RBI to create Specialised Supervisory and Regulatory CadreDate: 22 May 2019 Tags: Banking Committees, Banking Laws & Regulations
Reserve Bank of India (RBI) has decided to create specialised supervisory and regulatory cadre to strengthen supervision and regulation of commercial banks, urban cooperative banks and non-banking financial companies (NBFCs). This decision was taken at 576th meeting of RBI’s Central Board under Chairmanship of RBI Governor Shaktikanta Das.
The main reasons behind RBI’s move to create an additional oversight mechanism are recent NBFC crisis, failures by credit rating agencies to flag risks, divergence in asset quality by big banks, and alleged lapses by auditors. This had demanded complete overhaul of crucial job of supervision so that RBI is better equipped in picking up early warning signs.
Specialised supervisory and regulatory cadre
It may include consolidating of RBI’s different supervisory activities under separate division or head, creating pool of officials for better analysis of continuous flow of data from banks and finance companies and involving specialists.
Highlights of Board Meeting
- It reviewed current economic situation, global and domestic challenges and various areas of operations of the Reserve Bank.
- It also discussed issues related to the currency management and banker to government functions of the RBI.
- It also discussed other important matters such as Medium Term Strategy document, covering mission and vission statements.
- It also reviewed the present structure of supervision in RBI in context of growing diversity, complexities and interconnectedness within financial sector.