The core functions of the BoS are as follows:

• Providing directions and guidance on matters related to supervision and inspection
• Overseeing the quality of inspection
• Reviewing the inspection findings and suggesting appropriate measures
• Reviewing the follow-up action taken by the Department of Supervision
• Identifying emerging supervisory issues
• Providing necessary follow-up suggestions to supervised banks to improve their functioning
• Suggesting measures for making the supervisory mechanism more strong
• Reviewing the information generated through supplementary vehicles, such as off-site surveillance, and action taken thereon.
• Undertaking any other functions entrusted by the Board of Directors of NABARD
• In addition to the above, based on the inspections conducted by NABARD, BoS periodically reviews the financial position of Cooperative Banks and Regional Rural Banks