more-in From demonetisation to universal basic income in the context of India’s slowing growth and autonomy of the Reserve Bank of India, the bank’s former Governor, C. Rangarajan, discussed it all before a gathering of bank’s employees on Friday. The noted economist, who has also served as Chairman of the Prime Minister’s Economic Advisory Council in the past, said the last round of demonetisation had deep impact in unveiling unaccounted wealth in cash but was inadequate. Mr. Rangarajan delivered a lecture during the inaugural address of the 32nd All-India Reserve Bank Employees Association. “It does not address the issue of how to prevent further accumulation of unaccounted income which needs measures like improved transparency in governance, revised tax structure and improved tax administration,” Mr. Rangarajan said. “Electoral reforms and changes in funding of political parties are also needed.” He also pointed out the troubles the common man faced due to currency crunch. He said it would have an immediate impact on the economy. “Much of the controversy over demonetisation could have been avoided had the authorities been better prepared,” he said. Job creation Mr. Rangarajan said banks should strive to reduce non-performing loans and simultaneously improve credit growth, later adding that the economy should be accelerated and the investment rate has to be increased for new job creation. Recollecting instances of governments and political representatives treading on the autonomy of federal banks in the West, Mr. Rangarajan said it was imperative that the autonomy of the bank be maintained at the cost of eternal vigilance. Referring to the mention of universal basic income in the recent economic survey, the former RBI chief said it was a welcome idea though not new. Stating that the cost burden of such a scheme could be a phenomenal financial burden, some ideas, including phasing out of subsidies, should be carefully considered.

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