What was the Reserve Bank of India (RBI) doing, what was the bank top management doing, what were the internal, statutory and concurrent auditors doing, and so on
Govt imposed a 10% tax on long-term capital gains - mainly on equity funds and share purchases made after February 1, 2018
The PM sees zero tax on long-term capital gains and dividend income as unfair since the beneficiaries are not poor, only the well-off dabble in shares
It is bad enough that most cooperative banks are run by shady politicians and go bust
It is bad enough that cooperative banks are tools for politicians to dole out money to cronies
The FRDI wants to grab the money of creditors and depositors above a limit, when banks or insurers are caught in a financial tsunami, for no fault of theirs
The lack of strong promoter bids may dilute the competitive process between the remaining resolution applicants and so, lower the recovery for lenders
We should expect many legal skirmishes and endless tinkering of the IBC rules in future
How can this situation be improved by pouring more capital, and that too through the easy option of financial trickery?
Incidentally, the report has been on the RBI website for over nine days now, but the media has somehow ignored its importance
Floaters are also applicable to educational loans, auto loans, and small SME loans
The Act allows for the creation of a massive bureaucracy and multiple levels of professionals who will all need certification
Will the RBI check what 'operating costs' are being loaded into MCLR calculations?
Remember, RBI is concerned with lending, since cutting rates has not pushed up economic activity
The RBI has been eager to help banks loot their customers for over a decade now