News: Recently, RBI’s Internal Working Group (IWG) on ownership guidelines of private sector banks recommended that large corporates and industrial houses be allowed to be promoters of banks. However, recent trends suggest that the financial system can meet the growing demand for credit for the next three to five years, without taking on the risk… Continue reading On corporatisation of banks: Companies Needn’t Own Banks
Author: Ram Manohar
The NFT promise is overhyped even for creative folks
News: The NFT promise is overhyped. Recently, a column titled ‘NFTs are overhyped but useful for a creative economy’ appeared in Mint. The author of that article opines that non-fungible tokens (NFTs) and the allied technology can alleviate the work-monetization challenges. Without NFTs, the artists and other independent content creators, are left at the mercy… Continue reading The NFT promise is overhyped even for creative folks
RBI must tackle surplus liquidity on way to policy normalisation
News: Recently, the Monetary Policy Committee (MPC) voted to maintain status quo on policy rates. Some of the key decisions that were taken at the recent the Monetary Policy Committee meeting are – – The repo rate is maintained at 4% and the reverse repo rate at 3.35%. – Forecasts of FY22 GDP growth and… Continue reading RBI must tackle surplus liquidity on way to policy normalisation
Real Cost of MSP For All Crops
News: Even as the central government has announced its withdrawal of the three farm laws, the demands for legalising MSP have grown stronger. Why Legalising MSP is a bad idea? Firstly, The expansion of MSP would impose trillions of rupees worth of additional burden on the taxpayer in the forthcoming decade. With the current procurement… Continue reading Real Cost of MSP For All Crops
On fiscal deficit: The turn of the Centre
News: The Union Finance Minister Nirmala Sitharaman will present her 4th consecutive Budget in just about eight weeks from now. It is expected that Ms Sitharaman would achieve a 2.7 percentage point reduction in the deficit from 9.5% in 2020-21 to 6.8% in 2021-22. This steep reduction will provide a lot of flexibility in managing… Continue reading On fiscal deficit: The turn of the Centre
India’s labour market distress
News: Data from various employment surveys indicates that India’s growth model is in trouble. On what basis it is said that India’s growth model is in trouble? Labour participation has dropped: The recent data from the Centre for Monitoring Indian Economy (CMIE), suggests that, the labour participation rate has slipped for consecutive months. As per… Continue reading India’s labour market distress
Mediation Bill: Not getting the Act together
News: The Ministry of Law and Justice has placed the Draft Mediation Bill, 2021 in public domain seeking feedback and suggestions from all stakeholders. What is the significance of the bill? Firstly, it recognises that mediation has to be treated as a profession. This is a significant development compared to the previous mediated schemes. Secondly,… Continue reading Mediation Bill: Not getting the Act together
Surveillance as governance
News: Recently, Amnesty International raised concerns that extensive surveillance of Hyderabad is putting human rights at risk. How surveillance is carried out in Hyderabad? It largely follows a three-pronged approach. – Wide web of CCTV cameras: For example, CCTV coverage in two cities (Kala Pathar and Kishan Bagh) is 53.7% and 62.7% respectively according to… Continue reading Surveillance as governance
Proposal to create bad bank for farm loans raises several issues that need careful deliberation
News: Recently, at a meeting of the Indian Banks’ Association, the idea of floating an asset reconstruction company (ARC) to improve the recovery from bad loans in the agricultural sector was discussed. As per the RBI’s Financial Stability Report, bad loans for the agricultural sector stood at 9.8% at the end of March 2021. In… Continue reading Proposal to create bad bank for farm loans raises several issues that need careful deliberation
MSP is no silver bullet to boost farmers’ income
News: Even as the central government has announced its withdrawal of the three farm laws, farmer unions have persisted in their demand to make the minimum support price (MSP) a legal entitlement. But, even if it becomes a legal right, the MSP, in its current form, is unlikely to resolve the problems of Indian farmers… Continue reading MSP is no silver bullet to boost farmers’ income
