The cost of RBI’s keen disciplining of private banks’ boards can be reduced competition3 min read . Updated: 04 Jan 2022, 01:20 AM IST
There is a risk in reacting to governance failures in private banks with successive regulatory interventions. The risk is that the RBI can create an atmosphere of distrust and end up weakening the case for the issuance of more universal banking licences. That would be a tragedy.