Blog Details

Author - Associate Megha Motwani

Defining Regulatory Compliance? 

Regulatory Compliance is your efforts and corporate’s efforts to ensure that you are abiding by both industry standards and government regulations while performing certain tasks. Being compliant helps you minimize risk and be prepared for any potential external audits. It is important to understand the term ‘compliance’. It includes abiding by the relevant regulations as well as observing contractual obligations and internal guidelines.

As you know, banking is perhaps the most highly regulated industry with lots of rules covering everything that we do in order to uphold the principles which endure. Each of us must operate on the right side of those rules and regulations at all times. However, how can each of us be expected to know them all well with so many rules and that too changing so frequently? That is precisely where compliance comes in. Compliance is placed to give you the ability to do your work without having to memorize every last rule or regulation. Compliance doesn’t just answer the question of whether something can be done, but It also helps you find the alternate way of doing the same thing to reach the same goal. Compliance provides navigation in a sea of various regulatory processes.

The compliance can be divided into two parts: General and Specific regulations. The general ones are those that directly deal with the type of work undertaken by the regulator. On the other hand, specific compliance includes such laws that everybody has to comply with irrespective of their field of work, such as; GST, Company law, Labour Laws, etc. 

Why Regulatory Compliance Is A Big Deal?

Compliance with the regulation is required at every step and in every form of work. For instance, if someone provides cloud service, operates any e-platform or builds any network and wants to secure the same or if s/he is involved in providing banking services or is in healthcare industry etc., he/she has to comply with the applicable regulations which are there in the form of laws, rules, bylaws, government policies or procedures and guidelines. 

Compliance is a critically important element of anything that happens in a regulated trade. You need to comply with the regulations to uphold your license and be seen doing what you should be doing. It’s more of an essential requirement to be able to uphold the industry, as something worthy of people, for the consumers to put their time and money. If the business is not regulated properly as it should have been, you will face huge fines and because of the size of fines which are often so absolutely huge that they end up damaging your business. The technology is critical to get this right so that you can facilitate the lives of good consumers, and spot those with whom you need to be cautious and diligent before transacting with; otherwise, you’ll have an operational cost and customer friction when it’s not needed.