Board for Financial Supervision :

To have better supervision and control, a separate board was constituted namely “The Board for Financial Supervision” as per the provisions of the Reserve Bank of India. The Board has the jurisdiction over the banking companies, Nationalized banks, State Bank of India and its subsidiaries. The members of the Board are: Governor of the Reserve Bank of India as the chairperson, Deputy Governors of the Reserve Bank of India and one of the deputy governors should be nominated by the Governor as the full time vice chairman, Four directors from the Central Board of the Reserve Bank nominated by the Governor as members.

Functions and Powers: The Board performs the functions and exercises the powers of supervision and inspection under the Reserve Bank of India Act, in respect to different banking companies. The Board is assisted by the department of supervision. The Board has to report to the Central Board on half yearly basis. The Board meets on a monthly basis, with at least one meeting in a month. The Board has powers to constitute sub committees, like the executive committee. The vice chairman of the Board is the ex-officio chairman of the committee.

Apart from the above, the Governor may constitute an advisory committee to offer advice from time to time to the Board. The council will have at least five members who have special knowledge in different areas like accountancy, law, banking, economics, finance and management. The Governor presides over the meetings and the other members of the council are the vice chairman and other members.