Banks let off

With reference to the editorial, ‘In a fix’ (November 18), the regulators have penalised the six banks but not penalised or charged individuals/traders involved in the scandal.

Also, the basis of arriving at the fine has not been disclosed. The regulators should have been more transparent in their ruling explaining the basis of the fine, thus letting off the banks with lighter penalties.

Sridhar Narasimhan

Email

No answer

It is laudable that the traffic police and RTO officials have initiated steps to punish erring autorickshaw drivers when they fail to adhere to meter fares, refuse to ply on demand or demand exorbitant amounts even for short distances In the past few months, whenever I have had to take autos, the drivers have either refused to switch on the meter or expected at least ₹20-30 extra.

They also behave arrogantly when confronted and say, “You don’t question political leaders who have amassed wealth disproportionate to their income by taking bribes openly but only question us when we demand a paltry 10 or 20 more due to our genuine difficulties”! Quietly we pay up as we don’t have a convincing response to this.

Tharcius S Fernando

Chennai

Stop putting pressure

The RBI governor may not yield to pressure to reduce policy rates on the pretext that both retail and wholesale inflation are at a low. He may prefer to wait and see as inflation is set to stabilise. The recent fall in inflation rates concern food and fuel prices which could easily reverse. Moreover it is due to the base effect which will soon wear off.

By lowering policy interest rates prematurely, banks cut deposit rates and savers may shift from financial savings to physical savings. Hence the RBI should steel itself to relentlessly fight against inflation. If it signals that it has started backing off a higher threshold inflationary pressure will get entrenched and it will become virtually impossible to eradicate inflation from the system. TSN Rao

Bhimavaram, Andhra Pradesh

Well said

In ‘My family and other women’ (November 18), Sravanthii Challapalli has exposed the double standards of dogmatic and boorish people. Women in India need empowerment, self-esteem and self-belief. CG Kuriakose

Kothamangalam, Kerala

One for the Government

The Government’s decision that staff with autistic children will not be transferred is a step in the right direction. Those raising disabled kids need a sustained support system and once they have adjusted to the environment in one place, they suffer enormously in the event of displacement.

The nature of the disability is such that constant care is imperative. The Government’s gesture is a boon to employees who will now be able to attend to work and care for their children till they attain superannuation instead of seeking voluntary retirement.

HP Murali

Bangalore

Risky route

It was the dearth of fixed equity capital that led India to open up the economy. But the irony is that the FDI is miniscule in comparison with FII and hence the issue of black money has become very serious. As the Government has not enlarged the scope of FDI, the outsourcing of services is making things difficult to deal with.

At one stage the evasion of tax is obviously due to ambiguities in the tax laws or freedom to save tax under DTAA. The tax evaded money acquires the shape of black money.

Now this money has no or very little risk premium. In order to save the depreciation of currency, India is too greedy to allow this money to come through portfolio investment or PN mode. Once it comes within India it is laundered and can’t be given the name of black money. This is where the investigation is becoming difficult. The rules for FDI, outsourcing and relationship with tax havens should be made as realistic as possible..

RK Arya

Faridabad

Let rupee depreciate

This refers to the news item, ‘Oct exports dip 5%; surging gold imports widen trade deficit’. No doubt this is an alarming situation and quick remedial measures are required. The demand of exporters to reintroduce interest subvention, if conceded, may only partly solve the problem. The problem is not only dwindled export but also surging imports. How about allowing the rupee to depreciate a little bit? This will provide necessary incentive for the exporters and at the same time put the reckless import of gold under check.

S Kalyanasundaram

Email

Corporations rule

This refers to your edit, “In a fix”. In the western world of today, the rules are framed by the big corporations for themselves. These economies are run by and for corporates instead of for We the People. This is the main issue and it must be addressed first for some good news to come from the western world, other than the big fixing by these big banks.

The electoral processes have changed there and the corporations can easily buy these law-makers by contributing to their campaign. This way they have their own rules to run everything from the utility company to their education system. In the US, even elections are conducted by the big corporations and no audit is possible in counting these votes. Many questions are now being asked about many electoral wins which were surprising.

The government is dying a slow death in the western world and that is the reason for these crimes. We can learn from these and set a proper rule-based business environment and not sell the government to private corporations. Nothing can replace a government: imagine a cricket match without an umpire. There is no such thing as a free market, the government provides the legal framework and courts for business contracts to be honoured, stable currency, police, fire stations, military and an educated workforce for the businesses to employ. Other infrastructure such as ports, roads, airports are being used by the corporations to conduct their business, so without government there is no free market. Let’s understand this first and try to strengthen our governments all over the world so as not to be in a fix again.

CR Arun

Email

LETTERS TO THE EDITOR Send your letters by email to bleditor@thehindu.co.in or by post to ‘Letters to the Editor’, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.

COMMENT NOW