Amid the recent concerns encircling the Reserve Bank of India’s recent regulatory record, the apex bank is all set to constitute a new vertical for supervision and regulation.
This agenda was set as a part of the refurbish plan to perk up oversight for banks, non-banking finance companies and cooperative banks.
As reported by the Times of India, the new wing will combine the roles undertaken by the Reserve Bank of India’s various departments due to the sudden rise in the financial frauds and the central bank facing the wrath of criticism.
The step is reportedly taken as several financial frauds are getting unnoticed such as the case of Nirav Modi and Mehul Choksi at Punjab National Bank to the collapse of IL&FS and the recent incident at PMC Bank.
The report by the English daily says many in the government has a view that RBI relies on the annual inspections and it does not possess the powers like the I-T department or the Enforcement Directorate to impose search operations and relied on the books and data available with banks.
Based on its inspections, the RBI directs measures to address concerns pertaining to specific loans and practices, or even orders a systemic revamp.