Core Integra: Transforming the landscape of labour laws in India and its impact on NBFCs

New Delhi (India), September 25: In the dynamic landscape of India’s Non-Banking Financial Companies (NBFCs), a pressing need for stringent labour law regulation and compliance has emerged as a pivotal concern. Recent findings from a comprehensive survey reveal a startling statistic: a whopping 92% of NBFCs have faltered in adhering to at least one critical compliance requirement in the past year. Furthermore, the regulatory scrutiny on this sector has intensified, with a staggering 3,110 NBFC Certificate of Registrations (CoRs) being cancelled between 2015 and 2022. The Reserve Bank of India (RBI) has taken proactive measures to assess the levels of compliance, announcing audits for approximately 9,500 NBFCs to ensure adherence to regulatory standards./  

The complexities of compliance in the NBFC sector are undeniable, with a single-state operation necessitating the fulfilment of a staggering 621 compliance obligations and 35 one-time registrations. In a fast-paced regulatory environment, the year 2022 alone witnessed the release of 27 regulatory updates tailored to the unique challenges faced by NBFCs.

These compelling statistics underscore the critical importance of labour law regulation and compliance in the NBFC sector & the emerging need for expert consultation in this domain. Core Integra is a leading firm in the area of Labour Law and Regulatory Compliances offering Advisory, Outsourcing and Technology solutions to 500+ Clients across 30 industries in 1500+ locations pan India.

At a recent event organised by Banking Frontiers on the 25th August,2023- ‘NBFC Awards & Conference 2023’; Core Integra’s MD, Mr. Mahesh Krishnamoorthy was one of the key speakers for the conference. The event was centred around the NBFC sector, which has undergone remarkable transformation in recent years, evolving from being a secondary lending option compared to traditional banks into a frontrunner within the FinTech and Peer-to-Peer lending landscape. Presently, it employs more individuals than the banking sector and is actively exploring cutting-edge technologies, setting it apart from traditional banks. In numerous aspects, NBFCs have now become the preferred choice over traditional banks.

This event convened over 200 participants hailing from the NBFC sector, featuring more than 50 influential leaders from within the industry who served as speakers and panellists. The topics covered during the event spanned discussions on the sector’s future, policy considerations, and the ongoing digital transformation.
 
Core Integra chose to engage in the event due to its strategic alignment with the NBFC sector, which serves as a key target market for its business. Currently, Core Integra provides services to over 20 prominent NBFCs in India. The event presented an excellent opportunity to spotlight CtrlF, India’s largest and most comprehensive labour law compliance platform, primarily because the event’s agenda and the attendees’ interests were predominantly centred around leveraging technology to enhance day-to-day business operations. This focus aimed at achieving greater transparency, reducing costs, and improving governance.

Leveraging its proficiency in labour law compliance, Core Integra aimed to highlight the critical significance of this aspect to both event participants and industry leaders. The company emphasised that any negligence or concessions concerning these laws could potentially result in adverse consequences, impacting the operations, revenue, and scalability of NBFCs. Mahesh concentrated his discussion on this particular area of concern during his presentation to the audience and also addressed the changes, impact, implementation & access with reference to the reforms in the Code of Wages.

The event proved to be an exploration of cutting-edge tech products, and within this dynamic environment, Core Integra (CI) made a significant impact. Attendees expressed a keen interest in understanding CI’s risk management capabilities across various industries. Participants, largely from the banking and NBFC sectors, were eager to grasp the intricacies of the compliances and expressed a desire to connect with CI for further partnerships.

CXOs from diverse industries engaged in discussions about the tech-driven aspects of compliance within their respective domains. Advisors sought insights into CI’s approach to compliances within the Indian market context. Conversations also delved into the potential for cost savings through reduced human intervention.

Core Integra’s participation in the event underscored the pivotal role that technology-driven compliance solutions play in today’s rapidly evolving business landscape, especially within the NBFC sector. Core Integra remains committed to empowering businesses, including NBFCs, with cutting-edge compliance solutions that drive transparency, efficiency, and robust governance.

To know more about Core Integra, visit www.coreintegra.com

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