In this connection, the Department had several rounds of interactions during the year with RPCD and DBS to address these issues and resolve the same.
To strengthen the financial system and enhance the systemic stability with a view to minimizing the incidence of such crises in future, it is argued that stronger regulation is necessary. The proponents of stronger regulation argue that the benefits of financial stability would outweigh the costs of regulation and, therefore, there is a good reason for revamping the regulatory framework.