Traditionally, the Reserve Bank of India has been very conservative when it comes to regulatory controls. It has often erred on the side of caution. In fact, some believe that this has stifled innovation and agility of banks.
Not any longer. The just presented RBI credit policy has flipped a switch, as it were. It has freed banks from stringent controls, provided more play for markets, and initiated a very specific focus on the ease of doing business.
The obvious questions are, what will it do to India’s ecosystem for credit? More importantly, will this freedom bring with it increased risks to the banks and thereby the financial system?
To answer all this and more, StratNewsGlobal.Tech spoke to Ashima Goyal in Capital Calculus. She is a professor at IGIDR and a former member of the Monetary Policy Committee, and, of course, a previous guest on the show.
Anil Padmanabhan has been a journalist for the last 36 years. He has worked in various capacities in several publications including Afternoon Despatch & Courier, Press Trust of India, Business Standard, Mint and was based in New York for India Today. He was a Nieman Fellow in 2001. He tweets at @capitalcalculus.
