Super regulator plan rejected

MUMBAI: The Reserve Bank of India RBI has rejected the Khan Working Group8217;s recommendation regarding the establishment of a quot;super regulatorquot; to supervise and coordinate the activities of the multiple regulators. Instead, the Reserve Bank prefers the group8217;s recommendation on setting up of a voluntary and purposeful self-regulatory committee to ensure uniformity in regulatory treatment.

The RBI paper has left the decision to form such a committee, or revamp the existing arrangements entirely with the banks and the financial institutions. Such a committee may be a formal or an ad-hoc committee, as warranted by the circumstances, but the RBI should be available to actively interact with it, without being intrusive or diluting its role as a regulator and supervisor.