Some of these AIFIs in turn regulate and/or supervise other institutions in the financial sector, viz., Regional Rural Banks (RRBs) and Central and State Cooperative Banks are supervised by the RBI through National Bank for Agriculture and Rural Development (NABARD); State Financial Corporations (SFCs) by Industrial Development Bank of India (IDBI) (to be transferred to SIDBI) and Housing Finance Companies by National Housing Bank (NHB).
The Board for Financial Supervision, which operates as a Committee of the Central Board of Directors of the RBI functions as an oversight supervisory body in respect of banks, NBFCs and AIFIs. It may be noted that while NBFCs have been brought under a firm regulatory framework through legal enactments, supervisory role in respect of AIFIs is of more recent origin.