IMF and World Bank commend RBI for strengthening banking supervision system

The IMF and World Bank have commended the Reserve Bank of India for the remarkable progress in strengthening banking supervision system. The multilateral agencies have released two Detailed Assessment Reports relating to the 2017 India Financial Sector Assessment Programme. 

The Report providing ‘Detailed Assessment of Observance-Basel Core Principles noted that the supervision and regulation by the Reserve Bank remain strong and have improved in recent years. Most of the Basel III framework has been implemented and cooperation arrangements are now firmly in place. 

The report also



said, the asset quality review and the strengthening of prudential regulations in 2015 testify to the authorities commitment to transparency and a more accurate recognition of banking risks. It also acknowledged that banking reforms, including the Indradhanush Plan for revitalizing the Public Sector Banks and the Bank Board Bureaus have helped usher in an era of transparency and improved discipline and will go a long way in resolving the problem of bad loans in India.

India has welcomed these Assessment Reports by the joint IMF-World Bank team conforming to the highest international standards.