Postal Department yet to formally apply for bank licence, RBI chief Rajan says

On whether Postal Department will be allowed to operate as a bank, Rajan said the department has not yet formally applied for license, but having a bank in the postal offices will help providing common people access to finance.

Calling for "minimum but effective regulations, he said: "We need regulations, we need them for the markets, for the banks. We need optimal...Better regulations...And not archaic ones.

The Governor was answering questions from audience after delivering a lecture on `Democracy, Inclusion, and Prosperity' at the D D Kosambi Ideas Festival.

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"We need an environment which is friendly to business that has moderate and not excessive taxes. But when there are taxes in place, people should not evade. We need a system of good enforcement of minimal regulations," he said.