Terrible move for India.

Bailing out banks only gives bad actors less accountability. Iceland, for example, nationalized domestic debt (preventing mortgage foreclosures, and loss of industry) and let the banks with bad (largely speculative) international debts fail; they prosecuted the ones in charge, and saw a recovery a mere 2 years later. The US should not be viewed as a role model.

The idea seems to be to require the systemically important banks to keep more cash on hand, so they're less likely to have a problem.