ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by N A MujumdarSubscribe to N A Mujumdar

Financial Sector Reforms-An Exercise in Introspection

Financial Sector Reforms An Exercise in Introspection N A Mujumdar While the financial sector reforms have improved the viability and competitiveness of public sector banks, two bask features of the reforms deserve attention.

New Banking Culture and Small Borrower

The new banking culture nurtured by the economic reforms is alienating not only the small borrower but also the small saver.
THE reforms in the banking sector, introduced since mid-1991 initially as part of the macro-economic adjustment programme, have changed the profile of Indian banking, particularly of public sector banks. No longer, is it now possible to camouflage inefficiencies of banking under the garb of 'social banking'. Profitability has emerged as the single-most important criterion for judging the operational efficiency of individual banks. As the Reserve Bank of India (RBI) put it: "Improving the profitability of banks would have to be a major pre-occupation..." Recapitalisation of nationalised banks, introduction of a system of income recognition, asset classification and provisioning, a greater degree of autonomy to banks in the interest rate regime, reduction in the non-performing assets (NPAs), and in the Statulory Liquidity Ratio (SLR) all these have changed the face of public sector banks. RBI deserves to be congratulated for transforming the profile of Indian banking in such a short span and so painlessly.

Refocusing on Rural Credit-The Macro-Dimensions

Refocusing on Rural Credit The Macro-Dimensions N A Mujumdar So long as there is mass poverty and unemployment and under employment art an alarming scale continue to haunt the economy, directed credit and concessional lending must continue to form an important ingredient of macro-economic financial policy.

Financial Reforms and Rural Development

Financial Reforms and Rural Development N A Mujumdar THE country is passing through an unprecedented economic crisis and since mid-1991 a series of measures, including the devaluation of the rupee in July 1991, were taken to face the crisis. Sweeping reforms like trade liberalisation, industrial decontrol and measures to attract foreign investment have been introduced. These are indeed far-reaching structural reforms which mark a complete departure from the basic approach to, and philosophy of, planning for development which we had adopted since 1951. These are not ad hoc measures but form part of the structural adjustment programme which is embodied in the Memorandum on Economic Policies submitted to the IMF in August

Agenda For Financial Reform

N A Mujumdar I AM grateful to Bhupat M Desai (August 11) for his appreciation of the main theme of my article (April 7) and also for lending further support to some elements of the theme. The purpose of my article would be served if experts like the pandits of the World Bank who authored the World Development Report, 1989 would moderate their uncompromising indictment of the state-regulated financial system by the recognition that such a system has, in the past, played and could play in future, a useful role in the process of development.

Financial Scenario in the 1990s-Agenda for Reform

Agenda for Reform N A Mujumdar The financial system in India is at the end of its first phase of development characterised by active state intervention to build up the institutional infrastructure and is now poised to enter the second phase of deregulation and rationalisation and simplification of controls. However, to think in terms of total financial liberalisation at this stage would be premature, current fashions notwithstanding. Sketching the broad contours of the financial scenario likely to emerge in the 1990s, the author proposes an agenda for financial with a view to ensuring that the financial system plays its supportive role in sustaining economic growth.

Monetary Targeting-Objectives and Appropriate Indicators

We in India have adopted monetary targeting when the major industrial economies are moving away from it. Fortunately, the modified version of 'monetary targeting with feedback

Banking Development in Sixth Plan-Some Issues

The strategy of growth envisaged in the Sixth Plan and the emphasis placed on increasing the share of credit from the public sector financial system going to small farmers and small industrial enterprises necessarily set the tone for future development of banking. This note seeks to draw attention to some of the issues involved in moulding the development of banking in accordance with these two aspects of the Plan strategy, THERE are two aspects of the Sixth Plan which may be said to set the tone for future development of banking: these are the strategy of growth and the emphasis placed on increasing the share of credit from the public sector financial system of small fanners and small industrial enterprises. The priority accorded to sectors "which generate the maximum employment and which have a significant impact on the standard of living of the poorest, like agriculture and allied activities, village, cottage and small industries''1 necessarily implies a more dispersed pattern of growth. Secondly, the Sixth Plan makes repeated references to the need for correction of a major imbalance in the distribution of credit: "... the major beneficiaries especially of the banking system have been the wealthier part of the population both in the urban and rural areas, and the vast majority have barely been touched."3 As a correction of this feature, redeployment of credit in favour of small fanners, agricultural labourers, artisans and small producers is envisaged. These two aspects of the Plan have important implications for planning both the future structure of the banking system and the deployment of credit.

Money Supply Analysis-Mechanistic and Economic Explanations

only hard study in government records rooms and newspaper offices, but also bard foot slogging from village to village in the area to be studied, for the best information will inevitably come from the peasants themselves. It is only after this has been done in key areas throughout India that we may be able to work out in a rather more concise manner exactly how politicisation has taken place amongst the Indian peasantry.

Rural Unemployment Measurement for What

N A Mujumdar To the dismay of the purists, it has been difficult to provide a precise assessment of the dimensions of rural unemployment in India. But is precise measurement the sine qua non of formulating policy measures designed to begin solving the problem ?

Intra-Sectoral Dualism and Agricultural Growth

In the theories of economic growth it is now usual to refer to a dual economy, i e, an economy with an advanced or modern sector as well as with a backward sector. The situation envisaged is that the economic system of an underdeveloped country may be divided into two sectors

Unequal Partners in Development

AN air of general scepticism surrounds the question of aid to developing countries nowadays, The very usefulness of aid, both to the donors and the recipients, is being questioned. The World Bank thought, therefore, that the wide range of problems relating to aid needed to be examined afresh and, with this objective, it appointed in August 1968 a Commission under the Chairmanship of Lester Pearson, a former Prime Minister of Canada, to undertake such a study. In addition to the Chairman, the Commission consisted of seven1 distinguished persons drawn from different walks of life, and it included Arthur Lewis. The Report 2 of the Commission, extending to 400 pages, was presented to the Annual Meeting of the World Bank in Washington on October 1, 1969. It has already been acclaimed "one of the most important documents of the twentieth century". The purpose of this article is to examine the more important of the recommendations of the Commission and to indicate briefly the impact that the Report is likely to have on the inflow of aid to developing countries.


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