How RBI can strengthen regulation and supervision

The upgrade of the offsite surveillance system is welcome, but it should not have coincided with the dilution of the rigour of onsite examination

After M Rajeshwar Rao took over as its fourth deputy governor last week, the Reserve Bank of India (RBI) reshuffled the portfolios of its deputy governors. Rao will oversee regulations and risk monitoring; supervision will remain with M K Jain; M D Patra will continue to have the monetary policy department under him; and B P Kanungo, the most senior of the four, will have currency, foreign exchange and debt management, information technology and payments and settlements in his portfolio.

Meanwhile, we have not heard the latest on the Indian central bank’s plan to create a specialised supervisory and regulatory cadre.