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companies besides being a member of working groups like the Early Warning Group (EWG)
set up by the Sub-Committee of Financial Stability and Development Council (FSDC).
3.4.3 Capacity Building Events
The onset of COVID-19 pandemic and the consequent travel restrictions prevented physical
interactions and resulted in trainings/meetings being conducted through the On-Line mode.
The following capacity building events were conducted On-Line by the Bank during the year
2020-21:
(i) Training on Know Your Customer (KYC) and Anti Money Laundering (AML) activities-
HFCs have certain obligations under the Prevention of Money Laundering Act, 2002
(PMLA) including reporting of large cash and suspicious transactions to Financial
Intelligence Unit-India (FIU-IND) as Cash Transaction Report (CTR) and Suspicious
Transaction Report (STR). In collaboration with FIU-IND, three training programmes
on Compliance with KYC guidelines and AML measures were organised for various
HFCs on 29th January 9th June & 28th June, 2021. Officials from FIU-IND and NHB
explained the importance of KYC guidelines & AML measures and the various reporting
requirements.
(ii) Training on Regulatory and Supervisory Issues- In the wake of the recent developments
in the financial sector and transfer of regulatory aspects of HFCs to the Reserve Bank of
India, NHB arranged for training by RBI faculty on various regulatory and supervisory
issues for the officers of the Department and for officers posted at RO/RROs.
The training was held from December 1-4, 2020 and covered various topics including
Onsite Inspection Methodology vis-à-vis revised regulatory framework for HFCs.
(iii) Training on Supervisory Returns- NHB had organised 3 days online training program
on Supervisory Returns for the newly registered HFCs. The training was held from
14-16 June, 2021 and over 35 officers from 15 HFCs participated in the training. All
the existing supervisory returns to be submitted by the HFCs to the Department of
Supervision were discussed in depth during the training. Further, the common errors
observed in the filing of the returns were also discussed.
3.4.4 Forward looking Initiatives
Review of Supervisory Returns: During the FY 2020-21, NHB has thoroughly revised the
supervisory returns based on the Master Direction – NBFC – HFC (Reserve Bank) Directions,
2021. The returns are presently under development in the ORMIS portal. Till the new returns
are made operational in ORMIS portal, HFCs will continue to submit the returns in the
existing format in ORMIS.
226 | Annual Report 2020-21
set up by the Sub-Committee of Financial Stability and Development Council (FSDC).
3.4.3 Capacity Building Events
The onset of COVID-19 pandemic and the consequent travel restrictions prevented physical
interactions and resulted in trainings/meetings being conducted through the On-Line mode.
The following capacity building events were conducted On-Line by the Bank during the year
2020-21:
(i) Training on Know Your Customer (KYC) and Anti Money Laundering (AML) activities-
HFCs have certain obligations under the Prevention of Money Laundering Act, 2002
(PMLA) including reporting of large cash and suspicious transactions to Financial
Intelligence Unit-India (FIU-IND) as Cash Transaction Report (CTR) and Suspicious
Transaction Report (STR). In collaboration with FIU-IND, three training programmes
on Compliance with KYC guidelines and AML measures were organised for various
HFCs on 29th January 9th June & 28th June, 2021. Officials from FIU-IND and NHB
explained the importance of KYC guidelines & AML measures and the various reporting
requirements.
(ii) Training on Regulatory and Supervisory Issues- In the wake of the recent developments
in the financial sector and transfer of regulatory aspects of HFCs to the Reserve Bank of
India, NHB arranged for training by RBI faculty on various regulatory and supervisory
issues for the officers of the Department and for officers posted at RO/RROs.
The training was held from December 1-4, 2020 and covered various topics including
Onsite Inspection Methodology vis-à-vis revised regulatory framework for HFCs.
(iii) Training on Supervisory Returns- NHB had organised 3 days online training program
on Supervisory Returns for the newly registered HFCs. The training was held from
14-16 June, 2021 and over 35 officers from 15 HFCs participated in the training. All
the existing supervisory returns to be submitted by the HFCs to the Department of
Supervision were discussed in depth during the training. Further, the common errors
observed in the filing of the returns were also discussed.
3.4.4 Forward looking Initiatives
Review of Supervisory Returns: During the FY 2020-21, NHB has thoroughly revised the
supervisory returns based on the Master Direction – NBFC – HFC (Reserve Bank) Directions,
2021. The returns are presently under development in the ORMIS portal. Till the new returns
are made operational in ORMIS portal, HFCs will continue to submit the returns in the
existing format in ORMIS.
226 | Annual Report 2020-21
