On Saturday, the Finance Minister Arun Jaitley said that as the economy progresses, we have to alter and relax the guidelines keeping in mind the ground reality and current scenario. Addressing the meet organized by the IDFC here, he said the center is continuously getting several chances to interact with various stakeholders.

Jaitley asserted that for any regulatory system, the discussion with the stakeholder has to be of very high quality which will perhaps lead to a revisiting of the traditional thoughts and outlook. He further added that as you have seen, that there are many supervisors those who now circulate their approach papers, tentative drafts, they organize interaction meetings, keep interacting on an individual basis, meet groups of stakeholders together and also improve upon what is being said.

He stated that “now the economy of the country is progressing, all the rules and policies need to be altered and relaxed keeping in mind the current ground conditions, where all regulation needs to be relaxed or needs to be altered depending on the ground situation, I think this would be quite useful in the whole process,” he said.

RBI Deputy Governor Viral Acharya’s comments Friday asserting for “effective independence” of the central bank. Giving the example of the economic instability in Argentina and turkey he said that those governments who do not give importance to the central bank’s freedom would always have to go through the rage of financial markets.

In the earlier months, it seems that the Reserve Bank of India has been differing on certain matters, such as those pertaining to payment systems regulator and Prompt Corrective Action (PCA) norms for banks. Arun Jaitley further stated that IBC code is very helpful for the banking sector in cleaning up bad loans. Also, defaulters are scared of IBC and coming forward in clearing their dues from the banks.

Finance Minister said that the involuntary significances of IBC were that potential defaulters are aware that if they will go beyond the limits and cross the red line, they will be thrown out and there is no chance to get back.