Ram ji...
O Ram ji... bada dukh dinha...
Some people were crying loudly some time back. But now it is all good.
I reminded of this old song from Ram Lakhan movie, whenever I read more and more about RaghuRam Rajan. No doubt RaghuRam Rajan (Capitalizing Ram as Ram ji is the most loved Hindu God) is one of the most capable persons to hold the post of RBI Governor and is most educated and intelligent person. Someone who predicted the meltdown of US economy in 2007 when US economy was on its boom. He also headed IMF and did wonderful work as IMF chief. Again, his contributions to Indian economy are plenty and time to time he showed his intelligence by not lowering the Lending Interest rates. His understanding of the Indian economy will not be known now. We will get to see this only in years to come. It is because most of the decisions are largely based on predictions and current inflation and CPI data.
The best part of Ram ji's as RBI chief will be remembered in the way he asked all the banks to publish willful defaulters list and pressurized then to spill the beans. There are many big people , incorporation and companies which have taken the money from public banks and are not repaying them and the figure goes beyond billions and trillions. Now, since my knowledge of economy is not great, I am not able to decide whether pressurizing and making defaulters' name public and asking money is correct or to make their business flourish by making economy business friendly and conducive, so that they can earn and return the money.
Though the second option looks promising, there is no guarantee that the willful defaulters will start repaying money easily. Making them public and embarrass them is not working either(Vijay Mallya is live example). On one hand the NPA's to the banks are increasing because of these willful defaulters, on other not lowering the interest rates have made a bottle-neck around Indian economy. It could be Ram ji's strategy to make them pay and make more money available with banks to lend. This also looks correct. When banks already have money, which is with willful defaulters, what is the point of lowering the interest rates and making more money available in market. It seems Ramji's strategy was fine, but in my view mixing both and making some more money available by lowering only 10 or 20 basis points would have done wonders for Indian economy. It is the time when India economy will grow and grow at its pick.
Ramji's strategy may be in question an so does Lord Ram's integrity to Sita was. Though, when you appoint a Governor, you give him free hand and will. It is up to his will and decision. When the government is doing some quick reforms to make sure economy performs at its full pace, it could be that Ramji doesn't want a US economy like situation for Indian economy. To perform you have to give and take at the same time. Only releasing more money in economy will not do wonders whereas tight regulations will help economic growth to sustain in long run.
Ramji's legacy would be that the new Governor takes up his approach of tight and solid regulations at place with easing and making more money available in market. The Government part is done is lowering the Fixed deposit, Recurring Deposit and Savings interest rates. It is now the time to lower the home loan rates and make home for all dream come true. These activities will generate employment and push Indian economy in its peak of growth. The Government should take his remained work and make sure all willful defaulters pay the money they took from banks. This will make sure much more money is available to carry on economic activities.
Don't make hue and cry when Ramji is stepping down. It is his personal decision, though some incidents may have led to this path, but still the post is always bigger than a person. When A P J Abdul Kalam vacated the post of the President, it created a quality vacuum at highest post of one of the biggest democracies. The present Government should learn from the past mistakes made by previous governments and find another most suitable and quality person for the job of top-most Banker.
Some people were crying loudly some time back. But now it is all good.
I reminded of this old song from Ram Lakhan movie, whenever I read more and more about RaghuRam Rajan. No doubt RaghuRam Rajan (Capitalizing Ram as Ram ji is the most loved Hindu God) is one of the most capable persons to hold the post of RBI Governor and is most educated and intelligent person. Someone who predicted the meltdown of US economy in 2007 when US economy was on its boom. He also headed IMF and did wonderful work as IMF chief. Again, his contributions to Indian economy are plenty and time to time he showed his intelligence by not lowering the Lending Interest rates. His understanding of the Indian economy will not be known now. We will get to see this only in years to come. It is because most of the decisions are largely based on predictions and current inflation and CPI data.
The best part of Ram ji's as RBI chief will be remembered in the way he asked all the banks to publish willful defaulters list and pressurized then to spill the beans. There are many big people , incorporation and companies which have taken the money from public banks and are not repaying them and the figure goes beyond billions and trillions. Now, since my knowledge of economy is not great, I am not able to decide whether pressurizing and making defaulters' name public and asking money is correct or to make their business flourish by making economy business friendly and conducive, so that they can earn and return the money.
Though the second option looks promising, there is no guarantee that the willful defaulters will start repaying money easily. Making them public and embarrass them is not working either(Vijay Mallya is live example). On one hand the NPA's to the banks are increasing because of these willful defaulters, on other not lowering the interest rates have made a bottle-neck around Indian economy. It could be Ram ji's strategy to make them pay and make more money available with banks to lend. This also looks correct. When banks already have money, which is with willful defaulters, what is the point of lowering the interest rates and making more money available in market. It seems Ramji's strategy was fine, but in my view mixing both and making some more money available by lowering only 10 or 20 basis points would have done wonders for Indian economy. It is the time when India economy will grow and grow at its pick.
Ramji's strategy may be in question an so does Lord Ram's integrity to Sita was. Though, when you appoint a Governor, you give him free hand and will. It is up to his will and decision. When the government is doing some quick reforms to make sure economy performs at its full pace, it could be that Ramji doesn't want a US economy like situation for Indian economy. To perform you have to give and take at the same time. Only releasing more money in economy will not do wonders whereas tight regulations will help economic growth to sustain in long run.
Ramji's legacy would be that the new Governor takes up his approach of tight and solid regulations at place with easing and making more money available in market. The Government part is done is lowering the Fixed deposit, Recurring Deposit and Savings interest rates. It is now the time to lower the home loan rates and make home for all dream come true. These activities will generate employment and push Indian economy in its peak of growth. The Government should take his remained work and make sure all willful defaulters pay the money they took from banks. This will make sure much more money is available to carry on economic activities.
Don't make hue and cry when Ramji is stepping down. It is his personal decision, though some incidents may have led to this path, but still the post is always bigger than a person. When A P J Abdul Kalam vacated the post of the President, it created a quality vacuum at highest post of one of the biggest democracies. The present Government should learn from the past mistakes made by previous governments and find another most suitable and quality person for the job of top-most Banker.
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