Updated February 21st, 2024 at 19:32 IST

Regulators should respond fast to 'accidents' in financial sector: Uday Kotak

The recent regulatory actions against PPBL, prompted by non-compliance issues, led the RBI to advise customers and merchants to transition accounts.

Reported by: Business Desk
RBI Issues Warning Against KYC Update Frauds, Read More | Image:ANI
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Uday Kotak on Paytm Controversy: Veteran banker Uday Kotak has advocated for a balanced regulatory approach, focussing on the need for a progressive environment. While refraining from specific comments on the Paytm Payments Bank Ltd (PPBL) matter, Kotak highlighted the regulator's comprehensive knowledge, particularly the Reserve Bank of India (RBI), in dealing with regulatory issues, including KYC compliance concerns. Kotak also added that regulators should respond fast to accidents in the financial sector. 

The recent regulatory actions against PPBL, prompted by non-compliance issues, led the RBI to advise customers and merchants to transition accounts to other banks by March 15. 

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Looking forward, Kotak outlined his vision for India's economic growth, aiming for a $30 trillion economy by 2047 with a suggested growth rate of 7.5-8 percent.

Insolvency and Bankruptcy

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Discussing the Insolvency and Bankruptcy Code (IBC), Kotak acknowledged its positive attributes but voiced concerns about the protracted resolution process. While praising the concept and legislation, he emphasized the need to address execution challenges to expedite resolutions effectively.

In addition, Kotak shed light on India's changing investment scenario, highlighting a shift from a saver-centric nation to one with an increasing number of individuals participating in mutual funds and the equity market. This transformation, according to Kotak, reflects evolving financial behaviors in the country.

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Published February 21st, 2024 at 19:28 IST