Saturday, October 6, 2012

A BUNCH OF FRAGRANT ROSES


P.P.Ramachandran, 76 years old (in fact young), is a postgraduate in Economics, postgraduate in Comparative Mythology, and Certificate and Diploma holder in Sanskrit from Mumbai University. He has served in the Reserve Bank of India for 40 years and retired as Deputy General Manager. He writes for a number of journals and is a prolific reviewer of books and a book selector for libraries. He gives lectures regularly to audiences, young and old, on different disciplines. He is a rare bird — a literary banker. His hobbies are reading, writing, and watching English and Malayalam movies and art-films.  

On his 76th birthday today, the book entitled "A BUNCH OF FRAGRANT ROSES" authored by P.P.Ramachandran is published Academic Foundation. The book has a Foreword by Shri S.S.Tarapore, Former Deputy Governor of RBI.
                                             

S.S.Tarapore
Foreword

P.P. Ramachandran, “Chandru” as he is affectionately known, was an official of the Reserve Bank of India for forty years. The stereotyped view of a central banker is a dry, humourless person focussed exclusively on his profession. Ramachandran is one of the rare birds who just cannot be classified into a cubby hole.

Ramachandran’s canvas is the whole wide world and he paints life with a vignette and readers will find this Collectors’ Item an unputdownable book. The sheer breadth of his vision is wonderful to the point of bewilderment. In this slim volume, Ramachandran deftly handles subjects as widely variegated as contemporary issues, religion, science, the fine arts, mythology, social issues and biographical sketches.

Ramachandran is a reconnoitre of events and encounters with eminent personalities. He is at his scintillating best handling vastly different subjects and in one life time he has successively performed as central banker, journalist, social worker, critic, biographer and many more.

At the Reserve Bank of India functions he would regale the audience with his amazing memory of events and inter-action with prominent personalities. Like the Village School Master in Oliver Goldsmith’s ‘The Deserted Village’ it could be said of Ramachandran:  “And still they gaz’d and still the wonder grew, that one small head could carry all he knew”.

Ramachandran’s writings are a Sonata-- a sheaf of memories-- and the reader’s appetite would be whetted by this book and look forward to future volumes by him. Ramachandran is truly a Man for All Seasons.
                                                                                                                                    ABOUT THE BOOK

Here is a delightful medley of essays, articles, speeches, travelogues, book reviews and correspondence with the greats. 

The book is divided into five sections.

The first section includes his tributes to great personalities at various functions. We have a chance to read his tribute to Vinda Karandikar, Durga Bhagwat, Albert Einstein, Dwaram Venkataswamy Naidu, M.S. Subbulakshmi, Mumbai’s bookseller T.N.Shanbag, and S. Chandrasekhar. 

Section two consists of 16 book reviews. Ramachandran is a regular reviewer of books for Free Press Journal and “Shanmukha”. He covers a variety of subjects with an authority that is impressive. 

The third section is dedicated to travelogues. These are based on his travels to Europe, America, Ashtavinayak, Uttaranchal and Konkan and contain vignettes of a delightful nature. 

The fourth section covers essays on a variety of subjects such as religion, science, mythology, and light articles on a number  of interesting subjects.

The fifth section covers his correspondence with great personalities like Rajaji, Radhakrishnan,  Khushwant Singh, H.R.F. Keating , Pope John Paul I I and Paul Gallico.

In sum, this book is a veritable feast.

My View on "Tenure for Non-official Directors in RBI"


The decision of the Government for limiting to two terms (each of 4 years) the tenure of non official directors in the RBI Board has not come a day soon. In fact, the continuance in the past of non-official directors on the Board for as long as 10 years or more was the result of the Government not making up its mind on the names sent to them by the RBI for being appointed to its Board. It would be advisable for the Government, in consultation with the RBI, to lay down the criteria ( and make it public) for being considered for the position in the RBI Board. On the basis of the criteria, the persons could be left to be identified by the RBI Governor and the number to be identified would depend on the vacancies. The number could be larger than the vacancies in the Board and the final selection would have to be done by the Finance Secretary and the Governor sitting together on the basis of full agreement between them. Governor should have a full say in the appointments.



In this context, it would  be interesting to recount an incident twenty four years ago while I was serving  as  the Joint Secretary and acting Secretary to the RBI Board.  Shri Talwar, who had distinguished himself not only by his knowledge, integrity but also by his fierce independence as the Chairman of SBI and Chairman of IDBI,was approached by me over phone ( as per instructions) and requested to let me have some particulars about him for being considered for a position in the RBI Board. He asked me the purpose for the enquiry and when I had to reveal the purpose, he promptly and politely told me that he was not interested in the position! Later, I read in one of his articles that Board positions in India, whether it is a Statutory Corporation or a company, are filled only to comply with the statutory requirements and the Boards rarely serve any useful purpose! One wonders whether this was the reason which had prompted him not to show any interest in serving on the RBI Board!! In the opinion of some keen observers of the Indian scene,' Independent Director' is a contradiction in terms !!


- A. Chandramouliswaran (via e-mail)

RBI quiz for kids on Oct 12

....... The Reserve Bank of India, Kanpur, is organising an All India Inter School Quiz contest at Vigyan Parishad, Prayag on October 12. The aim is to apprise students about the RBI and role and history of other financial institutions, ordinary banking, economics, national and international current affairs and progress of the country.  Assistant Manager Jivan Kumar Chowdhaury said children from 120 schools will participate in the quiz........

Vanishing coins are turned into razors and ornaments


Indian intelligence officials have cracked the mystery behind eastern India's acute coin shortage: the money is being melted down and smuggled to Bangladesh where they are turned into razor blades and ornaments. "At least twice, we seized sacks of Indian coins from people near the Bangladesh border in recent years. Those who were carrying them confessed that the coins were going to the other side of the border. They also said that the metals from these coins were being used to make shaving blades and shining steel ornaments in Bangladesh,"........


Frivolous complaints bog down selection of public sector banks chairmen


NEW DELHI: The task of appointing chairmen of state-run banks is proving to be a challenge for the government, with its vigilance machinery getting bogged down in a myriad of corruption charges against selected candidates. Since taking office in July, P Chidambaram has cleared the selection of chairmen for six state-run banks, including lateral movement of two bank chiefs. However, two banks-Bank of India and Canara Bank-have been functioning without a chief since Monday.........




Government presses RBI on new bank licences

....The government, however, is determined to set the ball rolling in this season of reforms. RBI had said it was awaiting amendments in the Banking Regulation Act before issuing the final guidelines. RBI wants more power, such as dissolving a bank’s board, before it allows new entrants. However, “the ministry said the Act will be amended but it should not hold RBI from forming the guidelines”, said another source. Also, there were opinions that at least non-banking finance companies (NBFCs) be allowed to set up banks till the Act was amended. Interestingly, RBI has asked the government to extend the tenure of one of its Deputy Governors, Anand Sinha, by a year. Sinha will complete his two-year term in February 2013 and heads the department of banking operations and development that will issue the final guidelines on new banking licences.............

SC seeks law officers assistance on plea against FDI in retail

........During the hearing, the bench also wanted to know from Sharma whether subsequent to the government's circular on the issue of FDI in retail, any follow up circular was issued by the Reserve Bank of India (RBI) as there is some missing link in the petition. The advocate said the RBI has not issued any regulation after 2008................

Working Group on Cloud computing option for small size UCBs

......The study observed that many Urban Cooperative banks have been providing IT support to other cooperative banks which included sharing of Data Centre and DR sites, Automated Teller Machines and Payment Gateways. Some of these banks were also providing their software solutions as outright sale or fees based ASP model. It was observed that two leading software company had been also offering cloud like services which included core banking as well as many other solutions such as HR solutions, e-mail, storage, etc which the banks could choose. These services were mostly on private cloud like set up. The Working Group has recommended caution while adopting cloud computing solutions by the Urban Cooperative banks till such time that all issues related to its standards and technology management processes are understood and resolved.................

Bank NPAs may cross Rs 2 lakh crore by March

................The study titled ‘Growing Heat of NPAs on Banking Sector’ released by RBI Deputy Governor Dr K C Chakrabarty at a function here on Friday said the continuing pressures on Indian economy would result in pushing the NPA ratio from 2.94 in June, 2012 to about 3.75 by the end of the current fiscal. “A plethora of issues like rising trends in stress assets, increased provisioning, issues of asset quality and challenges of requisitioning additional capital to keep growing business together with burgeoning twin deficits of fiscal and current accounts have collectively contributed to this dismal situation of increased NPA levels and falling bottom line,” according to the study. ..............

RBI's projection of budget deficit will be shape monetary policy: Subbarao


NEW DELHI: The Reserve Bank of India is to make a projection of India's probable budget deficit this fiscal year that will shape monetary policy, Governor Duvvuri Subbarao said. "It is not yet clear what the final fiscal deficit number for this year is going to be," Subbarao said in response to questions at a briefing in India's southern state of Puducherry on Thursday............


Read - ET

Banks will follow suit if RBI cuts rate, says bankers


Indian banks will reduce their interest rates if the Reserve Bank of India cuts its key lending rate at its mid-term policy review on October 30, K.R. Kamath, chairman of the Indian Banks' Association, assured the Reserve Bank of India (RBI) Governor Duvvuri Subbarao on Friday. Mr Kamath, who also heads the state-run Punjab National Bank, and other top bankers met Dr Subbarao and the four deputy governors of the central bank at a pre-policy meeting ahead of its second quarter monetary policy review scheduled for 30 October..........

The tough road ahead for financial sector reforms

..........Of India’s financial regulators, RBI enjoys relatively greater autonomy because of three key differentiating factors: greater control over finances, a well-paid team of in-house technocrats, and a convention allowing independence in central banking. Autonomy allowed RBI under former Governor Y.V.Reddy to take counter-cyclical measures ahead of the global financial crisis in 2008 despite being under pressure from the Centre not to do so. Reddy’s interventions saved the economy from major damage during the crisis. Although RBI has lost sheen since then, it still remains among the better managed central banks in the developing world.........

RBI monetary policy awaits govt data on fiscal deficit: Subbarao

.......On the steps government has taken to control fisal deficit, he said, “What else the government has to do is a question of details. But as far as RBI is concerned, the final number will be important. How they get it will be important for the country, for the economy and for all of us. But I am saying, in the short term, for the monetary policy calculation, the number is important.” Pointing that RBI will take all the views on economic growth into consideration when it comes out with its next monetary policy review slates for October 30, Subbarao said, “RBI’s effort is to curb inflation while supporting growth.”.......

Bankers prefer CRR cut

Banks, on Friday, favoured reduction in the Cash Reserve Ratio (CRR) rather than the repo rate cut in the forthcoming monetary policy review as it would reduce their cost of funds and make monetary transmission faster..........

State Bank of India Chairman: No Room for More Loans to Kingfisher Air

......."Banks are still giving time to Mr. Mallya to get an investor, because if we pull the plug, it [the situation] would be irretrievable," Mr. Chaudhuri said. He was speaking after a meeting of officials from the Indian banking industry and the Reserve Bank of India ahead of the central bank's next rate-setting meeting on Oct. 30........

Structure of holding company for public sector banks: Finance ministry seeks RBI's views

.........."The finance minister had also sought more clarity and hence it was suggested that consultations should be held with the RBI on issues such as equity structure, share-holding pattern and inter-linkages between banks, which may arise due to such a structure," a finance ministry official, who did not want to be named, said. Finance Minister P Chidambaram is expected to give approval for the holding companies after the Reserve Bank of India's suggestions have been incorporated in the proposed model, the official said......

Chidambaram to visit Mumbai today


P Chidambaram is set to visit Mumbai on Saturday for the first time after taking over as finance minister. On his agenda are meetings with officials of the Reserve Bank of India (RBI), the Securities and Exchange Board of India (Sebi) and stock exchanges. The minister will also meet institutional investors. According to senior government officials, Chidambaram’s schedule will begin from Mint Road, headquarters of the RBI, where he is expected to discuss the fiscal and monetary situation with the top brass of the banking regulator. The minister is expected to impress upon the RBI that the government is serious about bringing down the fiscal deficit, and encourage the apex bank to cut rates. The government also wants the RBI to speed up work for giving licences for new banks.......