Mains Paper 2 : Governance, Transparency & Accountability, Citizens Charters |
From UPSC perspective, the following things are important :
Prelims level : Utkarsh 2022
Mains level : RBI Regulations
- The Reserve Bank of India (RBI) board has finalised a three- year roadmap to improve regulation and supervision, among other functions of the central bank.
- This medium term strategy — named Utkarsh 2022 — is in line with the global central banks’ plan to strengthen the regulatory and supervisory mechanism.
- Worldwide, all central banks strengthen the regulatory and supervisory mechanism; everybody is formulating a long-term plan and a medium-term plan.
- So, the RBI has also decided it will formulate a programme to outline what is to be achieved in the next three years.
- While around a dozen areas were identified by the committee, some board members felt that areas could be filtered and lesser number of areas can be identified for implementation in the next three years.
Why such move?
- The idea is that the central bank plays a proactive role and takes preemptive action to avoid any crisis.
- We are very much aware of the IL&FS debt default issue and the crisis of confidence the non-banking financial sector faced in the aftermath.