Monumental failures of RBI

Monumental failures of RBI: India's central bank has failed in regulating the banking system...



RBI, a peg to hang?

This refers to the interesting indictment “Monumental failures of RBI” (Business Standard, August 23) by Gajendra Haldea who says, ‘India’s central bank has failed in regulating the banking system’. Having spent 10 years in the Finance Ministry and almost equal period with the Planning Commission (which had to be dismantled recently at Modi’s hands!), Haldea must have done his homework well before making this sweeping statement. I trust him, because Kanika Datta had found out long back that
Gajendra Haldea is an ‘Inconvenient truth-teller’.
The author has got his statement that ‘RBI has done a commendable job in managing the monetary policy, but as a regulator of the banking system, it has failed the Indian economy.’ acknowledged by the then RBI governor Raghuram Rajan in May 2016. This introductory assertion is not substantiated much in the article, as perhaps, because the divisions in finance ministry with which the author was associated didn’t expose him much to the role of RBI in Banking Regulation and Supervision or the relationship issues between GOI and RBI. The concluding observation that RBI is trying to catch fish without wetting its hands is a merciless one attributable to ignorance of RBI’s history.
Having said that, the issues raised by the ‘Inconvenient truth-teller’ need to be addressed. There is always ‘scope for improvement’. RBI’s institutional structure need to be strengthened, expertise and professionalism have to be infused, legal constraints, if any, in performing the central bank’s mandated
role need to be removed fast and last but not the least, the pre FSLRC(Financial Sector Legislative Reforms Commission) prestige of Reserve Bank of India need to be restored. FSLRC which was to work on ‘financial sector legislative reforms’, wasted all its energy on weakening RBI with a vengeance and is responsible for the present chaotic situation of Indian Financial System.

M G Warrier, Mumbai

Comments

Post a Comment

Popular posts from this blog

NAVAGRAHA STOTRAM

NAVAGRAHA STOTRAM* According to astrology, the positions of the nine planets in the twelve constellations of the zodiac and their movements are considered to be quite significant. The nine planets ‘Navagraha’ affect every aspect of human life. They play an important role in the activities, physical and mental health and life of any individual. The unfavorable positioning of any of these planets can be the cause of problems, bad health, and stagnation for many people. However, there is a solution to avoid the ill effects of the position and movement of the ‘Navagraha’ in our lives. Navagraha mantras (or stotram) are simple mantras which work as powerful healing tools to reduce the negative effects of any of the nine planets. These mantras are Hindu holy hymn addressing the nine planets. Benefits Of Navagraha Stotram And The Way to Practice The Navagraha Stotram is written b y Rishi Vyasa and is considered to be the peace mantra for the nine planets. They are powerful m
Read more

THE SUNSET OF THE CENTURY

*SUNSET OF THE CENTURY: Rabindranath Tagore THE LAST SUN OF THE CENTURY SETS AMIDST THE BLOOD-RED COLOURS OF THE WEST AND THE WHIRLWIND OF HATRED. THE NAKED PASSION OF SELF-LOVE OF NATIONS IN ITS DRUNKEN DELIRIUM OF GREED IS DANCING TO THE CLASH OF STEEL AND THE HOWLING VERSES OF VENGEANCE. THE HUNGRY SELF OF THE NATION SHALL BURST IN A VIOLENCE OF FURY FROM ITS OWNSHAMELESS FEEDING FOR IT HAS MADE THE WORLDITS FOOD, AND LICKING IT, CRUNCHING IT AND SWALLOWING IT IN BIG MORSELS, IT SWELLS AND SWELLS TILL IN THE MIDST OF ITS UNHOLY FEAST DESCENDS THE SUDDEN HEAVEN PIERCING ITS HEART OF GROSSNESS…   *Note: “The Sunset of the Century”, translated by the poet, from Naivedya; The English Writings of   Rabindranathtagore, Volume II,Delhi 1996, page 466. Quoted in his article ‘Critiquing nationalism’ by K Satchidanandan (Frontline, November 14, 2014). The article takes you to a much broader spectrum. HAPPY READING(READ MORE STAN
Read more

The King of Ragas: Sankarabharanam

                       The King of Ragas                      --------------------------     Long ago  serpents were put to lot of hardships.They  were afraid of other animals. They had to seek refuge in the hermitage of sage Saraba.The sage was a true devotee of Lord Shiva.He used to pray Shiva with melodious songs. As he sang a particular raga the snakes were much inspired and they began to dance,. Slowly the serpents became friendly with the sage. They brought water in their mouths for the pooja.They secreted  a special fluid in which the flowers got stuck to their bodies.The sage was much astonished by the service of the snakes.As the sarpas became very close to the sage ,they requested him to help having Darsan of Lord Siva. As requested by the sage Shiva appeared in the form of  a  Kapalika and stayed in the ashram.The music and dance of the snakes continued. The snakes rendered service to the kapalika as they considered him  a Shiva bhakta.Shiva was much pleased with t
Read more