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Showing posts from 2016

WELCOME 2017

Welcome, 2017 Ring out the old, ring in the new Alfred Tennyson Ring out the old, ring in the new, Ring, happy bells, across the snow; The year is going, let him go; Ring out the false, ring in the true. Ring out, wild bells, to the wild sky, The flying cloud, the frosty light: The year is dying in the night; Ring out, wild bells, and let him die. Ring out the grief that saps the mind, For those that here we see no more; Ring out the feud of rich and poor, Ring in redress to all mankind. Ring out false pride in place and blood, The civic slander and the spite; Ring in the love of truth and right, Ring in the common love of good. Ring out a slowly dying cause, And ancient forms of party strife, Ring in the nobler modes of life, With sweet manners, purer laws. Ring out old shapes of foul disease; Ring out the narrowing lust of gold; Ring out the thousand wars of old, Ring in the thousand years of peace. Ring in the valiant man and free, The larger h

Regaining credibility

Regaining credibility : RBI has suffered a loss of stature and autonomy... RBI's credibility This refers to your editorial “Regaining credibility” (Business Standard, December 29). The marginalization of India’s central bank by GOI through finance ministry reached its peak when Chidambaram as FM threatened ‘walk alone’, if RBI doesn’t fall in line with Centre’s prescriptions. The then Governor Duvvuri Subbarao has recorded his bitter experiences in his memoirs “Who Moved My Interest Rate?”. It has to be said to the credit of Dr Subbarao and his illustrious successor Dr Raghuram Rajan, that both took pains to understand the legacy and role of Reserve Bank of India and were quick in responding to any effort from outside to undermine the esteem of the central bank. Their fast and measured responses from inside (policy angle) and outside (through interaction with media and speeches) will be part of RBI’s history for the current decade, when it is written. The responsibili

Rahul seeks answers from PM, demands balm for note-ban hit

Rahul seeks answers from PM, demands balm for note-ban hit : White paper on demonetisation also figures on Congress leader’s list... Rahul's charter This refers to the report “Rahul seeks answers from PM, demands balm for note-ban hit” (Business Line, December 29). Once you are able to ask right questions, right answers will emerge from somewhere. One regrets that the Congress leader waited and watched what happens to the  post-demonetisation India for long fifty days, instead of raising these questions and suggesting solutions when parliament was in session. Let us have a look at the charter he has presented at the press conference yesterday: i)                    Waive farm loans; provide farmers 20 per cent bonus on MSP: Poor repaying capacity of the farmers and low MSP are issues that existed even before November 8, 2016 and as a responsible opposition, Congress should have raised them in parliament. ii)                 Deposit Rs25,000 in the account of every fem

Walk the talk

Walk the talk : Modi’s campaign against black money should extend to politics... Excerpts: " India's electoral finances are remarkably opaque compared to most developed and even several developing countries. A study by the Association of Democratic Reforms shows that over 75 per cent of the recorded funds received by national parties between 2004-05 and 2011-12 are from ‘unknown’ sources. There is no mention in these cases of the name of the donor, address, or PAN — such a violation in the case of an individual tax entity would invite tax scrutiny or worse. Introduction of the ₹2,000 limit may help address this malaise. The accounts of political parties should be subject to public scrutiny, as in the case of the US, Germany, Italy, France, Brazil, Bulgaria, and even Nepal and Bhutan. It remains to be seen whether the Budget session pursues a serious discussion on electoral reforms."

DEMONETIZATION DEBATE CONTINUES

My views on ‘demonetization’ This Blog takes on record diverse views on issues it discusses by providing links to  published articles on current issues. After November 8 announcement  on withdrawal of legal tender character of Rs1000 and Rs500 notes, media was flooded with articles on the subject. Representative views have been accommodated here. I have responded through online comments, letters and a couple of articles. My next article on the subject (which was originally submitted on December 15 and revised twice in the context of RBI’s December 19 circular(finally we dropped the mention about December 19, 2016 circular as it was practically withdrawn on December 21) will appear in January 2017 issue of The Global Analyst. M G Warrier Select links to articles published in newspapers/magazine on the subject given below: Usha Thorat https://www.google.co.in/amp/indianexpress.com/article/opinion/columns/reserve-bank-of-india-rbi-remonetisation-rules-problems-note

WEEKEND LIGHTER: BYE 2016, WELCOME 2017!

WEEKEND LIGHTER: BYE 2016, WELCOME 2017 (December 24/25, 2016, No.54/2016)* Weekend Lighter is posted every Saturday @mgwarrier.blogspot.in Feel free to mail your views on this edition of WL to   mgwarrier@gmail.com HAPPY X’MAS & HAPPY NEW YEAR *Posted on December 21, 2016. Next issue will be posted during the first week of January 2017 Opening remarks RBI meddling with public trust Reserve Bank of India circular* dated December 19, 2016  on deposit of Specified Bank Notes(SBNs) issued to banks can impair the public trust in the banking system in general and in the RBI as the institution statutorily responsible for Currency Management in particular. Consequent to the withdrawal of ‘legal tender’ status of Rs500 and Rs1000 currency notes on November 8, 2016, GOI and RBI have issued and implemented various restrictions on deposits and withdrawals of money, many of them for administrative reasons. By and large, despite political provocations, citizens accep

Letters: Playing with trust

Letters: Playing with trust : By and large, despite political provocations, citizens accepted the measures conceding the broader objectives of fighting corruption... With reference to the report, “Fresh curbs on deposits above Rs 5,000” (Business Standard, December 20) the Reserve Bank of India (RBI) circular dated December 19, on deposit of Specified Bank Notes (SBN) issued to banks can impair public trust in the banking system and in the RBI as the institution responsible for currency management. Following the withdrawal of “legal tender” status of Rs 500 and Rs 1,000 currency notes on November 8, the government and the RBI have issued and implemented various restrictions on deposits and withdrawals of money, many of them for administrative reasons. By and large, despite political provocations, citizens accepted the measures conceding the broader objectives of fighting corruption, black money and fake currency in the system. Remember, the government has not yet w

Absolutely arbitrary

Absolutely arbitrary : This refers to ‘You have only one chance to deposit scrapped notes worth over ₹5,000’ (December 20). By and large, citizens have accepted the measures undertaken by the Government and the RBI in deference to the broader... This refers to ‘You have only one chance to deposit scrapped notes worth over ₹5,000’* (December 20). By and large, citizens have accepted the measures undertaken by the Government and the RBI in deference to the broader objectives of fighting corruption, black money and fake currency in the system. The instructions now issued, restricting deposits to just once, giving discretion to bank officials to accept or reject deposits of SBNs and re-routing such deposits compulsorily to deposits under the Taxation and Investment Regime for the PMGKY, smacks of arbitrariness. If someone alleges that the RBI is acting under ‘instruction’ from the Centre to ‘promote’ fund-raising, the allegation may stick. Such a casual approach to currency managem

Krishna for Today: Tiruppavai notes 01. Varaha, Bhoodevi and Andal. #...

Krishna for Today: Tiruppavai notes 01. Varaha, Bhoodevi and Andal. #... : Tiruppavai notes 01. Varaha, Bhoodevi and Andal. #krishnafortoday  Please visit kamadenu.blogspot.com occasionally.

RBI meddling with public trust

RBI meddling with public trust This refers to the report “You have only one chance to deposit scrapped notes worth over Rs 5,000” (The Hindu Business Line, December 20). Reserve Bank of India circular* dated December 19, 2016  on deposit of Specified Bank Notes(SBNs) issued to banks can impair the public trust in the banking system in general and in the RBI as the institution statutorily responsible for Currency Management in particular. Consequent to the withdrawal of ‘legal tender’ status of Rs500 and Rs1000 currency notes on November 8, 2016, GOI and RBI have issued and implemented various restrictions on deposits and withdrawals of money, many of them for administrative reasons. By and large, despite political provocations, citizens accepted the measures conceding the broader objectives of fighting corruption, black money and fake currency in the system. Remember, GOI has not yet withdrawn the RBI promise to pay value, backed by government guarantee which made SBNs currenc

BRIDGING THE LEARNING DEFICIT

http://www.thehindu.com/opinion/editorial/Bridging-the-learning-deficit/article16900169.ece Bridging the learning deficit Excerpts “The problem of poor learning outcomes is of particular concern, for it is a structural issue pertaining to the design of curricula and ingrained rote learning methods. These have been the backbone of India’s teaching tradition for over half a century. But will this help create the kind of workforce that India wishes to develop: nimble, highly-skilled and ready for the digital age, the global economy and new pathways of occupational mobility? Or will the sheer weight of an outdated, colonial-era education system make Indians too sluggish and skill-deprived to cope in a highly competitive global arena? While efforts of the present and previous government to boost the quality of learning in higher and vocational education must be appreciated, policymakers ought not to ignore early childhood education and primary schooling, the phases during which

TATAS: WE OPERATE BUSINESSES AND LIFE ON TRUST, CONFIDENCE

http://www.thehindu.com/business/Industry/%E2%80%98We-operate-businesses-and-life-on-trust-confidence%E2%80%99/article16900277.ece The Hindu, December 19, 2016 Interview: Ramachandran Venkataramanan, the managing trustee of Tata Trusts in conversation with Piyush Pandey: Excerpts: “We operate businesses and life on trust and confidence, not necessarily on a legal contract. That doesn’t mean we are doing anything illegal. If you have to finalise the books of accounts of a particular company, you could say ‘Financial systems and processes do not exist’. It could be reworded to ‘There is a need to strengthen the financial systems and processes’. It means the same but the way you interpret it or deal with it makes a huge difference. If you have trust, you will say the latter. If you don’t have trust, you will say the former. ***   *** Salt fortification We worked with the Ministry of Women and Child Development, Health and the Food Safety Standards Authority of

CONFUSING BETWEEN 'LESS CASH' AND 'CASHLESS'

http://timesofindia. indiatimes.com/home/sunday- times/all-that-matters/three- reasons-why-a-cashless- society-would-be-a-disaster/ articleshow/56041036.cms Confusing between ‘LESS CASH’ and ‘CASHLESS’ M G Warrier This refers to Amit Varma’s article “Three reasons why a cashless society would be a disaster”* (By Invitation, Times of India, December 18, 2016). The writer has done fairly good research to padd up his arguments against what he fears as an emerging cashless India. So much so, he has dug up several quotes from young Mohandas Karamchand Gandhi (pre-1910) to prove that howsoever great the people may become in later life, it is possible that they might have made some absurd observations in their 30’s! Don’t ask me the relevance of this proof to the disaster (Cashless India) he is talking about, in this well-written piece. Unintended damage is, of course to ‘Brand GANDHI’, as the observations by the 21 st Century version of that brand-name are becoming ‘viral’ as Wh

WHEN LIFE AS YOU KNOW IT ENDS

http://www.thehindu.com/books/ article16896644.ece When life as you know it ends* Excerpts: How many of us while giving an account of a day that turned on us without a warning have begun its telling with the following lines: “It was a perfectly normal day. The sun was bright and the sky blue and clear”? Whether it was 9/11 or 26/11, or deeply personal narratives, normalcy is the default position at the time of their retelling. Joan Didion’s bestseller,   The Year of Magical Thinking , reveals itself in different ways with each rereading. “Life changes fast. Life changes in the instant. You sit down to dinner and life as you know it ends.” *The Hindu, December 18, 2016: SHELF HELP Review of the book “The Year of Magical Thinking” by Joan Didion (Please use the link above to read the review)

GOI & RBI: Indecent exposure

Double counting possible? Govt asks RBI to recheck deposit data for old notes : Economic affairs secretary says double counting possible; cash availability to improve in three weeks...     Indecent exposure  Apropos the story "Govt asks RBI to recheck deposit data for old notes" (Business Standard, December 16), while the content of the report may be factual, the caption sounds mischievous and misleading. On the face of it, the impression one would get is that RBI has reported some final figures on old Rs500 and Rs1000 notes which have been deposited into bank accounts pursuant to their being declared "not legal tender" on November 8, 2016 and the accuracy of the figures reported is being doubted by GOI. As the accounting of such receipts will continue to be a "work in progress" till December 30, 2016 at banks' level and till March 31, 2017 in RBI, the disputes about accuracy should not become a subject for media debate before April 2017. Th

WEEKEND LIGHTER: ETHICS IN POLITICS

WEEKEND LIGHTER: ETHICS IN POLITICS (December 17/18, 2016, No.53/2016) Weekend Lighter is posted every Saturday @mgwarrier.blogspot.in Feel free to mail your views on this edition of WL to   mgwarrier@gmail.com Section III SERENITY PRAYER I Opening remarks Political funding T K Arun’s article “Fix Political Funding First” (Economic Times, December 14) raises several equally relevant issues which have a bearing on cleansing up the system. Aggregated, they justify PM’s November 8 announcement withdrawing ‘legal tender status’ of high value currency as a first step in the right direction. Here’s why. Political funding outside banking channels has been by shifting huge quantities of currency from one individual to another or a group of individuals. Cash in effect has been a tool in running a parallel economy. Successive governments have been shy to harm the parallel economy run by those who retained unaccounted cash and wealth in various forms as that served as a cap