[This post has been authored by Harinie. S, a fourth-year law student at Symbiosis Law School, Hyderabad]
The recent onset of economic recession highlights the need to overhaul the governance system of the largest player of the economy- the banks. The failure of Lakshmi Vilas Bank and Yes Bank, and the downfall of Dhanalakxmi bank’s management are a result of a bad corporate governance system. The same has been acknowledged by the Reserve Bank of India (‘RBI’).