WEEKEND LIGHTER: Banking Sector Reforms
WEEKEND LIGHTER: Banking Sector Reforms
(February 18/19, 2017, No.7/2017)
Weekend Lighter is posted every Saturday
@mgwarrier.blogspot.in
Section III:RBI Calendar 2017
I
Opening remarks
Banking Sector Reforms*
This refers to the report “Big Bank
Theory: Merger of SBI, associates cleared” (Business Line, February 16). While
the move is most welcome, the sporadic approach to financial sector reforms
resurfaces, as GOI and RBI once again refused to even initiate the long overdue
measures to consolidate and revamp the banking infrastructure in India.
Inefficiency is built-in in the Indian Banking System, mainly because of
structural and HRMD reasons.
The Financial Sector Reforms
Committee (Narasimham Committee I, 1991) had visualized a structure for Indian
banking System with “three or four large banks that could become international
in character; eight to ten banks with a network of branches throughout the
country engaged in ‘universal banking’; local banks whose operation would be
generally confined to a specific region and rural banks (including RRBs) whose
operations would be confined to the rural areas and whose business would be
predominantly engaged in financing of agriculture and allied activities’. This
is an idea whose time has come.
Perhaps, merger of associate banks
with SBI could be followed by appropriate mergers at various levels of banks or
branches of public sector and private sector banks, keeping in view also the
prspective role of new players like small banks, payment banks and Postal Bank
now going to position within the system. Once again, we remember with regret
the opportunity the Financial Sector Legislative Reforms Commission missed, to
go into these aspects, in its anxiety to discipline the regulators and
supervisors including RBI which were doing their job fairly well.
M G Warrier,
Mumbai
*Edited version
published in the Business Line on February 17, 2017
II
Recent responses
It makes sense listening to PC*
This refers to P Chidambaram’s BS
interview captioned “After UP polls, I don’t know what the BJP will do”
(Business Standard, Q&A, February 16). Advocates are trained to focus on
specifics of the ‘case on hand’ and Chidambaram is an eminent advocate.
Therefore, every word he spoke on various issues here makes immense sense and
BJP and its national leaders would do well to take cognizance and start
contemplating on the corrective measures which will make that a national
movement reminiscent of Indian National Congress of last century. To recap:
(a) Initiate steps to improve financial
and monetary stability. This may need more incentives to increase private
investment and exports. (Congress may come out with more constructive
suggestions on this as discussion on Budget 2017-18 progresses).
(b) There is immediate need to encourage
private consumption, which has s hown negative growth
post-demonetization.(Ideas like Universal Basic Minimum Income, increased
minimum wage and an across the board wage/pension increase may help).
(c) Corruption which has been woven into
the fabric of public life need to be factored in as a reality and provided for.
PC’s observations about capitation fee, bribes and disbelief in PM’s statement
of objectives while announcing ‘demonetization’ on November 8, 2016 can be
summed up like this.(This may not be acceptable to India as a long term
strategy).
(d) Really concerned about what the BJP
will do after UP polls.(Not only BJP, all major political parties fighting
elections now face uncertainties)
India is fast passing through a
transition. It is comforting to see that veteran politicians like PC and MMS
who suddenly found themselves displaced are relocating in an advisory role
which is most welcome. BJP should take advantage of their experience and
wisdom, as PM Modi has always expressed willingness to listen to elders.
M G Warrier,
Mumbai
*See the edited, published version below:
Business Standard, February 17, 2017
Letters
Sound
advice
Apropos Aditi Phadnis’
interview with P Chidambaram, “After UP polls, I don’t know what the BJP will
do” (Q&A, February 16), advocates are trained to focus on the specifics of
the case on hand and Chidambaram is
an eminent one.
Every word he spoke in
the interview makes sense. The Bharatiya Janata Party and its national leaders
would do well to take cognizance of his words and start thinking of corrective
measures.
In terms of initiating
steps to improve financial and monetary stability, more incentives are needed
to increase private investment and exports. The Congress may have constructive
suggestions on this subject as discussion on Budget 2017-18 progresses.
There is immediate need
to encourage private consumption, which has dropped post demonetisation. Ideas
like Universal Basic Minimum Income, increased minimum wage and an
across-the-board wage and pension rise may help.
Corruption, which has
seeped into public life, needs to be factored in as a reality and accounted
for. Chidam-baram’s observations about capitation fee, bribes and disbelief in
Prime Minister Narendra Modi’s statement of objectives while announcing
demonetisation are also notable. There is a question mark over what the BJP
would do after the Uttar Pradesh Assembly polls. This applies to other parties
as well.
With India
transitioning swiftly, it is comforting to see veteran politicians like
Chidambaram, who found themselves suddenly displaced, are now taking on an
advisory role. The BJP should take advantage of their experience and wisdom —
Modi has always expressed willingness to listen to elders.
M G Warrier, Mumbai
III
Spirituality, Leisure
1
Reserve Bank of
India Calendar 2017
In format and content, RBI calendar this year is
different. In the introductory, RBI observes:
"Matters related to money, being pivotal to
the conduct of social life, have been contemplated upon since time immemorial
and and all related aspects-earning, spending and saving- have received much
attention in this ancient land of ours. Through its pages, this Calendar seeks
to showcase a sample of that accumulated wisdom".
JANUARY 2017
Kshanasah Kanasaschaiva
Vidyaarambham Cha Saadhayet
Kshanatyaage Kuto Vidyaa
Kanatyaage Kuto Dhanam
Meaning:
Even a moment is valuable while acquiring
knowledge and even a penny is valuable while earning money.
2
SAHANAVAVATU (PEACE) MANTRA*
The "Sahanavavatu mantra" is one of the shaanti (peace) mantras which has its
origins in the Taittiriya Upanisad.
This mantra is often used as a "universal" prayer, to send the
message of peace and prosperity. The mantra may also be used to invoke God's
blessings for harmony amongst teacher(s) and student(s).
AUM
saha navavatu, saha nau bhunaktu
Saha veeryam karvaavahai
Tejasvi naa vadhita mastu
maa vid vishaa va hai
AUM shaantih, shaantih, shaantih.
Saha veeryam karvaavahai
Tejasvi naa vadhita mastu
maa vid vishaa va hai
AUM shaantih, shaantih, shaantih.
Meaning
of the Sahanavavatu Mantra
Let us together (-saha) be protected (-na
vavatu) and let us together be nourished (-bhunaktu) by God's blessings. Let us together join our mental
forces in strength (-veeryam) for the
benefit of humanity (-karvaa vahai).
Let our efforts at learning be luminous (-tejasvi)
and filled with joy, and endowed with the force of purpose (-vadhita mastu). Let us never (-maa) be poisoned (-vishaa) with the seeds of hatred for anyone. Let there be peace and
serenity (-shaantih) in all the three
universes.
This mantra highlights the nature of the
teacher-student relationship that produces ideal results for the student. The
transference of mental, spiritual and intellectual energies from the teacher to
the student can be achieved through a mutually nourishing relationship which is
based on (mutual) respect, joy (of giving and receiving), and absence of malice
or negative thoughts.
*Source: Various websites
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