The Nachiket Mor committee recommendations will redraw the contours of banking industry in the country, says Shyam Srinivasan, CEO, Federal Bank.
“The recommendation on credit access (that all low-income households and small business should have bank accounts and access to a full range of credit products and within 24 months) is far-reaching and path-breaking,” he said.
Speaking on finding funds for scaling up start-ups at a workshop on ‘How to scale up your enterprise’ organised by Confederation of Indian Industry–Southern Region here on Wednesday, Srinivasan said the report of the RBI committee headed by Nachiket Mor would bring in fundamental changes in the financial services offered by the banks.
The workshop was held as part of the CII-SR’s road show for the Emerging Entrepreneurs Awards 2013 in association with
Srinivasan advised young entrepreneurs to pay attention to their credit rating and foster the ability to be rated as a good borrower to get financial support from banks. Finding low-cost finance was crucial to scale-up emerging enterprises, he noted.
He pointed out that the commitment of the founder to the start-up, the saleability of the idea and the scalability of the enterprise were important considerations for the success of the enterprise.
The founders should be able to delegate responsibility without having to compromise on the core values and without hurting the enterprise’s ecosystem. Finding the right technology was also important, he said adding that the cost of technologies was falling rapidly.
Jose Dominic, former Chairman of CII Kerala and MD of CGH Earth, said unique and outlandish ideas would attract customers to new business ventures. For instance, when he had set up a resort in Bangaram Island in Lakshadweep, he denied all luxurious amenities such as cosy indoors and TV to the holidayers, but provided them with pristine nature and wonderful experience. “My guests loved this lack of amenities and wonderful new experiences and came back again and again.”
S.R. Nair, MD of Team e-Biz, said entrepreneurship was freedom — freedom to do what one wants to do — and advised emerging entrepreneurs to make use of their competency and experience while setting up new enterprises.