In a bid to encourage corporates tap non-bank resources, the RBI said it is working on measures to make bond market more attractive and less complicated. The apex bank, which was of the view that corporates are more inclined to raise money through financial institutions such as banks, thinks that there was need to make bond markets more easy to access.
Speaking at a Union Bank conference, RBI deputy governor R Gandhi on Friday said there should be a methodology which will measure profitability and efficiency of the bond market. He said RBI has called for suggestion, based on which it would take appropriate decisions.
“While it is necessary to align the policy environment and innovation strategies with the available regulatory capacity, the latter needs to be upgraded to match the natural course of economic development. Sometimes necessary innovations won’t even take off due to the policy making process getting influenced by paradoxes of innovative endeavors such as success failure paradox and/ or feedback rigidity paradox,” he said.