RBI governor delivers CK Prahalad Memorial Lecture on ‘Reforming the Financial Sector’
GN Bureau | September 18, 2015
India can be far more successful and far more influential than it is today, believes RBI governor Raghuram Rajan.
Delivering the Fourth C K Prahalad Memorial Lecture organized by the Ananta Aspen Centre and Confederation of Indian Industry (CII) in Mumbai on Friday, he was reflecting on the theme of “Reforming the Financial Sector”. The discussion was chaired by Rahul Bajaj, chairman, Bajaj Auto Limited.
Rajan stressed that in difficult times, environment for growth has to be achieved in the right way by working hard towards recovery and aiming at sustainable growth. “While the monetary policy will be accommodative there is room to expand sustainable growth potential. By continuing with reforms that the government and regulators have announced a sustainable growth potential can be achieved,” he said.
He asserted that the RBI would focus on keeping the interest rates low in the near term as well as future to have a moderate interest rate regime to help borrowers as well as the savers. It will also focus on cleaning up the banking sector of the distressed assets, so that it can fund the growth agenda, he said.
Rajan also suggested that India must resist special interest rates for targeted stimulus, long tax breaks, subventions, subsidies, directed credit, all of which historically rendered industry un-competitiveness with government over extended and country incapable of gaining its rightful position among nations.
Reflecting on what RBI is trying to do and what more it needs to do in improving the environment of the financial sector, Rajan elaborated on four aspects: the need to foster competition and innovation; creating hospitable environment to those who don’t belong to the club; dealing with distress for improving structures; and strengthening human capital in the financial sector.
Read the text of the lecture here: https://www.rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=976
In the organized manufacturing and service sector, employment is expected to increase from the current 38 million to 46-48 million by 2022, a new study has found. All the new forms of employment are expected to add a further 20% - 25% to the workforce of the current deﬁned “or
A day before a Supreme Court bench takes up petitions opposing mandatory Aadhaar linkage with several government services, the government has withdrawn its December 31 deadline to link Aadhaar with bank ac
A wide swathe of economic activities was nationalised in India after independence, and especially during Indira Gandhi’s prime ministership, for predominantly political reasons. But state ownership was also justified as a way to correct market failures, increase investible surpluses, and pursue wider
Calling for improved communication in the field of science and technology, eminent scientist and chairman, National Innovation Foundation, Dr Raghunath Mashelkar has said that it is important to advance knowledge and people need to know how that knowledge is for their own good. “Public awaren
Did the Rajasthan health department do the right thing by sending data on Muslim staff to centre?
Three in four abortions in India are through drugs from chemists and informal vendors rather than from health facilities, said a report in The Lancet. An estimated 15.6 million abortions were performed in the country in 2015, reports The Lancet in its latest released paper on ‘Inciden