A new 'jugalbandi'

Here's how the RBI's June 7 circular could usher in evolved regulatory governance.

A rather unfortunate and antiquated quote about the relationship between a central bank and the government alludes to the role of the former being advising, but finally, complying. Perhaps it is more appropriate to think of the Reserve Bank of India as financial regulator and the Government as complementing each other. This is true of each of their respective domains and even more so in respect of their role in facilitating insolvency resolution. The RBI’s June 7 circular (“revised circular”) on the resolution of stressed assets restores this complementarity between these institutions. 

The Banking Regulation Amendment Act 2017 had empowered