Mumbai, Jan. 9 -- The Reserve Bank of India (RBI) Governor on Friday said the regulation works best when banks and other regulated entities view supervisors not as fault-finding inspectors, but as partners in resilience.

While speaking at the Third Annual Global Conference of the College of Supervisors in Mumbai, Governor Malhotra said, "For a country like India, where banks play a critical role in financial intermediation and inclusive growth, this collaborative approach is not just desirable, it is essential."

Talking about the RBI's actions on banks and other regulated entities, the governor said the purpose of enforcement actions undertaken by the Reserve Bank is generally not punitive.

"The intent is largely to correct. They serve...