Fiscal and Monetary Policies at X-Roads
While some leaders, particularly the politicians cutting across party lines, have been advocating that RBI should monetize the fiscal deficit of the government in order to pump in more liquidity…
Banking
Business Cycles, Structural Issues and Challenges to Bharat’s Economy
Business cycles are common across the world and their pattern is mostly predictable. Whereas, structural issues are those that are caused by certain changes in the market which are basic…
Road Map for Bharat’s Banking Reforms, a Work in Progress
In 1969, Bharatiya government nationalized 14 banks followed by another 6 banks in 1980. Along with SBI group, which had 7 banks under its umbrella, the public sector banks number…
Prompt Corrective Action Vs Politically Correct Action
Bharat’s banking sector is now getting into vicious cycle of NPA-led dip in bank profitability- weaker bank balance sheets- decline in incremental bank credit. This is not an overnight phenomenon…
Bank Frauds in Bharat- Issues and Challenges
According to statistics given in the RTI query filed by economist Prasenjit Bose, total value of bank frauds where the amount involved was more than Rs. 1 Lakh in each…
Banks with Liability Limited by Deposits – FRDI Act
The government’s proposal to introduce the FRDI Act (Financial Resolution and Deposit Insurance Act) by including the bail in clause has led to an apprehension about the status of the…
Lessons from the PNB Fraud
The recent Punjab National Bank (PNB) episode highlights the need for effective internal controls in the banking system and swift action by the regulators, law enforcing agencies and the government….
FRDI Bill and Protection to Depositors’ Money in Banks
Financial Resolution and Deposit Insurance (FRDI) Bill was tabled in Lok Sabha on 8th August 2017 and referred to a joint parliamentary committee represented by 30 members from both Lok…
Bharat’s Golden Opportunity – An Alternative for the Bank Capitalization Problem
This article proposes to discuss at length on the gold monetization scheme and suggest the measures to make it more effective. Nearly two years after it was first launched, the…
Mobiles may make banks extinct
The mobile phone is now being used for small-time financial activities, such as information on prices, billing settlements, etc. We have service providers like Air Tel/Jio providing internet-based TV channels…