What Is Zero Accident Policy? Uday Kotak Cautioned Entrepreneurs Not To Follow

Eminent banker Uday Kotak has flagged the dangers of extreme risk aversion in India’s economic policy, cautioning that a rigid “zero-accident” approach could retard the country's growth momentum.

In a conversation with Republic Media Network’s Editor-in-Chief Arnab Goswami during the Legends series, presented by Ravin Group and co-powered by Radico Khaitan and Reliance Digital, the founder of Kotak Mahindra Bank shared a nuanced view on the delicate balance between caution and ambition in the financial sector.

“We should not move to a situation of zero accidents,” Kotak said during the discussion. “Minimizing accidents is necessary, but setting a goal of absolutely no accidents can become a serious roadblock to growth.”

What is this zero-accident policy?

In layman's terms, a zero-accident policy is a strict rule or approach where the goal is to completely avoid any mistakes, failures, or accidents, no matter how small. For example, in banking or business, it means being so cautious that no risky loans are given, even if they might help a business grow.

Also Read: India’s Next Big Bet? Uday Kotak Says It’s Not Tech—It’s Manufacturing | Republic World

Why is it prevalent in the banking sector?

Reflecting on the credit surge and subsequent crisis that plagued Indian banks between 2008 and 2014, Kotak acknowledged the sector's “overreach” during that period.

The backlash, he noted, led to an understandable sense of caution within the system, particularly among lenders. But he warned that overcorrecting in the opposite direction may undermine the country’s development trajectory.

“What we saw in those years shook the foundations of Indian banking,” Kotak remarked. “Lenders became understandably hesitant to take bold calls. But now, looking ahead, we must aim for a framework that supports enterprise and development, not one that is paralyzed by the fear of failure.”

Kotak’s statement comes at a time when India’s financial institutions are being encouraged to expand credit responsibly to support economic revival. His message adds to the ongoing debate on how India can maintain financial discipline without compromising on growth or innovation.

This session was part of Republic Media Network's "Legends" series, an ongoing tribute series celebrating iconic Indians who have shaped the nation through excellence and inspiration. After powerful episodes honouring tennis icon Leander Paes and sarod maestro Ustad Amjad Ali Khan, this edition featured Uday Kotak, a visionary leader who transformed Indian banking and inspired generations of entrepreneurs.

Presented by Ravin Group and co-powered by Radico Khaitan and Reliance Digital, the session explored Kotak’s legacy, his views on India’s entrepreneurial ecosystem, and his belief that sustainable economic growth must be built on enterprise and innovation rather than speculative gains.