RBI should not step into day-to-day activities of banks, says Subbarao

Subbarao said RBI interference was the 'least bad decision' to check the rising NPAs in banks

Former Reserve Bank of India (RBI) governor D Subbarao on Wednesday said the banking regulator should not step into day-to-day activities of banks, as it does not have the expertise to manage a bank's business. Subbarao was referring to the May 5 ordinance amending the Banking Regulation Act, which said the central bank has the powers to suggest and even compel banks to invoke proceedings against defaulters.

Subbarao was speaking at the event of second anniversary celebration of Bandhan Bank in Kolkata.

RBI has identified 12 accounts representing about 25 per cent of the gross bad loans in the banking