the board of directors and senior management to emphasise the importance of internal control through their actions and words. banks should regularly reorient and train their personnel so that they fully understand the importance of internal controls in their respective stations. the boards of banks should specifically pay attention to creating and sustaining a culture of effective control in the banks. 19. fifth, even though the government ’ s capital infusion has helped public sector banks ( psbs ) to improve their balance sheets, i would like to stress that psbs should not become too dependent on this source. depending upon individual situations, psbs should access the capital market for mobilisation of capital. 20. sixth, i have referred to the importance of the ibc and the new bankruptcy regime earlier. there are, however, delays in the resolution of cases, as a significant number of them have extended beyond 180 or 270 days. the government has already announced two new national company law tribunal ( nclt ) benches at indore and amravati. nevertheless, more number of benches as well as members are required. on our part, we are opening a new rbi professorial chair at the indian institute of corporate affairs ( iica ), manesar, haryana which is starting a two year graduate insolvency programme to increase the pool of trained insolvency professionals. 21. seventh, in the light of various developments in the financial sector such as the use of complex financial products and rapid technological innovations which give rise to interconnectedness and spill over effects within and between entities, there has been a move globally towards building specialised teams of bank supervisors. even in the indian context, some incidents in the financial sector have underscored the need for specialisation in supervision and regulation. the build - up of risks among regulated entities due to exposure concentrations, non - transparent market practices and the associated contagion effects in the banking sector have significant implications for financial stability. considering these issues, the reserve bank has now decided to build a specialised regulatory and supervisory cadre for regulation and supervision of banks, non - banks and co - operatives. this specialised cadre in the reserve bank will play a pivotal role so that sound banking and non - banking sectors efficiently intermediate the financing requirements of the entire economy. 22. eighth, the reserve bank has been at the forefront of creating an enabling environment for growth of digital technology for new financial products and services. we are strengthening the surveillance framework and have issued draft guidelines on framework for regulatory sandbox.

direction, we have reduced the periodicity of the nbfc supervision to 12 months from 18 months earlier. we expect the board of directors of companies themselves to act diligently and take necessary action based on reserve bank ’ s supervision reports. 26. further, our objective is to harmonise the liquidity norms between banks and nbfcs, taking into account the unique business model of the nbfcs vis - a - vis banks. in this context, the final guidelines on the liquidity risk management framework which we have proposed recently will be issued shortly. 27. let me also make a reference to urban co - operative banks ( ucbs ). our experience suggests that the board of directors of ucbs require greater expertise and skill to conduct banking business professionally. the reserve bank is in the process of issuing guidelines on this issue. a need is also felt for establishment of an umbrella organisation for ucbs which may extend loans and refinance facilities, setup it infrastructure and provide support for capital and liquidity. the structure, functions and the regulatory guidelines of this organisation are being examined by the reserve bank. mergers and consolidation in the sector will also help in reducing operating costs, encouraging greater risk diversification and economising capital. we propose to put in place a mechanism for encouraging voluntary mergers in the sector through appropriate incentives. we also propose to create a centralised fraud registry for ucbs. 28. i have highlighted several issues in the banking and non - banking sectors. a sound and resilient financial system is a prerequisite for a modern economy that involves all sections of its society in sharing equitably the benefits of economic and social progress. as you would know, reforms are an ongoing process. the reserve bank will endeavour to be proactive in its approach. in the fast - changing financial landscape, we will continue to be watchful to the emerging challenges and respond to them appropriately to ensure a resilient and robust financial system. 1 to be implemented from april 1, 2020 5 / 6 bis central bankers'speeches 6 / 6 bis central bankers'speeches