Talk @ RBI (BH:D180)

January 30, 2012

For an aerospace engineer to deliver a talk on the financial crisis at the Reserve Bank of India Study Circle might sound like walking straight into the lion's den!

But then this den is something I have been utterly familiar with since the days I started being familiar with things on this planet. Quite a few days from early childhood I would be hanging around at the bank when the school was closed and we couldn't find anyone look after me. 

The bank was in the same big building then but inside there were no computers and no cubicle separations. So going from uncle to aunty to uncle busy at their work desks was easy. In these offices, I have read, done copy writing, sketching and crayon painting sitting on chairs too enormous and high for me initially. Numerous lunches at the canteen. In the fast lane of memory, it seems like I quickly grew into those chairs. Sweet memories of the always welcoming and affectionate staff.

Met Susan aunty at her cabin before the talk."mudi okke kuranjalo mone," (You've lost so much hair, son) she said running her fingers through my hair.More than twenty years ago, she didn't have to reach up to do the same. "okke adjust cheythu vachekuva aunty," (It's all an adjustment, aunty) I said, afraid of losing my precious presentation comb over. Mariamma aunty walked in with something wrapped in white paper. Sugar coated cashews! The aunties had saved up for me from their share of the treat! More nostalgic flashback!

I admitted at the outset of the talk that it felt a little weird to be a speaker in front of Susan aunty, Raju uncle, Mathew uncle and Ponamma aunty among others and some faces like Pillai uncle and Parvati aunty conspicuous by their absence. But then, decades ago, they have heard my primary school recitations. They have read my pencil scribbled poetic aspirations. 

It took a while to get the computer going. Someone apparently set a password for the machine. Raju uncle saw me look at the watch. "Don't expect to start on time!" "Things will be on Indian standard time," said Susan aunty and they went on to discuss the lack of punctuality at the bank. "You are not supposed to listen to this," they joked. "I grew up listening to this at home," I confessed with a smile.

Since I was talking to veterans in the field and virtually insiders of the monetary policy system, I had made quite a few changes to presentation given earlier to the IAS academy students. The RBI training hall was much more comfortable than that venue. There were microphones and good air conditioning. More than a handful of the audience came ready with notepads and pens. There is nothing more inspiring than an attentive audience.

I hadn't changed the general thrust of the talk which is to look at the financial crisis as a banking crisis and a crisis of information. Major updates came from the World Economic Forum's Global Risk report and the Stiglitz-Sen-Fitoussi report. There was also a time restriction. The earlier talk lasted two hours, this one was to be half that time. I was hoping to trigger a discussion about RBI policies and safeguards. It worked. 

As soon as the floor was open for comments and questions, there was a comment about how the aggressive RBI interference had helped decrease the impact of the real estate bubble in India. RBI had "shouted from the rooftop" to banks to reduce their reckless lending in that sector and had sent inspection teams to banks that had risked too much. Fear was expressed about the increasing fascination with credit default swaps and special purpose vehicles in India. Next a question: Do I think gold is a waiting bubble in India? Then anotherquestion: Talking of fiat money, what do you think about the dollar? and a follow upquestion: But China still parks its reserves in US treasury bonds, doesn't it?

Winding up at 5:30. Audience looked rather pleased. I noticed nobody slept despite the evening timing. There were enough smiles, some laughs, plenty of head bobbing. Notes were taken! Layman's language was pointed out as the most positive aspect. Humor came in second. I was giddy like the small boy who had loved the attention and appreciation all those years ago. 

"I would like to thank Dr. Arun....or should I call you Unni, as some of us here have always known you?" asked Mathew uncle during the wrap up. It looked like many folks did not know that I was Amma son. "She wasn't going to reveal that fact had the talk gone downhill," I said!