Board for Financial Supervision
The Board of Financial Supervision (BFS) was constituted in November 1994 as a committee of the Central Board of Directors. Its objective is to undertake consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies. The RBI carries out its functions related to financial supervision under the guidance of BFS. It is chaired by RBI Governor, who is supported 4 co-opted directors as members for a 2 year term. One of the deputy governors of RBI serves as Vice Chairman BFS. BFS meets typically every month.
BFS Regulates and supervises commercial banks, Non-Banking Finance Companies (NBFCs), development finance institutions, urban co-operative banks and primary dealers. Some typical functions are:
- Restructuring of the system of bank inspections
- Introduction of off-site surveillance,
- Strengthening of the role of statutory auditors and
- Strengthening of the internal defences of supervised institutions.