We have a ecosystem of self proclaimed and boorish experts in India.
What these people do - just for kicks is throw some really random , meaningless and irrelevant stuff at some one in power. In this case, it is RBI governor.
People usually ignore this bull sh^t because they do not understand. people who understand are now confused thanks to this kind of bull sh^t relentlessly hurled at us - for no obvious reason other than some desperate guy wanting attention.
People are as it is confused and misinformed on policies. what these phony experts do is aggravate the confusion and create chaos which ultimately causes unrest and mistrust.
Media has caused mistrust in citizens on organs of the government by constantly hurling baseless accusation, doubts , conspiracy theories and other cr$p.
May be it's time for ordinary citizens unite and question the relevance of these bull sh^t mongers and media's role in general in public life.
This article in itself reveals why we have trash like media and whose idea freedom of press is shouting, attention grabbing bull sh^t dissemination without a rhyme or reason ( and certainly no purpose).
Its like an attempt to show off that the author could directly challenge the RBI governor with his smarts and believes that nonsensical rhetoric makes him looks like AN EXPERT.
And general assumption is readers are in awe and are amazed to see these lengthy and tiring esoteric bull sh^t .
Lets take 3rd one ( randomly)
The RBI vision document on payments (covering the period between 2015 and 2018) spoke about setting up of an external committee on payments. Has anybody heard about this?
WHY DO YOU NEED TO KNOW ABOUT RBI'S VISION OF PAYMENT DOCUMENT ? AND WHAT EXACTLY IS THE PURPOSE OF THAT ?
How is any SINGLE economic indicator or regulatory aspect of India is impacted by some 2015-18 payments document ( and external at that) not being known to public . Just for argument's sake.
THIS IS THE KIND OF BULL SH^T HURLED AT US READERS ON A DAILY BASIS BY THESE DIME A DOZEN PHONY EXPERTS WHO SPEAK FOR THE HECK OF SPEAKING WITHOUT CONTEXT AND CERTAINLY WITHOUT ANY SUBSTANCE.
This article in itself reveals why we have trash like media and whose idea freedom of press is shouting, attention grabbing bull sh^t dissemination without a rhyme or reason ( and certainly no purpose).
This moron, in his desperation to show off that he could directly challenge the RBI governor with his bull sh^t believes that nonsensical rhetoric makes him looks like AN EXPERT.
Not all readers are lay readers and fools to fall for some meaningless esoteric bull sh^t.
Lets take 3rd one ( randomly)
The RBI vision document on payments (covering the period between 2015 and 2018) spoke about setting up of an external committee on payments. Has anybody heard about this?
WHY DO YOU NEED TO KNOW ABOUT RBI'S VISION OF PAYMENT DOCUMENT ? AND WHAT EXACTLY IS THE PURPOSE OF THAT ?
How is any SINGLE economic indicator or regulatory aspect of India is impacted by some 2015-18 payments document ( and external at that) not being known to public . Just for argument's sake.
THIS IS THE KIND OF BULL SH^T HURLED AT US READERS ON A DAILY BASIS BY THESE DIME A DOZEN PHONY EXPERTS WHO SPEAK FOR THE HECK OF SPEAKING WITHOUT CONTEXT AND CERTAINLY WITHOUT ANY SUBSTANCE.
This article in itself reveals why we have trash like media and whose idea freedom of press is shouting, attention grabbing bull sh^t dissemination without a rhyme or reason ( and certainly no purpose).
This moron, in his desperation to show off that he could directly challenge the RBI governor with his bull sh^t believes that nonsensical rhetoric makes him looks like AN EXPERT.
Not all readers are lay readers and fools to fall for some meaningless esoteric bull sh^t.
Lets take 3rd one ( randomly)
The RBI vision document on payments (covering the period between 2015 and 2018) spoke about setting up of an external committee on payments. Has anybody heard about this?
WHY DO YOU NEED TO KNOW ABOUT RBI'S VISION OF PAYMENT DOCUMENT ? AND WHAT EXACTLY IS THE PURPOSE OF THAT ?
How is any SINGLE economic indicator or regulatory aspect of India is impacted by some 2015-18 payments document ( and external at that) not being known to public . Just for argument's sake.
THIS IS THE KIND OF BULL SH^T HURLED AT US READERS ON A DAILY BASIS BY THESE DIME A DOZEN PHONY EXPERTS WHO SPEAK FOR THE HECK OF SPEAKING WITHOUT CONTEXT AND CERTAINLY WITHOUT ANY SUBSTANCE.
These directions define Officially valid documents for KYC. Definition does not include ID card issued by Central or State Govt as employer showing name, DoB, address!
Successive RBI governors have destroyed profitability of banks. Ultimately, the only way to ensure strength of the banking system, is to ensure that banks build up enough reserves in good times, to be able to tide over bad times.
RBI no longer pays interest on CRR Balances. When seen in the context of low interest rates, a 4% SB rate creates a hard floor for banks, and if RBI does not pay interest on 4% CRR balances, banks end up hitting that hard floor harder. Rather than focus on "curbing" liquidity, it is better for the RBI to focus on managing liquidity - paying interest on CRR allows the RBI to have 2 levers manage liquidity rather than just one - the actual level of CRR, and the amount of interest on the CRR. Paying interest on CRR is also the best way to ensure transmission of rate cuts, because it frees up banks from the pain of hitting that hard floor.
We had a problem with lending rates not being flexible enough in the Prime Rate environment, and this was fixed by shifting to Base Rate. However, RBI took the game even further with Marginal Cost Lending Rate - making loans tied to the marginal cost of funds. A cut in the marginal rate of funds benefits banks only on the small portion of funds raised at the marginal rate, but hurts them on Entire Loan portfolio. But worse than that, RBI is now shifting to external benchmarks, which increases risk even more. Banks wont have a lower cost of funds if external benchmark goes down, but are forced to lend at che
Re: Many more things RBI Governor should do
by two paisa on Jan 11, 2019 05:35 PM
The net impact on Bank Profitability because of not paying Interest on CRR Balances, is to the tune of about Rs 10,000 crores each year. When seen over the last 12 years, the net impact is over Rs 100,000 crores.
The cost to the banking system, by switching to MCLR, is over Rs 100,000 crores a year, for last 5 years. Totaling over Rs 500,000 crores.
If you see these figures, it is immediately obvious that these aren't small amounts. And more importantly, the lost Rs 600,000 crores of bank profitability is enough to offset HALF of the GROSS NPAs. Considering that banks have already provided for over 50% of their Gross NPAs, just these 2 measures effectively wipe out the Net NPA problem of banks!
The RBI has accumulated Rs 120,000 crores over last 12 years, by not paying interest on CRR balances. When seen in this light, the build up in RBI reserves has come from denying banks their rightful money!
The Central Government is left holding the dirty end of the stick, because it is forced to cough up huge money to recapitalize the banks, whereas the RBI is hurting these same banks with its ill thought out policies, and making money for itself.
Considering this aspect, I do not see anything wrong with the Central Government seeking a share of RBI Reserves to make up for the cost of recapitalizing the banks. If RBI has done the damage, it is better if RBI pays for fixing the damage also.
We should not get caught up in ideal scenario conversations, because scenario is not ideal.
