Table of Contents
- 1 What is on site and off site surveillance?
- 2 What do you mean of off site surveillance?
- 3 What is site surveillance?
- 4 Why does RBI supervise the functioning of banks?
- 5 How does RBI maintain financial stability?
- 6 What is RBI and its role and function?
- 7 What is off site surveillance and vigilance in banks?
- 8 What is off-site surveillance?
What is on site and off site surveillance?
On site inspection of banks is carried out on an annual basis. The primary objective of the off site surveillance is to monitor the financial health of banks between two on-site inspections, identifying banks which show financial deterioration and would be a source for supervisory concerns.
What do you mean of off site surveillance?
Answer. Off-site monitoring is one of the Bank’s operations — along with on-site examinations — to grasp the state of business operations and assets of the financial institutions that hold current accounts at the Bank.
How does RBI monitor the banks in India?
Reserve Bank of India (RBI) supervised the banks in the following ways : (i) It monitors the balance kept by banks for day-to-day transactions. (ii) It checks that the banks give loans not just to profit-making businesses and traders but also to small borrowers.
How does RBI maintain its external relationship explain?
The RBI also manages all foreign exchange under the Foreign Exchange Management Act of 1999. This act allows the RBI to facilitate external trade and payments to promote the development and health of the foreign exchange market in India. The RBI acts as a regulator and supervisor of the overall financial system.
What is site surveillance?
Site surveillance describes the monitoring of activity on a site (most commonly a construction site). Site surveillance usually involves the hiring of security staff and the installation of security cameras.
Why does RBI supervise the functioning of banks?
The supervision of RBI is necessary for the following reasons : (i)It ensures safety to the bank deposits of people. (ii)It helps in collection of economic data all over the country. (iii)It contains corrupt practices from creeping within banks.
What is off-site supervision?
The Off-site supervision applies the relationship manager concept whereby each team of relationship managers is responsible for monitoring and controlling individual banks by applying different techniques to enhance the analysis and assessment of banks and ensure that banks are in compliance with rules and regulations …
How does RBI function?
In the Indian context, the basic functions of the Reserve Bank of India as enunciated in the Preamble to the RBI Act, 1934 are: “to regulate the issue of Bank notes and the keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to …
How does RBI maintain financial stability?
In the Indian context, the Reserve Bank has been able to maintain stability in the financial markets through a judicious use of instruments – both existing as well as by developing innovative instruments. The central bank acts as a shock absorber to ensure stability as it manages volatility in the system.
What is RBI and its role and function?
Reserve Bank of India (RBI) is the Central Bank of India. RBI was established on 1 April 1935 by the RBI Act 1934. Key functions of RBI are, banker’s bank, the custodian of foreign reserve, controller of credit and to manage printing and supply of currency notes in the country.
What is site surveillance report?
What are the powers of RBI to inspect banks in India?
The Banking Regulation Act, 1949 empowers the Reserve Bank of India to inspect and supervise commercial banks. These powers are exercised through on-site inspection and off site surveillance.
What is off site surveillance and vigilance in banks?
What is Off Site Surveillance and Vigilance in Banks? Important banking qna for banking aspirants, which is helpful in banking exam. The Off Site monitoring and surveillance system has been introduced effective from March 1996 and banks are required to furnish DSB Returns.
What is off-site surveillance?
The primary objective of the off site surveillance is to monitor the financial health of banks between two on-site inspections, identifying banks which show financial deterioration and would be a source for supervisory concerns. This acts as a trigger for timely remedial action.
What is the Reserve Bank doing to improve internal control systems?
Besides, the Reserve Bank monitors the implementation of recommendations of Jilani Committee relating to internal control systems in banks on an on-going basis during the annual financial inspection of banks. The Reserve Bank has taken several other supervisory policy initiatives.