{"id":224083,"date":"2023-01-28T20:43:35","date_gmt":"2023-01-28T15:13:35","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=224083"},"modified":"2023-02-20T15:01:51","modified_gmt":"2023-02-20T09:31:51","slug":"regional-rbis-the-case-for-baby-rbis","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/regional-rbis-the-case-for-baby-rbis\/","title":{"rendered":"Regional RBIs: The case for baby RBIs"},"content":{"rendered":"\n

Source:<\/span><\/b>\u00a0The post is based on the article <\/span>\u201cThe case for baby RBIs\u201d <\/span><\/b>published in<\/span> the <\/span>Business Standard<\/span><\/b> on <\/span>28th January 2023<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n

Syllabus: <\/span><\/b>GS3- Indian economy and mobilisation of resources<\/span>\u00a0<\/span><\/p>\n

Relevance<\/span><\/b>: Issues relating to monetary policy<\/span>\u00a0<\/span><\/p>\n

News<\/span><\/b>: The article explains the possibility of regional RBIs for India.<\/span>\u00a0<\/span><\/p>\n

What is the need for regional RBIs in India?<\/span><\/b>\u00a0<\/span><\/h2>\n

The administration, the legislature, the judiciary, and a host of other institutions have <\/span>state-level bodies<\/span><\/b>. All also perform a <\/span>regulatory role<\/span><\/b>. This can be applied to India\u2019s monetary authority, the RBI.<\/span>\u00a0<\/span><\/p>\n

Despite its <\/span>admirable competence and proven track record<\/span><\/b>, the RBI is perhaps not working as expected. The task before it is <\/span>simply too large<\/span><\/b>. India has become very big on all economic parameters.<\/span>\u00a0<\/span><\/p>\n

RBI doesn\u2019t have the<\/span> capacity to supervise an economy<\/span><\/b> that\u2019s growing so fast and becoming larger by the year.\u00a0<\/span>\u00a0<\/span><\/p>\n

There exists variation in <\/span>regional inflation rate<\/span><\/b>s. The <\/span>all-India inflation number <\/span><\/b>is just too broad to be useful. It misses the considerable<\/span> inter-state variation<\/span><\/b>. It fails to capture things like <\/span>urban-rural divergence<\/span><\/b> within the same state.<\/span>\u00a0<\/span><\/p>\n

The US has <\/span>12 Federal Reserve Banks<\/span><\/b>, whose 24 branches constitute the Federal Reserve System. Each of these operates within the boundaries of its own designated area.<\/span>\u00a0<\/span><\/p>\n

A key aspect of the US state Feds is to <\/span>represent the region in the Federal Reserve System<\/span><\/b>. For this, they possess a deep understanding of the regional economy.<\/span>\u00a0<\/span><\/p>\n

RBI also has 25 <\/span>regional offices<\/span><\/b>. It is twice more than twice the number of the US Reserve Banks. But these <\/span>aren\u2019t independent entities<\/span><\/b>. They are <\/span>branches with a vertical hierarchy<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Source:\u00a0The post is based on the article \u201cThe case for baby RBIs\u201d published in the Business Standard on 28th January 2023.\u00a0 Syllabus: GS3- Indian economy and mobilisation of resources\u00a0 Relevance: Issues relating to monetary policy\u00a0 News: The article explains the possibility of regional RBIs for India.\u00a0 What is the need for regional RBIs in India?\u00a0… Continue reading Regional RBIs: The case for baby RBIs<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216],"class_list":["post-224083","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704918438},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/224083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=224083"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/224083\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=224083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=224083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=224083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}