1056 Tirumala Tirupati Devasthanams Executive Officer seems to have acted inaptly and imprudently in depositing Temple Funds with Private Banks

Here is a Times of India News Report which indicates that Tirumala Tirupati Devasthanams (TTD), Tirumala, deposited Rs. 1,000 crore (RS. 10 billion or approx. $200 million) with a Private Bank by name IndusInd Bank, tempted by an additional interest of 0.33% p.a. offered by them when compared to Public Sector Banks like Andhra Bank and Vijaya Bank. This act of TTD and its E.O. appears to be an imprudent step. First, I shall provide a link to the Times of India News Report: Click here to go to https://timesofindia.indiatimes.com/city/vijayawada/ttd-dismisses-charges-of-bank-deposit-scam/articleshow/63586776.cms. The Report has also mentioned that the TTD's Executive Officer, Shri Anilkumar Singhal has justified his action. Here are quotes from what Shri Anilkumar Singhal was reported to have said:

TTD executive officer, Anil Kumar Singhal, condemned the allegations. Singhal, addressing a media conference here, on Monday, said that the TTD is following guidelines given by state and Union governments in depositing temple money in banks.

Singhal said that the TTD had called for sealed bid quotations for depositing its money in nationalised public sector, as well as private banks, according to the directions of the investment committee. Officials who opened sealed cover quotations sent by banks on March 24, 2018 had asked the banks to revise quotations with best possible interest rates by March 27, he said.

“We have deposited Rs 4,000 crore acquired through interest in various banks, in which Rs 3,000 crore were deposited in public sector banks and Rs 1,000 crore in IndusInd bank, which accepted to give 7.66% interest per annum,” said Singhal.

The TTD has deposits of Rs 10,589 crore in various banks as of now, and every transaction is done transparently following guidelines, he said.

ybrao a donkey's personal views which are not intended to be imposed on others. No love or hatred towards any individual or institution. Exceptions: Atheism and Marxism.

"That the TTD is following guidelines given by state and Union governments in depositing temple money in banks." cannot be a reasonable explanation, which can be given by I.A.S. Officers. Reason: I.A.S. Officers are supposed to be Cream of the Intelligent brains in India. They are supposed to guide even their Superior Bureaucrats and Politicians, when they go wrong (pramAdO dhImatA api-- English: Even brave and wise persons can accidentally go wrong). And these suggestions of Prudence are to be given by IAS-IPS-IFS-IRS Officers, irrespective of the consequences they may face, in case bosses get annoyed. The IAS-IPS-IFS-IRS Officers are not glorified Clerks. At the same-time, they cannot disobey their bosses continuously. That means, they have to bring facts, possibilities, and consequences to the notice of bosses, and in spite of the subordinates' suggestions if the bosses persist with their wrong Orders, the Subordinates may have to comply with as long as the Orders are reasonable, not against Natural Justice, not against Laws, and not Unconstitutional.

Question: Why depositing Public (Government, quasi-Government, Fiduciary and Trusts etc.) Funds with Private Banks can be dangerous?

Ans: When Banks burst/broke (this has not happened in recent years in India, but still it is possible. Nothing is impossible), the Deposit Insurance Protection available to Depositors is Rs. one lakh (Rupees one hundred thousand only_. This 100,000 Rs. is total amount indemnified for all deposits of the customer with all Banks put together. That means, if two Banks become bankrupt, the Depositor cannot get protection of Rs. 200000/-. His total cover will be limited to Rs. 100,000/-. This protection will be available only when the Bank involved pays the Insurance Premium regularly to the Deposit Insurance Credit Guarantee Corporation. This DICGC seems to have become somewhat inert, as some banks seems to have stopped paying premium and taking cover. This Rs. 100,000/- limit is applicable both to Private Banks and Public Sector Banks.

However, in respect of Public Sector Banks, there seems to be a 'maDi guDDa (Engl: Sacred cloth used in some Indian Homes for Worship purposes, and is not touched or allowed to be touched except during worship.), or 'siggu biLLa' (a peepal-leaf-shaped silver ornament worn by babies, particularly female babies, as a sort of cover for their private parts to hide from the glare of visitors).

What is this sacred cloth or modesty plate? Ans: A hope of some believers, and a promise by Finance Minister in Parliament, that Public Sector Banks in India will not be allowed to go burst. That means, if Public Sector Banks face difficulties, either RBI or the Govt. of India is likely to come to their rescue. Though a Finance Minister's Assurance is not written Law, for the time being it will be like a log of wood for a Depositor floating in a Sea of Hardships.

Will Govt. or RBI come to the rescue of Private Banks, Foreign Banks in India if they fail?

Ans: There does not appear to be any legal obligation either for the Government or for the RBI. Private Banks and Branches of Foreign Banks operating in India, come under the category of Scheduled Banks. As per the Banking Regulation Act, they maintain some Deposits in Current Accounts with RBI, called 'CRR'. RBI may allow the Banks to withdraw these moneys intended for CRR. Similarly, Scheduled Banks have to maintain some Term Deposits/Approved Securities / Government Bonds with Approved Institutions, total of these being called 'SLR' "Statutory Liquidity Ratio". When Banks face difficulties, RBI may allow loans against the SLR Securities / or allow Repurchase-Resale (popularly called Reverse REPO and , REPO). Under ordinary circumstances, these may be sufficient for Banks to tide over funds crunches / crises. Suppose the Liabilities (Deposits from customers are also liabilities) of Banks become an unwieldy and too-much-of-a-burden, will RBI support, beyond what are permitted under-against CRR and SLR. This has not been adequately tested. We have to wait and have a taste of it.

Question:Will High Courts and Supreme Court direct respective State Governments or the Union Government to come to the rescue of Depositors?

Ans: Though inspecting and supervising all Scheduled Banks in India (all-- private banks, Public Sector Banks, Foreign Banks operating in India, some Co-operative Banks), is the right and the responsibility of RBI, to ensure their health, it is not clear how far RBI can be made accountable or liable or responsible for lapses of its Officials. This has not been sufficiently tested in Courts.

Though Sahara is not a Bank, SEBI and Supreme Court seem to be doing an impeccable job in protecting the Indian Public. Similarly, in case of Agri Gold Scam, Andhra Pradesh Government is selling some assets and making some payments to depositors under directions of AP High Court. A similar instance is yet to arise in respect of Private Banks in India.

Question: In various State Level Bankers' Meetings, the Hon. Chief Minister of Andhra Pradesh threatens Public Sector Banks that AP Government will direct its Departments/Corporations to withdraw their deposits from Banks which do not lend as per the Government's Expectations. Though, strictly, TTD is not a Government Organ, did the Chief Minister exert his Policies on TTD, so as to make its Executive Officer to divert some funds to the Private Bank i.e. IndusInd Bank.

Ans: It appears to be so. But Mr. Naidu appears to be busy with his travails on Special Status and Special Packages, Utilisation Certificates issues with the Centre, and the Parliament. He may not have that much of time. But, somebody from CMO (Chief Miniser's Office at Amaravati) might have used his sly hand.

Incomplete. To be completed and corrected soon.

982 The words of our Rulers cannot / may not have to be taken literally. If anybody takes them literally, they may be cold-shouldered without being told that they are being sidelined, and of course, reasons will not be informed.

In my mother tongue- Telugu language spoken by 100 million people across the world, there is an adage "ADu vAri mATalakU arthAlu vErulE. avunanTE kAdanilE. kAdanTE avunanilE. Approx. Engl: The meanings for the words of Ladies will be different from their apparent tenor. If they say 'yes' it means 'no'. If they say 'no' it means yes. In this adage, there is no gender bias. The maxim arose from murmurs of love, and are not intended for serious consumption. This adage was also used very effectively as a song in the Telugu film of 1950s, 'missamma'. That song I shall give at the bottom with its approx. English meaning. The purpose of quoting the proverb, and the film song of 'missamma' is to extend the depth and purport of its meaning to Public Administration, and Politics. We can have a new adage "pAlakula mATalaku arthAlE vErulE. approx. Engl. The meanings of the words of the Rulers will be difference from their face value. Appearances can be deceptive.

Context:V.K.R.V. Rao Memorial Lecture at Bengaluru. Relevant links

Click here to go to http://economictimes.indiatimes.com/news/economy/policy/speak-your-mind-dont-just-endorse-official-lines-chief-economic-advisor-arvind-subramanian-to-experts/articleshow/58631014.cms. Subj: His perceived Experts' bluff for "falling over backwards" to justify an official decision, which denies the government high-quality inputs, saying they should be consistent in giving feedback towards policymaking.

What Mr. Arvind Subramanian, India's Chief Economic Adviser, is reported to have said:

What CEA said	yb-donkey
"...On the domestic side, there is a clear relationship between expert analysis and official decisions. Before policy decisions, the expert analysis is often illuminating. But once the decisions are taken, it is truly striking how the tune and tone of the analysis change. Analysts fall over backwards to rationalise the official decision ..."	Post demonetization, only two Economists are left in INdia. 1. Hon. Prime Minister. 2. Hon. Finance Minister. Others are virtually intruders, or 'unwelcome guests'.
"...Yet, instead of criticising the official decisions, as consistency would demand, analysts found ex-post logic to attribute merit to these decisions. That is, far from criticising the central bank for holding rates constant over the past three announcements, analysts praised the policy stance as prudent and helpful in boosting the credibility of the inflation-targeting framework ..."	Our CEA seems to have clearly understood the expectations of our Hon. PM & FM., who want the Experts to criticize RBI. The CEA is trying to 'drill' that message into the minds of the 'Experts', who have already apparently understood the message, and are trying to re-sculpture and re-tune themselves.
"... My claim is that experts often hold back their objective assessment. Instead, they censor themselves, and in public fora are insufficiently critical and independent of officialdom, whether the officials are in Mumbai or Delhi. To the extent they offer criticism, it is watered down to the point of being unidentifiable as criticism ..."	Survival Method. Rex Non Potest Peccare. The king can do no wrong.
"...If you ask them, they would say they are just trying to be 'constructive'. But I feel something else is at work. For a variety of reasons, experts feel the need to stay on the right side of power -- whether the RBI or the government..."	Else, they may be blacklisted. They may be branded as Progress-Blockers.
"...before policy decisions are made, observers tend to express their views that they think officials are likely to take on board. After policy actions, they try hard to endorse the decisions already taken. ..."	Experts may try to predict what the Industrialists/Corporates want, as the policy from Govt., as our PM & FM assure and promise to the Industrialists/Corporates everything they want on a golden platter. But sometimes, their hands may be tied from extraneous factors such as welfare of people, in the context of elections, or court decisions.
"...As a result, we in the government do not really benefit from their wisdom. This is a serious problem, because high-quality policy-making demands high quality inputs and high quality debates..."	Policy is not made by Expert Opinions. Policy is made in the mind of PM alone, and sometimes, in the dual minds of PM & FM.
"...The paradox is that in other spheres -- such as trade policy or development policy -- one sees a more vibrant, healthy, and unself-censored debate. Why is there such little debate about macro policy? I would venture three explanations..."	Even in other spheres re-sculpting and re-tuning is taking place. Rex Non Potest Peccare. King can do no wrong.
"...Bankers are careful not to get on the wrong side of the government or the RBI, because they worry about losing access and because they are regulated by them.	Survival Need.
"...It is difficult to get a man to understand something when his salary depends upon his not understanding it. ..." (Quoting writer Upton Sinclair).	Who has to change? Rulers? or the Paid-Experts? CEA knows.
"...Bottomline from this analysis is inflation pressures are easing considerably, the inflation target has been over-achieved, the inflation outlook is benign because of a number of economic developments. Real activity remains weak and well below potential, the exchange rate is appreciating, denting exports. ..."	"Inflation is under control" is a perception of the Rulers. Because, they do not go to streets to buy NECESSITIES. How Rulers get their needs? Somebody from sky may be SHOWERING THEIR CONSUMPTION OBJECTS on them.
"Against this background, most reasonable economists would say the economy needs all the macroeconomic policy support it can get: instead, both fiscal policy and monetary policy remain tight. And on top of that, there are some officials who even think that policy should get tighter,"	Commonman does not know all these intricacies. He-she knows only to suffer.
"Today, there are hundreds of economists outside the government and the RBI and several within. Instead of getting a hundred plus views, we get about ONE view, the official view. Even more interesting is that about 12 months ago, when inflation was much higher and growth was higher, there were economists who called for a large cut in interest rates. Yet today, they are silent,"	Sine cure jobs? May be. But, Rulers can design drills which are similar to military drills, police drills, to make them march in a more syncronized manner.
"So, in the short run, it will want to shape opinion in its favour. But in the long run, that is perhaps not desirable. Public interest is perhaps better served by richer debate that encompasses critical views, including of officialdom. Officials should signal that clearly,"	Is CEA telling to himself? Anyway, he cannot air these views before PM-FM duo.

ybdonkey's views are his personal views, not intended to spoil the minds of others

In Democracy, both at National level, and at Provincial levels, Cabinets are expected to discuss issues threadbare before decisions are taken, where dissenting views are welcomed and their pros-and-cons considered, irrespective of whether they are finally accepted by the Cabinets or not. Anyway, that custom died down in India.

A similar custom is expected in respect of 'Advisers' of all kinds. But it does not appear to germinate, because at Cabinet level itself, the custom of consultation has become defunct and extinct.

Can we expect Mr. Arvind Subramanian to reveal whether he was consulted about the pros-and-cons of demonetization, before the PM took the decision of 'demonetization', and if so what did he advise the PMO? This, he may not be able to reveal, because he might have been bound by some oath of secrecy.

In some respects, the role of Attorney General in the sphere of law, and the role of Chief Economic Adviser in the sphere of Economic Policy, are strikingly similar. Now, can Mr. Arvind Subramanian do some introspection? May be, he may be doing it silently. Or he may not be doing. Survival instinct.

To come back and continue adding / deleting / modifying. सशेष. ఇంకా ఉంది.

975 (Part 1/10) Reserve Bank of India alone cannot help Banks to recover their NPAs (Non Performing Assets)

According to news reports, on 5th May 2017, President Pranab Mukherjee approved an ordinance to amend the Banking Regulation Act, 1949 to give more powers to the Reserve Bank of India to take action against defaulters to speed up recovery of Non Performing Assets (Bad Loans) of Indian Banks. The Ordinance is reported to give powers to RBI to 1) issue directions to any bank to initiate insolvency resolution process in case of default. 2) Issue directions to the banking companies for resolution of stressed assets 3) Specify one or more authority or committee that will advise banks on how to resolve their stressed assets.

RELATED LINKS

Click here to go to https://scroll.in/article/836743/with-more-power-to-rbi-to-tackle-non-performing-assets-could-indias-big-bad-loan-problem-end-soon

Click here to go to https://www.ft.com/content/62cba48c-3195-11e7-9555-23ef563ecf9a (Financial Times)

yb-a-donkey's views which are not intended to be imposed on others

This is a 1000 page subject. Cannot be covered in one blog post.

1. Government of India and the Reserve Bank of India, have done too little, and too late. Government may want to show that they are doing something drastic, to ward off media, public and Parliamentary criticism that it is soft on Corporate Borrowers, and industrialists while small and medium industrial, personal and agricultural borrowers are harassed for recovery of palty amounts. There is much truth in this criticism.

If the Government really takes some radical, effective measures, Large Industrial and Commercial Borrowers are not going to remain silent. They will use their influence-s and pull the strings on their puppet MPs, to change / moderate the Government's behavior.

If one or two industrialists are picked up at a time, probably others will remain silent. But if the whip is flaunted on all the large Borrowers on a war footing, they may go even to the extent of toppling the Government by purchasing MPs, or they may try to split the Ruling Party, by creating hopes in latent aspirants for power.

Question: How the step of "Initiating Insolvency Resolution Process" is not going to solve the problem.

Ans: Even before the Ordinance, Bank Boards, Bank Senior Managers have powers to initiate Insolvency Resolution Process. In case of insolvency of Companies, the Companies Act requires Creditors to apply to State High Courts for Liquidating the Borrower Companies, and if High Courts are satisfied, they will appoint an Official Liquidator to execute the Liquidation Proceeds. The Official Liquidator has to sell all the assets of the Borrower Company, collect all dues receivable by the Companies, and after that pay off the Creditors in the Priority Order Stipulated by Law. The whole procedure and process takes several years.

The Ordinance does not appear to take away the powers of High Courts, or superimpose the new powers of Banks, on the powers of the High Courts. The Ordinance just empowers RBI to issue directions to Banks to initiate Insolvency Resolution Process. It may probably mean that, RBI can give directions to Banks to apply to High Courts for Liquidation of Borrower Companies. Even before the Ordinance, to issue directions to Banks, as may be necessary from time to time. There is no 'open' information that Banks were hitherto disregarding the instructions of the RBI.

In case of most Corporate Loans Banks have full/part security, which they can take possession and sell directly under SARFAESI Act 2002.(Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002)

Before SARFAESI Act 2002 came into force, Banks were dependent on Courts, for selling the assets mortgaged / hypothecated to them. Now, there is no such need.

Approaching courts for Insolvency / Liquidation Proceedings will be useful only when Banks are Unsecured Creditors, or where the mortgaged / hypothecated securities are extremely inadequate, and bulk of the loan will become unsecured.

To continue adding / deleting / modifying. सशेष. ఇంకా ఉంది.

797 Water cannot become sacred water worthy of taking with reverance unless it passes through a conch

It is reported that Mr. Urjit Patel, one of the Dy. Governors of Reserve Bank of India, has been appointed as Governor of Reserve Bank of India, to succeed Mr. Raghuram Rajan, the outgoing Governor. It is good, that he is from within the RBI. Main advantage of having in-house upward movement is: the new incumbant will have an indepth knowledge of functioning of RBI. Besides, upward movement to Executives within Organisations will lift the morale of the Executives. If an outside person is thrust on Executives and Employees, morale will be to some extent affected, because choice of an outsider reflects a LACK OF CONFIDENCE on INSIDERS.

Appointing the Seniormost Dy. Governor, as RBI Governor, might have probably brought in greater transparency.

Mr. Urjit Patel, one gets an impression, seems to be a representative of Reliance in RBI, having worked as a Former Group President of RBI. This may be an imagination. Yet, there is an adage: "Justice should not only be done, but also appear to have been done".

There is a Telugu proverb: "SankhamlO pOstE kAni tIrtham kAdu". Approx. English equivalent: Water can become tIrtham (Sacred worshipped water, to be taken in with reverance in India), only when it passes through a conch, before the deity. We know who the deities are in Government of India. The Search Committee for appointing the RBI Governor 2016, is the Conch (Sankham).

To continue. सशेष. ఇంకా ఉంది.

667 Why dOSA prices have not gone down? दोशाओं के दाम क्यो नहीं गिर रहा है ? మినపట్ల ధరలు ఎందుకు తగ్గలేదు ?

There is a proverb in my mother tongue Telugu Language: "tADi ceTTu enduku ekkAvu anTE, dUDa gaDDi kOsam, annADu Ta". Approx. English Gist: A person climbed a palmyra tree. Passersby asked him, "Why did you climb the palm tree?". He replied: "For the purpose of grass for the calf". When any person gives an answer not relevant to the question, this proverb is, sometimes, used. Mr. Raghuram Rajan is the Governor, Reserve Bank of INdia. He functioned as Chief Economic Adviser to our Former Prime Minister Manmohan Singh. He was for sometime, Chief Economist at IMF, and Professor of Finance at University of Chicago. Hence, whatever he says, people take as Financial Veda or Bible or Quran, except probably the Prime Minister and Finance Minister of India.

Meaning of the South Indian savoury "dOSa" for the benefit of those who are not conversant with it:-- A flat pan cake, roasted on a flat pan, with a little oil. Served with chutney, usually made of Ground Bengalgram Lentils, Ground Raw coconut core kernel, salt to taste, green chillies to taste, etc. In South India, dOSa preparation has been perfected as an art, both in homes as well as roadside tea stalls. There are about 100 types of dOSas in vogue, depending upon the type of cereals and pulses used for making the bater, and the vegetables and spices used to support. For more information, unfamiliar readers can visit this Wikipaedia link: Click to go to Wikipedia.org .

Photo courtesy wikipedia.org same web-page

We shall, now have a quote from Media. Click to go to Deccanchronicle.com, to read this item.

Why 'dosa' prices not down? Rajan blames it on 'tawa'!

An Engineering Student asked the question: "In real life, I have a query on Dosa prices - when inflation rates go up, Dosa prices go up, but when inflation rates are lower, the Dosa prices are not lowered. What is happening to our beloved Dosa, sir".

(RBI Governor):

"...So, what happens is that in an economy which is growing and when there are sectors which are improving technologically while other sectors are not improving their technology, the prices for the goods manufactured by sectors, that are not improving their technology, will go up faster. ..."

"...You are seeing it in the case of Dosa..."

"...Till today that person puts it (Dosa batter) on Tawa, spreads it around and then takes it out, right? There has been no technological improvement there. ..."

"...However, the wages that you are paying to that gentleman, especially in a high-wage sort of state like Kerala, are going up all the time..."

ybrao-a-donkey's humble comments. वैबीराव एक गधे के विनम्र राय . వైబీరావ్ గాడిద వినమ్ర వాణి. You have every right to differ with me. I respect your right. आपको मेरे मत से भिन्न राय रखने के संपूर्ण हक है। मै उस अधिकार को परिपूर्ण रूप से गौरव देता हुँ. మీకు, మీ భిన్నమైన అభిప్రాయాన్ని కలిగిఉండే సంపూర్ణ హక్కు ఉంది. దానిని ఎంతో నేను గౌరవిస్తాను. However, pl. examine this donkey's views also. परन्तु एस गधे के दृष्टिकोण को भी अनुशीलन कीजिये. కానీ ఈ గాడిద దృష్టికోణాన్ని కూడ ఓర చూపుతో కంటజూడుమీ, క్రీగంట జూడమీ.

I do not want to question the intelligence of our RBI Guv. Mr. Rajan may be staying as a Guest of Big Persons and Corporates, or he may be staying at Big Hotels. He may not have many occasions to buy dOsAs on roadside in South India.

Mr. Rajan might not have had time to look into the Economics of DOsa making. Nor will Mr. Narendra Modi have, though he claims to hail from a Tea stall family.

REASONS FOR INCREASE IN PRICES OF DOSAs

Among nearly a 100 dOSa genres, the most common and popular dOSA is theoretically made from urAd dAl (minapa pappu), i.e. Blackgram Lentils, decorticated, split or unsplit. The second most popular dOSa is made of Greengram Lentils, "pesara aTTu". In Andhra Pradesh, dOSas are called "aTTu"-s. As far as food and recipes are concerned Residual Andhra Pradesh was closer to Tamil Nadu , and not to Telangana. This is also one of the reasons for the Telangana People to split from Residual A.P.

What is the present price of Blackgram dAl Lentils today? Rs. 160 per kg. Greengram Lentils nearly Rs. 140/- per kg. What is the price of Bengalgram Lentils today? Rs. 80/- per kg.

I can't speak for Kerala or Tamil Nadu, but the conditions may be similar to the Residual A.P. Consequent to rise in the price of ingredients, the percentage of main ingredient has nearly disappeared. When we say minapa aTTu (Pan cake made of Blackgram_, there should be blackgram in it. Instead, we find only bater made from flour of Ration Shop rice as the main ingredient. What we eat today are not really dOSAs or minapa aTTus. They are just some pan cakes. In the chutney, coconuts have totally disappeared. Some people have reduced the percentage of Bengal gram Lentils (vEyincina Sanaga pappu).

What is the price of the Oil used in making Oil, does Shri Rajan know? If real groundnut Oil or coconut oil is used it should be Rs. 140/- per litre. Even Sunflower Oil is not used, because of high costs. We poor South Indians get either palmolene stuff, adulterated with oil made from tallows of animal carcasses.

Still, I do not want to blame the roadside vendors, small hotels, and banDis (carts). They have their own set of problems. Earlier, they were using domestic gas cylinders. Their costs, were a little under control at that time. Now, after the introduction of Adhar, and the limits placed on the number of Cylinders, the banDiwallahs are forced to buy their fuel in black market. Besides, they have to feed dOSas to Municipal workers, Sanitary INspectors, Gas Boys, everybody freely.

I do not know how many millions of poor people have made road-side tea-stalls, tiffin-carts, as their main source of livelihood. In my view it will be at least 1 crore (10 million).

Even in Medium Size hotels, fat wages are not paid to Hotel workers. I can't speak about some Taj, Mumbai or Oberoi, Mumbai. In fact, unable to bear the costs, pay wages, rents, many Medium sized Hotels in Residual Andhra Pradesh have closed down.

Today, we have more number of Bars and Wine shops in our Towns and Cities, than good Coffee Hotels. Those who live in Guntur may know or may not know, because they have shifted to tea. It is difficult to get good Coffee, now-a-days in Residual Andhra Pradesh. Not to speak of the Filter Coffee, even the Brue type. We can get beer, but not Coffee.

Mr. Rajan may or may not know: The Red Gram Lentils (tuwar dal or kandi paruppu) used in making SAmbAr, a supporting dish to Idli, DoSe, Meals etc.-- was sold for sometime at Rs. 200 per kg, poor quality. Today, though there is some fall, yet it is not enough.

There may be thousand reasons for Food Inflation in India. One important reason for high prices of Lentils, is the steep fall in the area of cultivation of all the leguminous lentils i.e. Redgram, Blackgram, Greengram, Bengalgram, owing to excessive urbanisation and conversion of fertile lands into housing plots. Replenishment of shortfalls are being made only through imports. The Govt. of India has huge Foreign Exchange Reserves at its disposal, mobilised by throwing away valuable lands to Foreign Corporates freely or at a pittance, and by giving numerous tax concessions. The GOI is totally blind to the imperative need for Indianisation of Agriculture or Industry. Nobody can save this country.

At least for the sake of maintaining the dignity of our country, we should not call Mr. Rajan, a small joker, because there are bigger jokers above him. He must introspect, if he really cares to, keeping always in his mind the TALISMAN quote of Mahatma Gandhi reproduced by me in my previous blog posts. But if he wants to implement everything exactly as per the TALISMAN QUOTE of Mahatma Gandhi, Mr. Rajan will be shunted out from RBI.

Subject to substantial Revision, additions and deletions. To continue and revise this, with more proof.. सशेष. సశేషం.

568 No need to reduce Home loan interest rates गृह ऋणों के ब्याज रेट को कम करने के जरूरत नहीं है। గృహ ఋణాలపై వడ్డీ రేట్లను తగ్గించ వలసిన అవసరం లేదు.

Ms. Arundhati Bhattacharya, Chairperson, SBI, has rightly identified her six top priorities. There is no need to deviate from them, because India Inc. is pressing to cut lending rates. There is also no need to reduce interest rates on home loans, introducing such methods as teaser rates. Indian Public Sector Banks, having financed Home Loans at prices far higher than the intrinsic value of the underlying structures, now face a similar situation which American Banks and Investment Houses faced in 2008, when Sub-Prime Mortgage Loans became a problem in that country. As pointed out by Mr. Raghuram Rajan, RBI Governor, there is a need to cut the prices of Houses. According to news reports though in some cities like Mumbai and Delhi, Realtors have reduced prices, they have also reduced the size of the houses, and even the minimum fixtures. All the housesites in our Cities have gone into the hands of speculators, and builders are forced to purchase sites at very high prices and build flats thereon. Besides, there is the element of payment of bribes, for various purposes right from the conception stage to actual delivery to buyers. Consequently, home prices have gone beyond the paying capacities of even higher income group employees, not to speak of lower middle class, which has stopped thinking about owing a lifetime home. Till such a time, the Central and State Governments take truly effective steps to control house site prices and flat prices, it will be better if Banks exercise restraints in financing Home Loans.


Mrs. Nazma Heptullah is reported to have said as under. श्रीमति नज्मा हॆप्तुल्ला, मीडिया रिपोर्टों के अनुसार, यह कह दी। మీడియా రిపోర్టులననుసరించి, మైనారిటీ వ్యవహారాల కేంద్ర మంత్రిణి శ్రీమతి నజ్మా హెప్తుల్లా గారు ఇలా అన్నారు:-

People of all faiths are totally safe under Narendra Modi Administration.

श्री नरेंद्र मोदी के परिपालन में सभी धर्मों के जनता, संपूर्ण रीती में भद्र स्थित है।

శ్రీ నరేంద్ర మోడీ గారి పరిపాలనలో, అన్ని మతాల వారూ, సంపూర్ణ మైన భద్రతతో ఉన్నారు.

Let us allow it to go. At least, Ms. Nazma Heptulla, and her Minister-post are safe. हम इस बात को छोड देंगे। कम से कम, श्रीमति हॆप्तुल्लाजी, और उसकी मंत्री पद, भद्र है न। పోనిద్దాము. కనీసం హెప్తుల్లా గారైనా, భద్రంగా ఉన్నారు కదా. ఆమె పదవైనా భద్రంగా ఉన్నది కదా.

(To continue. और लिखने का है। ఇంకా వ్రాయాల్సింది ఉంది.

567 Indian Public Sector Bks should not be asked to cut lending rates. भारतीय प्रभुत्व बैंकों को ब्याज रेट्स कम करने के लिये दबाना नहीं चाहिए। భారతీయ ప్రభుత్వ రంగ బ్యాంకులను వడ్డీ రేట్లను తగ్గించమని వత్తిడి చేయటం ప్రమాదకరం.

RBI Governor, Mr. Raghuram Rajan, seems to be a courageous person, when news reports indicate that he is resisting constant continuous nudging + prodding by the Finance Minister & the India Inc. to cut lending rates. Simultaneously, we see him his nudging the Bank chairpersons to cut Bank lending rates, probably to show that he is pressing the Banks, but Banks are not heeding to RBI and the Govt. One gets an impression that he does not want to keep the blame for himself.

As a Finance expert, he may also be aware the present turmoil and tumult which the Indian Banks, particularly the Indian Public Sector Banks are going through. He may also be aware, that Indian Public Sector Banks operate with a very narrow spread between the interest rates paid on deposits and the interest rates charged on their lendings. He may also be conscious of the great difference between the roles expected to be played by Public Sector Banks and the Private Sector Banks. It is true that an RBI Governor is not expected to be a pugilistic punching bag for the Govt. and the Finance Minister. Nor is he expected to be an extremely empathetic agony aunt for the chair persons of Public Sector Banks. It is unfortunate that Finance Minister and Finance Ministry are not paying enough attention to the health of Public Sector Banks, which if they burst can cause irreparable damage to Indian Financial System. Providing funds to sick banks, is just one measure. There are numerous other things which deserve immediate attention from the Government, particularly the Credit Recovery Arrangements.

As the communications between the RBI Governor and the Finance Minister at top level are confidential, it is very difficult to gauge whether RBI is adequately representing the problems faced by PSBs to the Govt. of India. At least there is one reason to believe that he is conveying the pathetic problems of the Indian PSBs, as can be deduced from the willingness of Govt. of India to provide additional Capital to Public Sector Banks. This alone may not be adequate to say that everything is being represented upwards. Besides, the Government of India, may be either through RBI, or even directly under pressure from Institutions such as IMF, World Bank, Bank of England or Federal Reserve Bank (America's Central Bank), BIS (Bank for International Settlements) to increase the Capital(s) of Indian Public Sector Banks quoting some BASLE Convention or something else. Govt. of India seems to wilt relatively easily to international pressures, when compared to its understanding the domestic needs.

Some quotes dated 20th Aug 2015, at SBI Economics and Banking Conference, which are attributed to Mr. Raghuram Rajan, RBI Chief:

"...There is a need for banks to cut their lending rates anticipating the benefits which will be accruing from the central bank's rate cuts. ..."

"...I think there is something to be said for the fact of the slow pace of transmission, that some front loading by the banks themselves may be useful. ..."

Some other valuable quotes related to this subject attributed to the Banks:

"...A 75 bps cut translates into 40-45 bps cut in cost of funds for banks. You've already seen a 30 bps cut. Transmission will never be a one-is-to-one correlation with monetary policy rates. ...--Ms. Chanda Kochhar"

ybrao-a-donkey's humble views. I shall not insist that you agree with me. वैबीराव एक गधे के विनम्र वचन. आप मुझ से सहमत होने के निर्बंध नहीं है। వైబీరావు గాడిద వినమ్ర అభిప్రాయాలు. నాతో ఏకీభవించమని మిమ్ములను వత్తిడి చేయను
1. Interest Rates prevailing in Indian Financial Markets where individuals, firms and Corporates lend to one another have mostly remained over 24% and rise even upto 120% p.a. depending upon security perceptions, need of the borrower, repayment program, etc. etc. Considering this hard reality, even a lending rate of 18% p.a. should not be considered as high. It is strange that India Inc. makes a hue and cry when Banks charge rates as low as 12% p.a. and demand large reductions in rates. It is really detestable that they ask for cuts in lending rates.

2. Indian Banks both Private Sector and PUblic Sector, have very poor credit appraisal, delivery, supervision, and recovery mechanisms. It is common for Corporates both industrial and non-industrial to divert borrowed funds for purposes other than the intended purposes. For this reason only we see hoarding of essential commodities, speculation in real estate, gold, silver, stock market speculations, cricket betting, with funds diverted from Bank borrowings. Once, the amounts leave the Corporates to their affiliates and subsidiaries or to the family members of the promoters, there is very little which Banks can do, to bring them back into the main stream of Finance. What the Corporates, both Indian and the MNCs operating in India, seem to want, apparently are cheap funds for short, medium and long term speculation. Else, except for those goods and products which have long production cycle, or stagnating markets, there should be no need to carry huge stocks, and pay interest to Banks. Corporates will not tell, but the interest amounts they pay, are for the moneys they block themselves in their hidden real estate or speculative investments, or in inter-corporate ventures. The best example we can get for this type of behaviors we can see from King Fisher, or the defunct Satyam Computers. In case of Satyam Computers, fortunately Mahindra came to the rescue of the Govt. and bought the I.T. dud. In case of King Fisher nobody knows what is happening and what is going to happen. I am also unable to recollect what happened to the dues of Indian Banks recoverable in case of Dabhol Power Project, Maharashtra.

I feel that it is high time for RBI Governor and the Finance Minister to ENABLE the Public Sector Banks to recover all their dues from the large Commercial and INdustrial borrowers. Court processes are cumbersome and time-consuming. Recalcitrant borrowers will use the time gap of nearly five years taken in courts for issuing decrees, to use the funds for their own purposes, though there is a procedure for attachment before judgements, it seldom works. Besides, attachments before judgements are intended as a sort of emergency method rather than as a recovery or loss minimisation proceedings.

Efforts made by banks with police help to forcibly take possession of secured assets where borrowers were non-coperative, were shunned by the court indicating that Banks cannot take law into their own possession. Even courts are unable to execute their own decrees, because they do not have staff or police of their own, and they depend on advocates appointed as Receivers/Assignees who ask Bank Staff to arrange transport and food for them. It is hightime for the Central Government and the respective State Government to constitute to post additional special Armed staff with crime and law & order powers, at, at least, Sub-Division Headquarters to help Banks in taking possession of securities, and their sale. Besides, RBI can ask Public Sector Banks, to set up a common Armed Security Force for enforcement and sale of security assets, by pooling funds and make Armed teams available to needy Banks when they need such services, and the Maintainer of the Security Force levy charges for providing the Security Enforcement and Recovery Armed Guard Services. Perhaps, it may be necessary to make some amendments to the Indian Penal Code, Civil Procedure Code, Criminal Procedure Code, Evidence Act, to make these things really work. Debt Recovery Tribunals alone cannot serve this monumental and monstrous task.
It is imperative that RBI treats and should treat Public Sector Banks differentially and preferentially from Private Sector Banks. This is simply because Private Banks and Public Sector Banks have different goals, different approaches, and different problems.

RBI should encourage Banks to mobilise their own lendable funds more and more from public and not depend on RBI's REPOS, by paying attractive interest rates to customers. Repos are intended to be emergency help, and not as primary lendable source of funds for Banks. Govt. or RBI or Banks or Industrialists should not have that impression that Banks will borrow from RBI at Repo Rates and add a measly margin for thier services.

If, under pressure from industrialists -> Govt. -> RBI, in case Banks reduce their lending rates and automatically, obviously, deposit interest rates, public will go elsewhere i.e. to unorganised sector or money-laundering institutions. Or they will buy gold or indulge in speculation. Not reducing interest rates on Bank deposits is particularly important, considering that Govt. is levying income tax on meagre interest which Banks pay on Bank deposits and insisting on TDS on Bank Deposits which are already low-yield investments owing to Deposit interest rates not matching with inflation.

(To continue. और लिखने का है। ఇంకా వ్రాయాల్సింది ఉంది.

156 Chidambaram Economics

156 Need to recognise degradation of Indian Economic affairs సంస్కరణల వల్ల భారతీయ ఆర్ధిక వ్యవస్ తీవ్రంగా దిగజారిన విషయాన్ని గుర్తించ వలసిన అవసరం

---

చర్చనీయాంశాలు: భారత్, ఆర్ధికరంగం, Indian Economics, Finance Minister, RBI


సీమాంధ్ర ప్రజలను మాయాజూదంతో వనవాసానికి పంపటంలో ప్రముఖపాత్ర వహించిన కేంద్ర ఆర్ధికమంత్రి శ్రీచిదంబరం గారు, రిజర్వు బ్యాంక్ గవర్నర్ రఘురాం రాజన్ గారిని వెంటేసుకొని ఆస్ట్రేలియా లోని సిడ్నీ నగరంలో జరిగిన జీ20 దేశాల ఆర్ధిక మంత్రుల మరియు సెంట్రల్ బ్యాంకుల సమావేశానికి హాజరై వచ్చారు.

ఈసందర్భంగా కొన్ని శ్రీవారి సువార్తలను చూద్దాం.

The communique has been drawn by the deputies sitting together and our concerns have been fully reflected in the communique.

ఆ సందేశపత్రం డెప్యూటీలందరు కూర్చొని తయారు చేశారు. దానిలో మన కన్ సరన్స్ (మనల్ని అభద్రతకు గురి చేస్తున్న, బాధిస్తున్న అంశాలు) అన్నీ కూడ ప్రతిబింబించాయి.

కమ్యూనిక్ (ప్రకటన)తో మీరు తృప్తి పడ్డారా అంటే అవును అన్నారు.

”...when countries withdraw from quantitative easing they should keep in mind the spillovers on the developing countries,”
''...దేశాలు క్వాంటిటేటివ్ ఈజింగ్ నుండి ఉపసంహరించుకుంటున్నప్పుడు వాళ్ళు ఆ ఉపసంహరణ యొక్క చిమ్ముళ్ళు, వొలుకుళ్ళు (spillovers ప్రభావం) అభివృధ్ధి చెందుతున్న దేశాలమీద పడతాయని గుర్తుంచుకోవాలి...''

''...Emerging economies followed the advice of the IMF when the major economies went through a period of downturn after the 2008 global financial crisis...''
''..2008లో ప్రపంచ ఆర్ధిక సంక్షోభం వచ్చి అభివృద్ధి చెందిన ఆర్ధిక వ్యవస్థలు పతనోన్ముఖం అయినపుడు అభివృధ్ధి చెందుతున్న దేశాల ఆర్ధిక వ్యవస్థలు అంతర్జాతీయ ద్రవ్యనిథి (ఐఎమ్ఎఫ్) సలహాలను పాటించాయి... ''

''...So when they (developed world) sought our cooperation during the economic downturn it is only fair that they cooperate with developing countries during the economic recovery...''
''..కనుక వాళ్ళు(అభివృధ్ధిచెందిన అమెరికా మొ||) మన సహకారం అడిగినపుడు మనం (అభివృధ్ధిచెందుతున్న దేశాలు) ఇచ్చాం. కాబట్టి వాళ్ళు మన ఆర్ధిక వ్యవస్థలు కోలుకోటానికి సహకరించాలి. .. ''

వైబీరావు గాడిద వ్యాఖ్యలు

అభివృధ్ధి చెందిన దేశాలతో వ్యవహరించటం అంటే మాయాజూదంతో సీమాంధ్ర ప్రజలను కట్టుబట్టలతో అడవులపాలు చేసినంత తేలిక కాదు.

ఈసందర్భంగా జర్మనీ ఆర్ధిక మంత్రి శ్రీ Wolfgang Schaeuble వోల్ఫ్ గాంగ్ షావూబుల్ గారి వ్యాఖ్యల్లో కొంత చేదునిజాన్ని మనం గుర్తించాలి. ఆయన ఏమన్నాడంటే భారత్ ఆర్ధిక సమస్యలకు అభివృధ్ధి చెందిన దేశాలు మాత్రమే కారణం కాదు, అంతర్గత కారణాలు కూడ ఉన్నాయి.

క్వాంటిటేటివ్ ఈజింగ్ యొక్క చిమ్ముళ్ళు ఒలుకుళ్ళు అంటే ఏమిటి What is the meaning of the spill overs of quantitative easing?

ఈసందర్భంగా మనం కొన్ని వాస్తవాలను పరిశీలిద్దాం:-- ౧. భారత్ ఆర్ధిక సంస్కరణలకు ముందు చమురు, యంత్ర పరికరాల దిగుమతులకు విదేశీ అప్పులపై ఆధారపడి ఉండేది. 1991 చంద్రశేఖర్ గారు ప్రధాని అయిన కాలంలో విదేశ మారకం కరువై కొంత బంగారాన్ని లండన్ లో తాకట్టు పెట్టవలసి వచ్చింది. దీనికి సరియైన పరిష్కారం ఎగుమతులను పెంచుకోటం.

౨. తరువాత ఆర్ధిక మంత్రి అయిన శ్రీ మన్మోహన్ సింగ్ గారికి కష్టపడి ఎగుమతులను పెంచుకోటం ఇష్టం లేక సంస్కరణలు అంటూ ఊదరకొట్టి విదేశీ పెట్టుబడులకు గేట్లు ఎత్తేశారు. విదేశీ పెట్టుబడులకోసం అడుక్కుంటూ దేశాలు తిరగటం మొదలు పట్టారు.

౩. ఆదే సమయంలో అమెరికా, యూరప్ లలో ఆర్ధికవ్యవస్థలో ఆదేశాల కేంద్ర బ్యాంకులు తమ దేశ ఆర్ధిక సంస్థలకు లూజుగా డబ్బులు అప్పులిచ్చే అలవాటు ఉండేది. యూరో అమెరికన్ ఆర్ధిక సంస్థల వద్ధ తేరగా వచ్చిన ఫెడరల్ రిజర్వు డబ్బులు ఉండటంతో వారు చైనా, భారత్ మొ|| దేశాల్లోకి డాలర్లను యూరోలను కుమ్మరించారు. అంబానీ మొ|| భారతీయ ఘరానా పెట్టుబడిదారులు తమషేర్ల ధరలను విపరీతంగా పెంచేసి ప్రపంచ బిలియనీర్లలో చేరి పోయారు.

ఇప్పుడు అమెరికా, యూరప్ లలో క్లిష్ట పరిస్థితి వచ్చింది. అదేపనిగా వారి ఆర్ధిక సంస్థలకు అప్పులు, పెట్టుబడులు సమకూర్చటం కుదరదు, వాటిని ఉపసంహరించాలని గుర్తించారు. ఇందులో తప్పేముంది?

అమెరికా, యూరప్ సెంట్రల్ బ్యాంకులు నిధుల విడుదల తగ్గించటమో, తమ వడ్డీరేట్లను పెంచటమో చేసినపుడల్లా ముంబాయిలో షేర్ మార్కెట్లు కుప్పకూలుతూ ఉంటాయి. రూపాయి మీద వత్తిడి పెరిగి రూపాయి బాహ్యవిలువ డౌన్ అవుతు ఉంటుంది.

చిదంబరం గారు అనే అభినవ గిరీశం గారు అడిగేదేమిటంటే, మీరు మీ ఆర్ధిక సంస్థలకు ఉద్దీపనాలు తగ్గించకండి. మీ ఆర్ధిక సంస్థల దగ్గరి డాలర్లను, యూరోలను మీరు లాక్కుంటే, వారు భారత్ లోని డాలర్లను, యూరోలను వెనక్కి తీసుకుంటారు. మా రూపాయి, మా షేర్ మార్కెట్లు దెబ్బతింటాయి. మా వృధ్ధి రేటు డౌన్ అవుతుంది.

హనుమంతుడి ముందరా కుప్పిగంతులు?

సీమాంధ్ర ఎంపీల, కేంద్రమంత్రుల, ఆంధ్రప్రదేశ్ శాసనసభ విజ్ఞప్తులను కేంద్రం ఎంత పట్టించుకుంది? భారత్ విజ్ఞప్తులను అమెరికా యూరప్ లు ఎందుకు పట్టించు కుంటాయి.

గుడిలో లింగాన్ని మాత్రమే మింగేవాడొకడుంటే, గుడినే మింగేశే వాళ్ళుంటారు, చిదంబరం గారూ.
(తిరగ వ్రాయ వలసినది, జోడించ వలసినది, ఇంకా ఉంది.)