RBI Keeping an Eye on Borrowings of Large Corporates: Rajan

Hailing GST as \"a good move\", he said, \"It will remove barriers among states and make a common market. It will bring more people under the tax net.\"

Published: 10th December 2015 09:35 PM  |   Last Updated: 10th December 2015 09:52 PM   |  A+A-


"The Chinese slowdown is a concern for the whole world. There is a lower demand for some of our exports to China. But indirectly too, many of the countries are not exporting to China as much as they did and they are buying less from us," Rajan said in a


KOLKATA: The Reserve Bank of India is maintaining a database which is being shared among banks to avoid over-borrowing by large corporate houses, RBI Governor Raghuram Rajan said here today.

"Moderation is required and some debt is good and not too much. Avoid over-borrowing to avoid problems," Rajan said at the Presidency University here.

Rajan said RBI has a database of large borrowers whose status of borrowings is shared among banks.

Acknowledging that Indian banks have the right kind of leveraging, he added that "those who said the banks have no capital requirements are not sensible".

Citing the example of Indian economy, he said foreign share in government debt is 3-3.2 per cent, which is "very reasonable".

"It is easy to fall to the temptation of easy money from outside and then, get into problems later. There is a need for the golden mean," he stressed.

Talking about the need for debt in society, Rajan said it's also responsible for creating "an antipathy" among entities. 

Rajan termed cutting interest rates to rock-bottom levels as "not a good idea". "Better is to have growth in real activity rather than a financial market boom due to distortion in prices," the governor said.

Hailing GST as "a good move", he added: "It will remove barriers among states and make a common market. It will bring more people under the tax net."


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp