The Hindu Business Line : Nabard union assails RBI credit policy

Thiruvananthapuram April 30 The All-India Nabard (National Bank for Agriculture and Rural Development) Employees Association has criticised the Annual Monetary Policy statement of the Reserve Bank of India.

"It's astonishing to find that the Central Bank has done precious little to address the problems on the farm front when suicides by despondent farmers are still being reported," said Mr Jose T. Abraham, Vice-President of the association.

`NABARD NEGLECTED'

The central bank has also not initiated productive steps for enhancing the low-cost resource base of Nabard, the principal agri-credit bank destined to play the social banking role. Nor has it done anything to provide farm credit at annualised interest rates of four per cent as proposed by the National Commission on farmers.

Mr Abraham faulted the regulator for pushing instead zealously for fuller convertibility of the rupee on the capital account, which would only drag the country irreversibly into an exchange rate crisis. A careful analysis of the Reserve Bank balance sheet will show the tremendous price being paid for accumulating record forex reserves.

In this context, the decisions to set up working groups on interest rate futures market and currency futures are also retrograde, Mr Abraham said.

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