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Январь
2021

View: The RBI needs to cut the Gordian knot that threatens financial stability in India

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Where the RBI errs is in assuming more regulation of NBFCs will automatically mean greater safety. This is not true, as we saw in the context of the spectacular collapse of Yes Bank and Lakshmi Vilas Bank. Regulation that is not backed by adequate and effective supervision merely adds to compliance costs without serving the objective of financial sector stability.



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