A call for timely action

After the IL&FS crisis, the RBI feels that the oversight framework related to the financial corporations need to be geared for timely measures

The Reserve Bank of India in its Financial Stability Report has pointed out the reasons why the existing oversight structures related to financial conglomerates  may not be enough to monitor systemic risks such large entities can pose for the financial markets. Jash Kriplani explains.

Why has the Reserve Bank of India called for an improvement of the oversight structure of financial conglomerates?

Over the years, FCs have become a key constituent of the financial markets. Such conglomerates have presence across various segments of the financial market — including banks, insurance and mutual funds. Due to their deep engagement in the financial markets,