Why RBI Seeks Autonomy?

On RBI Autonomy: 
Contributed by 
Sri J.N.Shukla/Prayagraj
31.10.2018
My views on RBI given below 

Let us take the controversy over issue of 'RBI Autonomy' as good news.

RBI as Central Bank has failed long back when it's governor Subbarao shut his eyes & ears to how UPA government was extracting Bank finance to unscrupulous elements under dictate, which culminate into disaster.

Through PCA 12 Banks are cut off from business operations. For these banks it's just roll back from banking business msrket. They are forbidden to new lending or meeting the increased credit needs of existing good clients, expansions, hiring etc. It's not that they are recovering, rather eating up their business synergies. Their capitalization is not energizing them.

Earlier, Raghuram Rajan, aware of rotten up situations, directed Banks to clean up their balance sheets, without making any requisite arrangement to deal with the situations and challenges emerging out of his decision. This breed into such gigantic NPAs.

Thanks to government which brought in befitting legal frames to deal with the situations. It is doing well, as per expectations and results are afoot. Had you ever seen a reference of selling properties & assets by corporates to repay Banks dues or any one had escaped away abroad to save skin from harsh legal actions?

 Central Bank should have to synchronize itself with the developmental needs of the country which include due care of financial needs of markets, which bring growth.

I am sorry, some people are swayed by anti govt thoughts, which they shouldn't.

Governor comes & goes, but the gravity of the institution must be maintained and  shouldn't be taken as a toy to play with. RBI is not expected to be casual and callous in its approach towards national imperatives.

In the name of autonomy, operational freedom, no intervention etc. just one can't be free to play with national interests and peoples priorities, to which elected government is responsible & accountable and not RBI.

Regulators are constituted under Constitution with operation autonomy in defined matters & manners, but for rest they are under govt of India. Govt has enormous power to intervene, but hardly it uses.

These days, a bad idea certain Institutional heads are harbouring from the thread they get from judiciary. They see, how higher judicial uncles have established a collegium-read College- to recruit kith & kin of their fellow brothers. Count on tips, hardly 300 families are in league to rule in Judiciary. There is 'uncle syndrome' in judiciary and they all jump with all lock & barrels whenever the rationale of this extra constitunal authority to run 'Collegeium/College' is challenged or Parliament enacted the law to regulate appointment of judges.

Now, call them 'judicial houses', like now people call  'political houses' like of great Nehru dynasty, followed with Mulayam, Laloo, Maya, Mamta dynasties etc. Noble Idea behind this is: if the siblings of the  politicians have their inherent right & place in politics, why not of Hon'ble judges. This harsh reality prevails.

CBI took it beyond in recent past. CBI is premier institution to deal with serious crimes of people above nornal surface. But, it's executives were in disagreement with distribution of booty. Yes, govt functions ceaselessly, without time break. It speaks of zero tolerance, if govt gave marching order to Varma & Asthana.

If RBI gives colours to its failures, it can't be sanctified in the name of autonomy etc. RBI has a very defined freedom of decision. Judges do have freedom to judgement, but they are called upon to honour the right to hearing.

RBI just can't  rule out/deny to listen govt view points in economic affairs. Listening can't be suppressed. It's not autonomy, it is called autocratization & it amounts to authoritarianism, Mr. Governor.
Please don't try to play or prove smart on your failures. There is limit for govt to bear with. Better admit failures, mend your way & approach. There is no bar to freedom or autonomy, but one must behave sincerely and with due diligence. It's government to people's cause.

(J.N.Shukla/Prayagraj/31.10.2018)




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My views published in December 2015

During last five to ten years, RBI officials, Finance Ministers and Pm Of India has several times given a statement that of health of public sector bank is not a matter of concern. From time to time they also give another contrary statement that volume of Non performing Assets (NPA) in banks has been increasing fastly and has gone beyond acceptable level. Many times they have promised to take appropriate steps to curb rising trend in NPA and to improve the health of banks. But unfortunately all these statements were given only to mislead people of India and to hide their evil works. Neither bank officials nor politicians and borrowers want that their bad acts be exposed . It is in their mutual interest to conceal bad debts and thus save corrupt officials and corrupt politicians.

Click link given below to read more

Also read following link published long time back in allbankingsolutions.com

http://www.allbankingsolutions.com/Articles/Articles-DJ-Factors-Affecting-Health-of-Banks.htm

RBI failed to stop fraud and creation of NPA