The Reserve Bank has underlined the need for closer supervision of overseas offices of banks amid increasing cross-border activity of certain Indian lenders.
Speaking at meetings of the Supervisory Colleges of Bank of Baroda and Bank of India, RBI Deputy Governor S S Mundra said effective collaboration with banking supervisory authorities is one of the main tools adopted by RBI in respect of cross-border supervision.
The Deputy Governor stressed on the need for ongoing collaboration among the supervisory authorities, which should extend beyond the physical meetings of the Supervisory Colleges.
RBI and the various host supervisors deliberated on many issues of mutual concern at the Colleges and the host supervisors shared their perspectives on the presence and operations of Bank of Baroda and Bank of India in overseas jurisdictions.
The meetings were held on July 25 and 26 here.
RBI has set up, as part of supervision of cross-border operations of Indian banks abroad, Supervisory Colleges for six major banks -- Bank of India, Bank of Baroda, Bank of India, ICICI Bank, Axis Bank and Punjab National Bank -- which have significant international presence.
The main objectives of a Supervisory College are to enhance information exchange and co-operation among supervisors to improve understanding of the risk profile of the banking group and thereby facilitate more effective supervision of internationally active banks.
