This refers to the editorial “No Parivar matter” (Business line, September 3). The Sahara episode clearly reveals that despite regulators, the big private players have been able to cheat the innocent people, mostly from the low- and middle-class. The situation had become so bad that the apex court had to intervene. What is the use of having regulator and laws? Will the government intervene at least now?

Vedula Krishna

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Money management

With reference to the article “CRR should not be diluted” (Business Line, September 1, banking is essentially an intermediary function of channelling the deposits of the savers to the needy segment of society, constituting the commercial segment.

The cash reserve ratio (CRR) has been used by the RBI to ensure liquidity in the system and to accelerate or decelerate the growth process.

Banks are required to rigorously follow the Basel norms. They are required to maintain 9 per cent of their risk weighted assets in the form of capital and specified reserves. The banks are obligated to increase their capital base also to keep pace with expanding assets.

P. Esakki Muthu

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(This article was published on September 3, 2012)
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