Finally, on the priorities for research emerging from the financial turmoil, I would like to leave you with an open question: The bursting of asset price bubbles is likely to lead to a decline in balance sheet values and a fall in productivity. Is this a problem of measuring prices or measuring productivity?
No powers are available with RBI for constituting Boards of UCBs, removal of directors, supersession of Board of Directors, auditing of UCBs, winding up and liquidation. The resolution regime for UCBs exists in a rudimentary form. The growth of the sector, therefore, has to be in a carefully calibrated manner, consistent with legal framework and regulatory parameters and their limitations.