All cannot be done by the RBI, even the government needs to perform: Bank of Baroda chief PS Jayakumar

MUMBAI: The chief of Bank of Baroda, PS Jayakumar, who comes from private sector, has said at a seminar that the entire onus of reviving the economy can not be on the shoulders of the RBI Governor. He says that the government should also share the burden by sticking to commitments on payments and clearing litigation issues.

"The government also needs to perform in the sense of making payments on time and make sure that the enforcement processes improve, these are outside the purview of the RBI governor. We will need some fast forward in Bankruptcy code, debt recovery tribunals," said Jayakumar. Painting an optimistic picture for the future he said that under the new governor there is a good chance of a 25 basis points rate cut towards the end of the year, provided the conditions remain favourable.

Ex Citi banker Jayakumar who is now at the helm of one of the biggest public sector lenders in India added that the future of banking will be defined by the partnership between banks and financial technology players. Thus rather than being fluttered by the new entrants in the sector the need of the hour is partnerships.

"Banks can provide these companies with funding as well as a ready made customer base. On the other hand they can help us leapfrog in terms of technology and provide the best solutions to our customers," he added.