Why Retirees are made to suffer?

'RBI pensioners are the worst affected as the bureaucrats and the Government for reasons best known to them and definitely not justifiable from a humanitarian angle have stopped the updation of pension although there has been an agreement to revise the pension at periodical intervals to compensate for the galloping inflation and ever increasing cost of living. RBI is perhaps one among the very few institutions where corruption is unheard of, human resources show high standards of professionalism and commitment to work to get both national and international accalim.The pension updation has been stalled despite RBI not depending on the Government to meet the expenditure which is a pittance of the profit transferred to the Government every year.'' Dr T V Gopalakrishnan

The pathetic condition of RBI and the employees

This mass casual leave by the employees of RBI definitely could have been avoided had the Government been a little sensitive and and had acted responsibly understanding the need to have an independent Central Bank to ensure a very sound and strong  financial system very badly needed for the healthy and sustainable development of the economy.There is no room for politicization of this great and giant institution which has earned a name and reputation for its professionalism in discharging its responsibilities efficiently, effectively and in a very balanced manner adjusting to the political changes and the domestic and international economic dynamics.Instead of respecting and strengthening this mighty organisation, the approach is to dilute and weaken the Institution to satisfy the ego of some politicians and bureaucrats who have an axe to grind. Luckily the Governors were strong with a few exceptions perhaps and they could make the Institution nationally and internationally strong. The bureaucracy is treating this institution as a wing of the Government and interfering even in deciding the salaries and perquisites leave alone as to how to go about its important central banking responsibilities. Even the pensioners have not been left out and their pension updation has been stopped by a speaking order ignoring the agreement entered into between the Bank and the Government to grant /revise  pension for RBI retirees on par with the Central Government employees. way back in 1990. The politicians are unfortunately being hoodwinked by the bureaucrats and neither the Government nor the bureaucrats see any reasoning or rationale in stopping the pension enhancement which is nothing but a subsistence allowance having even the approval of the Supreme court.   
The Government definitely cannot weaken the RBI in its own interest, in the interests of the economy and in the interests of the people. It takes decades and lot of hard work, involvement and commitment to develop an institution strong, worthy of its responsibilities and get national and internation recognition. The backbone of any well established  institution is its Human resources and they cannot be ignored at any cost. Pension payments  for the retirees is only a social security measure and the need to revise the pension at periodical intervals in these days of galloping inflation is just a genuine need and very essential to keep the body and soul together. 

Dr T V Gopalakrishnan

Inflation and cost of Living

The cost of living has been on the increase and there is no way of making it come down but inflation has been on the decline and will continue to fall further over a period of time. The prices of food items like dal, rice, grains,pulses,  vegetables, oils, fruits, and all other items of food without exception have increased over a period and people are suffering is a ground reality. The cost of living has increased by leaps and bounds thanks to increase in travel costs, increase in the prices of food shelter and clothing, medical expenses, educational costs etc etc. The experience of ordinary masses is miserable and by and large they are finding it difficult to make both ends meet. 

Service tax among other things is the culprit  behind the ever rising cost of commodities and services and this Government and its bureaucrats continue to tinkering( like any other Government in the past) with the taxes which are highly inflationary.Instead, if the Government is after speculators, hoarders, black money dealers, corruption in various places, improving the Governance standards in various institutions particularly banks and Public Sector undertakings, the revenues of the Government will automatically get augmented and they cannot be inflationary by any reckoning. Old habits and practices of tinkering the taxes to loot the masses if continued, the so called Ache Din will be a distant dream and it wont take much time for people to realize  that  they have been very nicely fooled with empty promises and false hopes. People really do not understand the difference between inflation and cost of living is a fact which needs to be convincingly explained by the authorities with reference to the  wages and inflation. 

Dr T V Gopalakrishnan

Government bent upon encouraging Stressed assets in banks.

''The appraoch of the government to set up a Fund to tackle Stressed assets of banks  can only help to encourage borrowers to default. This  will act as a moral hazard and water down the discipline envisaged on the borrowers to avoid diversion of banks funds and conduct the loan portfolio constructively.. What the Government should do is to have  a  Fund created by levying a penalty from undisciplined borrowers and unprofessional bankers in managing the credit portfolio. The approach to bring down stressed assets by using tax payers money or other stake holders of the economy other than those who are responsible to generate stressed assets is an injustice meted out to honest borrowers and other stakeholders of both banks and the economy.''

The Government cannot allow this loot by banks and borrowers using depositors hard earned savings and tax payers money mercilessly. Dr T V Gopalakrishnan

RBI and the Governors

The article is very interesting and the author has given a brief assessment of the various Governors contribution to the economy taking into account their linkages with the Governments in power and the undercurrents at various points. Generally RBI is not closely watched by the media and the Governor's performance and RBI's role in safeguarding the macro economic fundamentals particularly inflation and economic growth have not been evaluated independently by any agency or the media. If political interference is too much  in RBI's functioning ,some Governors dare to be very vocal and get noticed and attracted by the media.Their positives contributions in keeping the economy insulated by any external financial turmoil like Asian crisis, global financial crisis etc seldom get noticed or publicly recognised..The history volumes of RBI are basically brought out based on the published materials and the secrets if any why an event has happened, how it happened, or the circumstances under which it happened and how it had been handled to avoid any possible catastrophe etc do not seem to be made transparent and perhaps the author in his proposed Monograph on RBI and with his intimate knowledge of RBI as a Consultant  and senior Journalist specialized in  Finance and Economics can bring out in detail how the RBI keeps itself free from Severe Criticism from public, media and is able to do reasonable justice to the functions entrusted to it  despite lack of autonomy even in taking care of its own staff welfare leave alone in managing the economy and finance. 

(This comment is sent to Business Standard dated 16/11/2015 against TCA's article on RBI )