The Board of Supervision (BoS) (for StCBs, DCCBs and RRBs) has been constituted by NABARD under Section 13(3) of NABARD Act, 1981 as an Internal Committee to the Board of Directors of NABARD. The broad powers and functions of the Board of Supervision are as under:
- Give directions and guidance in respect of policies and on matters relating to supervision and inspection.
- Review the inspection findings and suggesting appropriate measures
- Review the follow-up action taken by Department of Supervision (DoS) on matters of frauds and internal checks and control
- Identify the emerging supervisory issues in the functioning of cooperative banks / RRBs such as recovery, investment portfolio, credit monitoring system, management practices, frauds, etc., and suggest necessary follow-up measures
- Suggest appropriate training for Inspection Officers of NABARD to impart necessary skills and knowledge.
- Suggest measures for strengthening the Department of Supervision.
- Suggest suitable amendments to the B.R.Act, 1949 for vesting required powers on NABARD.
- Recommend issue of Directions by RBI .
- Oversee the quality of inspections carried out and the reports issued.
- Review the information generated through off-site surveillance and other supplementary vehicles, action taken thereon and give suitable directions.
- Undertake any other functions entrusted from time to time by the Board of Directors of NABARD
The Board of Supervision reviews periodically the financial position of Cooperative Banks and RRBs based on the inspections of these banks by NABARD. Based on the observations of BoS, authorities concerned are apprised of the weaknesses of banks for necessary remedial measures and recommendations made to RBI for suitable regulatory action.