The Reserve Bank of India has decided to form a specialized supervisory and regulatory team for commercial banks, urban cooperative banks and nonbanking financial companies, or NBFCs.

The decision was made to improve the supervision and regulation of financial institutions in the country, according to a May 21 statement.

The creation of the specialized structure is based on the recommendations of an internal committee under Rosemary Sebastian, the executive director in charge of NBFC supervision, Mint said in a May 22 report, citing an official close to the development.

The move comes after the central bank asked large NBFCs to appoint chief risk officers for a fixed tenure.