Friday, January 18, 2013

Despite Progress India's Financial sector Vulnerable

The financial system if at all is found vulnerable, it is because of the interference of the Government in the functioning of various regulators. The setting up of Financial stability development council under the Chairmanship of the FM takes away the powers enjoyed by the RBI which has done a wonderful job in securing financial stability and soundness. The interference by the Govt in the regulatory functioning of RBI is uncalled for unless the Govt has its motives to have control over the system to its advantage. The caution by the IMF from that angle is most appropriate and it is for the govt to act to make the system sound and stable for the long term benefit of the economy and its people. ( This appeared in Times of India dated 16/01/13)

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