Improve Governance standards and remove the structural weaknesses .

This refers to the Article RBI rate cut cannot Hide Structural Weaknesses in Money Life June 2025. The conclusion of the article that 'the economy is doing well, it is for the well off", reflects and captures well of the present state of affairs of the people less well off in the society . The monetary policy no doubt has changed it’s stance from accommodative to neutral but it really accommodates the borrowers particularly in the manufacturing segment and industrialists to think of expanding their investments and go on for enhanced production and employment through cheap credit though the overall cost of production remains unattractive thanks to irrational gst , uncertainties in the geo political conditions , and not so favourable international economic scenario . The fiscal policy needs to be tuned a lot more in tune with monetary policy to strengthen the structural weaknesses in the economy to improve employment , lessen inequality , remove corruption , black money and malpractices seen in governance everywhere All said RBI has been found to be very understanding and accommodative but a lot remains to be done to fully exploit the talents , potential resources and achieve the dream of becoming the most advanced economy by 2047. The vision is encouraging and clear but the path has  many hurdles but manageable provided the needed attention and steps are initiated to strengthen the Governance standards. 

(This comment appeared in Money Life against the Article "RBI  rate cut cannot Hide Structural weaknesses " ) 

RBI All support for the economic growth,

 RBI for boosting the Growth 

Kudos to RBI for having shifted its policy (June 6) stance from accommodative to Neutral and providing the much needed accommodative changes in its Monetary policy announcement made on 6th June 2006. Recognising the fall in inflation seen and expected , the need for giving a boost to the manufacturing segment of the economy which is slowing down,  understanding  the issues on account of geopolitical conditions, and appreciating the domestic  the present economic and environmental circumstances, the RBI has reduced the Repo rate by  0.50 percent and CRR by 1% in four instalments to add liquidity in the system and give a boost to credit growth , The relaxation in gold loans is a boon to give an impetus to Financial Inclusion and enhance the much needed relief to the weaker sections and augment their income through incentivised economic activities. The  only pitfall in the policy may perhaps be in the possible  reduction of FD rates for Senior Citizens, but if inflation is really brought down to 3.70 % as  envisaged and the expected growth in the economy becomes a reality, they may have the patience and tolerance to put up. All said the policy is very  motivating in character and  Hope  the Banks  and NBFCs will pass on the intended benefits in letter and spirit and will activate the wings to perform and realise the dreams. 

T V G Krishnan

6/6/25

Well Done RBI. Keep Going Strong.

 RBI Pleases All and Mints its  well deserved  Recognition. 

Apropos the Article “it is not RBI’s job to please All (June 5),  but traditionally , historically and functionally RBI does it’s job efficiently ,  effectively,  elegantly and eminently is a well established truth accomplished and acknowledged  nationally and internationally .The credit for this goes to almost all the Governors  for their wisdom , knowledge , dynamism to understand the multitasks the institution carries and dances to the tunes set elsewhere but maintaining the rhythm and steps perfectly motivating , developing  the human resources  by  providing the needed skill , knowledge, values and the work culture and unique functions unheard of. Though it is generally believed Charity begins at home but RBI pursues a different kind of charity enriching the nation's economy by adjusting to the tunes of the Government in power, and ensuring welfare for all through Financial literacy, Financial inclusion and keeping the country's reserves and resources in tact with value addition and providing the best of financial infrastructure to meet the national and international  viz  political, economic social and technological challenges admirably. The contribution of RBI's Human Resources is by all means unique and extraordinary but alas,  RBI is not allowed to have its way to perform, enjoying its own independence , wisdom and initiative like other Central banks of the advanced countries is perhaps the only black spot which is  correctible and definitely avoidable as like RBI , there can't be any other support institution serving the Governments in power and the nation to the best of its competence and national spirit. 

     

T.V.Gopalakrishnan

( Personal Views)

Bangalore