Warrier's blog

Kisan Vikas Patra: a re-launch with very few justifications - The Hindu Any financial savings instrument with credibility with rural outreach should be welcomed. M G Warrier

Development as a people’s movement - The Hindu

Gold: Good to the last ounce Free Press Journal, December 1, 2014: My VIEW: According to medial reports (November 27, 2014), the World Gold Council has tied up with IIM-A for establishing a Gold Research Centre. Even the right exploitation a small portion of the potential of India’s surface gold stock will support fuelling the country’s economic growth to a great extent. This is mainly because success in this direction will bring down the import bills, besides improving forex earnings from export of jewellery. The WGC-IIM-A initiative will give the necessary research support and professional backing to the efforts of Reserve bank of India to make an inventory of India’s domestic gold stock, standardising and making tradable at least a portion of that stock and creating trust in the minds of the people about gold-backed financial instruments. Media has already reported about the measures being taken by RBI to ‘standardise’ country’s gold stock maintained with the cent...

Banking on thin ice | Business Standard Editorials My VIEW: Last one year has seen the churning of Indian financial sector which has brought to surface several structural and ‘organic’ deficiencies in the system which need quick correction. Awareness is most important and media reports indicate that the leadership at the highest level is seized of the need to ‘save the banking system from its enemies within’. Having said that, one does not feel confident that GOI and RBI are on one page in regard to the modus operandi for handling the situation. At least in financial sector, a ‘blow hot, blow cold’ approach to causes for impaired health may do more harm than good. The pressure on RBI arising from diverse messages going to banks in regard to ‘doing business’(JanDhan and restructuring of debts included), enlargement of supervisory and regulatory responsibilities with opening of new genre of institutions like small banks and payment banks which will have to initially ta...

Letters: The gold think tank | Business Standard Letters Gold think tank* This refers to the report " WGC ties up with IIM-A for a research centre" (November 27). Even the right exploitation of a small portion of India's surface gold stock will fuel economic growth to a great extent. This is mainly because success in this direction will bring down the import bills, besides improving forex earnings from jewellery exports. This initiative will give the necessary research support and professional backing to the efforts of the Reserve Bank of India (RBI) to make an inventory of India's domestic gold stock, standardising and making tradable at least a portion of that stock and building people's trust in gold-backed financial instruments. The media has already reported the measures being taken by RBI to "standardise" the country's gold stock with the central bank. The successful completion of these measures will build confidence and make things easy...

Victim of Junk Food - Moneylife My comment on Vinod Rai's book: Real Cleaning Up This is with regard to Book Review of Not Just an Accountant by Jason Monteiro. The book has opened debates on several issues concerning governance and the games people holding power play. It needs a lot of courage and will to live for the country for individuals like Vinod Rai, to speak out on issues raised in the book. The debate should be taken forward for real cleaning up to happen. Moneylife has done its bit by publishing this review. MG Warrier, online comment

IIM-A, WGC set up gold think-tank | Business Line Please read this in the context of my 2012 article on the subject at: Gold management needs a makeover | Business Line (included as Chapter III 2 in my book "Banking, Reforms & Corruption") M G Warrier

WGC ties up with IIM-A to set up research centre | Business Standard News My VIEW: Even the right exploitation a small portion of the potential of India’s surface gold stock will support fuelling the country’s economic growth to a great extent. This is mainly because success in this direction will bring down the import bills, besides improving forex earnings from export of jewellery. This initiative will give the necessary research support and professional backing to the efforts of Reserve bank of India to make an inventory of India’s domestic gold stock, standardising and making tradable at least a portion of that stock and creating trust in the minds of the people about gold-backed financial instruments. Media has already reported about the measures being taken by RBI to ‘standardise’ country’s gold stock maintained with the central bank. The successful completion of these measures will build confidence and make things easy for the gold think-tank to move forward in ...

Hard to copy | Business Standard Breakingviews My VIEW: Fortunately for the Indian Banking System, till recently the structure and design were under the control of those who formulated and implemented banking policy.   Last couple of years have seen a silent churning in the Indian financial sector and the institutional structure is undergoing a change, with pulls and pushes from different stakeholders and certain vested interests. Introduction of new institutions like Mahila Bank and another apex bank for SHGs(GOI has appointed an Expert Group to work out details for organising this) and transplantation of ideas like payment banks and small banks(there is lot of confusion about the prefixes ‘payment’ and ‘small’ among those who are prospective applicants for these categories of banks) should be viewed in this perspective. Having said that, the silver-lining is, RBI is still under control of the situation and has been silently protecting the interests of depositors...

The last trustee of indigo - The Hindu YELLAPPA is a symbol. M G Warrier

Rebooting the Railways | Business Line The Hindu Business Line, November 25   Letters Get on track* This refers to your editorial “Rebooting the Railways”(November 24). The gross neglect from the government’s side has brought disrepute to most of the public sector organisations including railways. Infrastructure and workforce in Railways get an unsympathetic and raw deal from both the government and the public who benefit from their services. When accidents happen or services do not meet expectations, quite often, employees are blamed and a comparison is drawn to private sector counterparts or worse still, the ‘excellent’ services available abroad. Immediate priority for the Railways should be to improve the existing services better by: i)                    Taking measures to reduce the number of accidents. Mumbai suburban locals are death traps which account for scor...

Rate cut call loud and clear - The Hindu My VIEW: The present build-up on demand for rate cut perhaps started with Finance Minister’s observation in his Times of India interview during the last week of October this year. He did say that “…but other expansion in real estate will take place significantly only if the interest rates come down a little. Currently interest rates are a disincentive. Now that inflation seems to be stabilising somewhat, the time seems to have come to moderate the interest rates.” Connecting the above observation and subsequent statements by FM favouring interest rates reduction and need to take measures for achieving that, to Reserve Bank’s base rate were all contributions from analysts and media. Across sectors, lending rates are high in India. One is tempted to add, compared to lending rates, deposit rates are relatively low, as margins are high( may be, higher than the deposit rates in some countries). Let us remember interest rates remain ...

Complete recovery is an option in mental illness care strategies - The Hindu My VIEW: THIS IS A SUBJECT WHICH SHOULD BE OPENLY DISCUSSED. The issued raised here are very relevant. M G Warrier    

Obama opens US borders to more talent from India | Business Standard News "Are we a nation that educates the world's best and brightest in our universities, only to send them home to create businesses in countries that compete against us, or are we a nation that encourages them to stay and create jobs here, create businesses here, create industries right here in America? That's what this debate is all about," Obama said in his power-packed address.(Report in Business Standard, November 23, 2014) My VIEW: Obama and Modi are on the same wavelength on the issue.  LET US WAIT FOR THE REPUBLIC DAY ADDRESS M G Warrier

RBI Credit Card? Reserve Bank says don’t fall in the trap - Moneylife My VIEW: Reading first the title and the introduction, I had skipped this article, as I thought, credit card holders should be literate enough to know that first they should approach their bank for their banking needs and as RBI’s last and only account opened in the name of an individual was in favour of C D Deshmukh, Governor. But the modus operandi of the miscreants as explained in the article is scaring. Perhaps, beyond FINANCIAL INCLUSION, RBI and banks should have a nation-wide financial literacy drive suggesting each individual/family getting tagged to a bank branch to ensure the individual’s financial health. Like the family doctor, the FAMILY BANKER should help the individual/family in identifying the right savings and credit ‘products’ best suited for specific needs. M G Warrier

Notes from M G Warrier's Library: FAULT LINES : Dr Raghuram G Rajan The Book:   Fault Lines Author:       Dr Raghuram G. Rajan Publisher:   Collins Business Price:           Rs399/- Pages:          355   In the introduction Dr Rajan explains the use of the metaphor of fault lines thus: “In geology, fault lines are breaks in the Earth’s surface where tectonic plates come in contact or collide. Enormous stresses build up around these fault lines. I describe the fault lines that have emerged in the global economy and explain how these fault lines affect the financial sector.” Quoted this, to flag the clarity maintained throughout the book, in explaining the multi-dimensional economic riddles bothering governments, planners, economists and other stakeholders at this crucial stage of economic development and suggesting possible solutio...

Missing links in universal health care - The Hindu A very interesting analysis. I had covered some aspects of UNIVERSAL HEALTHCARE in the chapter with the same title in my book "Banking, Reforms & Corruption: Development Issues of 21st Century"(amazon.in) M G Warrier

THE MAN OF THE MOMENT Modi contender for Time’s person of the year(Business Standard, November 21, 2014) THE MAN OF THE MOMENT: Narendra Modi The book THE MAN OF THE MOMENT: NARENDRA MODI by M V Kamath and Kalindi Randeri was published by VIKAS in 2013(The copy before me is September 2013 reprint). The title, in a way, is misleading. The content of the book goes much beyond Narendra Modi and takes us to several aspects of ‘Gujarat Model’ and its Indian context. About Modi, I would like to quote from a letter Professor B M Hegde wrote to him in 2012 after the Gujarat election victory(The letter appears at page 219 of the book): “I had the good fortune of meeting you once in the past for a prolonged period of nine hours at a stretch…You struck up a pleasant conversation and I could realize that you had the good of the people at heart…” M G Warrier

Kotak Mahindra Bank to acquire ING Vysya Bank? - Moneylife MY VIEW: Financial sector, in which banks are major players, is facing several challenges. Private –public sector divide, or old-new differentiation or even size may not cover up the inadequacy of a national policy guidance for conduct of business in this sector. Now, problems, of bad management, of stress arising from weaknesses in regulation and supervision and most importantly-and this affects public sector banks more- external pressure are being handled on a crisis management basis as and when they crop up. There need to be conscious effort from Reserve Bank of India to address structural and policy issues with a holistic approach viewing the financial sector as one entity and its health as something which cannot be compromised for ‘popular’ or ‘business’ interests of government and corporates. M G Warrier

Getting the right PSB heads | The Financial Express#.VGvpK6NhRYs.gmail#.VGvpK6NhRYs.gmail MY VIEW: Government should aim at a long term policy for succession plans at higher levels in government and pubic sector and guide private sector which are dependent on public funds and government support to adopt transparent norms for top level appointments. The policy should, besides factoring in eligibility criteria and skill requirements take into account: (i)                 The need to allow extended periods beyond the present retirement age so that any appointee is able to continue at the post for a minimum of 5 years. For the purpose changes in the present retirement age may be necessary. The retirement age in India has not been revised upwards for a long time for various reasons. (ii)               To make succession smooth, empane...

Jaitley pitches for a rate cut ‘for a good fillip to economy’ | Business Line My VIEW: This refers to the report “Jaitley pitches for a rate cut ‘for a good fillip to economy’”(November 18). The following   observation made by the FM in his key note address at the Citi Investor Forum in New Delhi on November 17 is a welcome departure from the past: “Inflation, especially food inflation, has moderated in the last few months and global fuel prices have also come down. Therefore, if RBI, which is a highly professional organisation, in its wisdom decides to bring down the cost of capital, Reduction in the cost of capital, it will give a good fillip to the Indian Economy” Still, while the FM’s reference was to the measures from RBI to reduce cost of capital, a section of the media and analysts are making a narrow interpretation that ‘FM bats for a rate cut by RBI’. It is being forgotten that in India interest rates stand deregulated for long now and there has not be...

LIFE POSITIVE This too, this too By Suma Varughese June 2012 A new mantra is causing an inner confluence and giving rise to a deep sense of relaxation, says Suma Varughese I found to my delight that this summary dismissal of negativity reduced their impact on me. I sprang back to equanimity sooner and sooner. Suma Varughese is a thinker, writer, seeker, latent crusader and Editor-in-Chief of Life Positive. Write to her at suma@lifepositive.net   Growth seems to happen layer by layer. As you work on each layer of your conditioned self through constant awareness and acceptance, eventually it parts and you find that you have fallen into a deeper part of yourself. It is always a delightful experience when that happens. It feels like a new domain which you explore with anticipation laced with wonder. For the longest time, I have been working on going beyond the many negative labels I had given myself – emotional, clumsy, absent-minded, lazy, low self-con...

Letters: No country for PSBs | Business Standard Letters Nice presentation by Business Standard. Copied below is submitted version and online comments: This refers to the article “A Swachh Financial Sector Abhiyan?”(IRRATIONAL VOICE, November 17). The call for the cleansing of Indian Financial Sector has come at the right time. One had started getting a feeling that, as has been the experience earlier, India as a country was slowly returning to its slumber, finding comfort in the promises from Modi on the repairs and maintenance of the basic structure of India as a nation. Though the Indian banking system, more particularly public sector banks as a group, has been the target of criticism for all ills in the financial sector. The previous finance minister and spokespersons from the finance ministry had given an impression that the Indian financial sector will be relieved of all ills by implementing the commissioned report of the Financial Sector Legislative Reforms Comm...

Debashis Basu: A Swachh Financial Sector Abhiyan? | Business Standard Column My View: The call for the cleansing of Indian Financial Sector has come at the right time. One had started getting a feeling that, as has been the experience earlier, India as a country was slowly returning to its slumber, after finding comfort in the promises from Modi on the repairs and maintenance of the basic structure of India as a nation. The Indian banking system, more particularly public sector banks as a group, has been the target of criticism for all the ills in the financial sector. The previous finance minister and spokespersons from the finance ministry had given an impression that the Indian financial sector will be relieved of all ills by implementing the commissioned report of the Financial Sector Legislative Reforms Commission. This article exposes the weaknesses of FSLRC report and stresses the need for viewing financial sector as one entity which manages public funds, irrespective of...

Government may not let Rajan go to BRICS bank - The Hindu#.VGlAy5uYEHg.gmail#.VGlAy5uYEHg.gmail#.VGlAy5uYEHg.gmail#.VGlAy5uYEHg.gmail My view: Apart from the GOI position on 'release of Dr Rajan for BRICS post', if Dr Rajan accepts that position, which, by any standard, is not higher than the one he holds now except perhaps from remuneration and mobility angle, will prove those who doubted that he had come to India on a short term arrangement for improving his CV, right. M G Warrier, Mumbai

Modi says reforms should be delinked from politics | Business Standard News

Justice V R Krishna Iyer turned 100 on November 15,2014. Quotes from a couple of tributes: "Soli Sorabji, former attorney General wrote "..the one essential quality that distinguishes him from his judicial brethren and puts him in a class of his own is compassion, He took human suffering seriously and dispensed justice with compassion which he posessed in abundance.       His mission in life can be summed up in the moving poem by Emily Dickinson. If I can stop one heart from breaking I shall not live in vain If I  can ease one life the aching or, cool one pain Or help one fainting robin unto its nest again I shall not live in vain." Swami Agnivesh is also truly eloquent in his summing up of Krishna Iyer. "Justice Krishna Iyer has done the human species proud by embodying the greatness of our humanity.He reminds us of Marx in his passion for justice,of Lincoln in his commitment to freedom, of Lord Buddha in his oceanic compassion, of Shakespeare in t...

Jawaharlal Nehru: a legacy revisited - The Hindu

Poetics of a nation: remembering Nehru - The Hindu

The Global Analyst, November 2014 BANKING SPECIAL Banking Sector Reforms*                   Quest for a Holistic Approach   M G Warrier   The Global ANALYST has in different contexts looked at the financial sector reforms from various perspectives. The change of guard in Reserve Bank of India in September 2013 and installation of Modi government in New Delhi after 2014 Lok Sabha Elections have given an opportunity to India to take stock of the progress made so far in the entire reform process, make appropriate corrective measures and proceed further, keeping in view the sole objective of taking the India Growth Story forward without compromising the interests of 1.25 billion people who represent India. Certain observations made in the recent past by RBI Governor Dr Raghuram Rajan infuses some confidence even in the minds of analysts and economists, who, for valid reasons, fea...

Abandoning the idea of India - The Hindu

Nehru: The writer, the historian - The Hindu

To get future ready, RBI re-drafts core purpose | Business Line My view: Though the text of the final vision document prepared by RBI will be available in the public domain, only after it goes to RBI’s central board, it would be appropriate to go on record appreciating the initiative by the Bank and its present Governor Dr Raghuram G Rajan to complete a task envisaged in the preamble of the RBI Act, 1934. The Preamble stated, inter alia,that “… … But whereas it is expedient to make temporary provision on the basis of the existing monetary system, and to leave the question of the monetary standard best suited to India to be considered when the international monetary position has become sufficiently clear and stable to make it possible to frame permanent measures;” GOI and RBI missed several opportunities during the past 70 odd years to take up the task envisaged in the Act. Even the recent review of Financial Sector Legislative Reforms Commission bypassed this obje...

Arun Jaitley wants to sell PSUs that can’t be revived. Why will anyone buy them? - Moneylife Online comments: The brief information provided in the last paragraph gives some insight about the size of the CPSEs put together and their contribution to the country. We expect government to safeguard the interests of stakeholders, especially the individual citizens who have stakes in their capacity as investors, customers, clients, users of services and above all, as tax-payers, in public and private organisations including public sector undertakings. In the case of public sector undertakings including public sector banks government should own up responsibility for their inefficient functioning and incurring losses. Making organisations sick by following bad policy and throwing them to the laps of greedy private sector will have long term impact on the credibility of government as an institution. Post-independence India has a history of building and nurturing several pub...

Letters: PSUs and privatisation | Business Standard Letters Submitted version of the letter: November 7, 2014 Privatisation of PSUs This refers to the report “79 sick PSUs await FM’s privatisation move” (November 7). We expect government to safeguard the interests of stakeholders, especially the individual citizens who have stakes in their capacity as investors, customers, clients, users of services and above all, as tax-payers, in public and private organisations including public sector undertakings. In the case of public sector undertakings including public sector banks government should own up responsibility for their inefficient functioning and incurring losses. Making organisations sick by following bad policy and throwing them to the laps of greedy private sector will have long term impact on the credibility of government as an institution. Post-independence India has a history of building and nurturing several public sector organisations including Railways, Stat...

The birds of Bharatpur and the babus of Delhi - The Hindu A very interesting article. M G Warrier

A companion and a trip to cherish - The Hindu Online comments: I too remember the initial lines of the song, ‘ Ore oru oorile ore oru rajah, Ore oru rajavukku ore oru rani …’ further going to ‘ Ore oru poonai, ore oru poonai pettu onpathu pullai… ’ This was a favorite song my uncle who worked for MSEB after a stint in the Indian Army used to recite often when he came home to the Kerala tharavadu. Present generation with mobiles and apps will find it difficult to ‘catch the point’. Thanks for bringing back the old memories live. Even the on-journey friendships have become a thing of the past, as each one including small kids get logged in all the time when they are awake finding hardly any time to peep out of windows or chat with co-passengers. M G Warrier

Independently yours | Business Line This article calls on the society to be a little more compassionate. Please go to the link and read the article and online comments(my comments posted on November 8 copied below) "This should be an eye-opener for those who capsule social responsibility into ‘CSR’, charity, donations, sports and so on. The article calls on the society to be a little more compassionate and considerate to those who deserve and need support. Government, citizens, media and social organisations should do their bit to help the section of the society dependent on the majority who are privileged, for their very survival. Social Welfare should become a priority and government should take initiative to organise necessary infrastructure and support system for care-giving.   M G Warrier, Mumbai"

India Inc's weak financial health affecting banks' asset quality - Moneylife Online comments: SO, TRANSFERING SICK BABIES TO PRIVATE SECTOR FROM PUBLIC SECTOR WILL AGGRAVATE THE SITUATION(FOR THE UNINITIATED, THE REFERENCE IS TO THE FM'S PRIVATISATION MOVE). Financial health of the economy is dependent on the sound management of both public and private sectors. M G Warrier

79 sick PSUs wait forJaitleys next move (Chart to follow) | Business Standard News Online comments posted on November 7, 2014: We expect government to safeguard the interests of stakeholders, especially the individual citizens who have stakes in their capacity as investors, customers, clients, users of services and above all, as tax-payers, in public and private organisations including public sector undertakings. In the case of public sector undertakings including public sector banks government should own up responsibility for their inefficient functioning and incurring losses. Making organisations sick by following bad policy and throwing them to the laps of greedy private sector will have long term impact on the credibility of government as an institution. Post-independence India has a history of building and nurturing several public sector organisations including Railways, State Bank of India, Ordnance Factories and Research Organisations including ISRO. One is not a...

My letter published in the current issue of Frontline appreciating the magazine's focus copied below: FRONTLINE, November 28, 2014 Letters Frontline The recent innovation in the focus and content introduced by Frontline is most welcome. When some of the “older” periodicals are trying to fall in line with the market trend and changing the format and content to attract the upper class rich and the busy young, it is comforting to see a magazine devoting several pages to seriously discuss issues like the euthanasia being given to institutions like Planning Commission, conscious destruction of India’s public sector by an elite private sector by dubious means and the irreparable damage being done to social sector in the name of labour reforms. When mainstream magazines do not devote more than two or three pages to make a passing mention of developments like this, the articles in Frontline can easily be presented as background papers in groups discussing curr...

Passwords galore to manage - The Hindu

*SUNSET OF THE CENTURY: Rabindranath Tagore THE LAST SUN OF THE CENTURY SETS AMIDST THE BLOOD-RED COLOURS OF THE WEST AND THE WHIRLWIND OF HATRED. THE NAKED PASSION OF SELF-LOVE OF NATIONS IN ITS DRUNKEN DELIRIUM OF GREED IS DANCING TO THE CLASH OF STEEL AND THE HOWLING VERSES OF VENGEANCE. THE HUNGRY SELF OF THE NATION SHALL BURST IN A VIOLENCE OF FURY FROM ITS OWNSHAMELESS FEEDING FOR IT HAS MADE THE WORLDITS FOOD, AND LICKING IT, CRUNCHING IT AND SWALLOWING IT IN BIG MORSELS, IT SWELLS AND SWELLS TILL IN THE MIDST OF ITS UNHOLY FEAST DESCENDS THE SUDDEN HEAVEN PIERCING ITS HEART OF GROSSNESS…   *Note: “The Sunset of the Century”, translated by the poet, from Naivedya; The English Writings of   Rabindranathtagore, Volume II,Delhi 1996, page 466. Quoted in his article ‘Critiquing nationalism’ by K Satchidanandan (Frontline, November 14, 2014). The article takes you to a much broader spectrum. HAPPY READING(READ ...