Letter to BS: NBFCs' financial indiscipline led to credibility crisis

It is important to tighten the oversight by the banking regulator, besides making the various audits and inspections purposeful

This refers to “Financial sector stability & our cook Lilu-tai” (October 7). While financial intermediaries are sourcing money from those to save, the deployment of those resources must ensure the interest of those who contributed to the resources is safeguarded. Over a period of time, many banks, NBFCs and co-operative banks have deployed the funds imprudently and that resulted in loan-related frauds and bad assets. They have wilfully kept the financial scams under the carpet and cheated investors and depositors.

While these financial intermediaries are the key pillars of the Indian financial system, the non-observance of financial discipline by them have