RBI to create specialised supervisory and regulatory cadre

A decision to this effect was taken at a meeting of the RBI's Central Board chaired by its Governor.

RBI to create specialised supervisory and regulatory cadre
The board of the Reserve Bank of India on Tuesday reviewed the current structure of supervision at the regulator due to the growing interconnectedness in the Indian financial sector, the banking regulator said in a press release.

“With a view to strengthening the supervision and regulation of commercial banks, urban cooperative banks and Non-Banking Financial Companies, the Board decided to create a specialised supervisory and regulatory cadre within the RBI,” it said.

ET in its edition on May 21 had said that the RBI was expected to overhaul the crucial job of supervision so that the regulator is better equipped in picking up early warning signs. This may involve consolidating the different supervisory activities under a separate division or head, creating a pool of officials for better analysis of the continuous flow of data from banks and finance companies, and involving specialists.


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 RBI central board which is chaired by Governor Shaktikanta Das along with deputy governors and other members of the board also reviewed the current economic situation, global and domestic challenges and various areas of operations of the Reserve Bank.
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