Question

Government versus RBI Autonomy 250-300 words

Answer 1

At first glance, the watered down version of the Dodd-Frank Act and this week’s board meeting of the Indian central bank seem to have scant little in common, barring their articulated roles in enhancing financial sector stability. But the new line in the sand drawn for uber banks in the US, at $250 billion in assets, points to the famed Middle Path that Mint Street would now seek to follow, yielding to North Block on policy matters such as capital buffer and reserves transfer while asserting its sanctioned authority on regulatory oversight.

economic capital framework.

hope it helps