The Department of Supervision carries out the mandate of supervising all scheduled commercial banks (excluding Regional Rural Banks), Local Area Banks, Payments Banks, Small Finance Banks, Credit Information Companies, Primary Urban Cooperative Banks, Non-Banking Financial Companies, Asset Reconstruction Companies, Factoring companies and All India Financial Institutions (AIFIs) within the legal framework of the Banking Regulation Act, 1949, the Reserve Bank of India Act, 1934, the Credit Information Companies (Regulation) Act, 2005, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and Factoring Regulation Act, 2011. Although regulated by RBI, the Housing Finance Companies (HFCs) and various Rural Cooperative Banks are not supervised by RBI.
Core functions
📌 Oversight on the safety and soundness of the Supervised Entities (SEs) including review of their solvency position and their regulatory compliance status within the provisions of relevant statutes;
📌 Planning and undertaking various supervisory processes and procedures, including inspection, under various models / standards adopted in respect of such SEs of different constitution, business and size. The inspections / scrutinies undertaken by RBI do not amount to audit or investigations of the SEs;
📌 Off-site monitoring of SEs through returns, data etc. and preparing reviews, analysis of balance sheet of banks/ AIFIs; Managing the Central Repository of Information on Large Credit (CRILC) database; Carrying out various analyses on the banking system reviews;
📌 Formulating Supervisory policy consistent with the existing supervisory stance; Monitoring/ taking action with respect to banks falling under the revised Prompt Corrective Action (PCA) framework;
📌 Maintaining a centralised registry of financial sector frauds and attending to the complaints with supervisory implications received against SEs from public, banks, Government, etc.;
📌 Determining the criteria for the appointment of statutory auditors and special auditors and assessing audit performance and disclosure practices;
📌 Framing Policy and supervising the cyber-security infrastructure and operations of SEs; analysing reports on cyber security incidents and taking necessary follow-up action including issue of advisories/ alerts/ circulars;
📌 Serving as the secretariat for the Board for Financial Supervision (BFS) and the Sub-Committee of BFS;
📌 Serving as the Secretariat to the Inter-Regulatory Forum (IRF), which was set up in 2012 under the aegis of the Financial Sector Development Council Sub-Committee (FSDC-SC) and functions as college of domestic supervisors viz. RBI, SEBI, IRDA and PFRDA to oversee the coordinated supervision of financial conglomerates (FCs);
📌 Co-ordinating inter-agency forums such as State Level Coordination Committee (SLCC), Task Force on Urban Co-operative Banks (TAFCUB), etc.; and
📌 Strengthening cross-border co-operation among supervisors by engaging with supervisors of other jurisdictions through Memorandum of Understanding (MoU)/ Letter of Co-operation (LoC) for sharing of supervisory information.
RBI Compliance Group
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