'Bad bank' and development finance institution are Modi govt's bad legacies

Over years, the two institutions will become agents of uncertainty as the government tries to make them work to avoid adverse criticism.

It's an unwritten rule, the world over, across time, that every good government must leave behind a bad legacy. The Modi government has not been the exception that proves the rule. 

It has created two bad legacies. One is the creation of a ‘bad’ bank. The other is reincarnating a development finance institution (DFI). A ‘bad’ bank takes over the dead loans of other banks so that their balance sheets are cleaned up and they can start taking risk and lending again. This is then the way Indian streets are swept--by moving the dirt from one side to the other.