Why this may be time to thoroughly redesign Indian banking system

Lately, India's banking system has been beset by a bad debt crisis, which is crimping credit to productive sectors, dampening domestic investment and leading to subdued employment and GDP growth

Banks are the pillars that support the financial architecture of a modern economy. Their successes and failures are inextricably linked to those of the entire economy. There is a general belief that the Great Recession of 2008 was precipitated by the events which hobbled major banks of the US. Indian banks have also had their share of problems with consequences for the country as a whole.

Bank runs, bad debt, etc, are some of the chronic problems faced by banking systems across the world. Regulatory interventions and oversight of central banks, government support and shareholder activism have been broadly successful