Anil Ambani's RCap is an example of why RBI hates big business in banking

Company joins a long list of Indian shadow banks that have keeled over since the sudden collapse of infrastructure financier IL&FS Group in September 2018.

The crisis of confidence that erupted in India’s shadow banking industry in 2018 has claimed its most high-profile casualty yet. In a surprise announcement Monday evening, the central bank said that it had superseded the board of a financier controlled by Anil Ambani, the younger brother of India’s richest man, appointed an administrator, and would soon be sending the firm to the bankruptcy tribunal.

The unraveling of Reliance Capital Ltd. shows why the Reserve Bank of India remains reluctant to allow big business groups into mom-and-pop banking, despite facing huge pressure to allow a wave of corporate capital into the industry