Uday Kotak
, a seasoned banker, expressed on Wednesday that
regulators
should not be overly cautious or conservative, but rather respond swiftly to “accidents” in the
financial sector
.
He stated at an AIMA (All India Management Association) event in the national capital that a “zero accident policy” can also be risky. For rapid growth, robust regulations are necessary.
Accidents may occur, but the key is how quickly we respond and rectify the accident.
Kotak emphasized that past scars should not make regulators overly cautious or conservative, and that a better regulatory environment is needed.
“RBI knows more than You and I”
Regarding the issue with Paytm Payments Bank Ltd (PPBL), Kotak refrained from commenting on the individual company, stating that “RBI knows more than You and I.”
Paytm Payments Bank Ltd, a subsidiary of One97 Communications Ltd, faced regulatory actions by
RBI
for failing to comply with a range of regulatory norms, including Know Your Customer (KYC) guidelines.
Recently, RBI advised PPBL’s customers and merchants to transfer their accounts to other banks by March 15, providing the troubled entity with an additional 15 days to cease most of its operations, including deposit and credit transactions.
Kotak praised RBI’s performance as a regulator in recent years, stating that it has ensured financial stability and good macroeconomic management despite the coronavirus pandemic.
To achieve a $30 trillion economy by 2047, Kotak suggested a growth rate of 7.5-8 per cent.
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