When transgressions are systemic than transactional, it’s not a few transactions that need correction rather a procedure itself. “The remedial actions by the entity will also be more robust as all stakeholders will take it more seriously. Infrastructure Leasing & Financial Services (IL&FS) went belly up in 2018 as the biggest bankruptcy in Indian history. Yes Bank had to be rescued by cobbling up an alliance of banks that invested thousands of crores in equity. To ensure a unified and systemic approach, a unified Department of Supervision was created, bringing all banks, NBFCs and co-operative banks under one umbrella.

Source: Punch March 14, 2024 19:09 UTC