The objective of the bad bank is undoubtedly laudable. It however needs to be subjected to the test of realism and pragmatism. The then RBI governor Mr Raghuram Rajan felt that bad bank creates a moral hazard enabling banks to continue with their reckless lending practices.source https://economictimes.indiatimes.com/industry/banking/finance/banking/view-bad-bank-not-an-optimum-solution-for-menace-of-mounting-bad-loans-in-india/articleshow/76997028.cms
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