Fixing corporates necessary along with banks for recovery: RBI Dy Guv

Stressing on the requirement of a strong analytics in credit data network in the country, RBI deputy governor Viral Acharya on Friday said along with the strengthening the banks, fixing of corporates was also necessary for credit recovery in the economy at its full potential.

Addressing the Indian Chamber of Commerce banking conclave here, he said fixing banks alone will not pick up credit to its full potential. There is need to fix underlying corporates too as there may be excess capacity in the sector and requires to be addressed.

The view was, however, his own and not that of RBI's, Acharya said.

Advocating data analytics in credit industry, he said standardisation of data was FIRST required and he will try to encourage RBI in this direction. Asked whether he will try to push for a strong credit registry kind of infrastructure in the country, the RBI deputy governor said "Absolutely. Will push this as a longterm agenda, but need to develop data standard, collection and then deciminate." Stating that RBI has a role in such efforts, Acharya said "not everything can come from them (RBI). There are large banks and strong SME lenders and they can also take a lead in building the ecosystem."

In his speech Acharya said RBI could act as an aggregator for the data generated from such system. He, however, declined to say anything about the new banking ordinance norms. "You will come to see soon," he said.