Monday December 18, 2017
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Rupee to remain volatile in the midst of Greek crisis, says Arvind Subramanian

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By NewsGram Staff Writer

The Indian government on Monday said it was closely monitoring the Greek situation and euro market movements after austerity proposals by creditors being rejeted in a referendum posed the possibility of the country’s exit from the euro zone, while the rupee may be affected due to the outward flight of investment.

“In these situations what mostly happens is there is flight to dollars, to a safe haven. Rupee might also be affected by that. But nothing gets unusual at all so far,” Chief Economic Advisor Arvind Subramanian told reporters here.

“This is a drama which is going to play out for some time. We are well protected in at least three ways. Our macro-economic situation is much more stable. We have reserves. We are an economy which is still a very attractive investment destination. So I think we are relatively well insulated,” he said.

“As for the crisis itself, it is going to going to be long and prolonged,” he added.

Over 61 percent of Greeks voted “no” on Sunday, responding overwhelmingly to Prime Minister Alexis Tsipras’ calls to reject a proposal by the country’s creditors for more austerity in exchange for a financial bailout.

On possible impact of the crisis on Indian economy, Subramanian said that as the crisis plays out, “financial markets are going to be volatile. Both the ECB (European Central Bank) and Fed (US Federal Reserve) will take this into account”.

“We will have to see how the euro moves now. We are closely monitoring the Greek situation. There could be some reaction on the Fed rate hike,” Finance Secretary Rajiv Mehrishi said.

He had last week expressed apprehension that if yields on euro bonds go up, it might impact inflows and outflows from India.

Indian industry feels that if a crisis developed for Europe due to Greece, India too could feel the tremors like the rest of the world.

What is worrying is that the overall situation with regard to India’s merchandise exports does not look promising this year and the troubles in Europe could only deteriorate the prospects,” the Associated Chambers of Commerce and Industry of India (Assocham) said in a statement here.

“There is a need for RBI and the finance ministry to keep a close eye on the muddy global situation and its possible effect on India’s capital flows and the currency movement,” it added.

India’s merchandise exports continued to decline for the second month this fiscal, down by over 20 percent at $22.35 billion in May from $27.99 billion in the same month of the previous year, official data showed last month.

The Federation of Indian Export Organisations (FIEO) has warned that the continuing decline in exports would result in layoffs, besides putting pressure on the current account deficit (CAD).

FIEO president S.C. Ralhan also agreed with RBI Governor Raghuram Rajan’s recent remarks that the central banks globally were at risk of slipping into the kind of beggar-thy-neighbour strategies, leading to the Great Depression of the 1930s again.

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RBI maynot have been Authorised to Issue Currency Notes of Rs 2,000 and Rs 200

the Reserve Bank Of India (RBI) does not seem to have any official records to prove that it had authorised the issue of new currency notes in denominations of Rs 2,000 and Rs 200, after demonetisation

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authorised to issue currency notes
Reserve Bank of India doesnot have any proof to have been authorised to issue currency notes. Wikimedia.

Mumbai, Oct 28: In what could be a bizarre situation, the Reserve Bank Of India (RBI) does not seem to have any official records to prove that it had authorised the issue of new currency notes in denominations of Rs 2,000 and Rs 200, after demonetisation, according to documents available through RTI.

“As per RTI replies provided by the RBI, the country’s central bank has apparently not published any Government Resolution (GR) or a circular till date to issue the new Rs 2,000 and recently, the Rs 200 currency notes,” says Mumbai-based RTI activist M.S. Roy.

Authorised to Issue Currency Notes.
Rs. 2000 note was issued by RBI who maynot ahve been Authorised to Issue Currency Notes. Wikimedia.

A May 19, 2016 document — roughly around six months before demonetisation — shows that the RBI’s Central Board of Directors approved a proposal put forth by its Executive Director on May 18, 2016.

This (proposal) pertained to the new designs, dimensions and denominations of future Indian bank notes, and the Board resolved to forward it to the central government for approval, as per extracts of the minutes of that Board meeting.

Essentially, this was carrying forward an earlier such proposal made on July 08, 1993 to introduce a new family of Indian bank notes of Rs 10, Rs 20, Rs 50, Rs 100 and Rs 500 of reduced sizes.

This old proposal (July 08, 1993) was approved at an RBI Central Board Of Directors meeting on July 15, 1993 as per a memorandum dated August 3, 1993 sent from RBI’s Central Office, Mumbai, to the Chief Officer, Department Of Currency Manager (RBI Mumbai), which was signed by the then Executive Director, A P Aiyer.

As per that proposal (of July 8, 1993), these new Indian currency notes of reduced size were to incorporate several fresh and enhanced security features in order to check counterfeiting, according to the same August 3, 1993 memorandum (quoted above).

Roy had also filed a separate RTI query on February 27, 2017, asking for documentation about photographs of Mahatma Gandhi which are not being printed on the Re 1 notes, but were being printed on all currency notes of denominations ranging from Rs 5 to Rs 2,000.

In reply to this particular query, the RBI provided resolutions of its board meetings held on July 15, 1993, July 13, 1994 and May 19, 2016.

authorised to issue currency notes
RBI had issued notes with no proof if authorised to issue currency notes. Wikimedia.

However, these resolutions talk about design features merely for Rs 10, Rs 20, Rs 50, Rs 100 and Rs 500, all of which bear the photographs of the Father of the Nation.

None of these RBI board resolutions make any references about design features or Mahatma Gandhi photographs for denominations of Rs 1,000, Rs 2,000 and now, the latest entrant to the Indian bank notes family, the Rs 200 currency note.

Hence, Roy said that if the RBI board resolutions never even discussed design features or Mahatma Gandhi photographs to be incorporated in Rs 1,000 notes (discontinued after demonetisation), Rs 2,000 denomination notes (introduced on November 8, 2016) and the subsequent Rs 200 notes (introduced in mid-2017), it clearly indicates that no official approval was granted.

He questioned that if no approval was granted for issuing these denominations, who authorised these denominations, their design, printing and distribution.

“If there has been no approval by the RBI Board, no supporting GR or any other known documentation in the public domain, then there is a big question mark about the legal validity and official (monetary) status of these notes — namely Rs.200 and Rs.2,000. The matter merits an independent investigation,” Roy said.

However, if such approvals do indeed exist, then the RBI and government must explain why these documents were not made available despite an RTI query or why they were not in the public domain. (IANS)

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Rajiv Mehrishi Takes Over as CAG of India

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Rajiv Mehrishi (IANS)

New Delhi, Sep 25: Former Home Secretary Rajiv Mehrishi assumed the office of Comptroller and Auditor General (CAG) of India today. He took the oath of office before President Ram Nath Kovind at a ceremony held at Rashtrapati Bhavan, New Delhi.

Mehrishi succeeds Shashi Kant Sharma, former CAG of India, who demitted office on September 22 of this year.

Mehrishi, who retired as Home Secretary in August at the end of a two-year extension, will have a tenure as CAG until August 7, 2020, when he will turn 65.

Mehrishi belonged to the 1978 batch of the Indian Administrative Service (IAS) of Rajasthan cadre.

He was appointed Union Home Secretary in August 2015. Prior to that, he was Finance Secretary at the Centre and Rajasthan Chief Secretary.

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A welcome step for women empowerment laws, soon to be introduced law will help to prevent women’s abuse in NRI marriages: Rakesh Srivastava

Rakesh Srivastava talked about increasing women employment, equal work participation, and gender equality

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A soon to be introduced law will help in women empowerment as it will prevent women’s abuse in NRI marriages
A soon to be introduced law will help in women empowerment as it will prevent women’s abuse in NRI marriages. Pixabay
  • Efforts are required for training and skill up-gradation of women in traditional, new and emerging areas to promote women’s employment
  • In November the government will honor 100 women achievers
  • Gender Equality is still not reflected in ‘participation in economic activities’ which is not a good thing for women empowerment

New Delhi (India), September 7, 2017: Rakesh Srivastava, Secretary, Ministry of Women and Child Development said that very soon a law will be finalized which will protect Indian women who are abandoned by their NRI husbands or foreign partners. He said this on 6th September 2107. It will be a praiseworthy step for women empowerment.

Srivastava was present for the inauguration ceremony of 2nd Conference on Women at the workplace- “Role of Leadership”, New Delhi. The Conference was organized by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Women Empowerment by increasing job opportunities for women

According to ANI report, Rakesh Srivastava said “India has taken a lead role in gender budgeting in the world. Efforts are also required for training and skill up-gradation of women in traditional, new and emerging areas to promote women’s employment in both organized/unorganized sectors, including entrepreneurial development.”

Women Achievers will be honored

Srivastava also informed that in November the government will honor 100 women achievers. The event will be held in Hyderabad and will possibly be attended by The US President Donald Trump’s daughter Ivanka Trump. The government decided to honor women achievers will inspire other women to reach great heights of success, this step will foster women empowerment.

Equal Opportunities for Women

He further added that if suitable strategies and also laws which help in women empowerment are implemented- it will ensure equal opportunities for women to enter as well as enjoy decent work in a healthy work environment. This will also include fair and equal wages, health measures, social security measures and occupational safety.

Also Read: Misery of the outcast wives in India by their NRI husbands

Knowledge about Gender Equality will increase Women Empowerment

He cited that gender equality is critical for the development of any country. Srivastava said that by removing barriers which prevent women from having the same access to economic opportunities, education, and productive inputs as men will lead to productivity gains. It is a crucial step to be taken in today’s globalized and competitive world.

Srivastava said, “India has been ranked 87 out of 144 countries on the latest World Economic Forum’s Gender Gap Report 2016, but in the economic sphere, much work remains to be done as India ranks 136 in this pillar out of 144 countries.” He added that gender equality is still not reflected in ‘participation in economic activities’ which is not a good thing for women empowerment.

Workforce Participation Rate in Men v/s Women

“In 2011, the workforce participation rate at all India level is 25.51% for women as compared to 53.26% for men. While there is no urban-rural gap for males (53%), there is a considerable rural-urban gap for females, when workforce participation rate for rural women is 30% it is only 15.4% for urban women,” Srivastava said, mentions ANI report.

Also Read: In Netherlands, PM Narendra Modi pitches for Women Empowerment in India

Women Empowerment by building women’s Hostels for widows and women in distress

Rakesh Srivastava, the secretary of Ministry of Women and Child Development also shared that the government is working on women’s hostels that can also be utilized by the widows and women in distress in India.

Srivastava said “Women form an integral part of the Indian workforce. They need to be equal partners in the society for them to be equal participants in work. Women have to contend with discriminatory laws, institutions and attitudes that restrict their leadership and full participation in public life.” He added that what prevents women from becoming effective leaders is unequal access to resources.

October 15 will be observed as ‘Women Farmer’s Day’ all thanks to Krishna Raj, Minister of State for Agriculture and Farmers Welfare. This move by a minister, noticing rural women’s contribution in farming paves way for women empowerment of rural women.

Krishna Raj said, “Women can make enormous contributions to economies, whether in businesses, on farms, as entrepreneurs or employees, or by doing unpaid care work at home.”


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