Recently, Reserve Bank of India-RBI has issued some guidelines for appointment to its ‘Special Supervisory and Regulatory Cadre-SSRC‘.
Special Supervisory and Regulatory Cadre-SSRC:
- RBI has decided to fill 35% of the posts of Special Supervisory and Regulatory cadre through open recruitment, while the remaining 65% posts will be filled through internal promotion.
- The Central Board of RBI, during a meeting on 21 May 2019, decided to create a special supervisory and regulatory cadre under RBI to strengthen the supervision and regulation of commercial, urban cooperative banks and non-banking financial companies.
- On November 1, 2019, RBI decided to restructure its regulation and supervision departments.
- Through this, the regulatory departments of banking, non-banking and co-operative banks were merged.
- As a result, the SRCC is the only supervisory department that oversees banks, NBFCs and cooperative banks and acts as the regulator for all three.
What are the current guidelines of RBI?
- According to an internal circular issued by RBI, direct recruitment in SSRC will be done at Grade-B level.
- According to this circular issued by the RBI, officers up to the level of Executive Director will be appointed under Grade-B in SSRC.
- According to the Reserve Bank of India, this cadre will be used for research, data analysis, model development, stress testing and to fill vacancies in expert groups.
The purpose of the creation of SSRC:
- The SSRC is designed to maintain a holistic approach to the supervision and regulation of institutions.
- Another objective is to increase the complexity, size and interconnectedness in the banking sector, as well as to deal with potential systemic risks more effectively.
- Given the increasing complexity in regulated entities such as banks and non-banking financial companies (NBFCs), the decision to make a special supervisory and regulatory cadre by the RBI is appropriate.