The world is getting globalised faster than we care to admit. Economic blocs can ensure a stable quantum of business and help leverage its strength in numbers. The blocs hone skills in productivity and innovation in competitive environs within and without a group. We must join every major fora, be proactive and learn to be astute in participative global trade. Manufacturing and leisure services provide huge employment and fillip to GDP with better wealth distribution. Any economy is a 30-year cycle. We had our big reforms in 1991 and one is
This refers to the report ‘RBI to audit 9,500 NBFCs to check on levels of compliance’ (January 4). The passing observation that “the RBI’s supervisory staff strength is only about 1500” says much more than the words and number contained therein.
The RBI is now being burdened with several responsibilities which traditional central banks have transferred to new arms.
Outsourcing of core responsibilities in financial sector cannot replace in-house skills development in the long term. RBI’s depleting staff strength is affecting institutional efficiency, especially its regulatory and supervisory outreach to financial institutions.
The answer lies in building new specialised regulatory institutions to handle non-banks and cooperatives having stakes in banking business.
Banking on mitras
This refers to the news report “To augment incomes bank mitras may be allowed to expand offerings” (January 4). The proposed review of CS Setty committee recommendations is timely and assist banks in cross selling of third-party insurance and mutual fund products on large scale.
But sale of third-party products where the after-sale services to client should be prudent as any laxity could lead to consumer grievances and disputes. On sharing of commission between principal bank and the designated BC, the GST and other tax laws applicable on revenue sharing between principal and agent need to be structured properly. With adequate training to bank mitras, the scheme can be implemented successfully.
This refers to “Playing Chinese checkers in 2023”(January 4). Since there is an enormous gap of economic and military power between India and China, India’s first priority should be to decrease its dependence on China for supply of products and services, especially critical products.
IMF’s gloomy picture of the Chinese economy for 2023 should provide an opportunity for India to replace China in global market.
For this, the government and business need to collaborate closely — by facilitating ease of business and optimising production of quality goods and services.