Efforts to clean up the banking
system would be Raghuram Rajan’s greatest legacy when he leaves office on
September 4, 2016. In his three years in office, he has not just brought
inflation under control but has also made the banks and the government accept
the NPA and Bad Debts problem.
The government has become a
proactive ally to the RBI. It has taken various measures to help the banks and
create an able infrastructure to minimise bad loan problems.
Three important measures in the
past few months are:
- Insolvency and Bankruptcy Code, 2016
- Rs 70000 crore Capitalisation Plan for Public Sector Banks
- Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Bill, 2016
