It is really disturbing that major industrial countries hold much larger reserves of gold than emerging economies (“High time RBI bought more gold”, Business Line, October 5).

Then, does this alone account for the economic status of rich and poor economies?

In-depth study would reveal numerous factors, including imperialism and rapid advances in science and technology.

K. Gopalan

Bangalore

FDI in insurance

The Union Cabinet’s decision to allow 49 per cent foreign direct investment in insurance is a blow to small investors.

Insurance is an industry which uses people’s monies and invests these funds for the overall betterment of society.

There is no logic in seeking foreign investment into such an industry. There is no technology involved either.

J.V.L.N. Murthy

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Student loan

This is with reference to the article, “A time bomb called student loans” (Business Line, October 4). A loan ‘jubilee’ may suit Western society.

But recommending waiver of repayment for student loans in India is hazardous, as even those who can afford college fees will try to get a loan for their wards.

North Block mandarins should not be of the view that banks grow money on trees.

N.R. Nagarajan

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(This article was published on October 5, 2012)
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