Indpaedia - User contributions [en-gb]

Assam: Political history

2019-02-21T14:04:49Z

Shivam: /* Zubeen starts own stir */

File:Diaspora dreams .jpg

2019-02-21T13:42:39Z

Shivam:

Diaspora: India

2019-02-21T13:41:28Z

Shivam: /* 2016: India, Pakistan, Bangladesh and the world (in 2016?) */

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[[Category:India |I ]]
[[Category:Diaspora |D ]]
[[Category:Pakistan |D ]]
[[Category:Bangladesh |D ]]

=Countries preferred most by Indian settlers=
==2018: UAE, USA, Saudi Arabia, Pakistan, Oman==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F03%2F25&entity=Ar02321&sk=9B8CB6B1&mode=text March 25, 2018: ''The Times of India'']

[[File: Population of Indians in Oman, Saudi Arabia, United States, UAE and Pakistan, 1990-2017.jpg|Population of Indians in Oman, Saudi Arabia, United States, UAE and Pakistan, 1990-2017 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F03%2F25&entity=Ar02321&sk=9B8CB6B1&mode=text March 25, 2018: ''The Times of India'']|frame|500px]]

'''UAE, Saudi Arabia, Oman: Gulf countries remain top draw for Indian settlers'''

More Indians have settled abroad than any other people in the world. The UN says one out of every 20 emigrants today is Indian. That means about 1.7 crore of us, or roughly the population of Mumbai in 2010. For the UN, anyone who has lived in the same foreign country for more than a year is an emigrant. In which countries are India-born people most heavily concentrated? The UAE, USA, Saudi Arabia, Pakistan and Oman are the top five places now, but Pakistan was number 1 three decades ago. Oman has been the top destination since 2010.

=Countries that prefer Indians=
==2015,’16: OECD countries==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F06%2F23&entity=Ar01514&sk=E5EFE437&mode=text Lubna Kably, Indians get most naturalised citizenship in OECD nations, June 23, 2018: ''The Times of India'']

The total inflow of new immigrants to OECD countries was 70.6 lakh during 2016, a minuscule rise of less than 1% over the previous year’s figure of 70.4 lakh.

China retained its leadership position, accounting for 7.6% of the inflow. With 2.71 lakh new immigrants, India occupied fourth place and accounted for 3.8% of the total inflow. Over the past two years, migration from India has remained stagnant at 3.8%. However, in terms of standalone numbers, there was a small increase from 2.68 lakh in 2015 ,reports the International Migration Outlook (2018) released by OECD in Paris on June 20.

The Organisation for Economic Cooperation and Development (OECD) comprises of 35 member countries, including European countries, the United States of America, Canada, Australia, New Zealand and Japan.

For the first time, the International Migration Outlook, an annual publication, presented consolidated data on all categories of temporary labour migration. OECD countries were home to over 42 lakh temporary foreign workers during 2016. The main receiving countries for temporary foreign workers were Poland (which had 6.72 lakh workers) and the US (with 6.6 lakh workers).

In 2016, almost 21 lakh people acquired the nationality of an OECD country, up 3% from 2015, even as it remains within the OECD average of the last 10 years. India leads the pack, being the top origin country for naturalised foreigners (1.3 lakh).

=Size of Diaspora=
'''See graphic''':

''The ''estimated '' strength of the Indian Diaspora across the world, as in 2017''

[[File: The ''estimated '' strength of the Indian Diaspora across the world, as in 2017.jpg|The ''estimated '' strength of the Indian Diaspora across the world, as in 2017; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=STATOISTICS-YOU-WILL-FIND-AN-INDIAN-IN-AT-14042017009014 ''The Times of India''], April 14, 2017 |frame|500px]]

==2015==
===2015: 1.30 lakh PIOs acquired OECD citizenship===
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=13L-in-15-India-tops-list-of-foreign-30062017020011 1.3L in '15: India tops list of foreign citizenship, June 30, 2017: ''The Times of India'']

[[File: Top 5 countries of origin of new immigrants to OECD countries, 2013-15 and top 5 destination countries for Indian migrants, 2015-16.jpg|Top 5 countries of origin of new immigrants to OECD countries, 2013-15 and top 5 destination countries for Indian migrants, 2015-16; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=13L-in-15-India-tops-list-of-foreign-30062017020011 1.3L in '15: India tops list of foreign citizenship, June 30, 2017: ''The Times of India'']|frame|500px]]

India tops the list of origin countries of naturalised citizens across the world, indicating that the diaspora is not apprehensive of acquiring foreign citizenship.
In 2015, 1.30 lakh people of Indian origin, comprising largely of expatriates on work visas, acquired citizenship of OECD member countries.This was followed by Mexico (1.12 lakh) and the Philippines (94,000). China came fifth with 78,000 opting to relinquish their citizenship. These were the findings of the report International Migration Outlook (2017) released by Organisation of Economic Co-operation and Development (Oecd) in Paris on Thursday.

The report mentioned that in 2015, just over 20 lakh people acquired the nationality of an OECD country.This was slightly above (3%) the 2014 figure, even as it remains within the Oecd average of the past 10 years.

OECD is a global thinktank of 35 member countries, which include European countries, USA, Canada, Australia, New Zealand and Japan. An earlier Oecd report had pointed out that India had the world's largest diaspora with 156 lakh migrants.

“Improving the integration of immigrants and their children, including refugees, is vital to delivering a more prosperous, inclusive future for all,“ said OECD Secretary-General Angel Gurría in the report.

China retained its top position when it came to new immigrants to OECD countries.However, on this front, the refugee crisis led to a large influx of immigrants from Syria, pushing India down one spot to the fifth position. Humani tarian migration, rather than migration for better jobs or lifestyle, dominated the scene during 2015 and would continue to do so in the immediate future, the report stated. The total inflow of new immigrants to OECD countries in 2015 was 70.39 lakh and new immigrants from China accounted for nearly 7.8% of the inflow. In 2013, nearly one in ten immigrants were from China.

Migration flows from India to OECD also dipped slightly , from 4.4% of the total inflows countries in 2013 to just 3.9% in 2015. However, in terms of standalone numbers, there was an inflow of 2.68 lakh immigrations from India during 2015 to OECD countries, as opposed to just 2.40 lakh in 2013. (see table). Data showed that USA, Canada, UK, Australia and Germany continue to be the favoured destinations of Indian migrants.

Both China and India continued to be the major source countries for international students. Over half of the international students in the OECD countries originate from Asia. Chinese students, despite a 7% drop in their numbers between 2013 and 2014, were the most dominant with six lakh enrolments during 2014. They were followed by Indian students whose number at 1.86 lakh during 2014 was up by 13% compared with the previous year. USA received more than 40% international student enrolments.

===2015/ Indian diaspora is world's largest at 16m: UN===
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=UN-Indian-diaspora-is-worlds-largest-at-16m-14012016022001 ''The Times of India''], Jan 14 2016

Somini Sengupta

''' UN: Indian diaspora is world's largest at 16m '''

According to the United Nations estimates, 244 million people, or 3.3% of the world's population, live in a country other than the one where they were born.Their ranks are growing at a faster pace than the world population as a whole, with enormous economic, social and demographic repercussions for their native and adopted countries.

However, they are concentrated in just 20 countries. By far, the most popular destination in 2015 was the United States, followed by Germany , Russia and Saudi Arabia.
Indians make up the largest diaspora: 16 million Indians are scattered across the world, which partly reflects the country's demographic size (1.2 billion) and youth (median age is around 26).

After India, Mexico has the second largest diaspora, with 12 million living abroad, the majority of them in the US.

===2015, Indians world's largest diaspora===
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=PRAVASI-BHARATIYA-DIVAS-20-of-Indian-migrants-reside-09012017010074 PRAVASI BHARATIYA DIVAS - 20% of Indian migrants reside in UAE: Report, Jan 9, 2017: ''The Times of India'']

'''Indians World's Largest Diaspora'''

The migration of Indians from the country to the United Arab Emirates (UAE) formed the second largest corridor in terms of number of migrants in 2015, according to a report released by the Organisation for Economic Cooperation and Development (OECD).

The flow of migrants from India to the UAE between 1995 and 2015 stood at 28 lakh, making UAE the top destination country for Indian migrants (It ranked fourth place in 1995).

The corridor between Mexico and the United States remains the largest in terms of the volume of migrants. In 2015, the flow from Mexico to US stood at nearly 55 lakh. Migration flow between 1995 and 2015 has been computed by OECD by taking the difference between the number of migrants in each of these two years.

In 2015, Indians accounted for the largest diaspora in the world with 156 lakh migrants, according to OECD's report -`Perspectives on global development, 2017: International migration in a shifting world.' The report points out that 24.3 crore people were living outside their country of birth in 2015, accounting for 3.3% of the world's population. This was a significant increase over the past twenty years -in 1995 only 2.7% of the world's pop ulation comprised of diaspo ra. The move of migrants has increasingly been towards high income countries.

The number of migrants from India living in the UAE grew by 126% between 2005 and 2010, accounting for nearly 20% of the global Indian mi grant stock in 2015 (In 1995, this constituted just 9% of India's diaspora). Immigrants now account for almost 70% of the total population in Kuwait and more than 80% in Qatar and the UAE. Indians are the sec ond largest immigrant group in the US, after Mexicans ac counting for 4.7% of the 413 lakh foreign born population.

A significant portion of Indi an immigrants in the US AS are recent arrivals: 51% of the total Indian born population arrived during or after 2000, compared to 36% of the foreign born population as a whole.

As regards the future, OECD's report said increasing protectionist measures were being adopted by high income countries, which should see a shift in the migration trends.

==2016: India, Pakistan, Bangladesh and the world (in 2016?)==
[https://timesofindia.indiatimes.com/india/desi-diaspora-largest-in-the-world/articleshow/62076636.cms Lubna Kably, December 15, 2017: ''The Times of India'']

'''See graphic''':

''i) The countries to which Indians go; <br/> ii) Top 7countries of origin for global diaspora; <br/> iii) Number-Percentage of Indian diaspora, country-wise''

[[File: The countries to which Indians go; Top 7countries of origin for global diaspora; Number-Percentage of Indian diaspora, country-wise.jpg|i) The countries to which Indians go; <br/> ii) Top 7countries of origin for global diaspora; <br/> iii) Number-Percentage of Indian diaspora, country-wise. <br/>All figures presumably for 2016. <br/> From: [https://timesofindia.indiatimes.com/india/desi-diaspora-largest-in-the-world/articleshow/62076636.cms Lubna Kably, December 15, 2017: ''The Times of India'']|frame|500px]]

'''HIGHLIGHTS'''

Out of a global population of 7.3 billion, one of every 30 people was a migrant in 2015.

The Indian diaspora constitutes 6% of the total number of international migrants.

The Indian diaspora is the world's largest, with slightly more than 15.6 million people from India living overseas. The Indian diaspora constitutes 6% of the total number of international migrants (people living outside the country of their birth), which was estimated at 243 million in 2015. The global figure has risen by 10% over that recorded in 2010, a recently released United Nations report said.

In other words, out of a global population of 7.3 billion, one of every 30 people was a migrant in 2015. However, if computed as a percentage of the world's population, the growth of thediaspora has been largely static, from 3.2% in 2010 to 3.3% in 2015, according to the 'World Migration Report (2018)', published by the International Organisation for Migration, a UN agency.

According to the report, nearly half of all the international migrants worldwide in 2015 were born in Asia, primarily originating from India, China and other South Asian countries. After India, Mexico has the second largest diaspora. Russia, China, Bangladesh and Pakistan follow (see graphic). Notably, people in the working age group, between 20 to 64 years, account for a significant chunk of the international migrant population, nearly 72%. Since 1970, the US has been the main destination for international migrants.

The number of foreign-born people residing in the US has almost quadrupled from fewer than 12 million in 1970 to 46.6 million in 2015 (of whichnearly two million were of Indian origin). The Gulf nations house the biggest share of the Indian diaspora — nearly 3.5 million or 22% of the total Indian diaspora were in the UAE, and 1.9 million (or 12%) in Saudi Arabia.

According to immigration experts, protectionist measures adopted in these and other countries will eventually transform the diaspora landscape. We are witnessing intense vetting of applications for H-1B, the most popular work visa for Indians headed to the US, and entry into the US is likely to involve stricter rules.

The number of migrants to the Gulf has dipped drastically in recent years, owing to economic conditions and the protectionist measures adopted by these countries. As reported earlier by TOI, pan-India emigration clearance for the Gulf in 2016, 5.07 lakh, showed a decline of 33% as compared to the previous calendar year. The decline trend has continued in 2017.

== 2017: Indian migrants abroad, Foreign born immigrants in India ==
[https://www.indiatoday.in/magazine/up-front/story/20170320-narendra-modi-index-exposure-pullquote-maneka-gandhi-985960-2017-03-10 India Today Web Desk , Diaspora dreams “India Today” 20/3/2017]

''' See graphic '''

[[File:Diaspora dreams .jpg| Diaspora dreams [https://www.indiatoday.in/magazine/up-front/story/20170320-narendra-modi-index-exposure-pullquote-maneka-gandhi-985960-2017-03-10 .<br/>“India Today”]|frame|500px]]

==2018: India, Pakistan, Bangladesh and the world ==
[[File: Migrant population by country of origin, 2017.jpg|Migrant population by country of origin, 2017 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F03%2F27&entity=Ar01316&sk=B55BE497&mode=image March 27, 2018: ''The Times of India'']|frame|500px]]

'''See graphic''':

''Migrant population by country of origin, 2017''

Subramania Bharati

2019-02-21T05:39:24Z

Shivam: /* Connections with Gandhi: 1919 */

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[[Category:India |B ]]
[[Category:Literature |B ]]

=Connections with Gandhi: 1919=
[http://www.thehindu.com/news/national/A-new-98-year-old-photo-of-an-intense-Bharati-is-revealed/article17046941.ece B Kolappan, Jan 17, 2017: The Hindu]

[[File: A photograph of Mahakavi Subramania Bharati in 1919.jpg|A photograph of Mahakavi Subramania Bharati in 1919; [http://www.thehindu.com/news/national/A-new-98-year-old-photo-of-an-intense-Bharati-is-revealed/article17046941.ece B Kolappan, Jan 17, 2017: The Hindu]|frame|500px]]

'''A new photo of 1919 of an intense Bharati is revealed''': Please see picture

Mahakavi Subramania Bharati’s turbaned visage and intense gaze come back to life in a little-known photograph that was discovered, making it only one of six available images of the patriot-poet.

The photograph, discovered in New Delhi by Y. Manikandan, Professor at the Department of Tamil language of Madras University, was released at The Hindu Lit For Life fest.

It was taken at the Ratna Company, a photo studio situated in Chennai’s Broadway, apparently to promote English lectures on “The Cult of the Eternal — Being a scientific exposition of the art of conquering death” by Bharatiyar at the Victoria Public Hall on March 2, 1919. The advertisement for the lectures was published in Annie Besant’s New India in the first week of March, and the meeting was presided over by Justice S. Subramania Iyer. Admission was priced, with tickets costing a rupee.

'''Meeting with Gandhi'''

Speaking at the event, Mr. Manikandan said Bharati met Mahatma Gandhi at the residence of Kasturi Ranga Iyengar, the Editor of The Hindu, on Cathedral Road in March 1919.

Also, Rajaji, who came to Chennai from Salem at Kasturi Ranga Iyengar’s invitation, was residing at the same house. Gandhiji stayed in the city between March 19 and 23 and there is a record of the meetings he attended. “So Bharati would have met him on March 21,” said Mr. Manikandan at an interaction with Professor A.R. Venkatachalapathy of the MIDS and writer Pazha Adhiyaman.

“Bharati is said to have liked the photograph very much. But scholar R.A. Padmanabhan had expressed disappointment that he could not trace it,” Mr. Venkatachalapathy said. His lectures were published in full in New India and The Hindu.

Rajaji, who was present during Bharati’s meeting with Gandhiji, is said to have described the poet’s appearance as similar to ‘a pitha sanyasi [a mad sanyasi].’

“Bharati sported a turban and beard and closely resembled the man in his Puducherry days,” said Mr. Venkatachalapathy.

'''Photo with family'''

Two photographs were taken in 1917 and the session was arranged by his friend from Puducherry, Vijayaragavachariyar. Besides Bharati, his wife Chellammal, daughters Thangammal and Sakunthala and Vijayaragavachariyar are seen in the picture. He agreed to pose for a photograph along with the members of Karaikudi Hindu Madhabimana Sangam and for a separate image in 1919.

Another picture was taken at poet Bharathidasan’s request. He had enquired about Bharatiyar’s health after he was attacked by an elephant of the Triplicane Parthasarasthy temple. One more picture taken when Bharati was 26 remains elusive. Mr. Manikandan said Irish writer James H. Cousin met Bharati in Puducherry and described him as one of India’s four important poets — besides Tagore, Sarojini Naidu and Sri Aurobindo.

= Copyright issues =
[https://www.indiatoday.in/magazine/leisure/story/20180528-who-owns-that-song-the-battle-for-subramania-bharati-ar-venkatachalapathy-1236226-2018-05-17 Latha Anantharaman , National Treasure “India Today” 28/5/2018]

For the Tamil people, the poems of Subramania Bharati are inseparable from the Indian freedom struggle. His work nourished love for the Tamil land and language without the taint of parochialism. Even today, no political meeting, school gathering or musical performance is complete without a patriotic Bharatiyar song. His Krishna songs stand unmatched in Tamil hearts. And what woman can resist a man who threw Tambrahm reticence to the winds and wrote love poems to his wife?

He belonged to the masses, as many Indian poets did. But in Bharati's case, his copyright also belonged to the masses. Left to himself, A.R. Venkatachalapathy explains, he would have written a paper about Bharati's copyright and buried it in an academic journal somewhere. Instead, he was talked into writing this lively book about it.

When Subramania Bharati died at 39, his impoverished widow Chellamma sold the rights over his works to his half-brother, C. Visvanathan. Visvanathan unearthed newspaper articles, essays, lyrics and poems from files and back issues, reconciled differing versions, compiled them, and published them in affordable editions. Bharati's works came to define a modern Tamil syntax and sensibility and permeated the flourishing magazine trade of the 1930s. When gramophone recordings and cinema came into the picture, those rights were acquired by industrialist A.V. Meiyappan, who had branched out into filmmaking. Meiyappan put Bharatiyar songs in a talkie and struck gold. But when filmmaker T.K. Shanmugam put a Bharatiyar song into his talkie, Meiyappan sued and demanded that Shanmugam's film not be released. With the might of Tamil pride, nationalism, reform, public sentiment, the new Madras government, and Chellamma behind him, Shanmugam campaigned to nationalise the rights to poetry that everyone was already singing in the streets. Meiyappan could not stand against the wave.

Visvanathan turned over the print rights and donated the original manuscripts to the government. His efforts were rightly evaluated probably only as the government struggled to publish its promised authoritative edition in later years. Visvanathan never made much money from his editions, as was often charged against him, but he raises one reasonable point on the other side of the argument. Was there such outrage about any other poet's copyright belonging to a relative or buyer? The answer is, of course, no. The singular history of Bharati's copyright testifies to the singular value of his oeuvre to his people.

Santiago Nieva

2019-02-21T05:15:11Z

Shivam: Created page with "{| class="wikitable" |- |colspan="0"|<div style="font-size:100%"> This is a collection of articles archived for the excellence of their content.<br/> </div> |} [[Category:Ind..."

File:On the rise .jpg

2019-02-21T04:13:06Z

Shivam:

E-commerce, M-commerce: India

2019-02-21T04:10:06Z

Shivam:

{| Class="wikitable"
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[[Category:India |E]]
[[Category:Economy-Industry-Resources |E]]
[[Category:Cuisine |E]]

[[File: On the rise .jpg| On the rise [https://www.indiatoday.in/magazine/the-big-story/story/20180528-flipkart-walmart-deal-1236230-2018-05-17#ssologin=1#source=magazine .<br/>“India Today”]|frame|500px]]

=Laws, rules=
== E-tailers must pay sellers in 2 days: RBI==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=E-tailers-must-settle-seller-payments-in-2-09102017021038 Digbijay Mishra, E-tailers must settle seller payments in 2 days: RBI, October 9, 2017: The Times of India]

E-commerce players have been mandated to clear payments of merchants within two days of intimation regarding the completion of transaction, the RBI has said in response to a query sent by an online seller. The central bank's response, reviewed by TOI, makes it clear that completion of transaction means the act of making the payment. Every e-commerce company has its own agreement with sellers about intimation regarding the completion of a transaction. Although typically , it is referred to as date of dispatch. At present, however, the majority of e-commerce companies take a week to 15 days to settle payments of sellers. Flipkart, for instance, has a 7-12 day cycle for various categories of sellers, including gold and silver retailers.

Sellers on multiple e-com merce platforms say leading etailers are not settling payments for prepaid orders according to the RBI regulations and they usually take about a week on an average. When contacted, an Amazon spokesperson said the company was compliant with the regulations. A Flipkart spokesperson declined to comment.

E-tailers charge a payment collection fee from sellers for both online payments and cash on delivery orders.

=History/ evolution on online shopping=
==The spread of smartphones changes shopping==
[http://indiatoday.intoday.in/story/e-commerce-online-shopping-india-smart-phones/1/397264.html ''India Today'']
[[File: ecom.jpg|Growth of mobile shopping,smartphone sales and e-commerce, Graphic courtesy: [http://indiatoday.intoday.in/story/e-commerce-online-shopping-india-smart-phones/1/397264.html ''India Today'']|frame|500px]]

The spread of smartphones is turning Indians into smart shoppers and converting e-commerce into m-commerce.

==Deals in E-commerce, US, China and India, 2012-15==
[[File: Deals in E-commerce, US, China and India, 2012-15.jpg|Deals in E-commerce; US, China and India: 2012-15; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=31_07_2015_024_067_003&type=P&artUrl=FLIPKART-BOOSTS-INDIAS-SHARE-31072015024067&eid=31808 ''The Times of India''], July 31, 2015|frame|500px]]

'''See graphic''':

''Deals in E-commerce, US, China and India, 2012-15''

==2013-17: India, the fastest growing e-comm market==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F29&entity=Ar02409&sk=46099EA3&mode=text India is fastest growing e-comm mkt: Report, November 29, 2018: ''The Times of India'']

[[File: Online retail growth (CAGR in 2017) in India and other major Asian economies. .jpg|Online retail growth (CAGR in 2017) in India and other major Asian economies. <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F29&entity=Ar02409&sk=46099EA3&mode=text India is fastest growing e-comm mkt: Report, November 29, 2018: ''The Times of India'']|frame|500px]]

India has the fastest growing online retail market among top global economies. The country’s online retail market witnessed a compound annual growth rate (CAGR) of 53% for the period 2013 to 2017, according to a latest report by consultancy firm Bain & Company.

The rapid growth, albeit over a small base, has been driven by aggressive discount-driven e-commerce marketplaces, advances in delivery infrastructure and increased smartphone penetration and data usage.

These conditions are giving rise to large retail ecosystems. “What we’re seeing is the emergence of scale open retail ecosystem platforms across the Asia Pacific region that offer retailers a compelling alternative to building and scaling their own capabilities,” said Melanie Sanders, partner at Bain & Company.

Retail ecosystems comprise communities of consumers, retailers and partners that rapidly reshape the retail landscape. They deliver a very sticky consumer proposition by combining services like e-commerce, chat, streaming, gaming or payments in a single platform or app, which shoppers are adopting globally, the report said.

While Alibaba and Tencent lead the best-known Asian ecosystems, India too is witnessing the emergence of retail eco-systems, led by Reliance, Flipkart/Walmart,Amazon/Future Group and Alibaba.

India’s total e-commerce retail sales in 2017 were pegged at around $20 billion and studies have indicated that another $50 billion of online e-commerce could be unlocked by adding new users and luring back internet users that do not currently shop online due to various reasons.

Despite the rapid growth, online retail penetration in India is low at 5% compared with markets such as China (20%) and the US (12%). India was ranked eighth in terms of online retail penetration among 11 countries.

Consumer electronics segment in India has the highest online penetration (17%, which is e-commerce sales as percentage of total retail sales) followed by apparel and footwear (9%) and beauty and personal care (1%). Food & grocery, with overall retail sales of around $530 billion in 2017, has one of the lowest online penetrations at 0.1%.

==2014-16: change in three major trends==
[[File: Changing trends in online shopping1.jpg| 2014-16: Changing trends in online shopping: 1 |frame|500px]]
[[File: Changing trends in online shopping2.jpg| 2014-16: Changing trends in online shopping: 2 |frame|500px]]
[[File: Changing trends in online shopping3.jpg| 2014-16: Changing trends in online shopping: 3 |frame|500px]]
[[File: Changing trends in online shopping4.jpg| 2014-16: Changing trends in online shopping: 3 |frame|500px]]

[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=THREE-TRENDS-THAT-SHOW-HOW-INDIAS-E-SHOPPING-09102016023014 Samidha Sharma, How India's e-shopping has changed, Oct 09 2016 : The Times of India]

THREE TRENDS THAT SHOW HOW - INDIA'S E-SHOPPING HAS CHANGED

This festival season is seeing the rise of a new breed of e-shopper who's as cool about shopping for a smart TV as for dal and detergent

Two years ago in 2014 when Flipkart, the country's largest web retailer kicked off its first flagship Big Billion Day sale, things didn't quite go as per plan. The e-tailer wasn't able to handle the unprecedented traffic and its founders were left apologising to disgruntled shoppers for the snafus. A lot has changed since then, not only for Flipkart and for all e-commerce players, but also in the way India shops online.

Beyond the intense fight for capturing market share emblematic of the e-commerce sector, which reaches fever pitch this time of the year, what's starting to emerge is a breed of seasoned shoppers who is as comfortable shopping for an expensive smart TV as ordering their dal-detergent online.

''' Small-Town India Becomes Big Online '''

If we were to believe data from companies, online retail's march into smaller Indian cities seemed to have finally made progress this year after many attempts to amp up business from these towns. What'll be interesting to watch is if these numbers sustain. Amit Agarwal, country head of Amazon India, says among the 15 million units it sold during its `Great Indian Festival', orders came from 90% of India's pin codes. The number of new customers increased five-fold over last Diwali with 70% of new shoppers coming from tier II and tier III towns, he adds. Overall, 65% of Amazon's orders come from towns categorized as tier II (population of one million) and below. Rival Flipkart says sales from tier II and below cities went up to 42% from 34% in the past one year.

Even as e-tailers tout their strides beyond the big cities, estimates say the number of online buyers remained at around 68 million in 2016 and majority of them came from metros. “It's true that a big chunk of new customers are from tier II and tier III but their ticket sizes and frequency of purchases will take some time to increase as most of them are only shopping because of discounts,“ says Satish Meena, forecast analyst at Forrester Research.

A good part of the sales during the festive season typically comes from incremental wallet share of existing buyers. The market expansion due to new shoppers is still limited, he says.

But not for want of trying. To boost the e-tailing market which has stuttered in the past year, having remained at $10 billion in size after galloping at 400% growth the previous year, companies brought in attractive EMI and exchange schemes on electronics and white goods. Membership programmes like Amazon Prime were aimed at locking in customers on to online platforms.

Flipkart's co-founder & CEO Binny Bansal says the average order size is up 20% despite discounts compared to regular days. The e-tailer says it also brought in 1.5 million new customers this year versus one million that came on board last year even as cash-on-delivery (COD) orders came down from 70% to 60% of all Big Billion Day transactions.The decline in COD shows that more Indians now trust online platforms to deliver the goods.

''' Size And Price No Bar For Buyers '''

Mobile phones still account for a huge chunk of sales but there's been a palpable focus on high-ticket categories like white goods and large appliances. Devita Saraf, CEO of Vu Television, a brand which sells more than 60% of its products online at an average price point of Rs 25,000, says there's an emergence of a new kind of customer who is online-first in their shopping behaviour. She says her brand was among the top sellers on Flipkart during the five-day sale.

Amazon was seen pushing daily consumables heavily, a first during the sale season which is defined by deals on mobiles and electronics. During the five-day sale consumers were looking for deals on everyday use products like detergents, diapers, grocery and household products indicating that they did not forget their everyday purchases while shopping for other deals, the company says.

''' Less Discounting, More Sales? '''

Post March this year, most e-tailers reduced promotional campaigns after the Indian government introduced new policy guidelines which outlawed online marketplaces from offering discounts directly. While companies did eventually find ways to get around the re gulation, this year's sales haven't offered the kind of deep discounting as previous years. But despite that, volumes are up. Consumers are getting used to buying online more with over 20-25% of users now making a purchase once in two months, says Sahil Barua, co-founder and CEO of e-commerce logistics startup Delhivery .

Radhika Aggarwal, co-founder and CBO, ShopClues, sees this as a sign of the Indian ecommerce market maturing. “E-commerce was built on discounts to change consumer behaviour as there were no other hooks at the time.But now people wait for the sales because of the kind of selection of products they find online,“ she says. What happens post the sale-month spike will be decisive in understanding if the overall market has grown spawning new buyers or the growth was just seasonal.

==2017-2022==
See graphic.

[[File: Growth in e-commerce, 2017-2022, expected.jpg|Growth in e-commerce, 2017-2022, expected; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=HOW-FAST-WILL-INDIAN-E-COMMERCE-GROW-04062017022017 The Times of India], June 4, 2017|frame|500px]]
[[File: India Today , August 29,2016 .jpg| India Today , August 29,2016 |frame|500px]]

=Background/ profile of online shoppers=
==70% of new customers from tier II & III towns/ 2016==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=70-of-new-customers-from-tier-II-III-03102016025026 70% of new customers from tier II & III towns, says Amazon, Oct 03 2016 : The Times of India]

After a year of tepid online retail sales, etailers like Flipkart, Amazon and Snapdeal witnessed a wave of consumers flocking to their platforms as the much-publicised annual festive season sale kicked off over the weekend.

Interestingly, a significant chunk of the new online shoppers is reported to have come from smaller towns in states like Sikkim, Tripura and the Andaman and Nicobar Islands. These towns are a potentially huge market that online retailers are eyeing to expand the overall ecommerce pie, which has largely failed to grow over the past year. For the Seattle-based Amazon, traffic from tier II and tier III towns increased 17 times compared with last year indicative of how discounting has aided the entry of a new se of buyers. The top six-eight citi es typically contribute 90% of sales for all the consumer inter net players, leaving a yawning gap between these markets and the still largely untapped smal ler towns.

Manish Tiwary , VP , catego ry management at Amazon In dia, said, “We have seen a five fold growth in new customer ac quisition and 70% of them ca me from tier II & III towns.“

While Flipkart and Snapdea are still to detail the growth in number of shoppers from smal ler towns, Shopclues claimed to have notched up double of the business from last year with a significant rise in traffic co ming from users in tier II cities.

A Google trends report sha red by Shopclues, which posi tions itself as targeting markets outside of metros, said these cus tomers searched for “online shopping“ in the run up to the annual sale event. “Every consu mer is a deal seeker and during such events it is likely that users from smaller towns will come to these sites. A lot of it is channe led by rising smartphone penet ration,“ said Arvind K Singhal ,chairman at Technopak, retai advisory firm.

The country's largest e-tai ler Flipkart, which began its an nual Big Billion Days sale on Sunday , claimed to have sold half a million units within the first hour of the event. Amazon, which started its sale on Satur day, said it registered a billion hits on the first day, clocking 1.5 million units in the first 12 ho urs. Delhi-based Snapdeal claimed it was getting 180 orders per second in the first half and it ended up with 11 lakh buyers purchasing on its platform in the first 16 hours, registering a sixfold growth in sales volume.

“We have seen a three-time growth on day one compared with last year. The trend is that we are outpacing Saturday's sale on Sunday which is unusual because traditionally sales are lower on day two of most sale events,“ Tiwary said, adding that smartphones have been the biggest grosser for Amazon. Television sales, usually most popular during the festive season, grew 25 times on the back of exclusive partnerships with the likes of Sanyo.

For Flipkart, which is locked in a battle with Amazon for the leadership position, the number of large LED TVs sold in six hours was higher than the total number of TVs sold during The Big Billion Days last year . The Flipkart-owned Myntra saw its revenues increasing three times in the first hour compared with last year . “What makes it special is that the number of units sold in the first six hours of sale surpassed the total units sold in a day during the first day of Big Billion Days in 2015,“ said Kalyan Krishnamurthy , head, category design organisation, Flipkart. Both Flipkart and Amazon are investing aggressively to garner as much market share during the annual sale event on the back of discounts and the promise of faster services and better user experience.

=Business practices=
== Large sellers pay much less as platform fee==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F01%2F07&entity=Ar01504&sk=9CCD4581&mode=text Digbijay Mishra, Biggies pay lower online platform fee than small cos, January 7, 2019: ''The Times of India'']

[[File: 2017, 2018- What online sellers paid as platform fee.jpg|2017, 2018: What online sellers paid as platform fee <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F01%2F07&entity=Ar01504&sk=9CCD4581&mode=text Digbijay Mishra, Biggies pay lower online platform fee than small cos, January 7, 2019: ''The Times of India'']|frame|500px]]

''‘E-Commerce Players Favour Alpha Sellers’''

Large online sellers who have affiliations or investments from e-tailers like Amazon and Flipkart are paying only about 5-11% of their revenue as marketplace fee, while regular third-party sellers typically pay at least 15% as platform fee.

The latest balance sheets of major online sellers like Cloudtail, Appario Retail, and Tech-Connect Retail show the amount they pay as platform fee to online marketplaces. Cloudtail paid Rs 315 crore as platform fee to Amazon on a revenue of Rs 7,149 crore in FY2018. That’s 4.4%. It’s about 11% for Tech-Connect Retail, which owns one of the largest sellers on Flipkart, RetailNet. These entities drive large volumes of sale for companies like Amazon and Flipkart.

Small third-party sellers have frequently alleged that e-commerce players favour these alpha sellers on their platforms. This is among the reasons that persuaded the government recently to issue a circular stating that sellers that have direct or indirect investment from the e-commerce platforms cannot sell on these platforms.

Industry sources also say that these platforms are subsidising the logistics spends of the big sellers. They point to the rising spends on delivery—or ‘logistics service charge’—for these platforms in the last two financial years. The annual reports of the entities that run Flipkart and Amazon’s marketplaces show these spends are increasing, but do not give specific details on them.

When contacted on these figures, Amazon India did not respond to the queries. Flipkart said: “We have several tiers that sellers are classified into on the basis of several metrics such as business volume, number of returns, customer experience and satisfaction, etc. Commissions, fees, value added services like logistics etc, are priced based on the tier a seller is in. We provide them with the tools and support to help them grow and to climb the tiers.”

Previously, online seller associations like AIOVA have raised these issues with government and authorities such as the Competition Commission of India (CCI). Both Flipkart and Amazon have maintained they do not treat third party sellers in a biased manner.

The new FDI rules are an attempt to comfort small traders. The timing of the policy change is being linked to the general elections later in the year. E-tailers are trying to come up with new structures that will allow them to continue with their operations with the least possible impact on revenue.

= Complaints against e-commerce companies =
== 2014-Dec 16, an increase of more than 300%==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=E-comm-plaints-up-by-300-in-3-08022017013027 E-comm plaints up by 300% in 3 yrs, Feb 3, 2017: The Times of India]

The number of complaints against e-commerce companies has increased by more than 300% during the past three years, the government told the Lok Sabha. This points to the need for a robust mechanism to deal with such complaints in view of the government's thrust for digitisation and more and more people shopping online.

Quoting the number of complaints received by the National Consumer Helpline (NCH), minister of state for consumer affairs C R Chaudhary submitted that the provi sions of the Consumer Protection Act cover all goods and services, including e-commerce. The NCH data show while had received only 418 compla it had received only 418 complaints relating to e-commerce in 2014-15, the number increased to 1,386 in 2016-17 (till December end). NCH has received complaints against some popular entities, including Paytm, Snapdeal, Amazon, Flipkart, eBay , Myantra and Jabong.

“A consumer can file a complaint relating to e-commerce transactions in the appropriate consumer forum established under the Act,“ Chaudhary said. He also said that before approaching a consumer forum, complainants can use alternative dispute resolution mechanism through the NCH and Online Consumer Mediation Centre in the National Law School, Bengaluru.

==Complaints against e-commerce companies/ 2017==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Complaints-against-e-comm-cos-top-list-at-22052017012020 John Sarkar & Dipak Dash, Complaints against e-comm cos top list at national consumer helpline, May 22, 2017: The Times of India]

[[File: Top 4 sectors by user grievances, April 2015-March 17.jpg|Top 4 sectors by user grievances, April 2015-March 17; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Complaints-against-e-comm-cos-top-list-at-22052017012020 John Sarkar & Dipak Dash, Complaints against e-comm cos top list at national consumer helpline, May 22, 2017: The Times of India]|frame|500px]]

''' list 15% Of All Plaints Against Shopping Sites '''

As more Indians flock to the the internet to shop for their daily needs, complaints are building up about e-commerce companies.

The National Consumer Helpline (NCH), a joint initiative of the consumer affairs department and Indian Institute of Public Administration (IIPA), receives about 3.5 lakh grievances annually.

This is only a fraction of the complaints registered by consumers, as there are other avenues for dispute redressal, including the consumer approaching the companies directly. But NCH said complaints relating to e-commerce overtook all other sectors since September.

“Due to increased penetration of internet and more companies pushing for online sale of their products, the number of complaints has also increased,“ said Prof Suresh Misra of IIPA.
“We have tied up with 35 e-commerce companies for faster resolution of complaints and it's doing well,“ he added.

E-commerce received the highest number of com plaints this year, of the total complaints received by NCH.

Most complaints against e-commerce companies were related to “paid amount not refunded“, according to data provided by NCH. Makemytrip, the country's largest online travel agent, agreed.

“Issues like customer requesting for full refund for airline tickets due to a personal emergency takes a while as it requires us to go to our partners for special waivers,“ said a Makemytrip spokesperson.

Most companies attributed the rising number of consumer calls to requests for cancellation and not complaints.

The rising number of consumer grievances has not gone unnoticed by the government. In June 2016, PM Modi had flagged concerns over the large number of consumer complaints relating to e-commerce including booking of tickets and hotel reservations. He had asked officials for a review of the nature of issues and had asked the consumer affairs ministry to list the number of complaints against each company .

=Digital wallets, digital payments=
==Limited liability==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F06&entity=Ar02312&sk=376BBD96&mode=text Ombudsman, limited liability cover to make e-wallets safer, December 6, 2018: ''The Times of India'']

To inspire confidence among users of digital payments, the RBI has said that it will introduce the concept of limited liability for prepaid instruments, which includes digital wallets. Also, a new office of ombudsman for digital transaction is being created to take up complaints from individuals for prepaid instruments.

Last year, the central bank had introduced the concept of ‘zero liability’ for card users, provided they acted prudently in not divulging credentials and reported frauds in time. Under this policy, cardholders who lost money due to a thirdparty breach and who reported the loss within three days would get all their money back.

Even where there is some negligence on the part of the customer in not responding to alerts and not notifying the bank, the maximum liability was capped at Rs 5,000 for a basic savings account and Rs 10,000 for most other accounts. For credit cards with limits above Rs 5 lakh, the maximum liability has been fixed at Rs 25,000. However, where the customer has shared his password, he will be liable for all the losses until he reports it to the bank.

On Wednesday, the RBI said that the same limited liability concept will be extended to users of prepaid instruments. The liability limits will be announced by the RBI. According to banks, the liability limits for e-wallets is likely to be lower, considering the smaller transaction size and lower balances.

The creation of an ombudsman for digital transactions, besides providing a platform for customers, will enable the RBI to keep track of discrepancies.

“RBI’s endeavours to promote a less-cash society has resulted in a significant rise in the volume, value and channels for conducting digital transactions. For promoting the level of trust, a dedicated and empowered grievance redressal system is a pre-requisite,” said RBI deputy governor M K Jain. “It will cover all entities falling within RBI’s jurisdiction, which means nonbanks as well,” said Jain.

==The usage of digital wallets/ e-wallets==
===2016-18===
[[File: The use of Digital wallets, 2016-18.jpg|The use of Digital wallets, 2016-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F06&entity=Ar02312&sk=376BBD96&mode=text Ombudsman, limited liability cover to make e-wallets safer, December 6, 2018: ''The Times of India'']|frame|500px]]

'''See graphic''':

''The use of Digital wallets, 2016-18''

===2018: Indians install e-wallets, but don’t use them===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F01%2F28&entity=Ar02110&sk=A3445A2E&mode=text Rachel Chitra, January 28, 2019: ''The Times of India'']

[[File: Indians and e-wallets, presumably as in 2018.jpg|Indians and e-wallets, presumably as in 2018 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F01%2F28&entity=Ar02110&sk=A3445A2E&mode=text Rachel Chitra, January 28, 2019: ''The Times of India'']|frame|500px]]

As many as 85% of Indian users install e-wallets and fintech apps like MobiKwik and Paytm, only to let them remain dormant, according to a study.

“Companies spend huge sums of money to advertise, market themselves, offer discounts and cashbacks to get users on board. But after getting them on board, if usage is low, then it is an indicator that the apps aren’t doing enough to keep customers engaged. And the churn rate (defined by no transaction done in the first two weeks) for India at 85% is worrisome — and is higher than the global average of 77%,” said Almitra Karnik, head of marketing and global growth at CleverTap, which conducted the study.

CleverTap is a Californiabased behavioural analytics company that measured usage patterns in 700 million mobile devices globally for the study. Karnik said if the app is not used in the first two weeks, it will invariably remain dormant thereafter, until a day when the user decides to uninstall it.

About 27% of Indian users uninstall e-wallets within two weeks of usage. But Indian apps seem to have better retention power than their global peers, who have a higher uninstallation rate of 35%. The average rate of reinstallation in India was a low 3%, showing that when a customer has a bad experience with a financial services app, s/he is unlikely to ever return to it.

Paytm did not respond to a request for a comment. Payment services firm PhonePe’s CEO Sameer Nigam said its app retention numbers are much healthier than what the CleverTap study shows. He said that was because a large percentage of its installs are organic (without providing incentives for the download) or referral-driven. “More than 75% of uninstalls happen when the installs are driven by low-quality digital marketing,” he said.

Fintech firm PayU’s CEO Jitendra Gupta also said 85% of downloads of its consumer-facing app LazyPay is organic. The user, he said, sees a clear proposition and is not driven by things like cashbacks. He admitted that the uninstall rate is 28-30%, but said this cannot be the only criterion to judge an app by. “On an average, every user is using LazyPay six times a month. We have 90% repeat users on a monthly basis. Besides, our uninstalls happen in cases where we don’t provide credit facility to the user, and those are obvious cases for uninstallation,” he said. LazyPay provides personal loans and pay-later options.

=Food ordered online=
==2015: Kolkata, Delhi top Zomato survey==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Kolkata-online-food-orders-fattest-Delhi-2nd-02012016001029 ''The Times of India''] Jan 02 2016

Rachel Chitra

The bhadralok of West Bengal, known for their discerning palate and robust appetite, lead the country with the biggest online food orders, at an average order size of Rs 690, a survey by Zomato shows.

Delhi comes second -at Rs 640 -but pulls off the high est single-value order at Rs 21,500. The food portal did not name the customer, though.

The other cities down the list are Hyderabad (Rs 625), Bengaluru (Rs 540) and Chennai (Rs 500); Mumbai (Rs 490) and Pune (Rs 450) draw up the end. Chicken biryani, burgers, butter chicken, pizza and hakka noodles are customers' most preferred orders.

Overall, north Indian fares on top in the 14-city suvey conducted from May to December 2015, but Chinese, Italian, south Indian and `healthy food' are also popular.

The data shows 86% of customers order from their mobile phones; 53% use Android devices, 29% on iOS handsets and 4% via mobile web gadgets. Only 14% use desktops to order food.

Despite most online payment sites like Paytm and Citrus Pay offering discounts, it is surprising that up to 70% of customers prefer to pay cash on delivery, the data shows. The Indian fondness for a good bargain notwithstanding, big discounts of more than 30% on online food orders actually fail to attract loyal customers, a recent report by food portal Zomato shows. Measuring a six-week retention rate, it found that 43% of repeat customers used discounts of 10% to 15%; 38% used discounts of 20-25% but only 14% made use of steep discounts of 30% or more.

Also, up to 70% of customers preferred to pay cash on delivery despite discounts offered by online payment sites. “It comes from the Indian psyche,“ Travelkhana.com former operations director Siddharth Misra says.“We have an ingrained suspicion of advancing money. So even with the best discounts online you'd still have a long way to go before you can con vince people to pay money ahead of delivery .“

Card payments have nonetheless recorded a growth of 12% to 16 % from September through December, Zomato's data shows.

The fallacy of big discounts is a lesson that not just Zomato learned; TinyOwl and Foodpanda, also clued in, have scaled back their operations. Earlier this week, Food Panda laid off 15% of its workforce and stopped blanket discounts across brands a few months ago.“Deep discounts don't work in the long run because they affect sustainability,“ Misra says.

Thirukumaran Nagarajan, co-founder of online grocery retailer Ninjcart, which boasts 1.18 lakh customers, says his company has stopped offering discounts and now focuses on improving backend operations. “Even though we've stopped offer ing discounts, we are still growing sizeably and receive between 1,200 and 2,000 orders a day ,“ he says.

Suvadip Guin, a software engineer in Bangalore, says Foodpanda and TinyOwl offered discounts of more than 50%. “Add my Patym 10% discount and say a food coupon from Ammi's biriyani or Pizzahut and I can purchase something worth Rs 1,250 for as little as Rs 400,“ he says.

=Government e- marketplace (GeM)=
==2016-18==
[https://timesofindia.indiatimes.com/business/india-business/startups-want-government-e-market-to-list-their-services-give-business/articleshow/67017932.cms Digbijay Mishra, December 10, 2018: ''The Times of India'']

[[File: The Government e- marketplace (GeM), as in 2018, Dec.jpg|The Government e- marketplace (GeM), as in 2018, Dec <br/> From: [https://timesofindia.indiatimes.com/business/india-business/startups-want-government-e-market-to-list-their-services-give-business/articleshow/67017932.cms Digbijay Mishra, December 10, 2018: ''The Times of India'']|frame|500px]]

'''See graphic''':

''The Government e- marketplace (GeM), as in 2018, Dec''

GeM was started in 2016 as a platform for online procurement of common goods and services for different central and state government departments, organisations and public sector companies.

=Government policies=
==The changes of 2019==
[https://www.livemint.com/Industry/4e8rKuiaJSGmsNU5BXUSvM/What-India-ecommerce-policy-entails-for-online-retailers.html Asit Ranjan Mishra, January 16, 2019:: ''Livemint'']

[[File: What India e-commerce policy entails for online retailers.jpg| What India e-commerce policy entails for online retailers <br/> From: [https://www.livemint.com/Industry/4e8rKuiaJSGmsNU5BXUSvM/What-India-ecommerce-policy-entails-for-online-retailers.html Asit Ranjan Mishra, January 16, 2019:: ''Livemint'']|frame|500px]]

''The new rules for FDI in e-commerce, to be implemented from 1 February, could throw a spanner in India's thriving online retail sector''

In a speech at the All India Traders Convention on 27 February 2014 ahead of the general election, Bharatiya Janata Party’s prime ministerial candidate Narendra Modi surprised everybody by not playing to the gallery.

“I don’t know whether I will gain politically or not by saying this," Modi told an audience full of traders, his party’s core vote bank. “Whether you like it or not, we need not be afraid of the global challenges in the business world. We should convert this to opportunity. We should not think that ‘if online trade comes, we will be finished’. You should demand (of) the government how to increase your capability to meet this new global challenge rather than telling the government, ‘shut down online trade’. How will you stop it? We have to accept the modern science and technology. We should not plan to flee, but to fight," Modi said.

Four years later, after extensively liberalizing retail trade, except allowing foreign direct investment (FDI) in multi-brand retail—which was a 2014 manifesto pledge—Modi is showing signs of nervousness. Poll reverses in recent state assembly elections and a resurgent opposition seem to have forced Modi to cosy up to his original voter base, the traders.

On 26 December, a day after Christmas, while festive sales peaked, the department of industrial policy and promotion (DIPP)—the nodal agency for formulating FDI policy—surprised everybody with fresh regulations that could throw a spanner in India’s thriving e-commerce marketplaces. The Modi government allowed 100% FDI under the e-commerce marketplace model but prohibited FDI in inventory based e-commerce. In the first, e-commerce companies act as platforms for vendors to sell their products and in the second, they can sell their own products.

The changes, which will take effect on 1 February, are five-fold: First, marketplace entities cannot buy more than 25% from a single vendor; second, marketplaces will not directly or indirectly give discounts on products; thirdly, entities in which there is equity participation by the marketplace entity cannot sell their products on the platform run by the marketplace; fourthly, e-commerce marketplace entity will not mandate any seller to sell any product exclusively on its platform only; and fifthly, marketplaces will have to submit a compliance report to the Reserve Bank of India (RBI) by 30 September every year.

While the first and second criteria were mandated even earlier, the DIPP always looked the other way when they were violated. The latest changes in the policy are widely believed to be a political move ahead of the general election due in April-May to assuage the trading community which has been hit by demonetization and the implementation of the goods and services tax.

Traders were also miffed with the Modi government’s e-commerce policy, as online trading platforms were harming their businesses by providing deep discounts.

India’s $18-billion e-commerce industry initially thrived in a policy vacuum, aggressively funded by venture capital firms. To legitimize the existing businesses of e-commerce companies operating in India, the government in March 2016 through press note 3 (of 2016 series) allowed 100% FDI in online retail of goods and services under the so-called ‘marketplace model’ through the automatic route and notified new regulations. DIPP through its 26 December notification has now added new stringent regulations to the ones existing in press note 3 of 2016.

While the fresh regulations could spoil plans for greater synergy between Flipkart and its new owner Walmart which operates in the cash-and-carry retail space where 100% FDI is permitted like in e-commerce marketplace entities, it also bars Amazon from selling products from subsidiaries like Cloudtail and Appario where it has significant investments. Cloudtail is a joint venture between Amazon and N.R. Narayana Murthy’s Catamaran Ventures.

The move to ban exclusive deals for products also hurts top online retailers such as Flipkart and Amazon. Flipkart, for instance, has exclusive partnerships with top smartphone brands such as Xiaomi and Oppo. Smartphones make up over 50% of e-commerce sales in India.

A DIPP official speaking under condition of anonymity insisted that press note 3 of 2016 only issues a clarification. “We have not formulated any new policy. We have not even gone to the cabinet for a new policy," he said. The department is formulating an e-commerce policy, a draft version of which is expected to be released soon, after a similar draft policy by the commerce department was rejected by e-commerce players.

When asked about the motive behind the clarifications, the DIPP official said: “Marketplace should be a pure marketplace. We hope these steps will ensure establishing a pure marketplace and influencing price will be more difficult," he added.

An official of an e-commerce company speaking under condition of anonymity said the new regulations are draconian and a bigger retrospective move than even the Vodafone tax issue. “It will not only impact e-commerce sector but also FDI inflow in other sectors because regulations can change overnight. The ecosystem is seeking more time for implementation. Under the current political scenario, we don’t expect a review of the regulations immediately. We will have to wait till the election season is over," the official added.

=== Govt: e-tail majors violated regulations, influenced prices===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F02%2F06&entity=Ar03302&sk=1412CFCE&mode=text John Sarkar, Govt accuses e-tail giants of violating FDI regulations, February 6, 2019: ''The Times of India'']

[[File: Govt- e-tail majors violated regulations, influenced prices.jpg|Govt- e-tail majors violated regulations, influenced prices <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F02%2F06&entity=Ar03302&sk=1412CFCE&mode=text John Sarkar, Govt accuses e-tail giants of violating FDI regulations, February 6, 2019: ''The Times of India'']|frame|500px]]

''Says Amazon, Flipkart Influenced Prices, Cos Deny Charges''

The government has defended its decision to rework the rules for the marketplace model, accusing the country’s top e-tailers Flipkart and Amazon of operating “hybrid” versions, which were anchored by inventory-based operations through a network of controlled sellers.

This is the first time since the new rules were announced on December 26 that there is clarity on how the e-tailers, who were lobbying at all levels in the government, were “circumventing” the previous rules. Earlier, the government had said it was acting on complaints submitted by several stakeholders.

“Flipkart and Amazon were influencing prices of goods on their platforms through various means, including direct price discounts, covering marketing expenses (marketing campaigns, EMIs, exchange offers) and extending concessional logistics services (packaging, courier, returns), e-wallet cashbacks,” a source told TOI. “Both Flipkart and Amazon involved various intermediaries and group entities in the chain to divide these discounts and spread losses, which impact the domestic retail sector.”

For instance, Amazon Wholesale India would buy branded goods in bulk from manufacturers and allegedly sold to sellers such as Cloudtail, Rocket Kommerce and Green Mobiles at a discount, with the losses shown on its books. Amazon Seller Services is accused of paying for marketing, zero-cost EMIs and some of the other expenses. It would also handle the logisticsrelated activities, with a discount built in. Amazon Pay was also offering cashbacks, which were seen as discounts.

Similarly, Flipkart India allegedly bought goods in bulk, sold it to sellers linked to it such as RetailNet, SuperComNet and OmniTech Retail, Truenet Commerce and India Flash Mart at a discount. Then, Ekart Logistics undertook packaging and shipments, with PhonePe offering cashbacks.

While sources said the operations violated Press Note 3 of 2016, Amazon and Flipkart denied any irregularities. “These comments are completely baseless and untrue. We have received no such communication from the government. We have always been and continue to be compliant with all local laws and regulations,” an Amazon India spokesperson said.

A Flipkart Group spokesperson refused to comment. “The impact on Flipkart seems to be less in the short term but there will be long-term ramifications on its business model due to the tweaks in the policy,” said a company executive.

Several sellers had complained about the practices adopted by e-tailers, which prompted the government to step in, sources said.

=Grocery=
==Physical Stores Offer More Grocery Than E-Tailers: Sachs, 2012==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=When-offline-deals-beat-online-ones-04102017023029 Digbijay Mishra, When offline deals beat online ones, October 4, 2017: The Times of India]

'''Physical Stores Offer More Grocery Discounts Than E-Tailers: Study'''

Goldman Sachs is slaying the perception that online players like Amazon and BigBasket have outsmarted brickand-mortar retailers with better pricing in daily consumables and groceries. In a recent research report, Goldman Sachs analysts noted that Amazon and BigBasket sold personal care products at 1030% premium compared to traditional supermarkets like D-Mart. The report though predicts online ordering would account for 22% of the modern Indian grocery retailing in five years, up from 3%.

While modern retail is still a small part of overall retail market in India, e-commerce in specific is at a nascent stage. In a bear market, e-commerce could see the highest growth in modern Indian grocery market compared to traditional brick-and-mortar retailers. Traditionally, the grocery play has been a low margin business that requires continuous investments to build a strong supply chain.

“We believe there is an ad ditional cost of about 3-5% of sales for home delivery as compared with pickups from a delivery centre or purchasing from a store. We believe consumers that value convenience over incremental cost will use the home delivery option, while price-sensitive consumers will prefer to pick up the order.Amazon and BigBasket also have the option of express delivery for an additional charge.In our base case, we assume a rapid acceleration in the adoption of online ordering,“ the report noted, while covering Avenue Supermarket, the parent of D-Mart, which offers 10-15% cheaper pricing compared to online grocers.

While D-Mart has presence in132 locations across the country, both BigBasket and Amazon have been ramping up their operations. Amazon, with no worry for capital, has been pushing its grocery business with two products -Pantry and Amazon Now . Pantry , which is for monthly grocery bulk sales, is present in 34 cities and Amazon Now is present in four cities with a promise of a two-hour delivery. BigBasket is delivering across 21 cities with 40,000 orders per day . According to the report, BigBasket accounts for 85% of online grocery market. Kishore Biyani, CEO of Future Group that owns Big Bazaar, said a reason for higher online prices was the mounting pressure on e-commerce players to make profits.“We also have a wide range of products cheaper than many online players. More importantly , they have realised they can't scale grocery business online like other segments and that's why they have gone slow on discounting,“ Biyani added. Murali Krishnan, who recently quit as CEO of Nilgiris, added that traditional retailers have an advantage in logistics compared to the online rivals and that margins are typically about 3-4%. “For brands, the shelf presence created by brick-and-mortar retailers offers more brand awareness than being online -which makes for better negotiations. Online players have figured fashion, electronics as categories but grocery has not seen that yet with the likes of Amazon and others.However, BigBasket has been an exception,“ he added. BigBasket co-founder and CEO Hari Menon told TOI that D-Mart had an advantage of owning the real estate of their stores, which helps their margins.“Their direct sourcing from various FMCG companies and the movement of stock keeping units (SKUs) has helped them further. Not only online grocers but other traditional retailers, too, keep a wider range of SKUs than D-Mart,“ Menon said. An email sent to an Amazon spokesperson did not elicit any response.

About 18-24 months ago, most online grocers were trying to scale up their businesses through the market place model but that did not work out with some forced to shrink their operations. BigBasket is increasingly sourcing from FMCG brands and using its own warehouses.Other companies like Grofers too are trying to do the same. Amazon, too, has partnered with BigBazaar, Spar, and HyperCity for Amazon Now, which promises a two-hour delivery .According to sources, the cart rate (number of products actually sent to consumer compared to original order) for Amazon Now has been about 70-80% since it does not have direct control over the inventory .

=Market share=
==Indigenous e-commerce peaks in Dec 15; Amazon closes in==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Indian-e-commerce-cart-hits-a-plateau-27062016017013 The Times of India], Jun 27 2016

Samidha Sharma

''' Indian e-commerce cart hits a plateau '''

Behind numerous headlines of a cash crunch hit ting major Indian ecommerce companies, and commerce companies, and their valuations being questioned, is a revelation not too many people are talking about. Indian e-commerce was emblematic of frenetic growth until very recently , but the last six to eight months have seen the industry come to a grinding halt, making it an inflection point for all the players involved.
TOI accessed and analysed data for top e-tailers, which revealed that the online retail market stagnated between May 2015 and 2016 in terms of the value of goods sold. While in May 2015, the e-commerce biggies clocked a gross merchandise value, or GMV , run rate of $9 billion, that number has only inched up to about $10 billion at the end of May this year, translating into an 11% annual growth. In December 2015, the total GMV run rate had reached $10.5 billion on the back of the festive season, which typically sees a rush of discounting from all e-tailers.

GMV is overall sales on an online marketplace, excluding discounts and returns which are an integral part of the e-commerce market.

The data gleaned from primary research and vetted by multiple stakeholders in the industry indicated that Flipkart, the country's largest online retail player, has seen its GMV run rate stall at about $4 billion for almost a year, while an aggressive Amazon has gone from clocking $1 billion to $2.7 billion in gross sales. However, Amazon's operations in India only began three years ago and it's been gaining ground on a smaller base.What's worth noting is that Flipkart notched up a 400% growth the year before, when it's GMV zoomed from $1 billion to $4 billion, post which the numbers have gone flat.Gurgaon-based Snapdeal, on the other hand, has seen an almost 50% knock-down in sales numbers after similar highs it touched exactly a year ago. The company said as of June, its GMV run rate was more than $2.5 billion.

An email sent to Flipkart's spokesperson did not elicit a response till the time of going to press. In an earlier interaction with TOI, Amit Agarwal, Amazon's India head, had said the online retailer hadn't witnessed any signs of a slowdown and, instead, had grown shipments impressively at 150% in the first quarter of the calendar year.

E-commerce companies earn anywhere between 5% and 15% in commission from sellers, which makes up their revenue. GMV had been the key metric for all e-tai lers in India to show rapid growth and ratchet up their valuations in multi-billiondollar fund-raises over the past two years. But with sales staying flat or declining, most e-commerce players are now starting to focus on returning customers, which their founders keep stressing in media interactions.GMV run rate varied from month to month and is pretty jagged, depending on promotions and discounts that are available at the time. But the data collated by TOI points to a palpable slowdown for the first time after a heady period of growth.

''' Reduced Discounting Slowing Growth? '''

Post March 2016, most etailers have reduced promotional campaigns after the Indian government introdu ced new policy guidelines for online marketplaces. The fresh rules prohibit online retailers from offering discounts directly . Cash burn for Amazon, for instance, had risen up to almost $80-90 million per month in the early part of the year -more than double of Flipkart's -but has since stabilized, people privy to the matter said.Amazon's Agarwal, when asked about it recently, did not give details on the mounting cash burn involved in weaning away Indian consumers from rivals.

An investor who has been tracking e-commerce says if the market has momentarily stopped growing, it's because online players have reduced investments into market development. A slug of risk capital came into India's online commerce industry , with Flipkart leading the pack. Founded in 2007 as an online bookstore, the Bengaluru-based poster boy of India's thriving startup ecosystem scooped up $3.2 billion, a majority of the funding coming over the past two years, while Snapdeal collected $1.3 billion. The Jeff Bezos-led Amazon, too, has been pumping billions into India, the latest being a $3-billion investment announcement -taking its overall commitment for the country to $5 billion in three years of launching here.

''' Has Online Consumer Base Capped Out? '''

India's online shopping market, according to rough esti mates, is 60-70 million, and is expected to go up to 100 million in the next few years. A notable spike happened in the past three years, but the divide between tier I and tier II cities is still very wide. The top 6-8 cities contribute 90% of sales for all the consumer internet players, including app-based cab aggregators like Ola and Uber.

In an earlier interaction with TOI, Binny Bansal, cofounder & CEO, Flipkart, said the e-commerce major was keenly looking at ways to tap into its existing base of users. “There are 50-60 million consumers buying online today . Given the large base, it makes sense to ensure you are selling more to the same customers as that opportunity is big enough compared to three years back,“ he had said. Snapdeal's co-founder & CEO Kunal Bahl, too, has reiterated his focus on the e-tailer's high-value consumers, suggesting GMV was not the metric his company was chasing anymore. “Our GMV run rate continues to be healthy and above $2.5 billion.We are significantly focused on delivering the best experience, growing our net revenue which has increased three times in the last 12 months,“ a Snapdeal spokesperson said in an emailed response to TOI. GMV was described by many as a vanity metric during the past few years when e-commerce registered exponential growth.

“The moment of reckoning is coming or may have come already for Indian ecommerce companies. The ease with which these companies have been able to raise money from VCs may have made them all sloppy , and the test then will be which ones can now work on the `building-a-business' channel. As for whether the fault lies with Indian consumers for not jumping fast enough onto the online wagon, it is a chicken-and-the-egg problem that we have to deal with,“ says Aswath Damodaran, professor of finance at the Stern School of Business at New York University .

What all of this will mean for online retailers is that from here on, raising new capital at present valuations will be a very tough proposition. Flipkart has been conserving cash and has substantially brought down its burn rate to wade through this phase of slow growth.Besides Amazon, there's Alibaba stitching up plans for a direct entry into e-commerce, making it a contest between the two global powerhouses and the Indian incumbents. The next one year will be extremely significant for the local online retailers as they go back to the basics and try to make their businesses self-sustaining while moving towards a tough path to profitability.

==Homemakers earn $9bn through social media==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Homemakers-clock-9bn-biz-through-social-media-01062017001022 Digbijay Mishra, Homemakers clock $9bn biz through social media, June 1, 2017: The Times of India]

Puja Singh used to run an in dependent apparel store for 10 years but had to shut shop as she moved from Hyderabad to Bokaro. She never went back to opening another physical store; instead, she opted to sell her wares using WhatsApp and Facebook, as a re-seller.

Many Indian women like Singh are using social media to ride the e-comm wave and reach customers. A report by consulting firm Zinnnov shared exclusively with TOI says 2 million homemakers are clocking business worth $8-9 billion in gross sales by reselling lifestyle and clothing products using the two social media platforms. While e-commerce ma jors like Flipkart and Amazon hog the limelight with their transaction volumes, these homemakers, using basic internet tools, are projected to touch anywhere between $48-60 billion in gross sales by 2022, the Zinnov report pointed out.Online re-sellers typically use WhatsApp and FB to market their products after sourcing them from suppliers who typically keep a bigger stock of products.

The re-sellers then make 15-20% of the order value as commission for selling these products.

Singh says she sells anywhere between 70-80 units of clothing every month and has managed to get buyers from outside her state leveraging the reach of WhatsApp.“As many as 70% of my products are sold locally but I am getting order requests from other Indian cities. Based on the initial success, I plan to sell other categories as well,“ she says.

Just like Singh in Bokaro, Nidhi Jain in Jaipur started her own retail business as a supplier using these social media channels. “I used to take small orders from other suppliers to resell but that has changed with my growing network resulting in higher sales. WhatsApp is mostly used for payments and logistics, but the expansion of consumer base and product discovery is largely through Facebook,“ Jain says. Meesho, a Y Combinator startup, which offers tools to such women to help them start their businesses through WhatsApp and Facebook, says it's banking on the mammoth opportunity this segment presents here in India.“We are not looking for revenues from this set of sellers.The fact that such a market has been created already with two million active re-sellers shows the potential of the opportunity ,“ says Vidit Aatrey, founder and chief executive of Meesho. The total market for women re-sellers is expected grow at 40-50% annually for the next five years. This means it would be over 5% of India's total retail market, he avers.

What's aiding the growth of these re-sellers is the increased usage and access of smartphones in tier-1 cities, which make up 50-60% of the market, while tier-2 and tier-3 cities contribute the rest.Most of these sellers currently use net-banking options and digital wallets for facilitating payments as they compete with bigger online commerce players -which have a gamut of payments options for consumers. Looking at the growing base of re-sellers WhatsApp has been exploring options to start its own payments platform in India.

“I have always been in Jaipur and used to work in an education institute. Though the job wasn't bad, I would prefer to do be my own boss. My business is growing which is why I'm planning to scale it up steadily ,“ Jain says.

==2016, 2017: Market share==
[[File: The market-shares of the three main e commerce players in India in 2016, 2017.jpg| The market-shares of the three main e commerce players in India in 2016, 2017; [http://epaperbeta.timesofindia.com/Gallery.aspx?id=11_04_2017_019_029_009&type=P&artUrl=Indian-e-tailing-Its-likely-to-remain-a-11042017019029&eid=31808 The Times of India] , April 11, 2017|frame|500px]]

'''See graphic''':

''The market-shares of the three main e commerce players in India in 2016, 2017''

=See also=
[[Agriculture: India]]

[[Internet, the worldwide web and India]]

Jammu & Kashmir: Militant violence

2019-02-21T03:22:36Z

Shivam: /* 2015-2017 */

{| Class="wikitable"
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This is a collection of articles archived for the excellence of their content.<br/>
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[[Category:India |J ]]
[[Category:Crime |J ]]

=Year-wise statistics=
==Incidents and fatalities, 1990-2014==

''' Terrorist violence in Jammu and Kashmir '''

[http://epaperbeta.timesofindia.com/Gallery.aspx?id=08_12_2014_007_021_003&type=P&artUrl=STATOISTICS-08122014007021&eid=31808''The Times of India'']

[[File: Terrorist violence J&K 1990-2003.png| Terrorist violence J&K 1990-2003 <br/> ''India Today'' April 30, 2017|frame|500px]]
See graphics, 'Terrorist violence in Jammu and Kashmir in 1990-2014'

Terrorist violence J&K 1990-2003
Terrorist violence J&K 2004-March 2017

[[File: te.jpg|Terrorist violence in Jammu and Kashmir in 1990-2014 <br/> December 8, 2014|left|frame|500px]]

[[File: Terrorist violence J&K 2004-2017.png| Terrorist violence J&K 2004-March 2017 <br/> ''India Today'' April 30, 2017 |frame|500px]]

== Fatalities, 1990-2017 ==
[http://indiatoday.intoday.in/story/kashmir-mehbooba-mufti-centre-peoples-democratic-party/1/945174.html Asit Jolly , Can she stem the rot? “India Today” 15/4/2017]

[[File: India Today , April 30,2017 .png| India Today , April 30,2017 |frame|500px]]

===1990-2017===
[13,796 civilians killed in J&K since start of militancy: MHA The Times of India 19 April 2018]

As many as 13,796 civilians and 5,123 security force personnel have been killed in Jammu & Kashmir since the advent of militancy in the 1990s. In fact, fatal civilian casualties in the state in 2017 were the highest in five years, registering a 167% rise to 40 from 15 in 2016.

==2002-19: the five worst incidents==
[[File: Some deadliest Jammu & Kashmir terror attacks- October 1, 2001 - November 2002- fatalities; Some details about the deadliest attack on February 14, 2019.jpg|Some deadliest Jammu & Kashmir terror attacks- October 1, 2001 - November 2002- fatalities; <br/> Some details about the deadliest attack on February 14, 2019 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F02%2F15&entity=Ar00506&sk=EDC08635&mode=text Saleem Pandit, February 15, 2019: ''The Times of India'']|frame|500px]]

'''See graphic''':

''Some deadliest Jammu & Kashmir terror attacks- October 1, 2001 - November 2002- fatalities; <br/> Some details about the deadliest attack on February 14, 2019''

==Terror incidents, 2010-June 2017==

[http://epaperbeta.timesofindia.com/Gallery.aspx?id=24_07_2017_007_032_012&type=P&artUrl=Local-intel-spurs-JK-anti-terror-ops-24072017007032&eid=31808 Bharti Jain|Local intel spurs J&K anti-terror ops|Jul 24 2017 : The Times of India (Delhi)]

[[File:jk.png|Terror incidents, 2010-June 2017.jpg| i) Terror incidents, 2010-June 2017, <br/> ii) Stone-pelting incidents,<br/> iii) Civilians and iv) forces personnel killed, injured <br/> From [http://epaperbeta.timesofindia.com/Gallery.aspx?id=24_07_2017_007_032_012&type=P&artUrl=Local-intel-spurs-JK-anti-terror-ops-24072017007032&eid=31808 '' The Times of India ''] |frame|500px]]

==2014-19 Feb: fatalities==
[[File: 2014- Feb 19- fatalities in Jammu & Kashmir.jpg|2014- Feb 19- fatalities in Jammu & Kashmir <br/> From: [https://timesofindia.indiatimes.com/india/for-2-years-now-jaish-has-been-pakistans-sword-arm/articleshow/68000684.cms Aarti Tikoo Singh, February 15, 2019: ''The Times of India'']|frame|500px]]

'''See graphic''':

''2014- Feb 19- fatalities in Jammu & Kashmir''

== 2015-2017 ==
[https://www.indiatoday.in/magazine/cover-story/story/20180226-kashmir-pakistan-attack-indian-army-sunjuwan-army-camp-attack-nirmala-sitharaman-1170923-2018-02-15 Sandeep Unnithan , No war no peace “India Today” 26/2/2018]

[[File: Terror strikes across J&K.jpeg| Terror strikes across J&K |frame|500px]]

== 2016-2017 ==
[http://epaper.dailyexcelsior.com/epaperpdf/2018/mar/18mar08/page3.pdf Daily Excelsior , 777 incidents of infiltration in J&K ,94 terrorists killed "Daily Excelsior" 8/3/2018]

There were 777 incidents of infiltration into Jammu and Kashmir in which 94 terrorists were killed by security forces in past two years, the Rajya Sabha was informed today. Union Minister of State for Home Kiren Rijiju said there were 16 incidents of infiltration into Punjab in which seven terrorists were killed and 11 others were apprehended in past two years. Replying to a written question, Rijiju said there were 406 cases of infiltration into Jammu and Kashmir in 2017 in which 59 terrorists were killed. In 2016, there were 371 incidents of infiltration into the State in which 35 militants were killed and three were arrested, he said. The Minister said security forces have been carrying out effective domination through round-the-clock surveillance, patrolling, border ambushes and by deploying observation posts along the International Borders of the country. "The riverine segments of international borders of the country are being patrolled and dominated with the help of water crafts/speed boats/floating Border Out Posts (BOPs) of Border Security Force (BSF) water wings," he said. Rijiju said introduction of force multipliers and hi-tech surveillance equipment fullyequipped with day and night vision devices have enhanced the border domination. "Vulnerability mapping of entire border has been made a continuous process based on which sensitive spots are identified and adequate measures are taken to further strengthen security in these spots," he said. The Minister said it has also been decided to deploy technological solutions in the form of Comprehensive Integrated Border Management System (CIBMS), on a pilot basis to begin with, in different terrains on India-Pakistan border and India-Bangladesh border. The technological solutions are based on integration of sensors and surveillance equipment like radars, day and night vision cameras etc. In a network architecture with command and control system, he said. There were 4,799 stone-pelting incidents and 872 terror incidents in Jammu and Kashmir in past three years. Union Minister of State for Home Hansraj Gangaram Ahir said 730 incidents of stone pelting were reported in 2015. In 2016, he said, 2,808 such incidents were reported, and in 2017, the incidents numbered 1,261. In a written reply to a question, he said there were 208 incidents of terrorist violence in Jammu and Kashmir in 2015, 322 in 2016 and 342 such incidents in 2017. Twenty-nine Army personnel lost their lives in nine terror attacks on defence stations and Army camps in Jammu and Kashmir since 2015, the Government informed the Lok Sabha today. Twenty terrorists were killed and two civilians lost their lives in the attacks, Minister of State for Defence Subhash Bhamre said in a written response to a question in the Lower House. The highest casualty was in 2016, when a group of terrorists stormed an Army camp in Uri, resulting in the death of 26 personnel. This year, one terror attack

==Deaths in Kashmir: militants, civilians, policemen/ / 2014-15==
[[File: Militancy-related incidents in Kashmir, 2014, 2015.jpg| Militancy-related incidents in Kashmir, 2014, 2015; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=08_10_2015_014_037_009&type=P&artUrl=Infiltration-bids-down-in-15-but-more-men-08102015014037&eid=31808 ''The Times of India''], October 8, 2015|frame|500px]]

''' Sources: '''

'' 1. The Times of India, June 20, 2011 ''

'' 2. J&K government documents ''

''' State data refutes claim of 1 lakh killed in Valley '''

They are figures that have been quoted so often that they are widely believed to be true: almost 100,000 dead Kashmiri civilians and 10,000 people who have disappeared in the last two decades. From public meetings in small villages to TV studios, from online pages to newspaper reports, these figure are cited and printed, used to stir emotions and silence voices in Kashmiri society. But nobody bothers to explain how these figures were arrived at.
TOI accessed Jammu & Kashmir government documents to arrive at the truth behind the urban legend. Collected between January 1990 and April 2011, the records are comprehensive and give year-wise breakup of all violent incidents in the state, the nature of the acts of violence, the number of people killed, and also the circumstances that led to the deaths.

Here’s what the data says. In the last 21 years, 43,460 people have been killed in the Kashmir insurgency. Of these, 21,323 are militants, 13,226 civilians killed by militants, 3,642 civilians killed by security forces, and 5,369 policemen killed by militants.

''' 43,460 people killed in Kashmir insurgency between Jan 1990 and April 2011 '''

''' 21,323 were militants 13,226 civilians killed by militants '''

''' 3,642 civilians killed by security forces '''

''' 5,369 policemen killed by militants '''

''' Militants have killed over 13,000 Kashmiris since 1990 '''

It seems that claims made by separatists on the number of Kashmiris killed during the insurgency are far from the truth.

Of the 43,460 people killed in the Kashmir insurgency in the last 21 years, 21,323 militants were killed in operations by security forces and include both Kashmiri and foreign militants. And of the 5,369 members of the security forces killed by militants, around 1,500 are Kashmiri policemen.

The government has collated the figures of civilians killed by security forces since 1990: it lists 3,642 people. The numbers vary from a high of 539 civilians killed in 1990, the year in which 51 people were massacred by the CRPF in just one incident when it fired at a crowd of protesters on a bridge at Gaw Kadal in downtown Srinagar, to 120 protesters killed across the state in firing by the police and paramilitary forces in the summer of 2010. The records also show another slaughter that has gone on ceaselessly since 1990, a slaughter that nobody comments on, nobody laments: of Kashmiris killed by militants since 1990. Of the 13,226 civilians killed by militants, 11,461 were shot and 1,765 died in grenade blasts and explosions.

These deaths are the ugly truth that Kashmir has learnt to ignore. The civilians killed fall into a black hole that Kashmiri society never discusses, remembers or protests against. They include two young sisters, Arifa (16) and Akhtara (18), who on January 31, 2011, were dragged out of their one-room house in downtown Sopore and killed. Akhtara took four wounds on her face and Arifa was shot in the chest. They were accused of being “immoral.”

The moderate, the mukhbir (informer), the political activist or the unlucky bystander, these deaths are forgotten the day after they occur. But the central message is remembered: if you cross the line, you shall pay with your life. The knowledge that you can be killed anytime, anywhere, and the fear of the hidden assassin, has percolated across society. That’s why separatist leaders like Omar Farooq or Abdul Ghani Bhatt, who have spent years spreading the truth about the atrocities on Kashmiris by security forces, are protected by the very same CRPF and J&K police. That’s why many journalists in Kashmir are followed around by armed policemen. No local newspaper dares print a story accusing militants of killing a civilian; the operative word is “unidentified gunmen”.

These 13,226 Kashmiris just do not exist in the collective psyche. There are no websites to them, no petitions and no organizations to keep alive their memory. Their only contribution has been to cement fear in 70 lakh people, where a clear distinction exists between what is said privately and in company. These figures are from the government. They make no mention or distinction between the official account and what sometimes happens in this dirty war. For example, there’s no clarity on whether the 21,323 militants claimed killed in operations by security forces includes or excludes the six innocent Kashmiri boys picked up and murdered by the Army after the Chittisingpora massacre in 2000.

The Army had claimed they were foreign militants responsible for killing 36 Sikhs in Chittisingpora. The CBI later said the Army had abducted the six from places around Anantnag and shot them in cold blood. Or the three innocent young Kashmiris “bought” by an Army unit for Rs 50,000 each and murdered in Machil in April 2009.

So, how many militants killed were actually militants? How many of the civilians killed by militants, as claimed by the government, were victims of Hizbul Mujahideen and the Lashkar and not of “government agencies” as the separatists claim? Unfortunately, neither the Hurriyat nor the LeT have any lists of their own. The only thing these records establish is that one lakh people haven’t died in Kashmir insurgency.

What they help prove is that minus the some 4,000 jawans of the Army, BSF and the CRPF and the 5,000 odd “mehman mujahideen” from Pakistan, 34,000 Kashmiri men and women have died violent deaths as militants, mainstreamers, moderates or mukhbirs.

==2015: Fewer civilians killed, but terrorist violence up==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Fewer-civilians-killed-but-terrorist-violence-up-in-03112015019034 ''The Times of India''], Nov 03 2015
[[File: Terrorist violence in J&K, 2010-15.jpg|Terrorist violence in J&K: 2010-15 ; Graphic courtesy: [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Fewer-civilians-killed-but-terrorist-violence-up-in-03112015019034 ''The Times of India''], Nov 03 2015|frame|500px]]

[[File: Number of terrorists killed in Jammu and Kashmir, 2012-April 2017.jpg|Number of terrorists killed in Jammu and Kashmir, 2012-April 2017; [http://epaperbeta.timesofindia.com//Gallery.aspx?id=03_05_2017_021_020_012&type=P&artUrl=Terror-factories-along-LoC-back-working-overtime-03052017021020&eid=31808 The Times of India], May 3, 2017 |frame|500px]]

Bharti Jain

'''Fewer civilians killed, but terrorist violence up in J&K'''

''Jihadis going more after securitymen''

Terrorist violence in Jammu and Kashmir in 2015 has surpassed the levels recorded in 2014, with 169 incidents and 35 security personnel killed until October 25 as compared to 167 incidents and 30 force casualties in the corresponding period in 2014.
Though 86 terrorists were neutralized till October 25 against 83 in the same period of 2014 and the civilian casualties caused while maintaining law and order stagnated at four, the number of civilian killings by the militants fell to 16 from 20 last year.

The latest statistics mark a year-on-year increase in most terror indices related to J&K. In fact, at 169 incidents until October 25, the figure of 170 incidents recorded in the whole of 2014 is set to be surpassed soon. Nevertheless, incidents have shown a steady decline from the high of 488 recorded in 2010, followed by 340 in 2011 and 220 in 2012.The security forces killed in terrorism-related incidents is lower than 2013 but higher than the 2011 and 2012 figure.

Terrorists, wary of losing ground support, are going after security forces more than civilians. Civilian killings have fallen from 28 in 2014, though they exceeded the levels (15 fatal casualties) seen in 2012 and 2013.

The security forces are not taking the higher casualties lying down and are retaliating in equal measure to terrorist attacks. As many as 86 terrorists were killed until October 25, as compared to 67 in 2013 and 72 in 2012. It remains to be seen if the 2015 figure of terrorist killings will surpass the 2014 mark of 110.

According to home ministry sources, around 200-220 terroristsmilitants, both local and foreign, are estimated to be holed up in the Valley .Though they possess arms, not many are actively engaging security forces in encounters. “This could be due to their poor and inadequate train ng. Earlier, militants could exfiltrate and train at camps n PoK but the heightened vigil by Indian forces at the border has made this a difficult proposition... not many ocal recruits are well-versed n the use of arms, which has made them less of a worry to he security agencies,“ a senior officer in the security es ablishment told TOI.

Sources said much of the local recruitment was taking place in Tral and Pulwama.“Many of the new recruits are unable to adapt to the hard life of a militant that involves liv ng in the jungles... they are not as committed or hardened and there have been some cases of these terrorists want ng to return to their fam lies,“ the officer said.

==2016==
===2016: An increase in soldiers killed===
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=In-Kashmir-Valley-alone-71-soldiers-killed-this-18122016014029 ''The Times of India''], Dec 18 2016

[[File: Security personnel killed in Jammu and Kashmir, 2008-16.jpg|Security personnel killed in Jammu and Kashmir, 2008-16; Graphic courtesy: [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=In-Kashmir-Valley-alone-71-soldiers-killed-this-18122016014029 ''The Times of India''], Dec 18 2016|frame|500px]]

'''Terrorists Hit Army Convoy In Pampore'''

Terror attack in Pampore, in which three soldiers were killed, took the number of casualties among forces this year to 87, making 2016 the bloodiest year since 2008 for security personnel in Jammu & Kashmir.

Two motorcycle-borne terrorists opened fire on an Army convoy on the Srinagar-Jammu highway in south Kashmir's Pulwama district in the afternoon. Police sources and eyewitnesses said terrorists wearing pherans fired incessantly at vehicles carrying the Army men near Kadlabal in Pampore. After the attack, the terrorists fled from the spot, sources said.

A massive search opera tion had been launched, an Army spokesperson said.The security forces exercised restraint due to the presence of a large number of civilians in the nearby market, police said.

According to terrorwatch data site SATP, 84 security force personnel were killed in 2016, till last week, in various terror-related incidents in the conflict-ridden state. In 2008, which was marked by the Mumbai terror attacks and the subsequent escalation of tension between India and Pakistan, 90 security personnel were killed in the state. The following year, 78 se curitymen were killed in various terror-related incidents. The number of casualties among the forces dropped sharply to 17 in 2012.In 2013, the number went up to 61but came down steadily to 51 in 2014 and 41 in 2015.

Of the 87 casualties in 2016, 71 were killed in Kashmir Valley. More than three dozen Army men, including half a dozen officers, were killed in different attacks in 2016.

Nineteen Army men were killed in the Uri terror attack this year that led to massive ceasefire violations along the Indo-Pak border.

Security convoys have been targeted several times through the Pampore stretch of Srinagar-Jammu national highway that is also used to carry supplies to the Srinagar-based 15 Corps of the Indian Army . On February 20 this year, militants attacked an Army convoy and then took refuge in the government-run Entrepreneurship Development Institute. In the three-day standoff, three soldiers, including two captains and a Special Forces operator, were killed and part of the building was destroyed. On June 25, Lash kar-e-Taiba terrorists ambushed a CRPF convoy along the same Srinagar-Jammu national highway near Frestabal area of Pampore, killing eight officers.

The EDI building in Pampore was again targeted in October, resulting in another three-day stand-off between the forces and militants.

===2016: Killing Of Terrorists Up 300%, Force Casualties 87%===
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Terror-related-cases-in-JK-at-4-yr-07122016015038 Terror-related cases in J&K at 4-yr high: Dec 7, 2016, The Times of India'']

'''Killing Of Terrorists Up 300% From 2015 While Force Casualties Have Jumped 87%'''

Terror-related violence in Jammu & Kashmir has peaked to its highest level in four years, with incidents up 47% and killing of terrorists witnessing a 300% spike over 2015. Also, with fidayeen going after security personnel and their camps, force casualties have jumped 87% from 39 in 2015 to 71 till November 27, 2016.

In yet another interesting set of data put out in reply to a different question, the home ministry said 437 ceasefire violations were reported in 2016 in J&K until November 30, up from 405 in 2015. Of the 437 violations in 2016, 221 took place on the international border manned by BSF and 216 along the Line of Control guarded by the Army . The corresponding figures in 2015 were 253 violations on the international border and 152 on the LoC.

The ceasefire violations in 2016 resulted in killing of 12 civilians and injuries to 80 others, apart from leaving 111 houses structures damaged as on November 7, 2016. While eight Army personnel were killed and 74 injured till November 26 (as against six killed and 17 injured in 2015), the BSF suffered five fatal and 25 non-fatal casualties till November 30 this year.

The ceasefire violations in 216 temporarily displaced 27,449 people in J&K as they shifted to safer locations following the surgical strikes. Of this, around 6,000 persons were accommodated in relief camps and others stayed with their relatives. Majority of these people have now returned home and only around 220 families comprising around 700 persons are lodged in three relief camps.

==2017==
===June 2017===
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=With-42-deaths-bloodiest-Ramzan-in-Kashmir-in-24062017010017 Saleem Pandit, With 42 deaths, bloodiest Ramzan in Kashmir in yrs , June 24, 2017: The Times of India]

At least 42 people, including nine policemen, were killed in Kashmir in June 2017 in what could be the bloodiest Ramzan in the Valley in years. The toll includes 27 militants and six civilian deaths.

===Security forces’ casualties, 2016-July 2017===
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Pulwama-attack-ups-Armys-JK-casualties-27082017011022 Bharti Jain, Pulwama attack ups Army's J&K casualties, August 27, 2017: The Times of India]

The significant casualties suffered by the J&K police and CRPF in the fidayeen attack at Pulwama come at the back of a comparatively good year so far for the forces, with 31 security personnel martyred and 101 injured against 62 deaths and 192 injured in all of 2016.

Though attacks are higher with 79 cases of security forces having been targeted in the Valley state till August 25 as compared to 100 in 2016, the figure for July is way below June when a spurt in attacks on J&K police and para-military forces was reported.There were 12 attacks that killed three personnel and injured 10 in July this year, down from 26 attacks, 13 fatal casualties and 35 injured in June.Just one security personnel was killed in August (in first 25 days) but now with the Pulwama reverses, it will be fairly close to the eight fatal casualties reported in August 2016.

This year, attacks on uniformed men peaked in June but have been on the decline since with 12 attacks in July and six so far in August. Similarly , notwithstanding the high killings of terrorists in J&K this year (134 till August 17), the security force killings are half of the 2016 figure. 16 security personnel were killed and 54 injured in the past two-and-a-half months, as compared to 21 killed and 123 injured in the corresponding period of 2016. “The sustained intelligence-based operations undertaken in the recent months are carefully planned and carried out with close coordination among the J&K police, Army and CRPF, minimising casualties,“ said a senior official.

According to the agencies, with the heavy reverses inflicted on terrorists, J&K terror outfits are under pressure to retaliate. The fidayeen attack at Pulwama bears the fingerprints of Jaish-e-Mohammad, which had also carried out the Pathankot strike. “The terrorists in Pulwama are believed to be of foreign origin,“ said a senior intelligence officer.

===2016-17, terror-related violence===

'''See graphic:'''

''Terror-related violence in Jammu & Kashmir, 2016- Oct 22, 2017''

[[File: Terror-related violence in Jammu & Kashmir, 2016- Oct 22, 2017.jpg|Terror-related violence in Jammu & Kashmir, 2016- Oct 22, 2017 <br/> From: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=24_10_2017_015_011_013&type=P&artUrl=A-calibrated-approach-talks-at-time-of-our-24102017015011&eid=31808 The Times of India], October 24, 2017|frame|500px]]

===More jihadis killed===

[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=As-forces-get-free-hand-92-jihadis-killed-06072017016022# Bharti Jain|As forces get `free hand', 92 jihadis killed in J&K this year|Jul 06 2017: The Times of India (Delhi)]

New Delhi:

Infiltration Too Shows A Downturn

As counter-terror forces mount offensive against terrorists in Jammu & Kashmir, the gains are starting to show. As many as 92 terrorists were killed till July 2 this year, against 79 in the corresponding period of 2016. In fact, the numbers of terrorists killed in counter-insurgency operations so far this year have surpassed the yearwise figures for 2012 and 2013 when UPA was in power.
While 72 and 67 terrorists were eliminated in J&K in 2012 and 2013 respectively , the numbers picked up during NDA's tenure, touching 110 in 2014, 108 in 2015 and 150 in 2016.“Terrorists killed till July 2 this year are only slightly less than killings through 2014 and 2015,“ a senior home ministry official said, attributing the successes to seamless coordination between the Army , central forces, state government and intelligence agencies.

“The forces have been given a free hand to track and intercept the terrorists holed up in the valley, before launching intelligence-based operations with due mapping of the target and how to neutralise ter rorists with minimum collateral damage,“ said a senior home ministry functionary .

The official underlined that among the 92 terrorists killed in J&K till July 2, most of the targets were big and prominent terror operatives.
[[File:jammu and kashmir militant.PNG ||frame|500px]]
Infiltration figures also show a decline. As against 371 infiltration cases recorded in 2016, 124 were recorded till May-end this year. “Many of these 124 terrorists have been neutralised since,“ said a home ministry official.

While terror-related incidents were higher at 168 till July 2 this year as compared to 126 in the corresponding period of 2016, stone-pelting incidents witnessed a dip.

===2017: major attacks===
[[File: Major militant attacks in Jammu & Kashmir in 2017.jpg|Major militant attacks in Jammu & Kashmir in 2017 <br/> The fifth attack referred to in the picture took place on the Sunjuwan Military Station, Jammu, on 10 and 11 Feb 2018 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F02%2F11&entity=Ar00102&sk=DB03E264&mode=text Sanjay Khajuria & Saleem Pandit, February 11, 2018: ''The Times of India'']|frame|500px]]

'''See graphic''':

''Major militant attacks in Jammu & Kashmir in 2017 <br/> The fifth attack referred to in the picture took place on the Sunjuwan Military Station, Jammu, on 10 and 11 Feb 2018.''

==2018==
===223 militants killed, highest in 8 years===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F09&entity=Ar00910&sk=92485028&mode=text Bharti Jain, 223 terrorists killed in J&K this year, highest in 8 years, December 9, 2018: ''The Times of India'']

[[File: Militant violence in Jammu & Kashmir, 2017, 2018.jpg|Militant violence in Jammu & Kashmir, 2017, 2018 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F09&entity=Ar00910&sk=92485028&mode=text Bharti Jain, 223 terrorists killed in J&K this year, highest in 8 years, December 9, 2018: ''The Times of India'']|frame|500px]]

''Civilian Deaths Go Up To 77 From 40 Last Yr''

Violence has run high in Jammu & Kashmir this year, with terrorists killed at a eight-year high of 223 while terror-related incidents rose to 429 from 342 last year and civilian casualties shot up to 77 from 40. The number of security personnel killed is 80, the same as 2017.

The figures reflect increased attacks mounted by terrorists from Pakistan with the support of local cadres in the Kashmir Valley even as the Army stepped up security counter-measures and also warned that stone-throwers at encounter sites will be treated as over-ground supporters of terrorists.

According to home ministry data, the figure was higher only in 2010 when 232 terrorists were killed.

The number is likely to rise with more than three weeks to go before the year ends with an encounter in progress near Srinagar even on Saturday. The number of terrorists killed this year has already surpassed the figure of 213 recorded in 2017, according to official statistics accessed by TOI.

Of the 223 terrorists killed, 93 were foreigners. While 81 of the terrorists were killed over a period of 80 days since local body and panchayat elections were announced on September 15 in the state, 51 were killed in the preceding 80 days between June 25 and September 14.

Between September 15 and December 5, two civilians were killed and 170 injured in stone-pelting incidents across the state.

'''Around 250-300 ultras active in Kashmir'''

In the same period, preceding September 15, eight civilians were killed and 216 injured due to stone-pelting. A large percentage of these stone-pelting incidents were reported from sites of encounters between the security forces and terrorists.

Home ministry sources said apart from having neutralised a record number of terrorists since June 19 when the state was placed under governor’s rule as compared to the preceding period under the PDP-BJP government this year, many top terrorist commanders were accounted for by security forces. These include top Lashkar commander Naveed Jatt, Jaish sniper Usman Haider, who was the nephew of Jaish chief Maulana Masood Azhar, and Hizbul Mujahideen commander Altaf Ahmad Dar.

Apart from higher civilian deaths this year, almost double that of 2017, what is of concern to the security establishment is the rise in recruitment of local Kashmiris by Hizbul Mujahideen and Pakistan-based terror outfits. “However, a fall in recruitment levels has been witnessed in the recent months,” said an intelligence official. The number of terrorists active in the Valley is estimated to be 250-300.

Explaining the higher number of terror-related incidents this year, a senior officer of the central security establishment said it was essentially because terrorists were being more active this year. There were clear attempts by Pakistan-aided terrorists to disrupt urban local bodies and panchayat polls in the state, with separatists too pitching in with boycott calls and frequent bandhs.

Sources said attempts to use violence to sabotage local polls were effectively thwarted with adequate deployment of security forces and keeping terrorists engaged in intelligence-based counter-operations through the process of civic and panchayat elections in the state.

===2018: street violence down, encounters increase===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F29&entity=Ar00512&sk=32E7EA9D&mode=text&fbclid=IwAR1TKwmR1U50bhRKZKfBzl_QsRwhmbVLNlmp8C7_t2DiubrI1VBPpc3tIME Aarti Singh, Street riots down in Valley, but clashes during encounters up, December 29, 2018: ''The Times of India'']

[[File: Violent incidents in Jammu & Kashmir, 2013-18.jpg|Violent incidents in Jammu & Kashmir, 2013-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F29&entity=Ar00512&sk=32E7EA9D&mode=text&fbclid=IwAR1TKwmR1U50bhRKZKfBzl_QsRwhmbVLNlmp8C7_t2DiubrI1VBPpc3tIME Aarti Singh, Street riots down in Valley, but clashes during encounters up, December 29, 2018: ''The Times of India'']|frame|500px]]

Incidents of rioting on the streets came down four times but rioters being killed while attempting to disrupt encounters in cordonedoff areas rose six-fold in the last three years in Kashmir.

Data accessed exclusively by TOI shows that since 2016, when the Valley slid into unprecedented street violence following the killing of Hizb commander Burhan Wani by security forces, the incidents of rioting and stone-pelting dropped from around 3,000 per year to 700.

On an average, there have been two rioting incidents a day this year. The number of rioters killed in clashes with security forces also declined by nearly half this year since 2016.

However, rioting during counter-insurgency operations — stone-pelting and illegally entering cordonedoff combat zones — has become almost routine in the last three years. Casualties of rioters during such encounters went up by six times, from 6 in 2016 to 37 in 2018.

The number of those killed while trying to disrupt encounters has risen six fold, from 6 in 2016 to 37 in 2018

''' ‘Rioters disrupting ops a strategy devised by Pak’ '''

The disruptions have turned out to be such a challenge for security forces that Army chief General Bipin Rawat sent a warning to rioters in October. Stone pelters disrupting operations, he said, would be treated as overground militant workers, if they did not stop entering combat zones.

“His statement stirred a controversy because besides separatists, mainstream political parties in Kashmir — National Conference and People’s Democratic Party once out of power — portray the rioting stone pelters as ‘innocent civilians’,” a senior counter-insurgency specialist in J&K police said.

Security analysts in the Army and J&K Police say though the phenomenon of rioters disrupting operations began at least six years ago, it intensified after Wani’s killing in 2016.

“The trend is a wellthought out strategy devised by Pakistan. It is cost-effective sub-conventional warfare because terror groups get to use their sympathisers as human shields; the rioters get branded as innocent civilians and Indian soldiers as murderers; all of this evokes outrage, more youth come out to riot and clash with forces during the encounters and more get killed in an unending loop,” an officer in the northern command said.

A 25-year-old former stone pelter in Kulgam, who did not want to be named, told TOI there was social sanction for stone pelting during encounters. “Infuriated youth believe it’s their religious duty to protect the ujahideen who are out there to fight for them,” he said.

==2018: more violence-linked arrests than kills==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F01%2F12&entity=Ar02006&sk=64988A1E&mode=text Aarti Singh, J&K saw more terror-linked arrests than kills in 2018, January 12, 2019: ''The Times of India'']

[[File: 2007-2018- militants killed and arrested in Jammu & Kashmir.jpg|2007-2018: militants killed and arrested in Jammu & Kashmir <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F01%2F12&entity=Ar02006&sk=64988A1E&mode=text Aarti Singh, J&K saw more terror-linked arrests than kills in 2018, January 12, 2019: ''The Times of India'']|frame|500px]]

The J&K police arrested four times more militants and Over Ground Workers (OGWs) of banned outfits than the number of terrorists they killed in the Valley last year.

The militancy data accessed exclusively by TOI shows that though the number of militants killed last year, over 240, was the highest since 2007, the number of militants and their aides arrested in 2018, is the highest in a decade. Over 800 militants and OGWs were arrested last year, the data reveals.

An OGW, in the security parlance, “is an aide of terrorists, who wilfully helps them in providing shelter, place to store arms and ammunition, food, medication and even funds and facilitates their movement,” an Army officer told TOI.

OGWs are essentially “local civilians” but they form the backbone of militancy in Kashmir, said a police officer who was not authorised to speak officially. “Without OGWs and their logistic support, militancy cannot survive for long,” he said.

In 2014, almost as many militants and OGWs were arrested as killed by the security forces. However, in the following years, especially after the killing of Hizbul Mujahideen commander Burhan Wani, lesser number of militants and OGWs were arrested as compared to the number of militants killed. That trend changed in 2018, when the number of militancy related arrests went up eight times from the previous year.

After several years of steady decline, the militant recruitment in Kashmir witnessed a sudden upsurge following the Parliament attack convict Afzal Guru’s hanging in 2013, leading to the new phase of militancy.

Contrary to the common belief that the 2010s militancy has been more indigenous than foreign, the data shows that except 2018, more foreign terrorists (which includes unidentified militants) have been killed than Kashmiri militants in the last decade.

=Bank robberies=
==After the Dec 2016 demonetisation==
[http://epaperbeta.timesofindia.com//Article.aspx?eid=31808&articlexml=Militants-on-mission-loot-in-Valley-04052017012035 Saleem Pandit, Militants on `mission loot' in Valley , May 4, 2017: The Times of India]

[[File: Looting banks in Jammu and Kashmir, 2016-17.jpg|Looting banks in Jammu and Kashmir, 2016-17; [http://epaperbeta.timesofindia.com//Article.aspx?eid=31808&articlexml=Militants-on-mission-loot-in-Valley-04052017012035 Saleem Pandit, Militants on `mission loot' in Valley , May 4, 2017: The Times of India]|frame|500px]]

''' Three Banks Robbed, Five Cops And Two Guards Killed In Last 72 Hours '''

Terrorists looted Rs 3 lakh from a branch of J&K Bank at Kakapora in south Kashmir's Pulwama district, less than two hours after four masked men carrying guns robbed Rs 5 lakh from Ellaquai Dehati Bank in Wahibugh village of the district.

Unidentified gunmen had barged into the Yaripora branch of the same bank and taken away Rs 65,000, and on May 1, terrorists had attacked a cash van of J&K Bank and shot dead five policemen and two bank guards in Kulgam district in south Kashmir.

There have been several successful attempts at robbing banks in the Valley since November 8 when demoneti sation was announced, suggesting that the terrorists are strapped of cash. The hawala trade is at standstill even as a series of moves by the Centre have dried up militants' financial resources. Short of money to buy weapons and pay their over-ground workers, the Hizbul and Lashkar terrorists are striking out at banks, which are also symbols of establishment.

Sources said attacks on banks may also force deployment of Central forces and state police for their security.“This means forces will be diverted to protect the nearly 1,500 bank branches across the Valley , leaving fewer personnel for the counter-terror grid,“ said an officer.

Central security establishment believes these attacks on banks could be a double-edged sword. Sources said since demonetisation was announced, most of the local populace have started keeping their money in banks. By creating a scare, the terrorists may be trying to force the people to once again keep their money at home, and help them access it when needed -as was the case always. There also seems a degree of public support to militants in the four southern districts on the prowl, looting banks and snatching weapons from J&K cops, with police saying they are investigating the driver of the van that was attacked on May 1, who has disappeared since then.

Security agencies said that local militants, who've mostly joined Hizbul Mujahideen, have no weapons and arms training. They depend mostly on snatched weapons from J&K police. Weapon snatching from cops has become routine in all four districts of south Kashmir.

Support to militants in these southern districts, Pulwama, Anantnag, Shopian, Kulgam, has increased since the encounter killing of Hizbul commander Burhan Wani in June 2016.
= Human rights violations=
==1994-2017: 66 of 1,695 allegations were true==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Only-66-of-1695-rights-abuse-claims-found-30052017011033 Only 66 of 1,695 rights abuse claims found to be true in 23 years: Army, May 30, 2017: The Times of India]

The Army claims only 66 of 1,695 allegations of human rights violations levelled against it since 1994 had been found to be true following investigation, with another 41 still being probed. For the established violations, around 150 personnel have been punished, and compensation has been awarded in 49 cases, the Army added.

A senior officer stressed on Monday that the Indian Army's human rights record “is one of the best in the world, which is appreciated globally“. The Army's claim comes against a backdrop of criticism for the force over the “human shield“ episode, which saw Major Leetul Gogoi controversially truss up a civilian on his jeep's bonnet to rescue over a dozen security and election personnel from a stonepelting mob in Kashmir last month. The officer said the Army had received 1,736 allegations, primarily during counter-insurgency operations in J&K and the northeast, from 1994 to April 2017. “Of them, 1,695 cases have been probed, while 41 are under investigation. Of the cases investigated, 1,629 were found to be either false or baseless,“ he added.

General Bipin Rawat's move to award the chief of army staff (COAS) commendation card to Major Gogoi even before the court of inquiry into the incident could be finalised, virtually giving him a clean chit, has fuelled criticism over the manner in which the force has handled the “human shield“ episode.

The Army chief, however, has made it clear he awarded the COAS commendation card to Major Gogoi to boost the morale of all the young officers and jawans engaged in counter-terrorism operations in a “dirty , proxy war“ amid stone-pelting mobs in the Valley.

=Infiltration and recruitment of militants=
==2013-March 2016==
[[File: Details of infiltrations during 2013-March 2016 in Jammu and Kashmir.jpg|Infiltration during 2013-March 2016 in Jammu and Kashmir; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=24_05_2016_019_027_002&type=P&artUrl=Police-had-been-warned-but-they-were-complacent-24052016019027&eid=31808 ''The Times of India''], May 24, 2016|frame|500px]]
See 'Infiltration during 2013-March 2016 in Jammu and Kashmir'
==2016: Jihadi recruitment saw 55% jump==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Jihadi-recruitment-saw-55-jump-after-Wani-22032017017039 Bharti Jain, Jihadi recruitment saw 55% jump after Wani, March 22, 2017: The Times of India]

[[File: Number of youths who joined the militancy, 2010-16 and level of infiltration, some facts, 2010-16.jpg|Number of youths who joined the militancy, 2010-16 and level of infiltration, some facts, 2010-16; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Jihadi-recruitment-saw-55-jump-after-Wani-22032017017039 Bharti Jain, Jihadi recruitment saw 55% jump after Wani, March 22, 2017: The Times of India]|frame|500px]]

As many as 88 youths joined militancy in Jammu & Kashmir in 2016, the highest since 2010, the government told the Lok Sabha on Tuesday . Violent protests in the Valley had peaked last year in the wake of killing of Hizbul Mujahideen leader Burhan Wani on July 8. Over 2,100 incidents were reported over a short span of three months from July to September 2016.

The figure of 88 Kashmiri youth opting for militancy last year marks a departure from the falling trend witnessed since 2014. In fact, the recruitment by terrorist groups in J&K last year was 55% higher than the levels witnessed in 2010, when stone-pelting protests caused a long spell of unrest in the Valley. In a written reply to a starred question in the Lok Sabha, Union minister of state for home Hansraj Gangaram Ahir said that as compared to 88 youth who joined militancy last year, a much lesser 66 chose the path of violence in 2015, 53 in 2014, just 16 in 2013, 21 in 2012, 23 in 2011and 54 in 2010.

Ahir said the J&K government was trying to wean away the state's youth from militancy with greater police-public engagement, sports tournaments and cultural events. Also, the government is offering attractive incentives to surren dered militants, apart from opening up avenues for employment of local youth through programmes such as `Udaan' and `Himayat', he said.

A key reason for J&K youth gravitating towards militancy , according to an intelligence officer, may be the local sentiment generated by the killing of Wani. TheHizb commander's Facebook posts were very popular among young and impressionable Kashmiris. His neutralisation in Anantnag on July 8 spurred a cycle of violence, with protests only getting worse after the counter-action by the forces saw many agitators, particularly minors, killed and injured by pellet guns.

As per data furnished on Tuesday in reply to another question in the Lok Sabha, 820 `law and order' incidents were reported in July 2016, the month Wani was killed, followed by 747 and 535 incidents in August and September, respectively. Interestingly, 2016 also saw a sharp increase in infiltration from Pakistan, with 371 attempts against 121in 2015, 222 in 2014, 277 in 2013, 264 in 2012 and 247 in 2011. Last year also saw the maximum number of successful attempts at 119.

=Jammu province=
==2002-2016: major incidents==
[[File: Attacks in Jammu province, 2002-2016.jpg|Major terrorist/ Pakistani attacks in Jammu province, 2002-2016 <br/> The Saturday attack referred to in the picture took place on the Sunjuwan Military Station(shown) on 10 and 11 Feb 2018. 5 soldiers and a civilian were martyred and 3 JeM terrorists were killed. <br/> The Sunjuwan Military Station had been attacked in 2013 as well. <br/> From [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F02%2F11&entity=Ar01702&sk=CE9E3B6F&mode=text Rajat Pandit, February 11, 2018:'' The Times of India ''] |frame|500px]]

'''See graphic''':

''Major terrorist/ Pakistani attacks in Jammu province, 2002-2016 <br/> The Saturday attack referred to in the picture took place on the Sunjuwan Military Station(shown) on 10 and 11 Feb 2018. 5 soldiers and a civilian were martyred and 3 JeM terrorists were killed. <br/> The Sunjuwan Military Station had been attacked in 2013 as well.''

=Marriages, liaisons=
== Pakistan-based terrorists seek Kashmiri wives: 1==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Love-kills-as-amorous-jihadis-throw-caution-to-02082017015016 Bharti Jain, Love kills as amorous jihadis throw caution to the wind, August 2, 2017: The Times of India]

Just like Abu Dujana's plans for a latenight rendezvous with wife gave the LeT commander away , leading to his elimination, there are several cases of foreign terrorists exposing themselves to surveillance on account of affairs and sexual misadventures with local Kashmiri girls.

“Most foreign terrorists of Lashkar-e-Toiba come from low-level families in Pakistan's Punjab. They are often tempted to court the attractive Kashmiri girls from welloff families. Wielding power of the gun and riding on their nuisance value, they either manage to impress local girls or force them to reciprocate to their advances,“ said an officer of J&K police. Of course, the affairs are fraught with serious security risks. “Their movements are compromised due to their frequent visits to meet their love interests or sexual partners. The police are in a far better position to generate human intelligence regarding their presence or movements,“ the officer said. There have been several cases of top commanders of Pakistan-based terrorist outfits like LeT coming under the radar either due to an identified pattern of movements in a locality where their love interests reside or even a tendency among dumped girlfriends and wives to get even by blowing their cover and alerting security agencies. An LeT commander in Srinagar, Abu Talha, was killed in 1999 after the father of one of the girls he had taken a fancy to tipped off the SOG and Intelligence Bureau.

LeT commander in Sopore, Abdullah Uni, who was killed in 2012 was known to have four to five girlfriends.He was a terror in Sopore and a difficult catch for the forces. But his affairs put him on the radar of the intelligence agencies, which closely followed his meetings with his girlfriends. “Finally, on the basis of a tipoff from one of his girlfriends, he was cornered and killed,“ said a former J&K police officer.

== Pakistan-based terrorists seek Kashmiri wives: 2==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Dujana-had-become-eyesore-for-girls-02082017015017 Rohan Dua, `Dujana had become eyesore for girls’, August 2, 2017: The Times of India]

Kashmir has witnessed a growing trend of Pakistan-based terrorists seeking Kashmiri wives for themselves, and as many as two dozen Pakistan-based LeT militants have courted women in villages in J&K as their “sympathisers“. But these women, after marriage, change their fathers' names while admitting their kids into schools and colleges, said sources. This fact was brought to fore when the mastermind of the 2005 attack on Indian Institute of Science In Bangalore and LeT operational commander Abu Hamza had married a woman in Sopore. “Neither the woman nor the kid is traceable now,“ said an intelligence officer. Dujana had developed a controversial reputation because of his illicit relations with Kashmiri women, said Kashmir IG Munir Khan. “He had become an eyesore for girls in that area. He could enter any home and engage in an unlawful relation. He had become a repeat offender of a sort,“ said Khan.

=Militants’ tactics=
== Hizb, JeM used children during clashes==
[https://timesofindia.indiatimes.com/india/hizbul-jem-recruited-used-children-in-kashmir-during-clashes-with-security-forces-unsg-report/articleshow/64775714.cms Hizb, JeM recruited, used children in Kashmir during clashes with security forces: UNSG report, June 28, 2018: ''The Times of India'']

''' HIGHLIGHTS '''

Pakistan-based banned terror outfits used children during clashes with security forces in J&K, a UN report said.

"One case was attributed to Jaish-e-Mohammed and two to Hizbul Mujahideen," the report said.

Pakistan-based banned terror outfits Jaish-e-Mohammed and Hizbul Mujahideen recruited and used children in Jammu and Kashmir during clashes with security forces last year, according to a UN report on Thursday.

The annual report of the UN Secretary General on Children and Armed Conflict, covering the January-December 2017 period, said globally, over 10,000 children were killed or maimed in conflict + last year while more than 8,000 were recruited or used as combatants.

The report covers 20 countries, including war-torn Syria, Afghanistan, and Yemen and also the situation in India, the Philippines and Nigeria.

On the situation in India, the report of UN secretary general, Antonio Guterres, said children continued to be affected by incidents of violence between armed groups and the government forces, particularly in Chhattisgarh, Jharkhand and during tensions in Jammu and Kashmir.

Noting "grave violations", it said three incidents of recruitment and use of children by the two terror outfits were reported in Jammu and Kashmir during clashes with the security forces.

"One case was attributed to Jaish-e-Mohammed and two to Hizbul Mujahideen," the report said, adding that "unverified" reports also indicate use of children as informants and spies by the security forces.

The UN said it continued to receive reports of recruitment and use of children, including by the Naxalites, particularly in Chhattisgarh and Jharkhand. "Naxalites reportedly resorted to the use of a lottery system to conscript children in Jharkhand," it said, adding children continued to be killed and injured during operations of security forces against armed groups.

Citing government data, the report said 188 civilians were killed in Naxal-affected regions, but no disaggregated data on children were available.

In March this year, a 15-year-old boy was killed during clash between the security forces and Lashkar-e-Taiba terrorists in Padgampora village of Pulwama district.

Guterres asked the Indian government to put in place measures to hold perpetrators of child recruitment and use to account and engage with the UN to end and prevent violations against children.

In Jharkhand, the report said, suspected Naxalites attacked a school in Khunti district, partially destroying it. With regard to military use, the occupation of over 20 schools was documented by the Central Reserve Police Force in Srinagar, Kashmir, in April.

"Increased tensions in Jammu and Kashmir reportedly also led to closure of school for varying periods, including in Rajouri (65) and Poonch (76) districts," it said.

In Pakistan, the report said, the UN continued to receive reports of the recruitment and use of children, including from madrassas, also, the alleged use of children by armed groups for suicide attacks.

In January, Tehrik-e-Taliban Pakistan released a video showing children, including girls, being instructed how to perpetrate suicide attacks.

The report said while age-disaggregated data on civilian casualties were limited, incidents of children killed and injured in attacks in Pakistan by armed groups were reported.

It cited a suicide attack in Sehwan, Sindh Province in February in which at least 75 people, including 20 children, were killed. Also eight attacks on educational facilities and students, including four targeting girls' schools.

In March, unidentified people vandalised the Oxford Public School, located in Ghizer Valley in Gilgit-Baltistan, and threatened to bomb the school if female teachers did not cover themselves. Also, a girls' school located in Qila Abdullah in Balochistan Province was damaged in an IED attack.

Guterres said he is "concerned" by the continued attacks on schools by armed groups, particularly the targeting of girls' education. He called on the Pakistan government to prioritise measures to deter future attacks on schools.

In Afghanistan, there were 3,179 verified cases of children being killed and maimed in 2017 in the conflict-related violence. An increase in child casualties resulting from aerial operations remained a concerning trend, with 27 child casualties resulting from cross-border shelling out of Pakistan.

With reports of over 21,000 violations committed against children in 2017, Guterres expressed outrage over the rise in the number of children affected by fighting globally.

"Boys and girls have once again been overly impacted by protracted and new violent crisis. Despite some progress, the level of violations remains unacceptable," he said in a statement.

The UN Chief reiterated that the best way to address this horrific situation is to promote peaceful solutions to conflicts and called on all parties to exert maximum efforts in this regard.

=Pakistani terrorists vis-à-vis local militants=
==2017, Jan-Nov: 72% of ultras killed were from Pakistan==
[http://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2017%2F11%2F20&entity=Ar01013&sk=0774B983&mode=text Saleem Pandit, Among 190 ultras killed in J&K in 2017, 110 from Pak, November 20, 2017: ''The Times of India'']

Terror outfits in Kashmir have suffered a major jolt this year with at least 190 terrorists, including 110 Pakistanis, killed by security forces. Addressing a press conference in Srinagar, General Officer-in-Command (GOC) of 15 corps, Lt Gen J S Sandhu, said the Army has successfully foiled multiple infiltration bids from across the Line of Control (LoC).

“Out of the 110 foreign terrorists, 66 were killed near the LoC when they were trying to infiltrate into India. We have also eliminated 125-130 terrorists in Kashmir hinterland, providing a major boost to the security forces,” the GOC said. He attributed joint operations by the Army, CRPF and Special Operations Group (SOG) in bringing about a “remarkable change in the security situation in strife-torn Kashmir valley.”

Security forces had launched a similar joint operation, during which they eliminated six top commanders of the Lashkare-Taiba (LeT), including Mumbai terror attack mastermind Zaki-ur Rehman Lakhvi’s nephew. All of them were from Pakistan.

The GOC said the administration has given a chance to local militants to shun violence and join the mainstream, but foreign terrorists are generally killed in counter-insurgency operations.

=Ramzan truce=
==2018: violence increases==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F06%2F07&entity=Ar02012&sk=3E4FF7BA&mode=text Saleem Pandit, Amid govt truce, terror acts shoot up, June 7, 2018: ''The Times of India'']

The Centre’s unilateral ceasefire against terrorists during the holy month of Ramzan has no desired impact as terror-related violence continued unabated and showed an upward trend in the last 20 days.

The data shows an upward trend in the killing of civilians and security men compared to last year during the same period. In the last 20 days, militants killed more than three dozen people including cops and security forces’ men and threw over 18 hand grenades at various places across Srinagar and in parts of south Kashmir, leaving more than two dozen persons and security men injured, according to official figures. At least 143 people including 37 civilians, 71 militants and 31 security personnel were killed since January this year. Out of 143, over three dozen people were killed only during Ramzan ceasefire. Around 40 odd Kashmiri youth joined militant ranks in the name of Jihad, an official source said.

Besides terror attacks at various places and ceasefire violations along the Line of Control and international border by Pakistani troops, stone pelting on the forces including police remains rampant particularly in old Srinagar city. A young stone-pelter Kaisar Bhat was run over by a CRPF vehicle while it was trying to escape an attack by a frenzied mob attack in Nowhatta.

Last year after surge in terrorism in the first part of 2017, security forces had launched an offensive and revived Cordon and Search Operations (CASOs) in the Valley after 15 years, against militants in the Valley. But chief minister Mehbooba Mufti took the state’s opposition parties on board and urged the centre to announce ceasefire during Ramzan and Amarnath yatra.

“Indoctrination in favour of Pakistan and jihad is so powerful among the separatist youth in Kashmir that the Ramzan ceasefire had no real effect in bringing peace. The offensive of the terror groups is forcing security forces to retaliate,” a police officer said.

By halting combat operations against terrorists, security forces are providing them breathing space in south Kashmir, a security expert said. “They are re-grouping and consolidating their position with people’s active support.”

However, Director General of Jammu and Kashmir Police S P Vaid is still hopeful that the Centre’s unilateral ceasefire would have a positive impact.

===‘Only 13 joined ultras after truce, 2 returned’===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F06%2F12&entity=Ar01405&sk=E9E2DF7D&mode=text Bharti Jain, ‘Only 13 Valley youths joined ultras after truce, 2 returned’, June 12, 2018: ''The Times of India'']

''Officials: Halt In Ops Reduced Casualties Too''

Around 13 Kashmiri youth joined militancy after announcement of the Ramzan truce as compared to 71 in the pre-May 15 period, though even this figure has got effectively reduced to 11 after two recruits returned to their respective families, sources in the security establishment told TOIon Monday.

Sources said that of the 13 who joined militancy during the suspension of operations in Jammu & Kashmir, only one got recruited into indigenous outfit Hizbul Mujahideen. While four joined Al-Badr that has lately been showing signs of revival in J&K, the rest have allied themselves with either Jaish-e Mohammad or Lashkar-e-Taiba.

Though violent incidents continue during Ramzan, albeit on a lower scale, the halt in cordon-andsearch operations has seen a significant decline in killings of civilians and security forces as well as mob attacks involving stone-pelting. Only three civilians and security personnel each were killed since May 17 and the fewer casualties are being seen as an indicator of success of the truce.

A notable trend this Ramzan has been a spike in grenade attacks. A source pointed out that most of the grenades appear to have been thrown by local, untrained youth at the behest of elements keen on sabotaging the truce.

While stone pelting incidents were reported after start of Ramzan, only two involved major mob attacks. Unrest in both cases was led by ‘outsiders’ who had gathered at Jamia mosque, and not local residents.

A heartening development during the ceasefire has been reduced recruitment of locals into militancy.

=Recruitment of youths by militants=
==2007-18: Anti-terror ops not proportional to militant recruitment==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F14&entity=Ar01503&sk=46C2744D&mode=text Aarti Singh, Data: Anti-terror ops not directly proportional to militant recruitment, November 14, 2018: ''The Times of India'']

[[File: Militants killed- 2007-18, vis-à-vis militants recruited and anti-terror operations.jpg|Militants killed- 2007-18, vis-à-vis militants recruited and anti-terror operations <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F14&entity=Ar01503&sk=46C2744D&mode=text Aarti Singh, Data: Anti-terror ops not directly proportional to militant recruitment, November 14, 2018: ''The Times of India'']|frame|500px]]

''2007 Saw Most Ops But Only 25 Enrollees''

Contrary to the common belief, militants killed by security forces and recruitment of local youth in militancy are not consistently and directly proportional, as per the Jammu & Kashmir security data of the last 10 years accessed exclusively by TOI.

In the last 10 years, the data shows that the highest number of counter-insurgency operations (205) were conducted in 2007 under the Ghulam Nabi Azad led coalition government of Congress and PDP. Over 330 terrorists were killed and over 530 terrorists and over ground workers were arrested. The terror attacks on civilians, security forces and others incidentally, were also the highest in 2007.

Since many tend to think that anti-terror operations are directly proportional to recruitment of local militants in Kashmir, one would assume that years 2007 and 2008 would have provoked more youth to join militancy. However, as per the data, in 2007, just 25 youth took up arms in Kashmir.

Even in the following years, 2008 and 2009, when the Kashmir valley erupted with organised stone-pelting and street violence, first during the Amarnath land crisis and then over the death of two Shopian women due to drowning, the recruitment was abysmally low. Only six and eight youth joined militancy in 2008 and 2009, respectively. In 2010, when over 100 youth were killed in clashes with security forces and 163 militants were killed in combat operations, only 24 youth joined militancy.

The recruitment shows some correlation with counter-insurgency operations (CIOs) or militants killed, only beginning 2014 when the Narendra Modi government came to power in New Delhi.

“Though there is a correlation from 2014, it does not explain why recruitment did not rise when both counterinsurgency operations and the number of militants killed were highest in 2007. The problem is that people believe correlation and causation are the same. In Kashmir, statistics do not even show consistent correlation, let alone tell you anything about the causation,” said a data analyst of the CID.

In the last five years, there has been a gradual increase in the number of counter-insurgency operations but the numbers still do not exceed the operations conducted in 2007 or 2008. “So I am not sure why politicians keep saying that India has adopted a muscular approach in Kashmir in the last four years. Our security policy has been consistent,” an Army officer said.

A police officer involved in combat operations said that if at all there was a change, it surely has been to minimise collateral damage. “Over the years, our records of collateral have come down drastically and there are almost no extra-judicial killings and fake encounters now,” he claimed.

The only thing that’s clear from the decade-long data is that 2011 and 2012 were relatively calmer after the massive street violence of 2008, 2009 and 2010. Both terror attacks and street violence (stone-pelting and mob rioting) as well as combat operations were at an all-time low for those two years, in the last decade. “Everything went downhill after the hanging of the Parliament terror attack convict Afzal Guru in 2013. Suddenly, the street violence went up by five times and recruitment of local youth in militancy doubled the next year,” a security expert in Srinagar said.

A National Conference leader who was at helm of affairs at time and did not want to be named said: “We had warned New Delhi at the time that Guru’s hanging would open floodgates of new militancy and street violence in Kashmir. But the then Union home minister P Chidambaram rejected Guru’s mercy petition and recommended death penalty for him to the President of India. Burhan Wani and his successors are a product of that decision.”

==2010-2017==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=70-Valley-youths-joined-terror-outfits-in-7-14082017010020 `70 Valley youths joined terror outfits in 7 months' , August 14, 2017: The Times of India]

Seventy young men have joined the militancy in Jammu & Kashmir over the past seven months, with most recruits from three south Kashmir districts, Pulwama, Shopian and Kulgam, according to a senior security official. The three districts have emerged as the hub of homegrown tech-savvy militants.

The senior security officer, quoting official statistics, also claimed that 88 Kashmiri youths had joined the militancy in 2016.

Since 2014, there has been a constant rise in the number of people joining the militancy. As many as 66 youths joined in 2015 and 53 in 2014, according to data compiled by security agencies.

In 2010, 54 youths joined the militancy , while in 2011, the number came down to 23. It further dipped to 21 in 2012 and 16 in 2013, according to the data.

Security officials say Pulwama, which has of late emerged as a terror epicentre, is strategically important as it is the central point to connect Srinagar, Anantnag, Kulgam, Shopian and Budgam districts of central Kashmir.

“The areas have seen the highest number of encounters and attacks,“ the officer added. The topography of Pulwama, with its vast orchards and fields ringed by dense forests, also provide operating cover to militants.

Pulwama was home to Hizbul Mujahideen commander Burhan Wani, who was killed in an encounter with security forces in July last year. It was also the base of slain Lashkar man Abu Dujana.

==2017==
===January-August 2017: 71 recruits===
[http://timesofindia.indiatimes.com/india/in-jk-more-terrorists-die-than-are-recruited/articleshow/60149866.cms Bharti Jain, In J&K, more terrorists die than are recruited, Aug 21, 2017: The Times of India]

'''HIGHLIGHTS'''

The number of terror recruits in J&K in 2017, going by intelligence records, is around 71

As many as 132 terrorists have died in security operations so far this year

Though more youth joined terror groups over the past 3-4 months, deaths of terrorists exceed recruitment levels

NEW DELHI: A sustained crackdown on militancy in J&K, aided by strong ground intelligence, has seen the killings of terrorists outstrip recruitment by terror groups this year, with ranks of separatists increasingly dependent on infiltration of "foreign" operatives into the state.

The infiltration from PoK and Pakistan is slightly higher with 78 terrorists sneaking into J&K till July against 123 in entire 2016 but intelligence agencies say, given the current trend, it is a matter of time before the total number of active terrorists in the Valley sees a decline.

The number of terror recruits in J&K this year, going by intelligence records, is around 71, while as many as 132 terrorists have died in security operations.
Of the 132 terrorists killed as a result of intelligence-based operations this year, 74 were foreign nationals and 58 locals. As many as 14 were top commanders of LeT, Hizbul Mujahideen or Al-Badr. These included two in the "A++ category, four in A+ category and eight in A category"".

Sources said cooperation between central and state agencies is paying off. J&K police, CRPF and Army have jointly accounted for top Hizbul Mujahideen leaders even before they could settle down to their roles as one succeeded the other. After Burhan Wani, who assumed charge of the outfit in 2014, was eliminated in an encounter on July 8, 2016, the counter-terror forces have been hot on his successor Zakir Musa's trail.
Musa, however, parted ways with Hizbul and floated own outfit Ghazwat-ul-Hind in May 2019. Sabzar Ahmed Bhat, who took over after Musa, was killed within a week.

His successor Yasin Itoo did not last long and was killed on August 13, barely two-and-ahalf months after taking over.

Though more youth joined terror groups in the Valley over the past 3-4 months, deaths of terrorists exceed recruitment levels. Fatalities among terrorists surged from an average 9.5 killings a month till April to 18 in May, 30 in June and 25 in July.

=== Spurt in Kashmiris joining militancy===
[https://timesofindia.indiatimes.com/india/spurt-in-kashmiris-joining-militancy-in-2017/articleshow/62231179.cms December 24, 2017: ''The Times of India'']

'''HIGHLIGHTS'''

The No., which was 88 in 2016, has already reached 117 by the end of Nov.

S Kashmir is one of the main hubs which provides cadres to militant groups such as Hizb and LeT.

12 youths from Anantnag, 45 from Pulwama and Awantipora, 24 from Shopian and 10 from Kulgam have joined militancy in 2017.

There has been a sharp spike in the number of young Kashmiris joining militant groups in 2017, with the number crossing 100 for the first time since such data started being collated in 2010, officials said.

The figure, which stood at 88 in 2016, has already reached 117 by the end of November this year with south Kashmir emerging as one of the main hubs which provides cadres to militant groups such as Hizbul Mujahideen and Lashker-e- Taiba, reports of security agencies said.

According to the reports, the number of local youths who joined various militant groups this year include 12 from Anantnag, 45 from Pulwama and Awantipora, 24 from Shopian and 10 from Kulgam.
The figures for North Kashmir are — four youths joined militant groups from Kupwara, six from Baramulla and Sopore, and seven from Bandipore, according to the reports.

From central Kashmir, Srinagar district accounted for disappearance of five youths while Budgam for four.

The reports are based on technical and human intelligence besides interrogation reports of militants arrested during various counter-insurgency operations in the Valley.

The reports have put the number of those joining the militants this year as high as 117, but Director General of Jammu and Kashmir Police S P Vaid contends that the numbers are much lesser.

However, a senior security officer said the figures of the police only take into account the cases registered in the police stations whereas the actual figures are always on the higher side as many parents do not report the matter to the law enforcing agencies due to fear.

Comparing the figures with previous years, 2017 has emerged as the year of highest recruitment of youth in various militant groups in last seven years. Such data is available from 2010.

According to the data laid on the floor of Parliament in March this year, there has been a steady increase in the number of youth taking up arms in the Valley from 2014 onwards as compared to 2011, 2012, and 2013.

In 2010, 54 youths joined militancy while in 2011, the number came down to 23 and further dipped to 21 in 2012 and 16 in 2013.

In 2014, the number shot up to 53 and in 2015, it reached 66 before touching the highest mark of 88 in 2016, the data showed.

The spurt in locals joining militancy began after the killing of Hizbul Mujahideen terror group's poster boy Burhan Wani in an encounter in south Kashmir on July 8 last year.

Security officials feel that there is a difference between the present day militants compared to those of early 1990s. The ideological conviction of the present lot of militants is far more superior than that of the terror groups during the early days.

The worrying trend in the Valley is that it is witnessing a trend of 'Pan-Islamisation' where young boys are opting for the path of terrorism knowing fully well that they are at the risk of being killed, the officials said.

Militants infiltrating from Pakistan are equally distributed among the various local militant groups who make them aware of the topography and escape routes besides providing them the mobile numbers of overground workers in the region.

While a majority of the missing boys mainly belong to the average middle class and described as the new face of terrorism in Kashmir, militants like Owais Ahmed Shah from Kokernag in south Kashmir and Eisa Fazli hailing from Soura in Srinagar show a trend that literate students from well-to-do families are also picking up arms with conviction.

Both Shah and Fazli were extremely brilliant in their studies, an official said, adding that if such people were also brainwashed, then there is a need to revisit the drawing board and examine policies of the state government at the earliest.

==2015> 16> 17: Number of youths becoming militants on the rise==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F02%2F07&entity=Ar01711&sk=1C921F18&mode=text February 7, 2018: ''The Times of India'']

At least 280 youths joined terrorism in Jammu & Kashmir in the last three years, the state government said. The number of youth joining terrorism has been on a steady rise in J&K since 2015. At least 66 Kashmiri youths took up arms in 2015, and the number rose to 88 in 2016. And at least 126 youths joined terrorist ranks in 2017.

In a written reply to a query by National Conference legislator Ali Mohammad Sagar, chief minister Mehbooba Mufti stated that a total of 2694 people are currently in jail in the valley. Among them, 228 men and eight women have been convicted, while the rests are facing trial.

The CM said while some separatists, including two women, have been detained under the Public Safety Act, no person affiliated to any political party is under preventive detention now.

Sources said the spurt in locals joining terrorism began after the encounter of Hizbul Mujahideen’s Burhan Wani in south Kashmir on July 8, 2016.

=Security forces’ camps, convoys: attacks on=
==2013-18==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F02%2F13&entity=Ar01616&sk=0C328A4F&mode=text Saleem Pandit, February 14, 2018: ''The Times of India'']

[[File: Attacks on security forces’ camps, convoys- 2013-Feb 18; All terrorist attacks in Jammu & Kashmir, 2013-17 .jpg|Attacks on security forces’ camps, convoys: 2013-Feb 18 <br/> All terrorist attacks in Jammu & Kashmir, 2013-17 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F02%2F13&entity=Ar01616&sk=0C328A4F&mode=text Saleem Pandit, February 14, 2018: ''The Times of India'']|frame|500px]]

One Central Reserve Police Force (CRPF) jawan was killed by suicide squad terrorists, or fidayeen, after their bid to attack a CRPF camp in Srinagar’s Karan Nagar area was foiled by an alert sentry on Monday morning.

Pakistani terror outfit Lashkar-e-Taiba has claimed responsibility for the attack, which comes just two days after the attack at the Sunjuwan military station in which six people — including five Army personnel — were killed.

Upon noticing two armed terrorists trying to sneak into the 23-Battalion camp around 4.30am, CRPF sentry Raghunath Ghait opened fire, forcing the terrorists to hide in a nearby under-construction building. Forces immediately cordoned off the area and launched an operation to kill the holed-up terrorists. In the ensuing gunfight, CRPF jawan Mujahid Khan got injured and later succumbed, CRPF inspector general Ravideep Sahi said. Khan belonged to Bihar.

Sources said the CRPF camp is located close to SMHS Hospital, where two police personnel were killed in a terror attack on February 6. Exchange of fire was on till last reports came in.

=Stone pelting=
==2016-July 2017: use of pellet guns==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Restrained-use-keeps-pellet-gun-deaths-in-JK-06092017020016 Bharti Jain. Restrained use keeps pellet gun deaths in J&K in check, Sep 6, 2017: The Times of India]

[[File: Casualties in stone pelting, 2016-July 2017.jpg|Casualties in stone pelting, 2016-July 2017; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Restrained-use-keeps-pellet-gun-deaths-in-JK-06092017020016 Bharti Jain. Restrained use keeps pellet gun deaths in J&K in check, Sep 6, 2017: The Times of India]|frame|500px]]

The restrained use of pellet guns this year to tackle violent mobs in Jammu & Kashmir has resulted in a sharp dip in deaths and injuries caused by this controversial method of crowd control. In the 143 instances of pellet guns used across 12 districts of J&K till July 31 this year, one civilian was killed and 36 civilians injured.

In 2016, the use of pellet guns in a total 777 instances across J&K, mostly during protests that followed the killing of Hizbul Mujahideen terrorist Burhan Wani in an encounter on July 8, had killed 15 civilians and left 396 injured.

District-wise, Srinagar continued to report the highest pellet gun use, having recorded 68 incidents till July 31 this year against 191 in whole of last year. Budgam, which recorded 18 incidents last year in which six civilians were injured, witnessed 12 incidents till July 31, 2017, that left 18 civilians injured (the highest among districts). Sopore, Baramulla and Shopian, which witnessed 124, 102 and 90 pellet firing incidents in 2016, recorded just one, eight and nil incidents respectively in the first seven months of this year. In terms of casualties too, Sopore where two persons were killed and 111injured due to pellet firing last year, reported no casualties this year.In Awantipora, where 89 were injured last year, just one person was injured this year.

The outrage against pellet guns last year in wake of the serious injuries caused by them, particularly in the eye, had led the government to advise restraint on their use. Also, home minister Rajnath Singh -who is scheduled to visit J&K later this week set up an expert committee to suggest safer crowd-control alternatives.However, the committee did not suggest a complete ban on use of pellet guns. As a result, neither has the home ministry banned use of pellet guns nor has the Supreme Court stayed use of these guns.

“We continue to use pellet guns but only as part of a graded response to mob violence.The stress is on first trying out other less-lethal methods -which include warning the agitated mob followed by use of tear smoke, lathicharge, use of irritant-based PAVA shells and firing of plastic bullets. The idea is to use pellet guns as a last resort. Also, we are now using deflectors on pellet guns to ensure that the pellets hit the target below the waist, minimising injury ,“ said a senior CRPF officer.

According to the officer, the sharp fall in instances of pellet guns use this year and the minimal casualties caused by them shows that the graded approach to tackling violent mobs in Kashmir is working.“In any case, pellet guns are not exclusively used in J&K. They were used recently in Rohtak, Haryana, to tackle violent mobs after conviction of Dera chief Gurmeet Ram Rahim,“ he said.

==2017: dropped by 90%==
[http://www.thehindu.com/todays-paper/tp-national/stone-pelting-drops-90-in-jk/article20419141.ece Stone-pelting drops 90% in J&K, November 14, 2017: ''The Hindu'']

''State police chief credits it to a huge change in the people’s mood, better Army-police coordination''

Jammu and Kashmir Police chief S.P. Vaid has said that there has been a 90% dip in incidents of stone-pelting in Kashmir valley this year as compared to last year and credited the people for the improvement in the situation.

“(There is) a more than 90% fall in stone-pelting in Kashmir valley (this year) as compared to last year. It is a huge decrease,” the Director General of Police said.

'''Far cry from 2016'''

“There are weeks when there is not even a single case of stone-pelting while in a day (last year) there used to be more than 50 incidents taking place. There is a huge change in the mood of people,” he said. “It is a huge change. The law and order situation in Kashmir is for everybody to see, particularly those living in Kashmir or those dealing with it,” he added.

The DGP said while National Investigation Agency raids helped, there were multiple factors at play, including demonetisation and action against top militant commanders, that have resulted in a drop in stone-pelting incidents. “Of course, that (NIA raids) helped, but the main credit goes to the people of Kashmir. Probably they have also realised the futility of this and damaging their own property and targeting the police, which also belongs to their own society,” he said.

Apart from these, detentions under the Public Safety Act also helped, he said. “I will also give credit to the resumption of political activity,” he added.

The police chief said there has been a tremendous success as far as “Operation All-Out”, the Army’s master plan to flush out militants from Kashmir, is concerned. “The credit goes to officers and jawans who are working in the fields. There is very good coordination among the police, Army and other security agencies,” he said.

''' ‘Huge success’ '''

“Most of the top leadership of HM (Hizbul Mujahideen) and LeT (Lashkar-e-Taiba) has been neutralised. I think roughly 170 militants have been eliminated this year. It is a huge, huge success,” the DGP said.

==Dip from 2,808 in 2016 to 1,261 in 2017 ==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F02%2F08&entity=Ar01814&sk=B1B7A34D&mode=text J&K pelting cases down 50%: Govt, February 8, 2018: ''The Times of India'']

''Dip To 1,261 In 2017 From 2,808 In 2016''

Stone-pelting incidents in J&K declined to 1,261 last year from 2,808 in 2016, junior home minister Hansraj Ahir informed the Rajya Sabha on Wednesday.

The unusually high cases of stone-pelting incidents in 2016 were largely on account of violent protests that broke out after the killing of Hizbul Mujahideen terrorist Burhan Wani in an encounter in July of that year. The total stonepelting incidents recorded in 2015 were 730.

Ahir, in written reply to another question in the Rajya Sabha, said 13 protesters were killed in 2016 due to pellets fired at them, while there were four fatalities from pellets last year. All the 13 killings in 2016 pertained to the four months of unrest following Wani’s killing.

Ahir said the central government had constituted an expert committee in July 2016 to explore possible alternatives to pellet guns as non-lethal weapons. The recommendations of the committee were taken into account by the government for appropriate implementation and accordingly, various measures, including the use of PAVA-Chilli (shells and grenades) and STUN-LAC (shells and grenades).

==2018: 759 cases==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F13&entity=Ar01610&sk=1CA9B9C5&mode=text 759 cases against J&K stone-pelters in 2018, December 13, 2018: ''The Times of India'']

The Union home ministry on Wednesday said 759 cases had been registered by the J&K Police against stone-pelters in the current year, which also saw a 78% rise in terror-related incidents in the Valley state to 587 until December 2 from 329 in the corresponding period of 2017.

Junior home minister Hansraj Ahir, in written reply to a question in Rajya Sabha on Wednesday, also said 238 terrorists were neutralised till December 2 this year. According to sources this figure has since surpassed the last highest level of 239 terrorists killed in 2009.

2019-02-20T16:34:51Z

Shivam:

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[[Category:India |E ]]
[[Category:Economy-Industry-Resources |E ]]
[[Category:Development |E ]]

= 1991-2016 =
[https://www.indiatoday.in/magazine/glossary/story/20160725-glossary-of-the-week-829233-2016-07-13 Damayanti Datta , 25 years of liberalization “India Today” 13/7/2016]

''' See graphic '''

[[File: 25 years of liberalisation .jpg| 25 years of liberalisation [https://www.indiatoday.in/magazine/glossary/story/20160725-glossary-of-the-week-829233-2016-07-13 .<br/>“India Today”]|frame|500px]]

=Reforms and politics=

Dec 18 2014

[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=TIT-FOR-TAT-REFORMS-HOSTAGE-TO-POLITICS-18122014025031''The Times of India'']
[[File: pol1.jpg|A timeline- Reforms and politics: 2000-2014|frame|500px]]
Political parties have been discussing two key economic policy issues -insurance and the goods and services tax (GST) -for over a decade.Both bills are seen to be critical for improving investor sentiment and efficiency in the economy. When the Congress was in power, the BJP erected roadblocks. With a change in seating arrangement in Parliament, the roles reversed -the BJP is now pushing for these two critical reforms but the Opposition is putting up roadblocks.

File:25 years of liberalisation .jpg

2019-02-20T16:33:35Z

Shivam:

Economic Reforms: India

2019-02-20T16:32:09Z

Shivam: /* Reforms and politics */

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[[Category:Economy-Industry-Resources |E ]]
[[Category:Development |E ]]

= 1991-2016 =
[https://www.indiatoday.in/magazine/glossary/story/20160725-glossary-of-the-week-829233-2016-07-13 Damayanti Datta , 25 years of liberalization “India Today” 13/7/2016]

''' See graphic '''

[[File: 25 years of liberalisation .jpg| 25 years of liberalisation [https://www.indiatoday.in/magazine/glossary/story/20160725-glossary-of-the-week-829233-2016-07-13 .<br/>“India Today”]|frame|500px]]

=Reforms and politics=

Dec 18 2014

[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=TIT-FOR-TAT-REFORMS-HOSTAGE-TO-POLITICS-18122014025031''The Times of India'']
[[File: pol1.jpg|A timeline- Reforms and politics: 2000-2014|frame|500px]]
Political parties have been discussing two key economic policy issues -insurance and the goods and services tax (GST) -for over a decade.Both bills are seen to be critical for improving investor sentiment and efficiency in the economy. When the Congress was in power, the BJP erected roadblocks. With a change in seating arrangement in Parliament, the roles reversed -the BJP is now pushing for these two critical reforms but the Opposition is putting up roadblocks.

2019-02-20T14:47:46Z

Shivam:

UK-India relations

2019-02-20T14:46:40Z

Pinarayi Vijayan

2019-02-18T11:24:51Z

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[[Category:India |V ]]
[[Category:Politics |V ]]

= Pinarayi Vijayan =
[https://www.indiatoday.in/magazine/nation/story/20170717-ldf-pinarayi-vijayan-cm-kerala-government-1022699-2017-07-08 Jeemon Jacob , A left CM gets it right “India Today’ 17/7/2017]

It was May 24, 2016, a day after his birthday and CPI(M) strongman Pinarayi Vijayan was finally realising a long cherished ambition-becoming chief minister of Kerala. Things were looking up, the Left Democratic Front (LDF) headed by his party, the CPI(M), had an absolute majority and long-time bete noire and party veteran, ex-CM V.S. Achuthanandan, had finally been sidelined.

A year down the line, though, things are not as certain as they were. For a man so set in his ways, Pinarayi has had to back down more times than he would have liked. He has found out that he cannot always depend on the people he had trusted. Their shortcomings have damaged the image of his government. But at age 72, when most politicians give thanks just for staying in office, Pinarayi is not afraid to begin anew. He has scored unexpected victories (the NH widening and GAIL gas pipeline issues had been stuck for ages), won international accolades (for giving transgenders job reservations in the Kochi Metro and the welfare insurance scheme for the state's migrant workers) and stood firm in the face of the gravest opposition.

Pinarayi always had the reputation of a man who gets things done, and this time too he set the agenda for the government as soon as he took over. Where he could be faulted is in selection of cabinet colleagues, most of whom are loyalists. The only exception is Dr Thomas Isaac, the popular finance minister (who he is accused of sidelining by not making him No. 2 in the cabinet, despite seniority and experience).

That aside, Kerala, for the first time, feels like it has a chief minister who means business. The change has been visible from the state secretariat down. Pinarayi has even managed to discipline the notorious non-gazetted officers union. Government offices are finally running smoothly with officers and clerks reaching on time.

A high priority was also the weeding out of corruption in public office. But that effort didn't go exactly to plan. Jacob Thomas, a 1985 batch IPS officer, was made head of the vigilance and anti-corruption wing (ignoring the warnings of many), and entrusted with the task. When Thomas called on him before taking charge, Pinarayi assured him of a free hand. Thus began a series of raids and cases against the high and mighty, including public officials and senior IAS men.

The raids made Thomas both a hero and a villain. The TV channels celebrated his actions, but within the establishment there were mutterings that he had exceeded his brief. But Pinarayi refused to rein him in, even after he demanded files from the finance department of the Kerala Infrastructure Investment Fund Board, a dream project of the CM's. "Pinarayi made a strategic blunder giving a free hand to a man who wants to be in the news round the clock," says a senior CPI(M) leader. "His actions in the initial days impressed the CM. But the harm he has done to the government will be permanent."

Thomas's ouster finally came after the Kerala High Court took exception to his 'vigilance raj' tactics. But by then, the damage was done. Inter-departmental spats, counter-charges of corruption against Thomas himself from his days as ports director... a whole new can of worms opened up. Pinarayi, to his credit, protected him until the situation became untenable. Meanwhile, another crisis was brewing in the home department. The CPI(M)-led government's battle with ousted Director General of Police T.P. Senkumar became a huge embarrassment after the Supreme Court reinstated the top cop. Senkumar's second term as Kerala's police chief lasted barely two months (he retired on June 30) but his interviews since then have not been kind to the CM, the home ministry, or indeed the state police department itself.

But even with all the negative publicity, Pinarayi has not shied away from subjecting his government to public scrutiny. On June 5, he released a progress report of his government, a public document open to critical review. For the first time in India, a state government was telling the people to rate its performance through social auditing.

"Forget all the controversies, this is something unprecedented," says Dr K.M. Abraham, an additional chief secretary in the finance department. "The CM's made a great beginning by admitting where his government has excelled and where it has fallen short."

The report has the usual self-congratulatory plaudits, invoking achievements like the 213,745 new jobs created in the tourism and IT sectors, or the before-time delivery of uniforms and textbooks to poor students (usually it's December and the half-yearly exam before they get it). But where the LDF government has really been successful is in getting the wheels rolling on long-delayed projects like the GAIL Mangalore-Kochi gas pipeline and the six-laning of the state's national highways (minimum 45 metres width). These have been contentious issues for years, mostly over land acquisition in a densely populated state. Now, the progress on them, along with the inauguration of the Kochi Metro, has given people hope that things might finally be looking up for the state.

Pinarayi and his government have drawn up an ambitious four-mission plan for the next four years. This includes Haritha Keralam, an 'umbrella mission' which has under it integrated waste management, organic vegetable farming, afforestation, water resources management, even power generation through wind and solar energy.

The public education system is the second on the list. So, 45,000 smart classrooms are planned for government schools, another 1,000 will get an infrastructure upgrade, and a Rs 650 crore package has been readied to convert government colleges into centres of excellence. There's even a Rs 900 crore package to help students struggling with their student loans. The other two parts of the four-mission plan are the Ardram 'people-friendly' healthcare project and Mission LIFE, which hopes to ensure that there will be no homeless family in the state by 2020. The universal housing scheme will include some 200,000 homes in clusters.

Meanwhile, after the Kochi Metro, infrastructure upgrades continue apace. Ports are coming up in Vizhinjam and Ponnani; Kannur international airport, the fifth largest in the country, will be operational by year-end; and a 'national waterway', connecting Kovalam in the south to Kasargod in the north of the state is on the anvil.

Politically, too, the LDF government has been active. It has stood up to the Centre, denouncing its attempt to extend the ban on cattle slaughter in the predominantly beef-eating state. Pinarayi hasn't hesitated over reversing the liquor ban either, saying the state's finances, and the tumult in the tourism sector, demanded such a decision.

Pinarayi's government has also been one of the big supporters of the landmark Goods & Services Tax. "With Kerala being a consumer state, its tax revenues will increase and this situation should help the state overcome the financial deficit in four years," says finance minister Isaac. Of course, being a true Communist, he also derided how GST has "paved the way for reduced taxes on luxury items and excess tax for essential commodities", saying it would lead to price rise and more class disparity.

All the above reforms, though, have still not got the chief minister on the right side of the media. Long-time friend and colleague, LDF coordinator Vaikom Viswan, says it doesn't matter. "Pinarayi is not to be taken lightly. He has his priorities sorted and he won't care for the challenges. He will find a way to achieve his objectives," he says.

Opposition leader Ramesh Chennithala, though, is not too hopeful. "This is the worst performing government Kerala has had," he says. "There is no accountability, the CM doesn't even care to answer in the assembly about the home department's functioning."

BJP state president Kummanam Rajasekharan too is scathing, blaming the CM for engineering the attacks on party cadre. "Our boys are being brutally murdered. The law and order situation in the state is abysmal. What progress can Kerala make when Pinarayi rules?" he asks. The R.S.S .and the CPI(M) have always been at each other's throats in north Kerala, but the former has not fared too well since the Marxists took power.

But clearly, in the battle for minds, Pinarayi still has a lot going for him. "I rate this government as the most functional one to ever rule Kerala," says one of the state's popular New Wave filmmakers, Ranjith. "Compared to the last regime, no one can level a corruption charge against this government. Also, perhaps for the first time we have a government which has identified core areas of development and is working with a vision."

Ranjith feels that Kerala needs a person like Pinarayi now to "carry forward its dreams". "We have been victims of compromised politics for too long," he says.

But problems from the past can still put a spanner in the works. The SNC Lavalin case-a CBI investigation alleges that when Pinarayi was power minister in the late 1990s, the Canadian company was given undue favours in hydroelectric projects-is pending before the high court. A ruling is expected soon in the case.

Catholic priest and popular media critic Fr Paul Thelakat has an interesting take on Pinarayi's term so far. "As chief minister, he has excelled in most areas. But his image is still of a dictator. In government, one should develop free channels of feedback. Blocking this can paralyse a leader and the government. Some criticism is always good for a strong leader," he says. It's good advice, and Pinarayi would do well to take heed as his second year in government gets under way.

Price Deficit Payment Scheme

2019-02-18T10:21:29Z

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[[Category:Flora |P ]]

= 2017 =
[https://www.indiatoday.in/magazine/states/story/20170918-bhaavantar-yojana-madhya-pradesh-price-deficit-payment-1039963-2017-09-08 Rahul Noronha , The agricultural vote bank “India Today” 18/9/2017]

Madhya Pradesh became the first state in the country to bring in a 'Bhaavantar Yojana' or 'price deficit payment' scheme for agricultural produce, making it possible for the government to bail out farmers without having to buy their produce. The scheme will also help the government avoid the goof-ups and accusations of mismanagement of procured stock as happened recently in the procurement of 8.76 lakh tonnes of onions.

Cleared by the state cabinet, the scheme will enable the government to pay the difference between the modal price and the MSP (minimum support price) of a crop in case prices fall below the MSP. The modal price will be the average price of an agricultural commodity over a two-month period in MP and two other states where it is grown. Eight crops will be covered, including soyabean, of which MP is the biggest producer.

A brainchild of NITI Aayog member Ramesh Chand, the scheme was earlier tried out on a pilot basis in Goa and, for pulses, in MP. The scheme comes close on the heels of massive mismanagement in procurement of onions-a decision seen as a kneejerk reaction to the farmers' agitation in June. Thousands of tonnes of onion were procured by Markfed (MP State Cooperative Marketing Federation Ltd), only to be dumped and left to rot after the rains. The loss suffered by the exchequer has been estimated at nearly Rs 500 crore. The government purchased the onions at Rs 8 per kg and sold a part of it through the PDS network at Rs 2 per kg. The remainder went for as little as 10 paise a kg after the rains started. A GM of the MP state civil supplies corporation, S.K. Soni, was arrested after a sting operation by the INDIA TODAY news channel showed him fixing a deal to sell procured onions to traders at depressed rates.

Worse still, nearly 25,000 tonnes of onions are still 'missing', with Markfed extending excuses like 'moisture loss', something which even its parent body, the department of cooperation, is not buying. The losses this year were a repeat of the 2016 procurement mess by Markfed, albeit on a much bigger scale. In 2016, 72 per cent of the 1.04 lakh tonnes of onions procured were destroyed while the remaining 27,000 tonnes were sold at Rs 3 per kg. "Onion procurement was an emergency situation," says Markfed MD Gyaneshwar Patil. "It was done during the rains and Markfed has no facilities to store, nor any expertise in procurement. We can't blame anyone for the losses due to damage. However, if other anomalies are detected, action will be taken."

Sensitive to the flak, the Shivraj Singh Chouhan government rolled out the Bhaavantar Yojana. State elections are due in 2018 and the farming community has been the backbone of the CM's support base. There were already concerns after the farmers' agitation in June. The scheme still doesn't address the issue of non-remunerative prices for perishable agricultural produce, a plank of the farmers' agitation. Also, the scheme doesn't deal with inefficiencies at the mandis or cartelisation, both of which are responsible for farmers not getting their due. "We will address mandi reforms administratively in the months to come," says principal secretary, agriculture, Rajesh Rajora.

Sakti Burman

2019-02-18T05:26:45Z

Shivam:

Sakti Burman

2019-02-18T05:24:40Z

The Reserve Bank of India

2019-02-17T16:15:38Z

Shivam:

[[File: Governors of RBI since 1991.jpg|Governors of RBI since 1991; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=20_06_2016_017_024_002&type=P&artUrl=RAJANS-REPORT-CARD-IN-GOVERNORS-CLASS-20062016017024&eid=31808 ''The Times of India'']|frame|500px]]

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[[Category:India|R]]
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=History=
[https://rbi.org.in/History/Brief_History.html rbi.org]

The Reserve Bank of India is the central bank of the country. Central banks are a relatively recent innovation and most central banks, as we know them today, were established around the early twentieth century.

The Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission. The Reserve Bank of India Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank, which commenced operations on April 1, 1935.

The Bank was constituted to:

* Regulate the issue of banknotes

* Maintain reserves with a view to securing monetary stability and

* To operate the credit and currency system of the country to its advantage.

The Bank began its operations by taking over from the Government the functions so far being performed by the Controller of Currency and from the Imperial Bank of India, the management of Government accounts and public debt. The existing currency offices at Calcutta, Bombay, Madras, Rangoon, Karachi, Lahore and Cawnpore (Kanpur) became branches of the Issue Department. Offices of the Banking Department were established in Calcutta, Bombay, Madras, Delhi and Rangoon.

Burma (Myanmar) seceded from the Indian Union in 1937 but the Reserve Bank continued to act as the Central Bank for Burma till Japanese Occupation of Burma and later upto April, 1947. After the partition of India, the Reserve Bank served as the central bank of Pakistan upto June 1948 when the State Bank of Pakistan commenced operations. The Bank, which was originally set up as a shareholder's bank, was nationalised in 1949.

An interesting feature of the Reserve Bank of India was that at its very inception, the Bank was seen as playing a special role in the context of development, especially Agriculture. When India commenced its plan endeavours, the development role of the Bank came into focus, especially in the sixties when the Reserve Bank, in many ways, pioneered the concept and practise of using finance to catalyse development. The Bank was also instrumental in institutional development and helped set up insitutions like the Deposit Insurance and Credit Guarantee Corporation of India, the Unit Trust of India, the Industrial Development Bank of India, the National Bank of Agriculture and Rural Development, the Discount and Finance House of India etc. to build the financial infrastructure of the country.

With liberalisation, the Bank's focus has shifted back to core central banking functions like Monetary Policy, Bank Supervision and Regulation, and Overseeing the Payments System and onto developing the financial markets.

[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=A-bank-central-to-monetary-policy-22082016013031 ''The Times of India'']

'''Which was India's first central bank?'''

The first central bank was the Imperial Bank of India formed in 1921 by merging the Presidency banks. The bank was further enlarged by the merger of several banks owned by princely states like Jaipur, Mysore and Patiala.

The Imperial Bank of India was supposed to perform three functions -commercial banking, central banking and banker of the government. By 1930, there were 1,258 banking institutions in the country registered under the Companies Act. Of these, the Imperial Bank was the most dominant.The global economy was passing through the Great Depression and this resulted in the failure of many banks in India as well. Various committees set up to study the Indian banking system recommend ed the formation of a central bank which was free from commercial banking. In most modern economies, central banks were formed largely to tackle the failure of unorganised banking by enforcing regulatory safeguards.

'''When was the Reserve Bank of India formed?'''

The bank was formed in 1935 by the Reserve Bank of India Act, 1934. The objectives included being the banker of the government and other banks, to maintain the exchange ratio and to regulate issue of bank notes. The overall objective of the bank was to secure monetary stability.

'''What are its current roles?'''

The bank formulates, implements and monitors India's monetary policy. It monitors and regulates the financial system through prescribing broad parameters of banking operations to ensure public confidence in the system and protect depositors' interests.The bank also manages foreign trade and monitors foreign exchange reserves. It is the only authority that has the right to issue or destroy currency .

'''How is the bank governed?'''

Like other central banks, the RBI too is an independent entity within the government.It is governed by a central board of directors appointed by the government according to the Reserve Bank of India Act. The board is appointed for four years with a governor and not more than four deputy governors as official directors. There are also 10 directors nominated by the government, two government officials and four directors -one each from local boards -who act as non-official directors.

=Reserve Bank of India Act of 1934=
==What is Section 7 of the Reserve Bank of India Act of 1934==
[[File: Sec 7 of the Reserve Bank of India Act of 1934.jpg|Sec 7 of the Reserve Bank of India Act of 1934 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F31&entity=Ar00501&sk=13998587&mode=text Mayur Shetty, Will govt invoke Sec 7 for 1st time if RBI logjam persists?, October 31, 2018: ''The Times of India'']|frame|500px]]

'''See graphic''':

''Sec 7 of the Reserve Bank of India Act of 1934''

==Sec 7 application considered in 2018, Oct==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F31&entity=Ar00501&sk=13998587&mode=text Mayur Shetty, Will govt invoke Sec 7 for 1st time if RBI logjam persists?, October 31, 2018: ''The Times of India'']

''Is Said To Have Referred To The Law Recently''

No government has invoked Section 7 of the Reserve Bank of India Act of 1934 in the central bank’s 83-year history.

It is seen as an instrument of last resort, a direct order from the government of the day to the central bank to carry out its wishes (see graphic, ‘In Public Interest’).

The Modi government, despite its growing frustration with the Urjit Patel-led RBI, has resisted suggestions that it invoke Section 7 to increase liquidity, ease pressure on banks and businesses, and boost economic growth. But there are indications that via recent communications, it has initiated a consultative process with the RBI in three areas of concern and while doing so, has mentioned Section 7 without actually invoking it.

'''Was fear of Section 7 behind RBI dy guv’s attack on govt?'''

The government is learned to have recently initiated a consultative process with the RBI in three areas of concern – power sector loans, ‘prompt corrective action’ (PCA), and special dispensation for micro-small and medium enterprises (MSMEs) – and while doing so, mentioned Section 7, without actually invoking it. The Section says, “The Central Government may from time to time give such directions to the Bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest.”

The government’s move is significant as such a consultative process could potentially lead to the government issuing directions should the logjam persist. The issue of invoking Section 7 first came up during a hearing before the Allahabad high court in a case filed by the Independent Power Producers challenging the RBI’s February 12 circular which did away with all restructuring schemes for loans in default. After the counsel for RBI pointed out that legally the government could issue directions to the central bank, the court in its ruling in August said such a move could be considered.

Historically, whenever governors have spoken about the independence of the central bank, they have never failed to point out that Section 7 has never been used.

A senior official in the government said there has so far been no move to invoke Section 7. Another person, when asked, said, “Communication between the government and the central bank is sacrosanct and cannot be disclosed.”

There is some speculation that it was the government’s mention of section 7 that was the trigger for deputy governor Viral Acharya’s outburst against the government last Friday. While he did not make any reference to the Section, he did speak about how the government could undermine the independence of the central bank by ‘blocking or opposing rule-based central banking policies and favouring instead discretionary or joint decisionmaking with direct government interventions’.

The government wants norms for non-performing assets in the power sector – which currently require companies to be referred to bankruptcy courts -- to be relaxed. Once admitted, the companies have to be either sold or liquidated.

Its concern about 'prompt corrective action' is that the classification of PCA has placed lending and expansion curbs on 11 public sector and one private bank, which it believes is choking fund flows to several sectors. The government has also been worried about the fate of MSMEs, and is keen that the definition of bad loans be softened.

A broader concern is about the liquidity situation which has taken a turn for the worse after a series of defaults by IL&FS in September. The defaults have had a cascading impact — MFs that had invested in IL&FS debt were hit, corporates who had put shortterm funds in MFs turned cautious, and the funds themselves turned cautious about putting money in financial companies.

=Central board of directors=
==The Central Board==
The Reserve Bank's affairs are governed by a central board of directors. The board is appointed by the Government of India in keeping with the Reserve Bank of India Act.

• Appointed/nominated for a period of four years

Constitution:

o Official Directors

♣ Full-time : Governor and not more than four Deputy Governors

o Non-Official Directors

♣ Nominated by Government: ten Directors from various fields and two government Official

♣ Others: four Directors - one each from four local boards

Functions : General superintendence and direction of the Bank's affairs

===The Board, as in 2018===
[[File: The RBI’s Central board of directors, as in 2018.jpg|The RBI’s Central board of directors, as in 2018. <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar00314&sk=1E299772&mode=text Sidhartha, December 11, 2018: ''The Times of India'']|frame|500px]]

'''See graphic''':

''The RBI’s Central board of directors, as in 2018''

==Local Boards==
• One each for the four regions of the country in Mumbai, Calcutta, Chennai and New Delhi

Membership:

• consist of five members each

• appointed by the Central Government

• for a term of four years

Functions : To advise the Central Board on local matters and to represent territorial and economic interests of local cooperative and indigenous banks; to perform such other functions as delegated by Central Board from time to time.

==Why RBI is not comfortable with active boards==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F06&entity=Ar02101&sk=3514EE46&mode=text Mayur Shetty, Why RBI is not comfortable with a more active board, November 6, 2018: ''The Times of India'']

[[File: Industrialists on RBI Board.jpg|Industrialists on RBI Board <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F06&entity=Ar02101&sk=3514EE46&mode=text Mayur Shetty, Why RBI is not comfortable with a more active board, November 6, 2018: ''The Times of India'']|frame|500px]]

''Bizmen In Rule-Debating Role Raise Conflict Of Interest Issue''

An active board seeking a say in bank regulation has thrown up questions about conflict of interest, given the presence of industrialists on the board of the Reserve Bank of India (RBI).

Traditionally, the RBI board had a strong presence of eminent industrialists like Ratan Tata, N R Narayana Murthy and Azim Premji. It has also included chiefs of highly indebted groups like K P Singh of DLF and G M Rao of the GMR Group. However, there was never any conflict of interest as the minutiae of bank regulation or monetary policy never came up to the board. That’s because, until now, the RBI board only gave a broad direction that the central bank should take.

But in the October 23 board meeting, some directors are understood to have turned vocal on a few RBI regulations. According to a senior former central banker, there would be conflict of interest if these businessmen had advance information of RBI’s regulations. He was reacting to reports that some directors wanted the RBI central board to play a more active role and deliberate on regulations. There is talk of the board wanting to push through five decisions, which includes issues such as regulatory forbearance and allowing weak banks to lend, in the forthcoming RBI board meet on November 19.

Sources close to the central bank also point out that, unlike boards constituted under The Companies Act, the RBI Act 1934 grants the governor with powers that are concurrent with the board. They refer to clause 3 of the hotly debated Section 7 of the RBI Act. While the first clause confers powers on the government to give directions to the RBI, the third part indicates that the governor shares power.

This clause 3 states, “Save as otherwise provided in regulations made by the central board, the governor and in his absence the deputy governor nominated by him in this behalf, shall also have powers of general superintendence and direction of the affairs and the business of the bank, and may exercise all powers and do all acts and things which may be exercised or done by the bank.” A source said, “The choice of the words ‘shall also have powers’ indicates that these are concurrent with the board.”

According to sources, the powers of the governor are reiterated in the Reserve Bank of India, General Regulations, 1949, which also addresses the issue of conflict of interest between board decisions and individual interests of directors. “You can imagine what would happen if an issue like the February 12 circular on recognition of non-performing assets came up to a board that included owners of highly indebted companies,” a source said.

=How other central banks function=
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F30&entity=Ar02204&sk=41DBD133&mode=text Source: Central bank websites, agencies, WSJ, How other central banks function, October 30, 2018: ''The Times of India'']

[[File: The US government’s frictions with its central bank under President Trump.jpg|The US government’s frictions with its central bank under President Trump <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F30&entity=Ar02204&sk=41DBD133&mode=text Source: Central bank websites, agencies, WSJ, How other central banks function, October 30, 2018: ''The Times of India'']|frame|500px]]

'''The US Federal Reserve''': Like other central banks, the Fed is an independent government agency. It is accountable to the public and the US Congress. Members of the board of governors are appointed for staggered 14-year terms and the board chair is appointed for a four-year term. Elected officials and members of the administration are not allowed to serve on the board. The Fed does not receive funding through the congressional budgetary process. The financial statements of the Federal Reserve Banks and the board of governors are audited annually by an independent, outside auditor.

'''The Bank of England (BoE)''': The BoE is owned by the UK government. It has specific statutory responsibilities for setting policy rates, carried out within a framework set by government but free from day-to-day political influence. Parliament gives specific goals and responsibilities. The government sets the target — which is 2%. A panel meets to agree interest rate decisions eight times a year. There are other panels on other issues, which ensures that the financial system is working properly to serve UK households and businesses. The BoE is answerable to both parliament and the public.

'''European Central Bank (ECB)''': It manages the euro and implements monetary and economic policy for the EU. Probably the most independent of central banks, the ECB charter prevents it from backing any government. However, it is criticised as being non-independent because it is at the mercy of the governments of Europe’s creditor countries.

'''Bank of Japan''': It has a legal mandate to maintain price stability. The government is not allowed to sack the central bank governor or members of the board but parliamentarians have the right to appoint them. Bank regulation is done by the Financial Services Agency.

'''People’s Bank of China''': The Chinese central bank is subservient to the communist party and its national objectives. It is responsible for mainlining growth, price stability, currency stability and health of financial sector.

'''Central Bank of Argentina''': RBI deputy governor Viral Acharya used the example of the constitutional crisis in Argentina. The Cristina Fernandez-led government in 2010 attempted to raid the central bank’s reserves, resulting in bond yields shooting up and foreign investors exiting.

'''Turkey Central Bank''': The sharp depreciation in emerging market currencies was seen to have been triggered by the fall in the Turkish lira. The collapse of the lira has been attributed to Turkish president Recep Tayyip Erdogan taking control of Central Bank of the Republic of Turkey and preventing it from raising rates.

=The post of Governor=
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=No-age-cap-fixed-rules-for-RBI-top-20062016017020 ''The Times of India''], June 20, 2016

'''Who can be an RBI governor?'''

Unlike the appointment of fo ur deputy governors, there are no fixed rules. But most RBI governors have been civil servants (11), followed by economists (five). There has also been one banker, an insurance company executive and one RBI employee who have gone on to be the governor.

'''How are candidates selected?'''

In the past, candidates were shortlisted by the government, and the Prime Minister appointed the governor in consultation with the finance mi nister. On some oc casions, some of the candidates we re called for an in LEARNING formal interaction WITH THE TIMES with the finance mi nister (D Subbarao was appointed through this route) although the final decision was taken by the PM. Now, the government has tasked a committee headed by the Cabinet secretary to shortlist candidates and the final decision will be taken by PM Narendra Modi.

'''Is there an age cap or are some qualifications stipulated?'''

No, there is neither an age restriction nor qualifications are specified in the law. Governments have opted for those with understanding of overall economy , the financial sector as well as those familiar with th functioning of the government

'''What is the RBI governor' tenure?'''

The RBI Act allows the government to specify the term but the ? tenure cannot exceed five years, with a possibility of reappointe ment. In recent years, only S Venkitaramanan, who spent two years as RBI governor, has had a shorter stint than Raghus ram Rajan.

=Selection of Governor, Dy. Governor=
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=In-a-first-panel-to-list-RBI-guv-11062016001061 The Times of India], Jun 11 2016

Rajeev Deshpande

In a break from tradition, the government has tasked a selection committee headed by cabinet secretary P K Sinha with shortlisting candidates for Reserve Bank of India governor -a decision that was taken earlier by the Prime Minister in consultation with the finance minister.
In the past, chiefs of other regulatory bodies -including insurance, pension and Sebi -have been shortlisted by search committees. But this will be the first time the RBI governor will be appointed similar ly, signalling a major shift in government stance and ending the special treatment given to central bank chiefs. The decision to route the RBI governor's appointment through the financial sector regulatory appointment search committee (FSRASC) seems intended to cool speculation over Raghuram Rajan being considered for a second term.

The FSRASC, set up in 2015, had interviewed candidates for Sebi chief. In February 2016, the government ignored its recommendation and reappointed U K Sinha for a year. A part from the cabinet secretary, the committe comprises additional principal secretary to PM P K Mishra, who is a permanent government nominee, and three outside experts -Rajiv Kumar of Centre for Policy Research, Manoj Panda of the Institute of Economic Growth and Bimal N Patel from Gujarat National Law University. A finance ministry representative will be a special invitee. The panel's recommendation will be sent to the appointments committee of cabinet headed by the PM, which will decide on the governor.

Going by the current thinking in official circles, a second term for Rajan could well be on the cards despite occasional reports that put him at cross-purposes with the government over issues like rate cuts or `Make in India'. At the same time, the government does not seem keen to imbue the appointment with a greater profile of attention. The committee route would be in sync with PM Narendra Modi's remark that the appointment is an “administrative decision“ that will be taken closer to September when Rajan's term ends.

The committee's recomendation for RBI deputy governor was a break from past practice as previously, the head of the regulatory body presided over the selection committee. This time around, the RBI governor was a member of the FSRASC.

The process of making top-level appointments to regulatory bodies has been problematic, with the choices often being seen to be politically influenced. Even with the committee-bound process, the choice for sensitive posts will no doubt be vetted by the political authority. But the decision to make FSRASC the recommending body that could well put up a single name instead of a short list for a regulator is aimed at reducing discretion and putting all such bodies on a par.

=Salary and perquisites of RBI governors=
==2016: Urjit Patel’s package==
[http://timesofindia.indiatimes.com/business/india-business/RBI-governor-Urjit-Patel-gets-Rs-2-lakh-a-month-pay-no-support-staff-at-home/articleshow/55788608.cms December 4, 2016: The Times of India]

''' ''RBI governor Urjit Patel gets Rs 2 lakh a month pay, no support staff at home'' '''

'''HIGHLIGHTS'''

RBI governor Urjit Patel gets a little over Rs 2 lakh as salary

RBI governor Urjit Patel gets a little over Rs 2 lakh as salary and has not been provided with any support staff at his residence, the central bank has said.

Patel, who took over as RBI Governor in September+ , is presently in possession of the bank's flat (Deputy Governor's flat) in Mumbai, it said. "No support staff has been provided to the present Governor, Urjit Patel at his residence. Two cars and two drivers have been provided to the present Governor," RBI said in reply to an RTI query.

The bank was asked to provide details of remuneration given to former RBI governor Raghuram Rajan+ and incumbent Patel.
For the month of October — the first full month Patel was in office as Governor — Patel got Rs 2.09 lakh as his salary, the same amount drawn by Rajan as his August's salary. Rajan demitted office on September 4, and was given Rs 27,933 as remuneration for four days.

Rajan assumed the charge of RBI Governor from September 5, 2013 at a monthly salary of Rs 1.69 lakh. His salary was revised to Rs 1.78 lakh and Rs 1.87 lakh respectively during 2014 and March 2015. His salary was hiked to Rs 2.09 lakh from Rs 2.04 lakh in January 2016, the RTI reply said.

Rajan was provided with three cars and four drivers. "One caretaker and nine maintenance attendants were posted as supporting staff in the bungalow provided by the bank to the former Governor Raghuram Rajan at Mumbai," RBI said.

The Centre has recently declined to share details on appointment of Patel and other candidates shortlisted for the top post in the central bank saying these are "cabinet papers" and cannot be made public. Patel was on August 20 named as RBI's Governor to succeed Rajan.

==2017, pay hike: Rs 2.5 lakh/month==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=RBI-governors-pay-hiked-to-Rs-25L-per-03042017008029 RBI governor's pay hiked to Rs 2.5L per mth, April 3, 2017: The Times of India]

RBI governor Urjit Patel and his deputies have got a big pay hike with the government more than doubling their basic salary to Rs 2.5 lakh and Rs 2.25 lakh per month, respectively .
The “basic pay of the governor and deputy governors“ have been revised retrospectively with effect from January 1, 2016 and marks a huge jump from Rs 90,000 basic pay so far drawn by the Governor and Rs 80,000 for his deputies. Still, their salaries are much lower than the top executives of various banks regulated by the RBI.The RBI, however, did not disclose the new gross pay for Patel and his deputies following the revision in basic pay.

=Governors of the Reserve Bank of India=
==1935- 2013: complete list==
[http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2013/08/07&PageLabel=22&ForceGif=true&EntityId=Ar02206&ViewMode=HTML The Times of India] 2013/08/07

[[File: rbiGova.png||frame|left|500px]]
[[File: rbiGovb.png||frame|500px]]
<br/>

[[File: Governors of RBI since 1935.jpg|Governors of RBI since 1935; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=21_08_2016_017_017_001&type=P&artUrl=GOVERNORS-IN-LIBERALIZED-INDIA-21082016017017&eid=31808 ''The Times of India''], August 21, 2016|frame|500px]]

[[File: Interest rates, inflation and GDP growth during the tenures of RBI Governors, 1990-April 2016.jpg| Interest rates, inflation and GDP growth during the tenures of RBI Governors, 1990-April 2016; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=16_04_2016_021_021_010&type=P&artUrl=Rate-cut-depends-on-raindrops-Rajan-16042016021021&eid=31808 ''The Times of India''], April 16, 2016|frame|500px]]

[[File: Rates during the regime of RBI governor Mr. Raghuram Rajan, September 2013-September 2016.jpg|Rates during the regime of RBI governor Mr. Raghuram Rajan, September 2013-September 2016; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=10_08_2016_027_050_009&type=P&artUrl=Rates-unchanged-but-Rajans-cash-promise-trims-yields-10082016027050&eid=31808 ''The Times of India''], August 10, 2016|frame|500px]]

== Duvvuri Subbarao: 2008-2013==
Subbarao, man who fell into cauldron of woes

Surojit Gupta | TNN

[http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2013/08/07&PageLabel=22&EntityId=Ar02205&ViewMode=HTML The Times of India] 2013/08/07

New Delhi: For Duvvuri Subbarao it was baptism by fire when he took over the reins of the Reserve Bank of India nearly five years ago.

As soon as he stepped into the corner office at the central bank headquarters in Mumbai’s Mint Road, a tsunami struck the global financial system. The force of the 2008 global financial meltdown meant that RBI had to call on all its resources to shield the economy from being brutalized.

Subbarao, a mild-mannered former civil servant, remained unfazed. With the government, he scripted a recovery process stabilizing the economy, helping it weather the storm better than some of its peers.

But this was short-lived. The economy was buffeted by stubborn inflation, including double-digit food inflation, prompting the central bank to focus on taming prices. It raised rates furiously, almost 13 times, to throttle inflation.

Of late, frosty ties between RBI and the finance ministry have dominated discussions. Critics slammed the policy to tackle inflation while the government sometimes expressed disappointment. Finance minister P Chidambaram, who is careful with words, appeared disappointed as RBI left interest rates unchanged.

“Growth is as much a challenge as inflation. If the government has to walk alone to face the challenge of growth then we will walk alone,” Chidambaram said highlighting the need for an inflation-growth balance.

Adding to Subbarao’s problems, the fiscal situation deteriorated. Growth slowed. Scandals and policy missteps, such as retrospective taxes forced investors to the sidelines. Subbarao bravely continued calling for action on the fiscal front to enable him to slash interest rates. That didn’t happen until Chidambaram stepped in as finance minister in September. His reform initiatives helped restore the health of public finances. RBI obliged with a rate cut. But this came with a caveat on the ch a l l e n g e s on the prices front.

As things appeared to settle down, the crisis on the currency front emerged, prompting RBI to work towards taming the volatile forex market.

Some economists said the RBI under Subbarao misjudged the signals. “You cannot separate two or three issues, one of which is that when it comes to inflation and growth, both monetary and fiscal policies matter. In my assessment, the country had the most unfortunate fiscal policies compounded by the most unfortunate monetary policy,” economist Surjit Bhalla said. “The RBI misjudged the economy, determinant of inflation, determination of growth and determinant of the exchange rate.”

He said the RBI under Subbarao had misjudged food inflation and hiked rates. “What could’ve been a virtuous cycle has been turned into a vicious cycle,” Bhalla said. Not all would agree with such a harsh summation.

==Raghuram Rajan==
[[Raghuram Rajan]]

==Urjit Patel==
===2016-18===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F08%2F27&entity=Ar01714&sk=C1069BC6&mode=text Mayur Shetty, After 2 years as RBI governor, Patel nears bad debt endgame, August 27, 2018: ''The Times of India'']

[[File: The first two years of Urjit Patel’s innings as the Governor of the RBI- Economic indicators 2016-18.jpg|The first two years of Urjit Patel’s innings as the Governor of the RBI- Economic indicators 2016-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F08%2F27&entity=Ar01714&sk=C1069BC6&mode=text Mayur Shetty, After 2 years as RBI governor, Patel nears bad debt endgame, August 26, 2018: ''The Times of India'']|frame|500px]]

When Urjit Patel was appointed the 24th governor of the Reserve Bank of India (RBI) in August 2016, TOI had cautioned those who saw him as a pro-administration governor, pointing out that he was an inflation hawk.

As he completes two years in office next week (he took over from the previous RBI governor Raghuram Rajan on September 4, 2016), Patel has demonstrated that he is no pushover. Whether it is interest rates, non-performing assets (NPAs) or the issue of public sector bank regulation — Patel has not shied away from locking horns with the government.

While his first year as the head of the central bank was overshadowed by the events following demonetisation, Patel’s tenacity came to light during his second year. That was when the RBI asked lenders to take the who’s who of India Inc to court and sell their businesses under the newly-introduced Insolvency and Bankruptcy Code. These included corporate groups like Essar, Videocon and Bhushan Steel.

Patel’s obduracy, insisting that lenders stick to the letter for classifying loans as bad, has frustrated senior bureaucrats and politicians. Government officials point out that even public sector companies fail to make timely payments. However, for those who have been paying attention to Patel, this tough stance should not come as a surprise.

A year ago in a speech titled ‘Resolution of stressed assets: Towards the endgame’, Patel had highlighted the challenges ahead, “We all must realise that it will be a long haul before the intended objectives are fully achieved... but as long as the endgame is a desirable goal, these should be worth it for placing the private economy structurally on a path of sustained growth.”

When it comes to setting of interest rates, the central bank is perhaps more independent under Patel then it was ever before. This is because Patel’s regime in the RBI coincided with the constitution of the monetary policy committee (MPC), which had a mandated objective to keep inflation at around 4%. Incidentally, the MPC was constituted based on recommendations made by a committee headed by Patel as deputy governor.

Patel’s second year saw increased friction with the finance ministry following the Punjab National Bank scam. Soon after news of the scam broke, FM Arun Jaitley lashed out at the central bank, stating that while politicians are accountable, regulators (meaning the RBI) are not.

Patel’s comeback was equally strong. In one of his rare speeches, the governor said, “Success has many fathers, failures none. Hence, there has been the usual blame game, passing the buck, and a tonne of honking.” He then listed seven legislative provisions that ensured the RBI did not have much of a say in public sector banks. The finance ministry’s pointed rebuttal brought to light the stress in the relationship.

Patel, whose signatures appear in more currency notes than any other RBI governor, is the most low-profile central banker with only eight public speeches in two years. The final year of his term, being an election year, will be even more crucial as it will also bring him into the stressed loan endgame that he speaks about.

== Y.V. Reddy ==
[https://www.indiatoday.in/magazine/up-front/story/20170724-y-v-reddy-reserve-bank-of-india-rbi-1024289-2017-07-14#ssologin=1#source=magazine India Today , The art of managing dissent “ India Today” 24/7/2017]

The world associates Y.V. Reddy with the Reserve Bank of India (RBI). He became its governor in 2003 and ended his term there in a blaze of glory in 2008 for having saved India the blushes in the global financial crisis that began in September 2008, a week after he demitted office. But for YVR's insistence on making Indian banks safe, India too would have emerged hurt and bleeding.

When he took over as governor in September 2003, YVR faced an entirely new problem. Until then, India had always been short of foreign exchange. Suddenly, thanks to the Vajpayee government, which put India on a new footing with the US, India was flush with forex. It fell to YVR to manage the situation, which he did with the unerring sense of innovation he has always displayed in tackling difficult public policy problems. He describes this and the other main events in his life with a sense of calm discretion. Although he devotes considerable space to his difficult relationship with P. Chidambaram as finance minister, this is not a kiss-andtell book. The sense you get is they differed on issues but in the end did the right thing. Those who know him well always feel a sense of marvel at the way he straddles the world of intellect-this book offers rich pickings in that regard-and of practical management which this books describes throughout. YVR's great strength lay in the ease with which he brought intellect to mundane practice, always speckled with his hilarious one-liners.

It is often forgotten that unlike fiscal policy, which lies in the government's domain, and is therefore largely about politics, monetary policy, which the RBI manages, is about ensuring the financial stability of India. The two sets of policies clash with each other all the time and it falls to the governor of the RBI to manage the friction. Some succeed but most fail.

YVR succeeded with professionalism, competence, grace and humour. This book is a must-read for those who want to know more about how he managed the noisy intersection of economics and politics.

=Balance sheet=
==Where do RBI’s surplus funds come from?==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F21&entity=Ar02914&sk=1554FE66&mode=text November 21, 2018: ''The Times of India'']

[[File: The RBI’s reserves, 2013-18.jpg|The RBI’s reserves, 2013-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F21&entity=Ar02914&sk=1554FE66&mode=text November 21, 2018: ''The Times of India'']|frame|500px]]

'''Where do RBI’s surplus funds come from?'''

RBI’s board this week decided to set up an expert committee to examine its ‘Economic Capital Framework’. The committee is expected to break down RBI’s balance sheet to decide if its reserves are consistent with its needs.

'''What is the size of the RBI’s balance sheet?'''

In 2017-18, the size of RBI’s balance sheet was Rs 36.2 lakh crore. Its balance sheet, however, is unlike that of a company. The currency notes it prints make up more than half its liabilities. Another big share, 26%, represents its reserves. These are invested mainly in foreign and Indian government securities (essentially promisory notes bearing an interest rate against which these governments borrow) and gold. RBI holds a little over 566 tons of gold, which along with its forex assets make up almost 77% of its assets. Sometimes, the finance ministry and RBI disagree on what level of reserves RBI must hold to be consistent with its operations.

'''Where do the RBI’s reserves come from?'''

Reserves with RBI are not all of the same kind. In the current debate there are two which are relevant: The Currency & Gold Revaluation Account (CGRA) makes up the biggest share — it was Rs 6.9 lakh crore in 2017-18. This represents the value of the gold and foreign currency that RBI holds on behalf of India. Simply put, variations in this represent the changing market value of these assets. Thus, the RBI notionally gains or loses on this count according to market movements. For example, last year the CGRA increased by 30.5% largely because of the depreciation of the rupee against the US dollar and due to an increase in the price of gold.

The Contingency Fund (CF) is a specific provision meant for meeting unexpected contingencies that arise from RBI’s monetary policy and exchange rate operations. In both cases, RBI intervenes in the relevant markets to adjust liquidity or prevent large fluctuations in currency value. The CF in 2017-18 was Rs 2.32 lakh crore, or 6.4% of assets. The CGRA and CF put together constituted 26% of assets (and because in a balance sheet assets and liabilities must by definition match, also the same proportion of its liabilities).

'''What is the RBI’s surplus?'''

This represents the amount RBI transfers to the government. There are two unique features about RBI’s financial statements. It is not required to pay income tax and has to transfer to the government the surplus left over after meeting its needs. RBI’s income comes mainly through interest on the securities it holds and in 2017-18 the largest component of expenditure was a provision of about Rs 14,200 crore it made to the contingency fund.

Obviously, the larger the provision made to CF, the lower the surplus. Beginning 2013-14, RBI didn’t make a provision to CF for three successive years as a technical committee felt its “buffers” were more than enough. In the last two years, however, RBI has made provisions to CF. The adequacy of the current level of CF is one of the key issues likely to be debated extensively by the expert committee.

==2013-18: surplus transferred ==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F20&entity=Ar02210&sk=E802297C&mode=text Pradeep Thakur, In last 5 yrs, RBI transferred 75% of its income as surplus, November 20, 2018: ''The Times of India'']

[[File: RBI's Balance Sheet, 2013-18.jpg|RBI's Balance Sheet, 2013-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F20&entity=Ar02210&sk=E802297C&mode=text Pradeep Thakur, In last 5 yrs, RBI transferred 75% of its income as surplus, November 20, 2018: ''The Times of India'']|frame|500px]]

The Reserve Bank of India (RBI) transferred around Rs 2.5 lakh crore to the government during the last five years, which was around 75% of the central bank’s income.

While analysing the government’s finance account last year, the Comptroller and Auditor General studied RBI’s income, expenditure and surplus transferred to the Centre between 2013-14 and 2017-18 and found that out of its income of Rs 3.3 lakh crore, the central bank had transferred Rs 2.48 lakh crore. The highest payout was in 2015-16, when 83% of the RBI’s income was transferred to the Centre as surplus.

RBI’s reserves have been a bone of contention, with the government keen to increase the payout. What has added to the discord in recent years is the Economic Survey pointing out that RBI has higher reserves than other central banks.

In the recent past, RBI has been transferring surplus of around Rs 65,000 crore annually to the government, barring 2017 when its expenditure more than doubled to Rs 31,000 crore. Till 2016-17, the RBI’s expenditure remained below Rs 15,000 crore but shot up due to higher cost of printing currency notes at the time of demonetisation.

In a speech last month, RBI deputy governor Viral Acharya had hit out at the government for seeking higher dividend and cited the example of Argentina, where a similar development took place eight years ago, to argue that the central bank’s autonomy should not be compromised. The issue was one of the key agenda items at the marathon board meeting of the RBI.

===Surplus capital, 2013-18===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F02%2F02&entity=Ar02900&sk=7D9EB8EA&mode=text RBI’s forex sale profit to help bridge deficit, February 2, 2019: ''The Times of India'']

[[File: The Reserve Bank of India’s surplus capital, 2013-18.jpg|The Reserve Bank of India’s surplus capital, 2013-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F02%2F02&entity=Ar02900&sk=7D9EB8EA&mode=text RBI’s forex sale profit to help bridge deficit, February 2, 2019: ''The Times of India'']|frame|500px]]

''To Consider ₹28,000Cr Interim Dividend In Addition To ₹40,000Cr Already Given To Govt''

The volatility in the foreign exchange and bond market is helping the government to bridge some of its fiscal deficit. The Reserve Bank of India (RBI) is understood to have made record profits from selling dollars in the foreign exchange market when the rupee came under pressure.

These profits are likely to be distributed to the government in the form of an interim dividend, which will be considered in the next board meeting of the central bank.

Economic affairs secretary Subhash Chandra Garg said on Friday that the government expects an interim dividend of Rs 28,000 crore from the RBI. This is in addition to the Rs 40,000 crore already received from the central bank during FY19, Garg said in an interaction with the media after the interim budget was announced.

The Rs 28,000-crore interim dividend will be transferred by the RBI before end March 2019. As a result, the interim dividend will help the government ease fiscal pressure as the money will come within the current financial year. The RBI, which follows a July-June financial year, paid about 63% higher dividend than the previous year (2016-17).

Meanwhile, the government has revised dividend or surplus of the RBI, nationalised banks and financial institutions to Rs 74,140 crore from Rs 54,817 crore estimated earlier in the Budget 2018-19. In the next year too, the RBI is expected to be a major contributor to the government’s revenues.

A panel headed by former RBI governor Bimal Jalan is looking at whether the central bank is holding surplus capital, which can be transferred to the government. The panel is expected to submit its report by end-March.

According to Care Ratings MD & CEO Rajesh Mokashi, dividends and profit will contribute highest (50%) to the non-tax revenue.

“The government is expecting higher dividends (11.8% more) by way of surplus transfers from the RBI as the performance of the PSUs has been impacted by nonperforming assets. Other non-tax revenues are slated to grow 8.9% over 34.3% yearon-year in the previous year,” he said. Other non-tax revenues include social, general and economic services provided by the government.

=Dividends=
==2017: Demonetisation, printing of currency: RBI halves dividend ==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=RBI-halves-dividend-to-govt-to-Rs-31k-11082017021025 Mayur Shetty, RBI halves dividend to govt to Rs 31k cr, August 11, 2017: The Times of India]

[[File: RBI dividend to government, 2013-17.jpg|RBI dividend to government, 2013-17; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=RBI-halves-dividend-to-govt-to-Rs-31k-11082017021025 Mayur Shetty, RBI halves dividend to govt to Rs 31k cr, August 11, 2017: The Times of India]|frame|500px]]

'''Demonetisation, Printing Of Currency Take A Toll'''

In a surprise announcement, the RBI said that it has halved its dividend payment to the government to Rs 30,659 crore for 2016-17 from nearly Rs 66,000 crore in each of the previous two years. The lower dividend is due to huge expenses borne by the RBI by way of interest payment to banks as part of its liquidity management exercise and in printing notes following demonetisation.

The dividend amount was decided by the central board of directors, which met to finalise accounts for the year ended June 2016.The board would have also finalised how the central bank deals with the demonetised currency notes that were not turned in before June 2017. However, the RBI is yet to divulge details on whether it has extinguished the currency which has not been deposited.

The halving of dividend will hurt the government's finances. “The lower amount will be a concern since the government's non-tax receipts will be affected. In the Budget, it was assumed that around Rs 75,000 crore would come from RBI, public sector banks (PSBs) and financial institutions compared with a little over Rs 76,000 cr in FY17,“ said Madan Sabnavis, chief economist, CARE Ratings. According to Sabnavis, as PSBs are unlikely to do better than last year and the RBI will be transferring a smaller amount, this will impact the fiscal deficit numbers.“If other conditions remain unchanged, the fiscal deficit can increase from 3.2% to 3.4% this year,“ he added.

Devendra Kumar Pant, chief economist, India Ratings, said the drop in dividend is due to lower earnings due to reverse repo transactions (where the RBI borrows from banks) and high costs incurred in printing of notes. Besides this, the appreciation of the domestic currency vis-a-vis the US dollar led to lower returns in rupee terms. “Firstquarter direct tax collections, if continued in the fiscal, will provide some buffer for central government deficit,“ he added.

The minister of state for finance Arun Meghwal had earlier said that it costs between Rs 2.87 and Rs 3.09 to print the new Rs 500 note and Rs 3.54-3.77 for a Rs 2,000 note. Given these numbers, it would have cost the RBI over Rs 13,000 crore to print fresh currency notes during demonetisation. This is almost thrice the Rs 3,421 crore the RBI spent on printing notes in the previous year. According to economists, when the macro fundamentals are so und, the RBI ends up with weak earnings and, conversely, when the country's fundamentals are under strain, the central bank generates exceptional gains. This is because at times of stress, the RBI tightens liquidity and makes windfall profits lending to banks at high rates.But when the rupee is strengthening, the central bank loses money by buying a falling dollar. The biggest cost to the RBI by far, when the country is facing a problem of plenty, is the cost of impounding surplus liquidity. Banks are sitting on sur plus funds due to absence of credit demand. Soumya Kanti Ghosh, chief economist, SBI, said, “Credit growth has decelerated by Rs 1.5 lakh crore in current fiscal -a historic low.“ He added that given surplus funds, SBI, Axis Bank and Bank of Baroda have reduced the savings bank rate to keep the lending rate low.

Since November, banks have been awash with surplus liquidity thanks to cash being deposited with them.While most of these were slowly withdrawn, a large chunk continued to remain with banks. According to dealers, the surplus liquidity with banks has risen to Rs 3 lakh crore as compared to the RBI's target range of Rs 1 lakh crore.

==2016> 2018==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F08%2F09&entity=Ar02101&sk=6468B053&mode=text At ₹50,000cr, RBI gives govt 63% more dividend, August 9, 2018: ''The Times of India'']

The RBI has transferred a surplus of Rs 50,000 crore to the central government, which is 63% more than last year’s dividend of Rs 30,659 crore. This payout is also 91% of the Rs 54,817-crore dividend income that the government budgeted from the RBI, nationalised banks and other financial institutions in its Budget 2018.

It is likely that the central bank would have generated a higher surplus arising out of foreign exchange operations. The RBI has sold foreign currency assets worth over $20 billion this year, which is reflected in the decline in forex reserves from nearly $400 billion on March 30, 2018 to around $379 billion. The foreign currency assets sold were worth Rs 1.40 lakh crore and would have added to the RBI’s rupee balance sheet and enabled it to pay a higher dividend.

Public sector banks have not distributed any dividend to the government as all but two of them have reported losses. However, insurance companies would have made some payment to the government. Earlier in March, the RBI paid an interim dividend of Rs 10,000 crore at the insistence of the Centre to support fiscal position.

“The central board of directors of the RBI, at its meeting held on August 8, approved the transfer of surplus amounting to Rs 500 billion (Rs 50,000 crore) for the year ended June 30, 2018 to the government,” the central bank said in a statement.

Unlike other financial institutions, the RBI follows a July-June financial year. The dividend payout had shrunk last year as the RBI had to spend a lot of money in printing of new currency notes following demonetisation in November 2016.

=Gold reserves=
==Purchases in 2009, 2018==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F09%2F04&entity=Ar02007&sk=B0770925&mode=text RBI boosts forex kitty with first gold buy in 9 years, September 4, 2018: ''The Times of India'']

The Reserve Bank of India (RBI) has bought nearly 8.5 tonnes of gold in financial year 2017-18, the first purchase of yellow metal by the central bank in almost nine years, a report said.

The RBI held just over 566 tonnes of gold as on June 30, 2018, compared with 558 tonnes as on June 30, 2017, according to the central bank’s latest annual report for 2017-18.

The central bank had last purchased gold in November 2009, when it had bought 200 tonnes of yellow metal from the International Monetary Fund (IMF).

Of over 566 tonnes of gold reserves, about 292 tonnes is held as backing for notes and is shown as an asset of the issue department, and the balance 274 tonnes is treated as an asset of the banking department.

The value of gold held as asset of banking department rose by 11.1% to Rs 69,674 crore as on June 30, 2018, from Rs 62,702 crore as on June 30, 2017.

This increase was primarily on account of depreciation of rupee as against the dollar and the addition of nearly 8.5 tonnes of gold during the year, the RBI’s annual report said.

=Government- RBI relations=
== Why govts want central banks on their side==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F05&entity=Ar02504&sk=671ADF05&mode=text November 5, 2018: ''The Times of India'']

'''Why govts want central banks on their side'''

A country's central bank and its government may not always see eye to eye — the latest rift between the RBI and the Centre is a case in point. But what makes a central bank essential to a country's economy, and what kind of power does it enjoy?

'''Can an economy work without a central bank?'''

Considering the influence of central banks in today’s age, this is a difficult question to answer. Many countries have witnessed a constant tussle between the elected government and their central bank but no modern government has been able to either abolish or significantly curtail the power of their central bank. In the absence of such a bank it is difficult to imagine how a reliable payments system, a stable currency and controlled inflation level could be maintained.

'''What is the role of a central bank?'''

Among the important roles of a central bank is to control the cost of money by changing interest rates. This role itself gives it immense power to stimulate or slow the economy. Apart from this, the central banks — in our case Reserve Bank of India — formulate, implement and monitor the country’s monetary policy. It monitors the financial system by prescribing broad parameters of banking operations to ensure the public has confidence in the system and protects depositors’ interest.

The bank also monitors foreign exchange reserves. It is the only authority that has the right to issue or destroy currency in circulation. The central bank also does merchant banking for the government as well as other banks.

'''How independent is the RBI?'''

Like other central banks, RBI is an independent entity within the government. It is governed by a central board of directors appointed by the government according to the Reserve Bank of India Act. The board is appointed for four years with a governor and up to four deputy governors. There are 10 other directors nominated by the government, two government officials and four non-official directors from local boards. There are also four local boards in Mumbai, Kolkata, Chennai and New Delhi to advise the central board on local matters. Local board members are nominated by

'''Where is the most powerful central bank?'''

While it controls the world’s largest economy, US's Federal Reserve Bank also issues treasury bills to raise money to finance spending. These US securities are bought by other nations and their value is based on the price of the US dollar. If the Fed lowers interest rate and makes dollar cheaper to borrow, the pinch will be felt by all other economies. Similarly, a stronger dollar will benefit countries that hold US securities.

==1935-2016: Govt. vs. the RBI==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F03&entity=Ar00507&sk=05B1245C&mode=text Govt vs RBI: Top FinMin man mocks dy governor, November 3, 2018: ''The Times of India'']

[[File: 1935-2016- tiffs between the govt. and the RBI.jpg|1935-2016: tiffs between the govt. and the RBI <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F03&entity=Ar00507&sk=05B1245C&mode=text Govt vs RBI: Top FinMin man mocks dy governor, November 3, 2018: ''The Times of India'']|frame|500px]]

''Another DG Gives Speech Attacking Centre On Lending''

Hostilities between the Modi government and the Reserve Bank of India remained at heightened levels with a top bureaucrat taking to social media on Friday morning to mock a recent speech of deputy governor Viral Acharya. Hours later, the RBI uploaded a speech another deputy governor, N S Vishwanathan, gave at XLRI Jamshedpur earlier this week. In his speech, Vishwanathan attacked the government’s arguments for easing capital requirements, saying that it would result in banks being strong only in a “make-believe” manner.

Economic affairs secretary Subhas Chandra Garg, the finance ministry’s point person for managing ties with the RBI, fired the first salvo when he took aim at Acharya’s comment that “governments that do not respect central bank independence will sooner or later incur the wrath of financial markets”.

'''RBI dy guv against govt’s bid to push bank credit'''

Rupee trading at less than 73 to a dollar, Brent crude below $73 a barrel, markets up by over 4% during the week and bond yields below 7.8%. Wrath of the markets?” economic affairs secretary Subhas Chandra Garg tweeted on Friday.

Ironically, Garg’s very public dig at governor Urjit Patel’s hand-picked deputy came just two days after the finance ministry issued a carefully-worded statement that among other things signaled its displeasure with the RBI for airing its differences with the government.

Vishwanathan, who unlike Acharya is a career central banker, appeared to be at odds with the government’s push to accelerate bank credit when he indicated that higher growth in lending was not desirable. “It may be noticed that in the past, high levels of credit growth due to ‘supply push’ have resulted in high corporate leverage and consequent NPAs in the banking system,” he said.

“We must guard against any push for dilution of standards in the name of aligning them with international benchmarks because that will be cherry-picking and will result in our banks being strong in a make-believe sense and not in reality.” This appeared to be a response to financial services secretary Rajiv Kumar’s statement last week that minimum common equity (CET) Tier I ratio as prescribed by RBI stands at 5.5% as against 4.5% under Basel III norms. A relaxation of the capital requirement to Basel III levels would enable bank to lend up to Rs 6 lakh more.

But, according to the deputy governor, current levels of provisions maintained by banks may not be enough to cover the expected losses due to defaults, and hence adequate buffers must be built to absorb the expected losses which are under-provided. Vishwanathan said that bank credit was already growing at 14% year on year in line with GDP growth. Within this, bank loans to NBFC during this period grew 48.3%.

According to Vishwanathan, international capital norms have been designed based on internationally observed recovery rates. However, the loss given defaults are far more than those observed internationally. He also shot down arguments that some defaults are caused by external circumstances and that regulations should treat them differently based on the reasons behind them. “This is a fallacy. There are two issues here: recognition and resolution. The recognition of default or accounting for deterioration in the quality of asset should be independent of the reasons for such default or deterioration.”

===When mediating PM, diplomatic governors averted crisis===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar02013&sk=A0864585&mode=text Mayur Shetty, December 11, 2018: ''The Times of India'']

Public statements and disclosures by former governors — Y V Reddy, D Subbarao and Raghuram Rajan — in their writings have shown that there have been disagreements between the finance ministry and the RBI. But none of these disputes ever boiled over to a situation leading to the governor’s resignation.

According to central bank insiders, in the past governors have adopted a strategy of convince and compromise. Also, in the case of differences that arose during the 10-year UPA government, then Prime Minister Manmohan Singh, himself a former governor, helped in brokering peace between the RBI and the finance ministry. Even though previous governors have been bureaucrats, after coming to the RBI it is the chair that has taken over. Both Reddy and Subbarao have been extremely strong votaries of independence of the central bank after taking charge as governors. However, despite their independence they have acknowledged that the finance minister is senior to the RBI governor. In the case of Patel, his finance minister Arun Jaitley had taken a fourmonth break between May and August — a time when differences with the government were boiling over.

Additionally, in the past the differences were in the area of interest rates that has ceased to be an issue after the creation of the monetary policy committee (MPC), which coincided with the appointment of Patel.

Past governors have also managed to handle their differences with the finance ministry using their personal connection with finance ministry officials. Former governors, Reddy and Subbarao, were both former bureaucrats and had many friends in the finance ministry. Rajan, though not a bureaucrat, had worked in Delhi as chief economic adviser where he was prepped for the position of RBI governor.

In the case of Patel, his engagement with the finance ministry was two decades earlier as deputy to the IMF India representative. During this period, he build a friendship with Manmohan Singh.

There are some insiders who feel that the government’s choice of appointing outside economic experts as governor is a failed experiment as they have very little skin in the game.

Raghuram Rajan had made it clear that he had a job at Chicago Booth waiting for him when his term ended. Similarly, many expect that Patel would pursue academic interests after his stint as governor.

==1956-57: Pt. Nehru vs. Sir Rau==
[https://timesofindia.indiatimes.com/india/nehru-letter-to-rbi-may-give-modi-government-ammunition-in-urjit-row/articleshow/66503739.cms Sidhartha, November 5, 2018: ''The Times of India'']

The traditionally fraught nature of government-RBI relations goes back to the early days of the central bank when Sir John Osborne Smith resigned his governorship in 1937 following differences with the colonial government over interest and exchange rates.

But it is Jawaharlal Nehru’s stormy exchanges with Sir Benegal Rama Rau, leading to his resignation as RBI governor, that has tickled the interest of people in the finance ministry – and may provide them with an effective counter to the Rahul Gandhi-led Congress’s attack on the government for undermining the autonomy of the central bank.

Rau, a civil servant, was the fourth governor of RBI and quit in January 1957 after seven and a half years in the saddle when Nehru sided with finance minister TT Krishnamachari and made it clear that RBI was part of “the various activities of the government”.

Rau had accused TTK of “rude behaviour” over differences that began over a Budget proposal. TTK had referred to RBI as a “section” of the finance ministry and described it as “reserved”, as well as expressed doubts in Parliament “as to whether it is capable of doing any thinking”.

In a letter to Rau, India’s first Prime Minister and Rahul Gandhi’s great-grandfather, wrote: “It (RBI) has to advise government, but it also has to keep in line with government.” He suggested the governor could resign if he thought that it was not possible to continue; Rau put in his papers a few days later.

Nehru said it would be “completely absurd” if the central bank followed a different policy because it did not agree with the government’s objectives or its methods.

“You have laid stress on the autonomy of the RBI. Certainly it is autonomous, but it is also subject to the central government’s directions…. Monetary policies must necessarily depend upon the larger policies which a government pursues. It is in the ambit of those larger policies that the RBI can advise. It cannot challenge the main objectives and policies of government,” asserted Nehru.

“When you talked to me I pointed out to you that it was for the central government to lay down policies and the RBI could not obviously have policies contrary to those of the central government. You agreed with this. And yet I find in your memorandum a different point of view,” he added.

The RBI believed that TTK’s Budget proposal would effectively push up interest rates and forwarded a resolution of the central board. “The board requests the government to consult RBI in advance on all matters which significantly affect the monetary structure and policy,” the board said on December 12, 1956.

The same day, Nehru wrote to the governor pulling him up for his “improper approach” which was seen to be “agitational” against the Centre.

A fortnight later, Rau responded to Nehru’s letter saying that despite differences on several issues, nothing had leaked out from RBI. He then wrote that the government could reject RBI’s advice though it should be given an opportunity to place all facts and its view before a decision was taken on “technical and sometimes complicated monetary issues”.

The then governor also took “strong exception” to some of Nehru’s comments on not supporting government policies and said the consultations over the Budget proposal were inadequate.

In the Budget, the government had proposed to increase the stamp duty on an instrument used by lenders to get loans at a discount to RBI’s key policy rate – the bank rate. RBI argued that the higher stamp duty, which it said was decided without prior consultation, would push up the bank rate by half a percentage point.

Parallels are being drawn between the developments six decades ago and the current power tussle between the Centre and RBI – although in that instance, the central bank had gone out on a limb to criticise a Budget proposal whereas it’s the government that is now unhappy with the RBI for not taking on board its concerns about the economy.

While most governments and the central bank have had differences over issues ranging from interest rates to regulations, the current rift has widened to an extent that the finance ministry has sought formal consultations with the governor in what is one step short of invoking Section 7 of the RBI Act, a provision that has never been used.

The government has been pushing RBI to address its concerns related to providing support to non-banking finance companies, ravaged by the impact of defaults by IL&FS, in addition to addressing the credit needs of small businesses and reviewing the prompt corrective action (PCA) framework dealing with weak banks.

==2014, PM Manmohan Singh: Governor must heed govt==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F07&entity=Ar00308&sk=C7215202&mode=text Guv must heed govt, Manmohan said in ’14, November 7, 2018: ''The Times of India'']

The dynamic between the RBI and the government is one of give and take but if the finance minister insists on a certain course of action, his view will need to prevail, former PM Manmohan Singh has said in his daughter Daman Singh’s book “Strictly Personal: Manmohan and Gursharan”.

Recalling his tenure at the central bank, Singh says, “There is always give and take. I had to take the government into confidence. The governor of the Reserve Bank is not superior to the finance minister. And if the finance minister insists, I don’t see that the governor can refuse, unless he is willing to give up his job.”

Singh’s comments in the 2014 book are significant in the context of tensions between the Centre and RBI governor Urjit Patel amid heated commentary on the autonomy of the central bank. Singh says that after recording a divergent point of view, the governor can insist on directions from the government which would then need to be followed.

'''Singh speaks of Caparo, tension with then FM Pranab Mukherjee'''

Singh speaks of tensions with then finance minister Pranab Mukherjee over the move of the Londonbased Caparo group, in which business magnate Swraj Paul and his family held a majority share, to buy shares of Escorts Group. The UK-based business initiated the purchase of shares even before the RBI granted it permission. The RBI informed the government that it intended to reject Caparo’s application.

The book notes that the government of the day, however, did not have any misgivings and asked the RBI to grant permission, which it did. The matter went to court and the Supreme Court finally held the government’s order to the RBI and the permission granted by the central bank to be valid.

Asked about the case, Singh says, “Well, it was a situation that brought me in conflict with the government. I have given the view of the Reserve Bank, but said the government could always overrule it. This was a government scheme... Ultimately, it was resolved by the government giving a directive to the RBI.”

Singh makes it clear that the government would have liked the RBI to have acted on its own with regard to the application under a portfolio investment scheme for NRIs. But he said the RBI did not act until the explicit approval of the Cabinet Committee on Political Affairs was conveyed to the central bank. In a second case the book refers to, Singh had strong reservations over the application of the Bank of Credit and Commerce International to open a couple of branches in India. Permission was almost granted when Charan Singh was PM and was finally cleared by the Congress government in 1983.

The government, unhappy with the RBI’s power to issue bank licences, sought to take these powers away. “I sent my letter of resignation to Pranab Mukherjee and the PM. Later, I managed to persuade Mrs Gandhi that the Cabinet decision was not proper... they dropped the idea,” Singh says.

==10 flash points between Govt., RBI: 2017-18==
[[File: 2017, 2018- tensions between the Government and the RBI under Patel, a chronology; 2019, Nov- The RBI’s Central board of directors.jpg|2017, 2018: tensions between the Government and the RBI under Patel, a chronology <br/> 2019, Nov: The RBI’s Central board of directors <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F19&entity=Ar02902&sk=637D344F&mode=text Sidhartha & Mayur Shetty November 19, 2018: ''The Times of India'']|frame|500px]]

[[File: 10 flash points between Govt., RBI- 2017-18- Part I.jpg|10 flash points between Govt., RBI- 2017-18- Part I <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F30&entity=Ar02205&sk=E9E288E4&mode=image October 30, 2018: ''The Times of India'']|frame|500px]]

[[File: 10 flash points between Govt., RBI- 2017-18- Part II.jpg|10 flash points between Govt., RBI- 2017-18- Part II <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F30&entity=Ar02205&sk=E9E288E4&mode=image October 30, 2018: ''The Times of India'']|frame|500px]]

'''See graphics''':

''2017, 2018: tensions between the Government and the RBI under Patel, a chronology <br/> 2019, Nov: The RBI’s Central board of directors''

''10 flash points between Govt., RBI- 2017-18- Part I''

''10 flash points between Govt., RBI- 2017-18- Part II''

===Points of friction===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F02&entity=Ar00508&sk=4933A620&mode=text Sidhartha, ‘RBI’s refusal to engage forced govt to mull extreme legal step’, November 2, 2018: ''The Times of India'']

[[File: Friction between the Government and the Reserve Bank of India- Part I.jpg|Friction between the Government and the Reserve Bank of India- Part I <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar02003&sk=B8EACFF5&mode=image December 11, 2018: ''The Times of India'']|frame|500px]]

[[File: Friction between the Government and the Reserve Bank of India- Part II.jpg|Friction between the Government and the Reserve Bank of India- Part II <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar02003&sk=B8EACFF5&mode=image December 11, 2018: ''The Times of India'']|frame|500px]]

'''See graphics''':

''Friction between the Government and the Reserve Bank of India- Part I''

''Friction between the Government and the Reserve Bank of India- Part II''

'' ‘Guv Patel, Team Not Happy With An Assertive Board’ ''

The Modi government was driven to consider the extreme step of invoking the never-before-used Section 7 of the RBI Act by central bank governor Urjit Patel’s reluctance to engage with stakeholders, according to highly placed sources in New Delhi. “He was scarce and unavailable to bankers, industry and market players even on matters of pressing concern. We were left with no choice. It was the only way we could bring the central bank to the table,” one person close to the development told TOI.

This confirms TOI’s exclusive report of Monday that tensions between the Patel-led RBI and the government had “come to a head” because the two were not only not able to see eye-to-eye on a host of issues, there had also “been an almost complete breakdown in communication” between them.

'''RBI didn’t make public decisions taken at last board meeting'''

The move could be significant as a consultative process sets the stage for a government to issue directions to the RBI if there is no agreement,” the report added.

No government has invoked Section 7 of the Reserve Bank of India Act of 1934 in the central bank’s 83-year history. The Section says, “The central government may from time to time give such directions to the bank as it may, after consultation with the governor of the bank, consider necessary in public interest.”

The Section 7 reference to RBI was the first formal step towards discussing a troika of concerns with RBI — credit flow, liquidity, and problems facing medium and small businesses — failing which the central bank would have to face the “legal instrument of last resort”, which would be tantamount to a vote of no-confidence in the gover nor.

The finance ministry issued a carefully-worded statement saying the government and the RBI should be “guided by public interest and the requirements of the Indian economy”.

The government had hoped that RBI would go by the board’s collective view instead of the governor and his deputies charting the course of the financial sector by themselves. But the central bank — which also doubles up as regulator for banks and some market segments — did not seem to go by the view of the directors. Among the 18 directors on the central board, 11 are independent, with five RBI officials and two finance ministry bureaucrats making up the complete cast.

At last week’s board meeting, it was decided that four decisions that had been taken would be made public. However, RBI, which it now appears, had reluctantly acquiesced into the majority decision, decided otherwise and made no disclosure about the “unanimous” calls. The radio silence came as a surprise because the directors had left the meeting convinced that RBI officials were on the same page.

At the marathon meeting, which had over 20 items on the agenda, the RBI brass had suggested that the issues that could not be decided, would be taken up at next meeting. The meeting was to be held post-Diwali. Accordingly, Patel verged on announcing a specific date but was stalled in his tracks by a top RBI official, who suggested that it was time to wrap up. Thus, the date remained undecided.

In fact, RBI’s announcement of November 19 as the date when the board would meet next, came only after some independent directors, frustrated by the delay, forced the management on Wednesday to take a decision, said sources. While the government has faced flak for nominating S Gurumurthy and Satish Marathe on RBI’s central board, as well as removing Nachiket Mor, people close to the decision said the move was necessary and aimed at turning it from merely being a rubber stamp to a body which could hold its own while engaging with the bank leadership.

This was a significant turn. For over the years, it was the Central Committee of the Board which had become the “real” decisionmaking body with the board starving itself of powers to regulate by delegating those to the CCB.

The sudden power shift, with the board asserting itself and demanding a say, does not seem to have gone down well with the RBI brass, prompting howls of protest about government interference, said a top official who has been watching the evolving dynamics on Mint Road.

Sources said that at the last board meeting, financial services secretary Rajiv Kumar made a detailed presentation on the need to align Indian standards with global norms instead of stiffening them unnecessarily. The suggestion was an attempt to convince RBI to tweak its rules for capital and PCA. There were also complaints about liquidity shortage and Gurumurthy flagged the concern about inadequate fund availability for small businesses.

While most of the board, including corporate sector representatives agreed with the view, RBI representatives, supported by some of the independent directors, did not agree.

===2017, 2018: tensions under Patel ===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F29&entity=Ar00302&sk=ECF78AAA&mode=text Sidhartha & Mayur Shetty, Tensions between Patel-led RBI, govt coming to a head?, October 29, 2018: ''The Times of India'']

In New Delhi and Mumbai’s corridors of power and money, the growing schism between the government and the RBI, and particularly its governor Urjit Patel, has been the subject of much talk since the early months of this year.

During this time, not only have the two not seen eye-to-eye on a host of issues, there has been an almost complete breakdown in communication between the government and RBI.

The simmering differences have now come to a head with RBI’s deputy governor Viral Acharya – who is widely seen to have been brought in by Patel from his professorial position in New York University – on Friday clearly hinting at government interference and emphasising the need for autonomy (TOI had front-paged his remarks in its October 27 edition).

The tension has triggered fevered speculation about Patel’s fate. Not only does he appear highly unlikely to get an extension beyond the threeyear term that ends next September, questions have arisen over his continuance. Patel did not respond to a message from TOI.

Some people in the NDA government have gone so far as to acknowledge in private that “even Raghuram Rajan was better than this” — and Patel’s predecessor didn’t leave on the best of terms.

''Govt, RBI clashes on at least 6 issues in ’18 alone''

A person in the NDA government told TOI a few months ago, “After Rajan, it’ll look bad if Patel is asked to go.” And people who have a sense of Patel’s thinking say that he knows the government won’t keep him on beyond his current term, so he doesn’t really care about being in its good books.

In 2018 alone, there have been at least half-a-dozen issues on which the two have taken opposing stands. While the spat began with the government unhappy with the inflation-focused RBI for not cutting interest rates – and even raising them – it spilled over into regulation, something the central bank believes is its exclusive domain.

RBI’s February 12 circular on classification of non-performing assets and norms of loan restructuring was the next flashpoint. The government saw it as overly harsh, and indeed it drove all but two staterun lenders into the red.

Around the same time, as the Nirav Modi fraud broke, the government hit out at RBI on supervision, drawing an almost-immediate rebuttal with Patel seeking more powers to oversee public sector banks so that they are at par with their private sector peers.

In addition, the government has been insisting that RBI step in to provide relief to non-banking finance companies (NBFCs), which are grappling with a cash crunch after IL&FS defaulted on repayments. The central bank has refused to play ball.

What has also irked the central bank brass is the way in which Nachiket Mor was removed from the RBI board more than two years before his term was to end without formally informing him. Mor’s removal was seen to be linked to his vocal opposition to the government's demand for a higher dividend.

In his strongly worded speech late last week, RBI deputy governor Viral Acharya said, "Governments that do not respect central bank independence will sooner or later incur the wrath of financial markets, ignite economic fire, and come to rue the day they undermined an important regulatory institution".

Patel is said to have virtually been incommunicado for the past three days, heightening suspense ahead of Monday's meeting of the RBI board, the second such interaction in less than a week. Last week’s meeting was stormy by most accounts with recently-nominated director and SJM activist S Gurumurthy seeking RBI’s intervention to help small businesses, while government nominees made a detailed presentation on the need to bring capital norms in line with global standards instead of making them stiffer. The change is seen to be crucial to get weak banks that are now under RBI’s prompt corrective action out of the classification. This would lift some of the curbs on their lending and expansion.

In remarks made on Saturday that were seen to be in response to Acharya’s, although he didn’t name RBI, finance minister Arun Jaitley said regulators need to have wide-ranging high quality discussion with all stakeholders. “I think, for any regulatory mechanism, stakeholder consultation has to be of a very high quality, which will probably lead to a revisiting of traditional thoughts and opinions. And that’s why, (when) several regulators now publish their approach papers or tentative drafts, they hold hearings, meet individuals, meet groups of stakeholders together and improve upon what’s being said.”

A separate payments regulator has been another friction point with RBI stating its position publicly on why it did not support the move. In fact, it went to the extent of releasing its dissent note on a separate regulator on its website.

People in the government said the tension should not be seen through a government versus regulator prism. They argued that the onus of taking the board along rests with the governor.

They also denied it was trying to encroach on RBI’s turf, but added that institutional autonomy should be a means for achieving faster growth rather than an end in itself.

===2018, Nov: The appearance of a truce===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar00314&sk=1E299772&mode=text Sidhartha, RBI resisted acting on Nov board deal, December 11, 2018: ''The Times of India'']

In the hours that followed the marathon November 19 RBI board meeting, there was a conscious effort – especially by the external directors and government nominees – to paint a picture of cordiality. The impression sought to be conveyed was that the RBI had come around to the government’s way of thinking on several key issues.

But the ceasefire proved ephemeral. A committee which was to be constituted by the RBI and government to review RBI’s capital reserves has yet to see the light of day.

Similarly, when the RBI’s Board for Financial Supervision (BFS) met last week, it did not consider the government’s demand for a review of the PCA (prompt corrective action) framework.

'''RBI-govt communication breakdown again evident'''

Many in the government believed that RBI, led by governor Urjit Patel, was “circumventing” board decisions despite the fact that they had been communicated through a formal statement after the November 19 meet. They had earlier pointed out that Patel and his deputies had abruptly wrapped the October 23 board meeting and refused to disclose even the decisions on which there had been an apparent consensus.

That Patel was not at ease with the government’s push for a review of the ECF was evident from his statement to a parliamentary panel (reported by TOI on November 27) that the RBI’s current level of reserves were necessary as a buffer against international volatility and to maintain creditworthiness.

At the next board meeting of the central bank on December 14, the government was expected to ask for a relook at RBI governance structure, with greater oversight by the board. There was a view in the government that the RBI had in the past kept the board out of the picture and taken key decisions in committees packed with hand-picked members.

While breaking the story about the stand-off between the RBI and the government TOI had said there had been a “complete breakdown in communication” between the two.

===The big issues: from IBC to Sec 7===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar02000&sk=F4E39ABC&mode=text Clash course: From IBC to Sec 7, December 11, 2018: ''The Times of India'']

''RBI’s Feb 12 Diktat That Patel Wouldn’t Dilute Put Govt, PSBs On Sticky Wicket''

A key reform measure — the Insolvency and Bankruptcy Code (IBC) — was the trigger for the RBI’s February 12 circular, which turned out to be an inflection point in the relationship between the government and the central bank.

On February 12, the RBI did away with all restructuring scheme, which effectively gave borrowers more time to repay. The central bank’s rationale was that now there was a new law that enables banks to recover money and there was no need to kick the can further down the road. This put the government — the owner of public sector unit (PSU) banks — in a spot as PSU banks now needed more capital then envisaged. Loans had to be classified as defaults before being referred under the IBC and bad loans did soar as delayed repayments were not condoned. While the Centre did not attack the February 12 circular directly, it used the Nirav Modi scam, which broke soon after, to criticise the central bank.

Patel, in a speech at Gandhinagar in March 2018, hit out at the government stating that “success has many fathers, failures none. Hence, there has been the usual blame game, passing the buck, and a tonne of honking”. He then listed out seven legislative provisions that ensured that the RBI did not have much of a say in PSU banks. While the February 12 circular was a reform measure aimed at cleaning bad loans, its timing turned out to be disastrous. Banks were hit by a triple whammy — bond losses due to rising rates, over Rs 20,000-crore provision for Nirav Modi/Gitanjali accounts and additional provisions for non-performing assets (NPAs). Overall PSU bank losses crossed Rs 60,000 crore.

Many in the finance ministry were upset as the high NPAs triggered the imposition of prompt corrective action (PCA) on half the public sector banks and scuppered all plans of boosting growth through increased lending. Ministry officials compared the RBI action on PSU banks of forcing a patient to run a marathon when he was not fully out of the ICU.

What spoiled relations further was Patel’s refusal to engage with ministry officials or even other ministers. Nitin Gadkari, minister of road transport and highways, said in a forum addressing businessmen that his personal experience of dealing with the RBI was not good. Other ministers are known to have complained after filing to to get an audience with the governor.

It was ultimately the differences over NPA classification that led the government to the path of Section 7 of the RBI Act, which empowers the government to give directions to the central bank. When the power producers challenged the RBI’s circular in the Allahabad high court, the government which was a party said that it did not have any objection. It was at this point that the court observed that the government could consider giving directions to the RBI on the issue. While the government did use the Section 7 threat, it was on a host of issues and not just non-performing assets.

=== Dec/ Gov. Urjit Patel resigns ===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar00311&sk=44E0E5AB&mode=text Mayur Shetty, Sidhartha & Surojit Gupta, After ‘truce’, Urjit stuns govt; is 1st guv post-reforms to quit RBI, December 11, 2018: ''The Times of India'']

[[File: In Dec 2018, Urjit Patel resigned, becoming independent India’s second governor to quit before the expiry of his term.jpg|In Dec 2018, Urjit Patel resigned, becoming independent India’s second governor to quit before the expiry of his term <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar00311&sk=44E0E5AB&mode=text Mayur Shetty, Sidhartha & Surojit Gupta, After ‘truce’, Urjit stuns govt; is 1st guv post-reforms to quit RBI, December 11, 2018: ''The Times of India'']|frame|500px]]

'''What''': Reserve Bank of India (RBI) governor Urjit Patel resigned from the post on Monday citing ‘personal reasons’. His term was to end in September 2019. One of RBI’s deputy governors may take charge as the interim head till government finds a successor. The names doing the rounds for the next governor include Subir Gokarn (executive director IMF), SC Garg (economic affairs secretary) and Rajiv Kumar (secretary, financial services).

'''History''': Patel is independent India’s second governor to quit before the expiry of his term over differences with the finance minister. Benegal Rama Rau, RBI’s second governor, had quit in 1957 after complaining about ‘rude’ finance minister TT Krishnamachari. RBI’s first governor, Osborne Smith, an Australian, had also quit in 1937 for not toeing the British government line.

'''Why'''? Differences with the Centre over RBI’s decisions and its functions may have prompted the resignation. Government and RBI were not on the same page (and the differences were public) on issues like the use of RBI’s surplus reserves, handling of weak banks, funds for shadow banks, and interest rates. For the first time in history, the government had invoked its powers to instruct the central bank on certain issues. A sudden overactive RBI board (filled with government nominees), which used to be only an advisory body, could be another factor. “This should be seen as a statement of protest,” said former RBI governor Raghuram Rajan.

'''So what'''? It’s not normal. Patel is the first governor since the 1990s to have quit before completing his term of three years. Raghuram Rajan says, “All Indians should be concerned about Governor Patel's resignation.” It’s not a good sign for RBI’s autonomy. An independent central bank is a check on the government, who may be keen to push for an easier way to prosperity for short-term gains. The move will also impact foreign investors’ perception of the Indian economy.

'''Why now'''? There are various theories doing the rounds. Theory 1: A board meeting was slated for December 14 in which he would have been forced to endorse decisions he didn’t favour. Theory 2: He offered to quit on November 9, the day he met PM, but was asked to stay till polls.

=Issues=
==2016/ Questions Post-Demonetisation ==
[http://indiatoday.intoday.in/story/demonetisation-rbi-banks-atm-modi-cash-crunch/1/834876.html Usha Thorat , The promise to pay the bearer “India Today” 15/12/2016]

"The RBI's responsibility is to ensure enough clean currency notes in the denominations required for day-to-day transactions in all parts of the country," said former deputy governor of the Reserve Bank of India,Usha Thorat.

There are many questions people are asking on the demonetisation move and the currency situation in the country. Some of the top-of-the-mind ones are quoted below, and these are my answers:

How does the RBI decide how much currency to print? What say does the Centre have in such a decision?

The RBI's responsibility is to ensure enough clean currency notes in the denominations required for day-to-day transactions in all parts of the country. The RBI makes an annual assessment of the demand for currency. Currently, currency constitutes about 12 per cent of GDP. Hence if the pace of digitisation is the same as the growth in GDP, currency demand should be at least equal to GDP growth (in nominal terms) unless we are pushing for a higher pace of digitisation. Also, seasonal factors affect currency demand-we witness higher demand during harvesting time, festival time and even election time. Finally, there is replacement demand, i.e., soiled notes have to be taken out, and good, clean notes put back in circulation. After making the estimate and deciding on the denomination-wise requirement, indents are placed with the note presses. This exercise is done in consultation with the Government of India.

Why couldn't the RBI have printed notes faster? If the Indian presses couldn't cope with the print load, why not do it abroad?

The trade-off is between ensuring secrecy and having sufficient time to print and stock for remonetisation. The reports seem to suggest that 2 billion notes of Rs 2,000 were got ready prior to announcement. Against notes in circulation of over 15 billion pieces of Rs 500 and 6 billion of Rs 1,000, the annual supply from both the presses together was one-third in each of these two denominations in the past two years. Since the announcement, it is presumed the note printing presses have stepped up production of the Rs 500 and Rs 100 notes. Importing notes to remonetise could be thought of, but the capacity to print currency notes globally is limited and restricted to a few companies. Further, there would be considerable lead time involved. It may not serve the purpose.

What was the total cash in circulation prior to demonetisation? What was the amount held as cash reserve ratio (CRR) by banks and the RBI? And who holds it, and is it held in the form of cash?

Prior to demonetisation, currency or cash in circulation (as on November 4) was Rs 17.7 lakh crore; as on November 25, the figure dropped by Rs 6.1 lakh crore to Rs 11.6 lakh crore. Currency in circulation is a liability of the RBI. It is held either by the public or by banks that have some currency in their vaults; the latter forms a very tiny part of currency in circulation. Banks do not hold cash reserves in the form of currency-these are held as deposits with the RBI and are reflected as liabilities on the RBI balance sheet.

How does the RBI invest its reserves? What does it do with the profit it generates from this?

The RBI earns income from its investments in various assets. The major component of the RBI's assets-roughly 72 per cent-represents the foreign currency assets held in permitted investments abroad. Gold constitutes four per cent of the RBI's assets while Government of India securities account for 22 per cent. In 2015-16, the RBI income was Rs 80,870 crore, of which Rs 74,924 crore was interest income. Interest on foreign securities accounted for 32.5 per cent of interest income and that on government securities 57.5 per cent. Section 47 of the RBI Act states that after making provisions for bad/doubtful debts, depreciation in assets, contribution to the staff and superannuation fund and for all matters for which provisions are to be made by or under the Act or that are usually provided by bankers, the balance of the bank's profits is to be paid to the Central government. Printing of currency notes, employee costs and agency charges (paid to banks to conduct government business) accounted for 84 per cent of RBI expenditure in 2015-16. The surplus profits transferred to the government for the year was Rs 65,876 crore and represented 99.99 per cent of gross income less expenditure.

At the end of the demonetisation drive, what happens to the extinguished cash? Does it hand over this money to the GoI to spend as it wishes or retain it as profit after lessing the cost to print new notes?

At the end of the demonetisation drive, the currency notes returned to the RBI will be shredded, presumably after checking for fakes. The RBI's supply of notes to the public may or may not be equal to what was in circulation before the November 8 measure. While restrictions cannot be placed indefinitely on cash, temporary limits can be justified citing the time taken to print the required amount of currency. Regarding the RBI's liability on demonetised notes that have not been exchanged/deposited in bank accounts, the central bank governor, in a recent press conference, stated that it continues in the bank's balance sheet as of now. This is because the last date for surrender at the RBI counter has not yet been notified (March 31 was mentioned as a date in the PM's speech). There is a view that the RBI's liability ceases only when the last date for exchange at the bank's counter is notified through a legislative process. At such a juncture, to the extent liabilities are extinguished, assets could be contracted through retirement of government debt held by RBI and/or creating a reserve at the bank to the same extent. It may not be prudent to transfer the amount to the government without assessing the macroeconomic implications, and the monetary conditions required, for achieving the inflation target set by the RBI.

Are the new currency notes harder to counterfeit?

One of the objectives of demonetisation is to guard against counterfeiting. Several security features are built into the notes to prevent counterfeiting. The government has announced that the new notes contain several new features that were not there earlier and would be difficult to forge. Other measures taken by the RBI to enable detection of forged notes are to improve awareness among the lay public on how to detect forged notes and to encourage shops and retail outlets to instal note-sorting machines. All banks are mandated to sort out the notes received by them over the counter through a note sorting machine that can detect forgery and ensure that they issue only genuine notes back into circulation.

Usha Thorat is a former deputy governor of the Reserve Bank of India

=Monetary Policy Committee, 2016=
[http://www.thehindu.com/business/Economy/centre-notifies-amended-rbi-act-to-usher-in-monetary-policy-committee/article8780360.ece ''The Hindu''], June 28, 2016

The Centre brought the Monetary Policy Committee (MPC) one step closer to reality by notifying the changes made to the Reserve Bank of India (RBI) Act in June 2016.

The six-member Committee — tasked with bringing “value and transparency to monetary policy decisions” — will comprise three members from RBI, including the Governor, who will be the ex-officio chairperson, a Deputy Governor and one officer of the central bank.

'''Composition'''

The other three members will be appointed by the Centre on the recommendations of a search-cum-selection committee to be headed by the Cabinet Secretary.

“These three members of MPC will be experts in the field of economics or banking or finance or monetary policy and will be appointed for a period of four years and shall not be eligible for re-appointment,” according to the statement.

The Committee is to meet four times a year and make public its decisions following each meeting.

[[Category:India |R ]]
[[Category:Economy-Industry-Resources |R ]]

[[Category:India |R ]]
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[[Category:India |R ]]
[[Category:Economy-Industry-Resources |R ]]

=Policy reviews=
2014: ''' RBI shifts to bi-monthly policy review '''

TIMES NEWS NETWORK

[http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2014/03/12&PageLabel=25&EntityId=Ar02509&ViewMode=HTML ''The Times of India'']

Mumbai: The Reserve Bank of India will shift to a system of announcing its policy statement bi-monthly with the first such policy being announced on April 1, 2014. Bankers widely expect RBI to hold on to rates given that pressure on inflation is easing and the rupee has also been firming up.

Until the mid-90s, RBI had only two monetary policy reviews a year. After Bimal Jalan took charge as governor in 1997, he introduced quarterly reviews. His successor Y V Reddy introduced a mid-quarter review, which resulted in an announcement every 45 days.

A panel headed by RBI deputy governor Urjit Patel had recommended that the central bank monetary policy committee meet every two months to review rates.

=Reserves=
==What is the appropriate level of reserves?==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F16&entity=Ar02414&sk=A414CAD4&mode=text November 16, 2018: ''The Times of India'']

'''HOW MUCH RESERVES ARE ENOUGH FOR RBI?'''

RBI has accused the govt of trying to raid its coffers to bolster its revenues, which is one of the flashpoints in high-profile turf battle. The finance ministry has rejected the claim and suggested that there is a need to discuss how much capital RBI needs to deal with contingencies

'''Clarification'''

The Centre clarified that it wasn’t going to raid Reserve Bank of India’s reserves for Rs 3.6 lakh crore of ‘free money’ but it also said that it was in discussion to fix ‘appropriate economic capital framework’ of the central bank

'''Conditions apply'''

The framework the government is talking about is basically about how much capital RBI needs for its operations and how much of the surplus it should pass on to the government. This essentially means that Centre may not have asked for a specific amount (Rs 3.6 lakh crore) but it wants to ‘fix’ the process and that may end up giving it even more than that

'''Why fix?'''

The government believes that RBI is sitting on much higher reserves than it actually needs to tide over financial emergencies that India may face. Some central banks around the world (like US and UK) keep 13% to 14% of their assets as a reserve, compared to RBI’s 27% and some (like Russia) more than that. Each central bank assesses its risk and reserve requirements according to its past experience and future likelihood of the scale and kind of crisis

'''Old problem'''

Economists in the past have argued for RBI releasing ‘extra’ capital that can be put to productive use by the government. Former chief economic adviser Arvind Subramanian had argued for it (he had mentioned Rs 4 lakh crore). The Malegam Committee estimated the excess (in 2013) at Rs 1.49 lakh crore

'''How much?'''

RBI’s held total assets worth Rs 36.17 lakh crore on June 30 on its balance sheet. At 27% of this, the central bank would have around Rs 9.7 lakh crore as reserves. If it were to bring it down to 14% as the government probably wants, it would be left with about Rs 5 lakh crore. That means an excess capital of Rs 4.7 lakh crore to be handed over to the government

'''Why now?'''

With a general election looming early next year, analysts believe the cash-strapped government is trying to stimulate the economy with a big public spending spree to woo voters, says a report

'''What next?'''

The RBI governor, Urjit Patel, some say, has two options: to agree to his employer (the government) or leave the job. RBI deputy governor, in his (now controversial) speech, had referred to the resignation of Argentina’s central bank head for a similar reason of refusing government’s order to transfer the central bank’s reserve to pay foreign debt

==As in 2018, Mar==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F20&entity=Ar02103&sk=6959637B&mode=text Mayur Shetty, RBI saves its current reserves, but govt expects more next year, November 20, 2018: ''The Times of India'']

[[File: RBI's reserves as on March 31, 2018.jpg|RBI's reserves as on March 31, 2018 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F20&entity=Ar02103&sk=6959637B&mode=text Mayur Shetty, RBI saves its current reserves, but govt expects more next year, November 20, 2018: ''The Times of India'']|frame|500px]]

The Reserve Bank of India (RBI) has managed to protect its Rs 9.7-lakh-crore reserve kitty with its board agreeing to have a panel determine how much capital it needs to maintain and how much can be distributed from future surplus to the government. The Centre has also not lost as prospects of a higher share of future surplus allows it to budget for a larger chunk of revenues from the central bank in its ‘Vote on Account’ for next year.

“The RBI board decided to constitute an expert committee to examine the Economic Capital Framework (ECF), the membership and terms of reference of which will be jointly determined by the government and the RBI,” the central bank said in a statement.

The ECF refers to a formula for deciding the capital adequacy ratio for RBI. This is a positive development for those fearing that the government will tap into existing reserves of the central bank.

Of the existing reserves, a bulk of the funds are in contingency funds and in revaluation reserves. The contingency reserves, by definition, cannot be touched except in a crisis. To tap revaluation reserves, the RBI will have to sell assets and shrink its balance sheet. This will upset the money supply in the economy. Even if the to-be-constituted committee recommends higher transfers to government, it will result in lesser accretion to reserves and will not deplete the RBI’s balance sheet.

It was earlier speculated that the Centre might press for the RBI transferring a third of its Rs 9.7-lakh-crore total reserves to the government. The speculation was based on some reports stating that RBI holds over Rs 3 lakh crore of surplus reserves.

A higher surplus transfer for 2018-19 is likely because the central bank’s earnings are expected to be much more robust than 2017-18. In the current fiscal, the RBI has been intervening heavily in the foreign exchange and bond markets. The central bank’s earnings soar whenever there is forex volatility as it ends up making profits while selling dollars. For 2017-18, the RBI transferred a dividend of Rs 50,000 crore to the government.

Former governor Raghuram Rajan had proposed a formula-based model for fund transfer to the government. He had also warned against liquidating assets to transfer funds to government, stating that to neutralise the impact, the RBI would have to conduct money market operations by selling bonds. If the government had to issue fresh bonds in order to receive money from the central bank, it would be in the same position as before.

==2018: the position in other countries==
[[File: Equity as % of Central Banks' Balance Sheets in major countries, presumably as in 2017.jpg|Equity as % of Central Banks' Balance Sheets in major countries, presumably as in 2017 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F21&entity=Ar02901&sk=34D2A259&mode=text Sidhartha, November 21, 2018: ''The Times of India'']|frame|500px]]

'''See graphic''':

''Equity as % of Central Banks' Balance Sheets in major countries, presumably as in 2017''

=See also=
[[Banking and the law: India]]

[[Raghuram Rajan]]

The Reserve Bank of India

2019-02-17T16:12:20Z

Shivam: /* 2016-18 */

[[File: Governors of RBI since 1991.jpg|Governors of RBI since 1991; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=20_06_2016_017_024_002&type=P&artUrl=RAJANS-REPORT-CARD-IN-GOVERNORS-CLASS-20062016017024&eid=31808 ''The Times of India'']|frame|500px]]

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[[Category:India|R]]
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=History=
[https://rbi.org.in/History/Brief_History.html rbi.org]

The Reserve Bank of India is the central bank of the country. Central banks are a relatively recent innovation and most central banks, as we know them today, were established around the early twentieth century.

The Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission. The Reserve Bank of India Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank, which commenced operations on April 1, 1935.

The Bank was constituted to:

* Regulate the issue of banknotes

* Maintain reserves with a view to securing monetary stability and

* To operate the credit and currency system of the country to its advantage.

The Bank began its operations by taking over from the Government the functions so far being performed by the Controller of Currency and from the Imperial Bank of India, the management of Government accounts and public debt. The existing currency offices at Calcutta, Bombay, Madras, Rangoon, Karachi, Lahore and Cawnpore (Kanpur) became branches of the Issue Department. Offices of the Banking Department were established in Calcutta, Bombay, Madras, Delhi and Rangoon.

Burma (Myanmar) seceded from the Indian Union in 1937 but the Reserve Bank continued to act as the Central Bank for Burma till Japanese Occupation of Burma and later upto April, 1947. After the partition of India, the Reserve Bank served as the central bank of Pakistan upto June 1948 when the State Bank of Pakistan commenced operations. The Bank, which was originally set up as a shareholder's bank, was nationalised in 1949.

An interesting feature of the Reserve Bank of India was that at its very inception, the Bank was seen as playing a special role in the context of development, especially Agriculture. When India commenced its plan endeavours, the development role of the Bank came into focus, especially in the sixties when the Reserve Bank, in many ways, pioneered the concept and practise of using finance to catalyse development. The Bank was also instrumental in institutional development and helped set up insitutions like the Deposit Insurance and Credit Guarantee Corporation of India, the Unit Trust of India, the Industrial Development Bank of India, the National Bank of Agriculture and Rural Development, the Discount and Finance House of India etc. to build the financial infrastructure of the country.

With liberalisation, the Bank's focus has shifted back to core central banking functions like Monetary Policy, Bank Supervision and Regulation, and Overseeing the Payments System and onto developing the financial markets.

[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=A-bank-central-to-monetary-policy-22082016013031 ''The Times of India'']

'''Which was India's first central bank?'''

The first central bank was the Imperial Bank of India formed in 1921 by merging the Presidency banks. The bank was further enlarged by the merger of several banks owned by princely states like Jaipur, Mysore and Patiala.

The Imperial Bank of India was supposed to perform three functions -commercial banking, central banking and banker of the government. By 1930, there were 1,258 banking institutions in the country registered under the Companies Act. Of these, the Imperial Bank was the most dominant.The global economy was passing through the Great Depression and this resulted in the failure of many banks in India as well. Various committees set up to study the Indian banking system recommend ed the formation of a central bank which was free from commercial banking. In most modern economies, central banks were formed largely to tackle the failure of unorganised banking by enforcing regulatory safeguards.

'''When was the Reserve Bank of India formed?'''

The bank was formed in 1935 by the Reserve Bank of India Act, 1934. The objectives included being the banker of the government and other banks, to maintain the exchange ratio and to regulate issue of bank notes. The overall objective of the bank was to secure monetary stability.

'''What are its current roles?'''

The bank formulates, implements and monitors India's monetary policy. It monitors and regulates the financial system through prescribing broad parameters of banking operations to ensure public confidence in the system and protect depositors' interests.The bank also manages foreign trade and monitors foreign exchange reserves. It is the only authority that has the right to issue or destroy currency .

'''How is the bank governed?'''

Like other central banks, the RBI too is an independent entity within the government.It is governed by a central board of directors appointed by the government according to the Reserve Bank of India Act. The board is appointed for four years with a governor and not more than four deputy governors as official directors. There are also 10 directors nominated by the government, two government officials and four directors -one each from local boards -who act as non-official directors.

=Reserve Bank of India Act of 1934=
==What is Section 7 of the Reserve Bank of India Act of 1934==
[[File: Sec 7 of the Reserve Bank of India Act of 1934.jpg|Sec 7 of the Reserve Bank of India Act of 1934 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F31&entity=Ar00501&sk=13998587&mode=text Mayur Shetty, Will govt invoke Sec 7 for 1st time if RBI logjam persists?, October 31, 2018: ''The Times of India'']|frame|500px]]

'''See graphic''':

''Sec 7 of the Reserve Bank of India Act of 1934''

==Sec 7 application considered in 2018, Oct==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F31&entity=Ar00501&sk=13998587&mode=text Mayur Shetty, Will govt invoke Sec 7 for 1st time if RBI logjam persists?, October 31, 2018: ''The Times of India'']

''Is Said To Have Referred To The Law Recently''

No government has invoked Section 7 of the Reserve Bank of India Act of 1934 in the central bank’s 83-year history.

It is seen as an instrument of last resort, a direct order from the government of the day to the central bank to carry out its wishes (see graphic, ‘In Public Interest’).

The Modi government, despite its growing frustration with the Urjit Patel-led RBI, has resisted suggestions that it invoke Section 7 to increase liquidity, ease pressure on banks and businesses, and boost economic growth. But there are indications that via recent communications, it has initiated a consultative process with the RBI in three areas of concern and while doing so, has mentioned Section 7 without actually invoking it.

'''Was fear of Section 7 behind RBI dy guv’s attack on govt?'''

The government is learned to have recently initiated a consultative process with the RBI in three areas of concern – power sector loans, ‘prompt corrective action’ (PCA), and special dispensation for micro-small and medium enterprises (MSMEs) – and while doing so, mentioned Section 7, without actually invoking it. The Section says, “The Central Government may from time to time give such directions to the Bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest.”

The government’s move is significant as such a consultative process could potentially lead to the government issuing directions should the logjam persist. The issue of invoking Section 7 first came up during a hearing before the Allahabad high court in a case filed by the Independent Power Producers challenging the RBI’s February 12 circular which did away with all restructuring schemes for loans in default. After the counsel for RBI pointed out that legally the government could issue directions to the central bank, the court in its ruling in August said such a move could be considered.

Historically, whenever governors have spoken about the independence of the central bank, they have never failed to point out that Section 7 has never been used.

A senior official in the government said there has so far been no move to invoke Section 7. Another person, when asked, said, “Communication between the government and the central bank is sacrosanct and cannot be disclosed.”

There is some speculation that it was the government’s mention of section 7 that was the trigger for deputy governor Viral Acharya’s outburst against the government last Friday. While he did not make any reference to the Section, he did speak about how the government could undermine the independence of the central bank by ‘blocking or opposing rule-based central banking policies and favouring instead discretionary or joint decisionmaking with direct government interventions’.

The government wants norms for non-performing assets in the power sector – which currently require companies to be referred to bankruptcy courts -- to be relaxed. Once admitted, the companies have to be either sold or liquidated.

Its concern about 'prompt corrective action' is that the classification of PCA has placed lending and expansion curbs on 11 public sector and one private bank, which it believes is choking fund flows to several sectors. The government has also been worried about the fate of MSMEs, and is keen that the definition of bad loans be softened.

A broader concern is about the liquidity situation which has taken a turn for the worse after a series of defaults by IL&FS in September. The defaults have had a cascading impact — MFs that had invested in IL&FS debt were hit, corporates who had put shortterm funds in MFs turned cautious, and the funds themselves turned cautious about putting money in financial companies.

=Central board of directors=
==The Central Board==
The Reserve Bank's affairs are governed by a central board of directors. The board is appointed by the Government of India in keeping with the Reserve Bank of India Act.

• Appointed/nominated for a period of four years

Constitution:

o Official Directors

♣ Full-time : Governor and not more than four Deputy Governors

o Non-Official Directors

♣ Nominated by Government: ten Directors from various fields and two government Official

♣ Others: four Directors - one each from four local boards

Functions : General superintendence and direction of the Bank's affairs

===The Board, as in 2018===
[[File: The RBI’s Central board of directors, as in 2018.jpg|The RBI’s Central board of directors, as in 2018. <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar00314&sk=1E299772&mode=text Sidhartha, December 11, 2018: ''The Times of India'']|frame|500px]]

'''See graphic''':

''The RBI’s Central board of directors, as in 2018''

==Local Boards==
• One each for the four regions of the country in Mumbai, Calcutta, Chennai and New Delhi

Membership:

• consist of five members each

• appointed by the Central Government

• for a term of four years

Functions : To advise the Central Board on local matters and to represent territorial and economic interests of local cooperative and indigenous banks; to perform such other functions as delegated by Central Board from time to time.

==Why RBI is not comfortable with active boards==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F06&entity=Ar02101&sk=3514EE46&mode=text Mayur Shetty, Why RBI is not comfortable with a more active board, November 6, 2018: ''The Times of India'']

[[File: Industrialists on RBI Board.jpg|Industrialists on RBI Board <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F06&entity=Ar02101&sk=3514EE46&mode=text Mayur Shetty, Why RBI is not comfortable with a more active board, November 6, 2018: ''The Times of India'']|frame|500px]]

''Bizmen In Rule-Debating Role Raise Conflict Of Interest Issue''

An active board seeking a say in bank regulation has thrown up questions about conflict of interest, given the presence of industrialists on the board of the Reserve Bank of India (RBI).

Traditionally, the RBI board had a strong presence of eminent industrialists like Ratan Tata, N R Narayana Murthy and Azim Premji. It has also included chiefs of highly indebted groups like K P Singh of DLF and G M Rao of the GMR Group. However, there was never any conflict of interest as the minutiae of bank regulation or monetary policy never came up to the board. That’s because, until now, the RBI board only gave a broad direction that the central bank should take.

But in the October 23 board meeting, some directors are understood to have turned vocal on a few RBI regulations. According to a senior former central banker, there would be conflict of interest if these businessmen had advance information of RBI’s regulations. He was reacting to reports that some directors wanted the RBI central board to play a more active role and deliberate on regulations. There is talk of the board wanting to push through five decisions, which includes issues such as regulatory forbearance and allowing weak banks to lend, in the forthcoming RBI board meet on November 19.

Sources close to the central bank also point out that, unlike boards constituted under The Companies Act, the RBI Act 1934 grants the governor with powers that are concurrent with the board. They refer to clause 3 of the hotly debated Section 7 of the RBI Act. While the first clause confers powers on the government to give directions to the RBI, the third part indicates that the governor shares power.

This clause 3 states, “Save as otherwise provided in regulations made by the central board, the governor and in his absence the deputy governor nominated by him in this behalf, shall also have powers of general superintendence and direction of the affairs and the business of the bank, and may exercise all powers and do all acts and things which may be exercised or done by the bank.” A source said, “The choice of the words ‘shall also have powers’ indicates that these are concurrent with the board.”

According to sources, the powers of the governor are reiterated in the Reserve Bank of India, General Regulations, 1949, which also addresses the issue of conflict of interest between board decisions and individual interests of directors. “You can imagine what would happen if an issue like the February 12 circular on recognition of non-performing assets came up to a board that included owners of highly indebted companies,” a source said.

=How other central banks function=
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F30&entity=Ar02204&sk=41DBD133&mode=text Source: Central bank websites, agencies, WSJ, How other central banks function, October 30, 2018: ''The Times of India'']

[[File: The US government’s frictions with its central bank under President Trump.jpg|The US government’s frictions with its central bank under President Trump <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F30&entity=Ar02204&sk=41DBD133&mode=text Source: Central bank websites, agencies, WSJ, How other central banks function, October 30, 2018: ''The Times of India'']|frame|500px]]

'''The US Federal Reserve''': Like other central banks, the Fed is an independent government agency. It is accountable to the public and the US Congress. Members of the board of governors are appointed for staggered 14-year terms and the board chair is appointed for a four-year term. Elected officials and members of the administration are not allowed to serve on the board. The Fed does not receive funding through the congressional budgetary process. The financial statements of the Federal Reserve Banks and the board of governors are audited annually by an independent, outside auditor.

'''The Bank of England (BoE)''': The BoE is owned by the UK government. It has specific statutory responsibilities for setting policy rates, carried out within a framework set by government but free from day-to-day political influence. Parliament gives specific goals and responsibilities. The government sets the target — which is 2%. A panel meets to agree interest rate decisions eight times a year. There are other panels on other issues, which ensures that the financial system is working properly to serve UK households and businesses. The BoE is answerable to both parliament and the public.

'''European Central Bank (ECB)''': It manages the euro and implements monetary and economic policy for the EU. Probably the most independent of central banks, the ECB charter prevents it from backing any government. However, it is criticised as being non-independent because it is at the mercy of the governments of Europe’s creditor countries.

'''Bank of Japan''': It has a legal mandate to maintain price stability. The government is not allowed to sack the central bank governor or members of the board but parliamentarians have the right to appoint them. Bank regulation is done by the Financial Services Agency.

'''People’s Bank of China''': The Chinese central bank is subservient to the communist party and its national objectives. It is responsible for mainlining growth, price stability, currency stability and health of financial sector.

'''Central Bank of Argentina''': RBI deputy governor Viral Acharya used the example of the constitutional crisis in Argentina. The Cristina Fernandez-led government in 2010 attempted to raid the central bank’s reserves, resulting in bond yields shooting up and foreign investors exiting.

'''Turkey Central Bank''': The sharp depreciation in emerging market currencies was seen to have been triggered by the fall in the Turkish lira. The collapse of the lira has been attributed to Turkish president Recep Tayyip Erdogan taking control of Central Bank of the Republic of Turkey and preventing it from raising rates.

=The post of Governor=
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=No-age-cap-fixed-rules-for-RBI-top-20062016017020 ''The Times of India''], June 20, 2016

'''Who can be an RBI governor?'''

Unlike the appointment of fo ur deputy governors, there are no fixed rules. But most RBI governors have been civil servants (11), followed by economists (five). There has also been one banker, an insurance company executive and one RBI employee who have gone on to be the governor.

'''How are candidates selected?'''

In the past, candidates were shortlisted by the government, and the Prime Minister appointed the governor in consultation with the finance mi nister. On some oc casions, some of the candidates we re called for an in LEARNING formal interaction WITH THE TIMES with the finance mi nister (D Subbarao was appointed through this route) although the final decision was taken by the PM. Now, the government has tasked a committee headed by the Cabinet secretary to shortlist candidates and the final decision will be taken by PM Narendra Modi.

'''Is there an age cap or are some qualifications stipulated?'''

No, there is neither an age restriction nor qualifications are specified in the law. Governments have opted for those with understanding of overall economy , the financial sector as well as those familiar with th functioning of the government

'''What is the RBI governor' tenure?'''

The RBI Act allows the government to specify the term but the ? tenure cannot exceed five years, with a possibility of reappointe ment. In recent years, only S Venkitaramanan, who spent two years as RBI governor, has had a shorter stint than Raghus ram Rajan.

=Selection of Governor, Dy. Governor=
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=In-a-first-panel-to-list-RBI-guv-11062016001061 The Times of India], Jun 11 2016

Rajeev Deshpande

In a break from tradition, the government has tasked a selection committee headed by cabinet secretary P K Sinha with shortlisting candidates for Reserve Bank of India governor -a decision that was taken earlier by the Prime Minister in consultation with the finance minister.
In the past, chiefs of other regulatory bodies -including insurance, pension and Sebi -have been shortlisted by search committees. But this will be the first time the RBI governor will be appointed similar ly, signalling a major shift in government stance and ending the special treatment given to central bank chiefs. The decision to route the RBI governor's appointment through the financial sector regulatory appointment search committee (FSRASC) seems intended to cool speculation over Raghuram Rajan being considered for a second term.

The FSRASC, set up in 2015, had interviewed candidates for Sebi chief. In February 2016, the government ignored its recommendation and reappointed U K Sinha for a year. A part from the cabinet secretary, the committe comprises additional principal secretary to PM P K Mishra, who is a permanent government nominee, and three outside experts -Rajiv Kumar of Centre for Policy Research, Manoj Panda of the Institute of Economic Growth and Bimal N Patel from Gujarat National Law University. A finance ministry representative will be a special invitee. The panel's recommendation will be sent to the appointments committee of cabinet headed by the PM, which will decide on the governor.

Going by the current thinking in official circles, a second term for Rajan could well be on the cards despite occasional reports that put him at cross-purposes with the government over issues like rate cuts or `Make in India'. At the same time, the government does not seem keen to imbue the appointment with a greater profile of attention. The committee route would be in sync with PM Narendra Modi's remark that the appointment is an “administrative decision“ that will be taken closer to September when Rajan's term ends.

The committee's recomendation for RBI deputy governor was a break from past practice as previously, the head of the regulatory body presided over the selection committee. This time around, the RBI governor was a member of the FSRASC.

The process of making top-level appointments to regulatory bodies has been problematic, with the choices often being seen to be politically influenced. Even with the committee-bound process, the choice for sensitive posts will no doubt be vetted by the political authority. But the decision to make FSRASC the recommending body that could well put up a single name instead of a short list for a regulator is aimed at reducing discretion and putting all such bodies on a par.

=Salary and perquisites of RBI governors=
==2016: Urjit Patel’s package==
[http://timesofindia.indiatimes.com/business/india-business/RBI-governor-Urjit-Patel-gets-Rs-2-lakh-a-month-pay-no-support-staff-at-home/articleshow/55788608.cms December 4, 2016: The Times of India]

''' ''RBI governor Urjit Patel gets Rs 2 lakh a month pay, no support staff at home'' '''

'''HIGHLIGHTS'''

RBI governor Urjit Patel gets a little over Rs 2 lakh as salary

RBI governor Urjit Patel gets a little over Rs 2 lakh as salary and has not been provided with any support staff at his residence, the central bank has said.

Patel, who took over as RBI Governor in September+ , is presently in possession of the bank's flat (Deputy Governor's flat) in Mumbai, it said. "No support staff has been provided to the present Governor, Urjit Patel at his residence. Two cars and two drivers have been provided to the present Governor," RBI said in reply to an RTI query.

The bank was asked to provide details of remuneration given to former RBI governor Raghuram Rajan+ and incumbent Patel.
For the month of October — the first full month Patel was in office as Governor — Patel got Rs 2.09 lakh as his salary, the same amount drawn by Rajan as his August's salary. Rajan demitted office on September 4, and was given Rs 27,933 as remuneration for four days.

Rajan assumed the charge of RBI Governor from September 5, 2013 at a monthly salary of Rs 1.69 lakh. His salary was revised to Rs 1.78 lakh and Rs 1.87 lakh respectively during 2014 and March 2015. His salary was hiked to Rs 2.09 lakh from Rs 2.04 lakh in January 2016, the RTI reply said.

Rajan was provided with three cars and four drivers. "One caretaker and nine maintenance attendants were posted as supporting staff in the bungalow provided by the bank to the former Governor Raghuram Rajan at Mumbai," RBI said.

The Centre has recently declined to share details on appointment of Patel and other candidates shortlisted for the top post in the central bank saying these are "cabinet papers" and cannot be made public. Patel was on August 20 named as RBI's Governor to succeed Rajan.

==2017, pay hike: Rs 2.5 lakh/month==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=RBI-governors-pay-hiked-to-Rs-25L-per-03042017008029 RBI governor's pay hiked to Rs 2.5L per mth, April 3, 2017: The Times of India]

RBI governor Urjit Patel and his deputies have got a big pay hike with the government more than doubling their basic salary to Rs 2.5 lakh and Rs 2.25 lakh per month, respectively .
The “basic pay of the governor and deputy governors“ have been revised retrospectively with effect from January 1, 2016 and marks a huge jump from Rs 90,000 basic pay so far drawn by the Governor and Rs 80,000 for his deputies. Still, their salaries are much lower than the top executives of various banks regulated by the RBI.The RBI, however, did not disclose the new gross pay for Patel and his deputies following the revision in basic pay.

=Governors of the Reserve Bank of India=
==1935- 2013: complete list==
[http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2013/08/07&PageLabel=22&ForceGif=true&EntityId=Ar02206&ViewMode=HTML The Times of India] 2013/08/07

[[File: rbiGova.png||frame|left|500px]]
[[File: rbiGovb.png||frame|500px]]
<br/>

[[File: Governors of RBI since 1935.jpg|Governors of RBI since 1935; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=21_08_2016_017_017_001&type=P&artUrl=GOVERNORS-IN-LIBERALIZED-INDIA-21082016017017&eid=31808 ''The Times of India''], August 21, 2016|frame|500px]]

[[File: Interest rates, inflation and GDP growth during the tenures of RBI Governors, 1990-April 2016.jpg| Interest rates, inflation and GDP growth during the tenures of RBI Governors, 1990-April 2016; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=16_04_2016_021_021_010&type=P&artUrl=Rate-cut-depends-on-raindrops-Rajan-16042016021021&eid=31808 ''The Times of India''], April 16, 2016|frame|500px]]

[[File: Rates during the regime of RBI governor Mr. Raghuram Rajan, September 2013-September 2016.jpg|Rates during the regime of RBI governor Mr. Raghuram Rajan, September 2013-September 2016; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=10_08_2016_027_050_009&type=P&artUrl=Rates-unchanged-but-Rajans-cash-promise-trims-yields-10082016027050&eid=31808 ''The Times of India''], August 10, 2016|frame|500px]]

== Duvvuri Subbarao: 2008-2013==
Subbarao, man who fell into cauldron of woes

Surojit Gupta | TNN

[http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2013/08/07&PageLabel=22&EntityId=Ar02205&ViewMode=HTML The Times of India] 2013/08/07

New Delhi: For Duvvuri Subbarao it was baptism by fire when he took over the reins of the Reserve Bank of India nearly five years ago.

As soon as he stepped into the corner office at the central bank headquarters in Mumbai’s Mint Road, a tsunami struck the global financial system. The force of the 2008 global financial meltdown meant that RBI had to call on all its resources to shield the economy from being brutalized.

Subbarao, a mild-mannered former civil servant, remained unfazed. With the government, he scripted a recovery process stabilizing the economy, helping it weather the storm better than some of its peers.

But this was short-lived. The economy was buffeted by stubborn inflation, including double-digit food inflation, prompting the central bank to focus on taming prices. It raised rates furiously, almost 13 times, to throttle inflation.

Of late, frosty ties between RBI and the finance ministry have dominated discussions. Critics slammed the policy to tackle inflation while the government sometimes expressed disappointment. Finance minister P Chidambaram, who is careful with words, appeared disappointed as RBI left interest rates unchanged.

“Growth is as much a challenge as inflation. If the government has to walk alone to face the challenge of growth then we will walk alone,” Chidambaram said highlighting the need for an inflation-growth balance.

Adding to Subbarao’s problems, the fiscal situation deteriorated. Growth slowed. Scandals and policy missteps, such as retrospective taxes forced investors to the sidelines. Subbarao bravely continued calling for action on the fiscal front to enable him to slash interest rates. That didn’t happen until Chidambaram stepped in as finance minister in September. His reform initiatives helped restore the health of public finances. RBI obliged with a rate cut. But this came with a caveat on the ch a l l e n g e s on the prices front.

As things appeared to settle down, the crisis on the currency front emerged, prompting RBI to work towards taming the volatile forex market.

Some economists said the RBI under Subbarao misjudged the signals. “You cannot separate two or three issues, one of which is that when it comes to inflation and growth, both monetary and fiscal policies matter. In my assessment, the country had the most unfortunate fiscal policies compounded by the most unfortunate monetary policy,” economist Surjit Bhalla said. “The RBI misjudged the economy, determinant of inflation, determination of growth and determinant of the exchange rate.”

He said the RBI under Subbarao had misjudged food inflation and hiked rates. “What could’ve been a virtuous cycle has been turned into a vicious cycle,” Bhalla said. Not all would agree with such a harsh summation.

==Raghuram Rajan==
[[Raghuram Rajan]]

==Urjit Patel==
===2016-18===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F08%2F27&entity=Ar01714&sk=C1069BC6&mode=text Mayur Shetty, After 2 years as RBI governor, Patel nears bad debt endgame, August 27, 2018: ''The Times of India'']

[[File: The first two years of Urjit Patel’s innings as the Governor of the RBI- Economic indicators 2016-18.jpg|The first two years of Urjit Patel’s innings as the Governor of the RBI- Economic indicators 2016-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F08%2F27&entity=Ar01714&sk=C1069BC6&mode=text Mayur Shetty, After 2 years as RBI governor, Patel nears bad debt endgame, August 26, 2018: ''The Times of India'']|frame|500px]]

When Urjit Patel was appointed the 24th governor of the Reserve Bank of India (RBI) in August 2016, TOI had cautioned those who saw him as a pro-administration governor, pointing out that he was an inflation hawk.

As he completes two years in office next week (he took over from the previous RBI governor Raghuram Rajan on September 4, 2016), Patel has demonstrated that he is no pushover. Whether it is interest rates, non-performing assets (NPAs) or the issue of public sector bank regulation — Patel has not shied away from locking horns with the government.

While his first year as the head of the central bank was overshadowed by the events following demonetisation, Patel’s tenacity came to light during his second year. That was when the RBI asked lenders to take the who’s who of India Inc to court and sell their businesses under the newly-introduced Insolvency and Bankruptcy Code. These included corporate groups like Essar, Videocon and Bhushan Steel.

Patel’s obduracy, insisting that lenders stick to the letter for classifying loans as bad, has frustrated senior bureaucrats and politicians. Government officials point out that even public sector companies fail to make timely payments. However, for those who have been paying attention to Patel, this tough stance should not come as a surprise.

A year ago in a speech titled ‘Resolution of stressed assets: Towards the endgame’, Patel had highlighted the challenges ahead, “We all must realise that it will be a long haul before the intended objectives are fully achieved... but as long as the endgame is a desirable goal, these should be worth it for placing the private economy structurally on a path of sustained growth.”

When it comes to setting of interest rates, the central bank is perhaps more independent under Patel then it was ever before. This is because Patel’s regime in the RBI coincided with the constitution of the monetary policy committee (MPC), which had a mandated objective to keep inflation at around 4%. Incidentally, the MPC was constituted based on recommendations made by a committee headed by Patel as deputy governor.

Patel’s second year saw increased friction with the finance ministry following the Punjab National Bank scam. Soon after news of the scam broke, FM Arun Jaitley lashed out at the central bank, stating that while politicians are accountable, regulators (meaning the RBI) are not.

Patel’s comeback was equally strong. In one of his rare speeches, the governor said, “Success has many fathers, failures none. Hence, there has been the usual blame game, passing the buck, and a tonne of honking.” He then listed seven legislative provisions that ensured the RBI did not have much of a say in public sector banks. The finance ministry’s pointed rebuttal brought to light the stress in the relationship.

Patel, whose signatures appear in more currency notes than any other RBI governor, is the most low-profile central banker with only eight public speeches in two years. The final year of his term, being an election year, will be even more crucial as it will also bring him into the stressed loan endgame that he speaks about.

= Y.V. Reddy =
[https://www.indiatoday.in/magazine/up-front/story/20170724-y-v-reddy-reserve-bank-of-india-rbi-1024289-2017-07-14#ssologin=1#source=magazine India Today , The art of managing dissent “ India Today” 24/7/2017]

The world associates Y.V. Reddy with the Reserve Bank of India (RBI). He became its governor in 2003 and ended his term there in a blaze of glory in 2008 for having saved India the blushes in the global financial crisis that began in September 2008, a week after he demitted office. But for YVR's insistence on making Indian banks safe, India too would have emerged hurt and bleeding.

When he took over as governor in September 2003, YVR faced an entirely new problem. Until then, India had always been short of foreign exchange. Suddenly, thanks to the Vajpayee government, which put India on a new footing with the US, India was flush with forex. It fell to YVR to manage the situation, which he did with the unerring sense of innovation he has always displayed in tackling difficult public policy problems. He describes this and the other main events in his life with a sense of calm discretion. Although he devotes considerable space to his difficult relationship with P. Chidambaram as finance minister, this is not a kiss-andtell book. The sense you get is they differed on issues but in the end did the right thing. Those who know him well always feel a sense of marvel at the way he straddles the world of intellect-this book offers rich pickings in that regard-and of practical management which this books describes throughout. YVR's great strength lay in the ease with which he brought intellect to mundane practice, always speckled with his hilarious one-liners.

It is often forgotten that unlike fiscal policy, which lies in the government's domain, and is therefore largely about politics, monetary policy, which the RBI manages, is about ensuring the financial stability of India. The two sets of policies clash with each other all the time and it falls to the governor of the RBI to manage the friction. Some succeed but most fail.

YVR succeeded with professionalism, competence, grace and humour. This book is a must-read for those who want to know more about how he managed the noisy intersection of economics and politics.

=Balance sheet=
==Where do RBI’s surplus funds come from?==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F21&entity=Ar02914&sk=1554FE66&mode=text November 21, 2018: ''The Times of India'']

[[File: The RBI’s reserves, 2013-18.jpg|The RBI’s reserves, 2013-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F21&entity=Ar02914&sk=1554FE66&mode=text November 21, 2018: ''The Times of India'']|frame|500px]]

'''Where do RBI’s surplus funds come from?'''

RBI’s board this week decided to set up an expert committee to examine its ‘Economic Capital Framework’. The committee is expected to break down RBI’s balance sheet to decide if its reserves are consistent with its needs.

'''What is the size of the RBI’s balance sheet?'''

In 2017-18, the size of RBI’s balance sheet was Rs 36.2 lakh crore. Its balance sheet, however, is unlike that of a company. The currency notes it prints make up more than half its liabilities. Another big share, 26%, represents its reserves. These are invested mainly in foreign and Indian government securities (essentially promisory notes bearing an interest rate against which these governments borrow) and gold. RBI holds a little over 566 tons of gold, which along with its forex assets make up almost 77% of its assets. Sometimes, the finance ministry and RBI disagree on what level of reserves RBI must hold to be consistent with its operations.

'''Where do the RBI’s reserves come from?'''

Reserves with RBI are not all of the same kind. In the current debate there are two which are relevant: The Currency & Gold Revaluation Account (CGRA) makes up the biggest share — it was Rs 6.9 lakh crore in 2017-18. This represents the value of the gold and foreign currency that RBI holds on behalf of India. Simply put, variations in this represent the changing market value of these assets. Thus, the RBI notionally gains or loses on this count according to market movements. For example, last year the CGRA increased by 30.5% largely because of the depreciation of the rupee against the US dollar and due to an increase in the price of gold.

The Contingency Fund (CF) is a specific provision meant for meeting unexpected contingencies that arise from RBI’s monetary policy and exchange rate operations. In both cases, RBI intervenes in the relevant markets to adjust liquidity or prevent large fluctuations in currency value. The CF in 2017-18 was Rs 2.32 lakh crore, or 6.4% of assets. The CGRA and CF put together constituted 26% of assets (and because in a balance sheet assets and liabilities must by definition match, also the same proportion of its liabilities).

'''What is the RBI’s surplus?'''

This represents the amount RBI transfers to the government. There are two unique features about RBI’s financial statements. It is not required to pay income tax and has to transfer to the government the surplus left over after meeting its needs. RBI’s income comes mainly through interest on the securities it holds and in 2017-18 the largest component of expenditure was a provision of about Rs 14,200 crore it made to the contingency fund.

Obviously, the larger the provision made to CF, the lower the surplus. Beginning 2013-14, RBI didn’t make a provision to CF for three successive years as a technical committee felt its “buffers” were more than enough. In the last two years, however, RBI has made provisions to CF. The adequacy of the current level of CF is one of the key issues likely to be debated extensively by the expert committee.

==2013-18: surplus transferred ==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F20&entity=Ar02210&sk=E802297C&mode=text Pradeep Thakur, In last 5 yrs, RBI transferred 75% of its income as surplus, November 20, 2018: ''The Times of India'']

[[File: RBI's Balance Sheet, 2013-18.jpg|RBI's Balance Sheet, 2013-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F20&entity=Ar02210&sk=E802297C&mode=text Pradeep Thakur, In last 5 yrs, RBI transferred 75% of its income as surplus, November 20, 2018: ''The Times of India'']|frame|500px]]

The Reserve Bank of India (RBI) transferred around Rs 2.5 lakh crore to the government during the last five years, which was around 75% of the central bank’s income.

While analysing the government’s finance account last year, the Comptroller and Auditor General studied RBI’s income, expenditure and surplus transferred to the Centre between 2013-14 and 2017-18 and found that out of its income of Rs 3.3 lakh crore, the central bank had transferred Rs 2.48 lakh crore. The highest payout was in 2015-16, when 83% of the RBI’s income was transferred to the Centre as surplus.

RBI’s reserves have been a bone of contention, with the government keen to increase the payout. What has added to the discord in recent years is the Economic Survey pointing out that RBI has higher reserves than other central banks.

In the recent past, RBI has been transferring surplus of around Rs 65,000 crore annually to the government, barring 2017 when its expenditure more than doubled to Rs 31,000 crore. Till 2016-17, the RBI’s expenditure remained below Rs 15,000 crore but shot up due to higher cost of printing currency notes at the time of demonetisation.

In a speech last month, RBI deputy governor Viral Acharya had hit out at the government for seeking higher dividend and cited the example of Argentina, where a similar development took place eight years ago, to argue that the central bank’s autonomy should not be compromised. The issue was one of the key agenda items at the marathon board meeting of the RBI.

===Surplus capital, 2013-18===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F02%2F02&entity=Ar02900&sk=7D9EB8EA&mode=text RBI’s forex sale profit to help bridge deficit, February 2, 2019: ''The Times of India'']

[[File: The Reserve Bank of India’s surplus capital, 2013-18.jpg|The Reserve Bank of India’s surplus capital, 2013-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F02%2F02&entity=Ar02900&sk=7D9EB8EA&mode=text RBI’s forex sale profit to help bridge deficit, February 2, 2019: ''The Times of India'']|frame|500px]]

''To Consider ₹28,000Cr Interim Dividend In Addition To ₹40,000Cr Already Given To Govt''

The volatility in the foreign exchange and bond market is helping the government to bridge some of its fiscal deficit. The Reserve Bank of India (RBI) is understood to have made record profits from selling dollars in the foreign exchange market when the rupee came under pressure.

These profits are likely to be distributed to the government in the form of an interim dividend, which will be considered in the next board meeting of the central bank.

Economic affairs secretary Subhash Chandra Garg said on Friday that the government expects an interim dividend of Rs 28,000 crore from the RBI. This is in addition to the Rs 40,000 crore already received from the central bank during FY19, Garg said in an interaction with the media after the interim budget was announced.

The Rs 28,000-crore interim dividend will be transferred by the RBI before end March 2019. As a result, the interim dividend will help the government ease fiscal pressure as the money will come within the current financial year. The RBI, which follows a July-June financial year, paid about 63% higher dividend than the previous year (2016-17).

Meanwhile, the government has revised dividend or surplus of the RBI, nationalised banks and financial institutions to Rs 74,140 crore from Rs 54,817 crore estimated earlier in the Budget 2018-19. In the next year too, the RBI is expected to be a major contributor to the government’s revenues.

A panel headed by former RBI governor Bimal Jalan is looking at whether the central bank is holding surplus capital, which can be transferred to the government. The panel is expected to submit its report by end-March.

According to Care Ratings MD & CEO Rajesh Mokashi, dividends and profit will contribute highest (50%) to the non-tax revenue.

“The government is expecting higher dividends (11.8% more) by way of surplus transfers from the RBI as the performance of the PSUs has been impacted by nonperforming assets. Other non-tax revenues are slated to grow 8.9% over 34.3% yearon-year in the previous year,” he said. Other non-tax revenues include social, general and economic services provided by the government.

=Dividends=
==2017: Demonetisation, printing of currency: RBI halves dividend ==
[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=RBI-halves-dividend-to-govt-to-Rs-31k-11082017021025 Mayur Shetty, RBI halves dividend to govt to Rs 31k cr, August 11, 2017: The Times of India]

[[File: RBI dividend to government, 2013-17.jpg|RBI dividend to government, 2013-17; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=RBI-halves-dividend-to-govt-to-Rs-31k-11082017021025 Mayur Shetty, RBI halves dividend to govt to Rs 31k cr, August 11, 2017: The Times of India]|frame|500px]]

'''Demonetisation, Printing Of Currency Take A Toll'''

In a surprise announcement, the RBI said that it has halved its dividend payment to the government to Rs 30,659 crore for 2016-17 from nearly Rs 66,000 crore in each of the previous two years. The lower dividend is due to huge expenses borne by the RBI by way of interest payment to banks as part of its liquidity management exercise and in printing notes following demonetisation.

The dividend amount was decided by the central board of directors, which met to finalise accounts for the year ended June 2016.The board would have also finalised how the central bank deals with the demonetised currency notes that were not turned in before June 2017. However, the RBI is yet to divulge details on whether it has extinguished the currency which has not been deposited.

The halving of dividend will hurt the government's finances. “The lower amount will be a concern since the government's non-tax receipts will be affected. In the Budget, it was assumed that around Rs 75,000 crore would come from RBI, public sector banks (PSBs) and financial institutions compared with a little over Rs 76,000 cr in FY17,“ said Madan Sabnavis, chief economist, CARE Ratings. According to Sabnavis, as PSBs are unlikely to do better than last year and the RBI will be transferring a smaller amount, this will impact the fiscal deficit numbers.“If other conditions remain unchanged, the fiscal deficit can increase from 3.2% to 3.4% this year,“ he added.

Devendra Kumar Pant, chief economist, India Ratings, said the drop in dividend is due to lower earnings due to reverse repo transactions (where the RBI borrows from banks) and high costs incurred in printing of notes. Besides this, the appreciation of the domestic currency vis-a-vis the US dollar led to lower returns in rupee terms. “Firstquarter direct tax collections, if continued in the fiscal, will provide some buffer for central government deficit,“ he added.

The minister of state for finance Arun Meghwal had earlier said that it costs between Rs 2.87 and Rs 3.09 to print the new Rs 500 note and Rs 3.54-3.77 for a Rs 2,000 note. Given these numbers, it would have cost the RBI over Rs 13,000 crore to print fresh currency notes during demonetisation. This is almost thrice the Rs 3,421 crore the RBI spent on printing notes in the previous year. According to economists, when the macro fundamentals are so und, the RBI ends up with weak earnings and, conversely, when the country's fundamentals are under strain, the central bank generates exceptional gains. This is because at times of stress, the RBI tightens liquidity and makes windfall profits lending to banks at high rates.But when the rupee is strengthening, the central bank loses money by buying a falling dollar. The biggest cost to the RBI by far, when the country is facing a problem of plenty, is the cost of impounding surplus liquidity. Banks are sitting on sur plus funds due to absence of credit demand. Soumya Kanti Ghosh, chief economist, SBI, said, “Credit growth has decelerated by Rs 1.5 lakh crore in current fiscal -a historic low.“ He added that given surplus funds, SBI, Axis Bank and Bank of Baroda have reduced the savings bank rate to keep the lending rate low.

Since November, banks have been awash with surplus liquidity thanks to cash being deposited with them.While most of these were slowly withdrawn, a large chunk continued to remain with banks. According to dealers, the surplus liquidity with banks has risen to Rs 3 lakh crore as compared to the RBI's target range of Rs 1 lakh crore.

==2016> 2018==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F08%2F09&entity=Ar02101&sk=6468B053&mode=text At ₹50,000cr, RBI gives govt 63% more dividend, August 9, 2018: ''The Times of India'']

The RBI has transferred a surplus of Rs 50,000 crore to the central government, which is 63% more than last year’s dividend of Rs 30,659 crore. This payout is also 91% of the Rs 54,817-crore dividend income that the government budgeted from the RBI, nationalised banks and other financial institutions in its Budget 2018.

It is likely that the central bank would have generated a higher surplus arising out of foreign exchange operations. The RBI has sold foreign currency assets worth over $20 billion this year, which is reflected in the decline in forex reserves from nearly $400 billion on March 30, 2018 to around $379 billion. The foreign currency assets sold were worth Rs 1.40 lakh crore and would have added to the RBI’s rupee balance sheet and enabled it to pay a higher dividend.

Public sector banks have not distributed any dividend to the government as all but two of them have reported losses. However, insurance companies would have made some payment to the government. Earlier in March, the RBI paid an interim dividend of Rs 10,000 crore at the insistence of the Centre to support fiscal position.

“The central board of directors of the RBI, at its meeting held on August 8, approved the transfer of surplus amounting to Rs 500 billion (Rs 50,000 crore) for the year ended June 30, 2018 to the government,” the central bank said in a statement.

Unlike other financial institutions, the RBI follows a July-June financial year. The dividend payout had shrunk last year as the RBI had to spend a lot of money in printing of new currency notes following demonetisation in November 2016.

=Gold reserves=
==Purchases in 2009, 2018==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F09%2F04&entity=Ar02007&sk=B0770925&mode=text RBI boosts forex kitty with first gold buy in 9 years, September 4, 2018: ''The Times of India'']

The Reserve Bank of India (RBI) has bought nearly 8.5 tonnes of gold in financial year 2017-18, the first purchase of yellow metal by the central bank in almost nine years, a report said.

The RBI held just over 566 tonnes of gold as on June 30, 2018, compared with 558 tonnes as on June 30, 2017, according to the central bank’s latest annual report for 2017-18.

The central bank had last purchased gold in November 2009, when it had bought 200 tonnes of yellow metal from the International Monetary Fund (IMF).

Of over 566 tonnes of gold reserves, about 292 tonnes is held as backing for notes and is shown as an asset of the issue department, and the balance 274 tonnes is treated as an asset of the banking department.

The value of gold held as asset of banking department rose by 11.1% to Rs 69,674 crore as on June 30, 2018, from Rs 62,702 crore as on June 30, 2017.

This increase was primarily on account of depreciation of rupee as against the dollar and the addition of nearly 8.5 tonnes of gold during the year, the RBI’s annual report said.

=Government- RBI relations=
== Why govts want central banks on their side==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F05&entity=Ar02504&sk=671ADF05&mode=text November 5, 2018: ''The Times of India'']

'''Why govts want central banks on their side'''

A country's central bank and its government may not always see eye to eye — the latest rift between the RBI and the Centre is a case in point. But what makes a central bank essential to a country's economy, and what kind of power does it enjoy?

'''Can an economy work without a central bank?'''

Considering the influence of central banks in today’s age, this is a difficult question to answer. Many countries have witnessed a constant tussle between the elected government and their central bank but no modern government has been able to either abolish or significantly curtail the power of their central bank. In the absence of such a bank it is difficult to imagine how a reliable payments system, a stable currency and controlled inflation level could be maintained.

'''What is the role of a central bank?'''

Among the important roles of a central bank is to control the cost of money by changing interest rates. This role itself gives it immense power to stimulate or slow the economy. Apart from this, the central banks — in our case Reserve Bank of India — formulate, implement and monitor the country’s monetary policy. It monitors the financial system by prescribing broad parameters of banking operations to ensure the public has confidence in the system and protects depositors’ interest.

The bank also monitors foreign exchange reserves. It is the only authority that has the right to issue or destroy currency in circulation. The central bank also does merchant banking for the government as well as other banks.

'''How independent is the RBI?'''

Like other central banks, RBI is an independent entity within the government. It is governed by a central board of directors appointed by the government according to the Reserve Bank of India Act. The board is appointed for four years with a governor and up to four deputy governors. There are 10 other directors nominated by the government, two government officials and four non-official directors from local boards. There are also four local boards in Mumbai, Kolkata, Chennai and New Delhi to advise the central board on local matters. Local board members are nominated by

'''Where is the most powerful central bank?'''

While it controls the world’s largest economy, US's Federal Reserve Bank also issues treasury bills to raise money to finance spending. These US securities are bought by other nations and their value is based on the price of the US dollar. If the Fed lowers interest rate and makes dollar cheaper to borrow, the pinch will be felt by all other economies. Similarly, a stronger dollar will benefit countries that hold US securities.

==1935-2016: Govt. vs. the RBI==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F03&entity=Ar00507&sk=05B1245C&mode=text Govt vs RBI: Top FinMin man mocks dy governor, November 3, 2018: ''The Times of India'']

[[File: 1935-2016- tiffs between the govt. and the RBI.jpg|1935-2016: tiffs between the govt. and the RBI <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F03&entity=Ar00507&sk=05B1245C&mode=text Govt vs RBI: Top FinMin man mocks dy governor, November 3, 2018: ''The Times of India'']|frame|500px]]

''Another DG Gives Speech Attacking Centre On Lending''

Hostilities between the Modi government and the Reserve Bank of India remained at heightened levels with a top bureaucrat taking to social media on Friday morning to mock a recent speech of deputy governor Viral Acharya. Hours later, the RBI uploaded a speech another deputy governor, N S Vishwanathan, gave at XLRI Jamshedpur earlier this week. In his speech, Vishwanathan attacked the government’s arguments for easing capital requirements, saying that it would result in banks being strong only in a “make-believe” manner.

Economic affairs secretary Subhas Chandra Garg, the finance ministry’s point person for managing ties with the RBI, fired the first salvo when he took aim at Acharya’s comment that “governments that do not respect central bank independence will sooner or later incur the wrath of financial markets”.

'''RBI dy guv against govt’s bid to push bank credit'''

Rupee trading at less than 73 to a dollar, Brent crude below $73 a barrel, markets up by over 4% during the week and bond yields below 7.8%. Wrath of the markets?” economic affairs secretary Subhas Chandra Garg tweeted on Friday.

Ironically, Garg’s very public dig at governor Urjit Patel’s hand-picked deputy came just two days after the finance ministry issued a carefully-worded statement that among other things signaled its displeasure with the RBI for airing its differences with the government.

Vishwanathan, who unlike Acharya is a career central banker, appeared to be at odds with the government’s push to accelerate bank credit when he indicated that higher growth in lending was not desirable. “It may be noticed that in the past, high levels of credit growth due to ‘supply push’ have resulted in high corporate leverage and consequent NPAs in the banking system,” he said.

“We must guard against any push for dilution of standards in the name of aligning them with international benchmarks because that will be cherry-picking and will result in our banks being strong in a make-believe sense and not in reality.” This appeared to be a response to financial services secretary Rajiv Kumar’s statement last week that minimum common equity (CET) Tier I ratio as prescribed by RBI stands at 5.5% as against 4.5% under Basel III norms. A relaxation of the capital requirement to Basel III levels would enable bank to lend up to Rs 6 lakh more.

But, according to the deputy governor, current levels of provisions maintained by banks may not be enough to cover the expected losses due to defaults, and hence adequate buffers must be built to absorb the expected losses which are under-provided. Vishwanathan said that bank credit was already growing at 14% year on year in line with GDP growth. Within this, bank loans to NBFC during this period grew 48.3%.

According to Vishwanathan, international capital norms have been designed based on internationally observed recovery rates. However, the loss given defaults are far more than those observed internationally. He also shot down arguments that some defaults are caused by external circumstances and that regulations should treat them differently based on the reasons behind them. “This is a fallacy. There are two issues here: recognition and resolution. The recognition of default or accounting for deterioration in the quality of asset should be independent of the reasons for such default or deterioration.”

===When mediating PM, diplomatic governors averted crisis===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar02013&sk=A0864585&mode=text Mayur Shetty, December 11, 2018: ''The Times of India'']

Public statements and disclosures by former governors — Y V Reddy, D Subbarao and Raghuram Rajan — in their writings have shown that there have been disagreements between the finance ministry and the RBI. But none of these disputes ever boiled over to a situation leading to the governor’s resignation.

According to central bank insiders, in the past governors have adopted a strategy of convince and compromise. Also, in the case of differences that arose during the 10-year UPA government, then Prime Minister Manmohan Singh, himself a former governor, helped in brokering peace between the RBI and the finance ministry. Even though previous governors have been bureaucrats, after coming to the RBI it is the chair that has taken over. Both Reddy and Subbarao have been extremely strong votaries of independence of the central bank after taking charge as governors. However, despite their independence they have acknowledged that the finance minister is senior to the RBI governor. In the case of Patel, his finance minister Arun Jaitley had taken a fourmonth break between May and August — a time when differences with the government were boiling over.

Additionally, in the past the differences were in the area of interest rates that has ceased to be an issue after the creation of the monetary policy committee (MPC), which coincided with the appointment of Patel.

Past governors have also managed to handle their differences with the finance ministry using their personal connection with finance ministry officials. Former governors, Reddy and Subbarao, were both former bureaucrats and had many friends in the finance ministry. Rajan, though not a bureaucrat, had worked in Delhi as chief economic adviser where he was prepped for the position of RBI governor.

In the case of Patel, his engagement with the finance ministry was two decades earlier as deputy to the IMF India representative. During this period, he build a friendship with Manmohan Singh.

There are some insiders who feel that the government’s choice of appointing outside economic experts as governor is a failed experiment as they have very little skin in the game.

Raghuram Rajan had made it clear that he had a job at Chicago Booth waiting for him when his term ended. Similarly, many expect that Patel would pursue academic interests after his stint as governor.

==1956-57: Pt. Nehru vs. Sir Rau==
[https://timesofindia.indiatimes.com/india/nehru-letter-to-rbi-may-give-modi-government-ammunition-in-urjit-row/articleshow/66503739.cms Sidhartha, November 5, 2018: ''The Times of India'']

The traditionally fraught nature of government-RBI relations goes back to the early days of the central bank when Sir John Osborne Smith resigned his governorship in 1937 following differences with the colonial government over interest and exchange rates.

But it is Jawaharlal Nehru’s stormy exchanges with Sir Benegal Rama Rau, leading to his resignation as RBI governor, that has tickled the interest of people in the finance ministry – and may provide them with an effective counter to the Rahul Gandhi-led Congress’s attack on the government for undermining the autonomy of the central bank.

Rau, a civil servant, was the fourth governor of RBI and quit in January 1957 after seven and a half years in the saddle when Nehru sided with finance minister TT Krishnamachari and made it clear that RBI was part of “the various activities of the government”.

Rau had accused TTK of “rude behaviour” over differences that began over a Budget proposal. TTK had referred to RBI as a “section” of the finance ministry and described it as “reserved”, as well as expressed doubts in Parliament “as to whether it is capable of doing any thinking”.

In a letter to Rau, India’s first Prime Minister and Rahul Gandhi’s great-grandfather, wrote: “It (RBI) has to advise government, but it also has to keep in line with government.” He suggested the governor could resign if he thought that it was not possible to continue; Rau put in his papers a few days later.

Nehru said it would be “completely absurd” if the central bank followed a different policy because it did not agree with the government’s objectives or its methods.

“You have laid stress on the autonomy of the RBI. Certainly it is autonomous, but it is also subject to the central government’s directions…. Monetary policies must necessarily depend upon the larger policies which a government pursues. It is in the ambit of those larger policies that the RBI can advise. It cannot challenge the main objectives and policies of government,” asserted Nehru.

“When you talked to me I pointed out to you that it was for the central government to lay down policies and the RBI could not obviously have policies contrary to those of the central government. You agreed with this. And yet I find in your memorandum a different point of view,” he added.

The RBI believed that TTK’s Budget proposal would effectively push up interest rates and forwarded a resolution of the central board. “The board requests the government to consult RBI in advance on all matters which significantly affect the monetary structure and policy,” the board said on December 12, 1956.

The same day, Nehru wrote to the governor pulling him up for his “improper approach” which was seen to be “agitational” against the Centre.

A fortnight later, Rau responded to Nehru’s letter saying that despite differences on several issues, nothing had leaked out from RBI. He then wrote that the government could reject RBI’s advice though it should be given an opportunity to place all facts and its view before a decision was taken on “technical and sometimes complicated monetary issues”.

The then governor also took “strong exception” to some of Nehru’s comments on not supporting government policies and said the consultations over the Budget proposal were inadequate.

In the Budget, the government had proposed to increase the stamp duty on an instrument used by lenders to get loans at a discount to RBI’s key policy rate – the bank rate. RBI argued that the higher stamp duty, which it said was decided without prior consultation, would push up the bank rate by half a percentage point.

Parallels are being drawn between the developments six decades ago and the current power tussle between the Centre and RBI – although in that instance, the central bank had gone out on a limb to criticise a Budget proposal whereas it’s the government that is now unhappy with the RBI for not taking on board its concerns about the economy.

While most governments and the central bank have had differences over issues ranging from interest rates to regulations, the current rift has widened to an extent that the finance ministry has sought formal consultations with the governor in what is one step short of invoking Section 7 of the RBI Act, a provision that has never been used.

The government has been pushing RBI to address its concerns related to providing support to non-banking finance companies, ravaged by the impact of defaults by IL&FS, in addition to addressing the credit needs of small businesses and reviewing the prompt corrective action (PCA) framework dealing with weak banks.

==2014, PM Manmohan Singh: Governor must heed govt==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F07&entity=Ar00308&sk=C7215202&mode=text Guv must heed govt, Manmohan said in ’14, November 7, 2018: ''The Times of India'']

The dynamic between the RBI and the government is one of give and take but if the finance minister insists on a certain course of action, his view will need to prevail, former PM Manmohan Singh has said in his daughter Daman Singh’s book “Strictly Personal: Manmohan and Gursharan”.

Recalling his tenure at the central bank, Singh says, “There is always give and take. I had to take the government into confidence. The governor of the Reserve Bank is not superior to the finance minister. And if the finance minister insists, I don’t see that the governor can refuse, unless he is willing to give up his job.”

Singh’s comments in the 2014 book are significant in the context of tensions between the Centre and RBI governor Urjit Patel amid heated commentary on the autonomy of the central bank. Singh says that after recording a divergent point of view, the governor can insist on directions from the government which would then need to be followed.

'''Singh speaks of Caparo, tension with then FM Pranab Mukherjee'''

Singh speaks of tensions with then finance minister Pranab Mukherjee over the move of the Londonbased Caparo group, in which business magnate Swraj Paul and his family held a majority share, to buy shares of Escorts Group. The UK-based business initiated the purchase of shares even before the RBI granted it permission. The RBI informed the government that it intended to reject Caparo’s application.

The book notes that the government of the day, however, did not have any misgivings and asked the RBI to grant permission, which it did. The matter went to court and the Supreme Court finally held the government’s order to the RBI and the permission granted by the central bank to be valid.

Asked about the case, Singh says, “Well, it was a situation that brought me in conflict with the government. I have given the view of the Reserve Bank, but said the government could always overrule it. This was a government scheme... Ultimately, it was resolved by the government giving a directive to the RBI.”

Singh makes it clear that the government would have liked the RBI to have acted on its own with regard to the application under a portfolio investment scheme for NRIs. But he said the RBI did not act until the explicit approval of the Cabinet Committee on Political Affairs was conveyed to the central bank. In a second case the book refers to, Singh had strong reservations over the application of the Bank of Credit and Commerce International to open a couple of branches in India. Permission was almost granted when Charan Singh was PM and was finally cleared by the Congress government in 1983.

The government, unhappy with the RBI’s power to issue bank licences, sought to take these powers away. “I sent my letter of resignation to Pranab Mukherjee and the PM. Later, I managed to persuade Mrs Gandhi that the Cabinet decision was not proper... they dropped the idea,” Singh says.

==10 flash points between Govt., RBI: 2017-18==
[[File: 2017, 2018- tensions between the Government and the RBI under Patel, a chronology; 2019, Nov- The RBI’s Central board of directors.jpg|2017, 2018: tensions between the Government and the RBI under Patel, a chronology <br/> 2019, Nov: The RBI’s Central board of directors <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F19&entity=Ar02902&sk=637D344F&mode=text Sidhartha & Mayur Shetty November 19, 2018: ''The Times of India'']|frame|500px]]

[[File: 10 flash points between Govt., RBI- 2017-18- Part I.jpg|10 flash points between Govt., RBI- 2017-18- Part I <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F30&entity=Ar02205&sk=E9E288E4&mode=image October 30, 2018: ''The Times of India'']|frame|500px]]

[[File: 10 flash points between Govt., RBI- 2017-18- Part II.jpg|10 flash points between Govt., RBI- 2017-18- Part II <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F30&entity=Ar02205&sk=E9E288E4&mode=image October 30, 2018: ''The Times of India'']|frame|500px]]

'''See graphics''':

''2017, 2018: tensions between the Government and the RBI under Patel, a chronology <br/> 2019, Nov: The RBI’s Central board of directors''

''10 flash points between Govt., RBI- 2017-18- Part I''

''10 flash points between Govt., RBI- 2017-18- Part II''

===Points of friction===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F02&entity=Ar00508&sk=4933A620&mode=text Sidhartha, ‘RBI’s refusal to engage forced govt to mull extreme legal step’, November 2, 2018: ''The Times of India'']

[[File: Friction between the Government and the Reserve Bank of India- Part I.jpg|Friction between the Government and the Reserve Bank of India- Part I <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar02003&sk=B8EACFF5&mode=image December 11, 2018: ''The Times of India'']|frame|500px]]

[[File: Friction between the Government and the Reserve Bank of India- Part II.jpg|Friction between the Government and the Reserve Bank of India- Part II <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar02003&sk=B8EACFF5&mode=image December 11, 2018: ''The Times of India'']|frame|500px]]

'''See graphics''':

''Friction between the Government and the Reserve Bank of India- Part I''

''Friction between the Government and the Reserve Bank of India- Part II''

'' ‘Guv Patel, Team Not Happy With An Assertive Board’ ''

The Modi government was driven to consider the extreme step of invoking the never-before-used Section 7 of the RBI Act by central bank governor Urjit Patel’s reluctance to engage with stakeholders, according to highly placed sources in New Delhi. “He was scarce and unavailable to bankers, industry and market players even on matters of pressing concern. We were left with no choice. It was the only way we could bring the central bank to the table,” one person close to the development told TOI.

This confirms TOI’s exclusive report of Monday that tensions between the Patel-led RBI and the government had “come to a head” because the two were not only not able to see eye-to-eye on a host of issues, there had also “been an almost complete breakdown in communication” between them.

'''RBI didn’t make public decisions taken at last board meeting'''

The move could be significant as a consultative process sets the stage for a government to issue directions to the RBI if there is no agreement,” the report added.

No government has invoked Section 7 of the Reserve Bank of India Act of 1934 in the central bank’s 83-year history. The Section says, “The central government may from time to time give such directions to the bank as it may, after consultation with the governor of the bank, consider necessary in public interest.”

The Section 7 reference to RBI was the first formal step towards discussing a troika of concerns with RBI — credit flow, liquidity, and problems facing medium and small businesses — failing which the central bank would have to face the “legal instrument of last resort”, which would be tantamount to a vote of no-confidence in the gover nor.

The finance ministry issued a carefully-worded statement saying the government and the RBI should be “guided by public interest and the requirements of the Indian economy”.

The government had hoped that RBI would go by the board’s collective view instead of the governor and his deputies charting the course of the financial sector by themselves. But the central bank — which also doubles up as regulator for banks and some market segments — did not seem to go by the view of the directors. Among the 18 directors on the central board, 11 are independent, with five RBI officials and two finance ministry bureaucrats making up the complete cast.

At last week’s board meeting, it was decided that four decisions that had been taken would be made public. However, RBI, which it now appears, had reluctantly acquiesced into the majority decision, decided otherwise and made no disclosure about the “unanimous” calls. The radio silence came as a surprise because the directors had left the meeting convinced that RBI officials were on the same page.

At the marathon meeting, which had over 20 items on the agenda, the RBI brass had suggested that the issues that could not be decided, would be taken up at next meeting. The meeting was to be held post-Diwali. Accordingly, Patel verged on announcing a specific date but was stalled in his tracks by a top RBI official, who suggested that it was time to wrap up. Thus, the date remained undecided.

In fact, RBI’s announcement of November 19 as the date when the board would meet next, came only after some independent directors, frustrated by the delay, forced the management on Wednesday to take a decision, said sources. While the government has faced flak for nominating S Gurumurthy and Satish Marathe on RBI’s central board, as well as removing Nachiket Mor, people close to the decision said the move was necessary and aimed at turning it from merely being a rubber stamp to a body which could hold its own while engaging with the bank leadership.

This was a significant turn. For over the years, it was the Central Committee of the Board which had become the “real” decisionmaking body with the board starving itself of powers to regulate by delegating those to the CCB.

The sudden power shift, with the board asserting itself and demanding a say, does not seem to have gone down well with the RBI brass, prompting howls of protest about government interference, said a top official who has been watching the evolving dynamics on Mint Road.

Sources said that at the last board meeting, financial services secretary Rajiv Kumar made a detailed presentation on the need to align Indian standards with global norms instead of stiffening them unnecessarily. The suggestion was an attempt to convince RBI to tweak its rules for capital and PCA. There were also complaints about liquidity shortage and Gurumurthy flagged the concern about inadequate fund availability for small businesses.

While most of the board, including corporate sector representatives agreed with the view, RBI representatives, supported by some of the independent directors, did not agree.

===2017, 2018: tensions under Patel ===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F10%2F29&entity=Ar00302&sk=ECF78AAA&mode=text Sidhartha & Mayur Shetty, Tensions between Patel-led RBI, govt coming to a head?, October 29, 2018: ''The Times of India'']

In New Delhi and Mumbai’s corridors of power and money, the growing schism between the government and the RBI, and particularly its governor Urjit Patel, has been the subject of much talk since the early months of this year.

During this time, not only have the two not seen eye-to-eye on a host of issues, there has been an almost complete breakdown in communication between the government and RBI.

The simmering differences have now come to a head with RBI’s deputy governor Viral Acharya – who is widely seen to have been brought in by Patel from his professorial position in New York University – on Friday clearly hinting at government interference and emphasising the need for autonomy (TOI had front-paged his remarks in its October 27 edition).

The tension has triggered fevered speculation about Patel’s fate. Not only does he appear highly unlikely to get an extension beyond the threeyear term that ends next September, questions have arisen over his continuance. Patel did not respond to a message from TOI.

Some people in the NDA government have gone so far as to acknowledge in private that “even Raghuram Rajan was better than this” — and Patel’s predecessor didn’t leave on the best of terms.

''Govt, RBI clashes on at least 6 issues in ’18 alone''

A person in the NDA government told TOI a few months ago, “After Rajan, it’ll look bad if Patel is asked to go.” And people who have a sense of Patel’s thinking say that he knows the government won’t keep him on beyond his current term, so he doesn’t really care about being in its good books.

In 2018 alone, there have been at least half-a-dozen issues on which the two have taken opposing stands. While the spat began with the government unhappy with the inflation-focused RBI for not cutting interest rates – and even raising them – it spilled over into regulation, something the central bank believes is its exclusive domain.

RBI’s February 12 circular on classification of non-performing assets and norms of loan restructuring was the next flashpoint. The government saw it as overly harsh, and indeed it drove all but two staterun lenders into the red.

Around the same time, as the Nirav Modi fraud broke, the government hit out at RBI on supervision, drawing an almost-immediate rebuttal with Patel seeking more powers to oversee public sector banks so that they are at par with their private sector peers.

In addition, the government has been insisting that RBI step in to provide relief to non-banking finance companies (NBFCs), which are grappling with a cash crunch after IL&FS defaulted on repayments. The central bank has refused to play ball.

What has also irked the central bank brass is the way in which Nachiket Mor was removed from the RBI board more than two years before his term was to end without formally informing him. Mor’s removal was seen to be linked to his vocal opposition to the government's demand for a higher dividend.

In his strongly worded speech late last week, RBI deputy governor Viral Acharya said, "Governments that do not respect central bank independence will sooner or later incur the wrath of financial markets, ignite economic fire, and come to rue the day they undermined an important regulatory institution".

Patel is said to have virtually been incommunicado for the past three days, heightening suspense ahead of Monday's meeting of the RBI board, the second such interaction in less than a week. Last week’s meeting was stormy by most accounts with recently-nominated director and SJM activist S Gurumurthy seeking RBI’s intervention to help small businesses, while government nominees made a detailed presentation on the need to bring capital norms in line with global standards instead of making them stiffer. The change is seen to be crucial to get weak banks that are now under RBI’s prompt corrective action out of the classification. This would lift some of the curbs on their lending and expansion.

In remarks made on Saturday that were seen to be in response to Acharya’s, although he didn’t name RBI, finance minister Arun Jaitley said regulators need to have wide-ranging high quality discussion with all stakeholders. “I think, for any regulatory mechanism, stakeholder consultation has to be of a very high quality, which will probably lead to a revisiting of traditional thoughts and opinions. And that’s why, (when) several regulators now publish their approach papers or tentative drafts, they hold hearings, meet individuals, meet groups of stakeholders together and improve upon what’s being said.”

A separate payments regulator has been another friction point with RBI stating its position publicly on why it did not support the move. In fact, it went to the extent of releasing its dissent note on a separate regulator on its website.

People in the government said the tension should not be seen through a government versus regulator prism. They argued that the onus of taking the board along rests with the governor.

They also denied it was trying to encroach on RBI’s turf, but added that institutional autonomy should be a means for achieving faster growth rather than an end in itself.

===2018, Nov: The appearance of a truce===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar00314&sk=1E299772&mode=text Sidhartha, RBI resisted acting on Nov board deal, December 11, 2018: ''The Times of India'']

In the hours that followed the marathon November 19 RBI board meeting, there was a conscious effort – especially by the external directors and government nominees – to paint a picture of cordiality. The impression sought to be conveyed was that the RBI had come around to the government’s way of thinking on several key issues.

But the ceasefire proved ephemeral. A committee which was to be constituted by the RBI and government to review RBI’s capital reserves has yet to see the light of day.

Similarly, when the RBI’s Board for Financial Supervision (BFS) met last week, it did not consider the government’s demand for a review of the PCA (prompt corrective action) framework.

'''RBI-govt communication breakdown again evident'''

Many in the government believed that RBI, led by governor Urjit Patel, was “circumventing” board decisions despite the fact that they had been communicated through a formal statement after the November 19 meet. They had earlier pointed out that Patel and his deputies had abruptly wrapped the October 23 board meeting and refused to disclose even the decisions on which there had been an apparent consensus.

That Patel was not at ease with the government’s push for a review of the ECF was evident from his statement to a parliamentary panel (reported by TOI on November 27) that the RBI’s current level of reserves were necessary as a buffer against international volatility and to maintain creditworthiness.

At the next board meeting of the central bank on December 14, the government was expected to ask for a relook at RBI governance structure, with greater oversight by the board. There was a view in the government that the RBI had in the past kept the board out of the picture and taken key decisions in committees packed with hand-picked members.

While breaking the story about the stand-off between the RBI and the government TOI had said there had been a “complete breakdown in communication” between the two.

===The big issues: from IBC to Sec 7===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar02000&sk=F4E39ABC&mode=text Clash course: From IBC to Sec 7, December 11, 2018: ''The Times of India'']

''RBI’s Feb 12 Diktat That Patel Wouldn’t Dilute Put Govt, PSBs On Sticky Wicket''

A key reform measure — the Insolvency and Bankruptcy Code (IBC) — was the trigger for the RBI’s February 12 circular, which turned out to be an inflection point in the relationship between the government and the central bank.

On February 12, the RBI did away with all restructuring scheme, which effectively gave borrowers more time to repay. The central bank’s rationale was that now there was a new law that enables banks to recover money and there was no need to kick the can further down the road. This put the government — the owner of public sector unit (PSU) banks — in a spot as PSU banks now needed more capital then envisaged. Loans had to be classified as defaults before being referred under the IBC and bad loans did soar as delayed repayments were not condoned. While the Centre did not attack the February 12 circular directly, it used the Nirav Modi scam, which broke soon after, to criticise the central bank.

Patel, in a speech at Gandhinagar in March 2018, hit out at the government stating that “success has many fathers, failures none. Hence, there has been the usual blame game, passing the buck, and a tonne of honking”. He then listed out seven legislative provisions that ensured that the RBI did not have much of a say in PSU banks. While the February 12 circular was a reform measure aimed at cleaning bad loans, its timing turned out to be disastrous. Banks were hit by a triple whammy — bond losses due to rising rates, over Rs 20,000-crore provision for Nirav Modi/Gitanjali accounts and additional provisions for non-performing assets (NPAs). Overall PSU bank losses crossed Rs 60,000 crore.

Many in the finance ministry were upset as the high NPAs triggered the imposition of prompt corrective action (PCA) on half the public sector banks and scuppered all plans of boosting growth through increased lending. Ministry officials compared the RBI action on PSU banks of forcing a patient to run a marathon when he was not fully out of the ICU.

What spoiled relations further was Patel’s refusal to engage with ministry officials or even other ministers. Nitin Gadkari, minister of road transport and highways, said in a forum addressing businessmen that his personal experience of dealing with the RBI was not good. Other ministers are known to have complained after filing to to get an audience with the governor.

It was ultimately the differences over NPA classification that led the government to the path of Section 7 of the RBI Act, which empowers the government to give directions to the central bank. When the power producers challenged the RBI’s circular in the Allahabad high court, the government which was a party said that it did not have any objection. It was at this point that the court observed that the government could consider giving directions to the RBI on the issue. While the government did use the Section 7 threat, it was on a host of issues and not just non-performing assets.

=== Dec/ Gov. Urjit Patel resigns ===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar00311&sk=44E0E5AB&mode=text Mayur Shetty, Sidhartha & Surojit Gupta, After ‘truce’, Urjit stuns govt; is 1st guv post-reforms to quit RBI, December 11, 2018: ''The Times of India'']

[[File: In Dec 2018, Urjit Patel resigned, becoming independent India’s second governor to quit before the expiry of his term.jpg|In Dec 2018, Urjit Patel resigned, becoming independent India’s second governor to quit before the expiry of his term <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F12%2F11&entity=Ar00311&sk=44E0E5AB&mode=text Mayur Shetty, Sidhartha & Surojit Gupta, After ‘truce’, Urjit stuns govt; is 1st guv post-reforms to quit RBI, December 11, 2018: ''The Times of India'']|frame|500px]]

'''What''': Reserve Bank of India (RBI) governor Urjit Patel resigned from the post on Monday citing ‘personal reasons’. His term was to end in September 2019. One of RBI’s deputy governors may take charge as the interim head till government finds a successor. The names doing the rounds for the next governor include Subir Gokarn (executive director IMF), SC Garg (economic affairs secretary) and Rajiv Kumar (secretary, financial services).

'''History''': Patel is independent India’s second governor to quit before the expiry of his term over differences with the finance minister. Benegal Rama Rau, RBI’s second governor, had quit in 1957 after complaining about ‘rude’ finance minister TT Krishnamachari. RBI’s first governor, Osborne Smith, an Australian, had also quit in 1937 for not toeing the British government line.

'''Why'''? Differences with the Centre over RBI’s decisions and its functions may have prompted the resignation. Government and RBI were not on the same page (and the differences were public) on issues like the use of RBI’s surplus reserves, handling of weak banks, funds for shadow banks, and interest rates. For the first time in history, the government had invoked its powers to instruct the central bank on certain issues. A sudden overactive RBI board (filled with government nominees), which used to be only an advisory body, could be another factor. “This should be seen as a statement of protest,” said former RBI governor Raghuram Rajan.

'''So what'''? It’s not normal. Patel is the first governor since the 1990s to have quit before completing his term of three years. Raghuram Rajan says, “All Indians should be concerned about Governor Patel's resignation.” It’s not a good sign for RBI’s autonomy. An independent central bank is a check on the government, who may be keen to push for an easier way to prosperity for short-term gains. The move will also impact foreign investors’ perception of the Indian economy.

'''Why now'''? There are various theories doing the rounds. Theory 1: A board meeting was slated for December 14 in which he would have been forced to endorse decisions he didn’t favour. Theory 2: He offered to quit on November 9, the day he met PM, but was asked to stay till polls.

=Issues=
==2016/ Questions Post-Demonetisation ==
[http://indiatoday.intoday.in/story/demonetisation-rbi-banks-atm-modi-cash-crunch/1/834876.html Usha Thorat , The promise to pay the bearer “India Today” 15/12/2016]

"The RBI's responsibility is to ensure enough clean currency notes in the denominations required for day-to-day transactions in all parts of the country," said former deputy governor of the Reserve Bank of India,Usha Thorat.

There are many questions people are asking on the demonetisation move and the currency situation in the country. Some of the top-of-the-mind ones are quoted below, and these are my answers:

How does the RBI decide how much currency to print? What say does the Centre have in such a decision?

The RBI's responsibility is to ensure enough clean currency notes in the denominations required for day-to-day transactions in all parts of the country. The RBI makes an annual assessment of the demand for currency. Currently, currency constitutes about 12 per cent of GDP. Hence if the pace of digitisation is the same as the growth in GDP, currency demand should be at least equal to GDP growth (in nominal terms) unless we are pushing for a higher pace of digitisation. Also, seasonal factors affect currency demand-we witness higher demand during harvesting time, festival time and even election time. Finally, there is replacement demand, i.e., soiled notes have to be taken out, and good, clean notes put back in circulation. After making the estimate and deciding on the denomination-wise requirement, indents are placed with the note presses. This exercise is done in consultation with the Government of India.

Why couldn't the RBI have printed notes faster? If the Indian presses couldn't cope with the print load, why not do it abroad?

The trade-off is between ensuring secrecy and having sufficient time to print and stock for remonetisation. The reports seem to suggest that 2 billion notes of Rs 2,000 were got ready prior to announcement. Against notes in circulation of over 15 billion pieces of Rs 500 and 6 billion of Rs 1,000, the annual supply from both the presses together was one-third in each of these two denominations in the past two years. Since the announcement, it is presumed the note printing presses have stepped up production of the Rs 500 and Rs 100 notes. Importing notes to remonetise could be thought of, but the capacity to print currency notes globally is limited and restricted to a few companies. Further, there would be considerable lead time involved. It may not serve the purpose.

What was the total cash in circulation prior to demonetisation? What was the amount held as cash reserve ratio (CRR) by banks and the RBI? And who holds it, and is it held in the form of cash?

Prior to demonetisation, currency or cash in circulation (as on November 4) was Rs 17.7 lakh crore; as on November 25, the figure dropped by Rs 6.1 lakh crore to Rs 11.6 lakh crore. Currency in circulation is a liability of the RBI. It is held either by the public or by banks that have some currency in their vaults; the latter forms a very tiny part of currency in circulation. Banks do not hold cash reserves in the form of currency-these are held as deposits with the RBI and are reflected as liabilities on the RBI balance sheet.

How does the RBI invest its reserves? What does it do with the profit it generates from this?

The RBI earns income from its investments in various assets. The major component of the RBI's assets-roughly 72 per cent-represents the foreign currency assets held in permitted investments abroad. Gold constitutes four per cent of the RBI's assets while Government of India securities account for 22 per cent. In 2015-16, the RBI income was Rs 80,870 crore, of which Rs 74,924 crore was interest income. Interest on foreign securities accounted for 32.5 per cent of interest income and that on government securities 57.5 per cent. Section 47 of the RBI Act states that after making provisions for bad/doubtful debts, depreciation in assets, contribution to the staff and superannuation fund and for all matters for which provisions are to be made by or under the Act or that are usually provided by bankers, the balance of the bank's profits is to be paid to the Central government. Printing of currency notes, employee costs and agency charges (paid to banks to conduct government business) accounted for 84 per cent of RBI expenditure in 2015-16. The surplus profits transferred to the government for the year was Rs 65,876 crore and represented 99.99 per cent of gross income less expenditure.

At the end of the demonetisation drive, what happens to the extinguished cash? Does it hand over this money to the GoI to spend as it wishes or retain it as profit after lessing the cost to print new notes?

At the end of the demonetisation drive, the currency notes returned to the RBI will be shredded, presumably after checking for fakes. The RBI's supply of notes to the public may or may not be equal to what was in circulation before the November 8 measure. While restrictions cannot be placed indefinitely on cash, temporary limits can be justified citing the time taken to print the required amount of currency. Regarding the RBI's liability on demonetised notes that have not been exchanged/deposited in bank accounts, the central bank governor, in a recent press conference, stated that it continues in the bank's balance sheet as of now. This is because the last date for surrender at the RBI counter has not yet been notified (March 31 was mentioned as a date in the PM's speech). There is a view that the RBI's liability ceases only when the last date for exchange at the bank's counter is notified through a legislative process. At such a juncture, to the extent liabilities are extinguished, assets could be contracted through retirement of government debt held by RBI and/or creating a reserve at the bank to the same extent. It may not be prudent to transfer the amount to the government without assessing the macroeconomic implications, and the monetary conditions required, for achieving the inflation target set by the RBI.

Are the new currency notes harder to counterfeit?

One of the objectives of demonetisation is to guard against counterfeiting. Several security features are built into the notes to prevent counterfeiting. The government has announced that the new notes contain several new features that were not there earlier and would be difficult to forge. Other measures taken by the RBI to enable detection of forged notes are to improve awareness among the lay public on how to detect forged notes and to encourage shops and retail outlets to instal note-sorting machines. All banks are mandated to sort out the notes received by them over the counter through a note sorting machine that can detect forgery and ensure that they issue only genuine notes back into circulation.

Usha Thorat is a former deputy governor of the Reserve Bank of India

=Monetary Policy Committee, 2016=
[http://www.thehindu.com/business/Economy/centre-notifies-amended-rbi-act-to-usher-in-monetary-policy-committee/article8780360.ece ''The Hindu''], June 28, 2016

The Centre brought the Monetary Policy Committee (MPC) one step closer to reality by notifying the changes made to the Reserve Bank of India (RBI) Act in June 2016.

The six-member Committee — tasked with bringing “value and transparency to monetary policy decisions” — will comprise three members from RBI, including the Governor, who will be the ex-officio chairperson, a Deputy Governor and one officer of the central bank.

'''Composition'''

The other three members will be appointed by the Centre on the recommendations of a search-cum-selection committee to be headed by the Cabinet Secretary.

“These three members of MPC will be experts in the field of economics or banking or finance or monetary policy and will be appointed for a period of four years and shall not be eligible for re-appointment,” according to the statement.

The Committee is to meet four times a year and make public its decisions following each meeting.

[[Category:India |R ]]
[[Category:Economy-Industry-Resources |R ]]

[[Category:India |R ]]
[[Category:Economy-Industry-Resources |R ]]

[[Category:India |R ]]
[[Category:Economy-Industry-Resources |R ]]

=Policy reviews=
2014: ''' RBI shifts to bi-monthly policy review '''

TIMES NEWS NETWORK

[http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2014/03/12&PageLabel=25&EntityId=Ar02509&ViewMode=HTML ''The Times of India'']

Mumbai: The Reserve Bank of India will shift to a system of announcing its policy statement bi-monthly with the first such policy being announced on April 1, 2014. Bankers widely expect RBI to hold on to rates given that pressure on inflation is easing and the rupee has also been firming up.

Until the mid-90s, RBI had only two monetary policy reviews a year. After Bimal Jalan took charge as governor in 1997, he introduced quarterly reviews. His successor Y V Reddy introduced a mid-quarter review, which resulted in an announcement every 45 days.

A panel headed by RBI deputy governor Urjit Patel had recommended that the central bank monetary policy committee meet every two months to review rates.

=Reserves=
==What is the appropriate level of reserves?==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F16&entity=Ar02414&sk=A414CAD4&mode=text November 16, 2018: ''The Times of India'']

'''HOW MUCH RESERVES ARE ENOUGH FOR RBI?'''

RBI has accused the govt of trying to raid its coffers to bolster its revenues, which is one of the flashpoints in high-profile turf battle. The finance ministry has rejected the claim and suggested that there is a need to discuss how much capital RBI needs to deal with contingencies

'''Clarification'''

The Centre clarified that it wasn’t going to raid Reserve Bank of India’s reserves for Rs 3.6 lakh crore of ‘free money’ but it also said that it was in discussion to fix ‘appropriate economic capital framework’ of the central bank

'''Conditions apply'''

The framework the government is talking about is basically about how much capital RBI needs for its operations and how much of the surplus it should pass on to the government. This essentially means that Centre may not have asked for a specific amount (Rs 3.6 lakh crore) but it wants to ‘fix’ the process and that may end up giving it even more than that

'''Why fix?'''

The government believes that RBI is sitting on much higher reserves than it actually needs to tide over financial emergencies that India may face. Some central banks around the world (like US and UK) keep 13% to 14% of their assets as a reserve, compared to RBI’s 27% and some (like Russia) more than that. Each central bank assesses its risk and reserve requirements according to its past experience and future likelihood of the scale and kind of crisis

'''Old problem'''

Economists in the past have argued for RBI releasing ‘extra’ capital that can be put to productive use by the government. Former chief economic adviser Arvind Subramanian had argued for it (he had mentioned Rs 4 lakh crore). The Malegam Committee estimated the excess (in 2013) at Rs 1.49 lakh crore

'''How much?'''

RBI’s held total assets worth Rs 36.17 lakh crore on June 30 on its balance sheet. At 27% of this, the central bank would have around Rs 9.7 lakh crore as reserves. If it were to bring it down to 14% as the government probably wants, it would be left with about Rs 5 lakh crore. That means an excess capital of Rs 4.7 lakh crore to be handed over to the government

'''Why now?'''

With a general election looming early next year, analysts believe the cash-strapped government is trying to stimulate the economy with a big public spending spree to woo voters, says a report

'''What next?'''

The RBI governor, Urjit Patel, some say, has two options: to agree to his employer (the government) or leave the job. RBI deputy governor, in his (now controversial) speech, had referred to the resignation of Argentina’s central bank head for a similar reason of refusing government’s order to transfer the central bank’s reserve to pay foreign debt

==As in 2018, Mar==
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F20&entity=Ar02103&sk=6959637B&mode=text Mayur Shetty, RBI saves its current reserves, but govt expects more next year, November 20, 2018: ''The Times of India'']

[[File: RBI's reserves as on March 31, 2018.jpg|RBI's reserves as on March 31, 2018 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F20&entity=Ar02103&sk=6959637B&mode=text Mayur Shetty, RBI saves its current reserves, but govt expects more next year, November 20, 2018: ''The Times of India'']|frame|500px]]

The Reserve Bank of India (RBI) has managed to protect its Rs 9.7-lakh-crore reserve kitty with its board agreeing to have a panel determine how much capital it needs to maintain and how much can be distributed from future surplus to the government. The Centre has also not lost as prospects of a higher share of future surplus allows it to budget for a larger chunk of revenues from the central bank in its ‘Vote on Account’ for next year.

“The RBI board decided to constitute an expert committee to examine the Economic Capital Framework (ECF), the membership and terms of reference of which will be jointly determined by the government and the RBI,” the central bank said in a statement.

The ECF refers to a formula for deciding the capital adequacy ratio for RBI. This is a positive development for those fearing that the government will tap into existing reserves of the central bank.

Of the existing reserves, a bulk of the funds are in contingency funds and in revaluation reserves. The contingency reserves, by definition, cannot be touched except in a crisis. To tap revaluation reserves, the RBI will have to sell assets and shrink its balance sheet. This will upset the money supply in the economy. Even if the to-be-constituted committee recommends higher transfers to government, it will result in lesser accretion to reserves and will not deplete the RBI’s balance sheet.

It was earlier speculated that the Centre might press for the RBI transferring a third of its Rs 9.7-lakh-crore total reserves to the government. The speculation was based on some reports stating that RBI holds over Rs 3 lakh crore of surplus reserves.

A higher surplus transfer for 2018-19 is likely because the central bank’s earnings are expected to be much more robust than 2017-18. In the current fiscal, the RBI has been intervening heavily in the foreign exchange and bond markets. The central bank’s earnings soar whenever there is forex volatility as it ends up making profits while selling dollars. For 2017-18, the RBI transferred a dividend of Rs 50,000 crore to the government.

Former governor Raghuram Rajan had proposed a formula-based model for fund transfer to the government. He had also warned against liquidating assets to transfer funds to government, stating that to neutralise the impact, the RBI would have to conduct money market operations by selling bonds. If the government had to issue fresh bonds in order to receive money from the central bank, it would be in the same position as before.

==2018: the position in other countries==
[[File: Equity as % of Central Banks' Balance Sheets in major countries, presumably as in 2017.jpg|Equity as % of Central Banks' Balance Sheets in major countries, presumably as in 2017 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F11%2F21&entity=Ar02901&sk=34D2A259&mode=text Sidhartha, November 21, 2018: ''The Times of India'']|frame|500px]]

'''See graphic''':

''Equity as % of Central Banks' Balance Sheets in major countries, presumably as in 2017''

=See also=
[[Banking and the law: India]]

[[Raghuram Rajan]]

Sree Padmanabhaswamy Temple

2019-02-17T15:50:21Z

Shivam: /* Fearing the rage of the diety */

[[File: Sree Padmanabha Swamy Temple in Thiruvananthapuram.jpg|Sree Padmanabha Swamy Temple in Thiruvananthapuram|frame|500px]]

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[[Category:India |S ]]
[[Category:Places |S ]]

=Taboos and superstitions=

''' When the man held responsible for opening long-bolted vaults at the Sree Padmanabha Swamy temple died recently, many whispered it was divine retribution. But places of worship across the country have strange superstitions '''
Shobha John | TNN

The Times of India, July 24, 2011

India is a land of contradictions. While cutting-edge technology drives us forward, religious superstitions which befuddle the mind take us in the opposite direction. Even the sudden death of advocate T P Sundararajan, whose legal intervention led to stock-taking in Sree Padmanabha Swamy temple, was said to be “divine retribution”. Was it? Who can tell?

Superstitions abound all over India. Who are we to tempt the gods, ask believers. Take Renuka Temple in Kullu where goddess Renuka Devi is worshipped. Villagers are so fearful of inviting the wrath of her husband, Rishi Jamdagni, that they dare not look at her idol. Even the priest enters only after covering his face with a white cloth during Navratra and Fagli when the temple door is opened. Women throw their offerings from afar.

Shobha Ram, the priest, explains: “Everybody is aware of Jamdagni’s rage. He once got so angry with his wife that he ordered his son Parshuram to kill her.” Bir Singh Rana, a devotee, says he has never peeped into the temple. “Jamdagni’s curse can remain for more than 12 years. A woman lost her eyesight when she looked at the idol.” Believe it or not.

=Fearing the rage of the diety=
The Times of India, July 24, 2011

Ananthakrishnan G

There is fear that if the beliefs of the Sree Padmanabha Swamy temple aren’t honoured, the deity will be annoyed. From untimely deaths to warnings of natural disasters, the air is rife with rumours about the “retribution'' the evil-eyed have “brought upon themselves” in the past. The sudden death of T P Sundararajan, the man who got the temple vaults open, has only fuelled them. “This is just the beginning. Wait and watch,'' says one of his neighbours ominously.

“That's not right,” insist a temple priest, who is annoyed with the present administration of the shrine. “He was an ardent devotee and died a peaceful death.” But, locals still remember the difficulties faced by three persons who had entered the cellars of the temple in the past. “They didn’t survive for long,'' says a local man. But the families of two of them dismiss the rumours. “I don’t see any connection,” says Jalaja, the widow of former temple executive officer Col K Gopinathan Nair. He was entrusted with the job of gold plating parts of the main altar during the time of Chithira Thirunal Balarama Varma, the previous king. Some gold was taken out of the cellar for the job. “It used to be weighed in the presence of the king and other officials,” she reminisces. Both deaths occurred over a span of 18 months, says the other family.

As for stories of sound of ocean waves in the temple, historian M G Sasibhushan says it’s believed that there were underground escape tunnels from the temple to the sea and from the palace.
= Treasures =
== Vault B ==
[https://www.indiatoday.in/magazine/states/story/20170724-kerala-padmanabhaswamy-temple-treasure-vaults-supreme-court-1024137-2017-07-15 Jeemon Jacob , The vault B conundrum “India Today” 24/7/2017]

The Padmanabhaswamy temple in Thiruvananthapuram, arguably the world's richest Hindu shrine, is back in the headlines, following the Supreme Court's queries on the possibility of opening the last of the temple's vaults, believed to contain priceless treasures. Chief Justice J.S. Khehar's observations about Vault B on July 4 provoked a shrill debate on whether tinkering with 'God's wealth' was within the judiciary's ambit. Aditya Varma, who represents the erstwhile Travancore royal family, one of the SC-appointed temple custodians now, objected vehemently, insisting that faith and tradition decreed that Vault B remain untouched. "We will act according to the advice of the chief priest," Varma said on July 8.

The treasures, devotees believe, are contained in 12 iron vases placed inside the twin chambered vault that extends beneath the sanctum sanctorum. Like the ex-royals, the temple's chief priest, Pushpanjali Swamiyar, too, is against opening the vault. He believes doing so would invite the god's wrath.

But in 2014, former comptroller and auditor general Vinod Rai, appointed special auditor to scrutinise the temple's assets, had reported that Vault B had, in fact, been opened seven times-"twice in 1991 and five times in 2002". Rai also said that there were no credible accounting practices in place at the temple. This, and a related report by senior lawyer Gopal Subramaniam, were acutely embarrassing for the Travancore royals (the family affidavit to the courts had said that they had never opened Vault B).

The debate is already taking on political colours. Kerala BJP chief Kummanam Rajasekharan says the devotees must be consulted before the vault is opened "so that religious sentiments are not hurt". The Pinarayi Vijayan-led Left Democratic Front government, however, insists that an inventory is the only way of securing the temple's wealth.

An inventory of Vault A's contents in 2011 yielded treasures worth Rs 1.25 lakh crore, the reason why Kerala is agog with the issue. What wonders lie in Padmanabhaswamy temple's last vault?

Janice Pariat

2019-02-17T06:22:14Z

Shivam: /* Awards */

[[File: Janice Pariat.jpg|Janice Pariat. Photo: Luigi Russi |frame|500px]]
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[[Category:India |P]]
[[Category: Literature |P]]
=Sources include=
[http://janicepariat.com/about/ Janice Pariat]
[http://www.goodreads.com/author/show/5300146.Janice_Pariat Good Reads]
=Janice Pariat=
Janice is a writer based between London and New Delhi/Shillong (depending on the weather).

Studied English Literature at St Stephen’s College, Delhi, and History of Art at the School of Oriental and African Studies, London.

Pariat worked as the Arts Writer at Time Out Delhi, after which she spent time in Shillong writing prose and poetry.

She edited an online literary journal called Pyrta. Her short story collection, Boats on Land, was published by Random House in October 2012.

Janice Pariat is the author of Boats on Land: A Collection of Short Stories (Random House India, 2012). She was awarded the Yuva Puraskar (Young Writer Award) from the Sahitya Akademi (Indian National Academy of Letters) and the Crossword Book Award for fiction in 2013. Her work—including art reviews, cultural features, book reviews, fiction and poetry—has featured in a wide selection of national magazines & newspapers.

She writes a monthly literary column “Paperwallah” for The Hindu BL Ink. In 2014, she was the Charles Wallace Creative Writing Fellow at the University of Kent, Canterbury. Currently, she lives in Italy and India. Her first novel Seahorse was published by Vintage Books, Random House India in November 2014

Her work has featured in a wide number of national magazines & newspapers including OPEN, Art India, Tehelka, Caravan: A Journal of Culture & Politics, Outlook & Outlook Traveller, Motherland, and Biblio: A Review of Books, among others
=Her books=
==“Seahorse: A Novel”==
Nem is a student of English literature at Delhi University. He drifts between classes, weed-hazy parties, and the amorous complexities of campus life, until a chance encounter with an art historian steers him into a world of pleasure and artistic discovery. Nem’s life is irrevocably transformed. One day, without warning, his mentor disappears.

In the years that follow, Nem cocoons himself in South Delhi, writing for a chic cultural journal. When he is awarded a fellowship to London, a cryptic note plunges him into a search for the art historian—a search which turns into a reckoning with his past. Retelling the myth of Poseidon and his youthful male devotee Pelops, Seahorse transforms a simple coming-of-age story into an epic drama of loss, love, and healing.
=== Sanjay Sipahimalani/ ''India Today'': Review ===
''' Mosaic of remembrance ''' [http://indiatoday.intoday.in/story/janice-pariat-seahorse-boats-on-land/1/407663.html ''India Today''] December 19, 2014

Written in a folkloric style best described by the epigraph that referenced Alejo Carpentier's "marvellous real", Janice Pariat's collection of short stories, Boats on Land (2012), was notable for its evocation of lives past and present in Shillong and its environs. With Seahorse, her debut novel, Pariat extends her range to come up with a filigreed tale of disquiet and discontent, of longing and loss, based on the Greek myth of sea-god Poseidon and his young acolyte and lover, Pelops.

Much of Seahorse is about the inscription of desire on the slate of memory. "We are shaped by absence," thinks Nem. "The places that escape our travels, the things we choose not to do, the people we've lost." (A sentence that brings to mind the words of the recently deceased Mark Strand: "In a field/ I am the absence/of field. / This is/always the case./ Wherever I am/ I am what is missing.") This sentiment is matched by a mode of narration that, for the most part, shows incidents broken up into separate sequences of action and aftermath; a wholeness comprised of fragments, a mosaic of remembrance and yearning.

It is also the case, however, that the novel sags slightly in the middle, during the long episodes of Nem's life in London-despite the attempt to provide a harmonic resonance via the loops of longing and variations of sexual attraction that Nem's friends experience. Then, there are occasions when the poetic threatens to tip over to the portentous ("Prophecies are the most scientific of supernatural phenomena, for they, like science, invest in a single outcome. The one truth."). In addition, the accident in the English countryside at the end, though it continues the mythic parallelism, does come across as a trifle staged and out of place with Seahorse's otherwise wistful, gentle tone.

Leaving all of that aside, Pariat's prose is beguiling: take, for instance, her pithy descriptions of interiors and exteriors. It's a pleasure to read of the "pale fury" of the Red Fort; of rooms "as desolate as churches"; of the wings of a building "spread long and low, like a bird in flight"; of London being "filled with old light"; and of a "bigbellied sky" pressing against the tops of buildings. Appropriately enough, Seahorse is also shot through with images of water, be they in aquariums, swimming pools or the seaside.

The paradox of memory, writes Pariat, "is that it gives you back what you had on condition that you know it has been lost". To regain it, she continues, "you must remember it has gone; to remake the world, you need to first understand that it has ended". Seahorse, then, is a fine and estimable account of the refashioning of an interior world suffused by a pining for what has been lost.

==“Our Names”==
A collection of poems inspired by the poet’s hometown Shillong, by the Khasi language and its special orality. By travel. To Wales, Lisbon, London. And finding a sort of home everywhere. The poems revel in a sense of place, and also placelessness. In seeking and losing, in love and depletion. They are miniature windows with which to look into the world with disconcertion – yet also, wonder. Written at desks and airplanes, on residencies and cellphones, while travelling and moving, while being still. They are offerings.

Forthcoming December 2014 with a preface by Robin Ngangom
== Boats on Land==
Boats on Land (Random House, India; 2012) won the Sahitya Akademi Young Writer Award 2013 and the Crossword Book Award for Fiction. Set in India’s northeast—around Shillong, Cherrapunjee and pockets of Assam—these tales are shaped against a larger historical canvas of the British Raj, the World Wars, conversions to Christianity. This is a world where the everyday is infused with the folkloric and supernatural. Here, a girl dreams of being a firebird. An artist watches souls turn into trees. A man shape-shifts into a tiger. Another is bewitched by water fairies. Political struggles and social unrest interweave with fireside tales and age-old superstitions.

=Pariat's online works=
[http://www.caravanmagazine.in/fiction/boats-land Read 'Boats on Land' here.]

[http://www.caravanmagazine.in/fiction/hong-kong Read 'Hong Kong' here.]

=Reviews=
''' Asian Review of Books '''
Pariat’s stories excavate the mystical and the vulnerable with nuanced, intense text, furtively capturing moods of displacement and stillness. ”

''' India Today '''
Perhaps the most frustrating thing about reading Boats on Land is seeing how good a book it could be. ”

''' The Sunday Guardian '''
Janice deliciously underplays her settings and is adept at conveying both atmosphere and character. Even her ambiguities have a queer beauty. ”

''' People '''
The beauty of Janice’s prose is a feast for the senses. ”

''' Biblio: A Review of Books '''
Boats on Land is a masterful rendition of the shimmery and fleeting, the haunting and disappearing, the complex and yet simple nature of a people perhaps lost, perhaps gone forever, but caught, only transiently, in the stories. ”
=Awards=
Crossword Book Award 2013 for Fiction

Yuva Puraskar (Young Writer) Award 2013 from Sahitya Academy (Indian National Academy of Letters)

Shortlisted for Shakti Bhatt First Book Award 2013

Longlisted for Frank O’Connor Short Story Award 2013

Longlisted for Tata Literature Live! First Book Award 2013

= 2018 =
[https://www.indiatoday.in/magazine/leisure/story/20180129-author-janice-pariat-new-book-the-nine-chambered-heart-1149652-2018-01-19 Sukant Deepak , Janice in wonderland “ India Today” 29/1/2018]

Janice Pariat walks up fast to the first floor of the cafe-cum-bar in Delhi's Khan Market. It's evident from the sound of her boots. She is heaving. She is carrying many bags. She sits and orders her coffee. She likes it black. She does not stop smiling.

Fresh off the launch of her latest novel, The Nine Chambered Heart, the Sahitya Akademi Award winning author and poet says the idea for the book came to her on the streets of London. It was late evening. She was walking with someone who she thought she would have a long-term relationship with. "I wondered how would it be to look at the world through love," she says. Then she pauses.

In her book, characters remain unnamed, and so do the cities. There is a deliberate attempt to break away from geographical anchorage. What is offered is a glimpse into a young woman's life through those who have loved and lost her. And those she has loved and lost. Pariat says that it was important for her to write a "context-less book" because she does not see the world in neatly labelled boxes. "Compartmentalisation can be convenient. Limiting too."

As someone who comes from a mixed British, Portuguese and Khasi heritage, Pariat, originally from Meghalaya and now based in Delhi, is all too familiar with being categorised. Most often, she's called a "Northeastern writer".

"This really upsets me," she says. "Why does everyone, including a writer, have to be contained in her/ his geography, gender or sexual orientation?" Though she may be called poet too, Pariat thinks that's overstating the case. "I have friends who are poets. I might put down something that has the essence of verse. But the craft? Well, I do learn a lot from poetry, but take comfort and recourse in prose."

By now, the cafe is full. Waiters have got active. She says she should leave, that the many bags need to be filled. Janice Pariat descends the stairs. Soundlessly.

Supreme Court: India

2019-02-17T05:57:55Z

2019-02-17T05:52:57Z

Shivam: /* 2018, Jan: Four SC judges’ press conference */