The Reserve Bank of India Governor Shaktikanta Das said that the Central bank will soon issue guidelines to make digital lending ecosystem safe and sound.
"Big tech's play in finance poses systemic concerns like overleverage", Das said at an event organised by Financial Express. He said that blockchain players pose unique problems and regulating them will require globally coordinated action.
"Blockchain platforms cannot be limited to a regulator or nation. Regulators can go for activity and entity-based regulations", he added. Das further said, "earlier, RBI's approach was to provide sunset clauses. However, this year credit growth is around 12 per cent, compared to 5-6 per cent last year. Reasonably satisfactory credit growth is happening."
Taking a strict tone on loan recovery, Das said that loan recovery agents using harsh methods like calling up at odd hours, foul language is totally unacceptable. Speaking on inflation, Das said that during the pandemic, the monetary policy committee had decided to tolerate inflation according to the situation.
"During the time of Covid-19, MPC consciously decided to tolerate inflation as the situation demanded that, otherwise consequences would have been disastrous."He further added that had the monetary policy been tighter, the economic damage would have been enormous.
"RBI has not fallen behind the curve, we have been in line with the requirements of our time", Governor Das said.The process of coming out of an easy liquidity system takes a long time based on factors beyond our control, he said.