RBI Reorganises Regulation and Supervision Departments

Moneylife Digital Team 01 November 2019

The Reserve Bank of India (RBI) on Friday reorganised its regulatory and supervisory departments to make these processes more activity based instead of being segmented in the structure. With this, the central bank has unified six banking, non-banking and cooperative banking departments that were individually conducting supervisory and regulatory functions in to two departments.

In a release, RBI says, "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 from 1 November 2019."

At present, supervision of financial sector entities is undertaken through three separate departments like department of banking supervision, department of non-banking supervision and department of co-operative bank supervision. Similarly, regulatory functions relating to financial sector entities are carried out through three separate departments, such as department of banking regulation, department of non-banking regulation and department of cooperative banking regulation.

Comments

User

manojkamrarti

7 years ago

These departments looks impressive in papers but actually no clearcut liabilities have been defined for their carelessness resulting in everyday big scams. Bikaner urban cooperative bank never submitted any return for two decades and despite that dcbs never penalised such defaulter. So rather than unification, clear responsiblities of the staff need to b spelt out in case of omission to penalise defaulter banks.

All deptt seem to be working in unison in carelessness. Annual reports published by economic and statistics deptt never discloses non-reporting banks or data based on how many reporting banks.

So such unification will have hardly any effect over decades long inertia.

Dr.Dhananjaya Bhupathi

7 years ago

HOW ABOUT REORGANIZING PMO & UNION FINANCE MINISTRY BY SHEDDING THE INHERITED DUDS OF ADHOCISM & GIVING SCOPE TO PLACE VISIONARIES ON PAR WITH PM"S VISION?