What is Shadow Banking ?
Shadow banking refers to banking-like activity by non-banking finance companies (NBFCs) that remain outside the regulatory net. They generally operate as intermediaries between investors and borrowers. The role of this newly constituted committee will be to find out the volume of money in shadow banks, who the investors are and direction of the money flow, etc. Also real estate dealings will be looked into very meticulously by the committee. The 15-member committee comprises of officials of the RBI, Securities and Exchange Board of India (SEBI), Central Economic Intelligence Bureau and the National Housing Bank (NHB).
Reserve Bank of India (RBI) on 18 August 2014 constituted a 15-member
inter-regulatory committee to monitor the growing phenomenon of shadow banking.
Presently, the Chairman of this committee - P. Vijaya
Bhaskar (Executive Director, RBI)