Rules for Indian financial sector need to be reviewed to realise economy's growth potential, says Uday Kotak

Reserve Bank of India (RBI) rules restrict Indian banks from lending to companies for takeovers. The Indian central bank always viewed lending against shares as a risky activity because a sudden collapse in stock prices could leave banks holding worthless paper. They can lend only up to Rs 20 lakh, a rule that was set after the so-called Harshad Mehta scam of 1992.

from Banking/Finance-Industry-Economic Times https://ift.tt/9sKRvrU