Patel complains of ‘deep fissure’ in Indian regulation
RBI governor’s remarks seek to deflect criticism over recent Punjab National Bank scandal
The Reserve Bank of India is not able to hold public sector banks to account as strictly as it can with privately-owned firms, governor Urjit Patel complained on March 14, highlighting the “fault line” between the central bank and government.
“The market discipline mechanism for public sector banks is appreciably weaker compared to that at private banks,” Patel said, arguing public banks benefit from a stronger perceived sovereign guarantee.
In such an environment, one might expect the
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