The core functions of the BoS are as follows:

• Providing directions and guidance on matters related to supervision and inspection;
• Overseeing the quality of inspection;
• Reviewing the inspection findings and suggesting appropriate measures;
• Reviewing the follow-up action taken by the Department of Supervision;
• Identifying emerging supervisory issues;
• Providing necessary follow-up suggestions to supervised banks to improve their functioning;
• Suggesting measures for making the supervisory mechanism more strong;
• Reviewing the information generated through supplementary vehicles, such as off-site surveillance, and action taken thereon;
• Undertaking any other functions entrusted by the Board of Directors of NABARD;
• In addition to the above, based on the inspections conducted by NABARD, BoS periodically reviews the financial position of Cooperative Banks and Regional Rural Banks.