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
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Let there be
rethinking
in
KashmirBy 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
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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.
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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 Indias 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
Ss 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 Omars 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
centurys 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 Pakistans 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 Pakistans demand for
intervention on Kashmir, in lieu of that
countrys 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 Indias 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 Kashmirs
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.
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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 Banerjees
return to NDA and before that handling
rather well Karunanidhis affairs in
Chennai, will have to wait. But the
question is: has the Tehelkas
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
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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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