Praxeology: My Reflexions on India

 Former RBI governor Raghuram Rajan and deputy governor Viral Acharya have jointly penned an article where they have criticized Narendra Modi government’s move of allowing big corporate houses to enter in the Indian banking sector. They said , Allowing Indian corporate houses into banking will lead to the concentration of economic and political power in these business houses and the exchequer could be faced with significantly higher bailout costs if these banks were to fail. And, The history of such connected lending is invariably disastrous — how can the bank make good loans when it is owned by the borrower? Even an independent committed regulator, with all the information in the world, finds it difficult to be in every nook and corner of the financial system to stop poor lending. Information on loan performance is rarely timely or accurate. Yes Bank managed to conceal its weak exposures for considerable periods. In this article I am going to rebut both Rajan and Achar

  In today’s highly volatile world, managing one’s financial resources to remain financially and economically secure is a top priority. We are in uncertain times like never before as no one knows what the next year or month or day will bring in front of us. Who would’ve thought that year 2020 will be a roller coaster ride like how it turned out to be? Who would’ve thought that they will suddenly lose their jobs and savings under the covid-19 lock down? Within few months, many people lost their lifetimes’ earnings and lives. Who would have thought that the banks in which they are saving their nest egg will suddenly close down and refuse to give them back their own money? But all these things have happened right in front of our eyes in recent times. Individuals need to learn some lessons from these events about managing one’s finances to secure their future. In this short article I want to discuss one such investment avenue of government bonds. Many Indians believe that inv