FinMin asks RBI to ease infra funding norms | Business Standard News

FinMin asks RBI to ease infra funding norms | Business Standard News
Online comments posted on November , 2014:

In the present
communication, finance ministry seems to have clearly advised RBI to make changes in its
policy stance on a specific issue. Under RBI Act, GOI has powers to give
directions to RBI and therefore, when a communication goes from finance
ministry to RBI, the later will make efforts to comply  with the requirements.
This read with the report
“Finance Minister Arun Jaitley favours interest rate cut”(October 26) makes
disturbing reading. In an interview given to Times of India Finance Minister
said 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.” Such views, if followed
up  with letters from finance ministry to
RBI which could be interpreted as advice for compliance impairs the institution
of central bank.
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
deregulated in India for a long time now. FM’s reference to high lending rates
in a particular sector(real estate) should be seen in this context as a concern
over higher interest rates and linking it to RBI’s policy rate, just diverts
attention from the main issue.
Let us hope, the proposed
meeting of PM with Bank Chiefs mentioned in the interview by Arun Jaitley will
bring clarity on how banks should be allowed to function without incurring
losses and meet national priorities. Especially for Public Sector Banks, the
support promised by FM is crucial. A proactive policy support will help banks
to bring down NPAs, helping them to do their business on lesser margins and
bringing down lending rates.
M G Warrier, Mumbai


 

Comments

Post a Comment

Popular posts from this blog

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 SUNSET OF THE CENTURY

*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 MORE STAN
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 music and dance of the snakes continued. The snakes rendered service to the kapalika as they considered him  a Shiva bhakta.Shiva was much pleased with t
Read more