Indian banks outstanding, but international banks…: Zerodha’s Nikhil Kamath

Nikhil Kamath, Co-founder of brokerage firm Zerodha, praised the Indian banking systems for its functioning.

In a social media post, Nikhil Kamath, said that Indian Banks are ‘outstanding’ as compared to international banks. He questioned how could a bank transfer take ‘days and cost so much.’

“Indian banks are outstanding, can’t believe how terribly run international banks are. How in todays day and age can it take days to do a simple bank transfer, and cost so much? Full credit to @PMOIndia @RBI @NandanNilekani ,indian banks and everyone who helped create this ecosystem,” he tweeted.

The tweet has garnered over 1,000 likes and nearly 100 messages.

“@nikhilkamathcio no doubt Indian bank highly regulated, special thanks to RBI also,” said one user.

“Also, with all the pilots going around eRupee, both wholesale and retail, we are talking about instant settlements. Don’t need intermediaries at all. No delays, no fees. Just wondering what can be built on top of this,” said another user.

The central bank started a pilot program of its digital currency allowing select banks to use it for settling secondary-market transactions in government bonds. The e-rupee will be tested for retail use within a month in some locations, the Reserve Bank of India said.

Taking note of critics’ points of view, Zerodha co-founder Nikhil Kamath has listed a few factors why the e-rupee is a breakthrough decision for the Indian economy.

Citing a report by The Oddball, Kamath wrote, “While many have been critical of #CBDC, we might be missing the big picture, remittances, unbanked economy, and reducing subsidy leakage, to name a few”.

The Zerodha co-founder added, “When anything new comes into the market, the old need to adapt, and the new need to regulate the change”.

Banks involved in the pilot are the State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank Ltd., Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and the Indian unit of HSBC Holdings Plc.

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