With reference to the article, “RBI allows too much money supply” (Business Line, September 5) it should be noted that at times of unyielding inflation, money supply in the system should be such as to enable people to buy essentials of daily needs without difficulty.

The present availability of money is quite reasonable in relation to the prevailing inflationary situation and commodity prices. The substantial fall in savings deposits in banks in recent time would vouch for the above fact. The lack of enough cash in hands when commodity prices rule high would cause immense hardship to the common man.



Drug trials

This refers to “Why clinical trials evoke suspicion” (Business Line, September 5, 2012).

The government should clear the Bill on protecting human volunteers in a drug trial, which is pending for eight years.

The medical industry lacks clear policy, transparent procedure.

Vedula Krishna


Debate on CRR

A formal debate on whether or not to continue with CRR would be most welcome. CRR is an important monetary tool in the hands of the RBI to control liquidity in the system, both in terms of maintaining a reasonable level of inflation and having conducive interest rates for the growth of the economy.

From the bankers’ view point, CRR is presently not fetching any value and their concerns are understandable as income, profit and resources are all now under serious strain.

S Umashankar,


(This article was published on September 5, 2012)
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