Why not regulate the farm lands and find lands for eco social development?

The land mafia is very active in many places and are able to acquire land from farmers and develop  these  as Farm land clubs  perhaps with  the active involvement of politicians, business men , thugs , goondas and black money holders. They acquire farm lands in bulk from farmers and develop them into clubs, convention centres and what not? They have enough of land and if the government is seriuosly after them, the required land for economic development would be available in plenty. The loss of agricultural production due to such acquisitions  to the economy and the farmers is substantial and the conversion of such lands into  residential plots to amass wealth has been a business in and around major cities.The so called farm land club owners  dictate terms to the plot owners as if there are no laws in the country to be complied with. The urban middle class and those who are neo rich get tempted and purchase such plots and the financial savings which otherwise would have gone  formally to  the Financial system get vastly diverted. The loss to the economy is considerable  in terms of loss of financial savings, loss of agricultural production , generation of black money and degeneration of ethics and values in the society in different ways. It is time seriuos attention is paid in the area of acquistion of huge parcels of farm lands by land Mafias operating in and around major metropolitan centres. It has become a major buisness to amass wealth through extraction  and extorttion of money from  people in the name of social development with social clubs, restuarants , convention centres, marriage halls etc and multiplication of investments.There seems to be no law operating to regulate the land mafiaa and farm land clubs. 

Dr T V Gopalakrishnan

Dr Rajan at the Right place at the Right time

The author has some axe to grind and he thinks that by just cutting the RBI policy rates,the economy will revive. It is nothing but absurd and reflects only on intellectual deficit to assess the over all position of the economy. The infrastructural bottlenecks, like power, land labour and capital which attract investments has been lagging behind in the economy and dirty politics pursued by the opposition without seeing the rhyme and reason to pass certian essentail bills like Land and GST has  an adverse effect to push the economy.The interest rate cut is insignificant in the over all costs and other supporting systems required to revive the economy. Why not the author do something to get rid of the inherent weaknesses seen in the bankning system which is driven by political aspirations, financial loot through Non performing loans, etc. It is easy to blame Dr Rajan who has been doing an excellent job in the interests of the economy and its people. For Dr Rajan this job is a challenge and not a necessity. He has a vision and a misson to achive for this great nation and Central Bank is the most appropraite place for him. Mr Modi will be the most happiest person on Rajan's achievements and performance as his dream of having ache din for all can be realised only through people like Dr Rajan. 

Dr. T.V.Gopalakrishnan

(This comment is given in eET dated 12/09/15 against the article  biggest threat to Modi's threat to ache din is Dr Rajan)  

Pension Updation How long to wait?

RBI maintains its professional standards in what ever it does and it is well acknowledged world over. Though it enjoys autonomy or not it carries out its functions professionally and not getting influenced by external pressures particularly from the Government. However, the bureaucracy which is unable to digest the RBI's professionalism and the Recognition it gets both from the Country and abroad, is creating uncalled for and unjustifiable problems by exercising some powers over the internal matters of RBI particularly in the management of human resources. The RBI employees emoluments and perks need a clearance from the bureaucracy which has no rationale what so ever. Its retirees pension updation has been withheld by a speaking order or so although there is a clear understanding and written agreement to the effect that pension can be updated on par with Central Government employees pension and as and when RBI serving employees salary gets revised. This has not been implemented since 1997 as some bureaucrat has stopped it although RBI does not need any assistance from the Government for paying its retirees their dues.Unfortunately, retirees lead a pathetic life as their pensions have not been updated for almost two decades on flimsy grounds...

Dr T V Gopalakrishnan

(This comment is in response to an Article by Dr Tarapore that appeared on the Free Press journal)

Take care of the depositors who support the economy

The banks act smart and the borrowers act smarter and the authorities both the Government and the RBI squeeze the tax payers and the depositors respectively as they have no voice or representative body to fight for them. Only crying baby will get the milk is what is evidenced the way the authorities act. The Reserve Bank cut its policy rates three times by 0.75 basis points in all as per the demands of the Government, and the borrowers in particular but the banks hoodwinked both by cutting the rates by just 0.30 basis points whereas the deposit rate has been cut more than by 1.25 %. The NPAs have increased by manifold under the cover of economic slow down and the defaulting borrowers have their own ways and means to evade and avoid payments to banks and their representative bodies like FICCI, CCI, Exporters Association and other business cartels make a hue and cry for reduction of interest rates and do nothing to bring down the NPAs of banks. Unfortunately the tax payers and the depositors bear the brunt and are made to support the economy. While depositors have to pay Income tax on the reduced interest earned on their fixed deposits, the tax payers have to contribute to the capital of banks through budgetary resources. The depositors particularly retirees who depend on the meager interest payments from banks have noother avenues what so ever to make better returns without risking their hard earned savings. The insurance coverage in banks is also a pittance of Rs one lakh fixed in early 1990s without any change what so ever afterwards. Depositors particularly senior citizens are being taken for a ride by the authorities and their survival is becoming increasingly difficuly day after day. It is time the Government and the RBI in particular keep a very close watch on Banks functioning and see that they take care of depositors with whose money they are in business.

 Dr T V Gopalakrishnan             

PSBs need change of outlook and enhance efficiency

 The banking is in a mess and the recent   measures of the Government under Indra Dhranush   to reform the public Sector banks cannot be a remedy to make the PSBs perform professionally, viably and rescue the economy from its paralytic condition to say the least. The Governor’s  point   that the time for incrementalism is past and could well allow a potential crisis to morph into an actual one needs to be viewed seriously and actions initiated with right earnest to improve the health of banking which is critically ill and suffering from various weaknesses. right from absence of adequate human resources to financial capital. The reluctance to handle the government schemes like Jan Dhan Jojana emanates from lack of vision on the vast business potential in the offing in different ways and the indifference to such schemes citing non viability and demanding compensation. The problems of PSBs are human resources and the professionalism in handling the business in a competitive environment where payment banks, small business banks and private sector banks are becoming order of the day and are enhancing their presence. The only way for psbs to survive in business is to qualitatively improve its human resources potential and find ways and means to enhance capital, expand business opportunities and handle assets portfolio on  commercial lines and improve profitability by bringing in utmost efficiency in the management of balance sheets.

 Dr T V Gopalakrishnan      .

Ever widening inequality

A well presented article on a topic which has been missing a serious debate and follow up action. The gap between haves and have nots has been widening very fast with the full knowledge of our politicians , buraucrats , academicians and thinkers. The way policies are enunciated and implemented give an impression that this society does not have any  poverty and by and large all families are well placed financially. The gap between the rich and the poor widens fast and the reasons are not far to seek.The taxation policy pursued is the culprit behind ever widening inequality. A person earning a salary of Rs 3 lakhs has to pay Income tax @ 10 % whereas a person earning a dividend of Rs 1000 crores need not pay a single paise tax. Similarly a person who earns a minimum wage of Rs 100 a day has to maintain a family of three or five members where as  an industrialist , a bureaucrat , a politician, a self employed professional like Doctor, advocate, chartered accountant, real estate broker, share broker, a whole sale merchant ,or a luxurious car dealer earns in lakhs and crores and most of their expenditures including family maintenance are accounted for in such a way that their earnings are fully saved.Here opportunitoies are made to make the rich richer and the poor poorer and wonderful interpretations and explanations are widely publicised to conviince the poorer that good days are ahead for them what ever may be the policies pursued. This has been going on for decades and the black money generation through all mal practices knowingly or unknowingly allowed to be perpetrated have helped the rich to widen the gap beyond recognition or noticeable level. It is high time a debate is called for as rightly suggested by the author involving all serious thinking politicians, academicians, social reformers and all well wishers of the nation and its people.   

Dr T V Gopalakrishnan

(This comment is given in Business Standard).

PSBs and Indra Dhanush

High sounding jargons and words are no doubt  soothing to the ears and can be a boost to capital market sentiments  but the PSBs performance  based on the Indra Dhanush ie  seven prongs – appointments, bank board bureau, capitalisation, de-stressing PSBs, empowerment, framework of accountability and governance reforms is not guaranteed as long as the  Human Resources issue which is a major risk right from top to bottom  faced by the banks now is not adequately and quickly  addressed. 

Appointment.

This is a major risk the PSBs face as the Boards of PSBs as of today are neither professional nor committed  nor accountable and knowledgeable. The selection of Directors to the Board leaves much to be desired. Directors require thorough knowledge of banking business along with the skills to develop business with an understanding of the Economy, the risks that can emanate from the Government Policies, Regulatory Prescriptions, the linkages with the  international economy and the changes that can have a bearing on the operations of banks , technological advancements and the need to ensure close compatibility of the human resources skill and the technology on an ongoing basis etc etc. Any Tom Dick and Harry cannot find a place on Banks boards. Who will ensure this in our scheme of things where the Government, the bureaucrats and politicians have a say always and everywhere directly or indirectly in the functioning of banks. Appointment of Auditors is equally  crucial as they decide how the balance sheets of banks should appear and decide as to how to project the assets and liabilities camouflaging many items in consultation with the Board or the key person identified by the Board.

The top management, middle management and Human resources at all levels need lot of exposure, knowledge, experts in specialised areas like Forex, derivatives treasury management, Credit portfolio, Asset Liability Management and Risk management etc. The tendency to save costs on training to HR is a major casualty in Banking  and even the regulator seems to have ignored this aspect with the Closure of  the Bankers Training College. This has badly affected the transmission of Monetary Policy and the over all working of banks. It is a surprise to observe that many employees even do not know the existence of the RBI leave alone the regulatory role of RBI, ist role as  monetary authority etc.  This has already impacted the working of banks to a great extent.   

Bank Board Bureau:

The Constitution of the Board and the mode of Selection of the Board Members and its distinct Role to enhance the improvements in PSBs functioning is not very clear and convincing.

Capitalisation:

The present approach to capitalise the banks using Budgetary resources is highly questionable. The banks should generate reasonable profits to enhance capital and minimise the capital requirements  by minimising the risks through risky and sticky advances and investments. Here  the professionalism natters a lot. Banks should know how to conduct its advances portfolio and should bring the envisaged discipline on the part of the borrowers and the banks themselves. Rating of borrowers and levying of penalty for misconduct in the utilisation of banks funds need to be seriously viewed and made a  punishable offence. Capital infusion if at all found essential it should be linked to the performance of Banks Boards, Top management and the contribution that the banks make towards credit expansion, financial Inclusion, agricultural expansion, industrial growth,  support to exports  etc. Norms need to be fixed before induction of tax payers money.RBI's rating and opinion should be sought before providing additional capital .

Distressing PSBs and empowerment.

The interference by the Government Banks Bureau and the regulators should be kept to the barest minimum. This is easier said than done. 

Frame work of accountability and Governance Reforms.

Need proper definition, implementation and periodical examination by an agency taking RBI into Confidence. Can this happen in our set up? 

Dr T V Gopalakrishnan