Lack of proper activity mapping: The bill increases the number of regulatory regime in India without proper activity mapping. Thus may affect ease of doing business in India.
Dilution of power of RBI: Thus Resolution corporation undermines the role of RBI in the banking sector. Banks are now supervised entirely by the RBI. Allowing another institution to decide on the bankruptcy of a bank could be a significant dilution of the RBI’s powers.
Lack of accountability: The act fails to lay down specific provisions against misuse of the act and lack accountability provisions for Resolution Corporation.
