RBI reinforces threat-based governance of the banks, NBFCs

The Reserve Bank Of India has decided to look after and build up the danger-Based Supervision of the banking sector with a scene to allow the financial sector people to conversate about the emerging challenges. The RBI utilises the RBS model and the qualitative and quantitative elements to look after the banks, urban cooperative banks, non-banking financial companies, and all of the other India’s financial organisations.

Rbi said, “It is recently forced to look after the supervisory processes and mechanism for making the RBS model more vigorous and competent enough for looking after the upcoming challenges while removing the inconsistencies if any” during the invitation to bids from technical professionals to move ahead with the process for banks.

“The observatory functions related to the commercial banks, UCBs and NBFCs are now fused, with the motive of coordinating the supervisory approach rested on the activities of the SEs, supervised entities,” says the Expression of Interest (EOI) in the case of UCBs and NBFCs for ‘Consultant for Review of Supervisory Models.’

The RBI tackles the supervision of SEs with the motive of checking out their financial soundness, liquidness, property quality, operational viability to protect the depositors’ interests and financial stability. The Reserve Bank looks after the supervision of the banks through offsite observation of the banks and an annual inspection of the banks wherever applicable.

For UCBs and NBFCs, it starts the observation through a blend of offsite monitoring and on-site survey, where necessary or applicable. The documentation submitted by the applicants about EOI would be looked after by a technical group of advisory consisting of the RBI’s senior officers.

The consultant will work in close coordination with RBI’s Department of Supervision officers in Mumbai, says the EOI.


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