The off-site monitoring of the banking system was also introduced in 1995 as a part of the supervisory strategy of ongoing supervision of the banks, so as to supplement the periodical full-scope on-site bank examinations.
The supervisory rating models (CAMELS and CACS), based on crucial prudential parameters, were also developed by the RBI to provide a summary view of the overall health of the banks. The Prompt Corrective Action (PCA) Framework was put in place to enable timely intervention in case of any incipient stress in a bank.