RBI Governor Urijit Patel, in a statement on Wednesday, also said that banks that are in a better shape can be given priority by the government in giving capital. Chief Economic Advisor Arvind Subramanian said there is a possibility to shrink or narrow the scope of unviable banks. RBI Governor Patel, in a statement on Wednesday, also said that banks that are in a better shape can be given priority by the government in giving capital. While allocation of capital will be selective, the key features of recapitalisation bonds are not yet clear. Other option could be to float a special purpose vehicle backed by the Central government that issues the recapitalisation bonds.

Source: Indian Express October 25, 2017 22:52 UTC