There are rules that clearly set out what should be done if, say, a stress test, which does not reflect reality, but rather potentially adverse scenarios, reveals a capital shortfall at an institution. And the relevant European guidelines provide for the possibility, subject to fulfilling certain conditions, of obtaining a “precautionary recap", i.e. a temporary recapitalisation, for possible future events.
Recently, India and Singapore tied up their UPI and Pay Now systems allowing for real time cross border money transfers between the two countries. Indeed, there is immense potential for use of UPI globally through partnership and collaboration with other countries. 19. The RBI is also continuously trying to strengthen its supervisory oversight over cyber risks.