Creation of a ’Specialized Supervisory and Regulatory Cadre (Download PDF)

()

Download PDF of This Page (Size: 157.53 K)

The Reserve Bank of India’s (RBI’s) Central Board has decided to create a ‘Specialized Supervisory and Regulatory Cadre’ within the RBI. Decision to create a Specialized Supervisory and Regulatory Cadre within the RBI was taken at the recent two-day meeting of Reserve Bank of India’ Central Board.

This 576th Board Meeting was held under the chairmanship of RBI Governor in Chennai.

This is image show in RBI Board Meet Outcome

This is Image Show in RBI Board Meet Outcome

This is image show in RBI Board Meet Outcome

Overview

  • It reviewed the current economic situation, global and domestic challenges and various areas of operations of RBI.

  • It reviewed the present structure of supervision in RBI in light of growing complexities, diversity and interconnections within the Indian financial sector.

  • It discussed issues related to currency management and Banker to Government functions of the RBI.

  • It discussed the Medium Term Strategy document, which covers RBI’s Mission and Vision Statements.

Objectives & Significance

  • The cadre creation came with a view of strengthening the supervision and regulation of commercial banks, urban cooperative banks and Non-Banking Financial Companies (NBFCs).

  • The decision for creating an additional oversight mechanism was taken in the wake of recent NBFC crisis such as large-scale defaults by IL&FS in 2018 (which caused on-going liquidity crunch in banking system)

  • To counter failures by credit rating agencies to flag risks, alleged lapses by auditors and in asset quality by big banks.

  • Supervision cadre would supplement RBI to be better equipped in picking up early warning signs.

- Published/Last Modified on: August 7, 2019

Economy, Committees/Govt. Bodies

Monthy-updated, fully-solved, large current affairs-2019 question bank(more than 2000 problems): Quickly cover most-important current-affairs questions with pointwise explanations especially designed for IAS, NTA-NET, Bank-PO and other competetive exams.