Asset Quality Review (AQR) on all NBFCs suggested by ex-chief economic advisor Arvind Subramanian

Giving the example of the ongoing IL&FS crisis, the past chief economic advisor Arvind Subramanian called for an asset quality review (AQR). He Stressed that Reserve Bank should function in an autonomous way and also hit out at the recent "politicisation" of the issue, saying it is harmful to the country's interests. Subramanian proposed an AQR for non-bank lenders as well, as it's time to come clean on this problem.
He was surprised that how the IL&FS issue, which involves Rs 95,000 crore in debt, could be hidden from the world. He blames RBI for creating the IL&FS mess saying its regulatory failure that created the IL&FS mess and that RBI should be held responsible for this. According to Mr. Subramanian, RBI has a good reputation, it doesn't mean it's always right. Loans repayment problems or identify prolonged frauds of Nirav Modi and the likes, didn’t handle very well by the RBI. Now, IL&FS issue being revealed, this failure seems to surround not just with commercial banks, but also with non-bank financial companies.
Subramanian also questioned the quality of oversight mechanisms. He, however, admitted that something like an AQR will lead to a push-back from the system, but stressed that the policymakers should continue. He also said that there has to be a repair of the system when it comes to asset quality stress as we can't depend on the same system that created the problem.
Subramanian said on the issue of RBI autonomy that the independence of the RBI is sacred and so is the functional autonomy and the politicisation of the RBI board is something that might not be in the larger interest of the nation. Subramanian, who first raised the idea of using the over-usage capital of RBI in his past economic survey, repeated that the money should be used for recapitalising state-run lenders. He said that money should not be used for bridging fiscal deficit or any other government purposes.