Recently, RBI deputy governor gave a brilliant speech on financial inclusion with facts, figures and way to go (http://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=538).
The government, planning commission and Reserve Bank of India has been playing role of arm chair consultant on financial inclusion. There is an urgent need for one of these institutions to take the lead in setting-up Information technology framework which may support a low-cost business model to make financial inclusion viable.
Reserve Bank of India may keep pushing banks to implement financial inclusion. Basically, financial inclusion is not about business model, it is about technology innovation to support low-cost banking with given infrastructure (network, electricity, connectivity). Therefore, it would be ideal if Reserve Bank of India can ask a imminent technical person (or a company) to work with IRDBT and create technology infrastructure which can work seamlessly with UID and Mobile Number. I am sure Reserve Bank of India has excellent people to dedicate for this initiative and it may choose a person from Industry (RBI may check availability of Nandan Nilekani before searching further)
The requirement is to develop a technology-cum-process framework to create a value proposition and ask banks to follow it. If a bank innovates further, so far so good, however I feel strongly that regulator and government has no choice but to invest money and resources to create a viable technical infrastructure if they are really serious about financial inclusion.
Once this infrastructure is created and signed-off by all stakeholders, I guess banks will follow this business model. Reserve bank of India should remember that financial inclusion is agenda of Union Government because it is committed to include everybody on growth path (why it didn't wake-up earlier which is another question for another day. Even if India was growing at 5%, a poor man needed prompt credit) .
Banks have a simple mandate: Accept deposits and provide loans and banks will follow it wherever it makes business sense. I do not think I, as a shareholder will like my bank to invest INR 3000-4000 crores per year on financial inclusion and wait for returns.
Financial inclusion also means that Reserve Bank of India will need to increase its presence and reach beyond state capitals to ensure financial inclusion is happening under the regulatory umbrella of banking act and RBI act.
Tuesday, November 30, 2010
Wednesday, November 24, 2010
Interbank Mobile Payment Service
Till now, interbank mobile payments were processed through NEFT and since NEFT is executed in batches, it was not real time.
Recently, Deputy Governor of Reserve Bank of India launched real time (or instant) Interbank Mobile Payment System. It is instant 24x7, interbank electronic fund transfer service through mobile phones. It provides customer facility to use his mobile phone as another channel to access and transfer his funds in a secured manner with immediate confirmation features.
Interbank Mobile Payment Service rides on the existing NFS interbank ATM transaction switching infrastructure and message format and therefore easy for banks to adopt.
The process requires one time registration for both remitter and beneficiary where they have to register their mobile number, bank account and get MMID and MPIN.
MMID is a 7 digit number to be issued by bank to customer upon registration. Customer has choice to map multiple account numbers per mobile number. This is to avoid human error while transferring money and for transaction routing through NPCI.
Remitter will use initiate transaction using Beneficiary Mobile number, Beneficiary MMID and amount.
The remitter bank will :
a) verify remitter mobile number
b) MMID verification
c) MPIN validation
d) Remitter a/c identification
e) Debit to the remitter a/c
f) Generate and send transaction to NPCI
g) SMS confirmation to remitter
The beneficiary bank will:
a) verify b mobile number
b) Beneficiary a/c identification
c) Credit to beneficiary a/c
d) Generate and send transaction response
e) SMS confirmation to the beneficiary
There is per day limit on transactions depending on level of encryption. It is one more positive step towards financial inclusion.
Recently, Deputy Governor of Reserve Bank of India launched real time (or instant) Interbank Mobile Payment System. It is instant 24x7, interbank electronic fund transfer service through mobile phones. It provides customer facility to use his mobile phone as another channel to access and transfer his funds in a secured manner with immediate confirmation features.
Interbank Mobile Payment Service rides on the existing NFS interbank ATM transaction switching infrastructure and message format and therefore easy for banks to adopt.
The process requires one time registration for both remitter and beneficiary where they have to register their mobile number, bank account and get MMID and MPIN.
MMID is a 7 digit number to be issued by bank to customer upon registration. Customer has choice to map multiple account numbers per mobile number. This is to avoid human error while transferring money and for transaction routing through NPCI.
Remitter will use initiate transaction using Beneficiary Mobile number, Beneficiary MMID and amount.
The remitter bank will :
a) verify remitter mobile number
b) MMID verification
c) MPIN validation
d) Remitter a/c identification
e) Debit to the remitter a/c
f) Generate and send transaction to NPCI
g) SMS confirmation to remitter
The beneficiary bank will:
a) verify b mobile number
b) Beneficiary a/c identification
c) Credit to beneficiary a/c
d) Generate and send transaction response
e) SMS confirmation to the beneficiary
There is per day limit on transactions depending on level of encryption. It is one more positive step towards financial inclusion.
Thursday, November 18, 2010
Business agility driven from IT agility
IT agility is important in an organization to drive business agility especially for financial services companies. Agile IT set-up can help to launch new products in minimum time and subsequent versions or varieties by few mouse clicks.
Therefore, it has been increasingly important to invest judiciously in IT set-up and educate business teams to drive more out of IT investments. It is important to invest in right mix of people for IT set-up who understand business. For example, an old Chinese saying is,"If you want to employ people for building ship, search those who have passion to fight with sea storms."
An IT set-up which understands business, will inherently devise IT strategy which believes in building robust, flexible, configurable and independent frameworks. These frameworks can take care of immediate as well as near future changes and may keep evolving as business grows and customer habits change.
My point is having good business analysts is not enough, organization needs to employ people who have sound understanding of business processes and who do not require step-by-step guidance from business teams.
As I have learned, implementing a complex system and aligning people around it doesn't work as good as starting from basic and gradually implementing IT systems as organization grows, business grows, volume grows and processes mature. This method ensures sustainable and gradual investment in IT and you are not running a risk of creating IT capital which may be never used.
Therefore, it has been increasingly important to invest judiciously in IT set-up and educate business teams to drive more out of IT investments. It is important to invest in right mix of people for IT set-up who understand business. For example, an old Chinese saying is,"If you want to employ people for building ship, search those who have passion to fight with sea storms."
An IT set-up which understands business, will inherently devise IT strategy which believes in building robust, flexible, configurable and independent frameworks. These frameworks can take care of immediate as well as near future changes and may keep evolving as business grows and customer habits change.
My point is having good business analysts is not enough, organization needs to employ people who have sound understanding of business processes and who do not require step-by-step guidance from business teams.
As I have learned, implementing a complex system and aligning people around it doesn't work as good as starting from basic and gradually implementing IT systems as organization grows, business grows, volume grows and processes mature. This method ensures sustainable and gradual investment in IT and you are not running a risk of creating IT capital which may be never used.
Wednesday, November 10, 2010
Banking in India - A way forward
Private Banks have led the way in last decade (1997 onwards) and brought reforms in banking sector riding on technology. Government banks followed and the happiest stakeholder is customer.
Having said that, the ball has begun rolling and financial inclusion is the buzz word. Government, Regulator and Finance Minister have agreed on target to be achieved by 2012. I recall Prime Minister Dr. Manmohan Singh started talking about financial inclusion in 2004-2005 and now the idea has taken good shape.
The government facilitated the same by implementing UID project because completing KYC norms is one of the major hurdles for financial inclusion. Also, it is not advisable to dilute KYC norms in the name of financial inclusion.
Till now, Indian banks implemented technology with language English and served urban customers. If financial inclusion has to be successful and economically feasible, banks would need to delve deeper into Technology and multi-layered integration will play a major role.
There will be need for multilingual technology platforms, need for many kinds of authentication mechanisms, devising mobile applications which may work on GPRS or 3G, establishing multiple kiosk operated through solar energy, ATM operable through solar energy etc etc.
While it is possible to use technology to deliver banking services to last man in the society, the role of banking regulator and self regulation of banks will play a major role in its successful and satisfying implementation. The information may not get updated on a real time basis which may pose its own risk. Documentation and other details will take time to reach head quarter or nearest branch and there may be dilution in rules for providing credit or accepting deposit. Central bank would do good to appoint a local regulator or reviewer who may send periodic reports to them and also educate people about banking services and various charges from bankers.
We have seen how various programs of Central Government fail in implementation at the last mile. I hope central bank is smarter and will ensure financial inclusion doesn't remain lip service and a facility on paper.
Next decade (2011-2020) will see rural and semi urban population income growth and of middle-class. Remember, poor doesn't require cheap credit but he requires prompt credit. The prompt credit facility is set to change lives of many Indians.
Having said that, the ball has begun rolling and financial inclusion is the buzz word. Government, Regulator and Finance Minister have agreed on target to be achieved by 2012. I recall Prime Minister Dr. Manmohan Singh started talking about financial inclusion in 2004-2005 and now the idea has taken good shape.
The government facilitated the same by implementing UID project because completing KYC norms is one of the major hurdles for financial inclusion. Also, it is not advisable to dilute KYC norms in the name of financial inclusion.
Till now, Indian banks implemented technology with language English and served urban customers. If financial inclusion has to be successful and economically feasible, banks would need to delve deeper into Technology and multi-layered integration will play a major role.
There will be need for multilingual technology platforms, need for many kinds of authentication mechanisms, devising mobile applications which may work on GPRS or 3G, establishing multiple kiosk operated through solar energy, ATM operable through solar energy etc etc.
While it is possible to use technology to deliver banking services to last man in the society, the role of banking regulator and self regulation of banks will play a major role in its successful and satisfying implementation. The information may not get updated on a real time basis which may pose its own risk. Documentation and other details will take time to reach head quarter or nearest branch and there may be dilution in rules for providing credit or accepting deposit. Central bank would do good to appoint a local regulator or reviewer who may send periodic reports to them and also educate people about banking services and various charges from bankers.
We have seen how various programs of Central Government fail in implementation at the last mile. I hope central bank is smarter and will ensure financial inclusion doesn't remain lip service and a facility on paper.
Next decade (2011-2020) will see rural and semi urban population income growth and of middle-class. Remember, poor doesn't require cheap credit but he requires prompt credit. The prompt credit facility is set to change lives of many Indians.
Sunday, July 25, 2010
Ways to tackle Inflation
The present government has evolved a unique method to fight inflation and that is making statements - 'The inflation may come down by ...' and I/We hope that inflation will go down...
While Reserve Bank of India will take action because IIP numbers and other data shows inflation is going up due to 'demand' side and not due to supply constraints.
Earlier, Food inflation was worry where government cited various reasons however the basic reason was Minimum Support Price for wheat and rice. The government has doubled these prices in last 5 years. The question needs to be asked is how long our government can afford to increase minimum support price to benefit farmers and then looking towards RBI to cool down inflation? This is one more subsidy where corporate sector ends up paying higher prices for its loans.
The government has to decide who are its first customers? Farmers or people living below the poverty lines (government pays farmers higher price to procure wheat and rice and then subsidizes the same to distribute among below the poverty line people) or both? The government can not sustain this revolving door game where it keeps paying subsidy in various forms to both farmers and BPL.
The correct strategy will be to declare farming as business with proper incentive (taking leaf from China of 1979) and improving infrastructure to improve penetration and reach of grain markets so that people decide fair rates. India needs to move faster on agriculture and infrastructure reforms and needs a full time agriculture minister and who is not an affected party due to changes in government policy.
While Reserve Bank of India will take action because IIP numbers and other data shows inflation is going up due to 'demand' side and not due to supply constraints.
Earlier, Food inflation was worry where government cited various reasons however the basic reason was Minimum Support Price for wheat and rice. The government has doubled these prices in last 5 years. The question needs to be asked is how long our government can afford to increase minimum support price to benefit farmers and then looking towards RBI to cool down inflation? This is one more subsidy where corporate sector ends up paying higher prices for its loans.
The government has to decide who are its first customers? Farmers or people living below the poverty lines (government pays farmers higher price to procure wheat and rice and then subsidizes the same to distribute among below the poverty line people) or both? The government can not sustain this revolving door game where it keeps paying subsidy in various forms to both farmers and BPL.
The correct strategy will be to declare farming as business with proper incentive (taking leaf from China of 1979) and improving infrastructure to improve penetration and reach of grain markets so that people decide fair rates. India needs to move faster on agriculture and infrastructure reforms and needs a full time agriculture minister and who is not an affected party due to changes in government policy.
Monday, July 19, 2010
Commonwealth Games
Common wealth games committee has done an excellent job of marketing the games among Indian public. The queen's baton is being relayed all across India and through all states (including north east) however our over worked, very busy media doesn't have enough airtime to cover it.
The people and especially school kids are participating in these events and common wealth 2010 is going to lay foundation for sports development in India. We shall many sportsmen and sportswomen ready to represent India and win medals after 5-10 years.
The government has pulled all stops to use strengths of various agencies. The IRCTC has been instructed to facilitate book tickets online and already worth 10 crores tickets have been booked.
The one concern is food quality being served in Delhi. India is famous for spicy food and many visitors/foreigners/players may like to give all together different experience to their taste buds. The government seems to be in position to ensure safe food. The government has set-up a body named Quality Council of India which in consultation with health Ministry, Delhi will certify food and ensure food sold with its certification is of the best quality. The government is planning to entrust this body of providing certificates to food vendors and other eatable distributers later.
Mr. E. Sreedharan has provided best in class transport to delhi and I still feel bewildered and lost why in delay to set-up same facilities in rest of the 9 metro cities.
All the best to New Delhi and India. This game will be feather in cap of the people of Delhi.
Sunday, July 11, 2010
IT penetration in India
The UID project is picking up speed and as we all IT people know, once go-live date of a project comes near, the buzz around the project increases multi folds.
And with Mr. Nandan at the helm of affairs, I am sure he must have taken care of every aspect of the Project. This project is going to be a technology marvel to say the least. The system architecture has to support insertion of 1 billionth plus 1 record in mili seconds and retrieval of record based on unique number, again in mili seconds.
In my opinion, this project is going to be Olympics for existing technologies where technologies has to stretch itself to cater this huge requirement.
India served whole globe with its software services capabilities and Mr. Manmohan Singh has put his finger at right spot to improve government delivery which doesn't inspire confidence among citizens.
Also, this project will inspire rural masses to believe in IT because this is being executed by government and is pure "sarkari". The finger print records and other biometric record, if integrated with bank Core Banking System, may help to increase penetration of banking services to rural areas as well. Second, UID number will help many processes to be completely online thus improving process turn around time. Third, UID number can be used to identify person with complete confidence and private players may throw their hats to develop applications in local languages to improve communication and delivery from all levels of government.
Further, 3G is going to instigate and usage of overall mobile applications because demand will come from end user and application developing company will command more share in revenue with network service provider which is not the case at present.
Successful implementation of this project will trigger various changes in delivery systems of all levels of governance and justice. The power equations will change and citizen would have reasons to demand service rather than begging for it.
I do not any reason why Mr. Nandan Nilekani may not command same aura in Indian history as did Mr. Manmohan Singh as finance minister. Mr. Nandan greatest contribution to this country is accepting this enormous challenge and promise to deliver.
Sunday, June 20, 2010
Saaransh vs. Paar
I watched Saaransh movie way back in 1990s and always wondered why Anupam Kher did not win National Award for Best Actor for this movie. After doing some research, I came to know that great Nasiruddin Shah won it for a movie named 'Paar' which was released in the same year, 1984.
I wondered why Nasiruddin Shah won the award. I searched for movie Paar but didn't get it until last week. My local crossworld store had arranged this movie and I watched this movie today.
Paar movie deals with an older subject but in a far better way. The movie weaves a story of untouchable person from Bihar who goes to Kolkata and suffers. The poignant scene of the movie is where Nasiruddin Shah pregnant wife (Shabana Azmi) are starving for 3 days and they agree to cross 36 pigs across the river for a meager Rs. 27 out of which Rs.7 is commission of the person who helped Nasiruddin shah to get this work.
And I believe judges took right decision in deciding best actor for year 1984...
I wondered why Nasiruddin Shah won the award. I searched for movie Paar but didn't get it until last week. My local crossworld store had arranged this movie and I watched this movie today.
Paar movie deals with an older subject but in a far better way. The movie weaves a story of untouchable person from Bihar who goes to Kolkata and suffers. The poignant scene of the movie is where Nasiruddin Shah pregnant wife (Shabana Azmi) are starving for 3 days and they agree to cross 36 pigs across the river for a meager Rs. 27 out of which Rs.7 is commission of the person who helped Nasiruddin shah to get this work.
And I believe judges took right decision in deciding best actor for year 1984...
Sunday, May 23, 2010
Third Generation
According to Physics: If you double the frequency of an electro magnetic signal, it will travel half the distance. This is basic law of physics but this law is going to burden balance sheet of Indian telecommunication companies. And some folks decided earlier that we should not use same equipment to roll-out 3G what we use for 2G.
Government provides 2G spectrum in 800-950 MHz and will provide 3G in 1800-2000 MHz. This will reduce the coverage area of the 3G towers and where a telecommunication used to put 1 tower, will have to put at least two towers to cover the same area. Also, the company needs to install totally different equipments to roll-out 3G.
back-of-the-envelope calculation suggests that telecoms companies will need same amount o roll-out 3G what took them to purchase 3G spectrum. The other factor is why I would like to go for 3G? Agreed that 20-25% subscribers in Delhi and Mumbai have 3G ready phones and they may be waiting for 3G. But it will be difficult to spread 3G like 2G services. Rest of the India will wait for 3G services prices to go down.
Also, if telecommunication companies decides to use 3G spectrum to fulfill 2G spectrum requirements, their return on investments will suffer heavily. Three things will happen in next 3-5 years:
1) consolidation in Indian Telecommunication Sector
2) If consolidation doesn't happen, same finance minister will be forced to provide tax relief to telecommunication companies because they will find hard to survive
3) Telecommunication companies will become customer centric rather than product centric. At present, telecommunication communications are working out cheapest rates and to stay ahead in beating the competitor. This 3G roll out will stop this trend and we will see companies paying attention to quality of services which has taken a back seat. At least one company will differentiate on quality of services (end-to-end) and force others to follow suits. The quality along with attention on customer preferences can push ARPU to 750+ levels monthly and bring back telecommunication sector back on track.
Indian customer is also getting smarter and now he will demand quality with cheapest rates...
One advice to finance minister: Keep at least 10,000 crores aside for telecommunication sector where government can work on scientific advances to make spectrum a reasonably priced commodity. Very high rates of infrastructure is never a good sign and ultimately government will suffer due to same.
Government provides 2G spectrum in 800-950 MHz and will provide 3G in 1800-2000 MHz. This will reduce the coverage area of the 3G towers and where a telecommunication used to put 1 tower, will have to put at least two towers to cover the same area. Also, the company needs to install totally different equipments to roll-out 3G.
back-of-the-envelope calculation suggests that telecoms companies will need same amount o roll-out 3G what took them to purchase 3G spectrum. The other factor is why I would like to go for 3G? Agreed that 20-25% subscribers in Delhi and Mumbai have 3G ready phones and they may be waiting for 3G. But it will be difficult to spread 3G like 2G services. Rest of the India will wait for 3G services prices to go down.
Also, if telecommunication companies decides to use 3G spectrum to fulfill 2G spectrum requirements, their return on investments will suffer heavily. Three things will happen in next 3-5 years:
1) consolidation in Indian Telecommunication Sector
2) If consolidation doesn't happen, same finance minister will be forced to provide tax relief to telecommunication companies because they will find hard to survive
3) Telecommunication companies will become customer centric rather than product centric. At present, telecommunication communications are working out cheapest rates and to stay ahead in beating the competitor. This 3G roll out will stop this trend and we will see companies paying attention to quality of services which has taken a back seat. At least one company will differentiate on quality of services (end-to-end) and force others to follow suits. The quality along with attention on customer preferences can push ARPU to 750+ levels monthly and bring back telecommunication sector back on track.
Indian customer is also getting smarter and now he will demand quality with cheapest rates...
One advice to finance minister: Keep at least 10,000 crores aside for telecommunication sector where government can work on scientific advances to make spectrum a reasonably priced commodity. Very high rates of infrastructure is never a good sign and ultimately government will suffer due to same.
Mechanical Harvesting of Sugar cane
At least 6 sugar mills of Maharashtra have ordered for machines to harvest sugar cane. This news was both surprising and amusing for me. It is because of two reasons:
1) Expected cane production for 2010-2011 is 18% higher than previous financial year
2) Number of skilled laborers are 5.5 million against the requirement of 7 million
One thing is very clear: Local education or HRD minister should provide resources or develop capability to train laborers as skilled laborers to harvest sugarcane. The mechanical harvesting technology will bring more efficiency, will be more economical and will reduce the time required for processing. This all will lead to reduction in cost and hence increase in profits.
This change must be researched into and social activists should declare the trend. Maharashtra is second fastest growing Indian state. So, have enough jobs being created where next generation of cane harvesters are finding alternate employment? If this is the reason, Prime minister and Finance Minister will be very happy otherwise it is a worrying trend. Or is it extra 18% cane production which is responsible to deploy machines to complete processing on time?
Whatever be it, more and more people find alternate ways of employment and reduce dependence on agriculture, better we are.
1) Expected cane production for 2010-2011 is 18% higher than previous financial year
2) Number of skilled laborers are 5.5 million against the requirement of 7 million
One thing is very clear: Local education or HRD minister should provide resources or develop capability to train laborers as skilled laborers to harvest sugarcane. The mechanical harvesting technology will bring more efficiency, will be more economical and will reduce the time required for processing. This all will lead to reduction in cost and hence increase in profits.
This change must be researched into and social activists should declare the trend. Maharashtra is second fastest growing Indian state. So, have enough jobs being created where next generation of cane harvesters are finding alternate employment? If this is the reason, Prime minister and Finance Minister will be very happy otherwise it is a worrying trend. Or is it extra 18% cane production which is responsible to deploy machines to complete processing on time?
Whatever be it, more and more people find alternate ways of employment and reduce dependence on agriculture, better we are.
Euro Zone - Danger Zone?
Whenever anyone of us visits a developed country, we are taken aback by how much government cares for people...It seems that European nations have to change the way these countries approach social security. There are two fundamental reasons:
1) Change in demography - aging population more than working populations
2) Government revenue < Government Expenditures - The governments are living out of their pockets and mostly on debt. The financial crisis of 2008 forced governments to extend more sops to stay afloat.
Slowly, it has become difficult to sustain government expenditure. Had European governments courage and will power, they would talk about India where the government doesn't provide any relief on ground (social security practically, there are many schemes running on paper and in registers of various district collectors) but charges income tax moment you start earning.
European finance leaders are claiming they will do whatever required to save Euro. However, a small correction, the ball lies in court of political leadership to dictate the changes and make people aware of ground realities. It is a messy thing and it will take time for people to understand that they do not live in rich nations anymore.
1) Change in demography - aging population more than working populations
2) Government revenue < Government Expenditures - The governments are living out of their pockets and mostly on debt. The financial crisis of 2008 forced governments to extend more sops to stay afloat.
Slowly, it has become difficult to sustain government expenditure. Had European governments courage and will power, they would talk about India where the government doesn't provide any relief on ground (social security practically, there are many schemes running on paper and in registers of various district collectors) but charges income tax moment you start earning.
European finance leaders are claiming they will do whatever required to save Euro. However, a small correction, the ball lies in court of political leadership to dictate the changes and make people aware of ground realities. It is a messy thing and it will take time for people to understand that they do not live in rich nations anymore.
Sunday, April 11, 2010
Post IPL Parties
Commercialization of an entity has a limit and who decides this limit? The man who is calling the shots...the man who is in control and the man who knows he doesn't have to fear of competition because constitution of India gives him complete protection...
Post IPL match parties have become headache for players. The unwritten rule says that cricket stars must attend these parties and these parties go longer than an IPL match. If you are a common man and want to attend these parties, you have to shell out INR 50,000 per party. So, if you are willing to attend these parties, you have to be a crazy and uncommon common man (Is Income Tax Department listening?).
Mr. Modi...forget the 20-20 matches...Lets have only parties with cricket stars...May be you are thinking of organizing one more IPL season only of parties.
I never thought somebody will make cricket players behave like prostitute...Mr. Modi has not made exactly prostitute but talking/walking/hand shaking male prostitute who have to generate revenue for their franchises by hook or crook.
Mr. Modi....First you have almost killed Test Cricket. You have shortened the length of game where excellence has gone out of cricket dictionary. Now fielding remains only skill in a 20-20 match. You may as well deploy bowling machines after 4-5 years which will deliver balls based on public demand.
I do know if anybody else hurt the game of cricket so much as Mr. Modi has been doing....
Post IPL match parties have become headache for players. The unwritten rule says that cricket stars must attend these parties and these parties go longer than an IPL match. If you are a common man and want to attend these parties, you have to shell out INR 50,000 per party. So, if you are willing to attend these parties, you have to be a crazy and uncommon common man (Is Income Tax Department listening?).
Mr. Modi...forget the 20-20 matches...Lets have only parties with cricket stars...May be you are thinking of organizing one more IPL season only of parties.
I never thought somebody will make cricket players behave like prostitute...Mr. Modi has not made exactly prostitute but talking/walking/hand shaking male prostitute who have to generate revenue for their franchises by hook or crook.
Mr. Modi....First you have almost killed Test Cricket. You have shortened the length of game where excellence has gone out of cricket dictionary. Now fielding remains only skill in a 20-20 match. You may as well deploy bowling machines after 4-5 years which will deliver balls based on public demand.
I do know if anybody else hurt the game of cricket so much as Mr. Modi has been doing....
News of News Channels
No Hindi news channel in India makes money. Are you surprised???
There is no reason to be. Go deeper and the naked reality of this industry comes out. Many of these news channels have not made money in their life span. India is the only country where news runs as standalone, independent business.
When government decided to go ahead with 24 hours private news channels, the basic idea was to promote science, general knowledge, contemporary history and making youth aware of various aspects of India which were not getting adequate attention on DD. However, our Hindi news channels picked up naughtiest page from print media and started showing stuff which is frivolous, generates negative discussions and is taking society backwards.
None of hindi news channels concentrate on any of the stuff that government thought they would. In stead these channels are promoting all kind of stupid stuff like astrology, junter-mantar, bhoot-pishach etc etc. These channels have gone into a vicious cycle where they run by TRP rating published on Friday morning.
These TRP ratings define their content for next week. There is desperate attempt to make money however till the time these channels add positive value to society and guides younger generation in right direction, they will remain in bad shape and may be they will also distort our society to a certain extent.
There is no reason to be. Go deeper and the naked reality of this industry comes out. Many of these news channels have not made money in their life span. India is the only country where news runs as standalone, independent business.
When government decided to go ahead with 24 hours private news channels, the basic idea was to promote science, general knowledge, contemporary history and making youth aware of various aspects of India which were not getting adequate attention on DD. However, our Hindi news channels picked up naughtiest page from print media and started showing stuff which is frivolous, generates negative discussions and is taking society backwards.
None of hindi news channels concentrate on any of the stuff that government thought they would. In stead these channels are promoting all kind of stupid stuff like astrology, junter-mantar, bhoot-pishach etc etc. These channels have gone into a vicious cycle where they run by TRP rating published on Friday morning.
These TRP ratings define their content for next week. There is desperate attempt to make money however till the time these channels add positive value to society and guides younger generation in right direction, they will remain in bad shape and may be they will also distort our society to a certain extent.
Sunday, April 04, 2010
Counting Indians
India has started counting each of its 1.2 billion citizens and as prime minister said,"The information gathered during census will be a treasure to implement development programs." The prime minister is 100% correct.
The exciting factor is this data will be passed on to Mr. Nandan Nilekani who will use it for UIDAI project implementation.
The critical success factor will be government employees gathering this data have robust processes in place for 99% accuracy otherwise it will be mess beyond correction. Extra care needs to be taken in U.P. and Bihar where government employees may complete their work without visiting respective households.
Economists will wait for this data and it may actually clarify all doubts about poverty level in India where various experts have various opinions and as it always happens, every expert appointed by any government is absolutely right.
This job should be handled by Planning Commission of India and this exercise should happen every 5 years due to pace of growth in India. Also, India does not need planning commission of India any more, it needs implementation commission of India with power and teeth to stop leakages in the system.
A bunch of handful intellectuals sitting in Delhi have achieved very little so far in last 60 years. Lets have one representative in every state monitoring independently implementation of government projects and sending reports to Delhi monthly basis. There has to be segregation of duties and we can no longer trust government employees implementing these schemes at grass level.
The exciting factor is this data will be passed on to Mr. Nandan Nilekani who will use it for UIDAI project implementation.
The critical success factor will be government employees gathering this data have robust processes in place for 99% accuracy otherwise it will be mess beyond correction. Extra care needs to be taken in U.P. and Bihar where government employees may complete their work without visiting respective households.
Economists will wait for this data and it may actually clarify all doubts about poverty level in India where various experts have various opinions and as it always happens, every expert appointed by any government is absolutely right.
This job should be handled by Planning Commission of India and this exercise should happen every 5 years due to pace of growth in India. Also, India does not need planning commission of India any more, it needs implementation commission of India with power and teeth to stop leakages in the system.
A bunch of handful intellectuals sitting in Delhi have achieved very little so far in last 60 years. Lets have one representative in every state monitoring independently implementation of government projects and sending reports to Delhi monthly basis. There has to be segregation of duties and we can no longer trust government employees implementing these schemes at grass level.
Ignorable Paisa League (IPL)
I tried to watch IPL matches this season but I lost interest in the match every time. The matches are predictable and once you have little bit knowledge about a team's form, the matches become even boring.
The IPL matches bring me back memories of old Hindi movies where a wicked and rich landlord will exploit poor villagers because he is rich, powerful and laws of the land favor him. The similarity is stark in case of IPL. The rules, pitch and environment are brazenly in favor of batsmen who keep beating poor bowlers for no reason. Now, as a cricket lover, you can't wait for a hero to emerge and beat back landlord but the administrators have to jump and give something for bowlers in the pitch.
A cricket match is a contest between bowlers and batsmen of both sides. However, IPL has made cricket matches a contest between batsmen of both sides. When IPL first season began, I expected that bowlers will come up with new tricks but the rules are vehemently in the favor of the batsmen. A bowler has no chance to beat back batsmen. I am still waiting for a IPL match where team batting first scores 119 in 20 overs and other team looses by 1 run.
The only skill which counts in IPL is fielding and rest is muscle power in the arm of batsmen.
One critical factor for IPL success and viewership is: No other alternate entertainment for Indian men without cost and in the convenience of home. IPL is tailor made for couch potatoes. Your 4 hours pass on a weekend or weekday just like that without any effort.
I am expecting if somebody starts football league on the lines of IPL, it may be successful with a longer gestation period. It is anybody's guess that Indian public will get bored of IPL and as law of economics say - if you are making exorbitant profits in any sector, you will definitely find a competitor sooner.
The IPL matches bring me back memories of old Hindi movies where a wicked and rich landlord will exploit poor villagers because he is rich, powerful and laws of the land favor him. The similarity is stark in case of IPL. The rules, pitch and environment are brazenly in favor of batsmen who keep beating poor bowlers for no reason. Now, as a cricket lover, you can't wait for a hero to emerge and beat back landlord but the administrators have to jump and give something for bowlers in the pitch.
A cricket match is a contest between bowlers and batsmen of both sides. However, IPL has made cricket matches a contest between batsmen of both sides. When IPL first season began, I expected that bowlers will come up with new tricks but the rules are vehemently in the favor of the batsmen. A bowler has no chance to beat back batsmen. I am still waiting for a IPL match where team batting first scores 119 in 20 overs and other team looses by 1 run.
The only skill which counts in IPL is fielding and rest is muscle power in the arm of batsmen.
One critical factor for IPL success and viewership is: No other alternate entertainment for Indian men without cost and in the convenience of home. IPL is tailor made for couch potatoes. Your 4 hours pass on a weekend or weekday just like that without any effort.
I am expecting if somebody starts football league on the lines of IPL, it may be successful with a longer gestation period. It is anybody's guess that Indian public will get bored of IPL and as law of economics say - if you are making exorbitant profits in any sector, you will definitely find a competitor sooner.
Friday, April 02, 2010
Platinum Jubilee Ceremony of RBI
I was going through speeches of Prime Minister, Finance Minister and RBI governor at the occasion of final platinum jubilee ceremony at Reserve Bank of India. I liked few quotes and am sharing them below:
From the speech of RBI Governor:
http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=493
From the speech of RBI Governor:
http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=493
1) As an institution, central banks go back several centuries. The first central bank, the Riksbank in Sweden, was established in 1668, nearly 350 years ago, at a time when much of India was still under the Great Mughals. The Bank of England came shortly thereafter in 1694. By the turn of the century in 1900, there were only 18 central banks. Today, there are around 180 central banks, a tenfold increase in the last one hundred years.
2) A final thought before I close. A powerful lesson from the financial crisis has been that financial sector development is not, and cannot be, an end in itself. The growth of the financial sector is important only to the extent it improves the growth of the real sector. For all of us in the Reserve Bank - indeed even for those outside it - engaged in financial sector issues, it is important to remember that what we do in the financial sector adds value if, and only if, it makes a difference to the lives of ordinary people. This is the lasting message that the Reserve Bank will carry forward beyond the platinum jubilee celebrations.
I wish USA bankers and central bankers also understand, digest and practice what RBI governor said.
2) A final thought before I close. A powerful lesson from the financial crisis has been that financial sector development is not, and cannot be, an end in itself. The growth of the financial sector is important only to the extent it improves the growth of the real sector. For all of us in the Reserve Bank - indeed even for those outside it - engaged in financial sector issues, it is important to remember that what we do in the financial sector adds value if, and only if, it makes a difference to the lives of ordinary people. This is the lasting message that the Reserve Bank will carry forward beyond the platinum jubilee celebrations.
I wish USA bankers and central bankers also understand, digest and practice what RBI governor said.
3) Prime Minister Sir, as Finance Minister, in your budget speech of 1994-95, you had famously invoked Victor Hugo to say that: ‘No power on earth can stop an idea whose time has come.’ If our first Prime Minister, Pandit Nehru, gave us ‘the idea of India’, you had reinvented the idea to unleash India’s ‘animal spirits’, Keynes’ memorable phrase for ‘get up and go’ entrepreneurism. As a nation, it is our collective dream, hope and joy to take forward that idea of India. On the occasion of its platinum jubilee, the Reserve Bank of India rededicates itself to the continuing task of turning that idea into reality.
A day in the life of India - 1st April, 2010
Right to Education law will shape future of India and we will see its affect in next 25 years. Well! you will get criticizers for everything in India. These criticizers have little idea what they are saying and they are self proclaimed God.
I will tell you why? Mr. Subir Gokaran (before joining RBI) used to write article in Business Standard every Monday where he used to criticize central bank now and then. I was reading his interview after joining RBI as deputy governor and he clearly said,"I am amazed by the way data is analyzed before reaching any decision."
I am surprised by the fact that nobody asked for this fundamental right. It has been done on the behest of a forward looking lawyer-turned-education minister and economist-turned-prime minister. When India sits next time to write history, these two men will occupy larger space than others.
Second One is change in interest calculation rules on saving accounts. I was surprised to know that my banker friends had no idea how interest is calculated on their saving account. I think this is the only reason why this method-of-interest-calculation survived since 1952.
Anyways, now banks will press RBI to reduce interest rate on saving account and I think this will pave the way for lower interest rate in India.
I will tell you why? Mr. Subir Gokaran (before joining RBI) used to write article in Business Standard every Monday where he used to criticize central bank now and then. I was reading his interview after joining RBI as deputy governor and he clearly said,"I am amazed by the way data is analyzed before reaching any decision."
I am surprised by the fact that nobody asked for this fundamental right. It has been done on the behest of a forward looking lawyer-turned-education minister and economist-turned-prime minister. When India sits next time to write history, these two men will occupy larger space than others.
Second One is change in interest calculation rules on saving accounts. I was surprised to know that my banker friends had no idea how interest is calculated on their saving account. I think this is the only reason why this method-of-interest-calculation survived since 1952.
Anyways, now banks will press RBI to reduce interest rate on saving account and I think this will pave the way for lower interest rate in India.
Saturday, February 27, 2010
Two Budgets
Financial budget is okay and Finance Minister has done a reasonable job. Finance minister can allocate money for various sectors and a lot of mathematics and past trend must have been taken into the account, so I do not find any reason to criticize it.
What we need is: How to ensure that money reaches to allocated destination? We need administrative reforms for this. Everybody has its own eyes on UID project. The failure of this project will be victory of people who are averse to administrative reforms.
Well - I was expecting finance minister to offer tax savings for any individual/corporate if they invest in skill development programs. Skill development is need of the hour. India needs skilled people rather than educated people. I am talking about enjoyability of an individual. We should have someway to measure it.
I do not find any relevance of Railway Budget. It is a launching platform to become chief minister of the state you have dreamed for long.
We need to improve speed of our trains at least by 40% in next 2 years. Otherwise Road transport will overwhelm railways and trains will rum empty.
What we need is: How to ensure that money reaches to allocated destination? We need administrative reforms for this. Everybody has its own eyes on UID project. The failure of this project will be victory of people who are averse to administrative reforms.
Well - I was expecting finance minister to offer tax savings for any individual/corporate if they invest in skill development programs. Skill development is need of the hour. India needs skilled people rather than educated people. I am talking about enjoyability of an individual. We should have someway to measure it.
I do not find any relevance of Railway Budget. It is a launching platform to become chief minister of the state you have dreamed for long.
We need to improve speed of our trains at least by 40% in next 2 years. Otherwise Road transport will overwhelm railways and trains will rum empty.
Saturday, February 20, 2010
You Managing Projects or Projects Managing You!!
Well! Nothing to insult anybody's work as a Project Manager. I see project management as an art where you have to constantly learn by "what works" rather than "what are the normal practices". The most important factor is operating environment which changes very rapidly and often we fail to notice the changes and how it is impacting my project with the same pace.
Project Management is a simple thing in an ideal world but we do not live in an ideal world. As mode of communications are increasing, I feel more is communication gap and more confusion leading to chaos. Additionally, I feel we Indians have by nature poor skills as Project Manager barring one, Mr. E. Sreedharan.
I searched in old Hindi/Sanskrit literature about project management. I didn't find anything. Then I looked at various processes in Hindu Marriage and how these are carried day-by-day. If you look at a Hindu marriage by project management angle, you will get insights into what project management basics our old sages would have taught.
1) The first thing is - no parallel processing. Every process is pre-planned and pre-defined by a Pandit and it can't be changed unless something goes wrong in either family.
2) Role Definition: Roles are very clear. There is no ambiguity on which task will be carried by whom.
3) Time Management: Pandit has defined time for every event in advance. People do back calculation and make prior arrangement.
So, what I conclude is: Project Management is all about doing basic things correctly. If you try to do things faster or parallel, you may make your boss happy but it is more or less certain that you will screw lives of less mortals here or there. Project Management is doing things as it should be without being over smart.
Project Management is a simple thing in an ideal world but we do not live in an ideal world. As mode of communications are increasing, I feel more is communication gap and more confusion leading to chaos. Additionally, I feel we Indians have by nature poor skills as Project Manager barring one, Mr. E. Sreedharan.
I searched in old Hindi/Sanskrit literature about project management. I didn't find anything. Then I looked at various processes in Hindu Marriage and how these are carried day-by-day. If you look at a Hindu marriage by project management angle, you will get insights into what project management basics our old sages would have taught.
1) The first thing is - no parallel processing. Every process is pre-planned and pre-defined by a Pandit and it can't be changed unless something goes wrong in either family.
2) Role Definition: Roles are very clear. There is no ambiguity on which task will be carried by whom.
3) Time Management: Pandit has defined time for every event in advance. People do back calculation and make prior arrangement.
So, what I conclude is: Project Management is all about doing basic things correctly. If you try to do things faster or parallel, you may make your boss happy but it is more or less certain that you will screw lives of less mortals here or there. Project Management is doing things as it should be without being over smart.
Saturday, February 06, 2010
Risk Scenario and how to handle it
The October 2008 successfully transferred the risk from private bank's balance sheets to government balance sheets.
The game has began with President Obama declaring a budget with huge deficit. President Obama is walking on a thin rope and I wish him all the best to him.
My simple statement is: Things are too much confused...The risk has gone to government. The bankers are back to huge bonus days. So, who suffered at the end of the day? The public is still suffering with unemployment and high inflation may add up if government is forced to pay higher interest on the bonds. High interest will led to higher unemployment and ...
The government should force banks to pay a levy or extra tax because government has been forced to save these banks. The government must not use public money to save these banks but it should use money from a separate fund collected through new tax.
RBI is indeed smarter the way it has controlled Indian banking system. It has beautifully balanced growth with safety. And It has forced banks and bankers to forget one word which is root of all financial chaos - 'Banker Greed'
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