Trinamool Team Detained at up Airport
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EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE THE HINDU DELHI MONDAY, DECEMBER 23, 2019 NEWS 13 EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE INTERVIEW | SHAKTIKANTA DAS ‘Countercyclical steps, structural reforms needed to tackle slowdown’ We are watchful of the evolving food inflation situation — at this point it looks transient. But we need some time to confirm that, says RBI Governor RAGHUVIR SRINIVASAN fore, you cannot keep it inspections and also has a comprehensively look at the the government which is un VIKAS DHOOT representative on the MANOJIT SAHA away; the weightage of which banking structure. der consideration. We have is 4748% in the overall CPI board? How did these tried to strengthen the As he steps into his second year as Reserve Bank of India Go basket. The headline infla escape the attention of the What is the road ahead for regulation. vernor, Shaktikanta Das says the inflation targeting process tion is something that every regulators? PMC Bank? Is RBI open for is working well, and stresses that his priority will be to boost body understands. If you say, merging it with another What will be your growth and resolve financial sector issues. core inflation, that is exclud ■ In this case of the urban bank? immediate priority as you ing food and fuel, you are en cooperative bank, there was enter the second year? It is over three years now That brings in lot of transpa tering into complications no RBI representative on the ■ There is a forensic audit since the Monetary Policy rency. So looking back, I which will not have the kind board. Secondly, it is a fraud. which is under way. We will ■ For a central bank, it is a Committee (MPC) was first think the inflation targeting of clarity and the straightfor What RBI does is supervi get the report may be in constantly evolving situa constituted. The term of the framework has worked well. wardness of the headline sion. RBI does not do any au another fortnight. PMC tion. At this point in time our present committee will end number. dit, RBI does not do any in Bank, with the help of out priority would be growth in 2021. How has been the But has inflation targeting vestigation. If there is a side valuers, they are assess and financial sector issues — experience with it? turned out to be detrimental Are you concerned where fraud, that is investigated by ing the realisable value of the financial sector issues like for growth? inflation is going currently, the law enforcement agen assets which are securitised the NPA resolution in the ■ On the whole, the inflation in the immediate short cies. Supervision is done on by the borrower group. The banks, and our expectation targeting has worked well, in ■ The provision in the RBI term, especially food PRASHANT NAKWE the basis of certified records other assets, including land is that the resolution process many senses. Number one, it Act is very clear. It is to main inflation? by the bank’s management. assets, the realisable value of become even faster. That is is a committeebased ap tain price stability, keeping [for loan pricing] which we <> Without getting into When that is produced be that asset is also been as one; second is the NBFC sec proach, so more minds are in mind the objective of ■ Broadly, we have articulat had introduced from Octob categorisation of the fore the RBI supervision sessed. So with the permis tor which we are monitoring. going into decisionmaking. growth. Therefore, the ed that it is a matter which er 1. Going forward, the im current slowdown, team, there is no reason why sion of the court, the effort is Third is carrying out neces There are three external ex prime target is inflation. You needs to be closely moni pact of external benchmark the focus should be the RBI should doubt its to monetise those assets and sary changes in the regula perts which bring in outside have to suitably factor in the tored, that is, the food infla will be felt more and more. on steps needed by correctness. put that money into the tion of urban cooperative perspective. This definitely growth aspect also. There tion. We have to be watchful fiscal and monetary Having said that, and not bank. banks. improves the quality of deci fore, there is scope to give of the evolving situation and Do you think there are related to the PMC Bank cri For that we have formed a authorities sionmaking and the out due weightage to growth evolving numbers. But at this structural issues also behind sis, even well before the PMC coordination mechanism In the recent past, couple of come or final decision itself. also. point in time, it also looks the growth slowdown? Bank crisis, in our central consisting of senior officer times, the RBI has had to Since the time the MPC transient. And going for ■ Actually 100 are being board meeting it was decid from Economic Offences publicly state that the health has been in place, by and Do you think the target ward, it should come down. ■ We have said in our annual monitored. Fifty are being ed to set up a separate de Wing, the Enforcement Di of the banking system is fine large, inflation has remained should be core inflation But we need some time to report that it would appear intensively done by the cen partment of supervision and rectorate, RBI and the admi post the PMC Bank crisis. Do within the target. Of course, rather than the headline CPI watch that it is indeed that the slowdown is cyclical. tral office. From 51 to 100 are a department of regulation. nistrator of the PMC Bank to you find a case to revisit the one can argue that headline inflation? transient. However, there are structu monitored by regional offic That was because there was quicken the process of the deposit insurance limit? inflation is impacted by so ral factors also. Without get es [of the RBI]. Wherever lot of interconnectedness monetisation. So only when many factors to which RBI ■ We are still about little less Despite all that the RBI has ting into categorisation of there are vulnerabilities, we between banks, NBFCs, we have clarity with regard ■ We issued those state has no influence. But at the than two years away from done, monetary the current slowdown, the have identified them and our HFCs. to the actual realisable value ments because of unneces end of the day, inflation has the five year of current infla transmission has been focus should be on what officers are constantly en Along with that, we have of all these assets which I sary rumours floating in the remained around 4% over tion targeting regime. I think unsatisfactory. What are the steps need to be taken by the gaged with the promoters said we will also have a col have referred to, we will be market, various names were the last three years so that it is too early to comment on options before you now? fiscal and monetary authori and management, and nudg lege of supervision to pro able to decide on a next step. floating saying this bank is in the targets have been main that. The present scheme is ties. There has to be some ing them to take necessary, vide better skill to our offic problem. It was creating un tained. Without a target, we going very well. As we go ■ First thing is transmission countercyclical steps. There marketrelated measures like ers. We are creating a What are the regulatory necessary, unjustified uncer had a situation about five or closer to the date, the go does take time. Two, the sys will have to be structural re to mobilise additional capital separate cadre for supervi changes proposed for the tainties in the market. So as six years ago when CPI [con vernment will take a view on tem liquidity which was in forms which have been un and to deleverage, to show sion officers. We are also go regulation of cooperative the regulator of banks, we sumer price index] inflation the inflation target for next deficit till the end of May, is dertaken and the process better recoveries, etc. They ing to use technology, data banks? thought it was necessary that was 10%. five years. Of course, the RBI in surplus from June 1 on needs to be continued. [the number of such NBFCs] analytics, in a big way. Plus we give a clear message that Also the minutes of the will be suitably consulted by wards and hugely surplus. are not too many. we are also internally setting ■ One aspect is changes to the banking system is safe. MPC meeting are also pu the government. So far it Every day, we are absorbing RBI has identified 50 large up a research and analysis regulation which are within Deposit insurance is a blished which brings in a looks to have worked quite [₹] twoandahalf lakh crore. NBFCs which are closely Post the PMC Bank failure wing within the department RBI, which we are going matter which the Deposit In greater transparency to the well. So we have kept the system monitored. Out of the 50, and the PNB scam, the of supervision which will col ahead and doing it. The oth surance and Credit Guaran process of decisionmaking. What matters more for the in comfortable and surplus how many are stressed. Are question that arises is how late and correlate all the da er is making legislative tee Corporation will decide. The minutes also reflect the common man of our country liquidity.