With a view to strengthening the supervision and regulation of commercial banks, urban cooperative banks and Non-Banking Financial Companies(NBFCs), the Reserve Bank of India (RBI) on Tuesday has decided to create a specialised supervisory and regulatory cadre within the RBI.
The Board of RBI also reviewed the present structure of supervision in RBI in the context of the growing diversity, complexities and interconnectedness within the Indian financial sector.
The reason behind a potential overhaul of the RBI supervisory structure are expected to the non-bank finance crisis, failures of credit rating agencies to flag risks, divergence in asset quality by big banks and alleged lapses on the part of auditors.
The Reserve Bank of India’s (RBI) Central Board met today in Chennai under the chairmanship of Shaktikanta Das, Governor, Reserve Bank of India.
The Central Board Members also took the pledge on the occasion of Anti-Terrorism Day.
The Board reviewed the current economic situation, global and domestic challenges and various areas of operations of the Reserve Bank. Among other important matters, the Board discussed the medium term strategy document, covering, inter-alia, the mission statement and the vision statement. Other matters discussed by the Board included, inter-alia, issues related to the Currency Management and Banker to Government functions of the RBI.