Nageswaran said at an event here that regulations for the financial sector can stop ‘dacoity’ but this crime can be curbed only when the dacoit himself decides to reform.
Chief Economic Advisor (CEA) V Ananth Nageswaran on Wednesday asked the finance industry to exercise restraint and rein in market distorting activities, mis-selling of products and misuse of data. Nageswaran said at an event here that regulations for the financial sector can stop ‘dacoity’ but this crime can be curbed only when the dacoit himself decides to reform. He said, “Misuse of data, selling of wrong products, market distorting methods have to be stopped. In this case, keeping an eye on yourself is the best surveillance.
In the recent past, many companies related to financial products have been accused of adopting unfair practices with customers. Finance companies like Mahindra Finance have also been trying methods of intimidation and intimidation of borrowers to recover their loans. They have also faced regulatory rigor on this. At the same time, online lending digital platforms are also a cause of great concern for the borrowers at this time. Nageswaran said the issue of offers to make quick money from trading in stock exchanges came up during his meeting with the chief of markets regulator SEBI a day earlier.
He said that investors are being promised to convert Rs 5,000 to Rs 6,000 in a day, whereas it is not possible to fulfill such promises. He said that financial companies have all the data related to the financial conduct of their customers, but it is very important for them to show self-restraint. He expressed hope that with access to data and low loan allocation base, financial institutions would take appropriate decisions in lending. The CEA said that another round of credit expansion is about to begin in the country, which will happen much faster than the previous round. “If India has to grow at more than six per cent sustainably, we need a financial cycle that doesn’t end in half a decade,” he said.
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