WEEKEND LIGHTER: Ignorant critics of RBI
WEEKEND LIGHTER: Ignorant critics of RBI
(January 21/22, 2017, No.3/2017)
Weekend Lighter is posted every Saturday
@mgwarrier.blogspot.in
Section III: Intellectual conviction
I
Opening remarks
Ignorant
critics of RBI*
Media reports about the proceedings
of the Parliamentary Standing Committee on Finance yesterday (BS, January 18),
exposed the ignorance of the purpose and content of the proceedings among
analysts, more than the lapses in the planning and implementation of the
withdrawal of Rs1000 and Rs500 currency notes from circulation.
Even before the meeting of the
Standing Committee, an impression was created as if RBI Governor was appearing
for a ‘qualifying’ or ‘selection’ examination and several outlets ‘leaked’
different versions of the question
paper. 10 to 18 questions were circulated in the media. Some of the leaked
questions were really asked. From cost of printing new notes to ‘when you
expect normalcy in currency circulation?’, it is reported, Urjit Patel was
grilled and occasionally a loving Manmohan Singh helped him with answers or
asked him to skip tough questions.
Perhaps, just as, now in hindsight,
we feel that the so called ‘demonetization’ could have been managed better by
planning the linkages, analysts will now pick up holes in the conduct of the proceedings
of the Standing Committee! If these wise men had allowed to function the
Parliament in November 2016 and asked some of these questions and suggested
some midway corrections it would have immensely benefited the nation. Even now
they have not done their homework. Otherwise, they would not be talking about
‘replacement’ of withdrawn currency notes. If 60 per cent of the value of
SBNs(Specified Bank Notes) have been ploughed back to the system, that will
definitely take care of the cash needs of India. May be, some realignment of
denominations and reaching out to geographical areas not adequately served by
bank branches will be necessary.
M G Warrier,
Mumbai
*A slightly edited version was published in Business Standard
on January 20, 2017
II
Recent responses
Trade unions reform
This refers to Jaimini Bhagwati’s
article “Reform Indian trade unions” (Business Standard, January 19). This well
researched piece gives a broad view of the present status of trade union
penetration among the Indian workforce. Time is opportune for India to think in
terms of a much higher level of trade union membership among workers in both
organized and unorganized sectors.
At present we have, irrespective of
political affiliations, only two categories of trade unions. One, in the
organized sector, taking up wage and welfare issues concerning members. Two, large,
loose groupings of workers and the unemployed in the unorganized sector
dependent on political parties for leadership and used by them as part of
election machinery by the political parties concerned. Leaderships of both the
categories have interests beyond those of the members.
Just as professionalization of
leadership and cadres have not happened to desirable levels in the political
leaderships and their hierarchies, Indian fa unions too are lacking professionalism and are dependent on
external support in managing their affairs. Such support come at a price,
whether it is from politicians or social workers or lawyers. It is in the
national interest to have independent and self-supporting trade unions based on
industry/profession with focus on the welfare of workers. If multiple trade
unions are unavoidable due to political realities, identification and recognition of majority organisations by
employers/government/s should happen in the normal course.
Worker education and taking care of
the welfare of members should be the responsibility of trade unions.
M G Warrier,
Mumbai
Unfair to the RBI*
This refers to the report “RBI has no
idea how much it cost to print the new notes” (BL Exclusive, January 18). It is
unfortunate that a newspaper known for its adherence to prudent and ethical
behavior in journalism is trying to sensationalize a common sense response from
RBI, in a routine manner. By such tactics, Business Line joins the category of
‘RTI activists’ who survive by giving the common man the impression that RTI
Act is an instrument for law enforcement or collecting any information from any
organization covered by that Act.
Compared to many other organisations
in the public sector and private sector, RBI has a fairly transparent
accounting practice as is evident from its Annual Report, which carries
information about the sources of income and details of expenditure the central
bank incurs to perform its various functions. The information sought, namely
‘the cost of printing new Rs500 and Rs2000 notes’ may not be available with
RBI, as it is still a work in progress. The question is like asking Hotel Taj
International the cost of making rotis during a particular period. The hotel
may still attempt to give some guestimate figures, which RBI may not be
comfortable doing.
My humble submission is, media has
worthier and more important things to do at this point of time and should avoid
diverting precious resources chasing shadows.
M G Warrier,
Mumbai
*Letters, Business Line, January 19,
2017
Demonizing RBI
This refers to “Simple. RBI Critics
Have an Axe to Grind” (ET, Straight Talk Express, January 17) by R Sriram. I
loved the caption. Amartya Sen to trade
unions in RBI, IMF to most of the financial sector retirees, TOI to Wire and
Sriram to me, all have expressed some view on demonetization. Many more are
waiting for a call to bounce upon RBI, as change (in lower denominations) was
not managed the way they expected by the central bank. All fine.
But, frankly, what is the autonomy of
RBI, many among these “RBI Critics” are talking about? Is it the carpet which
political leadership since 1990’s tried to pull away from underneath the feet
of the RBI Governor and the RBI Central Board
which climaxed manipulating a monologue report obtained from the
Financial Sector Legislative Reforms Commission? In that case let us remember
the role played by Dr Raghuram Rajan who was at Mint Road for a short period of
3 years, who, by perseverance, saw to it that RBI remained in one piece.
There is no RBI autonomy involved in
Prime Minister Modi’s November 8, 2016 announcement of withdrawal of legal
tender character of Rs1000 and Rs500 notes or post-November 8 currency
management by RBI. The need for alignment and harmony between fiscal and
monetary policy and for that matter GOI resisting the temptation to do
back-seat driving in statutory bodies including RBI being highlighted in recent
debates cannot be brushed aside. It is in GOI interest to have a central bank
with a strong balance sheet, professional expertise and international
reputation. But, the present grumblings in the media does not help in working
towards that end.
M G WARRIER,
Mumbai
III
Faith, leisure
Intellectual conviction*
Sastras
quote many rational examples drawn from nature and from individual experience
to explain subtle and esoteric truths. But they also proclaim that the
experience of the ultimate truth is caught and cannot be taught.
It
is a fine balance to be struck between rational thought and faith. Hence the
Upanishads stress the value of reflection and meditation and point out that
meditation in its highest form is concentration on the Ultimate Truth, pointed
out Sri R. Krishnamurthy Sastrigal in a discourse. Only repeated reflection and
meditation can bring about an inner awareness and intellectual conviction.
A
simple example from daily life illustrates the difficulty in the effort of
external forces to bring about this conviction. One cannot deny the fascination
of bursting crackers that one may have experienced as a child. But as one grows
old, the truth that there is no happiness in this act as in the case of the
many pet longings one might have cherished soon becomes evident. This is how
one develops viveka as a matter of
course. But this truth cannot be taught to one’s children or grandchildren who
are still to see the hollowness in this form of enjoyment.
This
is the state of mind of a jnani in
whose consciousness there is direct perception of truth and reality. He is
right in the world, but remains aloof. He observes, eats and sleeps as any
ordinary person. But in his mind he is able to dissociate himself from these
acts and hence their consequences. He maintains equanimity in all situations.
One involved in worldly affairs cannot easily understand the state of mind of a
jnani. The jnani for his part is also aware that there is no guarantee that
those spiritual aspirants around him can understand the truth as he sees it.
Source: FAITH, The Hindu,
January 14, 2017
LEISURE
Conquest of stress
This refers to the cover story on
pages 59 to 65 of January 2017 Reader’s Digest which need to be preserved by
all who would like to bring down their own stress levels or help out someone
near or dear from stress-related problems. The tips, which may look too simple
and ordinary, if followed can improve one’s leave record and medical bills
considerably on a recurring basis. Some of the 25 tips listed have been
capsuled from time-tested stress-relief techniques practiced world over.
Suggestions like those relating to
breathing deeply, reading, meditation, planning ahead, if you have to drive
will give excellent results, if practiced regularly. I loved to read the
narration under “Self-esteem is a natural stress buster”. At 72, I can endorse
it based on personal experience.
M G
WARRIER, Mumbai
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