Turf battle: On independent payments regulator
The RBI makes a valid case against the proposal for a separate payments regulator
The Reserve Bank of India (RBI) and the Union government are once again at loggerheads(आपस में भिड़े/मूर्ख) over the legitimate extent(सीमा/विस्तार) of their powers. In a rare(दुर्लभ) gesture(संकेत/हाव-भाव), the central bank last week made public its reservations against the government’s plans to set up an independent payments regulator, potentially( संभावित रूप) setting the stage for a regulatory turf war(रस्साकशी). In a strongly worded dissent(मतभेद/असहमति) note against the inter-ministerial committee for the finalisation(अंतिम रूप) of amendments(संशोधन) to the Payment and Settlement Systems Act, 2007, published on its website on Friday, the central bank observed(देखे गए) that it would prefer(बढ़ाना/प्रधानता देना/चुनना) the Payments Regulatory Board to function under the purview(अधिकार/सीमा) of the RBI Governor. “There is no case of having a regulator for payment systems outside the RBI,” the note read. In support of its stance(मुद्रा/उदेश्य/स्वरूप), the RBI stated that the activities of payments banks come well within the purview of the traditional(परंपरागत/पारम्परिक) banking system, which the central bank oversees(देखरेख) as the overarching(व्यापक) financial regulator. So, according to this logic, it might make better sense to have the RBI oversee the activities of payments banks as well instead(बजाय) of creating a brand new regulator for the growing industry. “Regulation of the banking systems and payment system by the same regulator provides(प्रदान करना/मुहैया करना) synergy,” it noted. The RBI, in essence(मूलतत्त्व/निष्कर्ष), is pointing to the interconnection(अंतःक्रिया/एक दूसरे का संबंध) between the payments industry and the banking system to back the extension(विस्तार/वृद्धि) of its regulatory powers.
The RBI’s case makes good sense when seen from the perspective(परिप्रेक्ष्य/संभावना) of the cost of regulatory compliance(अनुपालन). As stated above, there is definite(निश्चित/स्पष्ट) overlapping(अतिव्यापी/ढंकते हुए) between the current regulatory powers of the RBI and the proposed(प्रस्तावित) regulations for the payments industry. A unified regulator can thus help in lowering the compliance costs and enabling(सक्षम) the seamless(समेकित/अखंड) implementation(कार्यान्वयन) of rules. Further, there is the real risk that a brand new regulator may be unable to match the expertise(विशेषज्ञता/विशेष जानकारी) of the RBI in carrying out necessary regulatory duties. So it makes better sense to have the RBI take charge of the rapidly(शीघ्रता से) growing(बढ़ रही है) payments industry which can ill-afford regulatory errors at this point. The fact that the RBI has made public its dissent against the Union government’s idea, suggests(प्रस्तावित करना/जताना/ संकेत करना)that the central bank has serious problems with the dilution(कमजोर ) of its current powers over the financial sector. However, the RBI’s demand for the centralisation of regulatory powers also brings(लाना) with it the need for exercising a greater degree of responsibility. At a time when there are increasing risks to the stability(स्थिरता/मज़बूती) of the domestic financial system, both the government and the RBI must look to work together to tackle(पकड़ना/उलझना) these risks instead of battling( जूझने ) over regulatory powers
Important Vocabulary
1.Gesture(संकेत/हाव-भाव)
Synonyms: action, body language, expression, indication, nod
Antonyms: speech
2.Dissent(मतभेद/असहमति)
Synonyms: discord, dissension, disunity, objection, opposition
Antonyms: acceptance, agreement, approval, concurrence, harmony
3.Loggerheads(आपस में भिड़े/मूर्ख
Synonyms: tortoise, chelonian, cooter, leatherback, loggerhead
4.Prefer(बढ़ाना/प्रधानता
Synonyms: adopt, choose, go for, pick, promote
Antonyms: dislike, hate, refuse, reject, decrease
5.Purview(अधिकार/सीमा)
Synonyms: acumen, apprehension, attention, attitude, awareness
Antonyms: blindness, ignorance, misconception, misinterpretation, mistake
6.Essence(मूलतत्त्व/निष्कर्ष)
Synonyms: aspect, basis, bottom line, character, core
Antonyms: abstract, exterior, exteriority, outside, top
7.Extension(विस्तार/वृद्धि)
Synonyms: delay,development, expansion, increase, postponement
Antonyms: decrease, base, body, lessening, shortening
8.Stance(मुद्रा/उदेश्य/स्वरूप),
Synonyms: attitude, posture, stand, viewpoint, bearing
9.Extent(सीमा/विस्तार)
Synonyms: amount, breadth, degree, duration, expansion
Antonyms: extreme
10.Oversees(देखरेख)
Synonyms: command, inspect, baby-sit, boss, captain
Antonyms: follow, ignore, neglect, obey
11.Definite(निश्चित/स्पष्ट)
Synonyms: bold, categorical, clear-cut, definitive, distinct
Antonyms: ambiguous, doubtful, equivocal, fuzzy, indefinite
12.Seamless(समेकित/अखंड)
Synonyms: logical, smooth, coherent, consistent, ordered
Antonyms: intermittent, irregular, rough, uneven, defective
13.Overlapping(अतिव्यापी/ढंकते हुए)
Synonyms: extending, overlying, projecting, protruding, coincidental
14.Dilution(कमजोर
Synonyms: concoction, dilution, infusion, mixture, preparation
Antonyms: ascent, increase, rise
15.Battling( जूझने )
Synonyms: argue, clamor, contend, feud, strive
Antonyms: agree, make peace
16.Tackle(पकड़ना/उलझना)
Synonyms: accouterment, apparatus, appliance, gear, goods
17.Overlapping(अतिव्यापी/ढंकते हुए)
Synonyms: extending, overlying, projecting, protruding, coincidental
18.Perspective(परिप्रेक्ष्य/संभावना)
Synonyms: angle, aspect, attitude, context, mindset
