Acting in Haste
The Reserve Bank of India may be moving too fast, too soon, in its efforts to resolve the bad loan mess.
The world's largest economy, the US, has seen a decline in bankruptcy momentum in the last decade. From 300 bankruptcy filings (with debt of $4,09,534 million) in the 2008/09 period, subsequent to the global financial meltdown, the number of filings came down to 70 (debt of $1,06,929 million) in 2017. Its current Bankruptcy Act, which came in into effect in the late '70s, has seen numerous amendments to make it more relevant to the present times. But, back home, the year old Bankruptcy Act has been creating a flutter.
The Reserve Bank of India (RBI) has
