Supervisors must respond quickly to accidents in the financial sector: Uday Kotak | Financial News – Business Standard
Kotak Mahindra Bank Managing Director and Chief Executive Officer Uday Kotak
Veteran banker Uday Kotak said on Wednesday that regulators should not be too conservative and cautious but should respond quickly to “accidents” in the financial sector.
“A zero accident policy is also dangerous. If you want to grow quickly, there will be a need for good regulations. We may have accidents, but it also depends on how quickly we respond and correct the accident,” said the founder and director of 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 too cautious, but that a better regulatory environment should be created.
On the Paytm Payments Bank Ltd (PPBL) issue, Kotak said he did not want to comment on individual companies but said, “RBI knows more than you and me.” Paytm Payments Bank Ltd, an entity promoted by One97 Communications Ltd, faced regulatory action from RBI for non-compliance with a host of regulatory norms, including Know Your Customer (KYC) guidelines.
Last week, RBI advised both customers and traders of PPBL to shift their accounts to other banks by March 15, giving the beleaguered entity another 15 days to close most of its operations, including deposit and credit operations.
Kotak said RBI has done a phenomenal job as a regulator in the last few years and has ensured financial stability and good macroeconomic management despite the coronavirus pandemic.
In a bid to become a $30 trillion economy by 2047, Kotak said the growth rate should be 7.5 to 8 percent.
On the Insolvency and Bankruptcy Code (IBC), he said it is a good law but its resolution is taking too long.
“How do you come up with an insolvency and bankruptcy law that takes years to be resolved? So a very good concept, good legislation, but the devil is in the details and the devil is in the implementation. That is why the speed of the solution a problem,” he said. .
He also said India has transformed from a nation of savers to investors, with more and more people parking their excess funds in mutual funds and the stock market.
Disclosure: Entities controlled by the Kotak family have a significant stake in Business Standard Pvt Ltd
First print: February 22, 2024 | 1:09 am IST