The Hindu Business Line
NITI Aayog’s Kant calls for new rules to ensure financial discipline in borrowers
The government and the Reserve Bank will have to bring in a new set of regulations to ensure that borrowers repay their debt on time following the Supreme Court striking down an earlier rule of the monetary authority, NITI Aayog Chief Executive Amitabh Kant said on Wednesday.
Amidst a rash of announcements over income support schemes, the bureaucrat also stressed on the need to ensure higher growth to fund such payouts.
With the Supreme Court Amitabh Kant, CEO, NITI Aayog
striking down the February 12, 2018 RBI circular on NPAs as ultra vires, the issue needs to be relooked by both the RBI and government to arrive at a new regulation that will ensure financial discipline in borrowers, he told reporters.
Speaking on the side-lines of a conference of the world federation stock exchanges here, Kant said such a move, ensuring timely repayment and resolution of stressed assets, is essential for long-term growth. Kant said a lot of work has been done by the government and the RBI to bring in financial discipline and good regulation to end crony capitalism.
Legal and industry experts have voiced concern over the order.