RBI to create a ‘Specialised Supervisory and Regulatory Cadre’

The decision to create a Specialised Supervisory and Regulatory Cadre within the RBI was taken at the recent two-day meeting of Reserve Bank of India.
The decision for creating an additional oversight mechanism was taken in the wake of recent NBFC crisis such as large-scale defaults by IL&FS in 2018 (which caused on-going liquidity crunch in banking system), failures by credit rating agencies to flag risks, alleged lapses by auditors and divergence in asset quality by big banks.