From UPSC perspective, the following things are important :
Prelims level : Specialized Supervisory and Regulatory Cadre (SSRC)
Mains level : Governance of RBI
The RBI has decided to recruit 35% of the specialised supervisory and regulatory cadre from the market while the remaining 65% will be recruited via internal promotions.
Specialized Supervisory and Regulatory Cadre (SSRC)
- The SSRC will comprise officers in Grade B to Executive Director level.
- In Nov. last year RBI decided to reorganize its regulation and supervision departments.
- It merged the three regulatory departments (department of banking, non-banking and cooperative bank) into one and did likewise for the three supervisory departments.
- As a result, there is only one supervisory department which looks after supervision of banks, NBFCs and cooperative banks and only one regulatory department for these three.
- The move is aimed at dealing more effectively with potential systemic risk that could come about due to possible supervisory arbitrage and information asymmetry.