6 Mentations Inside Raguram Rajans Mind
BENGALURU: RBI governor Raghuram Rajan’s service tenure is going to come to an end in just 3 weeks, only, he remains indefinite with respect to his future plans. Raghuram Rajan had assumed the position of governor of RBI at the time of forex volatility in 2013, when he cautioned of dollar shortage since the central bank had contracts to buy dollars with few banks but those banks had failed to stock up on the greenbacks. Rajan assured that RBI would ensure liquidity in rupee funds, even while banks were penalized by being forced to purchase dollars at a much greater price in the market. Provided is a list of 6 things that is advancing in the RBI governor’s mind now, as reported by The Economic Times.
Frazzled asset fund plan
“In our view, mainstream ownership of stressed asset funds by banks is not wise or warranted,” said Rajan.
Crude oil prices
“Today's oil price levels are not too low and not too high. We can endure oil at $50. We have endured it at $150 in the past,” added Rajan
PSB and bad Loans
Perhaps some of them, PSBs with large NPAs, should reconfigure themselves as small finance banks, but these are strategies for the board to resolve.
On bank licences
“We did not keep the payments bank licences to a minimal so that each of the entrants made massive rents. We still believe it can be a profitable business if you do it right,” Rajan said.
Mis-selling
“There is completely no justification for mis-selling and banks should take it that they have been warned,” said Rajan
Monetary policy panel
The earlier the committee starts the better. But now that the legislation is in place, it is a subject the government will have to scrutinize.
