(May 20/21, 2017, No.21/2017)
Feel free to mail your views on this edition of WL to mgwarrier@gmail.com
Section III: Leisure:Aadityahrudayam

Cover Story
Clarity on RBI’s Role

This refers to the excerpts from BS interview with Deepak Parekh captioned ‘RBI has to ensure NPAs are not swept under the carpet’ (Business Standard, Q&A, May 16). The brief answers from the veteran banker, to the pertinent questions raised by Joydeep Ghosh should set at rest the apprehensions raised by economists and the analysts in the media about the purport of the latest Ordinance amending the B R Act and the role of RBI in the resolution of NPA crisis.
Post-Ordinance debates strayed away from the main issue of managing stressed assets of the banking system and were sometimes judgmental   about the modalities to be followed and the role of GOI and RBI in supporting the banks to get out of a crisis created by policies which compromised prudent principles for political and administrative expediency.
Deepak Pareekh has done a service to the future of the Indian Financial System by making the following observations:
a)     ‘It is a pointless debate over whether banks are giving up their autonomy or whether the RBI or the government will be micro-managing the situation….it is the job of the regulator to ensure stability in the system.’
b)    ‘With the benefit of hindsight, it (RBI being aggressive on the asset quality review) was the right decision as the AQR brought out the extent of toxic assets in the system. Where the central bank needs to firmly stand its ground is putting an end to the practice of sweeping NPAs under carpet. This, above all, is an issue of governance.’
These days, sane advice on policy, which are not guided by constituency interests, is a rarity.  This interview proves that there is still scope for hope and there will be appreciation from those who understand things, if policy makers and regulators move in the right direction.
M G Warrier, Thiruvananthapuram

Excerpts from an online comment:
Since independence, RBI has been performing several roles which are not assigned to Central Banks elsewhere in the world. The present Ordinance at best will serve to tell the stakeholders that GOI and RBI are on the same page. RBI Act together with the pre-ordinance B R Act confer enough powers on RBI to regulate and supervise Banking System. Problems, including the present one relating to stressed assets emanated from back-seat driving by Finance Ministry using "ownership rights" both that of RBI and PSBs. Trespass into internal functioning including credit decisions and HR issues by finance ministry during the 10 years ending FY 2014 has done irreparable damage to the functioning of RBI and PSBs. Unusual situations call for unusual policy decisions. Ordinance should be seen in this perspective.” 
M G Warrier
The Global ANALYST
The Global ANALYST published my article on Financial Inclusion, captioned “Surmounting the Insurmountable” in the Magazine’s second issue after launch (Volume 1/Number 2, December 2012). The article was written on invitation. Originally conceived and published from Hyderabad by a team of young media enthusiasts including D Nagavender Rao, N Janardhan Rao and Amit Singh Sisodia, The Global ANALYST is now published by IUP Publications A division of the ICFAI Society) with GRK Murty as Managing Editor.
So far, The Global ANALYST has published over 40 articles contributed by me.
M G Warrier
Rishi  Agasthya  gave this potent  Mantra(Aadityahrudayam) to Lord  Rama when he  was perplexed, while fighting with Ravana. Only after chanting this Hymn three times  Rama could  Ravana.
Adityahrudayam glorifies  Sun or Surya and is a  mystical hymn  directed to the Sun God, the illustrious lord of all victories.
 Aditytahrudayam Hymn is part of the Yuddha Kanda of Valmiki Ramayana ( Chapter on War) and contains 31 slokas.
*Source: A response from my friend Shri P P Ramachandran to a mail giving link to Sanskrit Text and English meaning of the hymn.


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