Letter to BS: RBI's bewilderment paints gloomy picture for financial sector

There is no option before the government other than emulating the Iceland model to save depositors' interests

With the Central Bureau of Investigation beginning to question the bigwigs from the business and industry, the banking sector and the Reserve Bank of India (RBI), the government seems determined to walk an extra mile, ruffle feathers, and risk onslaught by the vested interests through their political connections. It’s a saga of crony capitalism, loan disbursements without due diligence under political and extraneous pressures, rampant greedy nepotism and with a lame-duck regulator, the RBI in a state of bewilderment, it’s a gloomy picture for India in general and its financial sector in particular.

There is no option before the government to remedy the catastrophic scenario other than emulating the Iceland model to save the depositors’ interests and clear the debris accumulated around our banks.

Mahendra B Jain, Belagavi

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