RBI sets up supervisory college for SBI and ICICI Bank

The Reserve Bank of India (RBI) has set up a supervisory college for State Bank of India (SBI) and ICICI Bank Ltd, in order to deal with supervisory issues revolving around the banks and establish a cooperation mechanism for cross-border supervision.

For SBI, there are nine host country supervisors — Bangladesh Bank, Central Bank of Bahrain, National Bank of Belgium, Dubai Financial Services Authority, Financial Services Authority (London), Federal Financial Services Authority (BaFin), Bank of Mauritius, Nepal Rastra Bank and Monetary Authority of Singapore. ICICI Bank has seven host country supervisors — Central Bank of Bahrain, National Bank of Belgium, Dubai Financial Services Authority, Financial Services Authority (London), Federal Financial Services Authority, Bank of Russia, Monetary Authority of Singapore.

At a meeting of the host country supervisors, RBI deputy governor KC Chakrabarty said the college will become a key tool of consolidated supervision particularly considering the ever expanding footprint of Indian banks abroad.

“Though India does not have any Systemically Important Banks (SIBs), with a view to benchmarking India with the best practices across the globe and in its capacity as the home country supervisor, the RBI decided to establish a supervisory college each for SBI and ICICI Bank as both banks have vast expanse of overseas operations spreading across many supervisory jurisdictions,” the RBI said.