The Reserve Bank of India (RBI) takes advance action when it senses a crisis as it did against riskier unsecured lending last year.

The pro-active approach had its impact with growth moderating in the unsecured lending segment, governor Shaktikanta Das said on Thursday.

Addressing an international conference on financial resilience at the RBI’s College of Supervisors here, Das said it has significantly strengthened its supervisory systems, transitioning beyond an entity-focused approach to a more thematic and activity-based approach.

``We now look at the sustainability of business models of banks and NBFCs. Root cause analysis of problems and vulnerabilities are undertaken,” he said.

“Structural changes have been implemented within the Reserve Bank by creating a unified department of supervision to ensure holistic assessment of the financial sector as well as to analyse the health of multiple entities within a group.”

He said when problems appear too serious in a financial entity, a senior officer of the central bank in the rank of executive director addresses the full board of the organisation and shares its concerns.

Similarly, when it comes across material discrepancies between the auditor’s report and its supervisory findings or when it sees that certain material issues are not properly addressed by the auditors, the auditors are invited for a direct discussion.