Certification must for bank staff selling retail products: RBI

Mumbai: RBI today said bank employees involved in marketing third party retail products and wealth management services "must necessarily undergo" an appropriate certification process to check mis-selling and minimise customer complaints. 

In cases where other financial sector regulators have prescribed any certifications, these must be complied with as part of capacity building in banks and financial institutions (Exim Bank, NABARD, NHB and SIDBI), it said.

In July 2014, RBI had set up a 'Committee on Capacity Building' with the objective of implementing non-legislative recommendations of the Financial Sector Legislative Reforms Commission (FSLRC) relating to capacity building.

The panel made extensive suggestions related to overall Human Resource Management (HRM), as also specific recommendations on areas like recruitment, performance assessment and promotion.

RBI said "it is felt" that recommendations pertaining to the banks may be implemented by them based on their organisational objectives and business strategies, after taking approval from their respective boards.

"Banks should identify specialised areas for certification of the staff manning key responsibilities," it said, while listing recommendations for implementation.

To begin with, RBI said the banks should make acquiring of a certificate course mandatory for treasury operations, mid-office operations, risk management, accounting and credit management.

"The employees working in the aforementioned areas should be asked to acquire certifications within a specified period, say, 6 months," it said, adding that banks are free to require certification for other areas also.

The issue of setting up of an accreditation agency for assuring and accrediting learning initiatives within the banking industry is being examined separately, it added. In the interim, Indian Banks' Association (IBA) has been

requested to identify in consultation with RBI and provide to its members, by end December 2016, a list of institutions and courses that will meet the certification requirements for different work areas mentioned above.

For this exercise, IBA may form an expert group comprising such agencies, institutions as it deems necessary. After the release of the list by the IBA, the banks should identify the courses/certifications that are suitable for their operations and put in place a board-approved policy, mandating obtainment of such certifications by its employees working in the respective areas.

The banks should ensure that by end-March 2017, the employees in relevant areas have commenced the process of obtaining necessary certifications, it said.

"It is expected that, w.e.f. April 1, 2018, staff will have first obtained the requisite certification before being posted in the above mentioned functional areas," it added.