RBI governor for better education loans regime

Rajan hopes for better enforcement of tax laws and punishment for black money holders

GN Staff | February 21, 2015


#rbi   #raghuram rajan   #student   #loans   #governor   #bank   #balck money   #tax   #budget   #arun jaitley  

Reserve Bank of India governor Raghuram Rajan on Saturday sought better student loan schemes as he felt that there were lot of stress on education loans.

Taking the theme of rationalizing tax structure as finance minister Arun Jaitley presents budget next week, he spoke against the inheritance tax. He said the focus should on bringing people up rather than bringing down those who are well-off. Because of such a tax, there will be no incentive for wealth creation, he said.

Rajan also strongly advocated punishing of black money holders by streamlining laws and enforcement.

Terming the black money issue as "sensitive" he said what is important is ensuring that conditions are such that people don't misuse the rules and regulations and don't have the incentive to park money outside.

"Let people pay, but if they don't pay, go after them. That message has to get out. People have to know if they evade, they will be penalised. We need to strengthen the tax administration as part of the government," Rajan said.

The best way to prevent law breaking is to reduce the incentive to do that, Rajan said.

On future rate cuts he said it would depend on the fiscal consolidation path in the upcoming budget. Defending the the status quo on the policy front, the governor said, "further action will be in the direction of rate cut that was initiated, and it will depend on the developments in particular on the fiscal front as well as a continuation of the disinflationary process." He indicated that the quality of fiscal consolidation, rather than the headline deficit numbers alone, will be important for him while undertaking any future rate cuts.

"It is not that we are locked to a specific number or a specific path, but it is the overall package, whether it makes for serious, high quality fiscal consolidation over time that clearly will impact the inflationary forces that we are most worried about. We will be looking at all aspects of the budget and they are eagerly awaited," Rajan said.

While rejecting bankers' call to extend the loan restructuring window beyond April 1 he said “to build confidence in banks' balance sheets, we have to come to an end of forbearance. We have to put banks on the right track. I do not think the answer is to pretend and extend or extend and pretend; it is to call spade a spade," Rajan said.

Comments

 

Other News

The mapping of India

 This is the 250th year since the inception of the Survey of India that has been mapping the boundaries since 1767. Archana Mishra spoke to Dr Swarna Subba Rao, former surveyor general of India, who retired in June this year.  He joined the department as a deputy superintending surveyor in 1983 a

An ODF experiment that succeeded

An experiment carried out to make Uttar Pradesh’s Bijnor district Open Defecation Free (ODF) succeeded due to an official’s innovative approach, noted a World Bank blog.   The blog “Compressed demand”: How Uttar Pradesh is making sure rural sanitation subs

Finding a diplomatic way through political instability

As an emerging global power and the most powerful state in South Asia, India has been perennially concerned about protracted political instability and resultant social turmoil in Afghanistan during the past few decades. Indeed, India’s engagement in the realm of development cooperation, since the o

Kashmir’s Bloody Money Trail

Till the National Investigation Agency (NIA) caught up with him in Delhi on August 17, 70-year-old Zahoor Ahmad Shah Watali, a businessman, was indeed one of the most powerful persons in Kashmir valley. He was known to wield enormous clout in the corridors of power, both in Srinagar and Delhi. His influenc

Did media trial impact Aarushi-Hemraj murder case?

Did media trial impact Aarushi-Hemraj murder case?

Food security: Solution lies in traditional food

After spending almost a month among tribals of Mandla in Madhya Pradesh, I can confidently say that by restricting ourselves to Public Distribution System (PDS), we cannot solve the food security issues of the country.   The problem is graver. In a district like Mandla, where aboriginals like Bai



Video

Dhanteras today, know subh muhurat for shopping and puja

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter