You are here: Home » Opinion » Letters
Business Standard

Letter to BS:How poor coordination between MoF, RBI creates banking chaos

Ongoing coordination in the perception of problems and finding solutions among the three is the only remedy for avoiding repetition of the present chaos

Business Standard 

This refers to the report “needs more powers to oversee PSBs” (June 13). Media reports would give an impression that the constraints in disciplining Public Sector Banks (PSBs) are the invention of the present (RBI) Governor Urjit Patel. Those who are new to the subject may access the report of the “Committee on the Financial System” (CFS: First Narasimham Committee, 1991) that has made several recommendations about management of including handling of stressed assets.

Since late 1990’s, the (MoF) perfected the art of silencing the and went ahead with its agenda to use as a tool for resource mobilisation and deployment claiming ownership rights on and even the When things became unmanageably bad, everyone is trying to find a scapegoat in the RBI.

This is not to belittle the good work being done by the by asking the right questions and getting very relevant answers on the challenges before the Indian financial system. It is the limbs of governance, in this case, the MoF, the RBI, and the political leadership is not working harmoniously to resolve a chaotic situation for which they are jointly responsible.

Ongoing coordination in the perception of problems and finding solutions among the three is the only remedy for avoiding repetition of the present chaos.

M G Warrier Thiruvananthapuram


can be mailed, faxed or e-mailed to:

The Editor, Business Standard

Nehru House, 4 Bahadur Shah Zafar Marg

New Delhi 110 002

Fax: (011) 23720201 • E-mail: letters@bsmail.in

All must have a postal address and telephone number

First Published: Wed, June 13 2018. 22:54 IST
RECOMMENDED FOR YOU