In an interview with The Wire, the former central banker talks on the infeasibility of executing demonetisation while raising concerns over re-starting the working capital cycle of small and medium businesses.
In a letter to RBI governor Urjit Patel, the employee’s union says that the image of the central bank has been dented beyond repair.
How much money will come through the second income disclosure scheme and by tracking down hitherto unidentified black money? What will it be used for?
Deputy governor R. Gandhi’s claims on the quantity of low-value notes pumped into circulation are false. The giant release of small change is just another attempt at spin.
Is finance minister Arun Jaitley budgeting in the dark? One can’t have a strategy for economic revival without first estimating the economic impact of demonetisation.
India clearly lacks the adequate infrastructure required for becoming a cashless system. Among BRICS nations, in this regard, it is a laggard.
2017 will need to see less of the carrot and more of the stick in order to persuade India’s institutions to prepare against an ever-increasing number of cyber security threats.
It is dangerous for the government to seek financial stability at the cost of people who entrust their money to banks.
Blaming the money laundering instances on a few employees and suspending officials may deflect public and regulatory criticism but the cancer is widespread.
When the RBI signed off on demonetisation, its central board had the lowest number of directors in 15 years and only three truly independent directors.
The new black money disclosure scheme will start from December 17 and continue up to March 31, 2017.
Even as the Modi government pushes India towards a digital and cashless economy, the premier body for legally resolving cyber-fraud disputes is a practically non-functioning entity.
Digital payments are largely one-sided click-wrap agreements that come with an absence of data and legal protection.
Everyone knows why the previous governor of RBI had to leave. Urjit Patel understands the circumstances under which he assumed charge but has still risen to the occasion.
The worst hit sectors by demonetisation are the automobile, consumer and the realty sector. The banking sector, on the other hand, has had a differential impact.
The increase in deposits and the fall in lending rates is simply because the government has made it impossible to hold cash. When the economy does adjust to a new equilibrium, the fallout could well be significant.
Different political viewpoints tend to linger on different aspects of the critiques of the banks.
Summers, a proponent of doing away with larger-value currency notes, says it is highly problematic for the government to expropriate from even a few innocent victims who do not manage to convert their money.
Harvard economist and author of The Curse of Cash analyses the Indian demonetisation decision against the backdrop of international experience and wonders whether Modi’s plan will work.
After waiting for new currency notes for a few days, many small businesses have already started accepting old currency notes of 500 and 1000. This trend may increase in the coming days
Was the November 11th target for re-opening of ATMs unreasonable? Long-term neglect and quality-of-service issues aren’t helping either.
How will Modi’s so-called surgical strike on black money play out for people with varying occupations and with various reasons for dealing with large cash transaction?
While Bhutan has set a deadline for people to exchange their demonitised notes for smaller denominations, Nepal has banned all transactions in INR.
In a sudden announcement, the prime minister has declared that 500 and 1000 rupee notes are no longer legal tender, and will be replaced by newly designed 500 and 2000 rupee notes.
How big was the breach? Are ATMs still affected? What type of data was stolen? Poor regulation and insufficient information-sharing within the banking industry has left the general public in the dark.
The dual reporting structure comes at a time the bank should be strengthening and not diluting the independence of its risk management team.
While there is a need to encourage greater account utilisation among newly banked women, overall growth in active use is clear.
The security breach happened through a malware in the systems of Hitachi Payments Services, which serves Yes Bank.
The policy statement put out by the RBI is consistent with an accommodative stance of monetary policy and has largely unexceptional goals.
Low interest rates are demanded in the name of helping small and medium-sized enterprises, but in reality, it is the over-leveraged corporates that will most likely benefit from it.
The transactions are being carried out by bank officials under pressure from higher ups to cover up flaws of the Jan Dhan Yojana.
There is a need to coordinate efforts to direct credit to the crucial sectors of the economy to stimulate growth, otherwise the same mistakes made in the past with infrastructure loans will be repeated
An ‘inflation warrior’, Patel is the eighth deputy governor in the Reserve Bank’s history to be made its governor and the sixth with experience at the IMF.
“I was open for staying a little while longer to see [my initiatives] completed, but at the same time I was perfectly happy to go.”
We need to develop solutions to the many shortfalls in the microfinance industry by addressing the true costs of building the market infrastructure.
Women customers are made to jump through hoops to get any work done at a bank – all in the name of ‘RBI rules’.
Instead of looking to long-term solutions, the Modi government is using interest rates as an easy scapegoat to promote the interests of a few.
In his letter, Yechury also demanded that the government release the names of the top 100 loan defaulters and create an action plan to monetise their assets.
From KYC norms and daily balance limits to issuing cheque books and ATM cards, if payment banks are to be successful they need to be built keeping the customer in mind.
Through mergers with its associate banks, SBI will benefit from better reach and network, and will find itself among the world’s largest banks. But it also risks ignoring local sensibilities.