Finally, the Banking Regulation Act has since been amended to vest powers with the Reserve Bank to take action against the bank management should the Reserve Bank determine that the management of the bank has been detrimental to public interest or to the interest of depositors. 38.
Again, I have gone at length on this issue of new bank licences to illustrate the Reserve Bank’s approach to responsible regulation. BIS central bankers’ speeches  5  RBI’s responsible regulation – financial markets 39. Reserve Bank’s approach to regulation of financial markets is informed by the same sense of responsibility. In regulating financial markets, we have followed three broad principles.