Overview

The Department regulates Commercial Banks, Co-operative Banks, Non-Banking Financial Companies including Housing Finance Companies and Asset Reconstruction Companies, All India Financial Institutions, namely Export-Import Bank of India (EXIM Bank), National Bank for Agriculture and Rural Development (NABARD), National Housing Bank (NHB), Small Industries Development Bank of India (SIDBI) and National Bank for Financing Infrastructure and Development, and Credit Information Companies, collectively called as “Regulated Entities” (REs), by exercising the powers conferred by the Banking Regulation Act, 1949, the Reserve Bank of India Act, 1934, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the Credit Information Companies (Regulation) Act, 2005 and other relevant laws. The Department carries out, inter alia, the following major functions:

• Licensing/registration of REs, branch expansion, amalgamation, reconstruction, cancellation of license/registration and winding up / liquidation.

• Granting authorisations/approvals for setting up subsidiaries, undertaking new activities, etc.

• Promoting and fostering a sound, multi-faceted and competitive financial system by laying down norms for prudential and conduct regulations, keeping in view the principle of proportionality.

• Consulting and coordinating with other departments of the Reserve Bank, other finance sector regulators, REs, industry bodies and other stakeholders including Centre/State Governments while formulating major regulatory policies.

• Providing appropriate regulatory environment for development of new/emerging/innovative products and services by REs.

• Keeping itself abreast of domestic and global developments and formulating suitable policy responses, suggesting necessary amendments to existing laws and enactment of new legislations.

• Striving to bring the regulatory standards for REs on par with the international standards / international best practices.

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