'Humiliated' By Post-Notes Ban Events, RBI Staff Write To Urjit Patel

[The_Showstopper]

'Humiliated' By Post-Notes Ban Events, RBI Staff Write To Urjit Patel
In a letter, they said autonomy and image of RBI has been "dented beyond repair" due to mismanagement and termed appointment of a senior Finance Ministry official as a "blatant encroachment" of its exclusive turf of currency management.
Press Trust of India | Last Updated: January 13, 2017 22:33 (IST)

31COMMENTS

RBI employees wrote to Governor Urjit Patel protesting against operational 'mismanagement'.
HIGHLIGHTS

1. RBI employees said that the central bank's image 'dented beyond repair'
2. The forum represents over 18,000 employees of RBI
3. The letter comes days after concerns about RBI's functioning being raised

Mumbai: Feeling "humiliated" by events since demonetisation, RBI employees on Friday wrote to Governor Urjit Patel protesting against operational "mismanagement" in the exercise and Government impinging its autonomy by appointing an official for currency coordination.

In a letter, they said autonomy and image of RBI has been "dented beyond repair" due to mismanagement and termed appointment of a senior Finance Ministry official as a "blatant encroachment" of its exclusive turf of currency management.

"An image of efficiency and independence that RBI assiduously built up over decades by the strenuous efforts of its staff and judicious policy making has gone into smithereens in no time. We feel extremely pained," the United Forum of Reserve Bank Officers and Employees said in the letter addressed to Dr Patel.

Commenting on "mismanagement" since November 8, when note ban was announced, and the criticism from different quarters, the letter said, "It's (RBI's) autonomy and image have been dented beyond repair."

Also Read: Refusing Questions On Notes Ban, RBI Cites Threat To Life, Says Report

At least two of the four signatories --- Samir Ghosh of All India Reserve Bank Employees Association and Suryakant Mahadik of All India Reserve Bank Workers Federation --- confirmed the letter. The other signatories are C M Paulsil of All India Reserve Bank Officers Association and R N Vatsa of RBI Officers Association.

The forum represents over 18,000 employees of the RBI across the ranks, Mr Ghosh said.

The letter said appointment of an officer to coordinate currency management is a "blatant encroachment" on the exclusive jurisdiction of the RBI on currency and accused the Government of "impinging on RBI autonomy".

"May we request that as the Governor of RBI, its highest functionary and protector of its autonomy and prestige, you will please do the needful urgently to do away with this unwarranted interference from the Ministry of Finance, and assure the staff accordingly, as the staff feel humiliated," it said, soliciting "urgent action".

Also Read: RBI Says Recommended Notes Ban After Government's Advice

The RBI has been discharging the role of currency management for over eight decades since 1935, it said, adding the central bank does not need "any assistance" and the interference from FinMin is "absolutely unacceptable and deplorable".

The letter comes days after concerns about RBI's functioning being raised by at least three former Governors -- Manmohan Singh (former PM), Y V Reddy and Bimal Jalan. Former Deputy Governors, including Usha Thorat and K C Chakrabarty, have also voiced their concerns.

The letter said the RBI staff has carried out its job excellently following the move to ban 87 per cent of the outstanding currency by the Government.

http://profit.ndtv.com/news/economy...-urjit-patel-1648667?pfrom=home-lateststories

 

[Hassan Guy]

https://defence.pk/threads/indias-demonetization-looking-good-iip-up-5-7-for-november.472428/

This was posted a few minutes after....one of ya'll is lying.

 

[Śakra]

https://defence.pk/threads/indias-demonetization-looking-good-iip-up-5-7-for-november.472428/

This was posted a few minutes after....one of ya'll is lying.

They say different, non-mutually exclusive things. This one say RBI's image has been degraded and the other says India's IIP has increased 5.7% in November.

 

[schoolboy]

I, for one, agree with this letter. The daily parade of flip-flops, contradictory statements by the finance minister and rbi and never-ending changes to policy made a mockery of the RBI and it's independence.

 

[Indika]

At least two of the four signatories --- Samir Ghosh of All India Reserve Bank Employees Association and Suryakant Mahadik of All India Reserve Bank Workers Federation --- confirmed the letter. The other signatories are C M Paulsil of All India Reserve Bank Officers Association and R N Vatsa of RBI Officers Association.

True to some extent that RBI's autonomy has been compromised. But what are the workers losing due to that? Nothing.
They are not complaining about demonetization or RBI's autonomy but their workload being more due to demonetization. These are not principled or ethical workers who are willing to fight corruption or bad work ethics but are bothered about their own self interests.

 

[jaunty]

True to some extent that RBI's autonomy has been compromised. But what are the workers losing due to that? Nothing.
They are not complaining about demonetization or RBI's autonomy but their workload being more due to demonetization. These are not principled or ethical workers who are willing to fight corruption or bad work ethics but are bothered about their own self interests.

Wrong assumption. Have you read the letter?

 

[Indika]

Wrong assumption. Have you read the letter?

I do , read my first line. Do you really think these ppl are only protesting for RBI losing autonomy? If they think so ,let them resign instead of capitulating. If every govt organization in India was so principled we would not have politicians running riot. Why should they wait for the new RBI governor to complain? A true professional organization is not represented by one single person. The word "Humiliated" says a lot many things , its not that they are worried about autonomy being impinged but bcos they are sidelined.

 

[schoolboy]

The word "Humiliated" says a lot many things , its not that they are worried about autonomy being impinged but bcos they are sidelined.

Sidelined - Are you kidding?

This letter is signed not by a few staff or officers but by the heads of the officers association and also the (clerical grade) employees association. These guys only ever sign letters when the content converges with the sentiments of a majority of employees. The only occasions when that usually happens i a government entity or PSU is demand for wage revision or opposing privatisation (not applicable to RBI). The fact that they've signed this obviously means a majority of RBI employees feel this way.

IMO this whole exercise was a disaster - based on questionable assumptions and characterized by NIL planning. Important stuff such as whether the new notes can be used in the ATMs without manual calibration, printing capacity and inadequacy of infrastructure appear to have been completely ignored. The rules on withdrawal and exchange have been changed on a daily basis with no consistency. Modi said in his Nov 8 speech that old notes could be exchanged at RBI till March 31. Instead the period was reduced to Dec 31. What else to say - except that he's a liar and a cheat? A liar for going back on his word and a cheat for cheating me out of my hard earned money (20k emergency money in the US that is now impossible to change).

In smaller cities and rural areas this problem is unimaginably severe - you probably are sitting in a metro city and had 2-3 weeks of inconvenience, part of which you avoided using PayTM, netbanking, cards, etc. In small towns like Bokaro, Darbhanga, Malda, Raiganj, etc. people are not so sophisticated, bank branches are much fewer, supply of currency is still pitiful. A relative in Kharagpur begged my father - who is visiting him - to carry a huge amount of cash saying there's no cash in the few banks in the area and everyday people are queuing for 2-3 hours. NRIs still have no practical way to exchange their money (Do you seriously expect me to fly 12,000 miles back to Delhi and stand in queue?)

End of the day all the high denomination currency is back in the system - possibly laundered as well. It's uncertain what benefits this has brought about. This talk of black money was bogus and a red herring. If a thief strikes a house do we arrest everybody in the neighbourhood ?

Either the authorities knew about these shortcomings and still proceeded - in which case I say they are incompetent, insensitive and malicious.

or they did not know and proceeded - in which case I say they are frighteningly stupid.

Either way it's been a disaster.

 

[Indika]

Sidelined - Are you kidding?

This letter is signed not by a few staff or officers but by the heads of the officers association and also the (clerical grade) employees association. These guys only ever sign letters when the content converges with the sentiments of a majority of employees. The only occasions when that usually happens i a government entity or PSU is demand for wage revision or opposing privatisation (not applicable to RBI). The fact that they've signed this obviously means a majority of RBI employees feel this way.

IMO this whole exercise was a disaster - based on questionable assumptions and characterized by NIL planning. Important stuff such as whether the new notes can be used in the ATMs without manual calibration, printing capacity and inadequacy of infrastructure appear to have been completely ignored. The rules on withdrawal and exchange have been changed on a daily basis with no consistency. Modi said in his Nov 8 speech that old notes could be exchanged at RBI till March 31. Instead the period was reduced to Dec 31. What else to say - except that he's a liar and a cheat? A liar for going back on his word and a cheat for cheating me out of my hard earned money (20k emergency money in the US that is now impossible to change).

In smaller cities and rural areas this problem is unimaginably severe - you probably are sitting in a metro city and had 2-3 weeks of inconvenience, part of which you avoided using PayTM, netbanking, cards, etc. In small towns like Bokaro, Darbhanga, Malda, Raiganj, etc. people are not so sophisticated, bank branches are much fewer, supply of currency is still pitiful. A relative in Kharagpur begged my father - who is visiting him - to carry a huge amount of cash saying there's no cash in the few banks in the area and everyday people are queuing for 2-3 hours. NRIs still have no practical way to exchange their money (Do you seriously expect me to fly 12,000 miles back to Delhi and stand in queue?)

End of the day all the high denomination currency is back in the system - possibly laundered as well. It's uncertain what benefits this has brought about. This talk of black money was bogus and a red herring. If a thief strikes a house do we arrest everybody in the neighbourhood ?

Either the authorities knew about these shortcomings and still proceeded - in which case I say they are incompetent, insensitive and malicious.

or they did not know and proceeded - in which case I say they are frighteningly stupid.

Either way it's been a disaster.

If they are truly independent & professional they should have upfront said that it cannot be done. Another example is Election Commission who dont pally with ruling party or govt. They cannot complain now, its too late for that.

PM will issue whatever statement he wants, he is a politician. But what about RBI why should they agree with his statement and proceed to implement it.

 

[schoolboy]

If they are truly independent & professional they should have upfront said that it cannot be done. Another example is Election Commission who dont pally with ruling party or govt. They cannot complain now, its too late for that.

PM will issue whatever statement he wants, he is a politician. But what about RBI why should they agree with his statement and proceed to implement it.

That's all you can say ? So I guess we are both in agreement that this exercise was a disaster and the PM is a liar and a cheat. Your last statement in fact corroborates the charge that the RBI did not act independently (again no surprise - the previous governor was denied the customary extension for not acting like a lackey, The present one is more compliant. Until two days ago he's not said a word, not made a single announcement. Pathetic

I can forgive bad economics - ok, so the theories on which this exercise was based were flawed and that's one thing. Sometimes the theory is proven right, sometimes its not.

But I cannot forgive incompetence, lies or stupidity on this scale.