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    'RBI is working on strengthening its supervisory skills'

    Synopsis

    The central bank is in the process of setting up a college of Supervisors, in addition to an internal supervisory research and analysis wing. The move is significant in the wake of criticism that the central bank received for not anticipating the crisis at the co-operative bank- PMC Bank. The RBI is working with the Govt to amend the Act governing co-operative banks.

    RBI governor Saktikanta Das (File Pic)
    MUMBAI: Reserve Bank of India is working on strengthening its supervisory skills among regulatory and supervisory staff, according to RBI governor Shaktikanta Das in a speech in Ahmedabad.

    The central bank is in the process of setting up a college of Supervisors, in addition to an internal supervisory research and analysis wing. The move is significant in the wake of criticism that the central bank received for not anticipating the crisis at the co-operative bank- PMC Bank

    “We are in the process of setting up a College of Supervisors to augment and reinforce supervisory skills among regulatory and supervisory staff” RBI governor Saktikanta Das said at an Economics Conference, at Amrut Mody School of Management, Ahmedabad University. “In addition, an internal supervisory research and analysis wing is being created to supplement and support regulatory and supervisory activities”

    The recent unearthing of fraud at PMC Bank has brought up issues relating to their governance, prudent internal control mechanisms, and adequacy of checks and balances to the forefront.

    In a bid to strengthen oversight of commercial banks, co-operative banks and NBFCs, the RBI has created a unified department of supervision (DoS) and a unified department of regulation (DoR) with effect from November 1, 2019.

    The Reserve Bank is working with the Government to amend the Act governing co-operative banks. “We have suggested several legislative changes to the Central Government for better regulation and supervision of UCBs” Das said. “ On our part, we are reviewing the existing architecture of regulation and supervision of UCBs and shall carry out necessary changes in sync with the evolving requirements”.

    The proposed national level Umbrella Organisation (UO) is expected to provide liquidity and capital support to member co-operative banks, and will therefore contribute to the strength and vibrancy of the sector.
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

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    6 Comments on this Story

    Chandran Krishnan Peechulli262 days ago
    Could RBI not digest my constructive criticAL COMMENTS GIVEN EARLIER IN THE NATIONAL INTEREST. WHY NOT INCLUDED IN COMMENTS RECEIVED? FELLOW CHARTERED ENGINEER AND CORPORATE LAWYER.
    Chandran Krishnan Peechulli262 days ago
    RBI Chennai Ombudsman Office is stupid and not responsive with any commitment after registering the complaint and when reminded send that they intend closing the complaint illogically without a convincing answer in this modern innovative age. High time the Government Offices take the assistance of OUT-SOURCING. * NON COMMITTAL, NON-ACCOUNTABLE IN THE FINANCIAL SECTOR NOT REALIZING THE VALUE OF THE PRECIOUS TIME. BEING IRRESPONSIBLE
    Ramesh Shah266 days ago
    HAVE YOURSELF DECIDED OF YOUR OWN OR IN CONSULTATIONS WITH THE EXPERT THE PM..... THIS WAS THE NECESSITY THE DAY YOURSELF JOINED THE RBI......
    The Economic Times