The article reads well and well argued against RBI  but it is totally one sided is what I feel. The need to make RBI accountable is well taken but how to make it accountable when its so called autonomy is only on paper and it is made to dance to the tunes of politicians, bureaucrats and  it gets questioned  every now and then by all when something against the bureaucracy or media or political philosophy is expressed directly or indirectly by the top management through their speeches and otherwise. The author should have  and could have done full justice to her write up by probing into the working of RBI and understanding well  as to what extent it is allowed to have operational autonomy in its day to day functioning.  No doubt some Governors with their diplomatic skills and taking advantage of political connections, and command over the bureaucracy could appear to be functioning as if the Institution has full autonomy, but some had miserably failed and had to leave despite their intellectual supermacy , mastery over the subject of Economy, Finance and Management. RBI despite all short comings has earned a reputation for its professionalism in keeping the Financial System free from turbulence and  unsoundness. The problem seen in NBFCs is not RBIs' making is a well established truth and as long as political  and bureaucratic interfrence is there in the functioning of any well meaning Institution , I feel your well intended objectives cannot be achieved. The fact that  RBI has  punished  the erring banks and saved  the depositors  from catastrophe is   well known to the learned public and how RBI fails at times is also well known to all Intellectuals of this nation. The need to make RBI totally independent and making it  accountable to the parliament and public is  paramount and definitely the need of the hour.Hope this article will  help to generate an intellectual debate and help RBI to have its autonomy in true sense of the term. 

Dr T V Gopalakrishnan

This comment is given in response to an article on "RBIs' Accountability questionned" that appeared in Money Life.

Time to review The System and Procedure pursued in PSBs

Dear Sir,

                    Sub Time to review the System and Procedure pursued in PSBs.

The PSBs need to change their approach, attitude and above all appearances to remain in banking business which is essentially to deal with the most sensitive Commodities Ie Money and human resources. Banking is a service oriented commercial activity with lots of social objectives to serve the ordinary masses and the economy to achieve the twin objectives of  economic Growth keeping the inflation under the affordability of the large segment of the population and fair distribution of the resources ensuring inclusive growth of all the segments of the economy. Public Sector Banks having SBI as the largest bank have to be necessarily role models to all those in the Financial services sector in the discharge of their major banking functions ie mobilisation of deposits and deployment of the  funds  equitably , profitably and socially to achieve the economic growth well intended and vigorously pursued by the Government . In this context, I have a few and very simple suggestions for your possible consideration and implementation.

Very recently, myself and my wife both senior citizens  happened to visit a branch of the State Bank of India to deposit some money under the tax savings  scheme to claim the rebate under 80c. My wife had a deposit under the scheme which got matured in February but unfortunately, the bank had no system of sending an alert through SMS or email to the depositors particularly when the depositors are senior Citizens and chances of their keeping track of transactions are very remote.  The Deposit got matured on 2^nd February 2019 and being away on a pilgrimage, we missed the date and happened to see the Deposit receipt only on our return. Immediately we rushed to the branch and requested to renew the Deposit under the tax savings Scheme to claim the rebate under 80C for this Financial year ie 2018-19. The System and procedure of the Bank is such that it took almost one and half hours to complete the process involving transfer of the matured deposit proceeds to an SB account and then opening a fresh Deposit account with a request application along with a cheque to transfer the money from SB account to the new FD. The Staff was very courteous, helpful and Customer friendly but the Systems and procedure followed involves time, paper work despite having a computerised system and core banking solution to take care of all possible demands of bank and Customer needs. It is really a pain to be in the bank premises for an unduly long time to do a small transaction incidentally favouring more the Government than the bank. I strongly feel the whole transaction can be finished in five minutes with a simple request from the Customer in writing and submitting the matured deposit receipt. The very joy of visiting the bank vanishes the moment the procedures are advised and made to wait indefinitely to completely the process. This can be and needs to be avoided at any cost if the Image of PSBs matter among the depositors who are the real back bone of the Financial system.

Then the banks’ image along with the  Government’s   prestige get projected on the Receipt issued by the bank for the Deposit made under the Tax savings Scheme. While simplicity and Cost saving are essential features to be followed and admired by all, they should not be at the Cost of bank’s on stature and image among the banks and the public. I am sorry to observe that the receipt for the deposit was in A4 sheet the preservation of which with distinction as it carries value for the holder is at great risk. I am shocked to get a receipt in A4 sheet which shows the pathetic condition of the bank and the attitude it has for its Deposit Customers as they have no other choice other than come to banks to keep the money. This is going to ruin our PSBs’ prestige and image and definitely SBI’s being the largest public Sector Banks with maximum international presence as they  cannot and should not stoop to such levels. As seeing is believing, I enclose the receipt issued for our deposit for your perusal, and own judgement.

PSBS have a greater role and responsibility in the nation building and making the financial system strong, visible to the whole world to emulate them for their involvement, commitment and supporting the economy through mobilisation of resources from within and outside country and deploying the funds effectively, efficiently and economically to achieve the political, economic and social objectives set by the Government and very rigorously pursued. The steps initiated by the government to make the PSBs strong by injecting additional funds along with helping them to wriggle out of the bad debts conundrum are really admirable but they need to be adequately supplemented by improving the Systems and Procedures in carrying out the basic functions of banks, with efficient and flawless customer service and image building exercises without adding to the costs in any manner.  Time is equally precious to all ie all Service Oriented Institutions and Customers as well. Nothing is impossible in this great Country is what is being established in the recent past.  Attention is all that matters.

With best wishes and highest regards,

Yours faithfully,

Dr T V Gopalakrishnan

A Senior Citizen and Well wisher of The Government.   
 (Copy of  the Letter addressed to the FM)