The Indian banking sector needs to be made more vibrant, and improving the capabilities of existing banks could be one of the ways to do it, according to RBI governor Raghuram Rajan.
“We have to do a lot more things to make our banking sector more vibrant. The entry of new and different kinds of banks will help. But also, improving the capabilities of existing banks is also extremely important for which the asset clean up is probably the answer,” Rajan said, while speaking at the Singapore Symposium organised by CII. “We have many new technology that allows us to introduce new instruments and new set of participants in the market and we have to make sure that we do it in a safe way,” Rajan added.
Clearing his stance over global downturns helping India, Rajan said that India is not immune to them. “One of the mistakes that you make sometimes in India is seeing the downturn elsewhere as necessarily beneficial for us. I think that we would never benefit from another large country doing badly,” Rajan said.
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