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Posted by: CIEL on Wed, Jan 3rd, 2018

RBI Requires Banking Capacity Building Certification in 2018

The banking sector is an important and fast growing sector in India today. With consumers becoming more aware of finance and investment, BFSI has evolved into a competitive market with numerous banks offering different financial products and services in a bid to attract and retain customers.

This has led to an increased demand for personnel with intrinsic knowledge of financial systems from both banks and customers alike: banks prefer hiring candidates with specialised knowledge and their clients place more trust in qualified staff.

Why is Capacity Building Necessary?

The RBI has defined Capacity Building as the “planned and continuous development of (or increase in) knowledge, management, skills, and other capabilities of persons and organizations through acquisition, guidance, incentives, technology and/or training.”

Benefits of Capacity Building

  • Capacity building is important so that issues of mis-selling and customer grievances can be appropriately handled
  •  Knowledgeable staff is more likely to give customers the best possible service and to recommend products that are most suited to them
  • Capacity building programmes will also ensure compliance statutes and regulations are adhered to
  • It also addresses any knowledge or skill gaps among employees

It is important to note that capacity building is an ongoing process so that personnel stay up to date with the latest developments, regulations and technologies in order to stay competitive.

Reserve Bank of India’s Capacity Building Initiative

The Reserve Bank of India (RBI) has acknowledged the need for qualified personnel in the Banking and Financial Services Centre and instituted a ‘Committee on Capacity Building’ in July 2014 with a view to building the skillsets of existing bank personnel through training and certification courses. According to the recommendations (full report) by the committee, banks would be required to make certification mandatory for employees in 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

The RBI later amended this list (on the 31st of May 2017) to make certification mandatory for employees working in the Foreign Exchange Operations sector of the banking industry as well. These regulations will come into effect from the 1st of April 2018.

Certification and Capacity Building in the rest of the BFSI sector

Mandatory certification is not a new concept to the BFSI sector. In fact, it is already compulsory to obtain certain qualifications before being able to work in certain aspects of the BFSI industry. For example, NISM certification is mandatory for individuals wanting to work as wealth managers in the country.

In order to operate in the Indian Securities Market, the Securities and Exchange Board of India (SEBI) requires candidates to obtain various certifications from the National Institute of Securities Markets (NISM) to operate in stock markets. Understanding the need for an education system catering exclusively to the complexities of Indian financial sector, the Centre for Investment Education and Learning (CIEL) offers training courses for the following NISM certifications:

  • NISM-Series-V-A: Mutual Fund Distributors Certification Examination
  • NISM-Series-V-B: Mutual Fund Foundation Certification Examination
  • NISM-Series-VII: Securities Operations and Risk Management Certification Examination
  • NISM-Series-VIII: Equity Derivatives Certification Examination
  • NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination
  • NISM Series-X-B: Investment Adviser (Level 2) Certification Examination

Additionally, CIEL also offers a Wealth Management Certification (Advance Level) course which has been accredited by the National Institute of Securities Markets (NISM) under Regulation 7(2) of the SEBI (Investment Advisers) Regulations, 2013 which has provided training to over 15000 individuals since its inception in 2007.

Timely certifications will let financial sector and banking professionals achieve proficiency, build your reputation in the market, and let you serve customers with confidence. We are here to help financial and bank employees upgrade key skills with the right certifications. Contact us to know more.


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