Functions

• The Department is entrusted with the responsibility of regulation of commercial banks under the provisions contained in Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934 and other related statutes and development of banking policies. This includes the monitoring of banks maintaining the prescribed cash and statutory liquidity reserves, appointment of chief executive officers and certain other operational matters as provided in the statute.

• The Department works towards promoting and fostering a sound and competitive banking system by laying down prudential regulations relating to capital adequacy, income recognition, asset classification, provisioning for loan and other losses, investment valuation, accounting and disclosure standards, asset-liability management and risk management systems.

• The other important activities of the Department include licensing of new banks, expansion of foreign and domestic banks, approval for setting up of subsidiaries and undertaking new activities by commercial banks and follow-up for rehabilitation of weak banks.

• Corporate Governance

• Discussion paper on Exposure Norms

• Asset Reconstruction Company

• Corporate debt restructuring

• Amendment of Banking Regulation Act

• Setting up international accounting standards for banks

• Credit Information Bureau

• New Capital Adequacy Framework

• Restructuring of weak banks

• Improving prudential norms in keeping with international best practices

• Legal reforms

• Entry of banks into insurance

• Regulation for e-banking

• Licensing norm for entry of new banks in private sector

• Reduction of government equity in nationalised banks

• Improvement in bank transparency