Policy ID: PCI/POL/10/2026-27 • Version 1.0 Owner: Risk Head / Risk Management Committee • Approver: Board of Directors Sources: GOV, CON, ALM, COM • Review: Annual / regulatory change
Purpose and application
Credit, market, liquidity, operational, compliance, conduct and strategic risks.
1. Risk appetite:- The Board shall approve measurable tolerances for delinquencies, losses, concentrations, liquidity and operational incidents. Risk shall independently challenge business proposals and have direct escalation access without sales interference.
2. Identification and assessment:- Maintain a risk register with owner, likelihood, impact, controls and residual rating. Assess new products, branches, vendors and changes before launch. Credit assessment shall cover repayment capacity, indebtedness, income reliability and collateral enforceability.
3. Monitoring:- Track vintage defaults, roll rates, fraud losses, complaints, liquidity and concentration. Use early warning indicators, borrower/group aggregation and stress tests. Reconcile source data to financial and loan systems.
4. Response and exceptions:- For each material breach, freeze further risk taking where needed and assign a time- bound corrective plan. Exceptions require independent risk opinion and competent approval; no exception may waive law or RBI direction.
5. Assurance and reporting:- Risk shall provide a monthly dashboard and quarterly Board/RMC report. Internal audit independently evaluates controls. Review appetite after material losses and review the policy annually. Maintain incident and exception evidence.
Source codes are linked to the Reference Register. Read with the common implementation controls and relevant annexes. Applicable law and RBI Directions prevail.