Warrier's blog

Aadhaar status check: Nearing a billion : Aadhaar now has legal backing but it still faces challenges of privacy and data sharing. With enrolment numbers creating history now, we take a look at strengths April 1, 2016 Connecting in the air This refers to the excellent presentation on Aadhaar (Business Standard, Nearing a billion & counting, April 1, 2016). Reaching out to over 70 per cent of India’s 1.3 billion population with an identity card is a great achievement in itself. But most of them had ration cards, bank accounts, PAN card numbers, passports or some other documents which had their names ‘printed’ on them. There lies the problem flagged in the second line of the caption: “but connectivity is the problem”. Call me a sceptic, pessimist or a mere ‘anti-establishment guy’ for saying Aadhaar is just an additional burden on Indian citizen. In a country which finds it tough to track the travel plans of Mallya, which has Rs32,000 crore(this excludes the interest p

Put it off, and be creative : Perhaps I might be forgiven, being in the age group that I am, for making a mountain out of a molehill and then considering the same as so insurmountable. Imagine, therefore, my surprise, a sense of Excerpts: " A decision to act may not always be easy, and the choices may not be clear-cut or comfortable. No matter whether it is a problem faced by an individual or by a community, difficulties in problem-solving are often associated with an inadequate or incomplete problem-definition that may happen sometimes in a typical real-life scenario due to lack of input information required and/or uncertainty in the available data." read full article using the link... M G Warrier

To dad, with love : He was equally well- known for his temper and his generosity. Relatives, friends and neighbours would always count on him for help, be it for building a house, conducting a wedding, pursuing education A poem in prose! A great poetry in 'prose'! The striking difference being the real life situation expressed with the kind of detachment one needs to communicate with the reader. Such articles will definitely inspire more people to look at age with more empathy, concern and an attitude that will reduce the suffering of elders which we witness everyday and may experience one day. Thanks for this article. I quote the concluding sentence: "I can’t imagine what you are going through in this helpless state of yours today. I only hope that all our love and healing thoughts somehow bring some peace and tranquillity to you at this time." Do read the full article using the link. M G Warrier

Cooperative Bank Failures - Moneylife My VIEW: There are essentially two categories of cooperative banks. One, which caters to the credit needs of farm and rural sector with a two-tier (State Cooperative Bank and primary cooperative societies)or Three-tier(State and District Cooperative Banks and primary societies) and two, primary (urban) cooperative banks which are for all practical purposes, miniature commercial banks in the cooperative sector. The dual control (cooperation being a concurrent subject) and politicisation (because of the democratic cooperative structure) have been affecting their functioning all along. While primary (urban) cooperative banks-to which the 165 failed banks(in Maharashtra alone) referred to in this article belong- are under regulatory control of RBI, supervision of the other category of cooperatives has shifted to NABARD since early 1980’s. The cooperative institutions including banks deserve more attention from government/s and regulatory/supervisory

Letters: More autonomy needed : The government needs to infuse professionalism in bookkeeping and funds management by organisations such as the Employees' Provident Fund Organisation MORE AUTONOMY NEEDED* This  refers to the report “EPFO to give interest on inoperative accounts” (Business Standard, March 30).  While this is a welcome move, the report gives an impression that initially the  decision is to pay interest on balances in inoperative EPF accounts from  2016-17, while payment of interest was discontinued from 2011. First, GOI need to infuse professionalism in book-keeping and funds management by organisations like EPFO to ensure that basic tenets of best practices are followed by fund managers handling the money entrusted to them by small savers. In this regard organisations like EPFO, LIC and banks have a trusteeship responsibility. The funds collected by these organisations are not ‘black money’ kept in secret accounts by rich businessmen. The accruals are f

Union Budget 2016-17 - Moneylife COURAGE TO ANSWER SOME QUESTIONS This is with regard to “Wilful Defaulters Are a Result of Wilful Blindness” by Sucheta Dalal. Thank you for this article. When many are asking questions, Moneylife has shown the courage to answer some of the questions, including those raised by Mr Mallya. On 13 March 2016, I was reading an article by TV Mohandas Pai and wondering why authorities are after Mr Mallya whose Kingfisher Airlines’ default is a small amount compared to the Rs30,000-crore loss suffered by Air India.    I suggest that Mr Pai, too, can take the initiative in exposing the squandering of public funds which include bank deposits, money raised by corporates and so on.    Of late, every allegation is countered by another bigger allegation against someone else. The interests of the taxpayer, depositor and every citizen, who adds value to India’s GDP, need to be protected. Now is the time when authorities have woken up and the government is in no posit

Inoperative EPF accounts to earn interest : The government has scrapped a decision taken by the previous United Progressive Alliance government to suspend interest credits on inoperative Employees’ Provident Fund (EPF) accounts, in the absence My VIEW: March 30, 2016 Interest on inoperative EPF accounts This refers to the report “Inoperative EPF accounts to earn interest” (The Hindu, March 30, 2016). While this is a welcome move, the report gives an impression that initially the decision is to pay interest on balances in inoperative EPF accounts from 2016-17, while payment of interest was discontinued from 2011. First, GOI need to infuse professionalism in book-keeping and funds management by organisations like EPFO to ensure that basic tenets of best practices are followed by fund managers handling the money entrusted to them by small savers. In this regard organisations like EPFO, LIC and banks have a trusteeship responsibility. The funds collected by these organisat

Private Bankers Are Public Servants, decrees the SC - Moneylife My VIEW: This is yet another occasion when one feels proud of being part of the efforts moneylife make to spread awareness about implications of legal decisions affecting financial sector. The judicial process and the law books passed on to us by the British have not, even after several decades of legislative action, undergone the kind of Indianisation needed to serve a growing economy like ours. If common man has to benefit from the several provisions of law intended to protect his interests, there has to be more transparency and speed in judicial procedures.  In most of the court cases affecting financial interests of citizens, the legal battle is between the citizen on the one side and government or corporate body on the other side. Governments and corporates can fight endlessly using public funds(yes, for me the funds with corporates also come under the broad classification ‘public funds’). This results in pro

Copied below is a letter published in April 2010. Stumbled on it while doing a random search @google;  Sunday Magazine Mail Bag ( April 3, 2010) http://www.thehindu.com/arts/magazine/article1594107.ece?mstac=0 Lessons from Japan “Dignity in the face of tragedy” by Brinda Suri (March 27) conveyed well the intensity of the disaster and the capacity of human race and the Japanese in particular to leave behind tragedies and move ahead. The Japanese people have in the last 70 years accepted more than their share of natural calamities and man-made devastations and proved that they have an in-built ability to survive crises and move forward and they will come out of the present crisis also. But the world conscience which has been showing only pedestrian apathy to man-made tragedies should at this point of time introspect as to how much of the devastation and future risks arising out of nuclear radiation are avoidable. Such an introspection can be made meaningful by a World Conferen

Process of spiritual sadana : Sometimes, even a seemingly simple situation becomes impossible to tackle as in the case of the elephant king Gajendra. Being endowed with invincible strength and power to rule over his retinue, he is The story of "Gajendra Moksha"...Kumbheendran poy thrikootachalasarasi Mudaa Pantagasthyasya Saapaal..." Sometimes, even a seemingly simple situation becomes impossible to tackle as in the case of the elephant king Gajendra. Being endowed with invincible strength and power to rule over his retinue, he is confident that he can easily shake off the crocodile that has gripped his foot when he enters the water to pluck a flower to offer to the Lord. But the elephant’s effort to free himself goes on, says the Bhagavata Purana for a thousand years. The struggle and the sincere cry for help symbolise the essence of the spiritual sadana and realisation constantly at work in every jivatma, pointed out Sri M. A. Venkatakrishnan in a discourse.

Letters to the Editor Frontline, November 28, 2014 Letters Frontline THE recent innovation introduced by Frontline in its focus and content 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 discuss serious issues such as institutions like the Planning Commission being euthanised, the conscious destruction of India’s public sector by an elite private sector by dubious means, and the irreparable damage being done to the social sector in the name of labour reforms. When mainstream magazines do not devote more than two or three pages to developments such as these, the articles in Frontline can easily be presented as background papers in groups discussing current policy issues. Extensive book reviews and features such as the two-part series on the “Drawn from light” exhibition of photograph

Fear of death driving people away from savings - Moneylife Posted here just for information. The content has no relevance to Indian context... M G Warrier Excerpts: " The result of the study showed that only a few people choose to invest in annuities -- a guaranteed steady stream of income during retirement.    The lack of interest shown towards annuities was because it coerced people to think about how long they expect to live in order to calculate the potential payout for an annuity.    Thus, the findings, published online in the Journal of Consumer Psychology, proved that the fear of death tempts people to avoid making decisions about how to manage their savings during retirement."

Sunil Khilnani: We exaggerate the lives of our historical subjects : , director of the India Institute at King’s College London and author of , you have written that one of the reasons you decided to write about 50 Indian historical figures was to address the “inev Excerpts: " Yes, it does seem like the idea of a pluralist and Hindu nation is under challenge now. But it is also important to understand that it is during these moments of crisis in Indian history that people have shown amazing originality and innovation in how they respond to it. The nation often comes out stronger during difficult circumstances. Think of our freedom fighters like Gandhi, Tagore, etc., who showed the ability to retain their freedom of thought in the most difficult times of colonial suppression. It was that constrained pressure that provoked them to be strong, critical and brave and that should be the positive, inspirational aspect of what is happening in India right now. Indira Gandhi was blamed f

The trio that is changing India for the better during the current decade comprise of Kejriwal, Dr Raghuram Rajan and Narendra Modi. Sushil Pandit has captured the 'PILGRIM'S PROGRESS' of Kejriwal from technocrat to a national level leader.  M G Warrier Excerpts from “Kejriwal, The Captain Courageous” by Sushil Pandit (The New Indian Express, March 28, 2016) “He does not suit the Congress because he has usurped their base among the suburban, poor and illiterate. The Muslims and other minorities too—Congress’ traditional bastion—have swung his way because he is the only credible challenge left against the BJP in Delhi. He does not suit the BJP because the white-collar middle class too has plumped for this qualified technocrat and his un-politician-like approach to issues. His probity-card is still unimpeachable and a big unifier of both these universes. But what stands out in sterling contrast is his courage. He does not look for safe constituencies. He is not overa

Govt floats idea of setting up gold board : Decision may be announced in upcoming Budget; in discussions with stakeholders

Understanding the economy of ageing : Half of India’s over 1.2 billion population is 25 years or younger, with only about nine per cent over 60 years. Over the next three decades this is expected to balloon to 20 per cent or 340 million Excerpts: " With increased life expectancy and the breakdown of the joint family system, those involved with the project say that ageing will pose unique challenges. “We need to be able to design policies to mainstream the elderly, to reduce their vulnerabilities and enhance access to various services,” says Anita Agnihotri, Secretary, Social Justice and Empowerment Ministry, which is among the key government agencies involved." My VIEW: There is a related ‘financial’ issue. Though the survey may not cover it, as those who read this article may be ‘opinion makers’ on the subject, just flagging it here. In India, some of the government retirement plans including defined benefit pension scheme and GPF are not funded. This 'Pay as You

SBI seeks merger of 5 rural banks in N-E : Proposed entity to have deposit base of Rs 3,578 crore My VIEW: March 27, 2016 Merge to grow This refers to the report “SBI seeks merger of 5 rural banks in N-E” (Business Standard, March 26). In India, institution-building in the financial sector has been an ongoing process since 1950’s. GOI and RBI have taken care to see that the institutional infrastructure for providing banking services changed with times and remained, by and large, healthy and sound. Setting up of State Bank of India, merger, amalgamation and closure of several units in the private sector to reduce them to a manageable number during 1950’s, nationalisation of banks, setting up Regional Rural Banks, issue of licences for new private sector banks and the present initiatives to set up payment banks and small banks are all part of a conscious design to bring about need-based changes in the banking system. In the above context, continuation of the efforts to

Letters: Temple gold deposits : With reference to the report, 'Tirupati to deposit 2.3 tonnes of gold' (March 23), Tirupati, one of the richest temples which is known for its transparency of operations Business Standard, March 25, 2016 Letters Temple gold deposits With reference to the report, " Tirupati to deposit 2.3 tonnes of gold " (March 23), Tirupati, one of the richest temples which is known for its transparency of operations, had deposited a part of its gold stock with the State Bank of India a long time back. Other organisations, including temples and trusts, with considerable gold or jewellery in their vaults should also transfer a part of their stock to schemes such as the Gold Monetisation Scheme of the government of India. There are three advantages to this: (i) less cost on arranging security for the stock of valuables; (ii) opportunity to earn recurring income (80 kg of gold earned as interest by the Tirupati temple on a deposit of 4.5 tonnes of gold

WEEKEND LIGHTER: IMPERISHABLE WEALTH (March 26/27, 2016, No. 13/2016) Weekend Lighter is posted every Saturday @mgwarrier.blogspot.in Feel free to mail your views on this edition of WL to mgwarrier@gmail.com I Opening remarks Snakes and ladders This refers to Ajay shah’s piece “In need of action” (Business Standard, Snakes & Ladders, March 21, 2016). The writer has cogently argued the case for reforms in the banking sector and a change in approach on the part of RBI to the current agonies of banks arising from ‘stressed assets’. It is tough for anyone to rescue public sector banks (PSBs) from the shameful situation they have been dragged into by government policies or to defend the high level of bad loans they have accumulated. Since nationalisation, political leadership has been meddling with the working of PSBs, using the ‘assumed’ ownership rights, with immunity. The miraculous survival of PSBs including SBI (State Bank of India) can be attributed to the net inte

Faith: Rich insights : Valmiki lived contemporaneously during the period of Rama Avatar and was ordained to faithfully record the events in Rama’s lifetime. Valmiki is revered as the Adi Kavi and the Ramayana as the Adi Kav Excerpts: " For instance, the well-known ‘Dyana Sloka, Vaidehi Sahitam’* recited before a study or reading of the Ramayana describes a word picture of Rama and Sita seated together in the golden throne in Ayodhya perhaps after Rama Pattabhishekam. Rama is in the Virasana posture with Bharata and others, and in the august presence of rishis and sages. Hanuman is in front reading the story of Rama. It is shown that Rama listens to the reading and expounds the truths. Interpreters point out that Hanuman’s rendering of Rama’s story in this sloka is not Valmiki’s version." Read this short insight using the link above. M G Warrier *Copied below: Vaidehi sahitam suradrumatale haime mahaamandape Madhye pushpaka maasane manimaye veeraasane susth

Tirupati to deposit 2.3 tonnes of gold : The Punjab National Bank(PNB) has offered a highest quotation of rate of interest with 1.75 per cent per annum to Tirumala Tirupathi Devasthanam (TTD), which manages Tirumala - one of the richest temples in the World, under the short term deposit GOLDEN OPPORTUNITY This refers to the report “Tirupati to deposit 2.3 tonnes of gold” (Business Standard, March 23, 2016). One of the richest temples which is known for transparency in its operations Tirupati had deposited part of its gold stock with SBI long back. It is in national interest and in their own commercial interest for other organisations including temples and ‘Trusts’ which hold considerable idle stock of gold and jewellery in their vaults to transfer part of the stock to schemes like Gold Deposits/Gold Monetisation Schemes of GOI. This will have three-way advantage, namely (a) less cost on arranging security for the stock of valuables (b) opportunity to earn recurring income- 80 k

Will GPF rate track PPF cut? : While the government has defended its move to cut rates on small savings schemes from April 1, 2016, its own employees are anxious about the prospect of a similar lowering of interest on their retire March 22, 2016 GPF: Pay As You Go? Apropos Vikas Dhoot’s piece “Will GPF rate track PPF cut?” (March 21). Kindly refer to the following excerpts from the article: “ The official argued that the GPF is distinct in nature from the PPF which is a savings scheme competing with bank deposits that anyone can tap, while GPF is a genuine retirement benefit for government employees. “This may not be easy to explain for the government…a GPF account is purely notional…There is no GPF corpus per se. A part of our salary is deducted (not paid) and the government makes a notional credit to our PF account, where interest is credited annually, and the final amount due to you is paid at retirement on a Pay As You Go basis.” This is stretching the ‘Pay As

The looming, inevitable endgame : ne of my young friends gave me this book, , by Atul Gawande, a surgeon in Boston and author of three award-winning works. Though it is set in the United States, issues of ageing and management of the Excerpts: " Intellectuals often overestimate their own relative importance, which, in reality, is of no consequence to society or even to colleagues. What will I do when I have to shut shop? I have not been to a shop or bank or movie-house for ages. I cannot imagine how I will get along without my wife, but she can do very well without me, despite the personal loss. We are trying to make all transactions online. Old people are difficult to handle and scientists can be worse even for the best of children. I have not been admitted to hospital as far as I can remember... ... Anaayasena maranam. " My online comments: "Anaayaasena maranam...vinaa dainyene jeevitham" is what most of us pray for. As rightly brought out in the arti

Ajay Shah: In need of action : Although a banking crisis raises the need for major reform, the RBI has not yet woken up to this My VIEW: March 21, 2016 Snakes and ladders This refers to Ajay shah’s piece “In need of action” (Business Standard, Snakes & Ladders, March 21). The writer has cogently argued the case for reforms in the banking sector and a change in approach on the part of RBI to the current agonies of banks arising from ‘stressed assets’. It is tough for anyone to rescue public sector banks (PSBs) from the shameful situation they have been dragged into by government policies or to defend the high level of bad loans they have accumulated. Since nationalisation, political leadership has been meddling with the working of PSBs, using the ‘assumed’ ownership rights, with immunity. The miraculous survival of PSBs including SBI (State Bank of India) can be attributed to the net interest margins (NIMs) banks in India were privileged to enjoy continuously. Duri

Political, public outcry as PPF, NSS and saving scheme rates cut - Moneylife My VIEW: There is an urgent need  to have a re-look at the approach of GOI to retirement savings. It is  unfortunate that different pressure groups argue for reducing rate of return on  savings from different angles and GOI succumb to such pressures without  weighing the impact on social security cover for which savers invest in most of  the long term savings instruments like PPF and various savings options offered  under National Savings Schemes. The combined corpus under such schemes  constitute less than 10 per cent of the deposits with banks. Beyond tax savings, investors under these schemes look at their stable nature in regard to security of investments and regular assured returns. Considering their role in providing financial security for elders and acting as a source of liquidity when earnings fluctuate in the present uncertain employment market, there is a strong case for ensuring a rate of

Unkind cut : The Centre should adopt a transparent formula on small savings that isn’t subject to ad-hoc tinkering

People over 45 should get a higher PPF interest rate, says SBI report : Suggests linking interest to long-term bank deposit rates for those under 45 My VIEW: March 20, 2016 Differential rates for social security savings This refers to the report “People over 45 should get a higher PPF interest rate, says SBI report” and your editorial “Unkind cut”* (The Hindu Business Line, March 20, 2016). Together, these two articles highlight the need to have a re-look at the approach of GOI to retirement savings. It is unfortunate that different pressure groups argue for reducing rate of return on savings from different angles and GOI succumb to such pressures without weighing the impact on social security cover for which savers invest in most of the long term savings instruments. PPF and various savings options offered under National Savings Schemes together constitute less than 10 per cent of the deposits with banks. Beyond tax savings, investors under these schemes look at their

Faith: Imperishable wealth Excerpts: "The wealth of a man who does not share it with others is like a tree that grows in the heart of the village but bears poisonous fruits. If a man spends his life accumulating wealth, with disregard to the more important aspects of life like love for fellow human beings, it is certain that his wealth is going to be enjoyed by others, says the Thirukkural." Read this short article in The Hindu using the above link... One is reminded of Sant Rahim, who said: SAAI ITNAA DEEJIYE JAA  ME KUTUMB SAMAAY RAHIMAN BHOOKHAA NAA RAHOOM SAADHU NA BHOOKHAA  JAY (Give me this much, Sufficient for my family, Rahim too should not remain hungry, The SADHOOS who come should also not go hungry!) M G Warrier

Why microfinance is fading out : MFIs are unable to address the needs of self-help groups. They have been hit by the falling growth of SHGs March 20, 2016 Revamp cooperatives This refers to the article “Why microfinance is fading out?” (The Hindu Business Line, March 19, 2016). Between village money lenders and the mainstream institutional system represented by commercial banks and cooperative banks(which were brought under the purview of the Banking Regulation Act in 1966), we had small village cooperatives (primary agricultural credit societies and multi-purpose cooperatives) which catered to a variety of needs of the rural and farm sectors. Since early 1980’s, perhaps from the time when National Bank for Agriculture and Rural Development (NABARD) was established, the primary cooperatives became a neglected lot. Non-Governmental Organisations which could get funding from various sources started organising Self-Help-Groups (SHGs) which were financed by commercial banks.