RBI forms Academic Advisory Council for Supervisory College
The Reserve Bank of India recently formed an advisory council under former deputy governor N S Vishwanathan to advise the director of the central bank on supervisory colleges.
- What is the role of the council?
- What is RBI Supervisory College?
- Why did RBI establish Supervisory Colleges?
- To which banks were the Supervisory College established?
- What are the main objectives of Supervisory Colleges?
- Why is it important to promote international banking?
- Why is Banking Supervision needed?
- What forced RBI to launch Supervisory Colleges?
What is the role of the council?
- The council will identify areas where upskilling and building are required in supervisory colleges.
- Also, the council will plan and develop curricula of all programmes and benchmark the programmes with international standards and best practices.
- The council will develop appropriate teaching methods. The council will also benchmark the programmes with the international standards and improve the teaching methods.
What is RBI Supervisory College?
The Reserve Bank of India Supervisory Colleges were introduced to reinforce supervisory skills among its regulatory bodies. This was done to facilitate unified and focused training inputs to the supervision staffs.
Why did RBI establish Supervisory Colleges?
The Reserve Bank of India established supervisory colleges to monitor Indian banks abroad.
To which banks were the Supervisory College established?
The Supervisory colleges were established for six banks namely State Bank of India, ICICI Bank, Bank of Baroda, Axis Bank, Bank of India and Punjab National Bank. These banks have significant international presence.
What are the main objectives of Supervisory Colleges?
The main objectives of Supervisory colleges are to improve understanding of risk profile of the banking group, to enhance information exchange and cooperation among supervisors and facilitate effective supervision of internationally active banks.
Why is it important to promote international banking?
- The International Banks provide more protection during economic shifts.
- They minimize tax obligation.
- They provide broader access to investment opportunities.
- They enjoy competitive currency exchange rates.
- They ease access to accounts.
Why is Banking Supervision needed?
The Banking Supervision is needed to ensure safety of the banking system. It will help the banks to reduce their risk taking.
What forced RBI to launch Supervisory Colleges?
India launched the Supervisory colleges after the PMC Bank scam. The Supervisory colleges were launched to prevent PMC Bank scam scenarios in the future.
Category: Economy & Banking Current Affairs