Packing batteries with more punch
Indian researchers are working on cells that can store more energy, last longer
The Reserve Bank of India has decided to operationalise 'unified departments for supervision and regulation' with effect from November 1, 2019, in a bid to strengthen its oversight of commercial banks, urban co-operative banks (UCBs) and non-banking financial companies (NBFCs).
This move comes in the backdrop of scams hitting the financial system in the last couple of years, including the ₹12,600-crore fraudulent letter of undertaking scam at Punjab National Bank; debt default by IL&FS and its arms; the recent revelation of ₹4,335-crore loss being caused to Punjab and Maharashtra Co-operative (PMC) Bank due its alleged single large exposure to the bankrupt HDIL group; and cyber-security related incidents.
According to sources, a unified Department of Supervision (DoS) is being established by merging all supervisory departments — department of banking supervision, department of co-operative banking supervision, and department of non-banking supervision into one department.
Further, a unified Department of Regulation (DoR) is being created by merging all regulatory departments — department of banking regulation, department of co-operative banking regulation, and department of non-banking regulation into one department.
To begin with, the staff attached to the above mentioned supervisory and regulatory departments will continue in DoS and DoR in their existing capacity on an ‘as-is-where-is’ basis. The present sanctioned strength in the existing supervisory and regulatory departments respectively will form the sanctioned strength of the new departments — DoS/DoR.
Underscoring the need to understand the systemic linkage between banks (Scheduled Commercial Banks and cooperative banks) and NBFCs, and their interconnectedness, the central bank, in its latest annual report, said certain functions of supervisory departments are proposed to be integrated.
This is aimed at enabling holistic understanding of systemic risks; understanding linkages, contagion and risk build-up across entities for effective off-site monitoring; and identifying systemic early warning signals based on entity-agnostic thematic studies.
The report also said the central bank will have a dedicated and specialised cadre of officers for ensuring a state-of-the-art supervisory framework for banks. Supervisory focus would be on effective risk discovery and better off-site monitoring through leveraging technology.
The RBI’s regulatory departments currently look after licensing, branch expansion and maintenance of statutory reserves, management and methods of operations; approval for setting up of subsidiaries and undertaking of new activities; and laying down norms for prudential regulation, among others.
The core functions of the supervisory departments currently include planning and undertaking of inspection for supervisory evaluation; off-site surveillance, monitoring/taking action with respect to banks falling under the Prompt Corrective Action framework; dealing with financial sector frauds; and framing policy and supervising the cyber-security infrastructure and operations of regulated entities.
Indian researchers are working on cells that can store more energy, last longer
To fix a broken bone, doctors often harvest another bone from the patient’s body or from someone else. It ...
Superconductors from IIScScientists at IISc Bangalore have invented a device with a nanocrystal structure ...
Engineering and construction giant L&T has won a licence from the Council of Scientific & Industrial ...
Option price falls more than it rises for the same change in underlying
A long-term vacation here is worth a check-in
The fund delivered a return of 31.5% in 2020 compared with the category’s 15.5%
Care Health Insurance’s new rider offers no great benefit. We review its pros and cons
In these isolated times when people yearn for a slice of the familiar, amateur and professional chefs are ...
Given the events in Washington DC on January 6, this week’s quiz is all about buildings that house or housed ...
While good writing wars against the cliché, television gives it a natural home
India is ready with two vaccines to beat the deadliest virus of recent times. The immunisation drive, however, ...
Digital is becoming dominant media, but are companies and their ad agencies transforming fast enough to make a ...
Slow Network, promoted by journalist-lyricist Neelesh Misra, pushes rural products and experiences
How marketers can use the traditional exchange of festive wishes meaningfully
For Fortune, a brand celebrating its 20th anniversary, it was a rude shock to become the butt of social media ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor