Regulators need not be too conservative, should react swiftly to ‘accidents’ in financial sector: Uday Kotak | india business news
New Delhi: Experienced Banker Uday Kotak Said Wednesday that regulators should not be too conservative and cautious but should react rapidly to “accidents” financial sector,
The founding director said, “The zero accident policy is also dangerous. If you want to develop rapidly, good regulations will be needed. Some accidents may happen to us, but it also matters how fast we react.” and fix the accident.” Kotak Mahindra Bank Said at an event organized by AIMA (All India Management Association) in the national capital.
He said the scars of the past should not make regulators too conservative or cautious but there should be a better regulatory environment.
On the Paytm Payments Bank Ltd (PPBL) matter, Kotak said he would not like to comment on the individual company, but added, “reserve Bank of India Knows more than you and me.”
Paytm Payments Bank Ltd, an entity promoted by One97 Communications Ltd, faced regulatory actions by RBI for failure to comply with several regulatory norms including Know Your Customer.KYC) guidance.
Last week, the RBI had advised customers as well as traders of PPBL to transfer their accounts to other banks by March 15, giving the distressed entity 15 more days to shut down most of its operations, including deposit and credit transactions. Went.
Kotak said the RBI has done a phenomenal job as a regulator over the last few years and has ensured good macroeconomic management as well as financial stability despite the coronavirus pandemic.
Kotak said that to become a $30 trillion economy by 2047, the growth rate should be 7.5-8 percent.
Regarding Insolvency and Bankruptcy Code (IBC), he said that it is a good law but it takes a lot of time for resolution.
He said, “How do you have an Insolvency and Bankruptcy Code, which takes years to resolve? So, very good concept, good law but the devil is in the details and the devil is in the implementation. So, the speed of resolution is a problem.” ,
He also said that India has now become a nation of investors from savers and more and more people are investing their surplus money in mutual funds and equity markets.
The founding director said, “The zero accident policy is also dangerous. If you want to develop rapidly, good regulations will be needed. Some accidents may happen to us, but it also matters how fast we react.” and fix the accident.” Kotak Mahindra Bank Said at an event organized by AIMA (All India Management Association) in the national capital.
He said the scars of the past should not make regulators too conservative or cautious but there should be a better regulatory environment.
On the Paytm Payments Bank Ltd (PPBL) matter, Kotak said he would not like to comment on the individual company, but added, “reserve Bank of India Knows more than you and me.”
Paytm Payments Bank Ltd, an entity promoted by One97 Communications Ltd, faced regulatory actions by RBI for failure to comply with several regulatory norms including Know Your Customer.KYC) guidance.
Last week, the RBI had advised customers as well as traders of PPBL to transfer their accounts to other banks by March 15, giving the distressed entity 15 more days to shut down most of its operations, including deposit and credit transactions. Went.
Kotak said the RBI has done a phenomenal job as a regulator over the last few years and has ensured good macroeconomic management as well as financial stability despite the coronavirus pandemic.
Kotak said that to become a $30 trillion economy by 2047, the growth rate should be 7.5-8 percent.
Regarding Insolvency and Bankruptcy Code (IBC), he said that it is a good law but it takes a lot of time for resolution.
He said, “How do you have an Insolvency and Bankruptcy Code, which takes years to resolve? So, very good concept, good law but the devil is in the details and the devil is in the implementation. So, the speed of resolution is a problem.” ,
He also said that India has now become a nation of investors from savers and more and more people are investing their surplus money in mutual funds and equity markets.
