Defaulters should not flaunt lifestyle: RBI governor Raghuram Rajan
In a stern message to wilful defaulters, Reserve Bank Governor Raghuram Rajan said rich businesses owing large sums to banks should behave and not flaunt "massive birthday bashes" while still in serious debt.
Davos: In a stern message to wilful defaulters, Reserve Bank Governor Raghuram Rajan said rich businesses owing large sums to banks should behave and not flaunt "massive birthday bashes" while still in serious debt. In a reply to a question that India has borrowers too big to repossess, at a World Economic Forum discussion in Davos, he said, "We are trying to change that. Let me emphasise that this is not about big businesses, not about rich people. This is not Robin Hood issue. This is an issue about the wrongdoer amongst the community, who had raised the cost of borrowing for everybody."
RBI governor Raghuram Rajan in Davos on Saturday. PIC/PTI
"If we can get those guys to behave... If you flaunt your massive birthday bashes, even while owing the system a lot of money, it does seem to public that I don’t care," he said.
Describing the current level of economic reforms in India as moving in the right direction but inadequate, Reserve Bank of India Governor Raghuram Rajan has said that business in the country needs a better environment.
"Let me put it this way... the direction is the right one. The level is wrong. We have too much of the wrong kind of regulation and too little of the right kind of regulation," Rajan said on Saturday. He spoke of the regime for businesses sought to be dismantled. "For example, last week, the prime minister inaugurated a programme called Start-up India, which is about eliminating bureaucratic hurdles in starting new business. New business had to register with 10, 15, 20 different authorities, including the pension fund," Rajan said. "You have one employee, why do you need a pension fund at this point? So the idea here is to make it simpler to start, but also remove the inspections," he added.