Nabard intends to switch to risk-based supervision of co-operative banks and regional rural banks in three years to enhance quality of oversight.

In its supervisory role, Nabard undertakes statutory and voluntary inspections of state cooperative banks, regional rural banks and district central cooperative banks.

Harsh Bhanwala, its chairman said at present institution is working to develop framework for risk-based supervision.

It will first conduct such exercise on pilot basis and then scale up to cover 400 entities under its supervisory ambit.