RBI plans to set up a ‘college of supervision’ (BL 27.12.19)
To ensure that irregularities in the financial sector, which are increasingly becoming complex and interconnected, do not escape the attention of its inspectors, the Reserve Bank of India is planning to set up a ‘college of supervision’. “Skill imparting is not a one-time affair. They (inspectors) have to be re-skilled from time-to-time because things are evolving, things are changing, becoming more complex. So, more emphasis can be given on improvement of skills. “...And, therefore, for better training, we are creating a college of supervision. We are also creating within the Department of Supervision and Regulation, an internal research and analysis group,” said RBI Governor Shaktikanta Das, during an interaction. The proposed college will improve the skillset of inspectors so that when they assess risk in regulated entities such as banks, non-banking finance companies, urban co-operative banks and payment system providers, they are mindful of the lurking dangers. This move comes in the backdrop of the letter of undertaking scam at Punjab National Bank, the IL&FS group and DHFL defaulting on debt servicing, and Punjab and Maharashtra Co-operative Bank being brought to its knees due to a large irregular exposure to a real estate company. Post these developments, the RBI created a unified Department of Supervision and a unified Department of Regulation. Earlier, there were three separate supervision departments (one each for banking, non-banking and co-operative banks) and three separate regulation departments (one each for banking, banking and co-operative banks).
To ensure that irregularities in the financial sector, which are increasingly becoming complex and interconnected, do not escape the attention of its inspectors, the Reserve Bank of India is planning to set up a ‘college of supervision’. “Skill imparting is not a one-time affair. They (inspectors) have to be re-skilled from time-to-time because things are evolving, things are changing, becoming more complex. So, more emphasis can be given on improvement of skills. “...And, therefore, for better training, we are creating a college of supervision. We are also creating within the Department of Supervision and Regulation, an internal research and analysis group,” said RBI Governor Shaktikanta Das, during an interaction. The proposed college will improve the skillset of inspectors so that when they assess risk in regulated entities such as banks, non-banking finance companies, urban co-operative banks and payment system providers, they are mindful of the lurking dangers. This move comes in the backdrop of the letter of undertaking scam at Punjab National Bank, the IL&FS group and DHFL defaulting on debt servicing, and Punjab and Maharashtra Co-operative Bank being brought to its knees due to a large irregular exposure to a real estate company. Post these developments, the RBI created a unified Department of Supervision and a unified Department of Regulation. Earlier, there were three separate supervision departments (one each for banking, non-banking and co-operative banks) and three separate regulation departments (one each for banking, banking and co-operative banks).
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