In addition, the RBI is also microprudential regulator as the Banking Regulation Act, 1949 entrusts it with the power to regulate and supervise commercial banks and co-operative banks.
The RBI also regulates  24  De Gregorio, José (2011), “Price and Financial Stability in Modern Central Banking”, Keynote Speech, Governor of the Central Bank of Chile, at the joint Latin American and Caribbean Economic Association (LACEA)-Latin American Chapter of the Econometric Society (LAMES) Conference 2011, University Adolfo Ibáñez, Santiago, November 11.