EDITORIAL

EATING TERRORIST CAKE.....

Once upon a time the world would ridicule every insincerity of enterprise with that classical saying: Nau sau choohey kha kar billi haj ko challi. Today, Pakistan has become the front ranking fighter in the 'global war on terrorism' with the terrorist cats in thousands sticking from its bags, shirt and sides and yet the world is not raising any pointing finger at it. Instead, it is eagerly wooing it. Nobody talks of democracy or its usurpation. The general, for whom the mere invitation to talk at Agra was reason enough to throw away the ceremonial Tarar-presidency, would not have found any difficulty in declaring an extension for himself after having become the new darling of the western crusaders against terrorism. He didn't, and gave himself an indefinite extension as the chief of the Pakistan army. And that would also mean a like extension in the presidency of the country, especially as the 'war on terrorism' promises to be a long drawn out affair with the Afghanistan.....more

..... And Keeping it too

Not only is Pakistan getting all the benefits the west can give get it to collaborate with it to help them catch 'their terrorists', there are also indications that the country that actually bred this whole breed is not going to answer for its actions. The list of organizations America banned in the wake of WTC did not contain any of the terrorist gangs that Pakistan supports....more

Let there be rethinking
in Kashmir

By J N Raina

Perhaps we need to employ men of determination like the U S President George W Bush , to wipe out terrorism in Jammu and Kashmir, which is growing wild like cancer in several other parts of India....more

Tehelka Vs SP Vs Congress

By K V S Rama Sarma

The joke going round in the Cap-ital is: stoop to any low to find out how low the other has gone. The reference is obviously to the latest bombshell or sexshell from Tehelka. When the Indian Express flashed the exclusive report about the Tehelka investigative ......more

A new millennium for
the disabled in India

By Archna Jain

The new millennium has heralded in a new beginning for the physically and mentally challenged persons in India. They can look forward......more

Removing structural
bottlenecks in banking

By Dr Navin Chandra Joshi

India's banking sector is likely to see a major consolidation among the top 20 banks, leaving around six odd players over the next few years. A global......more

EDITORIAL

EATING TERRORIST CAKE.....

Once upon a time the world would ridicule every insincerity of enterprise with that classical saying: Nau sau choohey kha kar billi haj ko challi. Today, Pakistan has become the front ranking fighter in the 'global war on terrorism' with the terrorist cats in thousands sticking from its bags, shirt and sides and yet the world is not raising any pointing finger at it. Instead, it is eagerly wooing it. Nobody talks of democracy or its usurpation. The general, for whom the mere invitation to talk at Agra was reason enough to throw away the ceremonial Tarar-presidency, would not have found any difficulty in declaring an extension for himself after having become the new darling of the western crusaders against terrorism. He didn't, and gave himself an indefinite extension as the chief of the Pakistan army. And that would also mean a like extension in the presidency of the country, especially as the 'war on terrorism' promises to be a long drawn out affair with the Afghanistan. But that is not the last of the goodies the terrorism has gained for Musharraf. It is just the latest. Earlier the 'world', meaning America, resolved not to think or speak of restoration of democracy. It even went to the extent of asking India not to make matters worse for their darling collaborator. And a complying India actually vowed not to 'add' to Musharraf's difficulties. It is still fulfilling that promise though with much unease.

But again India is not the least of 'gains' for Pakistan. The new 'fighter' of global terrorism has garnered monies, funds, aid, loans.... anything that the fund-flushed occident has and can offer. The aid started pouring in, even before the Afghans arrived; the arms and guns are coming in heaps. Not only the world bank and America but the sundry other nations are opening their purse strings to bail out the Pak economy and ease the life of the ruling junta. Of course, it is junta no more. Pakistan is one with the most enlightened, most humanitarian regimes in the world. It is also the 'front ranking' fighter in the war the world is waging against terrorism. She lunches with Blair and confers with Bush and dines with the august representatives of the new imperialisms to devise ways and means to 'rid' the world of terrorism. For Musharraf it must be all the more satisfying. He of all his contemporary generals and 'jihadis' was the one most responsible for fostering terrorists, them to go to extremes of terrorist action.

It was his allegiance to terrorists that saw him smoothly slide into the chairs of the Pakistan Chief Executive and then President. The same terrorism that finally proved the undoing of Nawaz Sharif helped Musharraf to consolidate his position in the army and the Government. Now that terrorism, in a reverse manner has given him not only legitimacy and acceptance but promises to make him another Zia if he can play his cards well. So long he has been playing them with quite a finesse. And has the western world eating out of his hand. He hopes to feed the Pak economy and people with the cake his preference for terrorism has baked. By all accounts it is one large cake that is going to get bigger and bigger as the need for the west to 'catch their criminal's gets more acute. The initial righteous anger of the west, especially America, has narrowed down to catching the perpetrators of the September tragedy. And if the Afghans agree to hand over the prime suspect it may even live with the Taliban regime. That is why the Pakistani role is getting more crucial and its cake is getting bigger. It is already eating it.

..... And Keeping it too

Not only is Pakistan getting all the benefits the west can give get it to collaborate with it to help them catch 'their terrorists', there are also indications that the country that actually bred this whole breed is not going to answer for its actions. The list of organizations America banned in the wake of WTC did not contain any of the terrorist gangs that Pakistan supports. Certainly none of the ones active in Kashmir has been included in there. The terrorist training camps that Pakistan maintains are not in focus. There appears a wide conspiracy not even to mention them. In a way America is back to its old tricks, securing 'strategic advantages' and letting the world to go to dogs, called terrorists. The attack on Pak training camps is definitely out of agenda of the 'crusaders' against the 'world terrorism'. The logic of the old policies has not taught the America policy makers many lessons. They do not appear to have made the connection, Vajpayee insisted upon the other day, that it was one of the terrorists 'freed' in consequence of the Kandahar hijacking of the Indian Airlines plane who has been an active mind behind the September attacks. And, they do not appear to have seen the other terrorisms as being one with what struck them.

Afghanistan promises to be a long affair. Even if an alternative regime were foisted there, the need to keep it propped would make America maintain a good monitoring of the regime. The would mean a greater role for the America presence located very near it. That 'near' would most possibly be Pakistan. That means a need for a greater 'cooperation' from Pakistan. Which in turn means keeping the Pak regime in good humor and well stuffed with goodies physical, operational and psychological. So the cake would continue to be ladled out. There is still the hope that America would see the logic soon and come to ban the terrorism out of this world. But the 'compulsion's of the situation are all against such a light dawning. So far all has been favoring Pakistan. America is not going to get its 'object' accomplished in a day. Pakistan regime and agencies would see to it. And in the long overhaul, America would have to bend more and more to please it. So far the 'global war on terrorism' appears to mean advantage Pakistan.

Let there be rethinking in Kashmir

By J N Raina

Perhaps we need to employ men of determination like the U S President George W Bush , to wipe out terrorism in Jammu and Kashmir, which is growing wild like cancer in several other parts of India.

Well-known cartoonist R K Laxman , in a recent cartoon has aptly described the ‘lusterless’ Indian leadership thus : " The U S troops are coming all the way to catch one fellow, bin Laden. Our P M should ask the U S to capture Veerappan also . He has been equally difficult".

The caricature of our ‘harassed’ leaders conveys everything in one sweep.

Is India afraid of the bomb ? Had it not been so, our past prime ministers , down from V P Singh , should have asked Pakistan to ‘lay off’ .

What happened to India’s pro-active policy and ‘hot pursuit’ of Pakistan-based terrorists? When we showed some grit, our opposition parties raised a cacophony and growled Whenever India exhibited some defensible approach, there was a bomb scare from across the border.

When V P Singh gave a ‘clarion call’ in mid 1990, asking people to remain prepared for any ‘eventuality’, Uncle Sam just whispered in his ears: " Please hold on . There is danger ahead . The Pak bomb is ready".

Afghanistan has literally been reduced to a rubble owing to decades of civil war and anarchy, but see the pertinacity of its people. They might be unreasonable and uncivilized , but the word ‘cowardice’ is not found in their dictionary. As compared to the U S might, Afghanistan stands nowhere. But they have the gumption to call the U S’s bluff . Taliban is bold enough to tell the Americans that if the latter were twice as strong as of now, they cannot be cowed down . It is a different matter, Afghanistan has little to loose in war . To quote a non-resident Afghan, his country had already been ‘bombed back to the Stone Age.’

India has been harassed by faceless terrorists for two decades. Mindless killings go on in Jammu and Kashmir. The latest is the massive attack on the Jammu and Kashmir Assembly complex in Srinagar by a suicide squad of the Jaish-e-Muhammad militant outfit, killing over 38 people so far. Scores of people have been left injured, many of them seriously. Thank God, the Assembly was adjourned ten minutes earlier. The gruesome incident is a rebuff to U N resolution against terrorism. Pakistan wants to tell the world that what was happening in Kashmir is ‘indigenous movement’ although the suicide attacker has been identified as one Wajahat Hussain, a Pakistani national.

We have repeatedly brought to the notice of the U S about terrorist training camps being run in Pakistan, PoK and Afghanistan . Neither the U S nor its close allies could take India seriously till the U S was disgraced’ on September 11 by a band of dare-devil terrorists , at the behest of Osama bin Laden. The latest reports suggest that it is bin Laden who rules Afghanistan not Taliban supreme commander Mullah Mohammed Omar.

Pakistan has been fully exposed and India should take advantage of it. The present leadership has a great opportunity to save the country from cataclysm . Terrorism is growing like henbane— a poisonous plant with unpleasant smell.The irony is that Pakistan, the mother of terrorism, has emerged as a frontline state in combating the menace. Global coalition against terrorism has to be minus Pakistan, which is in league with Taliban, because it has fostered it . Mullah Mohammed Omar’s former bodyguard Hafiz Sadiqulla Hassani, in a recent interview has admitted that Taliban is full of Pakistanis and the militants training camps within Pakistan are run by the Pakistani military.

The U S is girding itself now for the 21st century’s first war — war against terrorism. To quote our Foreign and Defence Minister Jaswant Singh’ Sweep of terrorism is Global— it is 360 degrees".

Be as it may, the U S is justified in launching a crusade against Taliban and Laden, the mastermind behind the horrendous attack on the World Trade Centre and the Pentagon. India being the victim of terrorism , expressed deeply in support of tormented America. The reaction was spontaneous, because India has been wounded by Pakistan’s ‘thousand cuts’ in the name of Islamic jihad.

But the moot point is will the U S shift its stand on Kashmir, away from a ‘neutral’ position? Will the grieving U S tilt its policy towards India ? That is what India has to hope against hope and seek some comfort.

Pakistan came to senses when the US Secretary of State General Colin Powell dictated terms to it, stating : " Either you be with us and extend all help and support, or you are with them ( Taliban) and you will have to face the consequences". Pakistan President General Pervez Musharraf was tense and nervous when he addressed to his people on TV following the American dictate. But it is clear there has been some kind of a deal on Kashmir . It was obvious when the U S did not freeze the assets of some more radical groups operating in Kashmir, like the Lashkar-e-Toiba and Hizbul Mujahideen.’ May be, it is just the beginning.’

There is some kind of a dithering in the U S attitude. It believes that some of the militant outfits India wants to put on the hit list are ‘indigenous’. It is because Pakistan is putting lot of pressure on the U S on Kashmir and wants its own pound of flesh in the bargain.

Ipso facto, definitely, there is a rethinking in the American attitude . The officials there have clarified that it would not accept Pakistan’s demand for intervention on Kashmir, in lieu of that country’s support in fighting terrorism . George Bush has repeatedly said : " It is not just a matter of capturing people and holding them accountable , but removing the sanctuaries, removing the support system, ending states which sponsor terrorism." The last line very well applies to Pakistan . We have some solace in it . When will it happen, is to be seen.

Pakistan continues to propagate that the international community was supportive of its position that the ‘resistance movement’ in Kashmir is not terrorism but struggle for freedom’. To India’s comfort, the U S assured our National Security Adviser Brajesh Mishra that " This will not be the end of the story . They will go after other terrorist groups once they are through with this immediate mission".

In yet another development , the U S state department has sought information on 27 terrorist and insurgent groups operating in India. Among the major organizations named are the JKLF, Harkat-ul-Ansar, ULFA and NSCN.

Irreparable damage has been caused to Kashmir’s economy during the past 12 years of proxy war . Let there be rethinking in Kashmir . The Kashmiris have to decide whether they want Afghanistan-type anarchy or democracy, which they passively allow to get derailed by the foreign mercenaries . It is a turning point for them . People, especially the ruling National Conference has a big role to play in fulfilling the dream of late Kashmir leader Sheikh Abdullah, who had likened the valley to a beautiful garden in which flowers of all hue could bloom . No one can live in isolation in the present world.

Unless people of different ethnic groups are allowed to live peacefully, chaos will continue in Kashmir.

The days are gone —— the terrorists and their masters will not be allowed to continue their so-called freedom struggle in the name of Islamic jihad. The world opinion has changed now after American bombing . Time will only tell.

Tehelka Vs SP Vs Congress

By K V S Rama Sarma

The joke going round in the Cap-ital is: stoop to any low to find out how low the other has gone. The reference is obviously to the latest bombshell or sexshell from Tehelka. When the Indian Express flashed the exclusive report about the Tehelka investigative team resorting to supplying call-girls to expose the sex dimension of corrupt military officers, the Capital missed a breath or two and members of Parliament attending the monsoon session got readymade gun-powder to blast the already battered Vajpayee government. For George Fernandes, who has been of late trying to be busy again sorting out the endless problems plaguing the NDA, the exposure was yet another shock.

If the sexposure had not hit the headlines, George would have certainly made it again to the Cabinet, possibly with a defence cap. Now George, who has gained a few points by settling Mamata Banerjee’s return to NDA and before that handling rather well Karunanidhi’s affairs in Chennai, will have to wait. But the question is: has the Tehelka’s arsenal of scandals exhausted yet? How does one know if Tehelka has still some more hot stuff in its stocks or rather in its famous tapes?

Samata Party has wittingly or unwittingly took it upon itself to challenge the Tehelka, even as the entire NDA government was in fix as to what to do. The NDA partners seemed relieved that George & Co. came forward and its spokesman Bhattacharya has been making valiant efforts to fight back and, interestingly, he is the only one from the NDA side to defend the Government. Now that the Tehelka exposure has kicked up so much dust that in the prevailing have most have lost track of the real issue - corruption in defence set - up.

The nation-wide debate has finally come down to this point: should media observe limits and should it employee call girls to get stories? While everyone in the Capital is convinced by the mission of Tehelka, not many are sure, if actually call - girls should be sent into the bedrooms of defence officers to have fun to prove a point. Despite so much noise, it is still not clear whether or not the defence officers in question sought the girls or were offered. Unfortunately, neither the accused nor their representatives were available to tell their version of the episode. Now, that part can come out only when the Venkataswami Commission, which has reportedly all the Tehelka tapes, chooses to make public the details of the drama that made all the current TV serials look tame and listless. Then only the full and complete picture will emerge.

With the Assembly elections in Uttar Pradesh, Uttaranchal, Punjab and J&K round the corner literally, political confusion in the Capital is at its height. In a way this confusion is the cumulative result of what political parties had and had not done since the last Assembly elections. Most parties tend to look at immediate benefits for a variety of reasons, particularly after an Assembly poll. Not many have the capacity and the will to let go an opportunity to be in power, even if it is for a short while.

These parties perhaps cannot be faulted, for their leadership is under constant pressure from the cadre to get into power one way or the other to retain their identity and place among the voters. Under these compulsions, they take positions useful to them at the point of time, but create a big problem, when the next round of election comes.

In the coming Assembly elections all eyes are on U.P only, for it decides the party to be in power at the Centre. As of now, four political segments - Congress, BJP, Samajwadi Party of Mulayam Singh Yadav and the BSP of Kanshiram matter. They have taken such rigid positions since the last Assembly polls, they are finding it difficult now to team up. Of the four, three have more or less the same ideological inclinations - the Congress party, the Samajwadi Party and the BSP. But for some strange reasons they have remained poles apart for the last five years and thus failed to keep any door open for an alliance.

Now, when these three and the left parties seriously want to checkmate the BJP, thy do not know how to go about it. The reason is that the Samajwadi Party and the BSP as well as the left were influenced by temporary factors these five years and despite their public posture to fight BJP, never made any moves themselves nor cooperated with others making similar move to forge an anti-BJP alliance. But every time the Congress made a move these parties found some pretext or other to thwart it.

For instance, if Mulayam Singh and his ilk had cooperated with the Congress in 1998 to form a coalition at the Centre, the threat of saffronization of India by the BJP would not have been there now. And, U. P would have been in the hands of secular forces. Factors, other than political had apparently influenced Mulayam Singh in committing that historical blunder. Why, even as recently as a month back when Mrs. Sonia Gandhi called non-BJP opposition parties to tea to discuss a joint strategy to challenge the Government in Parliament, their leaders chose to boycott the get - together.

Now, the same parties, faced with elections are reportedly sending feelers left and right. Samajwadi Party has apparently realized that it cannot come to power in U.P on its own. And if it fails again in the coming Assembly elections in U.P, its minority support will vanish, as Muslims and others will consider it pointless to back it any more. In that eventuality, Muslims are bound to return to the Congress, which is becoming increasingly possible. That makes the chances of the Congress party in U.P distinctly much better than many have predicted. -CNF

A new millennium for the disabled in India

By Archna Jain

The new millennium has heralded in a new beginning for the physically and mentally challenged persons in India. They can look forward to a better future for themselves with better infrastructure and support systems to rehabilitate them.

This turnabout has come because the Census Commission of India agreed to include the disabled in the National Census of 2001. This is a milestone for the section of population exact size of which is as yet not known.

The Census of 1981 had projected a figure of 1.9%. of Indian population as disabled. The figure was not believed to be reflective of the actual number of disabled in India, a country with poor medical infrastructure and where frequent natural calamities occur adding to their number by the thousands -with each occurrence. There were protests from the disability sector and the NGOs for its rehabilitation.

The government justified the results saying that the enumeration of the disabled was a very tedious process due to the various categories of the disabled which confused the enumerators and hence led to the skewed results. The enumerators had apparently got bogged down by a mind-boggling number of categories of the disabled leading to poor quality of data.

However, the government did not include the disabled in the next Census of 1991. Instead, a National Sample Survey was conducted and the figure was around 5%-6% of the total population. In absolute numbers, it meant around 70 million of Indians are disabled. This figure too is very conservative as United Nations statistics say that in the third world countries the disabled are an estimated 10% of their population at the very minimum.

The need to have an fairly correct estimate of the total number of the persons with disability (PWDs) in India is urgent. Have we ever thought where are all these 70 millions of Indians? They are an invisible lot, apart from those PWDs who are from the lowest economic strata of society and are left with no option but to fend for themselves begging. We do not come across many disabled persons in our day-to-day life at schools, colleges, our workplaces, public places like entertainment joints, place of worship, monuments etc.

The recent visit of Prof Stephen Hawking to Delhi's famous monuments on temporarily constructed wooden ramps brought in focus the lack of basic facilities for wheelchair-bound persons. Why ? Are these people not entitled to all the basic necessities and pleasure of life? The simple reason is that we do not have the infrastructure to support the disabled to lead a regular life.

Our buildings, institutions etc. are not disabled-friendly. They do not have ramps, visual promotes, auditory signals, etc. for people with various kinds of disabilities. This leads to children with disability getting their education primarily at home or in special schools the number of which is far less than needed.

We need more special school and more schools with integrated educated systems. The adult disabled face a different kind of problem. There are no job markets for them. First, their education is not up to the standard required today in the cut-throat world of high level jobs. Secondly, new job opportunities are not being created to suit their capabilities. This huge reservoir of human resources is lying untapped due to lack of proper planning.

Information about the disabled should reach the metropolitans as well as the most far-flung villages of the country. Remember that the Census takes place only once in 10 years. So, the effort that we will put in now will have repercussions on the disability sector over the next ten years. The government will formulate polices with regard to the disabled and allocate funds for them keeping in mind their total number. Developmental projects will be made with these numbers in mind. Relief and grants will be given accordingly.

Hence, it is essential that when the enumerator from the Census Commission comes to your house during the actual headcount and asks you whether you have any member with disability in your family, do not shy away, if there is one. Do not hesitate to say 'yes'. Include that person's name in the category that comes closest to that person's condition.

PTI Feature

Removing structural bottlenecks in banking

By Dr Navin Chandra Joshi

India's banking sector is likely to see a major consolidation among the top 20 banks, leaving around six odd players over the next few years. A global trend in this direction has already been in evidence in the US, Europe and elsewhere. For long it has been felt in India that there is need to infuse fresh thinking in the top management of banks for developing better business strategies and marketing efforts.

There is also the need for improving productivity and efficiency of the financial system. This is imperative as it would play a key role in the present competitive environment as the Indian banking system transcends into the second banking revolution. The financial sector reforms underway in India, however, must be seen as a component of the overall scheme of structural reforms. Despite the progress made in terms of structural reforms. Despite the progress made in terms of geographical and functional coverage, the financial system ought to emphasise the need for its viability and more particularly, of the public sector banks.

The current scenario of Indian banking is manifest of the most challenging phase of reconstruction the whole system is going through. While profit position has been improving considerably, paving way to bring about a transformation in their approach to banking, the presence of private sector banks has also given a new impetus to them to compete in 'quality' rather than 'quantity'.

Public sector banks do have a solid base to build on. In fact, the rural sector needs to be targeted for increasing the pace of deposit mobilisation as it is still insulated from the attractions offered by other alternative forms of savings and rely principally on banks. Public sector banks must, therefore, concentrate on increasing their activity in the rural areas where there is virtually no competitionat present. If they do that, they will be able to preempt any dominance by private sector banks in future. It is precisely for this reason that nationalised banks went in strike against creation of local area banks of the private sector in rural areas.

The position of regional rural banks, cooperative banks and such other peripherals is also quite worrisome. The accumulated losses of all regional rural banks is around more than Rs 1,500 crore and these have been going up from year to year causing deterioration financial position of RRBs.

As such regulation of different components of a group by different regulators requires close coordination among the regulating agencies. Moreover, in a bank with a subsidiary for security trading, deposits may be used for security trading which will expose depositors to the risks associated with the security market.

Not only this. The safety measures such as depositor protection in the form of deposit insurance, liquidity support for the bank by central bank, etc. will indirectly by stretched wider. In the case of universal banking, possibility of such transfer of risk from one market segment to the other is much higher. Therefore, evolution of suitable institutional structures in the economy becomes a very crucial factor in designing the regulatory and supervision system for banking business.

As the evolution of financial conglomerates is still in initial stages in our country at present, conflicts in the system have not taken the centre stage. however, with the growing competition and globalisation, diversification of banks in India will accelerate. It is expected that a modified universal banking model will ultimately be evolved in India.

All said and done, still the important issue is when regulatory bodies don't regulate, it is not the lack of regulatory powers which is at the root of problems of, say, scams. It is simply the case of impotence amidst power. Therefore, the central bank of the country has to evolve a system to fix the accountability of auditors and inspectors for failure to detect irregularities in time. If bank supervision has to become credible for the common man, then a climate has to be bult in which people know that money with banks is more than hundred per cent safe.

Unfortunately, somehow the fact is that despite strict instructions to desist from window-dressing, almost all banks indulge in it in their financial statements. As such, in order to depict the correct position of financial strength of a bank, an ombudsman type of body to oversee audit of banks assumes vital significance. The new audit body should ensure presentation of a true and fair balance sheet, disclosing the real performance of banks. It should also serve as a watch-dog and expeditiously investigate all cass of frauds, while devising ways to plug all loopholes by which frauds are committed. While the urgency of an audit body for banks, as an independent institution, appears to be essential it should be seen that it does not degenerate into inactivity or casualness. If and when that happens, there would then be no alternative left to resurrect India's banking sector except by privatising all the public sector banks.

Their problems are inefficient and poor working, narrow margin on advances, high establishment expenses, mounting overdues, poor recovery, and above all, the lack of accountability of those concerned. The major weakness afflicting the RRBs has been the continued poor recovery performance of most of the banks and in the process turning a large number of their loans into non-performing.

Therefore, every possible effort needs to be made to recover the loans from the defaulters, for which the support of village panchayats may also be elicited. The writing off loans and entering into compromises need to be done with lot of care and circumspection for which the government will have to be fully accountable.

Now time has come when banks are to operate like any other institution where people have access to all types of information, books and accounts. Shareholders of the state bank of India, for instance, have found to their horror that as investors in a public sector bank governed by its own Act and the Banking Regulations Act, their share of the company does not have the some meaning as shares in other public Limited companies.

World over banks and banking businesses are subjected to official regulation and supervision because of the strong public interest consideration and the potential danger of systematic risk that may arise on account of the failure of any one unit. Of late, bank failure have become quite common, be it Japan, South Korea, the United Kingdom or any other developed or developing country. In India, however, if the Government were not to come to the rescue of many a public sector bank, bankruptcy and failure would have been the order of the day.

It can be said that with increasing competition facilitated by liberalisation, the structure of financial institutions has to change rapidly. Now a variety of organisational structures ranging from 'universal banking model' to 'group of subsidiaries with a holding company' are evolving. each having different implications for regulation and supervision. Therefore, these have to be modified to suit the changed ground realities. In fact, there is need to consolidate the various levels of supervision in order to make it quite effective.

The task of consolidated regulation is complicated by the multiplicity of regulating agencies. For instance, in India commercial banks are regulated by RBI while mutual funds floated by these banks are under the supervision of Securities and Exchange Board of India (SEBI).

 



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