RBI welcomes govt intervention in IL&FS crisis; backs new management

Government took control of the crippled IL&FS group whose 358 subsidiaries owe more than Rs 910 billion banks and other lenders, and appointed a new six-member board under banker Uday Kotak

The Reserve Bank on Friday welcomed the government intervention in the IL&FS crisis as a "timely move" which has "helped stabilise the situation" at the infra lender, and offered full help to the new management.
 

The regulator is also looking at strengthening the guidelines to avoid situations of asset liability mismatches by non-bank lenders, especially infrastructure financing NBFCs dependent on short term liabilities like commercial papers.
 

"The well structured institutional measures taken by the government in the IL&FS case have been timely and appropriate. These have helped stabilise the situation and RBI will engage with the new management if necessary