Warrier's blog

Govt rolls back proposals to set up new public debt management agency | Business Standard News

Jaitley rolls back proposal on public debt - The Hindu My VIEW: WELCOME MOVE My article on RBI@80 published in The Global ANALYST, May 2015 concluded with the following observations on PDMA: Public Debt Management Agency As the word ‘rift’ was used by media in the context of transfer of public debt management responsibility from RBI to another ‘independent’ agency, a short discussion of the proposal will be in order. Intentions behind the proposal for an independent Public Debt Management Agency ‘outside’ RBI and GOI may be noble. The institutional structure and policy approach of 1940’s(the aggregate market borrowings of the government of India from 1940-41 to 1945-46 was Rs1,157 crore and in the first half of 2015-16, GOI has projected a borrowing programme of Rs3.60 lakh crore!) and the present needs are different. Within RBI the skill development and acquisition of expertise for managing the core functions have been an ongoing process. But, beyond expertise, ultima...

Full text of interview with Sitaram Yechury - The Hindu My VIEW: Do watch this man. He is among the five who will find place in the Indian History of thecurrent decade, when it is written. The other four are, Modi, Kejriwal, Vinod Rai and Raghuram G Rajan. M G Warrier

16 million American kids battle hunger, says Johansson - Moneylife My VIEW: This is posted here not just to highlight the mismanagement of resources by the oldest democracy in the world. If 20 per cent of children in America are uncertain of their next meal, world organisations like United Nations and UNICEF should study the issue. America is one of the countries which destroy produce to ensure competitive price! The country also borrows for staying ahead in arms race and fighting wars outside its territory. High time world took note of the happenings in US. M G Warrier

Forced into marriage by social pressures - The Hindu

ODISHA SUN TIMES Imposters claiming to be RBI Guv cheating Odisha people Odisha Sun Times Bureau Bhubaneswar, Apr 29: Fraudsters claiming to be Reserve Bank of India (RBI) Governor Raghuram Rajan are sending out emails to many people in Odisha asking to fill up and send back some forms in order to win millions of dollars. to appear genuine and ask the readers to send out information such as name, address, mobile phone number, profession, nationality, marital status, email address, bank account number, branch etc to win the million dollar lottery provided by the British Government. Many people in Bhubaneswar have claimed to receive such fraudulent emails that attempt to steal personal information and even at times manage to phish out money from bank accounts. Bhubaneswar DCP Satyabrata Bhoi had a word of caution against this. “Do not provide any information if you receive any such email. Contact your nearest police station and bank if required. We have witnessed few incidents in rece...

Tax Burden on the Husband - Moneylife My Online comment: Awareness of Black Money This is with regard to “Will the Black Money Law Work?” by Sucheta Dalal. With the exception of  Moneylife  and, perhaps, some regional newspapers, media participation in creating awareness about black money, or the methods to unearth a part of the black money, or ‘black assets’ hoarded inside and outside the country, is not significant. Political parties use the issue for their limited pur-pose of winning elections. Government policy, including its taxation policy, has a role in the further growth of the black money monster. The banking system should also cooperate in handling this issue. MG Warrier, online comment

CA and CS HUB: INTERVIEW - RBI TO RETAIN POWER TO REGULATE GOVERN... : Interview - RBI to retain powers to regulate government bonds - Sinha Junior Finance Minister Jayant Sinha gestures during an interview wi... My VIEW: Debt Management Agency This refers to the report “RBI to retain powers to regulate government bond, says Sinha”(April 29). Intentions behind the proposal for an independent Public Debt Management Agency ‘outside’ RBI and GOI are indeed noble. Beyond expertise, ultimately, as the agency will have to handle ‘debt’ which is dependent on credibility and clout of the borrower, for the moment, it is better to continue status quo. Every time a new initiative or decision is taken affecting financial sector, we have a legacy of vested interests trying to tilt the decision in their favour by putting a wedge between GOI and RBI. It is comforting to see that the present RBI Governor and Finance Ministry have understood the game and are working in tandem. It would be expedient ...

HC junks case against SBI officers for not crediting 52 paise | Business Standard News My VIEW: April 29, 2015 52 Paise ‘sedition’ This refers to the report “HC junks case against SBI Officers for not crediting 52 paise”(April 27/28). The old Oxford dictionary on my table defines the word ‘sedition’ as ‘ n. conduct or speech inciting to rebellion’. Wondering, how the original case alleging non-credit of 52 paise fits into the definition of ‘sedition’. Anyway, now that while disposing the case the Hon’ble High Court has played safe by transferring the onus to redress the complainant’s grievance that State Bank of India forfeited 52 paise while crediting over Rs14,000 to his account to Reserve bank of India, the issue will remain alive for a couple of decades more. This observation is based on the experience that when it comes to minor issues, the consultation between the central bank and the finance ministry takes longer time and, quite likely, the decision on 52 Paise m...

Who Does the Modi Sarkar Really Represent? - Moneylife My VIEW SWOT of India  Growth Story Looks, the time is ripe for a SWOT of sorts of the India Growth Story! Just speeches can no longer sustain the people's enthusiasm. Nor can expectations about the inflow of foreign capital or slogans like "Make in India". Something 'real' has to happen at ground level with people's participation. The negative indications are coming from the approach of political leadersship(both ruling and opposition) which has not risen beyond caring for the essentials for winning elections. The country should take advantage of the support received from Modi, Vinod Rai, Kejriwal, Yechury and Raghuram Rajan who have opened debates during this decade which can change the living conditions of the masses in India. M G Warrier

Wake up call for justice delivery | Business Standard Column

Land, development and democracy - The Hindu

Imprisoned by marriage | Business Line My VIEW: Institution of marriage Post-retirement, during the last 12 years, I have been attending on an average 10 to 12 wedding functions in an year. 300 to 3000 guests attend each function, depending on the economic and social background of the parents of the groom/s. When I recall the pre and post-wedding negotiations between the two families involved(in both ‘arranged’ and ‘love’ marriages) and observe the way in which marriages progress, I think, what Prime Minister Modi said about Planning Commission while speaking from the ramparts of Red Fort on August 15, 2014(PM observed that the ‘building’ is in disrepair and rebuilding will be better), is mutatis mutandis applicable to the ‘Institution of Marriages’ in India. Those who take the crucial decision of ‘getting married’ or ‘giving in marriage’ generally do not go by the compatibility aspect (physical and mental), but by certain fancy and exterior considerations, mostly econ...

EPF or NPS - Moneylife My VIEW: In the first place, as the New Pension System(or its new avatar ‘National Pension System’) did not have the social security ingredients the traditional ‘defined payment’ pension schemes had, and the scheme had more similarities with Employees’ Provident Fund Scheme implementation by the Employees’ Provident Fund Organisation(EPFO)since 1952 except in relation to investment of funds in the equity market, there was no need for a new agency to implement NPS. The task should have been given to EPFO with freedom to upskill its workforce and acquire expertise from outside for investment management. This would have reduced the chaotic situation faced by PFRDA when it was hanging in the air without much legal support for about a decade. In retrospect, the belated admission that no one is sure that NPS is a better option than the existing provident fund scheme is to be welcomed. Moneylife foundation, on its part, should advise employees not covered...

Three speeches, three futures - The Hindu My VIEW: We need political professionals This refers to the article “Three speeches, three futures”(April 23). This excellent analysis of the context and content of the three speeches makes interesting reading. I do not subscribe to the concluding desperation expressed through “stop the train, I want to get off”, though. The trio Rahul Gandhi, Yechury and Modi makes a representative cross section of today’s political leadership. For historic reasons, people who accept politics as a career option in India come from ‘family’, cadre, or ‘social work’. We need more and more people to take up politics as a profession, if we have to weed out the fourth category which has usurped political power in India. India can no more depend on the feeder base of school/college drop-outs, retired civil service officers, children/grand children from families of politicians who belonged to the freedom struggle era or certain other part-time employees...

Mothers' Days: Leave them to enjoy that phase in their lives - The Hindu

Full Transcript of the Arun Jaitley interview - The Hindu

India’s credit-worthiness - Moneylife Please do read my article and participate in the discussion. M G Warrier

Rajan cuts through the RBI fog; tells officials to be professional | Business Line My VIEW: The Editor The Hindu Business Line April 21, 2015 Infusing professionalism This refers to the report “Rajan cuts through the RBI fog; tells officials to be professional” (April 18). As one who had opportunity to read the text of Dr Rajan’s note sharing his thoughts with RBI colleagues, on which the report is based, thought it appropriate to respond to some of the issues raised by the RBI Governor. Many of the issues raised in the note are internal, like the insinuation that only Ph. D’s can interpret RBI circulars, cost involved in providing pens and pads at meetings, reducing costs on house magazine, under-exploitation of a staff suggestion scheme (which is in existence in RBI for decades) or better utilisation of residential space could have been sorted out internally and then gone to the media. There would have been no resistance inside RBI as the institution is known to be receptive to p...

Syed Zubair Naqvi, Kapil Patidar

‘Govt. has taken steps to ensure strong, steady growth’ - The Hindu

Letters: Waiting for reforms | Business Standard Letters WELL BEGUN IS HALF DONE. THE OTHER HALF.... M G Warrier

All those beautiful birds about town - The Hindu WATCH ALL THE PHOTOGRAPHS OF BIRDS

Tax Travails of Seniors - Moneylife My letter: Managing ill-health This is with respect to ‘I have Parkinson’s but Parkinson’s will not have me’ in the Beyond Money section. Articles like these help readers familiarise themselves with the latest developments in certain areas of medical science. As those who really suffer such ailments have no access to websites or newspapers, the responsibility for sharing information is more on those who are healthy. N Madhavan, Dr BM Hegde and  Moneylife  deserve special appreciation for their contribution in creating awareness about living a healthy life and ‘managing ill-health’. Perhaps, Moneylife could adapt an old slogan of a steel producer and say, “Moneylife also talks about money!” MG Warrier

How Raghuram Rajan is remaking India's banking sector | Business Standard News My VIEW: Banking sector reforms On several occasions in the past also, there has been serious deliberations on banking sector reforms in India. This season, the difference is that the leadership at the central bank together with a change in approach to policy stance in Delhi has taken the theoretical analyses to the drawing board. Well begun, is half done. The other half will be dependent on the continuity of leadership at RBI and policy support from the political leadership. The analyses of business share and market capitalisation of public sector banks vis a vis private sector banks is timely. In today’s environment competitors cannot remain healthy without a level playing field. Level playing field, not only in terms of uniformity in policy support, but also in terms of business expectations. A change in the mindsets of both public sector and private sector bank managements and their wo...

Labour has changed | Business Line My VIEW: Changes are faster than ever now. Workers owning businesses, businesses running without workers on their rolls, unenforced labour laws, several pieces of legislation remaining on the books no one knowing for whom they are meant, delayed and denied justice, outsourcing with no regulatory intervention have all become part of our life. Workers unions, political leadership and social workers who do not own channels or newspapers get continuously blamed by the media for all the ills in the society. M G Warrier

Troubled Banks, Beleaguered Customers - Moneylife My VIEW: Like Indian Railways, Indian banking System is also surviving collapse and serving the customers not because of, but in spite of, the management. The credit should go to the majority of their employees who are loyal to the institutions they serve. No, I am not referring to the people who manage banks, when say ‘management’ . The reference is to the policies that guide them. The short-cut of launching new institutions to serve target clientele or ‘directing’ banks to earmark funds for priority sectors or neglected geographical areas alone will not yield results now. Many HR-related issues from recruitment and training, remuneration and incentives/disincentives, career progression, board and top level appointments, neglect of skill-development and opting outsourcing as a permanent solution for relationship problems between management and employees (list can be much larger) have contributed to the sagging employee mo...

The Hindu Business Line, April 14, 2015 Letters Rating indicators* This refers to ‘What Moody’s failed to notice’ (April 14). There are more relevant positive factors ‘global’ rating agencies shut their eyes to. How Indian analysts and economists miss them or when noticed, use them only for defending certain positions, is a matter research scholars should probe. India is a victim of foreign domination even today when it comes to assessment of the country’s self-esteem. Our credit-worthiness, poverty level, comparative position in several other human development indicators and ability to protect against environmental hazards are all decided by outside agencies which have no independent means to judge us other than data fed by our own agencies within the country. It is comforting to see that a change in approach in Delhi through various initiatives, including the effort to promote slogans like ‘Make in India’, acceptance of the need for infusing professionalism in governance and better...

What Moody’s failed to notice | Business Line My VIEW:  There are much more, and more relevant positive factors ‘Global’ Rating Agencies close their eyes to. How Indian analysts and economists miss them or when noticed, use them only for defending certain positions only is a matter research scholars should probe. India is a victim of foreign domination even today when it comes to assessment of the country’s self-esteem. Our credit-worthiness, poverty level, comparative position in several other Human Development Indicators and ability to protect against environmental hazards are all decided by outside agencies which have no independent means to judge us other than data fed by our own agencies within the country. It is comforting to see that a change in approach in Delhi through various initiatives including the effort to promote slogans like ‘Make in India’ acceptance of the need for infusing professionalism in governance and better financial sector management have ...

RBI rearticulates its Core Purpose, Values and Vision in 81st Year At the onset of its 81st year, the Reserve Bank of India (RBI) has rearticulated its core purpose, values and vision statement. The statement would inform and guide all its actions and activities in pursuit of its commitment to the public interest and common good. A need was felt to rearticulate the core purpose of the Reserve Bank so as to delineate its strategic objectives in contemporary terms, to provide a framework and backdrop within and against which its policies would be formulated. The functions of the Reserve Bank since 1935 have been guided by the Preamble of the Reserve Bank of India Act under which it was set up in 1934. The Preamble reads thus: “… to regulate the issue of Bank notes and the keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage.” The statement rearticulating the Preamble to the Re...

Will the Black Money Law Work? - Moneylife My VIEW: With the exception of Moneylife and perhaps some regional newspapers here and there, media participation in creating awareness about black money or the methods to unearth a part of the black money or 'black assets' hoarded inside and outside the country is not significant. Political parties use the issue for their limited purpose of winning elections. Government policy including taxation policy has a role in further growth of the black money monster. Banking System should also cooperate in handling this issue. M G Warrier

Join our national movement of Make in India: Modi - Moneylife

Sitaram Yechury interview - The Hindu My VIEW: Some of the comments give one an impression that one or the other political party    is responsible for all the ills we meet with. It is time WE THE PEOPLE started sharing responsibility in election process, governance and started causing 'corrections' when things go wrong. Let us take time out from peeping into the internal affairs or thinking process of individual political parties and concentrate on electing the best candidates in elections, irrespective of individual candidate's party affiliations. Change will come. M G Warrier

Abel prize for a beautiful mind - The Hindu Concluding three paragraphs copied below: M G Warrier "Prof. Nash’s achievement is all the more spectacular in the context of the personal suffering he had to overcome. Nash suffered from paranoid delusions for nearly 25 years during which he could not productively engage with mathematics. But years of hospitalization and treatment did not affect his progress because, after the break, he came back to mathematics at Princeton University and did outstanding work in partial differential equations. This by itself should inspire many who grapple with mental illness or substance abuse and are unable to talk about it to anyone; to those who resist medication not realizing that it could alleviate their problem to a large extent and those who simply don’t know that their disorders could be treated. John Nash’s life stands as a powerful example of the triumph of the human spirit, the beauty and joy of mathematics and, most of all, of how ment...

Interview with Chinese Ambassador Le Yucheng - The Hindu

The entire city is their garden - The Hindu

MUDRA Bank Confusions - Moneylife My VIEW: One cannot deny that there remains enough ‘space’ for some more new institutions in the Indian Financial System. Problem arises, and that problem should not be seen lightly, when new institutions are floated when existing ones stray away from their responsibilities or government finds it expedient to entrust funds and responsibilities to a new organisation because the one which exists follows prudent norms, which, if applied to the clientele now targeted, will delay things. In addition to Mahila Bank of 2014 and MUDRA (Bank?) of 2015, RBI Governor is optimistic about a variety of small, medium and large banks opening shops during the next couple of years. When SBI, UTI, IDBI, SIDBI, NABARD, RRBs and EXIM Bank were formed or structural or ownership changes were made in commercial banks and banks cooperative sector, there was close consultation between GOI and RBI which ensured smooth launching of institutions and introduction o...

Modi government eyes temple gold - The Hindu My VIEW: A WELCOME INITIATIVE M G Warrier

P Vijayan wins CNN IBN Indian of the Year Award - Trivandrum News | Yentha.com John Brittas interviewed P Vijayan @JB Junction, Kairali TV Sreekanth Kottakkal wrote an article "VIJAYEEBHAVA" in Mathrubhumi Vaaraanthappathippu, April 12, 2015. I appreciated Shri Sreekanth Kottakkal's article: April 12, 2015 Dear Sreekanth Vijayeebhava Greetings I am an admirer of your style of presentation and selection of topics and people. Congratulations for ‘Vijayeebhava’ ( Vaaraanthappathippu, April 12). I had seen Vijayan @JB Junction(Kairali TV). His simple way of presentation of his life’s philosophy and the deep understanding of subjects he talks about will impress anyone. Warm regards M G Warrier mgwarrier.blogspot.in 

The secret of happiness? Accept being unhappy - The Hindu Excerpts... I am going to come out of the closet, and make a shocking, even shameful, admission. I am not a happy person. In fact I am the sort of chap who complete strangers come up to in the street and advise to cheer up, since it might never happen. I am not, I should emphasise, an unhappy person either. I love to laugh,....click on the link to read on

Moody's thumbs up for Modi's policies | Business Standard News My VIEW: India is a victim of foreign domination even today when it comes to assessment of the country’s self-esteem. It is comforting to see that a change in approach in Delhi through various initiatives including the effort to promote slogans like ‘Make in India’ acceptance of the need for infusing professionalism in governance and better financial sector management have started yielding results. But, it is agonising to see the dependence of the Indian elite which waits for a Prime Minister to speak from the ramparts of Red Fort to take cleanliness and toilet facilities for all seriously or to move forward in the direction of indigenous minting of coins or producing quality paper and  ink inside India for printing currency notes. Successive RBI Governors have expressed their concern about reliable current data to base their policy decisions. These are areas where perceptible improvements can be made ...

Moody’s ups India outlook - The Hindu My VIEW: India is a victim of foreign domination even today when it comes to assessment of the country’s self-esteem. Our credit-worthiness, poverty level, comparative position in several other Human Development Indicators and ability to protect against environmental hazards are all decided by outside agencies which have no independent means to judge us other than data fed by our own agencies within the country. It is comforting to see that a change in approach in Delhi through various initiatives including the effort to promote slogans like ‘Make in India’ acceptance of the need for infusing professionalism in governance and better financial sector management have started yielding results. Successive RBI Governors have expressed their concern about reliable current data to base their policy decisions. These are areas where perceptible improvements can be made without ‘huge’ financial investment. Now that NITI Aayog has relatively l...

Monetary policy in a bind | Business Standard Books My VIEW: Transmission delay is not only between rate cuts and rates revision by banks. IT IS HAPPENING BETWEEN changes in policystances of RBI and interpretation by economists/analysts. M G Warrier

What makes for a memorable goodbye - The Hindu My VIEW: My thoughts go back to September 30, 2003, the date of my retirement from RBI. M G Warrier

Those predictions in medicine and astrology - The Hindu Prof: BM Hegde had shared part of the content in an article he posted @moneylife.in M G Warrier

FM’s gold schemes - Moneylife My VIEW: It is comforting to see that the debate on gold management is making some progress. Once the government musters the political will to recognise gold as a national resource, the whole scenario of India Growth Story will change for the better. The advantages are: 1) When some banks start opening gold accounts, they will also be able to maintain more liquid assets under Section 24 of the Banking Regulation Act, 1949(the section requires banks to maintain a certain percentage of their liabilities in cash, gold or unencumbered approved securities) in gold.   2) Individuals and institutions will be encouraged to keep their gold stock with banks thereby reducing misuse(Now for the rich, gold is a medium to show off their wealth- Not only in the form of jewellery, but by erecting statues and flag masts in solid gold-less said about the malpractices practiced in such transactions, the better!)   3) Need to import gold will get considerably b...

Debashis Basu: Mudra Bank - new regime, old philosophy | Business Standard Column

From the reader's editor: A newspaper of record - The Hindu My VIEW: For the record This refers to the piece “A newspaper of record” (From the Readers’ Editor, April 6) and the lead article “A new public policy for a new India(April 6). The later, for me, seemed a confirmation of the inferences contained in Panneerselvan’s column. I started reading The Hindu during the late 1950’s and even during early sixties, in the remote village in Malabar, I had access only to The Hindu Weekly Review brought out by the newspaper mainly for the consumption of its readers abroad. From my personal experience, I can easily endorse the Readers’ Editor’s view that the newspaper all along   and now The Hindu group including The Frontline remained ‘committed to providing comprehensive coverage of current events to make sense of the prevailing politics and current affairs’. Articles like the one by Shiv Vishwanathan which gives a critically analytical and proactive view on the emer...

A new public policy for a new India - The Hindu My VIEW: Articles like this one which gives a critically analytical and proactive view on the emergence of public and policy intellectuals and their exploitation by stakeholders make The Hindu unique. The newspaper has never shied away from its Dharma for fear of being controversial or plainly speaking for fear of the ‘punishment’ it may get from the affected who normally are the rich and the powerful. M G Warrier , Thiruvananthapuram

Raghuram Rajan Narendra Modi RBI - The Hindu My VIEW: Reserve Bank of India has been generally lucky in getting good governors. Without meaning anything against others, out of the 22 governors who occupied that august position before Dr Rajan, 11 who were in position for 5 years or more have all contributed to the growth of RBI and management of India's financial sector. Amongst the others also, thereare exceptions like Dr Manmohan Singh and Dr Subbarao. M G Warrier

I know what it means to be poor, says PM - The Hindu

RBI cautions banks against excessive lending to infrastructure projects - The Hindu

Letters: RBI's legacy | Business Standard Letters

Constancy and change | Business Standard News My VIEW: This short article which gives a fair idea of the pains Subir Gokarn took to understand the institution from within during the short tenure as Deputy Governor confirms the need to allow a longer period of stay in top positions in organisations like RBI. Dr Raghuram Rajan is the 23 rd Governor of RBI. 11 out of 22 who held the position earlier remained in position for 5 years or more. GOI should consider a fixed tenure of 5 years for Governor and Deputy Governors with enabling proviso for further extension of term. Mid-term ‘easing out’ should be for transparent reasons. M G Warrier

A new milestone at Mint Road | Business Standard News My VIEW: Great! Proud of having been part of this organisation from 1968 to 2003. M G Warrier

The uneasy relationship | Business Standard News My VIEW: At 80, in retrospect, RBI can look back with pride about the central bank's performance so far. Never during the last (20th ) century, the political leadership threatened the RBI's rightto perform its mandated role. Post-LPG(Liberalisation-Privatisation-Globalisation) there is an effort to truncate RBI which can make RBI a morbid entity, making revival difficult. M G Warrier

In Sachin’s footsteps | Business Line Submitted version of my response: ‘Sachin’ Model This refers to Raghuvir Srinivasan’s piece “It’s a different innings for Sachin”(April 1) and BL interview with Sachin Tendulkar with focus on development of Puttamraju Kandrika in Andhra Pradesh as a model village under Sansad Gram Yojana. Let us congratulate Sachin and Joint Collector Rekha Rani whose leadership qualities and the urge to do something for India changed the lives of 400 people in the adopted village. Projects like community development project under which development of blocks of manageable size were under Block development Officers(BDOs) responsible for planning and ensuring linkages, Lead bank Scheme under which flow of credit to villages under the purview of each bank branch(under service area approach)  were to be provided backward and forward linkages necessary to ‘absorb’ credit for productive purposes and  Integrated Rural Development Programme have all...

RESERVE BANK OF INDIA @ EIGHTY : TIME FOR INTROSPECTION Having commenced functioning on April 1, 1935, Reserve Bank of India is celebrating its 81st birthday on April 1, 2015. If one goes by the messages exchanged between the then Secretary of State for India and the Reserve bank of India Governor on the occasion of the inauguration of the Bank, looking back, the institution can be proud about having met the role expectations excellently well. To quote from the History of the Reserve Bank of India(Volume I): “On the occasion of the inauguration of the Bank, the Secretary of State for India sent the following message to the Governor: As Reserve Bank commences active operations today I take opportunity to convey to you and your colleagues on the Board my most cordial good wishes and to express my confidence that this great undertaking will contribute largely to the economic well-being of India and of its people. Replying on behalf of the Deputy Governors, the Board and himself, the Go...