A STUDY OF COMPLIANCE AND EFFECT OF RISK MANGEMENT REGULATORY FRAMEWORK OF URBAN COOPERATIVE BANKS IN NAGPUR CITY

Abstract

This study looks at UCBCs in Nagpur City to see how well they follow the rules for risk management and how effective those rules are. The study's overarching goal is to assess the effect of laws on these banks' risk management strategies and operational efficiency as well as their degree of compliance with such rules. In this mixed-method study, we interview bank executives and regulatory authorities to glean qualitative insights, and we quantitatively analyse compliance data and risk management measures. Compliance reports, risk assessments, and financial statements of UCBs are analysed quantitatively to identify important metrics including incident frequency, risk mitigation techniques, and adherence to regulatory norms. In order to acquire a better understanding of the risk management framework's efficacy and practical difficulties, qualitative data is gathered via structured interviews. The first results show that UCBs in Nagpur City follow the rules for risk management, although the efficacy of their implementation varies. Compliance level and risk management strategy success are affected by factors including resource limitations, regulatory complexity, and the ever-changing financial landscape. The research also shows where changes to regulations or better training might improve the results of risk management.