Financial Daily from THE HINDU group of publications
Tuesday, May 14, 2002
Financial Daily from THE HINDU group of publications Tuesday, May 14, 2002 |
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Money & Banking
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RBI & Other Central Banks RBI rules out change in G-sec trading norms Our Bureau
Dr Bimal Jalan, RBI Governor, releasing `India Development Report-2002' in Mumbai on Monday. Mr R. Radhakrishna, Director, Indira Gandhi Institute of Development Research, is also seen.
MUMBAI, May 13 THE Reserve Bank of India has ruled out any change in norms for trading in Government securities in the wake of irregular deals done by some co-operative banks and debt brokers. Dr Bimal Jalan, RBI Governor, today said, "the RBI's rules for trading in G-Secs are well defined. We do not see any need to change them. The issue thrown up by co-operative banks' trading in gilts is one of compliance. A fraud was done by them.'' Speaking to newspersons after releasing the `India Development Report-2002' (IDR-02) of the Indira Gandhi Institute of Development Research, Dr Jalan said the fraud (in gilts trading by co-operative banks) is being dealt with as per law. The State Governments are in touch with co-operative banks and they would have to take appropriate action, he said. On the setting up of an apex body to oversee co-operative banks, he said the Government is considering that and it is up to it to decide. Growth rate target: Earlier, Dr Jalan said a 7-8 per cent growth rate is not an outlandish target for the country. "Over the past 20 years, India has maintained a growth rate of around 6 per cent. Considering that, it is not outlandish to target a 7-8 per cent growth rate,'' he said. To achieve that kind of growth, however, some longer-term issues have to be ironed out. Certain structural constraints still remain and these have to be removed if the country were to grow at a fast clip. He said the public delivery system is a major problem. "The constraints are not monetary or financial. Our public delivery system, whether in the area of education or health or any other, is paper-ridden and ineffective. This has to be improved,'' he said. According to Dr Kirit Parekh, Emeritus Professor, IGIDR, and one of the editors of IDR-02, the immediate problems faced by the economy are food-stock pile-up, agricultural slowdown, lack of infrastructure development, slowdown in the IT sector, and declining foreign direct investment. He said even though some experts are cynical about statistics, poverty levels in the country have indeed come down. When compared to the seventies and eighties, agricultural wages have increased at a faster rate during the nineties. Similarly infant mortality rate has come down significantly and literacy levels have also climbed during the last decade of the past century, he said.
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