Hunt for Gold at the cost of tax payer's money-irrational

In India, some very strange events do take place and people's attention is easily diverted from all major and serious issues.The latest rush for gold based on a some self styled saint's dream has really caught the attention of all and the Government has been dragged to chase the mirage at the cost of tax payers' money. Media adds to the glamour and entertainment with their visuals and experts' comments and interviews. The wastage of time, money and energy is nobody's concern as the entertainment value is much more and it is not calculable.The present rush for gold is very timely and appealing as the Government and the economy need a saving grace from the financial crunch and economic crisis.In case the dream comes true by some miracle, the Government is greatly relieved of its past blunders on the management of the economy. People can forget about the suffering caused by the misdeeds and laxity of Governance. In case the hunt for gold succeeds the possibility of which is not ruled out as the hoarders of black money amassed in the form of gold may themselves would have given this idea of extracting and exposing the hold hiding in a convincing manner befitting the irrational and blind beliefs of this great nations gullible masses. These are all some attention diversion tactics well timed and well executed by those who matter and who are concerned.

Dr.T.V.Gopalakrishnan

(This is in response to the editorial Reason for no reason in Business Standard dated 19/10/13) 

Trust in Bank's advice

If one goes by banker's advice, it is guaranteed that one will land himself in grief and suffer from monetary loss apart from mental agony.These days, intellectual honesty, sincerity and integrity and loyalty to the organisation the employees serve and commitment to customers etc have been given a go by and there is no authority worth the name to fix the accountability or responsibility. Employees knowledge of the products,knowledge of his own institution, the statutory and legal provisions relating to the products they sell , the institutions they serve etc are virtually absent. The movement an investment is made, and money is parted with, the head ache starts for the customer and the employee who sold the product may not be traceable as he would have either changed the job or would have left the place never to be seen or contacted again. The institution will have its own logistics and explanations to justify the loss incurred by the investor. Credibility is what is missing in the whole system of liberalisation and diversification of business. The bankers are expected to be trustworthy, but of late they have an eye only to trap you and extract your money.This is the experience of many, but seldom they express because of old age, non affordability to fight in terms of money, energy, mental stamina etc. Many lose in the process and banks do enjoy the gain. It is a fact. The reason very often cited is investments are subject to market risks and banks cannot be held liable for the loss if any.Mis selling the products by banks is wide spread and it is time for banks to concentrate on mobilisation of deposits and lending the funds profitably and productively without Banstersmaking the depositors lose their trust and money. 

Dr.T.V. Gopalakrishnan

(This is in response to an article should customer trust bank's advice that appeared in Money Life)

The need for RBI being made accountable

The article is very well written and has convincingly argued to fix accountability of RBI to the people of India for their fortunes and now the misfortunes. The RBI's core functions and additional functions are by and large carried out to the best of its professionalism and are presented before the Parliament and the Parliament Standing Committee on Finance.No doubt, RBI's functions often give rise to conflict of interest and this results perhaps in the necessity for fixing accountability for RBI.The reasons are not far to seek in making RBI working perhaps not in the interests of bringing in economic inequity. The RBI does not enjoy the autonomy as it deserves as a full fledged Central Bank. All its Directors are appointed by the Central government and they are not expected to dissent from the thinking of the Ministry of Finance or the Government. Unlike many Central Banks of the world, RBI has been entrusted with the responsibility of rural development by statute and other developmental functions apart from core Central Banking functions. Though NABARD has been set up exclusively for Agriculture and Rural Development, RBI has not been relieved of the development of agriculture and rural development. The Financial Inclusion cannot be the exclusive responsibility of RBI where the involvement of State, central and other agencies have an active role and responsibility taking into account the envisaged social and financial role of various financial institutions functioning both in rural and other areas. No doubt RBI has to be made accountable for its functions,but given the present circumstances,there are many aspects to be looked into taking into account the relationship between the RBI and the Government,the socio- economic conditions of the country and the general governance standards and accountability. The author's approach , however,deserves appreciation and a lot has to be done before the objective is set.

Dr.T.V.Gopalakrishnan

(This is in response to an article " RBI should be made accountable' that appeared in Money Life dated 18/10/13).

Bank Licences and NBFCs

It seems Mr Chakrabarty  wants to favour some NBFCs though they are part of the Corporates. He was seen associated with L&T Finance in some of their functions knowing fully well that L&T Finance is one of the applicants for License. He could have very well avoided getting associated with the prospective applicants. The FM has already indicated that Seven would get Bank License.It seems RBI's appointment of a Committee to decide the eligibility is a mockery. It all looks predetermined as to who should be given the licence.

 

 

Dr.T.V.Gopalakrishnan 

 

This is in response to Dr Chakrabarty's comment NBFCS have advantages in Bank license that appeared in Business standard dated 9/10/13))

Suffering by the Honest people

Past few years of ruling has only damaged the economy and people are suffering by not being able to lead a decent life.Greed has overtaken the entire system and there are no principles or ethics or values in extracting money through various means adopted by any service providing agency. Right from cradle to grave, corruption is rampant and money only rules the country. How one makes money and dupe the people and the Government is not any one's concern. Those who remain honest and go by the good values of living are the worst affected.The only way  for the present Government to tackle higher subsidy is to squeeze the poor masses further which will have a serious bearing on the future of the Party in power.. As it is, people have lost all their hopes in the present Government and they are waiting for an opportunity to have a change.

 

Dr.T.V.Gopalakrishnan 

(This comment in a modified form is in response to a report India Must tackle higher subsidy Spending that appeared in Times Of India dated 8/10/13)

Banks and service Charges

Now banks can dictate terms and exploit the customers as the freedom enjoyed by the customers to freely change the banks  has been taken away with the introduction of Complicated  and Cumbersome procedures  The customers are actually trapped and they have no escape from these sorts of harassment s. The authorities to regulate the banks are silent spectators or are party to the harassment. It is time Customers  get united and fight for their genuine rights as otherwise, they will be taken for a ride and their money with banks may not be safe. In the name of service charges, their balances will get eroded and there wont be anybody to answer the customers. As it is , it is extremely difficult in practice to register a complaint for deficiency of service and what ever banks  advertise is nothing but bogus procedures which may not yield any result. If contacts are there then one can expect some reasonable service or reply to one's complaints.

Dr.T.V.Gopalakrishnan

Dr Rajan and his responsibilities

Why the author wants to write some rubbish out of his imagination? He could have written some positive sides of the Governor and his responsibilities  of improving the economy with all its present challenges.  The present Governor is only in his fifties and has a strong academic background with international exposure and experience in understanding the nuances of finance and how it plays havoc in destabilizing even a strong economy like US. Dr Raghuram Rajan has got a unique opportunity to understand the role of dirty politics preventing implementation of good economics and play his game of balancing politics and economics for the welfare of the masses and economic growth with currency stability, price stability, political stability and social development. The author's sarcasm and humor should  have been on the positives of being a Governor of a Prestigious institution having challenges of unpredictable nature  from domestic and international arena. That would have been more appreciable. 

Dr.T.V.Gopalakrishnan

(This is in response to an article Secret Diary of RBI Governor that appeared in Outlook )  

Frustration and Suicide

The incident is unfortunate and it should not have happened. The capacity to bear the frustration in life is missing because of so many factors in the society ,. The political system, the deterioration in educational standards, the deteriorating economic conditions, taxation policies, employment conditions, poor governance standards, extreme poverty, lack of health care for under privileged classes etc do not provide any hope that things will change for the better tomorrow. Though suicide is not a solution but weak minded persons unfortunately resort to this and this needs to be seriously dealt with . The role of politicians, administrators, educationists, social Reformers, doctors and law enforcement agencies etc should undergo a thorough review and need to be redefined to ensure that they play an effective, constructive, proactive and useful role to bring in atmosphere for living the life full? At present all good things in life happen only in Movies and not in real life is a fact to be well taken note of by the those who matter.May his soul Rest in peace.  Dr.T.VGopalakrishnan This comment is in response to a report Karnataka salesman commits suicide, names PM in his suicide note that appeared in TOI dated 6/10/13).

Rail fare Hike

The Government has only very limited time left and they have to see that public are squeezed to the maximum. This has been going on for the last so many years and the result is that public are not able to bear the cost of living. The economy has also suffered due to total mismanagement and loot.

Dr.T.V.Gopalakrishnan

( This comment is in response to the report Rail Fare Hike Proposal Under Examination that appeared in ET dated 3/10/13 )

Justice, corruption. people and economic Growth

Justice though delayed but not  denied making the Judicial system of the Country proud. This is a lesson for those who are powerful and mighty and ignore the laws of the land.Hope this decision will pave way for minimizing corruption and improving the Governance standard. The economy will perform then to the full potential and people's involvement can be felt everywhere in support of the economy's growth. 

 

Dr.T.V.Gopalakrishnan 

 

( This comment appeared in TOI against the report Fodder scam: Lalu Prasad gets five years in jail, Jagannath Mishra four  on 3/10/13)

Toilets First, Temples later

Modi's remark is remarkable. After 65 years of Independence the very basic facility of toilet is not available to a large section of the people is a very poor reflection of the Government's concern for the masses. A part of the money looted since independence if spent on poor people's basic needs, such remarks would not have come from a leader who is also hailing from a poor family. The inexpensiveness of the Government in power to the peoples' genuine requirements if highlighted should not make the Congress sensitive. Even now it is not too late for the Government to act. It wont take more than six months to provide toilet facilities to the needy . Before next election the work can be executed and the authorities can claim that toilet facility is made available.

 

Dr.T.V.Gopalakrishnan

 

(This comment appeared in TOI against the write up  Congress slams BJP over Modi's 'toilets first, temples later' remark)

Appointment of RBI Board of Direcors

The approach is good but how far Dr Rajan can convince the Government and get the nominees of his choice is in doubt as the appointments of Directors are done by the Government in terms of RBI Act. Consultation of the Government with RBI  is only name sake.

Dr.T.V.Gopalakrishnan

( This comment is in response to RBI board may get young faces to fill vacancies'' that appeared in ETdated 3/10/13).

Need for a change in approach to marketing

The greedy pricing style for products and high inflation making it unaffordable for many in the society are the reasons. Time the present marketing techniques used in the economy are reviewed and the element of greed, hidden clauses and unethical practices are removed. In the name of competition, consumers are taken for a ride and they are cheated left and right.This sort of marketing is of recent origin and needs to be nipped in the bud itself to retain the business in tact. Otherwise the failure of the business is certain.

Dr.T.V.Gopalakrishnan
( This comment is in response to an article " Unpredictable demand forces retail firms to reduce stocks'' that appeared in ET dated 3/10/13).

Making Employees the Scapegoats

The entire money should be recovered from Mr Maran .Officials involved at that point of time should not be penalised for any of their lapses as they can always be dictated and threatened by the Minister by various punishments if they fail to act. This sort of pressures are there in many of the Government Undertakings and PSUs and employees are often made the scapegoats. Some employees are rewarded if they bent and if they are able to bend the rules and act as per the instructions coming from known and powerful sources but often in a camouflaged manner. The need for the employees union to be more vigilant and to act proactively to prevent the misuse of the offices by the political or other powers what ever may be is paramount to safeguards themselves from such penal measures as cited in the article.

Dr.T.V.Gopalakrishnan

(This comment is in response to an article on Mr Maran's case that appeared in TOI dated 3/10/13).