The Discussion Paper on the subject released by the RBI in January 1999 observed that the question whether the supervisory responsibility should lie solely with the BFS or with a separate supervisory system to be devised for the purpose would need to be considered in due course.
The Report of the Committee on Banking Sector Reforms, (April 1998) (Chairman: M. Narasimham) recommended restructuring of the existing BFS. The Committee recommended that an integrated system of regulation and supervision be put in place to regulate and supervise the activities of the banks, financial institutions and NBFCs.