Showing posts from June, 2013

VITALINFO: RBI's new debt recast norms - M.G.Warrier

VITALINFO: RBI's new debt recast norms - M.G.Warrier : ..........In this context, the methodology for issue of guidelines being followed by RBI in the recent past, which elicits and accommodate... Please read my article published in Global ANALYST, July 2013

‘Banking services in rural areas will usher in a revolution’ - The Hindu

‘Banking services in rural areas will usher in a revolution’ - The Hindu Things are bright in the south. On June 28, 2013(the day this event took place), media reported some findings of a CRISIL study conducted on the basis of three parameters -- branch, deposit and credit penetration -- across the 632 districts in India. The study revealed that the bottom 50 districts have just three banks per 100,000 of population, just half of the 7.6 bank branches per one lakh population on an all-India level.   These districts have just two per cent of the total bank branches in the country. Besides, they also have just 4,068 loan accounts per 100,000 of population as compared to an all-India level of 11,680 accounts.   Lack of awareness, low incomes, poverty and illiteracy are among the key factors that lead to a low demand for financial services and, consequently, to exclusion. M G WARRIER

No take-it-easy policy, please | Business Line

No take-it-easy policy, please | Business Line Online comments posted on June 28, 2013: True to the title of his column (Maverick view), S S Tarapore speaks out his independent mind, but with convincing arguments to support what he says. This column gives common man the comfort that, if, GOI or RBI goes off the track, occasionally under external pressures, it happens despite well-articulated warning signals. Unlike most other organisations, RBI has maintained a continuity of the institution’s policy perceptions, which did not change with the changes at the top. The central bank has developed an institutional work culture which it has also tried to pass on to institutions it built with GOI in the financial sector. Thought of mentioning this just to ward off the misconception in the minds of some that there will be laxity on the part of RBI, once Dr Subbarao moves out. Dr Subbarao has earned the ire from Finance Ministry for openly telling what his predecessors used to whisper in the

Letters: Retire at 60 | Business Standard

Letters: Retire at 60 | Business Standard Post-60, individuals should reconcile to the fact that they are in the second half of life and allow younger generation to take over. M G Warrier


I found the articles at the following link interesting. The forward note from my mail group-mate is also copied below: M G Warrier  DEAR ALL                     I FORWARD HEREWITH THE BLOG ON MY DAD CHITTI SUNDARARAJAN TO MARK HIS DEATH DAY! S.Venugopalan M85 7-A, Prashanthi Apts. T.M.Maistry St. Vannandurai Chennai - 600 041

Compassion and the Individual | The Office of His Holiness The Dalai Lama

Compassion and the Individual | The Office of His Holiness The Dalai Lama This article also appears in Speaking Tree (Times Group) M G Warrier

RBI GM warns people against falling prey to fictitious emails - The Hindu

RBI GM warns people against falling prey to fictitious emails - The Hindu Even I got an offer on June 20 night on my mobile from 08375991120 which read: “Your Mobile Nos has(sic) won 3crore 35lakh from Chevrolet Motor promo 2013 for claim send name, phonenos, address, occupation and age to email ” Thank GOD, we are able to delete messages! M G WARRIER

Kerala model

Online comments posted on June 19, 2013 responding to an article on Kerala by Swaminathan S A Iyar : M G WARRIER   (MUMBAI) 17 Minutes ago Kerala’s development model needs much deeper study at this stage. This is imperative, not only to save Kerala from imminent self-destruction emanating from a mix of policies influenced by the state’s literacy level, the false sense of wellbeing created by temporary inflows of funds which are ultimately debt which is repayable and political pulls and pushes from a leadership with blurred vision because of the company it keeps with those causing ‘Riches and Rapes’, but also to remind this state that it has no independent existence in the Indian federal structure. Having said this, it has also to be admitted that Kerala is not amenable to comparison with other states in the matter of crimes or even positive parameters like literacy or employment, because unlike any other part of India , the whole state of Kerala is a metropo

Rate cut hopes only from Subbarao's successor | Business Standard

Rate cut hopes only from Subbarao's successor | Business Standard Online comments posted on June 19, 2013: It is true that Dr Subbarao has , in media interactions, indicated he was not keen to continue beyond September, 2013. But no RBI Governor in the past also has given out his mind about his expectations about further extension of tenure especially after the ‘normal’ 5 years term. But politically and from a mere expediency angle, certain factors are in favour of giving a one year extension to Dr Subbarao. With 2014 Elections round the corner, experimenting with a new face at Mint Road , howsoever ‘faithful’ to North Block he may be will be a risk GOI should avoid. For the new incumbent also, it will save a lot of ‘adjustments’, if he takes over post-2014 Elections. M G WARRIER 

Bring gold to the fore | Business Line

A pause for now | Business Line Please read my letter "Bring gold to the fore". My earlier article "Gold management needs a makeover" , a slightly edited version of which was published in Business Line in April 2012 is copied below: M G Warrier Gold Management needs a makeover M G Warrier In the recent weeks, whether in the context of doubling of customs duty in the Budget proposals, 2012-13 or the concern expressed by RBI about the rise in growth in import of gold and other precious metals, the analysts and experts on one side and business interests on the other have kicked off a debate on gold management. All stakeholders agree on the need to prudently manage gold and its price in the market. It would be worthwhile here to remember the views expressed by World Gold Council (WGC) way back in March 2011. The WGC stated that India ’s role as a key driver of global gold demand is reaffirmed by the research and observed asunder: • At more than 18,000 tonnes, In

If RBI can't cut CRR, let them pay us interest on it: SBI | Business Standard

If RBI can't cut CRR, let them pay us interest on it: SBI | Business Standard Online comment posted on June 17, 2013: Let us not presume that SBI Chairman is not briefed correctly about the concept of CRR in the Indian context, or about the times when central bank had paid interest on CRR accumulations above certain threshold levels and why or when the practice was discontinued. Coming to the limited offer from him to ‘pass on’ entire benefit from a CRR cut, in these days of Direct Benefit Transfer, RBI could as well consider crediting such benefit direct to the borrowers’ accounts on the basis of information furnished by banks, instead of using banks as a ‘conduit’. The demand from SBI Chairman is comparable to a tax payer telling GOI to treat ‘tax’ as borrowing from him and pay interest at market rate or stop collecting tax.  M G WARRIER

Long live, TELEGRAM!

Looking back at the telegraphic tidings By  G Babu Jayakumar 15th June 2013 08:06 AM News on the impending death of telegraphic services in India has failed to evoke any sense of loss among people, particularly in networking sites, the modern day barometer of public opinion, but for some nostalgic outpourings. Perhaps, not many in the modern generation ever had a real feel of the telegram, which played a glorious role in long-distance communication at a time one had to wait for at least three long years even after paying a princely Rs 3,000 as deposit for a mere landline connection. And it was in those days the word “telegram” cried out from the doorway would send a chill down the spine of all, keeping those at home in deep suspense till the crisp message printed on a strip and stuck to a piece of paper, designed like an inland letter, was read out. True, the telegram was more associated with bad tidings, though it did bring good news too. The last telegram I rece

Everybody is accountable in a democracy: B N Srikrishna | Business Standard

Everybody is accountable in a democracy: B N Srikrishna | Business Standard Online comments: The comments/questions "In our country, even the Prime Minister and President can be challenged. So, who are the regulators?" and "Which regulator tells us what is the reason behind which he is doing something?" by Justice Srikrishna here perhaps would have had some relevance a couple of decades back. Today, it is doubtful that anyone including those who are at the receiving end, will have any doubt about the accountability of statutory bodies or the need for those who take action in exercise of powers conferred on them to be transparent about the justification for the action. A reading of the recent RBI circular on new norms for debt recast will clear any doubt about transparent and democratic functioning of the central bank today. M G WARRIER

The mechanics of money | Business Line

The mechanics of money | Business Line Online comments posted on June 12, 2013: Dr D Subbarao’s article “The mechanics of money” (Business Line, June 12) is much more than a review of the book “The Physics of Wall Street” by James O. Weatherall. The article gives insight into the function of money and how one deeply involved in handling monetary policy perceives the role of money. A quick read of the article will also help today’s busy executives to approach books and reading habit in general from a pragmatic angle. Those who are more interested in financial markets and products on display there, can benefit from pointers to the evolution of ‘market’ during the last century and also try to find answers to questions like “Is a hurricane more likely to hit because more hurricane insurance has been written?” posed by The Economist long back. In sum, this brief story is a sumptuous treat which will ignite your appetite for further reading. M G WARRIER

Subbarao again questions FSDC ambit | Business Standard

Subbarao again questions FSDC ambit | Business Standard M G WARRIER The concern expressed by the RBI Governor is genuine. Post-FSLRC report, even the chairman of the Financial Sector Legislative reforms Commission Justice Srikrishna has become wiser and had last week observed that what we needed was something that is drastic, something that is total overhaul of the existing financial system. But, FSLRC missed the opportunity to dwell on this in the Indian context. Going round and round the idea of destabilizing the central bank(RBI) which is the only institution functioning satisfactorily and cutting and pasting recent innovations elsewhere brought about in different contexts and refusing to do the strenuous task of looking at India-specific issues and country-specific solutions for them, the Commission ended up where it started the work! It is doubtful whether even those caused the review by FSLRC would argue that acceptable and workable models are there in the FSLRC report. If givi

Governance Deficit in Infosys? - Moneylife

Governance Deficit in Infosys? - Moneylife Online comments, June 10, 2013: The article gives some ‘rationale’ for the present situation in Infosys. It also gives some insight into the movements at the top during the last one decade or so. When it comes to inter-personal relationships involving high values(in terms of money) and family relationships, ideologies and philosophy one normally preaches do not come to help. There cannot be convincing explanations for NRN’s comeback, Nanden Nilekani’s shift to Delhi or Junior Murty’s induction, if we do not factor in the ‘sentiments’ attached to money, power and family. M G WARRIER

Indian Express: Can't bank on it

The Indian Express, June 4, 2013: Can't bank on it Ila Patnaik   : Tue Jun 04 2013, 02:30 hrs The RBI board makes no attempt to review its regulatory failures According to a recent press release by the Reserve Bank of India , its board met in early May. This was the first board meeting after the Cobrapost exposé, revealing widespread failure by banks in adhering to the RBI's Know Your Customer (KYC) regulations. What did the RBI board discuss and what decisions did it take? The first set of Cobrapost exposés happened on March 14, implicating three banks. On April 6, a second set of news stories exposed more banks. The exposés revealed widespread failure by banks in enforcing KYC regulations. When the RBI central board met in Srinagar on May 9, one would have expected the board to take some decisions to look into the issue of KYC regulations. At the very least, the board might have asked for a report on the enforcement of KYC regulations, or a review of the aud

Finance Ministry seeks comments on FSLRC recommendations | The Hindu

Finance Ministry seeks comments on FSLRC recommendations | The Hindu All those who have views on the issue should respond to Finance Ministry's call. M G WARRIER A slightly edited version of the following article was posted at Website on April 10, 2013 FSLRC Recommendations on RBI:  Stop, Look and Proceed! M G WARRIER The finance ministry and FSLRC, in a hurry to resolve minor issues, perhaps ignored the evolution of the role of RBI and the care with which RBI has nurtured the financial sector. Time is not right for dismantling or truncating the RBI which is doing creditably well as is being admitted in several international forums The Financial Sector Legislative Reforms Commission(FSLRC)-Justice B N Srikrishna, Chairman, D Swarup, Member Convenor, M Govinda Rao, Member, J R Varma, Member, P J Nayak, Member, K J Udeshi, Member, Y H Malegam, Member, C K G Nair, Secretary- submitted its report to the Finance Minister in March 2013. Since the release of an appr

Role of FSDC

Economic Times, June 6, 2013: FSDC must limit itself to coordination, Says RBI Governor D Subbarao By ET Bureau | 6 Jun, 2013, 08.05AM IST Subbarao rubbished the idea of a statutory role for the FSDC headed by the finance minister instead of its present role as a coordinator among regulators. Editor's Pick ET SPECIAL: MUMBAI: Reserve Bank of India Governor Duvvuri Subbarao   spoke straight from the shoulder against a bigger role for the government in financial stability and regulation when world over lawmakers are empowering regulators with more autonomy. Rubbishing the idea of a statutory role for the Financial Stability and Development Council (FSDC) headed by the   finance minister instead of its present role as a coordinator among regulators, Subbarao said this would achieve little. "The recommendation that the executive responsibility for safeguarding systemic risk should vest with the   FSDC   board runs counter to the post-crisis trend around the w