NBFC urgent need to prioritize cleanup operations: Rajan

Mumbai, Ta. October 31, 2019, Thursday

Former non-banking finance companies (NBFCs) need a priority to clean up, Raghuram Rajan, a former governor of the Bank, said. NBFCs need to be recapitalized, he said in an interview to a TV channel.

The country's economy depends on the money system and the pace of cleanup of banks and NBFCs is accelerating. Seeds of non-performing assets (NPAs) were sown in 1-2. India is currently experiencing a significant slowdown.

Declining interest rates do not lead to growth. India needs a new generation of reforms for economic development. Rajan added that the present government has the power and power to carry out reforms.

Its Federal Reserve has done a lot of exercises to prevent recession in America The decision to postpone further reduction in interest rates is appropriate. There is political pressure on the Federal Reserve. The US government does not want interest rates that are tightening the economy.

Meanwhile, responding to the criticism of Raghuram Rajan's finance minister as governor of the Reserve Bank during the weak phase of the country's banking sector, Rajan said that he had completed his 3 percent term under the BJP government.

Rajan held the post of governor from September 5 to 9.

The task of cleaning the banks of India had begun under his own eyes, but under his own hands the work was incomplete.

However, he avoided saying more in reference to his criticism of New York in New York. He did not want to fall into any political arena on this issue but Rajan said in response to a question in the interview.

Sitaram had criticized Rajan for saying that in the previous government, only one telephone loan was given to bank loans.