A financial idea whose time has come | Business Line

A financial idea whose time has come | Business Line


7, 2015
slowly with the (Draft) IF Code
This refers to the
articles “Murder in the cathedral” by S S Tarapore and “A financial idea whose
time has come” by Pradeep S Mehta (Business Line, August 7). While the former has argued
strongly the case for caution in going ahead with dismantling existing
structures before one is sure about ‘equal’ if not better replacements, the
latter who has outsourced ‘inputs’ has depended on an observation by  20th Century common law judge Lord
Denning who preferred dwelling into the unknown to status quo. I will go with
Mehta’s view that ‘no power on earth must be allowed to stop reforms in India’.
But I beg to differ on
Mehta’s view that the Code (the Indian Financial Code in the form now in
circulation) must be urgently adopted. India was inspired when Prime Minister
Modi, speaking from the ramparts of Red Fort on August 15, 2014, said that
Planning Commission was a house in disrepair and he proposed to rebuild it
instead of wasting resources on repair and maintenance. He could put in place
NITI Aayog
without dismantling Planning Commission. Indian judiciary, India’s
legislations including those covered by Financial Sector Legislative Reforms
Commission (FSLRC) report and, perhaps, the entire architecture now in place
for governance are awaiting comprehensive overhaul.
The office of Indian
President, the Election Commission, CAG, RBI and the Supreme Court are some of
the limbs which have withstood the test of time during the last 68 years since
independence. In their case, the assertion by Lord Denning that ‘the law will
stand still’ does not hold good, as these institutions had fairly good
leadership all along, capable of application of mind, which helped them grow to
meet the challenges they faced from time to time. Any initiative to reform them
should take into account the evolution of their role so far. We must ensure
that replacements are better than what is available now. The content of (Draft)
IFC, unfortunately, does not give any assurance of the kind. GOI should hurry

G Warrier
, Mumbai


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