ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

RegulationSubscribe to Regulation

Can Payments Banks Succeed?

Recently, the Reserve Bank of India has begun licensing a new kind of retail bank, called payments banks, for the hitherto financially excluded. The regulator’s argument that technological innovation will allow payments banks to achieve a seemingly impossible trilemma of financial inclusion while still being competitive and profitable is examined. The article concludes that amelioration of this trilemma will require the regulatory orientation to fundamentally change, and for the state to provide a kind of public good to all payments banks.

The Myth of Sustainable Development in Mumbai’s Infrastructure Projects

The flip side of the ongoing and proposed infrastructure projects in Mumbai is explored. The concept of sustainable development is juxtaposed with the ramifications these projects have on the environment, and some important ecological questions are raised.

Aggregators, Driver-partners and the State

Based on the interviews of metered taximen and aggregator drivers, news reports, and a review of aggregators’ operations in different countries, the many violations by the aggregator companies are brought forth. By reviewing the ground realities with regard to the companies’ blogs, their promises, and six different policy drafts aimed at regulating Uber and Ola, the need to see beyond and question the discourse of scientific rationality that frames their operations is highlighted.

Indian Car Industry

Global Players and the Indian Car Industry: Trade, Technology and Structural Change by Jatinder Singh, Oxon and New York: Routledge, 2019; pp xvii + 240, ₹ 995.

Determinants of Recovery of Stressed Assets in India

There have been signs of stress in the balance sheets of banks in an environment of increasing uncertainties and a fragile global economy. Weakening loan recovery rates not only forces banks to face the burden of higher provisions and limits their lending capacity, it also diminishes their profitability and solvency. Examining the determinants of recovery of defaulted loans by banks in India, the need for a stronger and effective insolvency regime is felt so as to improve the debtor-creditor relationship and credit environment. The importance of the presence of collateral, the type of collateral used, and a conducive macroeconomic environment towards recovery of bad loans are highlighted. There is a need for strengthening banks' credit appraisal system. Access to alternative resources facilitates loan recovery, highlighting the need for further development of capital market as a source for adequate resources for borrowers.

The State in Business and the Business of Regulation

This article seeks to dispel the notion that the law treats public sector units preferentially only in India by offering examples of preferential treatment for government-owned entities in developed countries. The solution is, therefore, to secure the credible commitment of the state to subject its corporations to the same standards as are applicable to non-state owned entities.

Reforming the Risky Financial System

Other People's Money: The Real Business of Finance by John Kay; New York: Public Affairs, 2015; pp 352, $27.99 (hardcover).

A Half-baked Attempt at Revamping Environmental Law

The Environment Laws (Amendment) Bill, 2015 is a major policy attempt to make structural changes in environmental governance. But the bill fails in bringing any change to the institutional mechanism for enforcement of the law. Moreover, the bill attempts to introduce a monetary penalty for environmental damages, which is not in consonance with the well-established polluter pays principle.

Regulation of Doctors and Private Hospitals in India

The issue of regulation of doctors and private hospitals is one that is increasingly becoming important for the citizen. The attempts by professional medical associations to scuttle the Clinical Establishments (Registration and Regulation) Act of 2010 is the context for this essay on the issues that afflict the provision of private healthcare. After a critical discussion of all the major issues, the essay outlines what needs to be done to prevent and address the malpractices and abuses that are widely prevalent in the country.

Corporate Responsibility for Bhopal

Union Carbide Corporation managed to wrangle out of the Bhopal gas tragedy by exploiting a loophole in the Foreign Exchange Regulation Act. If governments are not vigilant, other companies, ushered for “Make in India”, would do the same.

Market Scandals and Regulatory Governance

What has happened in Wall Street over the past 18 months raises several issues of regulatory governance which are immensely relevant for countries such as India that have embarked on reform of their financial and capital markets. There is deep concern that the regulating agencies are not adequately equipped and capable of discharging their primary responsibility of preserving the integrity of the market processes.

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