Financial Systems Design

India’s regulatory architecture has been driven by the creation of product-specific regulators. We have multiple regulators: Reserve Bank of India (RBI) that regulates savings and credit,

The FSLRC report identifies three problems that occur when regulators pursue the objectives of financial inclusion and market development like subsidizing credit for agriculture or increasing the flow of credit into certain states,

For every loan of Rs, 10,000 made through a Public Sector Bank rural branch, it costs them about Rs. 4150. The same number for a Private Sector Bank rural branch is about Rs. 3210. Little wonder then that rural branch expansion meets with so much resistance.

Keeping in mind the existing state of consumer protection measures in place for India, FSLRC has proposed a consumer protection framework for financial services, with the stated objectives being – to protect and further the interests of consumers of financial products and services; and to promote public awareness in financial matters.

The Task Force on Credit Related Issues of Farmers, chaired by Umesh Chandra Sarangi, in its report submitted to the Ministry of Agriculture, Government of India,

Over 2006-12, RBI and SEBI have created a strong and conducive regulatory environment for securitisation, listing of securitised debt instruments, and standards of transparency and reporting. Securitisation volumes have picked up and we recently witnessed the first listed transaction. In October 2011, the income tax authorities issued a claim on certain securitisation special purpose vehicles […]

We have presented Suitability as the paradigm of choice for India’s financial system and have put forward the idea of Suitability as a board-approved process that each financial services provider develops and adheres to across all functions of the firm.

In July 2012, RBI set up the Expert Committee under the Chairmanship of Dr.Prakash Bakshi, Chairman, NABARD, to examine the Three-Tier Short Term Cooperative Credit Structure (STCCS) in India.

Continuing our blog series on Municipal Finance in India, in this two-part series we review the Report on Indian Urban Infrastructure and Services (2011).

The absence of secondary markets for corporate bonds in India is arguably the single most important reason for this market not seeing the kind of growth one would expect.