WEEKEND LIGHTER: Gift a Book to GenNext
(January 28-February 3, 2018)

Life lesson: Article in The Hindu Open Page
By M G Warrier: See Section III for link

I-Cover Story


Reserve Bank of India at Central Stage’
By M G Warrier


Reserve Bank of India at Central Stage’ has been published by Notion Press, Chennai. Please access the following link for details:
Priced Rs 399 the book is available at Notion Press.
If you buy the book, after reading, please gift it to your neighborhood library or someone who will read it, but can’t  afford to buy books.

M G Warrier

This link will take you to an old article (October 2017). Articles like this @wire.in and many others in mainstream media written and published continuously during the last two years prompted me to publish my second book "India's Decade of Reforms Reserve Bank of India at Central Stage" to document the RBI/GOI initiatives to restore the health of Indian Economy.
As you will observe the distinguished senior journalist has used even "real interest rate" not in the real sense!
M G Warrier
Recent responses
Nation’s balance sheet

This refers to Shrimi Choudhary’s well-analyzed report “Sebi to transfer Rs17 bn surplus to Centre” (Business Standard, February 1). Prima facie Centre cannot be faulted for initiating measures to get back funds like ‘budget surpluses’, ‘unspent grants’ and accumulations from ‘fees charged’ where the expenses are met out of budgetary  provisions of government idling with statutory bodies like SEBI and IRDAI.
The observation that ‘Typically, these funds are used for capacity building, developing infrastructure, and expansion of the organization is a pointer to the non-existence or inadequacy of best accounting practices including creation and maintenance of reserves for various purposes in these organizations. The following comment attributed to finance ministry sources is amusing reading:
“Since the new Sebi chairman, Ajay Tyagi has been part of the finance ministry in his earlier assignment, he understands the government’s intention and challenges”
So open a statement that finance ministry would get things its way by posting amenable persons at the top.
Read this report with earlier media speculations about GOI expectations of some 13,000 crore from RBI by reopening 2016-17 Balance Sheet. Luckily, RBI did not succumb to pressures and stuck to professionalism in accounting practices the institution is known for.
GOI with professional guidance from institutions like CAG should empower these organizations through appropriate legislative support  to create and maintain reserves and provisions from current income or where necessary from budgetary support, towards anticipated future expenditure. Such measures will reduce sudden shocks to national balance sheet at a later stage.

M G Warrier, Mumbai


Changing profile of PSBs

This refers to Karthik Srinivasan’s insightful article “PSBs need to adapt to stay competitive” (Business Line, January 29). The 7 percent fall in business share during the last two years may not be a matter of grave concern for PSBs, as there were several developments including more emphasis on handling stressed assets, impact of demonetization and policy uncertainties which forced PSBs to go slow on business development.
The management issues raised in the article, like need for longer tenure and operational freedom for CEOs of PSBs deserve quick consideration and policy corrections by GOI. Among the challenges, the new avenues for savings/investments like mutual funds, insurance and NPS may not pause a major threat to banking system as banks will continue to remain conduits for fund flow. The overdependence of GOI and state governments on banks, insurance and pension/provident funds for their borrowings affect the banks’ ability to earn market-related returns on their statutory investments. Reversely put, until a retail market develops for government securities, banks and statutory  bodies will not get market-related returns on their investments in G-Secs.
Even if structural reforms like merger of PSBs may have to wait, there is urgency in rationalization of branches and other outlets like ATMs, especially in cities and urban areas. Perhaps pooling of ATMs and exchange of local business between banks paving the way to close loss-making branches could be considered on a priority basis. As redeployment of staff in new work areas and new branches would be possible, these reforms may not create any HR-related hurdles. GOI should consider even inter-mobility of manpower between PSBs following exchange/transfer of business for the purpose of consolidation.
M G Warrier, Mumbai

BLink: Happy meals

Life lesson(M G Warrier’s article)

Remembering Mahatma Gandhi

Invaluable assets: Faith Column, The Hindu

Economic Survey 2017-18: The Hindu


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