The dangers of the RBI vs government battle that's brewing A mole in the Indian Banks’ Association (IBA) headquarters in Mumbai reports a sense of quiet satisfaction instead of the usually sombre mood among bankers who come to IBA’s Cuffe Parade office, seeking its intervention with banking sector regulator, Reserve Bank of India (RBI).No prizes for guessing why. Over the last few months, RBI has been hauled up by more than one authority — and on more than one occasion.Hence the schadenfreude (pleasure derived at another’s misfortune) among bankers, many of whom have been at the receiving end of RBI’s ivory tower approach to regulation. After all, it’s not often the regulator gets a taste of its own medicine.Get Up From the Wrong SideThe most recent instance is of the Supreme Court pulling up RBI for failing to make its inspection reports public. Prior to that, the apex court declared RBI’s February 12, 2018, circular ultra vires or beyond RBI’s legal authority. Striking it down in toto, the apex court declared RBI could not apply a blanket rule on non-repayment of loans to all bank borrowers, but could only do so on a case-by case basis.These are not the only instances where the once-invincible RBI has been put on the mat.