Mumbai, Nov. 20 (PTI): The Reserve Bank of India today appointed a standing advisory committee on financial regulation to be headed by its deputy governor K. J. Udeshi. This is in line with the announcement made by the central bank in the mid-term review.
The committee would examine issues referred to it and advise the RBI on regulations on an on-going basis covering banks, non-banking financial institutions and other market participants, in addition to existing channels of consultations, the RBI said in a release here.
The committee, which would meet once in two months and initially function for two years from the date of its first meeting, would review current regulatory regime with a view to help the apex bank in simplifying and rationalising it, in particular to move towards clearer as well as unambiguous regulatory prescriptions and enhance internal control systems, it said.
It would consider existing regulatory practices on prudential norms and disclosure standards for banks and non-banks regulated by the RBI and recommend measures for progressive alignment with international best practices consistent with India’s needs.
The RBI said the committee would advise on the changes needed from time to time in regulatory framework in the light of the emerging diversification of business mix of financial services industry. Apart from suggesting measures for strengthening corporate governance, the committee would also outline steps to be taken by the central bank and banking entities in context of Basel II norms, it added.
The committee would help analyse, as appropriate, harmonisation of regulatory and prudential norms for the various entities in the financial services sector.