RBI's Accounts II

Re: Letters to BS: Govt must reciprocate by helping RBI to augment its reserves

I gave this explanation to a response I received* this morning:

"I have learnt to "negotiate" from the trade union leaders of 1960's. Ask for the imposible. Management will come back with possible options other than what is demanded. Then, go for the best.
Here, I have been pestering Jalan and Rakesh Mohan to recommend enhancement of share capital to $200 to 400 billion. As BRICS bank's capital was $200 billion, they couldn't ask for rationale. They have protected reserves at present levels. I congratulated them.
Warrier"
*Response from CV Subbaraman, Mysuru:
The need for augmenting the Capital of RBI which stands at a mere Rs.5 crore since inception, despite the stupendously rising balance sheet total, is understandable. But if the capital has to be raised in real terms, and not by "capitalising the reserves" - reserves of whatever nature - it has to come from the Treasury and where is the money with the Treasury which has been demanding higher and higher dividends from RBI?! Capitalising any portion of any reserves does not improve the net worth of the Bank.

Subbaraman
Subject: Letters to BS: Govt must reciprocate by helping RBI to augment its reserves
 
https://www.business-standard.com/article/opinion/letters-to-bs-govt-must-reciprocate-by-helping-rbi-to-augment-its-reserves-119082801551_1.html
In response to Shri Venugopal's mail:

I read your response on the subject in group mail.
Jalan Panel has done whatever was possible in the given circumstances to protect national interest which includes having a central bank with a strong balance sheet. I pity the responses from certain quarters without even going through the ECF Panel report which has been accepted by RBI.

M G Warrier


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 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

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