Tuesday, January 24, 2017

VOX POPULI

by

S Kamat
as
Aam Admi

Issue: 185                                         Date:  23.01.2017

 
Contents:

1.      Of Leader's Family Getting Tickets In The BJP

2.      A Separate Cadre For The Election Commission

3.      Chatrapati Shivaji’s Statue In The Sea Off Mumbai

4.       How Banks Have Changed!

5.      Serious Action Needed To Speed Up Economic Recovery

Of Leader's Family Getting Tickets In The BJP

Nobody seems to be heeding Narendra Modi's advice not to give election tickets to the family of sitting MP's and MLA's as also those holding high office in the BJP. With Rajnath Singh's son being nominated from NOIDA in the 2nd list of the BJP for the UP elections this advice seems to have fallen on deaf ears. This has been happening not only in UP but also in Uttarakhand where the Congress leader who recently defected to the BJP has been nominated for elections. And adding insult to injury to Modi's advice his son has also been given a ticket for the upcoming elections. That much for the lip-service of getting candidates from as wide a field as possible by Modi.

A Separate Cadre For The Election Commission

There may be more than a grain of truth in Arvind Kejriwal's allegation of the Election Commission siding with one or the other party during the conduct of the elections. He had made this comment in the context of Goa where the Chief Secretary is in charge of the Election Commission in the State. This situation one would feel would be true across India since the Election Commission does not have a separate cadre of officials to conduct elections and depends on the Central Services cadres to provide them staff. These officials are more often drawn from the State in which the elections are being held. Thus these officials but naturally will show their allegiance and favour the party that is most likely to win the elections which may not be necessarily the incumbent party. Thus it is best that we develop a separate cadre of officials to run elections in this country which will staff the senior level of officials in the Central Election Commission as also the State level commissions to ensure free, fair and impartial elections. This kind of a cadre will be worthwhile since for a large country like India some or the other election is happening all the time. 

Chatrapati Shivaji’s Statue In The Sea Off Mumbai
Chatrapati Shivaji’s statue to be installed in a man-made island in the sea off Mumbai would be a welcome tribute to one of the great and legendary figures of Indian history. A symbol of Maratha pride who singlehandedly kept the Muslim kingdoms of the Adilshahis, Nizamshahis and the Mughals at bay and was successful in carving out in the hills of the Deccan a nationalistic kingdom which at one time extended from near Madras and Bangalore in the South and Bijapur in the East to almost Gujarat in the North along the western coast. This was further consolidated by Chatrapati Shivaji’s son, Sambhajiraje Bhonsle and then expanded later by the Maratha chieftains of the Bhonsles like the Holkars and the Scindias into almost ruling the whole of India during the decline of the Mughal Empire. These achievements of the Marathas owe their seeding to Chatrapati Shivaji who instilled in the Marathas the feeling of patriotism and the consciousness of nationalism. Even today close to four hundred years since the birth of Chatrapati Shivaji, his name and that of his family is taken with reverence and great respect. Which figure in history is remembered in this manner and for so long is what we need to ask ourselves when we want to raise the questions of necessity of the statue and the cost involved in its construction? In fact Chatrapati Shivaji’s name is in the annals of our history alongside that of Emperor Ashoka and Chandragupta Maurya. It is rather unfortunate that in today’s times everything tends to be measured in terms of money. The fact that it will cost some Rs. 2300 crores to construct this Chatrapati Shivaji’s memorial in the sea off Mumbai is of no consequence when you assess his contribution to the thought and philosophy of a united India. Just for the information of the naysayers like the Statue of Liberty earns the USA in terms of tourism dollars so also this memorial to Chatrapati Shivaji will be a tourist attraction for Mumbai and will pay back the cost in constructing it within a span of about twenty years easily.

How Banks Have Changed!

There was a time when your neighbourhood bank was your friend in need. The manager was your consultant and advisor in matters of finance as well as on many other general issues. Slowly things have been changing with the bank becoming a shop for multiple financial instruments with the manager rarely getting the time to even smile at you. He will be in between measuring the weight of gold that some customer has brought for a loan or finalising a home loan for another buyer. This transition of reduced customer interaction actually started with the introduction of ATM's where customers no longer had to enter a bank for drawing money from their accounts which used to be the major activity of ordinary account holders. The person to person interaction reduced with this transition and has been deteriorating since. The only exception in recent memory was that on Nov 10th 2016 every bank in India got the maximum number of customers ever to come into their branches since they had opened shop! The bank branches over time automated with computers replacing the age old ledgers. The musty environs of most bank branches at least in cities and major towns were revamped to look sleek, modern and were air-conditioned. This became more intimidating to some customers what with frequent transfers of bank staff where they would not see the familiar face at the other side of the counter. Around this time came the focus on costs at the bank. This was more so with the private banks where it started with charges for issuing cheque books which came as a shock to some old customers of the banks. Though the banks personalised the cheques with the names of the account holders to soften the charges that they would recover. Then there were more restrictions with minimum account balances being mandated and if you went below the limit charges were levied. The public sector banks followed with these practices though the usury was more moderate. All this led to the feeling among customers that you would be charged for just visiting the bank. More charges for breathing the air inside! And pay through your nose for sneezing in bank premises! When the ATM's came the above trend was fortified by the banks encouraging people to use the ATM's so that you did not have to step into the bank. Initially though you could use your card at your bank ATM 's, it was later modified to be used at any bank ATM's. The idea was to make it easy for the customer to provide anywhere access to cash but then actually it was keep you out of the bank premises. This went to the extent of banks saying that Fixed Deposits are expensive for the banks and they would prefer to discontinue them. This sent a shock to generations of fixed deposit holders mostly senior citizens who had considered banks as their very own monthly salary generators. But then again the bank realised that if customers do not come into the bank, then the selling of different instruments not really related to banking like personal loans, life insurance, mutual fund transactions etc. were going to suffer. Thus the wooing of customers started all over again. This initiative was again led by the private banks. Customers started getting calls at lunch times with bank executives eager to inform them of this, that or the other instrument which would transform the customer's life! This became so irritating after some time that most customers put their bank telephone numbers on the DND list. When this did not work so much the banks started pruning the number of times you could use the other bank ATM's and now the situation is coming to how many times in a month you can use your own bank ATM. From the first unlimited use, to 5 times a month to the newly proposed thrice. This will make customers step into the branch premises. As you can see the wheel has turned full circle with customers being brought back so that they can be milked for the multiple financial instruments that the banks handle. This is supplemented by Narendra Modi's initiative sometimes of demonetising one or the other currency note which will bring in an avalanche of customers to the bank like on 10th Nov 2016!

Serious Action Needed To Speed Up Economic Recovery
The IMF has scaled down the Indian economy growth projections for this year down to 6.6%. At the same time one of the UN reports cites that in the long-term the Indian economy will grow at 7.7% or more. The Narendra Modi led government that has been clutching at straws in the wake of criticism of its inefficient implementation of the demonetisation exercise should not latch on to the UN report and claim that 'all is well' with the Indian economy. In fact the demonetisation exercise and the consequent cash shortage which has been continuing for almost 70 days now has put back the Indian economy by a decade. All the sectors of the economy have been affected with everyone trying to pick up the shattered pieces of their enterprise and trying to make the best of a bad bargain. At the same time the government is not taking cognisance of adverse reports like the FII's having pulled out more than US$ 10 Billion from the Indian stock market in the Oct - Dec 2016 quarter. SEBI has expressed concern on this matter and fears that the FII's staying away may not be good  for the Indian stock markets. It is time therefore that Arun Jaitley and his cohorts in government should put their heads together and instead of just looking at giving sops in the coming Budget to both the individuals and corporates in terms of income tax benefits should provide for structural reforms that will set the base for recovery of the economy and put it on a path of consistent growth in excess of 8%.

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