RBI no paper tiger, compliance to norms a must for taxi apps: Raghuram Rajan
Rajan warned taxi hailing apps that compliance to regulation is a must no matter if it is good, bad or ugly.
Asserting that taxi hailing apps like Ola and Uber must comply with its norms, RBI on Saturday said it is not a "paper tiger" and will enforce all regulations irrespective of whether they are "good, bad or ugly".
RBI Governor Raghuram Rajan also said that as a regulator, the central bank was open to modifying regulations if necessary, while a number of steps have already been taken, including the 'touch-and-go' credit card facility.
Rajan was responding to a question on problems he foresees in the taxi hailing sector and how RBI would respond.
"I want to be very very clear here. We did move against one of the taxi providers because they were violating our regulations as they stood. We needed to bring them in to compliance to the regulation.
"And this is something I want to emphasise. Our intent is whatever regulations are on the books -- good, bad, ugly -- they have to be complied with ...If regulation is a bad regulation, we change the regulation. But what is on books has to be enforced. We don't want to be a paper tiger. We should not be a paper tiger." he said.
RBI, he added, was trying to streamline its regulations and has come up with bunch of master circulars for easier reference.
On a question to when India will become a 'two-eyed king', in a reference to his earlier 'one-eyed king' comment, Rajan said, "It depends both on what the rest of the world does and what we do. If rest of the world accelerates and we don't, obviously it takes us longer. My sense is the way recovery is picking up ...Perhaps before rest of the world accelerates."
Earlier, Finance Minister Arun Jaitley had virtually rebutted Rajan's remarks that India is 'one-eyed king in the land of blind', saying compared to the rest of the world, the Indian economy is growing much faster and, in fact, the fastest.