30 banks to switch to risk-based supervision

The new system will bring in uniform methodology to check health of the banking system

Thirty large banks have informed the Reserve Bank of India they are ready to switch to the new uniform risk-based supervision system from April 1, which will enable them to assess their risks on a real-time basis. The new system will bring in a uniform methodology to check the health of the banking system, as against the CAMESL framework used at present which follows a compliance-based and transaction-testing approach.