Rajan was interacting with American financial institutional investors in New York last week at an event which was organised by US India Business Council (
Rajan said that this step would be taken with the intention of giving banks more powers to allow for greater recovery of money and give relevant stakeholders an active role in the resolution process. He further stated that he is optimistic about the passage of GST and the opportunities for compromise that will help realise its goals, which are: a unified tax market, improvement in tax collection and broadening the tax base.
The discussion, which was led by USIBC chairman and president and CEO of
USIBC was all praises for the Indian government for the recent reform, which was introduced in private sector banking, permitting the total foreign holding in private banks to have a composite cap of 74% and eliminating existing sub-limits for FDI and FII capital, which earlier were at 49%.
USIBC statement said that this reform is a critical step that would support credit growth in the financial markets and the Indian economy, allowing banks and investors with greater flexibility to raise capital and to meet the stringent capital adequacy norms.
"As global commercial institutions and investors, we remain profoundly committed to India as we continue to provide a variety of long-term resources - including capital, technology, and know-how - which will help advance the Prime Minister's goals of financial stability, economic growth, digital access, and financial inclusion," Banga said.
Mukesh Aghi, the president of USIBC said that the Indian financial markets are an important driver for the economic growth of the country. "There needs to be a level playing field for global participants in India's financial markets with clear, nationality-neutral regulations across all asset classes," he said.