Regulatory Issues Not that easy to Solve

The article reads well and has brought out some of the inhibiting factors in the effective regulation of the financial system by sighting poor legal design, systemic problem, lack of autonomy, and auditing a regulator.As long as the Govt has some designs as to how the various markets and institutions have to be run partially to satisfy the political agenda,one cannot expect to have a perfect regulatory mechanism to regulate the financial system. The Govt wants in built flexibility in any regulation and that affects the Institutions' functional autonomy. The so called operational autonomy autonomy is always dependent upon the person who heads the institution and for how long?The FSLRCS recommendations, however, need to be publicly and thoroughly debated as there are lot of conflicting regulatory interests which can precipitate and take advantage of regulatory gaps.The gaps can result in some catastrophe.

Dr.T.V.Gopalakrishnan 

This comment appeared in Busines Line dated 9/4/13 in response to an Article 'We need a unified regulator'.

E Currency and Central Banks

E currency cannot make Central Banks powerless provided their information system to capture the money supply is sound enough. The data integrity and the speed with which the information flows to Central Banks are fool proof, the e currency will only enhance the efficiency of Central Banks. The payment and settlement system if well regulated and captured by the Central Bank without any leakage, the monetary control mechanism can be made more effective and meaningful. In India, the problem is, it is cash oriented economy and mixing of black money takes away the Central Banks monetary transmission mechanism. The simultaneous existence of formal economy and informal economy renders it difficult to assess the money supply position for the Centrals Banks, where as, if there is only e currency, the Central Banks can have an improved mechanism to pursue their policies in a much better way.

Dr.T.V.Gopalakrishnan
(This comment appeared in Times of India against the Article E currency can make Central Banks Powerless) 

Coin shortage.The need for coin collecting machines

The problem of change for free exchange in transactions is perennial and despite best of efforts from the RBI, no solution is found.One way of solving this issue perhaps is to consider having coin taking/ buying machines in all malls and major hotels where people frequently gather and spend their money and time. In every house, there is accumulation of coins irrespective of its family members financial position and these coins can be deposited in coin accepting machines against a receipt. This receipt can be exchanged for goods and services there itself.Such arrangements are found and very common in some advanced nations.Nothing wrong if RBI considers such move to tackle the problem of shortage of coins.

Dr.T.V.Gopalakrishnan

( This is in response to write up Traders feel shortage of small coins appeared in The Hindu dated 5/4/13)

Builders Selling Car parks not legal.

	''This is an excellent judgement given by the Consumer forum. Builders are exploiting the hapless buyers of flats by all possible and unimaginable ways. The builders have introduced all sorts of unethical practices and there are no ways of fighting them then and there. They quote some price and subsequently levy additional charges in the form of maintenance expenses the details of which are not made available. They add all sorts of capital expenditures incurred by them to the maintenance accounts and in case some one questions, they are threatened with all their power. Even Corporates Builders who enjoy a good reputation in the market do resort to all unethical ways of accounting hand in glove with their accountants and auditors. Even the Corpus funds collected by the Corporates are diverted for their other units as working capital and the details of interest if any earned are not made available. It is time some regulation is introduced to ensure that the corporates maintain proper accounting of their housing projects and their accounts are audited as per the rules and details made available to the prospective buyers of flats.''
	This comment is in response to an article 'Builders can't sell flat's parking space separately'' that appeared on Times of India dated 4/4/13.

Politicians,Bureaucrats and India's talented Human Resources.

Indians are talented, very resourceful. industrious and competent. They have fantastic ideas to take the country to any level. But what the political system and the bureaucratic system have killed the economy and the enthusiasm of the people is what is not understood by our  people and rulers. They have encouraged corruption, black money, nepotism, inefficiency, sycophancy and spoiled the mood of the people and made them to think that the country has no future and spread negativism. We have wonderful laws but implementation is based on the need of the politicians and bureaucrats to harass innocent, honest and ordinary people who makes some voice against the wrong doings of the Govt. Have any politicians except a very handful of them thought about the damage they have inflicted on the economy and its people. Have they really assessed what are the economic Conditions of the majority. Have they got any real statistics to identify who are really rich and who are poor? Making rhetoric observations can impress for some time but as the saying goes one cannot fool every one every time. Dr.T.V.GThis is in response to Rahul Gandhi's address to CII on the 4th April

RBI and Exchange Rate

RBI has been found very cautious in maintaining the exchange rate stability but its hand are tied and cannot do much to improve the fundamentals of the economy which are dependent on the administrative action and economic reforms from the Govt.GDP growth Inflation Fiscal deficit, and Current account deficit etc are on the wrong side and RBI has been doing its best to pep up these but nothing happens from the Govt side. With all handicaps, the stability of the rupee in the range Rs 53-54 will hope to be maintained as per the economic data.  Dr T.V.Gopalakrishnan (This comment appeared in et dated 2/4/13 in response to anarticle India facing the rupee dilemma)

Dynamic Move of RBI

 This is unbelievable. A most Conservative institution bringing such dynamic changes in tune with the times is most welcome and at this rate wonders can happen in the economy. Of course as far as safety of banking is concerned RBI's conservatism should continue.Dr.T.V.Gopalakrishnan(This comment appeared in Times of India  in response to the article RBI Offers its officers flexible working hours Times dated 2/04/13.)