New Delhi: Reserve Bank Governor Raghuram Rajan on Thursday said it is too early to declare victory over the high non-performing assets in the system, which will improve only with an uptick in growth expected during this fiscal.
“I think, the most immediate problem we have to confront is that of rising level of stressed assets in the banking system.
Fortunately in the last quarter those levels of stressed assets tapered off or flattened out. But, it is too early to declare victory,” he told reporters here after the central board meeting of the monetary authority. Mr Rajan, who has initiated a slew of measures, including asking banks to work together to spot stress early, said the remedy for this lies in “stronger governance actions”
Meanwhile, To safeguard investors from fraudulent money pooling schemes, the government on Thursday proposed legislative initiatives to regulate firms engaging in prize chits and money circulation schemes.
“As part of the legislative initiatives under financial sector reforms, it is proposed to bridge the regulatory gap under the Prize Chits and Money Circulation Scheme (Banning) Act, 1978,” FM Arun Jaitley said.
“This step is expected to facilitate effective regulation of firms and entities which have duped a large number of poor and vulnerable people in India,” he said.
