New Delhi : In the absence of a good bankruptcy code in India, Reserve Bank is working on a system to enable entrepreneurs seeking to exit insolvent business, reports PTI.
“We have a tendency in India that we do not like failures. We think everybody should pass and have distinction. We do not have a culture to accept failures.
“How to create that? There is a thinking in Reserve Bank, we have been thinking how to create a system so that people should voluntarily withdraw from an unattractive business,” RBI Executive Director B Mahapatra said in his address on “Managing Stressed Assets” organised by Assocham. He said that RBI has started working on an enabling system for banks that will help those entrepreneurs seeking an honourable exit from unattractive ventures.
While there is a talk of providing legal provision in the Companies Act in this regard, the RBI would like to work on examining the regulatory framework for the voluntary withdrawal by the entrepreneur, he added.
