Financial services regulators, worldwide and particularly in India, are known for their long memories about industry and company conduct. Their prime role is to ensure stability in the system and, thereby, the economy. Regulators do this by regular evaluation of conduct and maintaining a database of evidence to judge conduct. They also perform several other roles and exercise discretion based on the evidence available with it or with the industry to judge and regulate it.
The Indian banking regulator has been given an additional responsibility by the government vide the ordinance that amended the Banking Regulation Act, 1949, on May
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