Reading between the lines of the budget and the economic survey points to a rising tide of discontent with the RBI's rather rigid policies: look for evidence to how the FM is constrained to overcome the RBI through:
a) the setting up a Monetary Policy Committee which might convert the RBI to a think tank specializing in the submission of research to the Monetary Panel status;
b) The proposal to establish an agency which will issue government securities, and maintain and manage the register of holders which will also purchase, re-issue and trade in Government securities and advise the Centre on aspects of contingent liabilities and cash management. (RBI 's Public Debt Management is then out)
c) the proposal to set up a bank for new small entrepreneurial financing bypassing the commercial banking system indicating that banks under the RBI supervision have not been so effective in this socio-economic objective;
d) To implement the Postal Bank concept through the budget rather than applying to the RBI. In fact, the RBI should have taken the lead in granting a banking license to the Postal Wing in the first round of licensing itself as it would have brought in advantages of financial inclusion.
e) the Survey has brought in the issue of restructured assets which verily is a window dressing tactic by the banking sector to suppress NPA figures.
Without any risk or responsibility.
a) the setting up a Monetary Policy Committee which might convert the RBI to a think tank specializing in the submission of research to the Monetary Panel status;
b) The proposal to establish an agency which will issue government securities, and maintain and manage the register of holders which will also purchase, re-issue and trade in Government securities and advise the Centre on aspects of contingent liabilities and cash management. (RBI 's Public Debt Management is then out)
c) the proposal to set up a bank for new small entrepreneurial financing bypassing the commercial banking system indicating that banks under the RBI supervision have not been so effective in this socio-economic objective;
d) To implement the Postal Bank concept through the budget rather than applying to the RBI. In fact, the RBI should have taken the lead in granting a banking license to the Postal Wing in the first round of licensing itself as it would have brought in advantages of financial inclusion.
e) the Survey has brought in the issue of restructured assets which verily is a window dressing tactic by the banking sector to suppress NPA figures.
Without any risk or responsibility.
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