LET THE WORLD LEARN FROM INDIA

LET THE WORLD LEARN FROM INDIA
In the western world like the USA and Europe more than 50 large and reputed banks and financial institutions have failed and collapsed. An in depth analysis shows that the main reasons for the failure are the lack of proper and continuous supervision and monitoring by the governments and their Federal Banks and the greed of the top executives of the financial institutions to make super normal profits and earn name fame and super bonuses for themselves. On the other hand in India the banks and other financial institutions not only survived the financial crisis but also emerged stronger and sounder. This was primarily due to the continuous and very close as well as effective supervision and control and monitoring by the Reserve Bank of India and the proactive role played by the Government of India. Various prudential norms and restrictions imposed by the RBI and the government have saved the banks from harming themselves. As observed by the RBI governor sometime back banking may be ‘boring’ in India but it is robust and fail-proof. It is time the rest of the world learns from India how to run the banks and other financial institutions on a sound and safe manner