RBI Governor Raghuram Rajan addressing to the regulator’s staff said they should be relentless in catching the defaulters even if it meant holding the powerful to account. Among many issues dicussed in a long 2500-words message, he said RBI must be ruthless and take a lead in ensuring compliances.
“It has often been said that India is a weak state. Not only are we accused of not having the administrative capacity of ferreting out wrongdoing, we do not punish the wrongdoer, unless he is small and weak”, he further said.
“This belief feeds on itself. No one wants to go after the rich and well-connected wrongdoer, which means they get away with even more. If we are to have strong sustainable growth, this culture of impunity should stop. Importantly, this does not mean being against riches or business, as some would like to portray, but being against wrong-doing,” he further explained in the message.
Since taking the post of governor of RBI, Rajan has been strict on debt-laden banks to clean up their books – resulting in cracking down on many defaulters including industrialists like Vijay Malya and Subarto Roy.