Speaking at an event organised by Indian Institute of Public Administration (IIPA) Maharashtra Region and Yashwantrao Chavan Pratishthan (Mumbai) at Mantralaya, Rajan said there is an immediate need for creating a conducive atmosphere for start-ups to flourish through lightly regulated level playing field.
Reserve Bank of India (RBI) governor Raghuram Rajan on Monday asked babus and bankers to become an Aam Aadmi to understand the difficulties faced by start-ups in the country.
Speaking at an event organised by Indian Institute of Public Administration (IIPA) Maharashtra Region and Yashwantrao Chavan Pratishthan (Mumbai) at Mantralaya, Rajan said there is an immediate need for creating a conducive atmosphere for start-ups to flourish through lightly regulated level playing field.
"Start-ups can take care of biggest issue of creating jobs in the country. Protection of property rights, making tax regime transparent, expanding the access to education, health and insurance would be the positive catalysts for the process of creating a conducive atmosphere," said Rajan.
Underlining the need for creating business friendly environment and level playing fields, Rajan said that heavy inspector raj works against growth of small start-ups. "The challenge is how to reduce regulations to a bare minimum. Start-ups generally avail loans which are to be given on the basis of faith in the promoter and banking system needs to gear up for this since question is how to communicate the honesty of an entrepreneur to the head office of the bank which is generally far away from the promoter of the start-up," he said.
IIPA president and chief secretary Swadheen Kshatriya welcomed Rajan while state secretary Vijay Satbir Singh opened the session. Chavan Pratishthan general secretary Sharad Kale also spoke on the occasion and underlined contribution of legendary Yashwantrao Chavan, while VV Deodhar proposed the vote of thanks.
18 new banks by next year
Informing that 18 new banks would be coming up next year, Raghuram Rajan informed that the Union government would be taking up Bankruptcy bill in the ongoing session of the parliament. "It is wise to go for stopping a start up at the right time so that dues of the bank or financer as well as the labour could be paid and certain amount could be written off than allowing it to decay to a level where nothing is possible," said Rajan.
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