The Indian banking system has a modest leverage which provides comfort. The RBI has also been enhancing and fine-tuning its supervisory processes on an ongoing basis and based on the evolving financial scenario. A revised framework for monitoring of financial conglomerates has been rolled out since 2009.
The Financial Stability and Development Council (FSDC) has also been activated under the aegis of the Government of India for system level monitoring of build-up of risks and instability, specifically, risks emanating from the Systemically Important Financial Institutions (SIFIs) including the financial conglomerates. This is also expected to enhance coordination among the financial regulators.