The different departments responsible for supervision and regulation of banks, non-banks and co-operative banks have been unified by the Reserve Bank of India (RBI) under the Department of Supervision and Department of Regulation, with effect from November 1.
Earlier, financial sector supervision was undertaken through three separate departments — the Department of banking supervision, Department of non-banking supervision and Department of co-operative bank supervision. Similarly, the regulatory powers of the RBI over banks, NBFCs and cooperative banks were carried out through three separate departments — the Department of banking regulation, Department of non-banking regulation and Department of cooperative banking regulation.
The RBI said this move will make supervisory and regulatory process more activity-based rather than being segmented purely based on the organisational structure of regulated entities. This will also enable more effective and consolidated supervision of financial conglomerates under RBI’s purview.
According to the regulator, the restructuring will give categorised supervisory approach to all the RBI supervised entities linked to their size and complexity.