Avoid arbitrary regulation

RBI's micro-management of corporate lending must end

The Reserve Bank (RBI) of India has mismanaged its attempt to control and reduce the number of current accounts in the Indian banking system. It has now permitted banks to defer the implementation of its guidelines on overdrafts and current accounts that had been laid out in a circular issued last year in August. The deadline for implementation of the circular has been pushed back to October 31 from July 31. It is unclear why this postponement could not have been announced prior to the deadline running out, avoiding the confusion and precipitate closing of accounts undertaken by some banks