Economic inclusion

With reference to your editorial, ‘Holistic inclusion’ (December 31), way back in 2006, the RBI had envisioned ‘financial inclusion’ and initiated efforts towards this end. The RBI’s achievements in this area are commendable by any standards, be it the number of basic savings bank accounts opened, such accounts having operations, new rural branches opened, KCCs or GCCs issued to small marginalised sections, the BCs or CSPs attached to commercial banks attending to these accounts or the increasing number of villages covered by financial inclusion year after year. This, despite the RBI not having the resources to reach out to all the nooks and corners of the country at the same time.

Government support for financial inclusion started much later, from 2010 onwards, directing all public sector banks to open 25 per cent of their branches in rural areas. PMJDY, in 2014, definitely gave an impetus to the efforts to open more basic savings accounts. However, without economic inclusion and financial literacy, the goals of financial inclusion can never be achieved. The RBI has been in the forefront of financial literacy since 2007, issuing guidelines to commercial banks, and monitoring their activities in this regard on a regular basis.

But the RBI has not had much of a role in economic inclusion. Therefore, 100 per cent financial inclusion will be a mirage unless the government spearheads economic inclusion on a war footing and ensures that all sections of the adult population are employed in income generating activities and the elderly are provided with pensions.

Rugmani Vinod

Thiruvananthapuram

Linking all credit accounts with biometric identification such as Aadhaar and sharing the information with credit information services companies will stem multiple borrowings which land borrowers in debt traps. However, the recommendation to phase out interest subvention on short-term crop loans is not in good taste.

The argument that the interest subsidy scheme has distorted the credit system and impeded long-term investment is not true. In fact, it is the lifeline of small and marginal farmers. The suggestion to introduce a universal crop insurance for small and marginal farmers at a heavily subsidised rate will be a great relief for farmers exposed to market and climate change risks.

The committee’s suggestion to digitise land records and issue tenancy certification will make them eligible for formal credit at concessional rates. What is needed on the part of the government is the political will to implement the recommendations of the committee.

Philip Sabu

Thrissur, Kerala

Building on Sansad Mahal

Manasi Phadke’s piece, ‘Wah! Sansad Mahal’ (Tweakonomics, December 31), will, in all probability, be skipped by policymakers as just another expression of envy by a scribe who missed the new year party @Sansad Mahal. But it makes a case for revisiting all the real estate owned and occupied by ‘government’, from Rashtrapati Bhavan down to the remotest village office.

Perhaps, Rashtrapati Bhavan, sprawling over 320 acres, may be in a position to accommodate several Central government offices and residences of VVIPs, if modern building patterns and technologies are used. So too with the Raj Bhavans. Think of the resources such a change would release. Maybe, Central and State governments will be able to wipe out their entire deficits. Will someone take this message to the finance ministry before it goes into quarantine to put together the Budget?

MG Warrier

Mumbai

Made for accidents

Taxis dropping off passengers at Chennai airport have got into the habit of zooming off at breakneck speed to exit within 10 minutes in order to avoid paying the hefty ₹150 parking fee. This not only inconveniences passengers, it sets the stage for accidents. Clearly, 10 minutes is too short a time and the fee too hefty for that duration. Vehicles should be given at least 15 minutes, and if this is exceeded marginally, a nominal fee should be charged. That’s only fair. Safety is of prime importance.

V Balachandran

Chennai

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