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Centre uses banks to violate states’ space: Ex-RBI Governor
Hyderabad, Oct 6 (IANS) The Central government uses banks as a weapon to penetrate into jurisdiction of states, said former Reserve Bank of India (RBI) Governor Y.V. Reddy on Saturday.
He said by controlling the banking system, the government of India is having access to extra budgetary resources or unaccountable resources to penetrate into the policies which it could not otherwise do.
Speaking at the Indian School of Business (ISB) here, Reddy said since the Union government had no developmental staff in the states, banks were used to penetrate into their jurisdiction.
He attributed the problem of Indian banking industry to the dual control by the Central government and the RBI.
“Recently, we had Urjit Patel (RBI Governor) as saying that regulation should be ownership-neutral. He says I don’t have regulatory powers but the government says RBI has enough regulatory powers. What is the truth? The truth is the problem of dual control,” he said.
Reddy said the Narasimhan committee recommended that dual control should be done away with, but it has not ended to date.
He identified political economy as another problem and pointed out that unlike in the past, there are many MPs who are businessmen and many businessmen who are MPs with the public sector banks providing the link.
He was delivering key note address at “Artha 2018”, ISB’s annual financial conclave.
Reddy believes that solution for problem in agriculture lies outside agriculture as the sector faces policy-induced risks and a host of uncertainties.
“Will you put more money in expanding industry or contracting industry?” he asked the students while pointing out that agriculture accounts for 15-16 per cent of the GDP and it is likely to further come down.
Reddy said he was an unwilling party to the biggest farm loan waiver in the country. He was referring to loan waiver by the UPA government in 2008 when he was the RBI Governor.
He believes that farm loan waiver by the Centre is bigger evil than loan waiver by states. “All farmers all over the country can’t be distressed,” he remarked.
“If Industry doesn’t repay, you are a wilful defaulter and you are a criminal. If agriculture doesn’t pay you are a distressed farmer. We are not able to define who is a distressed farmer. Distressed farmer is not somebody who is able to get money from bank and certainly not the one who can’t afford to repay,” he said claiming that only 10 per cent of the farmers get bank loans.
On financial inclusion, he said it was different from economic, social and political inclusion. “We talk as though financial inclusion is going to abolish poverty in India. Financial inclusion is only for those who have finance and if they are not included they will be included,” he added.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
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