Central Banking

RBI links supervision with risk profile of banks

INDIA - The Reserve Bank of India (RBI) is planning to roll out a bank-specific risk-based supervision (RBS) system from the last quarter of the financial year 2002-2003.

For the first time, the central bank will follow a carrot and stick formula for implementation of the new supervisory regime. Banks with a better compliance record and a good risk management system will be entitled to an incentive package (read lesser supervisory intervention). Those banks which fail to show improvement in

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