Thirty large banks have informed the Reserve Bank of India that they are ready to switch to a new uniform risk-based supervision system from April 1 , which will enable them to assess their risks in real-time .
“The risk-based supervision system is likely to be implemented from April 1. The RBI has decided to implement it in 30 large banks. These banks were called for a meeting today with the RBI,” Indian Banks Association Chairman and PNB chief K.R. Kamath told reporters here on Thursday.
The new system will bring in a uniform methodology to check the health of the banking system, as against the CAMESL framework used at present—which follows a compliance-based and transaction-testing approach.
When asked about the changes the banks will have to bring about, Mr. Kamath said, “There are many ambiguities today with banks reporting so many things with their own definitions. The idea is to see that you have one uniform norm through which everybody can report.”
Others who participated in the meeting included S.S. Mundhra of Bank of Baroda, Ajai Kumar of Corporation Bank, Shyam Srinivasan of Federal Bank, ICICI Bank head Chandra Kochhar, HDFC Bank’s Aditya Puri, B.A. Prabhakar from Andhra Bank and French lender BNP Paribas’ Jacques Michel, among others.