Blindly blaming RBI for all the ills in the economy only smacks of poor understanding of the political system of the country,its linkage with the financial system and partisan attitude of the writer. Liberalisation and banking reforms introduced in the economy have given freedom to close down branches in rural and other areas if they are found nonviable and banks which came up under new Licensing scheme brought in uncalled for and unhealthy competition in the business aiming only profit at any cost. The gaps thus created by banks in banking which ignored the needs of the masses have been filled by unscrupulous entrepreneurs with the active and committed support of politicians . They exploited the ignorance of the masses and started looting in the name of offering higher rate of return. The Concepts Financial Inclusion and Financial literacy came up perhaps to cover up these dirty gimmicks and unfortunately both these remained only in paper and did not take off in the desired manner. Blaming RBI is only an escape route and divert the attention of public turning against the Govt for its lapses on effective Governance and greed for amassing wealth by individual politicians. Enlightened authors should be able to view things in its correct perspective and bias needs to be avoided on such important and very serious issues. It is not an exaggeration to add here that RBI is perhaps the only Institution which has emerged as the most successful Central Bank in the last decade when the whole world was facing turmoil in general and India has been having its own political and financial instability.
Dr.T.V.Gopalakrishnan
(This comment appeared in modified form in Times of India dated 25/4/13 in response to an article Saradha fraud: blame the RBI for a stunted formal financial sector)
No comments:
Post a Comment