INSUBCONTINENT EXCLUSIVE:
Reserve Bank of India reorganised its regulatory and supervisory departments as a part of its initiative to have a holistic approach towards
supervision and regulation amidst growing complexities and inter connectedness in the financial system
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
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.