RBI defines Role and selection criteria of Chief Compliance Officer (CCO) in Banks

The Reserve Bank of India has released the guidelines to be followed by commercial banks for the appointment of Chief Compliance Officer (CCO).
Scheduled Commercial Banks (Excluding RRBs), Local Area Banks, Small Finance Banks and Payment Banks have to appoint a Chief Compliance Officer (CCO) to have an effective compliance culture, independent corporate compliance function and a strong compliance risk management programme at bank and group level.
Here are some of the norms to be followed by banks for the appointment of a CCO:
- Tenor for the appointment of CCO – minimum fixed tenure of not less than 3 years.
- Eligibility Criteria for appointment as CCO
  - Age – Not more than 55 years;
  - Experience – The CCO shall have an overall experience of at least 15 years in the banking or financial services, out of which minimum 5 years shall be in the Audit / Finance / Compliance / Legal / Risk Management functions;
  - Rank – The CCO shall be a senior executive of the bank, preferably in the rank of a General Manager or an equivalent position (not below two levels from the CEO).

Points to remember:

Source: RBI