Monumental failures of RBI

India's central bank has failed in regulating the banking system

“RBI has done a commendable job in managing the monetary policy, but as a regulator of the banking system, it has failed the Indian economy.” This is what I said publicly to Raghuram Rajan, then Governor of the Reserve Bank of India (RBI), after he delivered a lecture in May 2016. Referring to my paper, “Sub-Prime Infrastructure: Crony Capitalism in Public Sector Banks”, I highlighted a potential loss of Rs 6 lakh crore facing the banks. Dr Rajan acknowledged the paper and listed the measures taken by RBI to deal with non-performing assets (NPAs), which I thought were belated as