These models link capital to risk-taking and help banking organizations compare risks and returns across diverse business lines and locations. Both robust risk management and strong capital positions are critical to ensure that individual banking organizations operate in a safe and sound manner that enhances the stability of the financial system.
As the distinguished audience is aware, while NABARD supervises the co-operative credit institutions, Reserve Bank regulates them. This supervisory and regulatory framework involves RBI framing and issuing regulatory instructions and guidelines and NABARD  2  BIS central bankers’ speeches  examining their actual compliance during inspection. Currently, these regulatory instructions and guidelines are scattered across individual circulars containing them.