Illustratively, with a view to enhancing further transparency, all cases of penalty imposed by the RBI on the banks as also directions issued on specific matters, including those arising out of inspection, are to be placed in the public domain. Such proactive disclosures by the Regulator are expected to have a salutary effect on the functioning of the banking system.
In addition to the above, any penal action taken against any foreign bank branches in India are also shared with the Home country regulator with a view to enhance the quality of consolidated supervision. These initiatives will be an important supplement to the Pillar 3 disclosures prescribed under Basel II, which in our opinion will further the cause of a stable banking system.