RBI closes in on ‘endgame’ in bank clean-up

Governor Urjit Patel says central bank’s new powers have allowed it to overcome “severe” moral hazard problems

Urjit Patel

The Reserve Bank of India (RBI) is getting closer to the “endgame” in its efforts to clean up the country’s banking sector, according to RBI governor Urjit Patel.

Parliament passed a new bankruptcy code in 2016 that paved the way for dealing with stressed assets, but it was undermined by what Patel called “severe” agency and moral hazard problems, as government-owned banks were not keen to tackle the problem on their own. Dealing with the assets in many cases necessitated the liquidation of

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account