The banking regulator Reserve Bank of India has established one supervisory college each for two of the country's leading banks. The banks for which supervisory colleges have been opened are - the country's largest public sector bank, State bank of India and the country's largest private sector bank, ICICI Bank.

Reportedly, the supervisory institutions will oversee all matters of these two banks and will also institute a system of cooperation for supervision of cross border transactions and behavior of these banks.

RBI issued a statement to this effect which said that though there is no systemically significant banks in India, the central bank decided to institute one supervisory college each for ICICI Bank and SBI because both these banks have huge overseas presence and hence have to carry out vast number of overseas operations which cut across several supervisory jurisdictions.

It is reported that SBI has a total of nine host country supervisors in countries like Bahrain, Dubai, Bangladesh, Nepal, Singapore, Mauritius, Belgium, Germany and the UK.

Similarly, ICICI bank has a total of seven host country supervisors which are present in countries like Russia, Germany, Belgium, United Kingdom, Singapore, Dubai and Bahrain.

The opening meeting of these supervisory colleges for SBI and ICICI Bank was inaugurated by the Deputy Governor of Reserve Bank of India, Mr. K.C. Chakrabarty.