The Reserve Bank of India has consolidated different departments involved in the supervision and regulation of banks, non-banks and cooperative banks under the department of supervision and department of regulation from 1 November. Financial sector supervision was being done by 3 separate departments – the department of banking supervision, department of non-banking supervision and department of cooperative bank supervision. Similarly, the regulatory powers of the RBI over banks, NBFCs and cooperative banks were carried out through 3 separate departments – the department of banking regulation, the department of non-banking regulation and the department of cooperative banking regulation. RBI said the consolidation will make supervisory and regulatory functions of the bank will be more activity based rather than being segmented purely based on the organizational structure of regulated entities. This will also enable more effective and consolidated supervision of financial conglomerates under RBI’s purview.
