 "Lack of supervision It would have been much better if the RBI's central board had highlighted where the existing departments fell short and then suggested a remedy")
During the RBI board meeting held in May 2019, the central bank announced creating a specialised supervisory and regulatory cadre. The board noted the growing complexities and interconnectedness of the financial sector and wished to strengthen the regulation and supervision of commercial banks, urban cooperative banks and non-banking financial companies (NBFCs). In the June 2019 monetary policy, RBI Governor Shaktikanta Das termed this as a “major decision”.
This is welcome news but what is not clear is the additional roles this cadre will play. The RBI already has two separate departments for this purpose: Department of Banking Regulation (DBR) and Department
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