Expediency & cronyism win. Again

In quick succession the "harsh" PCA framework was suspended, MSMEs got a relief package and there are plans to transfer a huge amount of money from the RBI's reserves for some pre-election scheme

RBI, RESERVE BANK OF INDIA, CENTRAL BANK

premium

Going by the events leading to the October board meeting and the proceedings of the last three meetings, it’s obvious that the government will not let loose the pressure to change the way the Indian central bank operates

Debashis Basu

Last Updated : Jan 07 2019 | 1:39 AM IST

Ever wondered how it would be to witness retrograde policies being implemented right in front of our eyes by netas and babus? Recent events in the financial sector offer exactly such a picture. Policy decisions over the past two months have allowed the government to preserve the status quo at public sector banks (PSBs), whose bad loans have repeatedly sunk humungous amounts of taxpayers’ money, and also allowed crony capitalists to become very wealthy.

The story began sometime in 2017, but action picked up in the third quarter of 2018 as the cold war between the Reserve Bank of India (RBI)

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper