MONUMENTAL MISMANAGEMENT: CREDIBILITY OF RBI LOST FOREVER?

Under Rajan, RBI adopted Consumer Price Index (CPI) as an important indicator of inflation, despite the government’s opposition.RaghuramRajan, has been conferred with the Central Banker of the Year award for the year 2016.As the Governor of RBI, he successfully brought down retail inflation from 9.8 percent in 2013 to 3.78 percent in 2015.he says I would focus more on tracking data and better tax administration to get at where money is not being declared.

97% banned notes said to be deposited in banks. Banks have received Rs14.97 trillion ($220 billion) as of 30 December, the deadline for handing in the banned notes.

YV Reddy, BimalJalan (two former governors of RBI) stoke debate on steady erosion of RBI autonomy. If I Were at RBI, I’d Have Withdrawn From Demonetisation Implementation: Y.V. Reddy. Currency in circulation contracted by 4.3% in the week to 6 January, indicating that the introduction of new notes has been Slow.

RBI admits Government called the shots on demonetisation.RBI approved Modi’s demonetisation bid hours before his announcement.In response to an RTI query, RBI said information on how many members favoured or opposed Modi’s demonetisation move isn’t ‘on record’.Were Jaitley, economic advisor consulted before demonetisation? RBI does not answer the RTI query. The Reserve Bank of India has refused to answer a query seeking information about the pre-demonetisation consultation process bracketing an RTI petition as under ‘seeking opinion category’. System not yet ready for cashless economy, RBI Governor tells PAC.RBI is reconciling the numbers provided by banks against the actual cash stashed in currency chests. Cooking up the fiscal deficit numbers : Growth deficit and the fiscal deficit. The budget is likely to overestimate the expected revenue and the absolute level of the permissible fiscal deficit.

An ATM at a village in (Khargone district) dispensed two ‘one-side blank’ currency of the new Rs 500 denomination. MP farmers get ‘genuine’ Rs 2000 The image of Mahatma Gandhi was missing from the notes because of a “printing error”, the farmers were told. Banking and police sources told that many such defective, yet genuine, currency notes were in circulation . Government’s own agencies estimated the quantity of FICN as Only 0.02% of the currency in circulation is fake currency.

Only 2304 billion worth new currency is printed between 8/11/16 & 13/01/17 (66 days).Find how much time needed for balance 8189 billion?.no additional security feature is added to the new notes than what is existing.

RBI: WILL LOSS OF FACE BE RECOVERED BY LOSS OF HEAD?
“The RBI has lost a good deal of its most prized asset — credibility. What is a holder of a rupee supposed to think of the worth of the RBI governor’s promise to pay the bearer a promised sum on presentation at anyplace where such notes are meant to be exchanged? Clearly the RBI governor has lost face and the institution has had its credibility whittled down.”

Ref :Many Articles

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Beyond Liberal Disconnect

Governance  should be made more transparent, more accountable. Better Health care , improving quality of education ,poverty alleviation, job creation, Better standard of living,  should be the focus of policy makers .over all decision making should be inclusive given the socio-economic divide our country has. Accountability for  Policy making,  Implementation, project cost ,target- gap ,time based deliverance is need of the hour. and peoples should held people in power responsible  in case of failure of these critical issue

It is good  to see a  united peaceful people movement.Social reform  need persistence, voice for justice against Majoritarianism ,prejudice, and tolerance for plurality of thought.

Empathy for weak should not  be high jacked by any identity based polarization. People should not be carried away by mere slogans and personality.  It is people welfare that matters, beyond any patriotism ,regionalism ,nationalism. We are instinct driven ,animal spirit in us drive us to seek identity based union. People tend to fall for orator, anarchist .is there a way forward to overcome this behavioural psychology ?

Change in system should be brought in by the people. Sustained interaction with the system which is collapsed in almost all aspects. for example with purposeful delay in appointment of  judges. Number of vacant post in judiciary resulted in increase in number of pending cases causing system to collapse. the last resort for a weak is judiciary. Many livelihood depends on the justice if only it is delivered on time .judiciary is just one example similar is the case for quality of education etc

it is easily said than done. Some elite even hide their hate in the name of development etc.Just  by manipulation of emotions  (with hidden motives) got popular support,making a non- issue a highlight. polarization of Us Vs Them debate, help hide all the failures of people in power and take us back to square one, where we are forced to discuss about even fundamental rights  (example  food habits- beef ). Majority taking pride in being conservative and resisting liberal ideas.thus cow ,bull, dressing sense , mandir etc takes the Center Stage making us forget the real issue of safety and women empowerment etc . It is mere PR stunt to project someone as sole protector and taking pride of a identity. (Ex: in the name of cultural practices). thus scope of governance shift focus on construction of statue etc instead of spending on infrastructure development. Way forward should be  taking people along in progressive modern ideas. ( example empowering people with English skill  etc) .

Written on 21/1/17