RBI likely to get US Federal Reserve-like powers of supervision

The Reserve Bank of India (RBI) may get more powers before large corporate and industrial houses are permitted to promote banks. This is to help it deal with connected lending and exposures between the banks and other financial and non-financial group entities, or consolidated supervision.

This will be akin to the US Federal Reserve Act. And, the RBI is to examine the necessary legal provisions that may be required to deal with all concerns in this regard.

The stage may now be set for another tweak to the central bank’s specialised supervisory and regulatory cadre (SSRC). The decision to create the SSRC