The regulator has raised the ATM user charges. Once again. It follows a 2019 report of a Committee constituted by the Reserve Bank of India. The CEO of the Indian Banks Association (IBA) chaired the Committee and prepared the report. It had members from banking and industry stakeholders. Neither the regulator nor any depositor association was a member. Are these charges justified? Continue reading “For Whom the ATM Tolls? On Paying to Withdraw Our Money”
Regulation and supervision are much more complex than meets the eye. This post attempts to draw a few regulatory and supervisory lessons. This is against the background of a recent book by a well-known economist and former Governor, Reserve Bank of India.
A missing portrait
If one were to write the history of the Reserve Bank of India today, the midpoint would be May 1977. This was when the new Janata Government forced the resignation of K.R. Puri, the 12th Governor. M. Narasimham, his successor, has in his memoirs detailed the events that led to the resignation. After another change of government, a vindictive Puri would come back, as a one man Commission. His report faulted the conduct of gold auctions under the venerable I.G. Patel, among the most brilliant Governors of the Bank. Continue reading “Regulation and Supervision: A few lessons”