Central banks and other financial regulatory authorities are responsible for influencing major investment decisions and resource allocation through their policies. In India, the Reserve Bank of India (RBI) has joined a growing number central banks and financial regulators, who have incorporated climate change into their financial stability mandate seeking to frame prudential regulations and/or direct credit towards sustainable projects. We have analysed the recent developments in our previous posts available here and here.Continue Reading Green Central Banks and Financial Regulators – Are they Legally Mandated?
Partner in the IBC and Policy Practice at the Mumbai office of Cyril Amarchand Mangaldas. Richa comes with an experience of over 12 years in Banking and Finance, Debt Restructuring and Bankruptcy, Public Policy, Microfinance and Social Enterprises, Private Equity, Funds.
She has served on and contributed to multiple financial sector reform committees of the Ministry of Finance, Ministry of Corporate Affairs and RBI. Under the aegis of the Bankruptcy Law Reform Committee she assisted in drafting the corporate insolvency provisions of the Insolvency and Bankruptcy Code, 2016 and the CIRP Regulations. She is a 2005 NLSIU Bangalore graduate and a 2017 Oxford (MPP) graduate. She can be reached at firstname.lastname@example.org
Climate change is one of the defining challenges of our times. It is a classic example of a ‘collective action problem’ – one requiring collaborative action between individuals, groups and nations, but where such coordinated action is difficult on account of misaligned incentives. Climate change is likely to result in physical and transition risks that could have implications on stability of the overall financial system as well as the physical safety and financial soundness of banks, financial institutions. Given the potential implications of climate change on monetary policy as well as financial stability, addressing it should be part of the mandate of central banks and financial regulators.Continue Reading Climate Finance for Regulated Entities – Upcoming Trends
In a progressive move, the Reserve Bank of India (RBI) is one of the first central banks and financial regulators in the world to release a framework for accepting ‘green deposits’ (“GD Framework”).Continue Reading Greening Bank Deposit: RBI releases Framework for Green Deposits
The Imperative for a distinct framework for the resolution of financial firms
The financial sector is facing a combination of liquidity, governance and business issues, on account of which certain Non Banking Financial Companies (“NBFCs”) are facing solvency concerns.
The severe liquidity crunch for NBFCs was caused as banks and other financial institutions have curtailed refinancing the loans of NBFCs on account of which several NBFCs and other financial institutions faced debt servicing and solvency issues. These have sought to be resolved through the Stressed Asset Directions issued by the Reserve Bank of India (“RBI”) on June 7, 2019. This was fraught with complexities given the diverse sets creditor, including market borrowings each of whom were governed by different financial regulators.
Continue Reading The Road to Resolution of Financial Service Providers: A Firm First Step