Certified Banking Compliance Professional (CBCP)
• Regulatory and Risk Management Specialists – Professionals focused on navigating risk-based supervision and mitigating operational, credit, and market risks within financial institutions

The Present Publication is the 2025 Edition, updated by Mr P.S. Khandelwal (Former Chief Compliance Officer – IndusInd Bank) and vetted by Prof. (Dr.) Satyajit Dhar (Department of Business Administration – University of Kalyani, West Bengal). Taxmann exclusively publishes this book for the Indian Institute of Banking and Finance [for the Certified Banking Compliance Professional (CBCP)] with the following noteworthy features:

• [Regulatory Clarity] Breaks down intricate regulations, including Basel III, prudential norms, large-exposure limits, FEMA guidelines, etc., into easily understandable sections
• [Practical Approach] Offers case studies and examples that demonstrate how to interpret and implement regulatory guidelines
• [Comprehensive Coverage] Addresses every facet of bank operations—from deposit management to foreign exchange, digital banking, and beyond—ensuring a holistic compliance framework
• [Expert Insights] Developed in consultation with subject matter experts, reviewers, and industry stakeholders to offer authoritative guidance
• [Structured Learning] Aligns with the CBCP course curriculum, providing a streamlined journey through essential compliance topics

The content encompasses a broad range of regulations and operational standards that banks must comply with. The key areas include:

• Regulation and Supervision of Banks (Module I)
• Explores financial-sector regulations, statutory frameworks, and supervisory bodies that oversee banks
• Risk Management in Banks (Module II)
• Covers Basel III capital-adequacy norms, risk-based supervision, and various categories of risk such as market, credit, and operational risks
• Compliance Functions (Module III)
• Examines governance structures, roles and responsibilities of the Board and the Chief Compliance Officer, and strategies for building a strong compliance culture
• Guidelines on Loans and Advances (Module IV)
• Addresses statutory restrictions, large-exposure norms, retail lending products, and prudential norms for income recognition and asset classification
• Foreign Currency Operations Under FEMA (Module V)
• Provides an in-depth look at foreign exchange-related regulations, including export-import guidelines, external commercial borrowings, and overseas investments
• Guidelines on Deposits/Other Services & Digital Banking (Module VI)
• Discusses operational aspects of deposit accounts, remittance services, electronic payments, agency banking, and digital banking channels
• Customer Services and Protection (Module VII)
• Reviews KYC/AML norms, guidelines on customer service, IT security and outsourcing standards, as well as fraud and vigilance frameworks
• Other Important Regulations and Guidelines (Module VIII)
• Features disclosure requirements, statutory returns, key RBI circulars, and updates on recent RBI reports
• Important Laws Relevant for Banks (Module IX)
• Summarises major laws impacting bank business activities, organisational structures, and support functions alongside illustrative case studies
• International Best Practices in Compliances (Module X)
• Highlights global compliance trends, best practices, and their relevance to domestic banking operations
• Additionally, annexures provide perspectives on banking supervision and practical insights into the day-to-day functioning of a compliance department

The structure of the book is as follows:

• Modular Layout – Ten modules, each focused on a distinct area of banking compliance, allowing readers to navigate seamlessly from foundational topics to advanced concepts
• Unit-based Chapters – Each module is broken down into specific units that tackle particular regulatory aspects—making it easier to reference rules and guidelines
• Annexures and Case Studies – Supplementary sections offer deeper analyses, best practices, and practical applications, making the material highly practical