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Reserve Bank of India made change the rules of bank supervision

USNMix Report: The rules of banks supervision will change from tomorrow,
RBI made this change.

After receiving complaints of disturbances in the functioning of banks and NBFC, a new step is being taken by the Reserve Bank of India (RBI). Under the RBI's new move, monitoring and regulation on banks will now be better than before. There will be a department in RBI itself for the supervision of banks under the rule which comes into effect from 1 November 2019. This department will supervise all banks and NBFC from time to time.

Work will improve by creating a separate department
Apart from banking, NBFC, cooperative banks will also be supervised under its department. Banking, NBFC and Co-operatives have their own supervisory departments under the current system. 
Reserve Bank of India made change the rules of bank supervision
But now there will be a department of banking, NBFC and co-operative for regulation also under the new system. The functioning of banks will improve by having a separate department for regulation and supervision.

The other advantage of this is that shared experience of each other will lead to better functioning in banks, NBFC and co-operatives. This step has been taken by RBI after complaints of irregularities in the functioning of NBFC and many banks.


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