• Shivam Maurya
• September 20, 2024
• No Comments

The financial sector of India is rapidly changing with the influence of new technologies, development, and policies. This further aids in offering and developing dynamic space for every individual within the sector. However, it is essential to keep ourselves up to date about the rapid changes occurring within the sector. Since it can offer great guidelines for which different issues can be avoided. It has been observed that the financial pillars of India consist of banks, the insurance industry and the stock market.

However, it is quite important for an individual to understand the differences among the pillars of the financial sector and ways to avoid different cybersecurity issues. In this case, Essential Infosec can originally help you with relevant support. It is a CERT-In-empanelled information security consulting firm which offers specialised information security services to meet the expectations of customers.

Three important pillars of the financial sector

RBI:-

RBI is also referred to as the Reserve Bank of India. It is considered the central bank or apex bank of the domain. It was primarily established under the legislation of the Reserve Bank of India Act 1935. The primary aim of this pillar was to regulate the monetary policies and the banking sector of the domain. Some of the major functions of RBI include cooperative banks, NBFCs, and so on. It also plays a vital role in safeguarding the stability of the economy and overseeing the movement of funds within the domain.

Key functions of RBI

• It plays a crucial role in issuing banking licences for new and eligible entities.
• It plays a crucial role in reviewing the liquidity of the domain.
• It aids in determining and managing the interest rate and inflation rate of the country.
• It also supports inspecting the financial statement of the bank to ensure accuracy.
• It manages foreign exchange reserves, to ensure hassle-free international trade.

Aspects to be considered while preparing RBI audit.

While preparing the RBI audit following aspects can be considered.

• Internal audits: It is quite necessary to review internal audits and make comments on any irregularities.
• Off-balance sheet transactions: It is necessary to prepare off-balance sheet transactions to track the record to avoid any complications.
• Cybersecurity: It is necessary to ensure that the entire organisation is committed to developing a cyber-safe environment so that unauthorised parties may not access confidential information.

SEBI:-

After banks, another important sector or pillar is SEBI. This is also known as the stock market of the financial sector of India, which is primarily regulated by SEBI (Securities Exchange Board of India). This board or pillar was enacted, in direct response, to the SEBI Act of 1992.

Key functions of SEBI

• It offers a framework for businesses for listing and delisting securities.
• It is highly dedicated to preventing insider trading.
• It mandates formal registration for intermediaries operating within the security market.
• It plays a vital role in implementing a Formal Code of Conduct.

Aspects to be considered while preparing SEBI audit.

While preparing for the SEBI audit, the following aspects can be considered.

• Access Control: It will support reviewing the accessibility power of the organisation before allowing it to access any confidential information.
• Cyber security framework: It also ensures that the business organisation listed and all the market intermediaries have good cyber security measures to protect confidential information.
• Risk management: It helps in identifying the risk present within the business and also offers relevant support in mitigating all the issues to ensure business success.

IRDAI:-

It was mainly formed in the year 1999, IDRAI, plays a vital role in managing and overseeing the insurance realm. Moreover, it also safeguards the interests of policyholders.

Key functions of IDRAI

• It plays a crucial role in protecting the interest of the policyholders.
• It emphasises the safety margin levels.
• It plays a pivotal role in controlling premium rates.

Aspects to be considered while preparing IDRAI audit.

While preparing for the IDRAI audit, the following aspects can be considered.

• Financial statement: It is quite necessary to prepare a financial statement which will include detailed information about the profit and loss, revenue generated and other financial aspects of a brand.
• Management report: It is crucial to prepare a management report that will mainly include, the company’s registration details and others to ensure accuracy.
• Cash flow statement: It is also required to be prepared as it will help in understanding the cash flow scenario happening within a business organisation.

In concluding the overall observation, it can be said that the financial regulations of India are considered to be the backbone of the domain. Therefore, an individual should empower them to secure great valuable insights. Thus, in this case, Essential Infosec has shed light on exploring the importance of different financial regulations which need to be prioritised to ensure success with low cybercrime effects.