The dependence on off-site surveillance and on-site supervision by state agencies in respect of small (unit) banks, in addition to lowering the supervisory burden of the small entities, would also provide increased flexibility to the RBI to deploy its supervisory resources to the larger and more risky banks.
Emphasis on corporate governance and professionalism It is being increasingly highlighted that depositors are the most important stakeholders in a bank and therefore inclusion of depositors as shareholders, particularly the large depositors, is an agenda that is being actively pursued independently as also through coordination with state governments.