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It was a pleasant surprise to read the headlines in today's Economic Times "The Silent Poor Made Subbarao Hold Rates" (Published copy) and "People suffering due to high inflation forces RBI governor D Subbarao to hold Rates (internet version). The readers can read the contents by Clicking Here. It was a pleasure to read the article as time and again the whole media, corporate bosses, top bankers had been critical of the RBI Governor's policy of holding the rates and now comes out the truth.
However, we at AllBankingSolutions.com had time and again supported Dr Subbarao's policy even at the expense of some of my close friends being highly critical of my views. I still remember our article uploaded about 3 months back under the following heading (readers can click the link below to read full article):-
I do not know whether any other media have come so openly at that time
in favour of RBI Governor's policy to hold the rates. Rather, he was
bashed at various levels for throttling the growth story. I still remember
that In an interview to ET in October 2012, our so popular
(among corporate lobby) Finance Minister, Mr Chidambaram had gone to the extent
of saying that the Finance Ministry was, if necessary, prepared to "walk alone"
if the RBI did not respond to reform measures by cutting interest rates.
Now, I would like to quote a few lines from my above article :
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Now with Mr Rao' statement, it is absolutely clear that the logic for holding the rates by him were exactly in line with our thinking, though owing to his constraints he could not express these so vocally as we could do at that time - we being freelance writer. I would like to congratulate Mr Rao for standing his ground for poor and middle class people in mind. Congress Government, their ministers may shout from roof tops that they are pro-poor, but it is clear that they are playing in the hands of corporates and rich. Undoubtedly keeping inflation under control should be given higher priority as at present time, poor and pensioners are already hard hit by inflation, about which this Government is not able to do anything as they are busy in putting lid to various scams and corruption cases surfaces on daily basis.
There is not a single CMD / ED in the whole Banking industry, who can speak against wrong policy of FM and in favour of right policies of RBI Governor. Are they afraid of FM or they too are pro rich only? They either keep silent or openly support FM. When such a situation arises in a democracy, it is certain that downfall of the country will take place as poor will suffer the most. However, we at AllBankingSolutions.com will continue to bring TRUTH on the forefront so that our readers love this.
Sale of Gold by Banks :
Another controversial issue on which we have written a few months back is the article with the headlines as follows :
There was good number of top bankers (GM and above, who are earning handsomely from the commission on sale of MFs, Insurance policies) who were critical of our views. I would like to again quote few sentences from the above article :-
We have again been proved correct as now RBI is seriously worried about increase of sale of Gold at bank counters which is affecting our current account deficit and is leading to inflation and piling of gold purchased from black money. This is again affecting the poor due to high inflation which is caused by high deficit financing. On 6th February, 2013 reports indicates that RBI is considering of putting curbs on gold imports and can consider stopping import of gold by banks in extreme cases. Are our CMDs are so self centered that to earn small profit, they are ready to damage the economy of the country by imports of gold coins and selling them. They do not appear to have any love for the country as they are still awaiting RBI's directives for curbs, rather than take pro-active steps to stop sale of gold coins immediately. Who stops them from doing this? Is it the fear of receiving lower bonus if profits dip. It is shame for the whole banking industry that such powerful people can not take steps in the national interest and are looking towards RBI to issue the ban orders.
I know that many readers will feel that I am too aggressive. I apologize from them. However, in India nobody understands the soft language. Some of them have become so thick skinned that now even the sharpest criticism has no effect them. Even this article may fall in deaf ears of top management in banks. I will feel lucky if at least some of our readers understand and support us in this cause of exposing the corrupt people who are pro-rich.
I hope God will save our banker colleagues who form part of the poor and middle classes only.