RBI is better than the governing bodies of developed nations?

deepakraam

Par 100 posts (V.I.P)
RBI is the monetary governing body for India.They are controlling the FII
inflows/outflows,currency fluctations.They are the controllers of the banks.In recent times I could see RBI has stepped in at many places and has taken controlling measures.They are still taking a heavy hand in controlling the rising rupee against dollar.They are also controlling inflation by flushing out the excess liquidity from the banks.They are also buying dollars to balance the sudden rupee inflow.I would say they have maintained inflation less than 4% when the economic growth is 8%.Even they are also working towards capital account convertibility.There are some glitches in the IPOs and money laundering in stock markets but RBI is doing good in managing the Indian economy.


What do you think?


-Deepak.
 

suhaneyji

New member
Well certainly RBI has done a commendable role in keeping key economic indicators at a ceratin affordable level,but i personally believe it has to look in broad contours of the market economy.As economics never gives us a foolprrof solutions some of the steps taken by RBI like keeping CRR,SLR high,it has tried to intervene the free flowing work of economy.and thus India lost its key strength of being competitive.Thus we have seen less liquidity available in the market,manufacturing and consumer goods consumption going down in the current quaretr,IIP going downwards.
And now with the current stock market scenario,our FM has also urged the need to pump in more liquidity into the market and calling for greater consumption in the hands of people and in the conomy.
Thus steps taken by RBI initially are not paying dividends when required,and hence we need to see more competitive role taken by RBI as what we have seen by role of TRAI in telecom sector.
 

RC1327

Par 100 posts (V.I.P)
WELL THE SIZE OF INDIAN ECNOMY HAS NOT GROWN SO MUCH THAT IT CAN SUSTAIN SOME MAJOR FINANCIAL CRISIS.INDIA STILL NEEDS ALOT OF CARE AND VIGILANCE.ELSE EVERY OTER DAY WE WILL HAVE A KETAN PAREKH OR HARSH MEHTA SCAM.
TUMSUP FOR RBI
 
Top