Change RBI Governor: Swamy to PM - The Hindu

Change RBI Governor: Swamy to PM - The Hindu

Read this along with my views(copied below) on B N Srikrishna's ET article on RBI Governor


Beyond rights and wrongs*
This refers to the article “Why Rajan is Wrong”(June 26). Co-authored by Justice B N Srikrishna, Chairman and Shri D Swarup, Member-Secretary of the Financial Sector Legislative Reforms Commission, the article attempts to presume and conclude that RBI Governor was wrong in expressing his views against FSLRC recommendation to super-impose a ‘Tribunal’ over RBI, when adequate facilities for ‘appeal’ where absolutely needed, existed and saying that he was not comfortable with re-inventing regulatory architecture in banking sector as the existing ones were not in disrepair, in his June 17 speech.
Dr Rajan had focused only on the aspects concerning RBI and the article has used SEBi experiences and sanctity of ‘rule of law’ to conclude that ‘Rajan is wrong’. While on the defensive, no harm in drawing arguments from anywhere, but it would have appeared more convincing, if, some instances where RBI would have performed better, were the proposed changes were in place had been quoted.
The article states that ‘We reject Rajan’s claim that the regulator must continue to have discretionary powers and should not be answerable’. Does this ‘rejection’ go well  in the context of Dr Rajan’s following observation?:
“Am I arguing that no checks and balances are needed? Certainly not! But there are already checks and balances in place, including review by constitutional courts like high courts through writ petitions. Senior officers of the regulator are appointed, and can be removed, by the government. The FSLRC recommends an annual report to parliament, as well as regular discussions with parliamentarians. These are good suggestions, which would add to oversight.”
It may be recalled that the FSLRC report which was signed by seven members had dissenting notes from K J Udeshi, P J Nayak and Y H Malegam(all members).  In effect other than the chairman and the Member-Secretary only two members had gone with the FSLRC report in its entirety. 
M G WARRIER, Mumbai
*A slightly edited version of this response was published in ET on June 27, 2014


M G Warrier

Comments

Post a Comment

Popular posts from this blog

A prayer which Prime Minister Narendra Modi may kindly grant!

http://wap.business-standard. com/article/opinion/heed-the- pension-prayer-117110500774_1. html A PRAYER TO PRIME MINISTER The wish expressed on page 211 of his book "I Do What I Do" need to be taken cognizance of, by PMO as Rajan feels "GOI should do the right thing" If Rajan is wrong, time to place the correct information in public domain. M G Warrier Thiruvananthapuram
Read more

NAVAGRAHA STOTRAM

NAVAGRAHA STOTRAM* According to astrology, the positions of the nine planets in the twelve constellations of the zodiac and their movements are considered to be quite significant. The nine planets ‘Navagraha’ affect every aspect of human life. They play an important role in the activities, physical and mental health and life of any individual. The unfavorable positioning of any of these planets can be the cause of problems, bad health, and stagnation for many people. However, there is a solution to avoid the ill effects of the position and movement of the ‘Navagraha’ in our lives. Navagraha mantras (or stotram) are simple mantras which work as powerful healing tools to reduce the negative effects of any of the nine planets. These mantras are Hindu holy hymn addressing the nine planets. Benefits Of Navagraha Stotram And The Way to Practice The Navagraha Stotram is written b y Rishi Vyasa and is considered to be the peace mantra for the nine planets. They are powerful m...
Read more

The King of Ragas: Sankarabharanam

                       The King of Ragas                      --------------------------     Long ago  serpents were put to lot of hardships.They  were afraid of other animals. They had to seek refuge in the hermitage of sage Saraba.The sage was a true devotee of Lord Shiva.He used to pray Shiva with melodious songs. As he sang a particular raga the snakes were much inspired and they began to dance,. Slowly the serpents became friendly with the sage. They brought water in their mouths for the pooja.They secreted  a special fluid in which the flowers got stuck to their bodies.The sage was much astonished by the service of the snakes.As the sarpas became very close to the sage ,they requested him to help having Darsan of Lord Siva. As requested by the sage Shiva appeared in the form of  a  Kapalika and stayed in the ashram.The...
Read more