Returns, Inspections, Winding Up

 CAMEL Model

·         Capital Adequacy

·         Asset Quality

·         Management

·         Earning appraisal

·         Liquidity and

·         Systems and Controls

OSMOS – Off-site Monitoring and Surveillance

RBI ensures that banks operate within set norms by conducting on-site inspections and off-site monitoring.

On-site inspection is followed by Supervisory Letter

Quarterly on-site visits are undertaken in respect of newly licensed banks during first year.

Frequency of First Tranche Returns(March 1996) is monthly / quarterly / half-yearly.

Second Tranche of OSMOS returns cover Liquidity and Interest rate exposures were introduced in July 1999

Under Section 37 of the BR Act, a moratorium order can be issued by the High Court for a maximum total period of Six Months.

When a banking company is placed under moratorium under Section 45 of BR Act, the RBI must prepare a scheme for reconstruction of the company or amalgamation with any other bank.

An order for winding up a banking company can be issued by The High Court.