Warrier's blog

FinMin asks RBI to ease infra funding norms | Business Standard News Online comments posted on November , 2014: In the present communication, finance ministry seems to have clearly advised RBI to make changes in its policy stance on a specific issue. Under RBI Act, GOI has powers to give directions to RBI and therefore, when a communication goes from finance ministry to RBI, the later will make efforts to comply   with the requirements . This read with the report “Finance Minister Arun Jaitley favours interest rate cut”(October 26) makes disturbing reading. In an interview given to Times of India Finance Minister said that “…but other expansion in real estate will take place significantly only if the interest rates come down a little. Currently interest rates are a disincentive. Now that inflation seems to be stabilising somewhat, the time seems to have come to moderate the interest rates.” Such views, if followed up   with letters from finance ministry to RBI...

Modi’s Man ki Baat: recovering black money is an article of faith | Business Line The PM’s efforts to reach out to people and make ‘WE THE PEOPLE’(Refer preamble of the Indian Constitution) think about their rights and responsibilities deserve more encouragement from media. A section of the media may be feeling shy in the context of allegations from non-BJP political parties about ‘more than life-size image’ of Modi and BJP being painted in the recent past. This should not stand in the way of printing/telecasting PM’s thoughts on his vision on the possibilities about the trajectory of India’s Growth Story to improve the living conditions of 1.25 billion people through policy initiatives and getting people’s participation. This observation is in the context of near black-out of several development initiatives covered in the last two episodes of ‘Mann Ki Baat’ by a section of print and electronic media. There is no denying that his reference to ‘bringing back black mone...

Predicament of bank bosses - The Hindu Allow me to recall my own response of June 21, 2014 to a related report in the Business Standard Succession plans This refers to the report “FinMin mulls fixed 5-year term for PSB chiefs” (June 21). It is comforting to find that long last there is some move to ensure continuity of incumbents in top positions for a reasonably long period(now proposed as 5 years). Government should aim at a long term policy for succession plans at higher levels in government and pubic sector and guide private sector which are dependent on public funds and government support to adopt transparent norms for top level appointments. The policy should, besides factoring in eligibility criteria and skill requirements take into account: (i)                   The need to allow extended periods beyond the present retirement age so that any appointee is able to continue at the post ...

Modernising the monetary policy - The Hindu

Jaitley tells auditors to question all questionable decisions… | Business Line

An edited version of the letter copied below has been published in today's (October 30, 2014)ET: October 29, 2014 The Editor Economic Times   Chat Room Right diagnosis This refers to ET editorial “Fix Systemic Ills in State-Owned Banks” (October 29). In the business of banking, success almost entirely depends on the men who man the key positions in banks and the functional autonomy the banks enjoy within the contours of the law of the land. In this context, the issues relating to structural changes and market-related remuneration to staff including top executives with appropriate safeguards for ensuring performance and responsibility for decisions are much more relevant in public sector banks than when banks were nationalised and enjoyed a monopoly of sorts in their area of business. Still, one is not able to agree with the view that privatisation is a panacea for all ills or to go by the idea that Axis Bank is a model to be followed. On the limited issue ...

A constitutional impropriety - The Hindu