Independence of Regulators and Independence of the Central Bank

I have a column When should a government agency have autonomy?, in the Financial
Express today. This is a hot subject in India today, in the aftermath of the ULIPs ordinance. While on this
subject, also see:

• An editorial in Mint.
• Tamal Bandyopadhyay in Mint.
• Gautam Chikermane in the Hindustan Times.
• Jayanth Varma in the Financial Express.
• K. P. Krishnan in the Economic Times.
• Monika Halan in Mint.
• Monika Halan in Mint
• Monika Halan in Mint

One feature of the ULIPs crisis which has not been widely appreciated is the role of the banks. While much opprobrium has been
directed at insurance companies and insurance agents (both individuals or specialised financial distribution companies), banks
are big players in selling insurance products. Their misconduct in selling represents a failure of RBI supervision. Most major banks are part of this scandal. The few customers who have protested have been sorted out, with a no-media clause in the resolution agreement that prevents the story from getting out.

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