The programme also comes in the context of the proposed seminal change in the RBI’s banking supervision methodology and process this year. I refer to the introduction of the risk based supervision covering nearly half of the commercial banks in the first phase from the ensuing cycle onwards.
Focus on risks and tailoring our supervisory stance based on the specific risks in a financial institution would be the cornerstone of the new approach towards banking supervision. In this milieu, there is a need for an enhanced understanding of the major risk categories individually as well from a collective perspective in terms of the interactions among the major risks.