Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
$message = 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
$stackFrame = (int) 1
$trace = [
	(int) 0 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ServerRequest.php',
		'line' => (int) 2421,
		'function' => 'deprecationWarning',
		'args' => [
			(int) 0 => 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead.'
		]
	],
	(int) 1 => [
		'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
		'line' => (int) 73,
		'function' => 'offsetGet',
		'class' => 'Cake\Http\ServerRequest',
		'object' => object(Cake\Http\ServerRequest) {},
		'type' => '->',
		'args' => [
			(int) 0 => 'catslug'
		]
	],
	(int) 2 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Controller/Controller.php',
		'line' => (int) 610,
		'function' => 'printArticle',
		'class' => 'App\Controller\ArtileDetailController',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 3 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 120,
		'function' => 'invokeAction',
		'class' => 'Cake\Controller\Controller',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 4 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 94,
		'function' => '_invoke',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(App\Controller\ArtileDetailController) {}
		]
	],
	(int) 5 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/BaseApplication.php',
		'line' => (int) 235,
		'function' => 'dispatch',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 6 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Http\BaseApplication',
		'object' => object(App\Application) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 7 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/RoutingMiddleware.php',
		'line' => (int) 162,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 8 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\RoutingMiddleware',
		'object' => object(Cake\Routing\Middleware\RoutingMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 9 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/AssetMiddleware.php',
		'line' => (int) 88,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 10 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\AssetMiddleware',
		'object' => object(Cake\Routing\Middleware\AssetMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 11 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Middleware/ErrorHandlerMiddleware.php',
		'line' => (int) 96,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 12 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Error\Middleware\ErrorHandlerMiddleware',
		'object' => object(Cake\Error\Middleware\ErrorHandlerMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 13 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 51,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 14 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Server.php',
		'line' => (int) 98,
		'function' => 'run',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\MiddlewareQueue) {},
			(int) 1 => object(Cake\Http\ServerRequest) {},
			(int) 2 => object(Cake\Http\Response) {}
		]
	],
	(int) 15 => [
		'file' => '/home/brlfuser/public_html/webroot/index.php',
		'line' => (int) 39,
		'function' => 'run',
		'class' => 'Cake\Http\Server',
		'object' => object(Cake\Http\Server) {},
		'type' => '->',
		'args' => []
	]
]
$frame = [
	'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
	'line' => (int) 73,
	'function' => 'offsetGet',
	'class' => 'Cake\Http\ServerRequest',
	'object' => object(Cake\Http\ServerRequest) {
		trustProxy => false
		[protected] params => [
			[maximum depth reached]
		]
		[protected] data => [[maximum depth reached]]
		[protected] query => [[maximum depth reached]]
		[protected] cookies => [
			[maximum depth reached]
		]
		[protected] _environment => [
			[maximum depth reached]
		]
		[protected] url => 'latest-news-updates/end-hand-holding-let-banks-grow-up-660/print'
		[protected] base => ''
		[protected] webroot => '/'
		[protected] here => '/latest-news-updates/end-hand-holding-let-banks-grow-up-660/print'
		[protected] trustedProxies => [[maximum depth reached]]
		[protected] _input => null
		[protected] _detectors => [
			[maximum depth reached]
		]
		[protected] _detectorCache => [
			[maximum depth reached]
		]
		[protected] stream => object(Zend\Diactoros\PhpInputStream) {}
		[protected] uri => object(Zend\Diactoros\Uri) {}
		[protected] session => object(Cake\Http\Session) {}
		[protected] attributes => [[maximum depth reached]]
		[protected] emulatedAttributes => [
			[maximum depth reached]
		]
		[protected] uploadedFiles => [[maximum depth reached]]
		[protected] protocol => null
		[protected] requestTarget => null
		[private] deprecatedProperties => [
			[maximum depth reached]
		]
	},
	'type' => '->',
	'args' => [
		(int) 0 => 'catslug'
	]
]
deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 73
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
$message = 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
$stackFrame = (int) 1
$trace = [
	(int) 0 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ServerRequest.php',
		'line' => (int) 2421,
		'function' => 'deprecationWarning',
		'args' => [
			(int) 0 => 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead.'
		]
	],
	(int) 1 => [
		'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
		'line' => (int) 74,
		'function' => 'offsetGet',
		'class' => 'Cake\Http\ServerRequest',
		'object' => object(Cake\Http\ServerRequest) {},
		'type' => '->',
		'args' => [
			(int) 0 => 'artileslug'
		]
	],
	(int) 2 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Controller/Controller.php',
		'line' => (int) 610,
		'function' => 'printArticle',
		'class' => 'App\Controller\ArtileDetailController',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 3 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 120,
		'function' => 'invokeAction',
		'class' => 'Cake\Controller\Controller',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 4 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 94,
		'function' => '_invoke',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(App\Controller\ArtileDetailController) {}
		]
	],
	(int) 5 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/BaseApplication.php',
		'line' => (int) 235,
		'function' => 'dispatch',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 6 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Http\BaseApplication',
		'object' => object(App\Application) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 7 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/RoutingMiddleware.php',
		'line' => (int) 162,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 8 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\RoutingMiddleware',
		'object' => object(Cake\Routing\Middleware\RoutingMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 9 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/AssetMiddleware.php',
		'line' => (int) 88,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 10 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\AssetMiddleware',
		'object' => object(Cake\Routing\Middleware\AssetMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 11 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Middleware/ErrorHandlerMiddleware.php',
		'line' => (int) 96,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 12 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Error\Middleware\ErrorHandlerMiddleware',
		'object' => object(Cake\Error\Middleware\ErrorHandlerMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 13 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 51,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 14 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Server.php',
		'line' => (int) 98,
		'function' => 'run',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\MiddlewareQueue) {},
			(int) 1 => object(Cake\Http\ServerRequest) {},
			(int) 2 => object(Cake\Http\Response) {}
		]
	],
	(int) 15 => [
		'file' => '/home/brlfuser/public_html/webroot/index.php',
		'line' => (int) 39,
		'function' => 'run',
		'class' => 'Cake\Http\Server',
		'object' => object(Cake\Http\Server) {},
		'type' => '->',
		'args' => []
	]
]
$frame = [
	'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
	'line' => (int) 74,
	'function' => 'offsetGet',
	'class' => 'Cake\Http\ServerRequest',
	'object' => object(Cake\Http\ServerRequest) {
		trustProxy => false
		[protected] params => [
			[maximum depth reached]
		]
		[protected] data => [[maximum depth reached]]
		[protected] query => [[maximum depth reached]]
		[protected] cookies => [
			[maximum depth reached]
		]
		[protected] _environment => [
			[maximum depth reached]
		]
		[protected] url => 'latest-news-updates/end-hand-holding-let-banks-grow-up-660/print'
		[protected] base => ''
		[protected] webroot => '/'
		[protected] here => '/latest-news-updates/end-hand-holding-let-banks-grow-up-660/print'
		[protected] trustedProxies => [[maximum depth reached]]
		[protected] _input => null
		[protected] _detectors => [
			[maximum depth reached]
		]
		[protected] _detectorCache => [
			[maximum depth reached]
		]
		[protected] stream => object(Zend\Diactoros\PhpInputStream) {}
		[protected] uri => object(Zend\Diactoros\Uri) {}
		[protected] session => object(Cake\Http\Session) {}
		[protected] attributes => [[maximum depth reached]]
		[protected] emulatedAttributes => [
			[maximum depth reached]
		]
		[protected] uploadedFiles => [[maximum depth reached]]
		[protected] protocol => null
		[protected] requestTarget => null
		[private] deprecatedProperties => [
			[maximum depth reached]
		]
	},
	'type' => '->',
	'args' => [
		(int) 0 => 'artileslug'
	]
]
deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 74
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

                trigger_error($message, E_USER_WARNING);

            } else {
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr680df3cf46632-trace').style.display = (document.getElementById('cakeErr680df3cf46632-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr680df3cf46632-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr680df3cf46632-code').style.display = (document.getElementById('cakeErr680df3cf46632-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr680df3cf46632-context').style.display = (document.getElementById('cakeErr680df3cf46632-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr680df3cf46632-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr680df3cf46632-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 589,
		&#039;title&#039; =&gt; &#039;End hand-holding: Let banks grow up&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&amp;rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&amp;nbsp; &lt;/font&gt;
&lt;/p&gt;
&#039;,
		&#039;credit_writer&#039; =&gt; &#039;The Economic Times, 10 December, 2009, http://economictimes.indiatimes.com/opinion/editorial/End-hand-holding-Let-banks-grow-up/articleshow/5320851.cms&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;end-hand-holding-let-banks-grow-up-660&#039;,
		&#039;meta_title&#039; =&gt; null,
		&#039;meta_keywords&#039; =&gt; null,
		&#039;meta_description&#039; =&gt; null,
		&#039;noindex&#039; =&gt; (int) 0,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; (int) 660,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [[maximum depth reached]],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 589,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | End hand-holding: Let banks grow up&#039;,
	&#039;metaKeywords&#039; =&gt; null,
	&#039;metaDesc&#039; =&gt; &#039;
The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. 


The RBI is worried that stock market volatility could impact banks and,...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&amp;rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&amp;nbsp; &lt;/font&gt;&lt;/p&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 589,
	&#039;title&#039; =&gt; &#039;End hand-holding: Let banks grow up&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&amp;rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&amp;nbsp; &lt;/font&gt;
&lt;/p&gt;
&#039;,
	&#039;credit_writer&#039; =&gt; &#039;The Economic Times, 10 December, 2009, http://economictimes.indiatimes.com/opinion/editorial/End-hand-holding-Let-banks-grow-up/articleshow/5320851.cms&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;end-hand-holding-let-banks-grow-up-660&#039;,
	&#039;meta_title&#039; =&gt; null,
	&#039;meta_keywords&#039; =&gt; null,
	&#039;meta_description&#039; =&gt; null,
	&#039;noindex&#039; =&gt; (int) 0,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; (int) 660,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 589
$metaTitle = &#039;LATEST NEWS UPDATES | End hand-holding: Let banks grow up&#039;
$metaKeywords = null
$metaDesc = &#039;
The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. 


The RBI is worried that stock market volatility could impact banks and,...&#039;
$disp = &#039;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&amp;rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&amp;nbsp; &lt;/font&gt;&lt;/p&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/end-hand-holding-let-banks-grow-up-660.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | End hand-holding: Let banks grow up | Im4change.org</title>
    <meta name="description" content="
The RBI has reason to be concerned. Banks&rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. 


The RBI is worried that stock market volatility could impact banks and,..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>End hand-holding: Let banks grow up</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <p align="justify"><font >The RBI has reason to be concerned. Banks&rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. </font></p><p align="justify"><font >The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. </font></p><p align="justify"><font >Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. </font></p><p align="justify"><font >On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. </font></p><p align="justify"><font >For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. </font></p><p align="justify"><font >As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&nbsp; </font></p>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$maxBufferLength = (int) 8192
$file = '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php'
$line = (int) 853
$message = 'Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853'
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 48
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Code Context
            $response->getStatusCode(),

            ($reasonPhrase ? ' ' . $reasonPhrase : '')

        ));
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr680df3cf46632-trace').style.display = (document.getElementById('cakeErr680df3cf46632-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr680df3cf46632-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr680df3cf46632-code').style.display = (document.getElementById('cakeErr680df3cf46632-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr680df3cf46632-context').style.display = (document.getElementById('cakeErr680df3cf46632-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr680df3cf46632-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr680df3cf46632-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 589,
		&#039;title&#039; =&gt; &#039;End hand-holding: Let banks grow up&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&amp;rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&amp;nbsp; &lt;/font&gt;
&lt;/p&gt;
&#039;,
		&#039;credit_writer&#039; =&gt; &#039;The Economic Times, 10 December, 2009, http://economictimes.indiatimes.com/opinion/editorial/End-hand-holding-Let-banks-grow-up/articleshow/5320851.cms&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;end-hand-holding-let-banks-grow-up-660&#039;,
		&#039;meta_title&#039; =&gt; null,
		&#039;meta_keywords&#039; =&gt; null,
		&#039;meta_description&#039; =&gt; null,
		&#039;noindex&#039; =&gt; (int) 0,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; (int) 660,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [[maximum depth reached]],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 589,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | End hand-holding: Let banks grow up&#039;,
	&#039;metaKeywords&#039; =&gt; null,
	&#039;metaDesc&#039; =&gt; &#039;
The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. 


The RBI is worried that stock market volatility could impact banks and,...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&amp;rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&amp;nbsp; &lt;/font&gt;&lt;/p&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 589,
	&#039;title&#039; =&gt; &#039;End hand-holding: Let banks grow up&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&amp;rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&amp;nbsp; &lt;/font&gt;
&lt;/p&gt;
&#039;,
	&#039;credit_writer&#039; =&gt; &#039;The Economic Times, 10 December, 2009, http://economictimes.indiatimes.com/opinion/editorial/End-hand-holding-Let-banks-grow-up/articleshow/5320851.cms&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;end-hand-holding-let-banks-grow-up-660&#039;,
	&#039;meta_title&#039; =&gt; null,
	&#039;meta_keywords&#039; =&gt; null,
	&#039;meta_description&#039; =&gt; null,
	&#039;noindex&#039; =&gt; (int) 0,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; (int) 660,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 589
$metaTitle = &#039;LATEST NEWS UPDATES | End hand-holding: Let banks grow up&#039;
$metaKeywords = null
$metaDesc = &#039;
The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. 


The RBI is worried that stock market volatility could impact banks and,...&#039;
$disp = &#039;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&amp;rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&amp;nbsp; &lt;/font&gt;&lt;/p&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/end-hand-holding-let-banks-grow-up-660.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | End hand-holding: Let banks grow up | Im4change.org</title>
    <meta name="description" content="
The RBI has reason to be concerned. Banks&rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. 


The RBI is worried that stock market volatility could impact banks and,..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>End hand-holding: Let banks grow up</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <p align="justify"><font >The RBI has reason to be concerned. Banks&rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. </font></p><p align="justify"><font >The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. </font></p><p align="justify"><font >Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. </font></p><p align="justify"><font >On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. </font></p><p align="justify"><font >For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. </font></p><p align="justify"><font >As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&nbsp; </font></p>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$reasonPhrase = 'OK'
header - [internal], line ??
Cake\Http\ResponseEmitter::emitStatusLine() - CORE/src/Http/ResponseEmitter.php, line 148
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 54
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
Code Context
                    $value

                ), $first);

                $first = false;
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr680df3cf46632-trace').style.display = (document.getElementById('cakeErr680df3cf46632-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr680df3cf46632-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr680df3cf46632-code').style.display = (document.getElementById('cakeErr680df3cf46632-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr680df3cf46632-context').style.display = (document.getElementById('cakeErr680df3cf46632-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr680df3cf46632-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr680df3cf46632-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 589,
		&#039;title&#039; =&gt; &#039;End hand-holding: Let banks grow up&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&amp;rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&amp;nbsp; &lt;/font&gt;
&lt;/p&gt;
&#039;,
		&#039;credit_writer&#039; =&gt; &#039;The Economic Times, 10 December, 2009, http://economictimes.indiatimes.com/opinion/editorial/End-hand-holding-Let-banks-grow-up/articleshow/5320851.cms&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;end-hand-holding-let-banks-grow-up-660&#039;,
		&#039;meta_title&#039; =&gt; null,
		&#039;meta_keywords&#039; =&gt; null,
		&#039;meta_description&#039; =&gt; null,
		&#039;noindex&#039; =&gt; (int) 0,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; (int) 660,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [[maximum depth reached]],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 589,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | End hand-holding: Let banks grow up&#039;,
	&#039;metaKeywords&#039; =&gt; null,
	&#039;metaDesc&#039; =&gt; &#039;
The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. 


The RBI is worried that stock market volatility could impact banks and,...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&amp;rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&amp;nbsp; &lt;/font&gt;&lt;/p&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 589,
	&#039;title&#039; =&gt; &#039;End hand-holding: Let banks grow up&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. &lt;/font&gt;
&lt;/p&gt;
&lt;p align=&quot;justify&quot;&gt;
&lt;font face=&quot;arial,helvetica,sans-serif&quot; size=&quot;3&quot;&gt;As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&amp;rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&amp;nbsp; &lt;/font&gt;
&lt;/p&gt;
&#039;,
	&#039;credit_writer&#039; =&gt; &#039;The Economic Times, 10 December, 2009, http://economictimes.indiatimes.com/opinion/editorial/End-hand-holding-Let-banks-grow-up/articleshow/5320851.cms&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;end-hand-holding-let-banks-grow-up-660&#039;,
	&#039;meta_title&#039; =&gt; null,
	&#039;meta_keywords&#039; =&gt; null,
	&#039;meta_description&#039; =&gt; null,
	&#039;noindex&#039; =&gt; (int) 0,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; (int) 660,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 589
$metaTitle = &#039;LATEST NEWS UPDATES | End hand-holding: Let banks grow up&#039;
$metaKeywords = null
$metaDesc = &#039;
The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. 


The RBI is worried that stock market volatility could impact banks and,...&#039;
$disp = &#039;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;The RBI has reason to be concerned. Banks&amp;rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. &lt;/font&gt;&lt;/p&gt;&lt;p align=&quot;justify&quot;&gt;&lt;font &gt;As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&amp;rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&amp;nbsp; &lt;/font&gt;&lt;/p&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/end-hand-holding-let-banks-grow-up-660.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | End hand-holding: Let banks grow up | Im4change.org</title>
    <meta name="description" content="
The RBI has reason to be concerned. Banks&rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. 


The RBI is worried that stock market volatility could impact banks and,..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>End hand-holding: Let banks grow up</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <p align="justify"><font >The RBI has reason to be concerned. Banks&rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. </font></p><p align="justify"><font >The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. </font></p><p align="justify"><font >Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. </font></p><p align="justify"><font >On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. </font></p><p align="justify"><font >For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. </font></p><p align="justify"><font >As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&nbsp; </font></p>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$cookies = []
$values = [
	(int) 0 => 'text/html; charset=UTF-8'
]
$name = 'Content-Type'
$first = true
$value = 'text/html; charset=UTF-8'
header - [internal], line ??
Cake\Http\ResponseEmitter::emitHeaders() - CORE/src/Http/ResponseEmitter.php, line 181
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 55
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

<head>

    <link rel="canonical" href="<?php echo Configure::read('SITE_URL'); ?><?php echo $urlPrefix;?><?php echo $article_current->category->slug; ?>/<?php echo $article_current->seo_url; ?>.html"/>

    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>

$viewFile = '/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp'
$dataForView = [
	'article_current' => object(App\Model\Entity\Article) {

		'id' => (int) 589,
		'title' => 'End hand-holding: Let banks grow up',
		'subheading' => '',
		'description' => '<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">The RBI has reason to be concerned. Banks&rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. </font>
</p>
<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. </font>
</p>
<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. </font>
</p>
<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. </font>
</p>
<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. </font>
</p>
<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&nbsp; </font>
</p>
',
		'credit_writer' => 'The Economic Times, 10 December, 2009, http://economictimes.indiatimes.com/opinion/editorial/End-hand-holding-Let-banks-grow-up/articleshow/5320851.cms',
		'article_img' => '',
		'article_img_thumb' => '',
		'status' => (int) 1,
		'show_on_home' => (int) 1,
		'lang' => 'EN',
		'category_id' => (int) 16,
		'tag_keyword' => '',
		'seo_url' => 'end-hand-holding-let-banks-grow-up-660',
		'meta_title' => null,
		'meta_keywords' => null,
		'meta_description' => null,
		'noindex' => (int) 0,
		'publish_date' => object(Cake\I18n\FrozenDate) {},
		'most_visit_section_id' => null,
		'article_big_img' => null,
		'liveid' => (int) 660,
		'created' => object(Cake\I18n\FrozenTime) {},
		'modified' => object(Cake\I18n\FrozenTime) {},
		'edate' => '',
		'tags' => [[maximum depth reached]],
		'category' => object(App\Model\Entity\Category) {},
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[hasErrors]' => false,
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'Articles'
	
	},
	'articleid' => (int) 589,
	'metaTitle' => 'LATEST NEWS UPDATES | End hand-holding: Let banks grow up',
	'metaKeywords' => null,
	'metaDesc' => '
The RBI has reason to be concerned. Banks&rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. 


The RBI is worried that stock market volatility could impact banks and,...',
	'disp' => '<p align="justify"><font >The RBI has reason to be concerned. Banks&rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. </font></p><p align="justify"><font >The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. </font></p><p align="justify"><font >Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. </font></p><p align="justify"><font >On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. </font></p><p align="justify"><font >For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. </font></p><p align="justify"><font >As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&nbsp; </font></p>',
	'lang' => 'English',
	'SITE_URL' => 'https://im4change.in/',
	'site_title' => 'im4change',
	'adminprix' => 'admin'
]
$article_current = object(App\Model\Entity\Article) {

	'id' => (int) 589,
	'title' => 'End hand-holding: Let banks grow up',
	'subheading' => '',
	'description' => '<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">The RBI has reason to be concerned. Banks&rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. </font>
</p>
<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. </font>
</p>
<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. </font>
</p>
<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. </font>
</p>
<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. </font>
</p>
<p align="justify">
<font face="arial,helvetica,sans-serif" size="3">As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&nbsp; </font>
</p>
',
	'credit_writer' => 'The Economic Times, 10 December, 2009, http://economictimes.indiatimes.com/opinion/editorial/End-hand-holding-Let-banks-grow-up/articleshow/5320851.cms',
	'article_img' => '',
	'article_img_thumb' => '',
	'status' => (int) 1,
	'show_on_home' => (int) 1,
	'lang' => 'EN',
	'category_id' => (int) 16,
	'tag_keyword' => '',
	'seo_url' => 'end-hand-holding-let-banks-grow-up-660',
	'meta_title' => null,
	'meta_keywords' => null,
	'meta_description' => null,
	'noindex' => (int) 0,
	'publish_date' => object(Cake\I18n\FrozenDate) {},
	'most_visit_section_id' => null,
	'article_big_img' => null,
	'liveid' => (int) 660,
	'created' => object(Cake\I18n\FrozenTime) {},
	'modified' => object(Cake\I18n\FrozenTime) {},
	'edate' => '',
	'tags' => [],
	'category' => object(App\Model\Entity\Category) {},
	'[new]' => false,
	'[accessible]' => [
		'*' => true,
		'id' => false
	],
	'[dirty]' => [],
	'[original]' => [],
	'[virtual]' => [],
	'[hasErrors]' => false,
	'[errors]' => [],
	'[invalid]' => [],
	'[repository]' => 'Articles'

}
$articleid = (int) 589
$metaTitle = 'LATEST NEWS UPDATES | End hand-holding: Let banks grow up'
$metaKeywords = null
$metaDesc = '
The RBI has reason to be concerned. Banks&rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. 


The RBI is worried that stock market volatility could impact banks and,...'
$disp = '<p align="justify"><font >The RBI has reason to be concerned. Banks&rsquo; exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. </font></p><p align="justify"><font >The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. </font></p><p align="justify"><font >Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. </font></p><p align="justify"><font >On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. </font></p><p align="justify"><font >For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. </font></p><p align="justify"><font >As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks&rsquo; growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.&nbsp; </font></p>'
$lang = 'English'
$SITE_URL = 'https://im4change.in/'
$site_title = 'im4change'
$adminprix = 'admin'

include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51

End hand-holding: Let banks grow up

The RBI has reason to be concerned. Banks’ exposure to mutual funds (MFs) has more than trebled, from Rs 45,000 crore to Rs 1,64,000 crore, during March-November 2009. The RBI is worried that stock market volatility could impact banks and, hence, endanger financial stability. Hence, the overall cap on stock market exposure as part of macro-prudential regulation. Currently, the aggregate exposure of a bank to the capital markets in all forms (both fund-based and non-fund-based) is capped at 40% of its net worth at the end of the previous year, with direct exposure capped at 20%. However, the problem is that while investment in equity-oriented MFs is included within the direct exposure limit, investment in exclusively debt-oriented MFs is not. Hence, faced with the prospect of ever-larger sums of bank funds being invested in MFs, the RBI is reportedly toying with the idea of doing what it does best: laying down some more rules! It is contemplating bringing investment debt MFs within a separate overall cap for MFs. On paper, this might seem a good way of saving banks from their own folly. Except that there is a limit to how far the RBI can do this. For one, funds are fungible and if banks wish, they can always find ways to circumvent the tightest of regulations. For instance, there is nothing to prevent a corporate from borrowing from a bank and using the funds to invest in the stock market. In practice, it is next to impossible to monitor the end-use of funds. It would, therefore, be far better for the RBI to caution banks of the dangers of excess stock market exposure, monitor their position through periodic inspection/feedback, and pull up those banks that it feels are excessively exposed rather than lay down even more strictures in a system that is already enormously rule-bound. As long as the RBI continues to micro-manage banks, it is unlikely bank boards will ever play the role expected of them. Beyond that, the RBI would do well to examine whether banks’ growing investment in MFs is symptomatic of a graver macro-economic disequilibrium: excess liquidity in the system.