Are the LIC Branches really working?

I had taken two Market Plus policies investing Rs 10000 each in my Name and in the name of my Mrs.The policies   were issued by  Palakkad Branch Code Number 700 .The close ended scheme matured on the 31st March and even after a lapse of three weeks,the branch has failed to reimburse the proceeds although instructions and formalities have been fully complied with well in advance by handing over the documents to the Manager in person by the agenton the 31 st of March itself through whom I normally deal with LIC products This sort of delay is avoidable unless the corporation has ulterior motives to use such funds from millions of  investors amounting to crores of rupees.The Chairman and the staff are accountable for such misuse of funds and loss of revenues to the middle class and timely availability of liquid funds. This is nothing  but blatant display of Public Sector character of inefficiency, lack of commitment and  involvement on the Job.The tolerance of such delays by investors and Jane do attitude also make the staff lethargic and casual. Hope this will attract the attention of the top management and make them answerable. They cannot divert investors funds fallen due for payment and make money for themselves. Investors have also ALM in their own way and this cannot be overlooked.  

The Chances of our Country prospering are remote when such Vital Institutions have no concern for public and no sensitivity to their own survival. My efforts to put on this feed back in LIC's website have miserably failed and website also needs to be looked into if the Institution is serious to have some feed back both good and bad.

Dr.T.V.Gopalakrishnan

(This feedback has been sent to LIC Chairman).

Learn to make the economy strong

This refers to your editorial Monetary Sovereignty (Business Standard dated 17/4/2014). Mr. Bernanke’s observation Put your House in order is correct in a way that it is for each and every economy to make its macro economic fundamentals strong through the coordinated approach of the respective Government and the Central Bank of the country. From this perspective what we have seen in our economy for the past few years intentionally or unintentionally, is that Coordination between the Central Government and the Reserve Bank was virtually absent to say the least. In the absence of strong economic and administrative measures from the Central Government, the economy went astray pulling down the macro economic fundamentals throwing into the wind the safety measures the economy can have from the external forces that come into play whether it is in the form of quantitative easing or something else. The GDP growth which is more dependent on the fiscal measures than monetary measures has been ignored for various reasons and the RBI has to make a lone battle to contain the defiant inflation and inflation expectations largely caused by the inaction on the part of the Government to augment supply through improved productivity and removal of supply Constraints. The weaknesses of the economy will naturally manifest in the weakening of the rupee and its adverse consequences on the flows of resources from international economies. The sum and substance of Mr Bernanke’s message is that one has to learn to run the economy strong with appropriate fiscal and monetary measures and expecting advanced and external economies and their Central Banks to adjust for weaker economies is neither desirable nor feasible. If it comes that way, it is only a bonus.        

Dr.T.V.Gopalakrishnan

(An edited version of this appeared as letters to editor in Business Standard on the 18th April in response to the editorial  Monetary Sovereignity apperaed on the 17th April. 2014).

Mr Bernanke wants RBI to enjoy Autonomy

The RBI's autonomy is only on paper and it is only an  institution physically separated from the Central Government. All its functions are carried out in terms of the RBI Act of 1934 but with the tacit approval of the Government. As long as Government nominees are there on the RBI Board and Government expects RBI to get a clearance from the Ministry of Finance before announcement of any policy,there cannot be any autonomy for RBI.Further to make matters worse,the major chunk of the banking system through which RBI expects its monetary policy measures get transmitted to the economy is under the control of the Government with its  Directors in each and evrery bank Board  and with powers to override RBI to issue directives the way the Government wants. Even the worst part is that RBI has no powers to revise the Pension of its retired employees, although the pension needs to be paid on par with Central government employees and there is a clear understanding to that effect. Mr Bernanke can express his thinking liberally and rightfully so, but we have our own definition of autonomy which he may not understand.

Dr.T.V.Gopalakrishnan
(This comment is in response to Bernanke's message to new govt: Ensure RBI's autonomy that appeared in BS dated 16/4/14).

Improve Data collection at all levels

The editorial ‘Data Distortions-Our policy makers are whistling on the dark’(Business line dated 16/4/14) is very apt and deserves very serious attention from Statisticians, Administrators, surveyors and policy makers at all levels of various institutions, State and Central Governments. The former RBI Governor Dr Subbarao was harping on the poor quality of data every now and then and it is unfortunate to observe that it has not captured the attention it deserved of the powers that be and the results thrown out on the economic front and the policy measures taken on that basis are topsy -turvy reflecting very poorly on the economic indicators and welfare of the people. Whether it is GDP growth, Industrial or agricultural production, exports, imports, employment, inflation, power generation, distribution, sales tax , income tax collection , number of assessees under different taxes, wealth generation by the nation or individuals, etc do not reflect the actual position and there is only gross underestimation of all important information adversely affecting the nation, economy and the people in different ways. It is time data collection is given utmost importance by the new Government which itself will give a big boost to GDP growth as many economic activities carried out by many segments in the society do not get reflected properly giving rise to lower estimates of goods and services, tax collections, and employment particularly self employment. If the data collection is more or less accurate, the country can save a lot on subsidies is not an exaggeration and the finances of the Government would look far far  better.

Dr.T.V.Gopalakrishnan    

(This comment is given to BL in response to the editorial Data Distortion dated 16/4/14).       

NPA loot goes unnoticed by public

When free loot is possible through the NPA route, why should  one care for a lasting solution. Nobody wants any discipline and banks, borrowers and others having vested interest make hey while the sun shines. The write offs, legal cahrges, restructuring cost and several other  costs are borne by the depositors and share holders of banks and the recurring loss to the economy  because of NPAs is borne by the tax payers. The public awareness about the loss the society incurs because of NPAs is absent and the loot is let loose. Earlier they discipline banks for their failures in minimising NPAs and Borrowers 'failure to conduct the loan accounts satisfactorily, this cancerous disease will remain in banks books.The solution which had the appreciation and recommendation for implementation on a trial basis  by the examiners who include professors from abroad has been well commented by none other than Dr Rangarajan, The Chairman , PMEAC. Perhaps, this also requires right contacts, connections and influence althougfh the solution is for the benefit of the society, economy banks, Government, tax payers and savers of money.Had the solution been implemented in 2004, the NPAs menace could have been well contained  by now and banks books would have been strong and the economy would have   benefited immeasurably.

Dr.T.V.Gopalakrishnan

The Congress and the averages

If one were to take the average for 60 years of Congress Rule , the performance would be  the worst and they do not deserve to be elected for another sixty years. The present generation people particularly youngsters are better informed and they have access to all sorts of information and they are able to analyse,think and act. No party can fool the people as they have been fooling earlier. The average person is more informed to day than an average person of the yester years is what the Congress led UPA should understand.

Dr T.V.Gopalakrishnan

(This comment is in response to Swaminathan Iyer's article on UPA's 10 year averages appeared in TOI and ET dated 6/4/2014.)

Dr Manmohan Singh created his own destiny.

Well written piece with expressions of praise sympathy, emotions and feelings for Dr Manmohan Singh who shot into fame for his academic brilliance,professional excellence and as a worldly renowned Economist, but a man  who miserably failed in his political career to cling on to Power which overshadowed all his achievements and glory and put him into shame. Man creates his own destiny is 100% true in Dr MMSingh's case.He had an excellent and enviable career and he was the last word on Economics and Finance. The Man who created history to bring India on the map of the world economy as a fast emerging and a vibrant economy in the early 1990s and became internationally noted economist, has unfortunately tarnished his image beyond recognition through his stint as a PM and emerged as a laughing stock  among politicians and acdemicians, professionals and even ordinary masses. He let down the people and the Country during his second term as PM and all their expectations and aspirations were shattered. People have all sympathy for him but he will not be forgotten and forgiven for all his misdeeds and ruining the economy with all possible ills. As he has risen to fame he has also fallen is the truth.    

Dr T.V.Gopalakrishnan
(This comment is in response to an Article on Dr Much Maligned Singh).

Well done RBI.

With the decision to issue licences to two of the twenty five applicants RBI has proved that it cannot be influenced and it cannot be taken for granted. RBI has learnt enough of lessons from its past mistakes right from 1949 onwards when BRact was passed.The Corporates monopolised the licences in the early periods and because of their misdeeds and cornering of loans many had to be nationalised in the late 1960s and early 1970s. The 1993 experience was still bad and RBI had to learn new  regulatory skills from some of the aggressive banks. The experience of licensing of  some banks in the early 2010s was also not so good. The present decision reflects RBI's maturity and the  continuous future responsibilities it has, to have a very healthy banking to cater to the needs of equitable development of the economy. Well Done RBI, the only Instituion which can be proud of for its integrity and Corruption free practices. The nation  also can be  really proud of for having such institutions in the midst of  many an institutions which are susceptible to all  sorts of irregularities, lobbying, influence and falling easy prey under political pressures.

Dr.T.V.Gopalakrishnan

Dr Rajan prefers to be very cautious.

Patience is the key is  what RBI has indicated through its policy review.   It  has kept all the rates unchanged RBI is not very well convinced of the reducing trend in inflation  and it expets upside risks which is justifiable and genuine. The  downtrend  in inflation presently seen may not be sustainable for long in the context of not so sure a good monsoon and the uncertainities about the policy line the new Governmet may adopt. RBI has taken a safe policy approach by maintaining the statusquo giving no room for undue speculation in various markets. By the time the next bimonthly policy is due on June, he would get an Idea of the new Government and its thinking on  economic policies. Well done by Dr Rajan at this juncture of election mood of the nation.

Dr.T.V.Gopalakrishnan