NEW DELHI: Veteran banker Uday Kotak on Wednesday mentioned regulators should not be too conservative and cautious however should respond fast to “accidents” in the financial sector.
“Zero accident policy is also dangerous. If you are wanting to grow fast, there will be need for good regulations. We may have some accidents but it is also how fast we respond and correct the accident,” the founder director of Kotak Mahindra Bank mentioned at an occasion organised by AIMA (All India Management Association) in the nationwide capital.
He mentioned the scars of the previous should not make regulators too conservative or cautious however there should be a greater regulatory atmosphere.
On the Paytm Payments Bank Ltd (PPBL) matter, Kotak mentioned he would not like to touch upon particular person firm however mentioned “RBI knows more than You and I.”
Paytm Payments Bank Ltd, an entity promoted by One97 Communications Ltd, confronted regulatory actions by RBI for failure to adjust to host of regulatory norms, together with Know Your Customer (KYC) pointers.
Last week, RBI suggested prospects in addition to retailers of PPBL to shift their accounts to different banks by March 15, giving 15 extra days to the beleaguered entity to shut most of its operations, together with deposit and credit score transactions.
Kotak mentioned RBI has carried out an outstanding job as a regulator in the previous couple of years, and ensured financial stability together with good macro financial administration regardless of the coronavirus pandemic.
In a bid to turn into a $30 trillion financial system by 2047, Kotak mentioned the expansion fee should be 7.5-8 per cent.
About the Insolvency and Bankruptcy Code (IBC), he mentioned it’s a good regulation however the decision takes too lengthy.
“How do you have an Insolvency and Bankruptcy Code which takes years for resolution? So, very good concept, good law but devil is in the details and devil is in the execution. Therefore, the speed of resolution is a problem,” he mentioned.
He additionally mentioned that India has reworked from being a nation of savers to buyers with an increasing number of individuals parking their surplus fund in mutual funds and fairness market.
“Zero accident policy is also dangerous. If you are wanting to grow fast, there will be need for good regulations. We may have some accidents but it is also how fast we respond and correct the accident,” the founder director of Kotak Mahindra Bank mentioned at an occasion organised by AIMA (All India Management Association) in the nationwide capital.
He mentioned the scars of the previous should not make regulators too conservative or cautious however there should be a greater regulatory atmosphere.
On the Paytm Payments Bank Ltd (PPBL) matter, Kotak mentioned he would not like to touch upon particular person firm however mentioned “RBI knows more than You and I.”
Paytm Payments Bank Ltd, an entity promoted by One97 Communications Ltd, confronted regulatory actions by RBI for failure to adjust to host of regulatory norms, together with Know Your Customer (KYC) pointers.
Last week, RBI suggested prospects in addition to retailers of PPBL to shift their accounts to different banks by March 15, giving 15 extra days to the beleaguered entity to shut most of its operations, together with deposit and credit score transactions.
Kotak mentioned RBI has carried out an outstanding job as a regulator in the previous couple of years, and ensured financial stability together with good macro financial administration regardless of the coronavirus pandemic.
In a bid to turn into a $30 trillion financial system by 2047, Kotak mentioned the expansion fee should be 7.5-8 per cent.
About the Insolvency and Bankruptcy Code (IBC), he mentioned it’s a good regulation however the decision takes too lengthy.
“How do you have an Insolvency and Bankruptcy Code which takes years for resolution? So, very good concept, good law but devil is in the details and devil is in the execution. Therefore, the speed of resolution is a problem,” he mentioned.
He additionally mentioned that India has reworked from being a nation of savers to buyers with an increasing number of individuals parking their surplus fund in mutual funds and fairness market.
