Rbi

There is near-consensus that the move will boost depositor protection. “The case of two regulators blurred the lines of regulation. Now with the RBI being the supervisor, the norms followed by commercial banks can be imposed here to ensure that there is more discipline,” says Madan Sabnavis, Chief Economist, CARE Ratings. The scrutiny that co-operative banks’ corporate governance, lending and accounting practices will face would be at par with that of scheduled commercial banks, though finer details of the ordinance are awaited. … [Read more...] about How RBI’s supervision could avert a PMC Bank-like crisis

In April, the Supreme Court struck down the RBI's February 12 circular for resolving bad loans under which a company could be labelled as a non-performing asset if it missed repayment even by a day, and banks were to find a resolution within 180 days or else the case had to be sent to bankruptcy courts. … [Read more...] about RBI circular a welcome step; provides more freedom to bankers: IBA

The regulator said ARCs should release all securities on repayment of dues on realisation of the outstanding amount of loan, put in place a Board-approved policy on the management fee, expenses and incentives, adopt transparent and non-discriminatory practices in the acquisition of assets and put in place a Board-approved Code of Conduct for Recovery Agents and obtain their undertaking to abide by that Code. ARCs, as principals, are responsible for the actions of their Recovery Agents, the RBI said. … [Read more...] about Follow fair practices code, ask staff not to harass borrowers, RBI tells asset reconstruction companies

The central bank in separate notifications for the latter two, said that extension should not “per-se be construed to imply that it is satisfied of substantive improvement in the financial position of the aforementioned banks,” the Hindu BusinessLine reported. … [Read more...] about RBI extends directions for three Maharashtra urban cooperative banks

He also noted that excessive monetary and credit stimulus caused the Indian financial sector to lose its stability, adding: “Nevertheless, attempts to alter the governance structure of the RBI to institutionalise such outcomes in future would have meant crossing the Rubicon and had to be foiled. As a result, the RBI lost its governor on the altar of financial stability.” … [Read more...] about Viral Acharya in new book: Urjit Patel’s exit caused by govt attempts to undermine RBI autonomy