The Reserve Bank of India performs the supervisory function under the guidance of the Board for Financial Supervision (BFS) which is one of the most powerful boards under RBI. The Board was constituted in the year November 1994 as a committee of the Central Board of Directors of the Reserve Bank of India under the Reserve Bank of India (Board for Financial Supervision) Regulations, 1994. The primary objective of BFS is to undertake consolidated supervision of the financial sector comprising Scheduled Commercial and Co-operative Banks, All India Financial Institutions, Local Area Banks, Small Finance Banks, Payments Banks, Credit Information Companies, Non-Banking Finance Companies and Primary Dealers. The Board is constituted by co-opting four Directors from the Central Board as Members and, as mentioned, is chaired by the Governor. The BFS plays an important role in the overall structure of RBI.
Dr. Amit Bhaskar, Associate Professor, Unitedworld School of Law (UWSL)
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