Over the past few years, the Reserve Bank has significantly enhanced its supervisory systems, transitioning from an entity-based approach to a more thematic and activity-based one. Structural changes have been implemented in the Supervisory architecture to improve agility, bring flexibility, and enhance specialization.
A unified and harmonized supervisory approach has been adopted for commercial banks, nonbanking financial companies (NBFCs) and urban cooperative banks (UCBs), with greater emphasis on identifying and addressing the root causes of identified vulnerabilities. 13. To enhance the effectiveness of supervisory frameworks, the Reserve Bank has employed various analytical tools.