Ensure people eat food

The article provides lot of food for thought.The suggestion to give cooked food is good but in our system,even this is not workable as leakage of grains, vegetables and provisions and over charging of expenditures (leave alone hygienic conditions for cooking) to get the entire process of cooking done will be a comfortable loot by the politicians, middlemen and persons engaged in the final delivery.Dishonesty,lack of sincerity and commitment at the implementation level is the major problem in India and this can be tackled only through strict vigil, severe punishment,close monitoring and follow up with proper feed back from people intended  to be fed.Chidambaram's job would be over on the sanction of amount towards food security and whether people get nutritious food will be the journalists' problem later.. 

Dr.T.V.Gopalakrishnan

(This comment is in response to an article 'Cook it Mr Chidambaram' that appeared in Business Standard dated 1/2/14) 

Bureaucrats are more corrupt than politicians.

Bureaucrats are behind corruption in India and they brain wash the politicians and make them to suggest policies to make attractive with populism. They design the programmes for implementation and the process of implementation ensures that money does not reach beneficiaries and comes back to politicians and bureaucrats through middlemen. The corruption is an art in India , and it has an effect of looking very genuine when bribe is demanded and transactions are carried out. Even to get a conveyance for a plot purchased, 50 % of the plot value is demanded as bribe and unless and until the money is paid the conveyance ie Katha Certificate is not given. Here politicians are not involved but only petty officials working in Village offices and sub registrar's offices. Of course part of the collections may be going to local politicians.To prevent corruption, as Kejriwal introduced a system, people should report on demand and payment of bribe with as much information as possible and there should be very serious and meaningful action imposing heavy penalties including dismissal from service the officials involved. Can the Govt with its bureaucrats take some preventive action?

 Dr.T.V.Gopalakrishnan 

(This comment in Business Standard is in response to the news Item  AAP to go all out against 'corrupt ministers' in Lok Sabha elections appeared in BS dated 31/1/14).

Poor performance of PSB banks.

The reasons for PSB's poor performance can be easily attributed to the intervention by the Government and the Regulator in their functioning. Right from the appointment of Board of Directors and Chairman to the day to day operations of the banks, Government interference is there directly and indirectly. Banks are not allowed to run on professional lines and the advances portfolio of banks are as per the directives of the Government and the Board of Directors under the influence of big business groups. A large segmentation of NPAs is with the knowledge of Banks' management and nothing can be done about it unless and until a self disciplining mechanism irrespective of the background of borrowers is introduced. Write off of loans and some of the major expenditures need close monitoring in PSBs and the Board of Directors from the Government and RBI should be removed. The appointment of Directors need to be merit based and not influence based as it is happening now. Will the Government show some guts to bring some changes and discipline?

Dr.T.V.Gopalakrishnan

(This comment appeared in Business standard is in response to an article by

T N Ninan: Money in those vaults Why do govt banks command such little value when they account for three quarters of total banking?)

Balance tilted in the economy

The article carries the message that inflation cannot be controlled even if the interest rate is hiked and money is made dearer.RBI's presence in containing inflation and enhancing Growth has no relevance is a fact which gets proved with the announcement of Inflation index and GDP growth every now and then. Urbanisation at the cost of agriculture has not only brought down agricultural production,procurement and distribution as per the demands generated but also brought in lot of changes in the area of savings and investment.Manufacturing has been badly hit thanks to erroneous policies being pursued ignoring the need for investment, production and distribution of wealth in an equitable and justifiable manner.The balance in the economy has been tilted in such a way that investors care for only making fast bucks without thinking of the future of the economy and its long term growth. RBI has lost its power of influence in the economy in the absence of strong fiscal measures for quite some time. The economy as it is, moving without any proper direction and it will take a lot of time , efforts and thinking to place it back on track. The author has well captured the problem but not succinctly put perhaps to avoid embarrassment.

Dr.T.V.Gopalakrishnan

(This comment is in response to an article'Is inflation here to stay? that appeared in Business Standard dated 30/01/2014).

Why raise rates?

This refers to the editorial "To hike or not to hike" (January 29). The reason to raise the repo rate 0.25 per cent is not very convincing since the fundamentals of the economy and the forces behind inflation continue to remain more or less the same as obtained in December, though the Consumer Price Index has fallen slightly thanks to the reduction in vegetable prices. It would have been better to maintain the status quo which would have at least satisfied the market. The current Reserve Bank of India governor like his predecessor, seems to be gradually getting convinced that inflation needs to be contained at a comfortable level to ensure gross domestic product growth. Measures such as the withdrawal of old high-denomination notes printed before 2005, are indications that he wants to achieve price stability, before targeting growth. The latest measure, however, cannot be of much use in reducing inflation or enhancing growth.

T V Gopalakrishnan Bangalore

(This letter appeared in Business Standard dated 30/1/2014)

The approach to Contain food Inflation

To contain food inflation in particular,the state Governments and Central Government have to ensure that agricultural Production gets a boost with support of improved productivity, yield per acre, enhanced area under agricultural production, proper storage,transportation at cheap rates, marketing and distribution removing several layers operating there on. NABARD has a key role and it cannot be acting as a Policy making and Refinancing institution. It has to be in the field coordinating with state Governments and various agencies involved in all agricultural and rural related activities. The Local Boards of RBI can also be more effective involving themselves in intensifying the activities of all agencies and guiding them with proper policy inputs. It is high time RBI local boards and NABARD interact and come out with adequate support to solve the issues related to agricultural production. APMC ACT Needs to be totally scrapped and middlemen who indulge in all corrupt practices hiking the prices of commodities without benefiting either the producer or the consumer have to be eliminated. A lot can be done but the will is missing. 

Dr.T.V.Gopalakrishnan

( This comment in ET is in response to an article The only way to tackle food inflation is through holistic reform of agriculture ).

Mor's Recommendations are nothing new

The report has a publicity and populism effect but cannot be put into practice unless the mindset changes at various levels and stern action is taken for failures. The recommendations will have as rightly said the idealism in their contents and objectives, but lack conviction on their successful implementation based on past trends. 

Dr.T.V.Gopalakrishnan 
(This comment  is in response to an article Nachiket Mor committee report is an example of triumph of idealism over experience that appeared in ET dated )

Future tense

With reference to the editorial, “Clarity from data (Business Line, January 16), it is a great relief to read that consumer inflation came down from 11.16 per cent to 9.87 per cent. But how far will these figures hold in light of persisting political instability, laxity in the pursuit of economic policies, declining industrial production and uncertainty of extension of adequate support for agriculture?

T. V. Gopalakrishnan

(This letter appeared in Business line dated 17/01/14). 

Virtues of waiting

This refers to the editorial "Still no room for RBI" (January 16). It is a great relief to know that consumer inflation dropped from 11.2 per cent to 9.9 per cent, while wholesale inflation declined from 7.5 per cent to 6.2 per cent. But the question that lingers in the minds of policymakers is how far these figures are sustainable, especially in the background of persisting political instability, laxity in the pursuit of economic policies, declining trend in industrial production and uncertainty over the extension of adequate support for agricultural production. The Reserve Bank of India cannot take policy decisions merely based on the current trend - as it did in its last policy review. It would be better to wait for some more future trends in the inflation index. 

T.V.Gopalakrishnan Bangalore

(This letter appeared in Business Standard dated 17/1/2014).

Financial Inclusion Understand Ground realities

The objective of 100% Financial inclusion is laudable but not achievable just because of the fact that Banks Hate Achieve this Goal (BHAG)as the mindset of staff and the procedures involved for complying with the KYC norms are not simply favourable. To achieve this, the only way is to send volunteers from house to house as happened in the case of Polio Vaccination where it is claimed 100% success, to enroll households as Bank's Account Holders.Even then, this cannot guarantee full inclusion unless and until these customers are compelled to operate the accounts for which the banks staff have to be courteous,helpful and empathetic in rendering the services expected of them. Herein lies the crux of the problem.Theories sound very attractive, but practices also need to be made equally attractive for which, the approach has to be totally different. Will and can the authorities ensure that?

Dr.T.V.Gopalakrishnan

(This comment published Business standard is in response to an Article by Subir Gokarn on BHAB Financial Inclusion BHAB)

ATM Chrages SBI's Argument

The bank's argument is not tenable. SBI enjoys the maximum float funds free of cost and the very thought of squeezing deposit customers by charging for withdrawals of their own money used by banks to lend and write off in some cases is atrocious. The monies written off through bad loans if avoided would be more than the ATM maintenance cost and there is absolutely no justification to charge for the ATM transactions. Since the depositors are not able to resist any such moves, they are exploited to the maximum by the bank and it is time depositors organise themselves and resist such moves.

Dr.T.V.Gopalakrishnan

ATM Transactions

RBI while deciding the number of free transactions through ATMs, should also factor in the free float funds enjoyed by banks free of cost, the amounts written offs per annum because of bad loans, the establishment costs incurred which are non essential and avoidable, etc. The very thought of charging the ATM users is atrocious and cannot be permitted as the depositors are already an exploited lot taking into consideration the low SB interest rate, low FD rates and cross subsidisation of bad borrowers by all stake holders etc. It is better for banks to avoid the wrath of deposit Customers especially when the savings of households in banks are shrinking.

Dr.T.V.Gopalakrishnan
(This comment is published in Business Line).

Inflation index bonds

This refers to your editorial distribution holds the key to inflation Bonds. The IIBS cant be a success even if there are more incentives to distributors as the Bonds themselves are not attractive to investors from the angle of real rate of return in reality after taking into account the lock in period, lack of cash flows, income tax liability and lack of clear knowledge about the products among the investing class like pensioners, small depositors etc. RBI has made it complicated and made it unattractive for investors and as such, distributors cannot do much even if there are better incentives.

Dr.T.V.Gopalakrishnan

( This comment is given in response to the editorial Distribution holds the Key to inflation bonds that appeared in ET dated 11/12/13)

Having bank account for all

This is like chasing a mirage. Neither the banks nor many among the people are for opening the bank accounts and carrying out transactions through bank accounts. Even in metropolitan cities, there are thousands of people without a bank account and even if they have accounts they prefer to deal only in cash. To make the RBI's proposal a reality, it has to be made obligatory that no cash transactions above a cut off point say Rs 1000 should be entertained by any one in the society. Majority of self employed categories in the economy engaged in all sorts of economic activities do not take cheques or credit cards and issue any receipt is the ground reality and RBI cannot be of any help in bringing them into the banking fold.

Dr.T.V.Gopalakrishnan

(This comment is in response to  'Have bank accounts for all by Jan 2016: RBI panel' in ET dated 8/1/14)

Econo-Reflexions: Banks and ATM charges

Econo-Reflexions: Banks and ATM charges: There is absolutely no justification for banks to approach RBI to hike the ATM charges. The banks enjoy a lot of free float funds, low ...

Banks and ATM charges

There is absolutely no justification for banks to approach RBI to hike the ATM charges. The banks enjoy a lot of free float funds, low cost /free funds from SB and Current account holders and they also save a lot in the cost of funds by having ATMs. The technology was encouraged basically to improve the customer service at lower costs, to reduce the cost of funds and enhance efficiency and productivity in banks. The banks have a tendency to exploit the depositors by all means as they are hapless lots and not capable of giving any resistance. The borrowers are allowed to loot merrily and the loss is also passed on to depositors. RBI has to have a serious view of banks inefficient way of functioning before it takes a view in respect of ATM Charges.

 

 

Dr.T.V.Gopalakrishnan 

(This comment has appeared in TOI, Business Line, ET and BS dated 7/1/14).

Audit of Telcom Cos

More Scams will get revealed by auditing Telecom Companies. These Companies take the masses for a ride. They have millions and millions of Customers and and by fraudulent methods, if they hike the bills even by a rupee a month or enhance the bills through some messages uncalled for and unintended by the customer, these companies can make billions of rupees. Many a drop will make an ocean is the policy pursued by these companies and if the audit is serious and not an eye wash, many scams will be revealed. Last five years there is no semblance of administration in this country is a well known fact and loot has been the order every where. This is one of the reasons for Inflation and it cannot be contained by any  economic policy measures.  

Dr.T.V.Gopalakrishnan
(This comment is given in all News papers).

Black Money Will is missing to curb it.

Tax evasion is due to faulty system of taxation policies and corrupt practices. Black Money generation is very high as people prefer cash transactions which provides scope for evasion of taxes. Evasion is rampant in land deals and high value purchases of gold,silver and diamonds. The very fact that only 43000 persons have crossed the One crore limit of earnings as per the tax returns filed is a farce and any average human being in Mumbai itself will not vouch for this figure. The major lacunae in the system is to track the transactions in cash. If there is a ban on cash transactions above Rs 5000, and if all transactions above Rs 5000 are tracked by insisting on aadhar Cards, or PAN numbers and they are tied to the persons' bank accounts, it would be possible over a period to assess the exact number of persons evading tax and track the black money to some extent.The self employed and many business establishments do not issue any receipt against the purchases even if the amount exceeds Rs 10000. The fact of the matter is that the willingness to fix the problem is not there.

Dr.T.V.Gopalakrishnan

(This comment is in response to the article the menace of black money that appeared in ET)

Adarsh Society Scam

The politicians and bureaucrats jointly loot the national wealth taking advantage of the positions they occupy. Now the attempt is to trap only Bureaucrats and allow politicians to escape from follow up measures if any. The corruption is designed by Bureaucrats and they take extra pains to ensure that when ever policies are framed on any issue,there is scope for making money and this has been going on for decades unquestioned. Now the media is alert and keeping a watch on the atrocities committed on both intelligent and gullible public alike.People come to know through bold reports of the media as to  how the society's wealth is looted in the cover of democracy. Money Life has been playing a very active and vigilant role deserving all support and appreciation.

Dr.T.V.Gopalakrishnan

(This comment in Money Life is in response to the Write Up Adarsh Housing Scam: Here is what the probe panel report says that appeared in Money Life dated 4/1/14).

RBI’s strange ways

Your editorial ‘Bond better’ (Business Line, January 2) captures well the reasons for the lukewarm response to the inflation indexed certificates. These are neither attractive nor acceptable to the middle class and lower middle class, which include retired persons and pensioners, as they involve cumbersome procedures, offer unattractive rate of return, do not ensure adequate cash flow and are not intelligible to many among the investing class. Why the RBI should undertake this retail issue of certificates though through banks to small savers is a mystery.

 

T.V. Gopalakrishnan

Aspirants for Bank License

Some of the aspirants for bank License are involved in construction activities and have indulged in all possible mal practices and taken  the buyers of flats for a ride. Fudging of accounts, non payment of Corpus funds collected and violation of the laws of the land particularly  relevant to the land and properties etc have been observed to be a rule rather than an exception  with these construction companies and many cases have been pending against them in various courts. Since banks deal with basically  depositors' money and their safety is the utmost concern of the Reserve Bank and the Government, the aspirants  for bank License have to  be necessarily scrutinized and found  to be  observing and complying with the laws of the land  and have been fair in dealing with all their customers. Adherence to ethics and prudence to the  accounting principles cannot be ignored by any prospective candidate for bank license. Will the RBI ensure this?

Dr.T.V.Gopalakrishnan