With a view to having a holistic approach to supervision and regulation of the regulated entities so as to address growing complexities, size and inter-connectedness as also to deal more effectively with potential systemic risk that could arise due to possible supervisory arbitrage and information asymmetry, it has been decided to integrate the supervision function into a unified Department of Supervision and regulatory functions into a unified Department of Regulation with effect from November 01, 2019, according to an RBI said in a release on Friday.
The RBI board had in May 2019 had approved the creation of the separate supervisory and regulatory cadre. “The restructuring of the regulation and supervision function is among a series of steps RBI will take to implement this decision” RBI said.
Currently, supervision is conducted through three separate departments, department of banking supervision, department of non-banking supervision and department of co-operative bank supervision. Similarly, regulation is also carried out by three separate departments.
The restructuring will make supervisory and regulatory process more activity based rather than being segmented purely based on the organizational structure of regulated entities, facilitate more effective consolidated supervision of financial conglomerates among the RBI supervised entities, among others.
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12 Comments on this Story
Hanuman Jayanti302 days ago
RBI = CORRUPT, INEFFICIENT and MISMANAGED group of OFFICERS. No Wonder Modi resorted to Demonetisation..
Tt Tt322 days ago
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Tt Tt322 days ago
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