The Reserve Bank of India is creating a specialized supervisory and regulatory structure for commercial banks, urban cooperative banks and NBFCs. The central board of the RBI has approved the proposal for such a structure, based on the recommendations of an internal committee. RBI said in a press release the board reviewed the present structure of supervision in RBI in the context of the growing diversity, complexities and interconnectedness within the Indian financial sector and 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 specialized supervisory and regulatory cadre within the RBI. The internal committee was headed by Rosemary Sebastian, ED in charge of NBFC supervision. This proposal would involve consolidating the different supervisory and regulatory activities and resources under a separate division, and also hiring external experts for the function. The central bank is also looking to introduce risk-based supervision for NBFCs and urban cooperative banks.
