The Supreme Court order quashing the Reserve Bank of India’s rules on bad loans comes as a major disappointment to the dogmatic effort to clean-up the stressed banking system, which sought to shift the balance of power from defaulting corporate promoters to ordinary bank depositors.
Issue
Context:
The Supreme Court order quashing the Reserve Bank of India’s rules on bad loans comes as a major disappointment to the dogmatic effort to clean-up the stressed banking system, which sought to shift the balance of power from defaulting corporate promoters to ordinary bank depositors.
About:
RBI’s February 12 Circular
Aim behind this circular
Immediate challenges for the RBI
Last warning to RBI
Why did RBI refuse?
Way Forward
Learning Aid
Practice Question:
The recent tussle between the RBI and the SC points out to the delicate balance RBI has to maintain in its functioning. Comment.
Verifying, please be patient.