Governance gaps

Govt must not delay PSB appointments

Often there are gaps between expectations and actual outcomes. If such gaps emerge in the business of banking, there can be financial-stability risks, with implications for the entire economy. It is thus crucial that the banking regulator is always alert and checks deviations from the given regulatory framework. In the process, it also needs to be careful to not stifle innovation and technology adoption. The Reserve Bank of India (RBI) was deemed responsible, in part, for the build-up of non-performing assets (NPAs) in the banking system in the aftermath of the global financial crisis. It seems to have learned from