A sub-committee under the chairmanship of Governor of the Reserve Bank acts as the operational arm of the FSDC. It provides a mechanism for coordination among regulators, and between regulators and the government which, as we realized during this crisis, is critically important, especially during stressed times. 13. Failures of commercial banks in India have been rare.
The last time we had a major commercial bank coming under distress was in 2004 and that was resolved by effectively and quickly merging it with another strong public sector bank. Failures among urban co-operative banks are, however, quite common. For banks that fail to meet the minimum prescribed requirements, we institute a regular monitoring mechanism.