[Economy] Urjit Patel Committee: Fixing Accountability in RBI, Monetary Policy Committee, Decision by Majority, Fiscal Deficit (Part 2 of 2)

Economy44 Comments

India Yearbook
  1. Prologue
  2. #2: @RBI fix accountability in monetary policy making
  3. Monetary Policy Committee
    1. MPC Decision by Majority
    2. MPC: Accountability for #EPICFails
    3. MPC: Summary
  4. #3: @Government give Cover fire to RBI
    1. #: MNREGA:
    2. #: MSP
    3. #: Fiscal Deficit
    4. #: Loan Waiver
  5. Urjit Patel: Misc recommendations
  6. Mock Questions

Prologue

RBI had formed a Committee under Dy. Governor Urjit Patel to strengthen monetary policy framework. Committee gave three major recommendations:

  1. @RBI Target inflation (4% CPI; 2% band). Already covered in previous article click me.
  2. @RBI fix accountability (discussed in this article)
  3. @Government: help RBI fight inflation (in this article)

#2: @RBI fix accountability in monetary policy making

What is the existing mechanism in RBI?

  1. Governor: Selection by finance minister, approval by Prime minister, appointment by Government of India.
  2. Term: three years for Rajan.
  3. Eligible for re-appointment? Yes RBI Act provides for appointment of a governor for a period of up to five years.
  4. He is directly accountable to government of India.
  5. Government can even issue him directives in public interest.
  6. Rajan is also accountable to Parliament’s standing Committee on Finance. They can summon him. On and average, RBI governor has to appear before this Committee 3-4 times a year.

How is monetary policy formed right now?

  • At present, monetary policy is made by the governor alone.
  • Rajan does consult with his Dy. Governors, board of directors etc. but only Rajan’s signature necessary for approval file= meaning Rajan and Rajan only is the decision maker.

Some initiatives in recent times:

  • 2005: RBI governor started consulation meeting with noted economists, industrial bodies (FICCI etc) and Credit Rating Agencies (CRISIL etc.)
  • RBI’s annual reports put on the official website
  • Governor publishes quarterly reviews, and during the release, he answers media queries.
  • But overall, Monetary policy is still “one man” game, without any formal mechanism for ensuring participation and accountability.

Recommendations in Past:

Previous Committees Tarapore, Reddy, FSLRC etc. have directly/indirectly recommended that

  1. Monetary policy should be decided by a Committee
  2. Decision based on majority voting
  3. Publish minutes of such meetings on the website/media.
Mohanalright man now come to the point.
UrjitWell, Considering all of above facts and factors, I recommend that RBI should form a monetary policy Committee.

Monetary Policy Committee

Monetary Policy Committee

Total five people in this Committee:

  1. Chairman: Rajan himself (governor)
  2. Vice Chairman: Any one Dy Governor (RBI has total four governors)
  3. Members:
    1. One Insider:  RBI’s own Executive Director (in charge of Monetary policy).
    2. Two outsiders/External members:
      • Noted Economists, finance experts etc, who’re not office bearers in RBI.
      • term: three years
      • not eligible for re-appointment.

Outsiders: Safeguards and provisions

UrjitThe outsider members will have the right to assess all data/files/records in RBI office.But he cannot hold office of profit under the government.
MohanMeaning?
UrjitTo put this in crude words: he should not be on the payroll of the government. for example: IAS officers, bureaucrats, even certain bodies / corporations funded by the government.
MohanBut why?
UrjitGovernment may try to influence RBI’s decision making via such member- because his bread n butter depends on that job.
  • In all the advanced economies, monetary policy is made by a Committee of independent members- even in China, government directly doesn’t interfere with its officers/representatives.
  • Exceptions where government side is represented in Monetary policy Committee =Colombia, Philippines.

Conflict of Interest

UrjitSecondly, such outside member must not involve in any activity that has conflict of interest with RBI.
MohanMeaning?
Urjit
  • Consider HSBC, Morgant Stanley, JP Morgan Chase etc giants. They have license to operate as “Primary dealers” in India. Meaning they can directly buy and sell government securities. So, if monetary policy Committee member also provides consultancy services to such firms= there is conflict of interest.
  • What if he leaks information to that company, e.g. “RBI will start Open market Operation in week OR RBI is set to decide Repo rate @xx%.”
  • Those primary dealers could make windfall profits from such insider tips.

MPC Decision by Majority

UrjitMonetary Policy Committee (MPC) will decide the monetary policy by voting among themselves.
MohanBut what if there is a tie?
Urjit
  • Noone will be allowed to abstain from the voting. (unlike the CBI fearing parties in Rajya Sabha).
  • All five members must vote on each and every issue brought on table.
  • Since “5” is an odd number, there is no chance of tie.
MohanYa but what if one member is absent? Then four members left= 2 vs 2 tie possible!
UrjitIn that case Rajan (Chairman) will give the casting vote to break the tie.
MohanBut what if Rajan himself is absent? And there is 2vs2 tie?
UrjitThen Vice Chairman of the Committee (Dy.Governor) will give the casting vote to break the tie.
MohanBut what if He is also absent?
Urjitif both chairman and VC are absent, then common sense suggests we should postpone the meeting!
MohanOk one last doubt: you told there are five people in MPC Committee: three insiders (Rajan, Dy Governor and one member) vs two outsiders (external members).

  • What if one of the outsider member always gives dissenting vote….Ultimately, Rajan bhai’s goonda-log beats him to pulp to make sure he remains absent in the meeting.
  • and then Rajan bhai uses his own casting vote to decide policy according to his own whims and fancies!
  • How will you maintain accountability in that case? Solve it for [Ethics] GS4.
UrjitI’m not going to dignify that stupid question/case study with an answer. Let’s move to next topic:

MPC: Accountability for #EPICFails

  • In the previous article we saw the “Target”: RBI must control CPI within 2-6% range. (i.e. 4% CPI with +/-2% band)
  • EPICFAIL = When MPC fails to keep CPI within this range for three successive quarters. (meaning 3 x 3 = 9 months continuously CPI remains outside the [2,6] range.)

In case of such #EPICFAILs, Urjit Patel recommends

  1. MPC Must issue a public statement
  2. Every MPC member must sign it
  3. This statement will contain
    1. Why did we fail? (Reasons)
    2. How will we fix it (Future action proposed)
    3. By when will we fix it? (Timeframe)

MPC: Summary

STRUCTURETotal five persons.

  1. RBI governor as chairman
  2. RBI dy.governor as Vice chairman

Members:

  • One Executive director of RBI
  • Two members from outside RBI.
    • cannot hold office of profit,
    • cannot involve in work that has conflict of interest with RBI
    • term: three years
    • not eligible for re-appointment.
DECISION MAKING
  • Must meet once every two months.
  • Decision by majority voting
  • Each person has one vote.
  • Member cannot abstain from voting.
  • If there is tie, Casting vote power to Governor and Dy.Governor.
TRANSPARENCY
  • Must publish minutes of the meeting.
  • Must publish Bi-annual report.
  • In case of failure to contain inflation with 2-6% range for three successive quarters, MPC will release a public statement signed by all members.

^~130 words.

Moving to the third main recommendation:

#3: @Government give Cover fire to RBI

  • RBI Makes monetary policy to control money supply in the system [and thereby fight inflationary and deflationary trends in economy.]
  • But RBI’s monetary policy fails to yield result because of government’s policies and subsidies. Observe:

#: MNREGA:

  • Money increased in Juntaa’s hand? Yes
  • Productive infrastructure/assets increased =Hardly. (Most of those kuccha roads and ponds get washed away in first rain.)
  • So in a way, more money in public’s hand, without corresponding rise in some physical goods/infrastructure/services. => leads to inflation.
  • Additionally, MNREGA=>less poors migrating to rich states to work as farm laborers=> the farmers in those states have to arrange local laborers @higher wages=> food inflation.
  • + lot of this money chowed down by Sarpanch, Patwari and Tehsildaar=> they give it local money lender, who in
  • turn loans it to farmers @36% interest rate. Rajan has no control over this. His monetary policy fails to control this.

#: MSP

  • In recent years, government kept increasing minimum support prices (MSP) of foodgrains (To benefit farmers/vote bank politics.)
  • But APMC merchants are not ready to buy grains  @such high price.
  • So, Farmers bring the grain to FCI (to sell it @Minimum support price declared by the government.)
  • FCI buys it, but FCI doesn’t have sufficient godowns= grains rotten @railway stations and eaten away by birds, rats, dogs and cows.
  • Money increased in farmers’s hand? Yes
  • Products/Goods/services increased in the economy? Nope. in fact foodgrain destroyed=> less commodities/products/breads/biscuits.
  • Result= inflation.
  • + even if this reaches to PDS shop, those shopkeeper themselves involved in hoarding and black marketeering. So, inflation continues.
  • Ill-gotten money gets reinvested in gold, real estate etc (because black-marketer cannot deposit in banks- else Income tax walla will track him down through KYC form.)
  • Again, Rajan doesn’t have control over this, so his monetary policy will remain ineffective.

#: Fiscal Deficit

deficits various types

Without getting into all details:

  • Any type of deficit = as such bad. Because it shows government is spending beyond its income.
  • Revenue expenditure = not good. [e.g. salary to staff]
  • Capital expenditure = good. [e.g. building new road/bridge]
  • Receipts= incoming money

Let’s check the formulas to calculate various deficits:

Deficitformula
Budget deficitTotal expenditure – Total receipts
Fiscal deficit
  • Budget deficit + Borrowing.
  • (Total Expenditure – Total Receipts) + Borrowing
  • (Total expenditure + borrowing) – [Revenue Receipts + Capital Receipt]
  • Total expenditure – [Revenue receipts + (Capital Receipts non debt type)]
  • Total Expenditure – [Revenue receipts + (Recovery of loans +Other receipts)]
Primary deficitFiscal deficit – interest payment (on previous loans)
Revenue DeficitRevenue Expenditure – Revenue receipt
Effective Revenue deficitRevenue deficit – grant for creation of capital assets

So what do we get from above formulas?

  • As such, any type of deficit is bad, because it shows you’re spending beyond your income.
  • Sometimes it is good to overspend- e.g.  A middleclass family takes loan to send their kid for higher education. [because money will recover when kid starts job/business.]
  • Similarly, if government also overspends for productive purpose like building new bridges, dams, canals and powerplants (i.e. capital Expenditure), then it is good, even if they run into ‘deficit’.
  • ^Atleast Keynesian economists believe so.

But in Modern Times, such “goodwill” expenditure also create more problems than they solve

  1. because you’re still ‘overspending’ beyond your income,
  2. even if bridges, dams, canals and powerplants are created – it’ll take 20-30-50-100 years before the money is recovered through tolltax/selling electricity and water.
  3. Besides governments tend to subsidize here also. So the “capital Expenditure” will not be recovered quickly.
  4. E.g. Kejriwal offering free water and cheap electricity. (After all it does come from some dam, some canal, some powerplant.)

Therefore, Free Market economists argue that Government should not borrow money even for capital Expenditure (building roads, canals, bridges and dams).  Government should only spend according to its income. And thus fiscal deficit should be kept minimum.

There are two ways to cut down fiscal deficit:

  1. Government should increase its income (e.g. increase taxes, order PSU to give more dividend)
  2. Government should decrease its expenditure (e.g. stop bogus schemes, reduce subsidies, sell away loss making PSU, recruit less people and so on.)

But in real life scenarios, both solutions are difficult to implement, therefore instead of decreasing fiscal deficit, government will keep issuing more bonds/Government securities to arrange additional cash.=> fiscal deficit keeps increases. And High level of fiscal deficit leads to following problems:

  1. Banks and investors buy these government securities.
  2. As a result, less money left for businessman to get loans/investment => less business expansion,  less jobs=>GDP reduced.
  3. In other words, fiscal deficit crowds out investment in private sector. Business loan interest rates continue to remain high.=> Rajan’s statistical projections about money supply, will become wrong. Thus monetary policy won’t be effective.

High Fiscal deficit: the vicious cycle:

  • High Fiscal deficit=> S&P, Moody etc. reduce our “Rating” to junk level=> FDI, FII slows down. But crude-oil, gold imports remain high => less incoming “Dollars”=> rupee weakens => crude oil more expensive=> fuel inflation => inflation in everything transported by petrol/diesel.
  • And IF government starts giving subsidies on petrol/diesel, then more fiscal deficit=>vicious cycle of weak rupee and high inflation continues.
  • Rajan’s monetary policy give much positive result in this case.

#: Loan Waiver

  • 2008: Government announced debt waiver scheme for farmer. Accordingly, government paid >60k crore rupees to the banks, on farmers’ behalf to settle their loans. This hurts in three ways
  1. Fiscal deficit increased=> more problem as we saw above.
  2. Rajan’s statistical projections for monetary policy go wrong.
  3. Farmers get bad habit of not repaying loans on time, hoping that government will again waive off their loans before general election.=> again NPA increases, banks are left with less money to lend => banks will charge high interest rate on business loans (to keep profit margin same)=> less business expansion = GDP, IIP declines.

Urjit Patel’s recommendations to Government

Given all these negative factors, Urjit Patel recommends government to do following:

  1. Eliminate administered prices (MSP on foodgrains, LPG cylinders),
  2. Eliminate administered wages (MNREGA)
  3. Eliminate administered interest rates (interest subvention given to farmers.)
  4. Implement Vijay Kelkar Committee’s recommendations on fiscal consolidation.
  5. Religiously follow the guidelines of Fiscal responsibility and budget  Management Act (FRBM).
  6. At present fiscal deficit is ~5% of GDP. Reduce this to just 3% of GDP, by 2016-17.
ChinduWaah Urjit bhai waah. You’ve given some radical recommendations.Lejin Hum nahi sudharenge (we’ll not reform and continue to give truckload of subsidies and freebies before election.) Just observe:
  1. We’ve increased number of subsidized LPG cylinders from 9 to 12 => subsidy burden increased by 5000 crore.
  2. Previously 6th Pay commission’s recommendation cost us Rs.20000 crores. Now We’ve formed 7th Pay commission under Justice Mathuor. You can be damn sure it’ll cost more than Rs.20000 crores.
  3. And before the Model code of conduct is announced, we may launch a few more schemes, freebies and highest MSP for farmer.
RajanThen I better just run away to Nepal, Dubai or Bangkok than try to fix the inflation mess through monetary policy.

Urjit Patel Committee recommendations

Urjit Patel: Misc recommendations

  1. Create standing deposit facility (similar to MSF.)
  2. Reduce SLR rate as per basel III framework. (Nachiket Committee said remove SLR completely).
  3. Government’s cash and Debt management function should be under a separate Government body. (and not with RBI)
  4. Government should not give directives to public sector banks on interest rates.
  5. Exchange rates related. (QE, Tapering.)
  6. Fixed income financial products (e.g. various maturity plans, Non-convertible debentures, small savings scheme etc.): = for TDS and tax benefits, treat them similar to bank deposits. That’d motivate people to save into them rather than in gold.

Mock Questions

  1. Find correct statements
    1. Primary deficit cannot be higher than fiscal deficit
    2. Primary deficit is obtained by deducting interest rates from Revenue deficit
    3. Both A and B
    4. Neither A nor B
  2. Find Incorrect statements
    1. Fiscal deficit cannot be lower than budget deficit
    2. Fiscal deficit cannot be lower than Revenue deficit
    3. Both A and B
    4. Neither A nor B
  3. Effective revenue deficit means
    1. Revenue deficit + Interest payment
    2. Revenue deficit – Borrowing
    3. Revenue deficit + grant for creation of capital assets
    4. Revenue deficit – grant for creation of capital assets
  4. RBI governor is__
    1. Selected by a panel consisting of Finance minister, commerce minister and the leader of opposition in Lok Sabha
    2. Answerable to the parliament’s standing Committee on finance.
    3. Both A and B
    4. Neither A nor B
  5. (A) In the recent years, RBI’s monetary policy has failed to contain inflation. (R) High level of subsidies and fiscal deficit reduce the impact of monetary policy on ground level.
    1. Both the statements are individually true and Statement R is the correct explanation of Statement A
    2. Both the statements are individually true but Statement R is not the correct explanation of Statement A
    3. Statement A is true but Statement R is false.
    4. Statement A is false but Statement R is true.

Q6. Urjit Patel Committee has recommended setting up a monetary policy Committee. Which of the following statements are correct in that regard:

  1. Members will be chosen by a panel of RBI governor, Finance minister, commerce minister and the minister for corporate affairs.
  2. Their salaries will be charged upon the consolidated fund of India.
  3. They cannot be removed from office without a proved misbehavior and voting in both houses on such motion.

Answer choices

  1. Only 1 and 2
  2. Only 2 and 3
  3. Only 1 and 3
  4. None.

Descriptive

  • (GS2-regulatory bodies)
    • What are the recommendations made by Urjit Patel Committee, to bring more accountability in the monetary policy formation in India? (5m | 100 words)
    • Write a note on the salient recommendations by Urjit Patel Committee to strengthen the monetary policy framework in India (10m | 200 words)
  • (GS3) Examine the role of Minimum support prices and farm subsidies as the Factors responsible for inflation in India.  Do you agree with Urjit Patel Committee’s recommendations for removal of such administered prices and subsidies? Justify your stand. (10m | 200 words)

Interview

  1. Urjit Patel Committee has recommended RBI to keep repo rate higher than CPI. This type of hawkish policy to combat inflation, will hurt the growth momentum. Do you Agree? Yes/No/Why?
  2. Urjit Patel Committee says bring down fiscal deficit to 3% of GDP by 2016. Do you think this is even plausible? Yes/no/why? If you’re made by the finance minister of India, how will you address the problem of fiscal deficit?
  3. In the recent years, RBI’s monetary policy has failed to put much impact on inflation. If you’re made the governor of RBI, how will you address this problem?
  4. Suppose you’re the Finance minister of India, and have to pickup the next governor of RBI. There are two candidates- both man of high integrity and impeccable career record- one is an IAS, who has long served in finance, commerce and corporate affairs ministries. And the second candidate is an IIM graduate with long experience of teaching economics at prestigious institutions abroad, and working with IMF but he holds a US Green card. Which one will you select and why?

Visit Mrunal.org/Economy For more on Money, Banking, Finance, Taxation and Economy.

Mrunal recommends

  1. (free) NCERT, NIOS, TN-Books
  2. Environment by ShankarIAS
  3. Indian Polity M.Laxmikanth (Hindi | English)
  4. Art & Culture by Nitin Singhania (Hindi | English)
  5. Spectrum: Modern History (Hindi | English)
  6. Bipin Chandra: Post Independence
  7. Fast-track to Arithmetic Rajesh Verma
  8. MK Pandey’s Analytical Reasoning
  9. Disha’s Topicwise Paperset (Hindi | English)
  10. School Atlas
  11. Mains: Language papers
  1. (free) NCERT, NIOS, TN-Books 4 History,Geo,Sci
  2. Indian Polity M.Laxmikanth (Hindi | English)
  3. Spectrum: Modern History (Hindi | English)
  4. Maths: Quantam CAT Sarvesh Kumar
  5. Objective General English SP Bakshi
  6. Word Power made Easy -Norman Lowe
  7. Topic wise Solved Paperset by Disha


So far 44 Comments posted

  1. karthik krishnan

    a
    a
    d
    b
    d

  2. priyanka

    a d d b a d

  3. dallu

    bahut din se wait kar raha tha…….got it… thanks mrunal bhai.

    1. chakri

      how simple it looks in your site ,thank you very very much mrunal sir

  4. K. NARSINGH RAO

    This is with reference to the case study given by Mrunal Sir on GS-4 Ethics.”How will you maintain accountability in that case? Solve it for [Ethics] GS4.” My Answer is,

    When the Governor feels the actions of the one of the members(outsider) of the M.P.C is not in line with his observations or thoughts and harms/sidelines the member through his proxies, then it is unfortunate, to avoid this and increase the transparency and fairness in the M.P.C,

    1.Make the voting as secret ballot (In case of open voting system,the concept of 3 members from RBI itself defeats the purpose of committee. because other 2 insiders of Committee reports to Governor, in any case they cannot go against their Boss, so,governor has clear upper hand)
    2.Make it a 6 member (3 insider from RBI and 3 Outsiders)committee, but voting rights will be given to only 5 members((only to (3 insiders +2 outsiders)), the voting rights of the 3rd outsider will be activated when one of the committee members is absent and meeting should not be conducted unless there is a quorum of 5 members(so always there are 5 members with voting rights)
    3.All members should attend the meeting without fail, if one fails to attend 2 consecutive meetings he automatically stands disqualified.

  5. rahul

    please ,mrunal sir, complete the last article on consumer related rights of nachiket committee and release the PIN NOV-DEC- JAN 2014 and sci&tech.

  6. krishna

    saras mrunal bhai mast che

  7. Swati

    how will be the outsiders selected??

  8. akshat sharma

    thanks mrunal sir

  9. ANXIOUS

    MRUNAL Sir
    can you throw some insight on US tampering and its implications on Indian economy

  10. ANKIT DWIVEDI

    sir shaayad hum upsc mains paper ko solv kar rahe the! lekin unfortunately 4 hi kar paye.

  11. ravikumar

    thank you sir

  12. MD RABIUL SARKAR

    This is very clear @ straightforward topic

  13. Rohit

    Please correct the definition of primary deficit,which is fiscal deficit minus net interest liability(net interest payment-interest receipts by the government on net domestic saving),accourding to ncert introductory macroeconomjcs,class 12.

  14. sudha

    1.a 2.a 3.d 4.b 5.d

  15. kumar ankit

    thank u sir

  16. Alok Ranjan Gupta

    What is no frills Account. please reply

    1. Jivtesh

      accounts in which no min. balance is required to keep account , no check book is provided, no transcition above 50k allowed ,..it is specialy provided to ews person,,, students,,with temporary address proof,,,etc…

    2. Jivtesh

      @Alok
      accounts in which no min. balance is required to keep account , no check book is provided, no transcition above 50k allowed ,..it is specialy provided to ews person,,, students,,with temporary address proof,,,etc…

  17. Rajesh

    Does fiscal deficit also includes interest a country earn for any loan given to some other country (Interest received from previous year surplus)? Because in that case primary deficit can be higher than fiscal deficit or some other equation may come up depending upon where we have fiscal deficit or fiscal surplus in that annual year.

  18. Jivtesh

    accounts in which no min. balance is required to keep account , no check book is provided, no transcition above 50k allowed ,..it is specialy provided to ews person,,, students,,with temporary address proof,,,etc…

  19. Anoop Srivastava

    Mrunal sir I have a doubt, if we try to narrow down the difference between WPI and CPI, what will be its implicaions for our economy.Kindly clarify.

  20. anunay

    maja aata hai padhne mein sirji… so lucid

  21. Sanjay Singh

    Mrunal sir,
    Please provide the answer key for CDS-2014 written exam at the earliest

  22. J A

    1.D
    2.B
    3.D
    4.B
    5.A
    6.D

  23. rohit

    Hi Mrunal bhai !!
    An exceptional article.. no doubt. i have a few queries (disagreements) though : Crowding out of private investment due to an increase in public borrowing : true. But, govt. also sends back that money into the market through public expenditure (only developmental public expenditure). So, drawing a direct correlation that less private investment leads to lesser GDP. Is it totally correct ? Even developmental expenditure by govt. (financed thru debt instruments like govt. bonds etc ) leads to GDP growth and increase in public demand through the increase purchasing power. Stress should be laid on improving governance and growth oriented initiatives rather than calling for reduction in social sector expenditure. Human Capital is also important component for growth.

    Also, private investment is driven (read promoted) by sustained demand in the economy and disposable income with the public. Squeezing govt. social sector initiatives will definitely reduce quantum of disposable income with the 60% of indians who create the actual demand in the market. Where do we then get sustained demand in the markets which in turn will promote private investments ? Like you have mentioned, lack of demand will result in falling prices and non-profitable business, thus demotivating investments by businessmen and lesser growth.

    I agree i am mixing Free market Economics and keynesian Economics.But, that’s the actual case in india.. isnt it ?

    1. Shijoy Varughese

      couldnt agree more rohit.besides if the radical step of doing away with administered wages etc undertaken then govt will have to take other steps to create social infrastructure increasing capital expenditure(after all we cant expect the private industry to do it)..plus increasin unemployment..as u said a better way is to plug in the loop holes of well concieved schemes..for instance mgnrega works pretty well in kerala..

  24. umesh

    Super article n very helpful …. Thank u 🙂

  25. CS

    Mrunal sir,Can u explain how Non tax receipt under Revenue Account is different from Capital Receipts.Sir i refferd ur earlier article on Fiscal Deficit also but still cudnt get the answer

  26. CS

    Can any one confirm the ans for question no 5.I thnk its a

  27. KULWANT SINGH

    Mrunal sir once again wonderful article I appered in SBH ME Exam on 23 Feb14 And got a question from it. Would not it be better if u provide the ANSWERS of MCQs framed ? Because I feel they r very imp from UPSC CSE (P) point of view. Thanks

  28. sivaraj

    Mrunal sir im from tamilandu recently i have resigned from sbt from the post of clerk. bcoz i got appointment order from pallavan grama bank for the post of officer scale 1,my joining date will be april 1st. im also waiting for ibps po 3 interview.my interview was good. infact im preparing for civil services parallely prepared for banking exams. now im in little bit confusion whether i can join in pallavan bank or shall wait for ibps po 3 result(my written score is 72).i discussed with somebody who was working in rrb he said ,if u r preparing for civil services than rrb is the best choice bcoz there u will have more time to prepare but in nationaised banks u wont have much time.

    So please advise me sir , shall i join in rrb as officer

  29. Amit

    “Urjit – Then Vice Chairman of the Committee (Dy.Governor) will give the casting vote to break the tie.

    Mohan – But what if He is also absent?

    Urjit – if both chairman and VC are absent, then common sense suggests we should postpone the meeting!”

    Hahahaha I really laughed for couple of minutes, good one Mrunal… great article, thanks.

  30. Kaizer

    These picture illustrations and dialogues are enough for any one to remember the topics.. Well written sir…

  31. Kaizer

    But what are the arguments/comments one can give for the last interview question (abt IAS officer Vs IIM alumni/ IMF Officer).. The only clue i could get is the fact that the person has a green card which means permanent residence in the US or work permit (as put by Mr. Rajan himself when he was aksed this question), that person cannot be a governor. Most importantly there is no point being diplomatic during an interview, so can any one give more suggestions as to whom and why you would choose ??

    Mr Rajan’s answe- http://www.thehindu.com/business/i-am-an-indian-citizen-raghuram-rajan/article5286188.ece

  32. zaki Danish

    bhut bhut shukriya Mrunal Sir , Bhut hi achche se concept clear hua ,,

  33. dexter

    Keep it bhai

  34. assault

    1-a
    2-b
    3-d
    4-b
    5-a
    6-d

    1. Afzal

      Can you explain the answer of second question? # Fiscal deficit cannot be lower than Revenue deficit ?

  35. Praveen Verma

    Why are you always against subsidies and welfare policies? These are one the reasons genuine people are preparing for civil services. Even if the schemes are not 100% effective, there are huge number of people (sometimes more than population of United States) get benefited by them.

    Fine, if you really think that Govt. should spend only on creating capital goods than also point out Tax expenditure and tax preferences. They, in total, amount to more than 50 percent of total tax revenue of central government. Your critic should be balanced and with complete information rather than half-baked truth because many aspirants follow yours website during their initial years of preparation and it affects their foundation.

    I guess you should start posting articles for our management institutes (IIMs etc.) which are inclined towards business aspects.

  36. Kajal

    Who will appoint 2 outsider members in MPC?

  37. aniket

    sir plz give detalis of standing deposit facility

Write your message!