The Reserve Bank of India has told NBFCs with more than Rs 5000 crore in assets to appoint chief risk officers. These officers, the RBI said, should have specified role and responsibilities in view of the increasing role in direct credit intermediation of these companies. The directive is viewed in the background of the collapse of IL&FS. The CRO is required to function independently to ensure highest standard of risk management and he should be a senior official in the hierarchy of the company and should have professional qualifications and experience in risk management, the RBI said. The directive is applicable to investment and credit companies, infrastructure finance companies, microfinance organizations and factors and infrastructure debt funds. The RBI has also stipulated other conditions for the appointment like a fixed tenure with the approval of the board and any premature transfer/removal of the officer to be reported to the department of Non-Banking Supervision of the RBI’s regional office, under whose jurisdiction the NBFC concerned is registered.