The Reserve Bank of India (RBI) board, which met in New Delhi, finalised a three- year roadmap to improve regulation and supervision, among other functions of the central bank.
It is a three-year road map for medium term objective to be achieved for improving regulation, supervision of the central bank
This medium term strategy — named Utkarsh 2022 — is in line with the global central banks plan to strengthen the regulatory and supervisory mechanism
It is a roadmap to improve regulation and supervision, currency management and payment system etc.
An internal committee was formed, which was anchored by outgoing Deputy Governor Viral Acharya, to identify issues that needed to be addressed over the next three years.
Worldwide, all central banks strengthen the regulatory and supervisory mechanism, everybody is formulating a long-term plan and a medium-term plan. So, the RBI has also decided it will formulate a pragramme to outline what is to be achieved in the next three years.
The idea is that the central bank plays a proactive role and takes preemptive action to avoid any crisis highlighting the IL&FS debt default issue and the crisis of confidence the non-banking financial sector faced in the aftermath.
Further,the board has also approved the RBI’s budget for the July 2019 to June 2020 period.
The objective of the policy is to improve regulation and supervision of the central bank.