Synopsis Central Banking is regarded by many as one that is engaged in the formulation of monetary policy, banking and financial policies, and one of regulating and supervising the finances and bringing about financial stability of the country. Concomitant with the above statutory obligation enjoined on it, the bank strives to bring the supervisory and regulatory standards of commercial banks on a par with the international best practices. In this context, it is critical to have an understanding about the supervisory regulatory aspects of central banks and their role in ensuring financial stability in the system. This book mainly aims at presenting the importance of central bank as a supervisor and regulator of banks, and how various means and mechanism available at its disposal are used in discharging its role effectively as a supervisor and regulator. It also explores various tools in supervision and regulation during banking crises and how it manages it. To assess the economic and financial situation, market based indicators like credit exposures to various sectors of economy, regulatory compliance on issues like provisioning requirement and capital adequacy requirement are certainly informative and obtained through the supervisory process. For performing its main activity as laid down in the preamble of any central bank the first and foremost requisite would be to bring about financial stability in the system. This is achieved mostly by a system of regulating and supervising the entities and banking is no exception. The book is aimed at providing insights into the essence of the central bank's supervisory and regulatory role, and the measures it undertakes while discharging such roles. This book is targeted at students, researchers, professors in the field of banking, finance and economics and professionals and executives from banking, finance and financial services industries.