It may not be appropriate to continue to permit institutions that are not solvent to seek and accept public deposits and hence RBI favours early restructuring and recapitalisation.
For example, between January 2000 and August 2012, the real effective exchange rates for Switzerland appreciated by 12.5 percent, whereas Japan’s depreciated by 19.3 percent (Chart 5). More recently, between December 2007 and August 2011, the real effective exchange rates for Switzerland and Japan moved in tandem with each other, appreciating by 16.9 percent and 23.3 percent, respectively.