RBI approach to Monetary policy Be Vigilant and Accommodative.

                     RBI approach to Monetary policy be  Vigilant and Accommodative.

This refers to the monetary policy announced by RBI on the 9th April 2025 in the midst of growing turmoil in the global economy thanks to the jittery and chaos generated by the uncertainties by Mr Trump and his Tariff measures to make America Great Again.  Understanding  the sudden changes seen in global economic conditions and having adverse impact on the  imported inflation front, supply and demand conditions in global trade, and change of position of dollars and Gold as Reserves of world central banks, the RBI has announced its bold monetary policy by changing its stance from Neutral to Accommodative and reduced the repo rate for the second time by 0.25  percent to 6.50%  and expect the MSF and SDF  adjust to 6.75% and 5.75% respectively. However, the GDP growth has been brought down from 6.70% to 6.50% . Though the inflation is stated to be benign as of now and is expected to be under control and within the 4% target , the fact remains that food inflation expectation continues to be a threat and the cost of funds continues to rule high . The widening inequality between the haves and have nots, the irrational rates of GST along with other taxes and levies though expected to soften thanks to the  direct tax reliefs given in the recent budget 2025 26, the cost of goods and services continues to remain very high due to freebies and mis / poor governance and the expectation of high savings, which is unreal. High consumption demands, and increased growth in employment, investment and production seem to be chasing a mirage and for this to be a reality, there is a paramount need to fine tune the fiscal policy with the Monetary policy closely monitored by data collection and effective and meaningful governance. 

      

T V Gopalakrishnan.

 

( This letter sent to Economic Times not published ).

Relate and apply the Great values and Principles of Sanatana Dharma in whatever we do to take the nation forward.

  Relate and apply the Great values and Principles of Sanatana Dharma In  whatever we do to  take the nation forward.Success is sure,  certain and sustainable to enjoy the fruits for all. 

       Let Noble Thoughts and Actions Come from Everyone and Everywhere. 

The PEST (POLITICS, ECONOMICS, SOCIAL ,TECHNOLOGICAL) Control approach seen in vogue now  needs wholesale change and Step by Step movement with a very close and careful monitoring  of every STEP ensuring positive achievement in all areas of man’s progress and accountability to the conscience of 140 and above crores of population. The democracy designed and managed by  Politics, Economics , Social Reforms and Technological advancements keeping in view the welfare of the masses en masse and all living beings and healthy and conducive  environment, universally need to be reviewed and evaluated based on parameters specifically identified . The economic progress,  distribution of wealth and spread of happiness based on health, peace , contentment and environmental conduciveness helping to sustain the well being for all living beings should be the destination of the administration of democracy.     

No doubt democratic path  is an ideal one worth strengthening keeping the faith of all faiths intact and in enviable harmony. The multi religious, multi linguistic, multi culture naturally leaves multitasks to the authorities to achieve the single objective of welfare for all itself is an herculean task with multiplicity of challenges amidst acute poverty, illiteracy, high inflation. laxity in infrastructure, widening gap in the inequality levels in the distribution of wealth generated etc. These limitations  in fact are to be taken as the best of opportunities to reform and perform.        

The democratic system runs with the active support of three main pillars Viz  Legislative, Judiciary and Executive complementing and supporting each other need to be within the broad contours of our highly respected and regarded as the last word in the philosophy of Life i.e. Sanatan Dharma. All the three should be above suspicion and their integrity , commitment, and earnestness to provide welfare, justice, equity and  equality for the humanity as a whole irrespective of language, race, religion or any other sentiments should be foolproof and acceptable to all without any reservations.      

Politics and politicians devoted to national developments cannot be outside the principles of Sanatan  Dharma. Love the nation first and love the living beings, their culture, ancient civilisation and understand the heart and soul of every one,  the county and the entire universe.Get fully convinced that Sanatan Dharma is the code of conduct to be pursued by one and all and all Associated with national development and warfare of all living beings in the entire universe.  

 To quote from “Light of Truth Page 305”(Swami Dayananda Saraswati)

 

“ Those endowed with Sattva attain to the state of the learned, godly men. Those who are possessed of Rajas, become men, while those immersed in Tamas fall into the conditions of lower orders.”   

Manu describes

 

“The possession of true ideas by the soul is declared to be an Indication of Sattva. Ignorance betokens Tamas . Passion of love and hatred signifies Rajas. These three attributes i.e. Sattva, Rajas, and Tamas of the Prakriti are to be found in all things.”

“When a man feels that there is tranquility, peacefulness, and contentment in his mind, and also also his soul is pure as the purest light, let him know then that Sattva predominates; whilst the Rajas and Tamas occupy a subordinate position. “ 

“ When the soul is unhappy, has no peace of mind, is restlessly engaged in the pursuit  of sensual objects, let him  then know  that it is the Rajas that predominates , whilst the Sattva and Tamas are suppressed. “

(page 303 Chap IX) .

Is it not Ok to understand the above essence of Life values and attempt to bring reforms in our day to day Administration and enhance the quality of Life for all Living beings and our environments?

The three main pillars of Democracy Viz Legislative, Judiciary and Executive which bring strength, vigour and dynamism need to  adhere to the principles of Sanatan Dharma in letter and spirit so that the performance and achievements fulfil and satisfy the aspirations of the 140 crores of people without leaving any room for grievances and complaints. Corruption and corrupt practices if minimised or avoided fully in terms of the  code of conduct spelt in Sanatan Dharma can pave the way to put the economy on the right track of growth with equitable distribution of wealth and achieving  equality of social justice to all.Reform the educational and administrative system in such a way that the values highlighted in the Sanatan Dharma become part and parcel of our day to day life and culture. If there is a will there is always a way to achieve whatever we want. 

"Let the Pillars Of Sanatana Dharma form the bedrock of a Prayerful, meaningful existence,, with the awareness of divine interconnectedness of absolutely everything in nature so that we speak our words carefully, use our resources judiciously, to help ourselves and others be grateful for the infinite blessings in our life."

  Bhagavat Gita

Loka Samastha Sukhino Bhavanthu. 

T V G Krishnan

(Personal Views)

Make the Democratic values ideal and memorable. Remove all Freebies.

 Kill the Culture of Freebies , enhance the dignity and quality of Life . Make the democratic Values ideal and memorable. 

Apropos your your editorial How to get broke by freebie-ing Away (March 12), It is time to seriously introspect and consider taking some concrete and sensible steps by all  matured political parties , the bureaucrats, the judiciary and the sensitive organisations like RBI, banks and supply chains involved directly or indirectly in the distribution of freebies at the cost of fiscal discipline and electoral values.  Having adopted democratic values and principles, is it not time  to arrest once for all the freebies culture and save the democracy and the economy from catastrophe. No doubt, this freebie culture not only kills the initiative and work culture but also kills the economy, the enthusiasm of the people and spreads wrong tendencies and attitudes taking away the very charm of hard work, enjoying the rewards for hard work, nurturing all unhealthy and corrupt practices in the very democratisation of election and election processes, thereby distancing many  who are earnest , honest  and committed to be behind the democratic way of taking the nation fast forward, thereby increasing the percentage of absentee voters and voting for none among the contestants.  To make the nation democratically, politically strong, the economy fast growing with all its tremendous potential, socially vibrant and enlightened, technologically a leader of the world, the electoral reforms and election processes need a thorough change without any scope and hope for freebies and their bad effects .           

Loka Samastha Sukhino Bhavanthu. 

T V G Krishnan 

( This letter sent to ET not published.).

 

Lapses in regulation and Supervision erode Trust.

Happy to observe that the author has been tirelessly and vigorously pursuing and fighting as a watchdog to secure the financial system in general and the banking system in particular in public interest to safeguard the stakeholders heavy stake in them as depositors and otherwise . Failures in banks and frauds in banks unfortunately continue to be a regular feature and the stake holders of the economy bear the brunt and depositors of the banks bear the maximum . The coverage of loss of deposits of Rs 5 lakhs by DICGC is a pittance by any reckoning and this cannot be even treated as a relief and safety standard for banks to maintain themselves financially stable and sound . The need for strong regulation and very effective and meaningful supervision independent of political interference in banks particularly cooperative banks is urgent and paramount and the TRUST in Banks and RBI’s supremacy in Regulation and Supervision needs to be reiterated and well established to make the Financial system very strong and supportive to develop the economy fast as envisaged

Loka Samastha Sukhino Bhavanthu.

(This comment is Published in Money Life in response to the Article on New India Coop Bank Ltd Fraud  Feb 28.2025)  

Why Not Family Businesses form Partnerships with other Businesses

 Dear Sir,

Why not  Family businesses form  partnerships  with other Businesses ?

Apropos your editorial , Fresh, New Species of Animal Spirits,(ET 22nd Feb), the need of the hour is definitely to kickstart the economy with all possible Animal  Spirit not only from  existing Family businesses but also developing new families into businesses through encouraging Private Equities  and Start ups by highly skilled professionals from in and around the world. The potential of the economy is so strong and vast , but unfortunately, the animal spirit required to exploit the resources and encash  them through intensive capital and labour oriented physical production of goods and services by enhancing manufacturing activities apart from providing services to satisfy the global demands of all goods and services  keeping the dream of making the economy an advanced one by 2047 is found missing and elusive. It is time for Indian family businesses to identify areas to partner with other entrepreneurial talents and scattered equities  around the world and exploit  fresh business opportunities and give a boost to the economic growth envisaged and make the dream of an advanced economy by 2047 a reality. Opportunities for such joint ventures are plenty and need to be fully encashed benefiting the entire economy and the nation. 

Let there be prosperity all around the universe to make life comfortable and enjoyable for all.         

T V G Krishnan. 

Bengaluru .

( Letter sent to ET but not published. )

ENHANCE THE STATUS OF GST AS THE MOST ACCEPTABLE TAX.

 .GST collections show economy on the mend (ET 2/3/25).

Instead of developing the GST as a goods and services tax to augment the resources of the Government in an irritating manner, is it not better to enhance the status of GST as the most innovative, wonder, equitable and justifiable tax of the Nation enjoying its acceptance and 100 percent compliance . As the honourable PM commented, make it GOOD and SIMPLE TAX literally. The need to  augment revenues for all round development of the economy and welfare of the masses is understandable by all interested in the rapid progress of the nation and THE PEOPLE SEEM TO BE  mentally and emotionally prepared to cooperate and fully comply with the authorities and their requirements.  Making it complicated and discouraging through high rates  without bringing in any value addition in terms of bringing down the widening inequality, simplifying the very and various types of tax structures etc brings only anti climax to the tax system. Simply aiming at  augmenting revenue through all possible ways including GST has a cascading effect on inflation, cost of production , cost of living , ease of doing business and demotivating all interested in the business , economy , nation, politics  and democracy, both Central and State Governments . Earlier this truth is realised and acted upon sensibly and wisely, the better for the Govt , the people , the economy and the nation . The need is, reducing the number of taxes, augmenting Government's revenue, freeing  the Government from the burden of freebies, making 140 crore people as contributors to nation building by happily participating , cooperating and complying with tax requirements and taking the nation forward through  all round economic progress by optimally utilising all the resources at our command . After all , the need is to have a comfortable, peaceful, safe and  happy life enjoying the blessings of nature and  benefiting from the prudential use of the natural  and human resources. Tax cannot and should not act as a burden but should definitely serve as an agent of dependable source of support to ensure the well being of  all living beings.          

Replace all other taxes by reforming the GST and reduce inequality gradually and systematically. Less the number of taxes, more the acceptance and better compliance .  

 

THE WHOLE NATION IS VERY KEEN TO WATCH THE ECONOMY PROGRESS FAST AND REALISE THE DREAM OF REACHING ADVANCED STATUS BY 2047 AND FOR THIS WHAT IS NEEDED IS SIMPLE , AFFORDABLE , FULLY CONFORMABLE AND HAPPILY ACCEPTABLE TAX STRUCTURE BY ALL SEGMENTS OF THE PEOPLE AND BUSINESSES. GST CAN EMERGE AS A WONDER TAX AND BE THE MOST INNOVATIVE INVENTION OF THE NATION AND THE PEOPLE OF INDIA. 

 

LOKA SAMASTHA SUKHINO BHAVANTHU. 

T V G KRISHNAN

14/2/25.

 

                                     Need serious Introspection.

This refers to your editorial Rate Cut Helps, but growth pangs Linger ( ET dated 9/2/25). Despite giving tax relief to the middle class through the Budget of the GOI, and a rate cut in the Repo rate by 0.25% by the RBI in its policy rate, the public sentiments including market sentiments remain depressed  should be  a matter of serious concern for the policy makers. Unfortunately neither the fiscal policy nor the monetary policy find measures to give the much needed boost to kickstart the economy and provide animal spirits to go in for enhanced savings, massive investment, production , intensive employment etc. The major ills which continue to plague the  economy Viz high food inflation, widening inequality,, reluctance to provide the wage increase as suggested by the economic survey, ever increasing cost of production and cost of living thanks, to high interest rate, corruption, black money, some bottlenecks created by the irrational GST, laxity seen in the ease of doing business due to excessive regulatory requirements, and meaningful governance effectiveness affect the production, demand, pricing,  supply and other logistics involved. Even the very sentiments of the people to lead a peaceful, comfortable, affordable life seem to have  been adversely affected for reasons beyond the finance needing psychological,  infrastructural ,social  and technological change in the day to day life.Added to these, the  uncertainties and risks in Geo political scenario also seem to be depressing. Time to introspect at all levels of Legislation, Execution, Judiciary  and show the highest level of wisdom, knowledge, professionalism ,compassion, empathy and a very pragmatic approach to deal with economic issues keeping the ethical values in tact. What we need is good economics and equally good politics to keep the people motivated and realise the dream of an advanced economy by 2047.     

T.V.Gopalakrishnan

Bengaluru 

( This letter was sent to ET)