What differentiates the Banking Regulation (Amendment) Ordinance 2017 from previous forays on bad loans of banks?
Put bluntly, the ordinance cleared by the Union government this week buys an insurance for the banks against action by the four Cs, namely the Central Vigilance Commission (CVC), the Comptroller and Auditor General of India (CAG), the Central Bureau of Investigation (CBI) and the courts. The insurance is against the possibility of action against the management of the bank by any one or a combination of these entities on charges of corruption when the bank proceeds to clear up a bad loan from its books of accounts. It is also an insurance for the government of the day.
How is it an Insur…
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