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RBI establishes supervisory colleges for SBI, ICICI

This is the first time RBI has established supervisory colleges for the banks

Krishna Pophale  |  Mumbai 

The Reserve Bank of India (RBI) has set up the for cross border cooperation for the supervision of of India (SBI) and Bank. Both the have substantial cross border presence and thus were chosen for the supervisory college, the said in a statement.

While is the largest bank in the country with maximum foreign officers among Indian banks, Bank is the largest private sector lender, which also have a significant presence abroad. will have nine host country supervisors while Bank will have seven host country supervisors.

This is the first time has established supervisory colleges for the

The concept of was put forward in the Basel Committee for Banking Supervision (BCBS) October 2010 document named good practice principles on supervisory colleges.

Supervisory colleges have evolved the world over as an important component of effective supervisory oversight of an international banking group. This mechanism was developed with the aim of reducing supervisory overlap and filling in supervisory gaps for better supervisory co-operation enunciated in Basel-2 framework, the banking regulator said.

India doesn’t have any systemically important (SIBs), we decided to benchmark India with the best practices across the globe and establish two supervisory colleges for and Bank, the said.

The first meeting of supervisory colleges for was held on December 3 and for Bank on December 4 in Mumbai.

KC Charkrabarty, deputy governor, said: “Supervisory colleges will become a key tool of consolidated supervision particularly considering the ever expanding footprint of Indian abroad.”

Pratip Chaudhuri, chairman, and Chanda Kochhar, managing director and CEO, Bank led the teams of the respective in the first meeting.

First Published: Tue, December 04 2012. 20:34 IST