ARE BANK MEN REALLY FOOL?

ARE BANK MEN REALLY  FOOL?

- Necessarily Not,
But Leaders Treat Them So!

ONE may question the expertise of Bank Union leaders, who often make statements on government initiatives towards economic policies, banking, trade & industries etc. In one such a latest statement of a Bank Union leader on 28.8.2019, the RBI decision to transfer Rs 1.76 lakh crore ( of Dividend & Surplus Reserve) to Central Government is termed as 'danger to economic stability'.

Here, let us recall, a Committee under former RBI Governor Bimal Jalan was connstituted to look into RBI reserves, under revised Economic Capital Framework. The Committee recommended to transfer Rs.176051 crore to Government comprising Rs 1,23,414 crore as surplus for the year 2018-19 and Rs.52,637 crore, which the Committee identified as excess provision in Reserve in terms of ECF. The Reserve Bank of India accepted the recommendations of Committee in its Board meeting.

Surplus is always Govt's right as Dividend and in case, excess provision was made in Reserve, it was taken as  wrongful surplus, which Committee recommended to return to Govt. Now, if these amounts are given to govt., how it imperils or endangers the economic stability, as alleged by leader in question, participant when economy needs more mony?

First he says, country's economy is facing turbulance & slow down, secondly he desires measures that boost economy. How, this transfer of money shall precipitate economic stability, as stated by leader? Rather, it would help govt to excellerate public investment to boost sagging economy. Govt decides the economic policy, well that needs more investment and if it is so, leader must know, further pumping Rs.176051 crore would excellerate economic condition or precipitate, as he said.

RBI decides monetary Policies. RBI by it's rules is bound to keep Reserves to a percentage of it's Liabilities. It is taken due care by Committee as well as by RBI Board. Further, why RBI should hold back surpluses, that belong to government? For RBI this is just idle and superfluous money, while for Govt. it's driver of economic fundamentals in the interest of people & nation.

RBI is autonomous, but subject to certain its own Rules under RBI Act. Surpluses are to be transferred to govt. It's RBI rule. RBI decides surplus after taking into account its assets & liabilities. RBI has been doing it very legitimatly every year, having taken due care of monetary policy and required reserves. There is nothing wrong, if it reached to surpluses in FY 2018-19. RBI follows proper accounting procedures and it gets it Balancesheet audited under law.

It's amusing that Paying Dividend or reversing excess Reserve provision is termed as interference in RBI. It's Government right to get surpluses as rightful Dividend. Does it really appeal to sanity to make such baseless allegations in such important matter, where things are well within regulatory framework of RBI & government?

Does he want to say, RBI is not doing it's task, per rules? He must have some sense to be sensible in an issue of RBI prudence.

Earlier, RBI top brasses remained silent, when Banks were under dictate of Chidambram & doing wreckless financing that culminated into 15 lakh crore NPAs. As Regulatory Authority, then RBI top brasses should have woken up and shown their spine. As a leader, he must know academia is different to professional banking. RBI is not an academic Institution, that's why right from Raghu to Urjit and new icon Viral Acharya failed to guide the destiny of  Central Bank, which RBI is. Having accepted their failures, they returned to their home job to engage with old syllabus, which need no further learning.

Had any leader ever spoke against Chidambram, Man Mohan Singh, Raghu Ram Rajan? As far Urgit Patel  was concerned, he was first blamed to be Ambani relative and being Gujarati termed Modi's favorite man as well. Viral Acharya appeared as new God. Banking has no trade Unions, but sleeper cell, act selectively, hardly any concern to nation, people and institutions. For them, nation, people, caste creed, religion, sex, institutions etc are political theme or you can say launching pad to target present government out of hatred and vengeance.

The leader in question failed to read and understand the difference between economic and monetary functions. These are two different parts for two different institutions, i.e. govt & RBI. Being top brass of Union, he should have this knowledge, elementary in nature.

Top leader in question must take note that this is the surplus of FY 2018-19. He is ignorant of prudential accounting norms, that's why he is trying to mislead on plea of future fluctuatiions in securities values. Does he really know accounting? It's just a question, because a knowledgeable person can't sum up the things in such stupid manner.

His statement has lambasted on govt steps in recent past to boost economy. It's not his stand. He is propagating the stand of 'left' and 'left over' bunch of parties, including Congress. Banking fraternity was anxiously awaiting his statement on Chidambaram episode, termed as king-pin of corruption. But he maintained stoic silence, as done by his political masters. He is Trade Union leader from Banking and Chidambram had perpetrated loots and plunders, leaving banks bleeding. Well, they have one task to hate and ridicule Modi and while doing, they don't mind to cross national borders. So the country and people have not to apply their mind what they say. They stand against nation, join enemy neighbors, terrorists, anti nationals and all those who kill our innocent people and soldiers. This is their trade Union line that goes parallel to anti- nation.

It's really unfortunate that in-service Bank employees and retirees are real victim of leaders' such engagements. Instead addressing in- service employees/officers horrible wages & service conditions or looking to pensioners dying under illness and suffering from financial distress for last 25 years, as their Pension, Family Pension Revision or health issues are not attended to, the leaders are involved in political gimmics and acts of buffoonaries. Better, they exercise restrain on these fissiparous tendencies and sincerely concentrate on real issues confronting the vital interest of banks and its working & retired fraternity.

- J. N. Shukla
PRAYAGRAJ
29.8.2019