ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2023
  • Adani Saga
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » India News

India needs to strengthen RBI's independence: IMF report

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App

India needs to strengthen Reserve Bank's independence so as to help it pro-actively supervise banks and deal with issues like removal of government-appointed directors on bank boards, says an IMF report.

The report also suggested that loan classification and provisioning rules should be reviewed to ensure they reflect observed losses, and to reduce special loan categories.

"Other priorities include introducing a risk-based solvency regime for insurers, unifying the oversight of commodities markets and addressing risks from politically exposed persons and the gold sector," it said.

The International Monetary Fund (IMF) made these observations in its Financial System Stability Assessment (FSSA) for India.

Since the 2011 Financial Sector Assessment Program (FSAP), India has recorded strong growth in both economic activity and financial assets, supported by important structural reforms and terms of trade gains. I The FSAP took stock of the considerable progress made in strengthening financial sector oversight and identified areas where a scope for further improvement remains.

"Notably, these include strengthening the RBI's de jure independence as well as its powers over the PSBs (Public Sector Banks)...," the multilateral institution said.

The FSSA said effective supervision requires stronger de jure independence and enforcement powers as well as a proactive supervisory stance.

"The current gaps in the RBI's supervisory powers over the PSBs (i.e. the RBI cannot remove government-appointed PSB directors or management, force a merger, revoke a license, or trigger liquidation of PSBs), as well as extensive powers of the government to override RBI decisions should be addressed through legal amendments," it said.

As per the IMF, effective use of the enhanced supervisory tools and methodologies will require continued efforts to ensure a proactive supervisory attitude and willingness to "lean against the wind".

To address conflicts of interest, the IMF further said ownership of the National Housing Bank should be transferred from the RBI to the finance ministry and supervision of housing finance companies placed under the RBI.

The IMF directors underscored the importance of adequate resources, de jure independence, and a full set of supervisory powers including over PSBs in underpinning the RBI's effective supervision and regulation of financial institutions.

"There is also a need to introduce risk-based solvency and supervision of insurers and to continue moving toward a market-based environment for the sector," the IMF said.

Unifying the oversight of all commodities markets would promote more efficient market functioning, in line with the authorities' intention to modernise the sector, it added.

 

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
Updated: Thu, Dec 21, 2017
11:18 pm
PTI
RELATED NEWS
GST Council to meet on February 18 GST Council to meet on February 18
No timeline to remove old tax regime, Revenue Secretary Sanjay Malhotra says No timeline to remove old tax regime, Revenue Secretary Sanjay Malhotra says
RBI to hike repo rate by 25 bps in February, ending tightening cycle: Reuters poll RBI to hike repo rate by 25 bps in February, ending tightening cycle: Reuters poll
Pakistan raises petrol price by Rs 35, pushing retail cost to a whopping Rs 249.80 per litre amid severe food, energy crisis Pakistan raises petrol price by Rs 35, pushing retail cost to a whopping Rs 249.80 per litre amid severe food, energy crisis
Budget 2023: Why budget's printing was shifted to North Block from Rashtrapati Bhavan? Budget 2023: Why budget's printing was shifted to North Block from Rashtrapati Bhavan?

LATEST NEWS

Market Next Week: Tata Steel, Hero Moto, M&M results, RBI policy meeting, macro data, global cues among top cues for D-Street

Global bond indices not exclusive club or gymkhana; India will get into it on own terms: Top Govt Official

Vani Jayaram, veteran playback singer, dies at 77

World Cancer Day 2023: Why it is celebrated on February 4? Check history, misconception, theme and more

Pathaan Box Office Collection: Shah Rukh Khan-starrer raises Rs 729 crore worldwide - Check domestic collection after Day 10| OTT release date here

Stock Split: This small-cap company splits shares in 5:1 ratio after delivering 817% return in 5 years

Hindenburg Effect: Axis Bank says exposure to Adani Group is nearly 1% of total loans

Apple CEO Tim Cook says India is ‘hugely exciting market’; confirms about opening retail store in the country

Explained: What is Chinese spy balloon that was shot down by US Air Force - Check Video

Sidharth Malhotra and Kiara Advani wedding: Did Bollywood couple sell their marriage film rights to THIS streaming platform?

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. India Dot Com Private Limited. All Rights Reserved.
LIVE TV