New Delhi

World Bank President David Malpass on Saturday said that India must show openness to reforms by allowing private banking in a scaled up manner, taking steps to deepen capital markets and building sound regulations for non-banking financial companies (NBFCs).

"India should allow growth of the banking sector with more private banks, must show openness to reforms and innovation, improve laws on lands and enforcement contract, encourage capital markets, bond and mortgages and build sound and strong regulations for NBFCs as they entail risks," Malpass said during a media interaction here.

The World Bank President is on a three-day visit to India.

Malpass also met Prime Minister Narendra Modi on Saturday and both discussed financial sector reforms and ways the sector can move forward in India.

He praised the insolvency laws and also hailed the corporate tax cut recently announced by Finance Minister Nirmala Sitharaman, saying that it will help adding to India's growth.

India recently jumped 14 spots to the 63rd position in the World Bank's Ease of Doing Business rankings.

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