CAIIB · ABM · Chapter 3

Compliance Governance Structure

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Bank Management — CAIIB.

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Q

What are the five tiers of RBI's mandated compliance architecture in commercial banks?

A

Board → ACB → MD/ED → Independent Compliance Dept (CCO) → Field-level setup.

Q

Who must the CCO report to directly?

A

MD & CEO and/or Board/ACB. Direct reporting line is non-negotiable.

Q

What is the rule for ACB meetings with the CCO?

A

Quarterly one-to-one meetings without MD/CEO or senior management present—preserves independence.

Q

Where do Regional/Zonal Compliance Officers report?

A

Directly to the CCO at Central Office, not to their host RO/ZO Head.

Q

What is the minimum rank for the CCO?

A

Senior executive in rank of General Manager (GM) or equivalent.

Q

Can compliance staff undertake audit or inspection duties?

A

No. Creates conflict of interest; strictly prohibited under RBI guidelines.

Q

What is the mandatory review frequency for the compliance function?

A

Independent review at least once in 3 years; quarterly Board review; annual implementation status review.

Q

How long must new products be monitored for compliance risk?

A

Intensively monitored for 6 months from introduction to ensure compliance parameters met.

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