Solving the Micro-Entrepreneurs Working Capital Conundrum: BharatBazaar Pilot
The Government today appointed Dr. Viral Acharya, Professor of Economics at the New York University Stern School of Business, as RBI Deputy Governor for 3 years. We had the pleasure of interviewing Dr. Acharya few years ago on aggregation of risks in a financial system especially with respect to the Indian context. In the below video we share Dr. Acharya’s conversation with Bindu on the subject. You can read the full transcript of the conversation here.
Dr. Viral Acharya in conversation with Bindu Ananth
Very Timely reproduction of the interview with Dr Acharya, DG, RBI. Two points get highlighted in the whole interview:
1. His concern on creating level playing field between the private and public sector banks as he opines that the present situation is more against the private sector banks.
2. His thoughts, status and need for creation of Aggregators as part of our Financial system and reducing the labour of RBI from regulating large number of Financial Institutions in the country are well articluated.
These were his thoughts and concerns as an Independent Economist. Now, that he has become a part of the Regulator, will he be able to bring about the change he was talking about in the interview. His mentor Dr Raghuram Rajan came with great hopes and left with disappointment. In India, one cannot work in political vacuum. See, the article written by Mrs Usha Thorat, Former DG in Indian Express to know the pains the RBIites past and present have been undergoing during these 50 days of ordeal called demonetisation. According to her the RBI was reduced to a but of jokes with over 50 circulars in 30 days on demonetisation and most of them coming as per the dictates of the MoF, GOI. Having said that, we will give Dr Acharya next three years to implement at least some of this ideas.