5 Things to Look Out for in Raghuram Rajan’s I Do What I Do
“My name is Raghuram Rajan and I Do What I Do”
It has been months since demonetisation occurred; but still whenever the topic comes up, people can’t help but express their surprise about the whole episode. Some may feel it to be a revolutionary and brilliant step while others condemn it for causing them the agony of standing for hours in queues outside banks, to get their old notes exchanged for new ones. And still others curse the fateful night of 9th November 2016, when all of their labour of adding black money penny by penny in their homes, relatives’ safes or their most trusted Swiss bank accounts, laid waste. Well, to each his own.
Whatever yours or anyone’s thoughts on the matter might be, they do not really matter now, except for just one’s- Raghuram Rajan, the former Governor of Reserve Bank of India.
Within the poignant pages of his new book, I Do What I Do, he has not only made people aware of his stance on the subject at the time but also many other important issues that could and have proved to be a turning point for the Indian economy. A rich and wide collection of his speeches, quotes and other first hand accounts from the time he spent in the Central Bank, this book is an interesting read for anyone interested in finance and economics. Acting as a mirror of the thoughts and ideas of the ace players in the country’s economy, it gives a front row view of all the matters that sprouted up in the financial niche of the country while Rajan was in office. This also includes the time of global inflation when India was labelled a high risk abyss for investment, the very time when Raghuram Rajan took charge of the RBI office as its new governor in
Released by Harper Collins, ‘I Do What I Do: On Reforms, Rhetoric and Resolve’ is an attempt on the part of the former RBI governor to make Indians aware of the policy making at Reserve Bank of India. In his book, Raghuram Rajan relates that he was asked for his views on the matter of demonitisation by the government in February 2016. “I gave my views on demonetisation orally. Although there might be long-term benefits, I felt the likely short-term economic costs would outweigh them,” he writes in his book.
So, what all does the book hold within its pages for the readers.
5 Things to Look Out for in I Do What I Do
Rajan states in his book that he was never asked to take a decision regarding demonetisation during his term in the office. He also adds that the intention behind the action was good but it indeed came at a substantial cost.
Raghuram Rajan maintains that the deceleration of India’s credit growth is not result of the attempts of the state run banks for resolving their huge NPAs or bad loans. According to him the problems go way back than the current efforts of the banks to sweep their balance sheets clean.
Rajan wrote in his book, “As we found banks reluctant to recognize problems, we decided not just to end forbearance but also to force them to clean up their balance sheets. The Asset Quality Review, initiated in 2015, was the first major exercise of this nature in India”.
As per him, demonetisation has primarily impacted the poorer section of Indian society. “It is probably fair to say that demonetisation has had the largest impact on the people who transact informally, of which many might be very poor”, he wrote.
In one of his speeches included in his book, Rajan exclaims that since 2014, credit growth seen by the public sector banks had started to slow down. This was much prior to the fervent initiation of balance sheet clean up, which was a result of banks starting to recognize the problem in their balance sheets. “Once again there were a bunch of critics who claimed that cleaning up the bad loan problem was what led to the slowing of credit by the public sector banks,” he pens down in his book, “I Do What I Do: On Reforms, Rhetoric and Resolve”.
You can buy this book from here.