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Showing posts from August, 2013

Govt considering bullion bank to mobilise idle gold | Business Standard

Govt considering bullion bank to mobilise idle gold | Business Standard Online comments posted on August 31, 2013: It was reported in the media during July 2012 that, observing that gold imports are contributing substantially to India's current account deficit (CAD), an RBI panel was looking into the aspects of devising some alternative routes like bringing out the gold which already exists in the country. The panel was also to examine whether domestic stock of gold can be brought into the mainstream by devising appropriate financial instruments. People’s emotional attachment to gold in metal form will come down only if the government is able to infuse confidence about the effectiveness of ‘paper gold’ (someone corrected me recently, it should be ‘electronic gold’!) as a store of value with easy liquidity. Awareness should also be created about the loss involved in abuse of gold for show-off purposes like gold-plating of roofs, statues and flag-masts or even in frequent re-maki

LOOKING AHEAD BY LOOKING BACK : Dr D Subbarao

Five Years of Leading the Reserve Bank Looking Ahead by Looking Back1 - Duvvuri Subbarao ________________________________________________________  First of all, my sincere thanks to the Nani Palkhivala Memorial Trust, particularly Shri Y.H. Malegam, the widely respected Chairman of the Trust, for extending me the honour of delivering the Palkhivala Memorial Lecture for this year. I know many eminent thought leaders had delivered this memorial lecture in the past, and I attach a lot of value to adding my name to that very select list. Nani Palkhivala 2. I did not have the privilege of meeting or interacting with late Shri Palkhivala. He was already a preeminent public intellectual in the country by the time I had entered the IAS in the early 1970s. But I count myself among the millions of educated Indians who were deeply impressed by Shri Palkhivala’s commitment to protecting India’s democratic institutions, and the intellectual vigour with which he did so. In a career sp

POET'S TOMB

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I read the Malayalam translation of this poem* in Mathrubhumi Weekly, August 25, 2013. Enjoyed reading it. So, sharing. More at Poetry International Web. *© 2006, Shuntaro Tanikawa From:   Poet's Tomb Publisher: Shueisha, Tokyo, 2006, 4087753662 POET'S TOMB In a certain place there lived a young man Who lived by writing poetry He wrote a poem of celebration when someone got married He wrote a poem to be carved on a tombstone when someone died People offered many things to thank him Some brought a basket full of eggs Some sewed a shirt for him Some just cleaned his room because they had nothing else to offer He was happy for whatever was given to him He thanked everyone just the same An old woman for the gold ring she gave him A little girl for the paper doll she made for him all by herself He had a name but People called him Poet.  They did not use his name He seemed embarrassed at first but He got used to it by and by

Letters: Level the playing field | Business Standard

Letters: Level the playing field | Business Standard Please also read the following unedited version of the letter: Infuse efficiency at the top This refers to your editorial “Non-performing managers”(August 26). This is a balanced view of the present position of the top management of PSUs and PSBs in general. To comment on the non-performing administration in the public sector and government-owned bodies, these days, no deep research is needed. PSUs in India including Public Sector Banks have become whipping boys of government, regulators and the new generation advocates of privatization. Government (some officials and ministers) think they are the owners of PSUs and PSBs(in a way, they are!) and use them for carrying out their agenda and for milking them dry to quench their thirst. These institutions (and government) get the private sector-rejects or retired/retiring government officials at their top who carry out the wishes of their masters in government. It is not t

POET’S TOMB - Shuntaro Tanikawa - Poetry International

POET’S TOMB - Shuntaro Tanikawa - Poetry International I read Malayalam translation of this poem in Mathrubhumi Weekly (August 25, 2013) and liked it :) M G Warrier

RBI suggests banking sector overhaul | Business Standard

RBI suggests banking sector overhaul | Business Standard ONLINE COMMENTS POSTED ON AUGUST 28, 2013: M G WARRIER In August 2010, BS had published my following comments, when RBI released the discussion paper on new bank licenses: “The discussion paper on new bank licences released by RBI may, in the coming days, bring to fore the problems and challenges faced by financial sector as the issues raised in the paper go much beyond the government’s intention to give a greater role for private sector in banking to promote financial inclusion and reduce government’s financial commitments for running banks. It is quite natural that as a regulatory body responsible for the health of the financial sector, RBI’s concerns go farther from just the net worth of the promoter or his professional capability to run a bank. RBI’s intention to regularize and ratify the parallel banks which can conform to regulatory norms and rehabilitate some RRBs which may have manpower and infrastructure in place but

FinMin makes first move on FSLRC despite Subbarao's reservations | Business Standard

FinMin makes first move on FSLRC despite Subbarao's reservations | Business Standard Online comments posted on August 28, 2013: Transfer of ownership of DICGC to GOI is a welcome move. Perhaps, with this move, government is admitting that risk to financial assets emanate mostly from government policies and insuring deposits and guaranteeing recovery of bank credit should be government’s responsibility. It is hoped that GOI will compensate RBI for the share transfer and the proceeds will go into RBI’s reserves and this time it will not be a ‘book adjustment’, as was on certain earlier occasions. M G WARRIER

Non-performing managers | Business Standard

Non-performing managers | Business Standard Online comments posted on August 26, 2013: M G WARRIER This is a balanced view of the present position of the top management of PSUs and PSBs in general. To comment on the non-performing administration in the public sector and government-owned bodies, these days, no deep research is needed. PSUs in India including Public Sector Banks have become whipping boys of government, regulators and the new generation advocates of privatization. Government (some officials and ministers) think they are the owners of PSUs and PSBs(in a way, they are!) and use them for carrying out their agenda and for milking them dry to quench their thirst. These institutions (and government) get the private sector-rejects or retired/retiring government officials at their top who carry out the wishes of their masters in government. It is not that these organizations cannot compete with their private sector counterparts. They will outperform them, if a le

Shift in India's Gold Policy

Details The domestic household stock of gold in India estimated at over 25,000 tons, the country’s annual purchase of over 30 per cent of global gold purchase leading to an estimated cumulative demand of 1200 tons by 2020 and low share of gold in country’s forex reserves as compared to other countries and not always economic and prudent handling of this precious metal, all these and more point to the urgency in having a national policy for gold management. The economic and technical policy aspects highlighted in the article should get the attention they deserve from GOI. The policy should look at a strategy that will encourage transparency in transactions, elimination of wastages, standardization of valuation norms and facilities for gradually converting even the existing stock of gold with individuals and institutions to conform to internationally acceptable standards.  RBI and Centre, in the early 1990’s actively considered setting up a Gold Bank with a mandate to do real go

The new note on Mint Street - The Hindu

The new note on Mint Street - The Hindu A must-read for RBI-watchers. The concluding paragraph of this article (copied below) says it all M G Warrier " Dr. Rajan brings to the job a degree of intellectual capital, perhaps unmatched by any of his predecessors. Still, in reconciling divergent views and revisiting his own, he has his work cut out. He must know by now that no RBI governor can afford to antagonise the finance ministry beyond a point. Nor can he afford to alienate the RBI community, one that is legitimately proud of its traditions and expertise and its standing in the world of regulators."

Subbarao, take a bow | Business Line

Subbarao, take a bow | Business Line The well-deserved appreciation of Dr Subbarao’s tenure as RBI Governor in this article echoes the sentiments of thousands of RBI-watchers. Coming from a person who has been breathing, drinking, talking and writing monetary policy, inside and outside RBI for about half a century now, this is a well-deserved honour, which will add strength to Dr Subbarao’s convictions, making him fit and confident for further valuable contributions which will guide India’s economic development when the country is crossing through a tough transition. The mention of the purchase of 200 tonnes of gold in 2009 to diversify the forex reserves as one of Governor Subbarao's outstanding achievements and the assertion that ‘history would etch his name in gold’ will remain as a Guru ’s guidance to future RBI Governors. M G WARRIER

Rajan wants clarity on new bank licences by January | Business Standard

Rajan wants clarity on new bank licences by January | Business Standard Online comments: M G WARRIER It is refreshingly comforting to see that an executive who is still with GOI has started getting seriously concerned about the goings on in an institution which he will be heading a fortnight later. The need to ensure continuity at the top in RBI is surfacing time and again. Now Dr Rajan also has admitted this by expressing the view that ‘some definitive steps’ on new bank licences should be taken before Deputy Governor Sinha demits office on January 18, 2014. His concern is genuine, as the other person who was responsible for initiating the process necessary for issue of fresh bank licences, Dr Subbarao, would have already moved out, once he takes charge. The environment in which Dr Rajan and his ‘new team’ will have to decide on 5 to 10 ‘in-principle approvals’ from the 26 aspirants has been made more complicated by the time-frame(first quarter of 2014) already annou

Costly Kiddy Bank Accounts - Moneylife

Costly Kiddy Bank Accounts - Moneylife

PM's appreciation of RBI and Dr Subbarao : Latha Vekatesh

PM gave RBI Guv a pat on back, not rap on knuckles by   Latha Venkatesh   Aug 19, 2013 Headlines yesterday seemed to suggest that Prime Minister   Manmohan Singh   had a faceoff with Reserve Bank of India (RBI) Governor D Subbarao over the conduct of monetary policy.   The Economic Times said that the PM and Subbarao “sparred” over RBI policies, and   The Times of India   said the PM wanted “new thinking” in the RBI – indirectly suggesting the Subbarao’s thinking was of the old type. This writer, who was right there when the “sparring” allegedly happened, would like to put the record straight and in the right context and perspective. The occasion was the release of the book    The History of the RBI, Vol 4 , at the PM’s residence on Saturday. PTI The PM’s exact words were something like this: “The Reserve Bank has done the country proud – the role which it has played in shaping the monetary policy, in shaping the credit policy, and, if I remember correctly, in also influencin