This is with reference to the article, ‘Banking on cooperatives is better business’ by B Yerram Raju (December 30). The mission, objectives and ideals of the cooperative movement are excellent in our country. But more drastic reforms are required, particularly with respect to the composition of governing bodies and their role, accountability, tenure and age limit of members. As regards governance, the element of corruption is no less in the cooperative set-up. There is political involvement at every level.

Ravindranath Shetty

Mangaluru

When the Centre holds

With reference to your editorial, (December 30), domestic consumption is going to be robust in the months to come. The ‘Make in India’ campaign is a step in the right direction notwithstanding the fact that our currency has declined by 3 per cent. We must note with caution that our CAD has improved due to the curb on gold import. However, there is a danger of lifting the ban on this. Given the implications of all this on the economy, foreign investors are bound to have confidence due to a stable government at the Centre. This must be augmented by the RBI to curb inflation.

VK Sridhar

Erode

The rupee has done well compared to other emerging market currencies thanks to some strong fundamentals and positive sentiments. But this can change if sentiments are not translated into action. The INR  has depreciated considerably over the last few weeks primarily because of adverse CAD and external reasons. The Fed in all probability will raise interest rates from mid-2015 while the RBI will start reducing interest rates, which might lead to reverse cash flows from bond market. Also, subdued exports will continue to impact our CAD, while higher disposable income due to lower inflation may encourage people to buy gold. Stock market buoyancy has been more due to increase in multiples rather than due to growth in the number of companies. Things can reverse quickly if sentiments change.

Sridhar Narasimhan

Email

Bank ‘strikes’ again

It’s disturbing to note that bank employees are planning to hold a nationwide strike on January 7 and then from January 21 to 24. The 25th is a Sunday, followed by Republic Day. And then they will go on indefinite strike with effect from March 16 if there is no ‘settlement’ between The Indian Banks Association and the striking union. We are lucky that not a single bank employee is in the army or the BSF, and thus our borders are safe and secure all year round.

Hansraj Bhat

Mumbai

After coal and insurance it is the turn of land, ostensibly to placate one man — Barack Obama. It looks as if we are moving from licence raj to ordinance raj. According to the Constitution, the power to promulgate an ordinance is essentially a power to be used to meet an extraordinary situation and it cannot be allowed to be perverted to serve political ends. Economic agenda is definitely not an extraordinary situation.

Ordinances are only temporary laws as they must be approved by Parliament within six weeks of reassembling or they shall cease to operate. However, governments have promulgated some ordinances multiple times. No matter that the BJP has come to power in Jharkhand and Maharashtra and is striving hard to seal a pact with the NC or PDP or both in Kashmir to form the government in J&K, the bottomline of the Assembly election results is that 16th Lok Sabha may surpass the ordinance promulgation spree of previous Lok Sabhas and create a new record.

Ettirankandath Krishnadas

Palakkad

Erratum

With respect to the report titled ‘Regaliaa promoters offer to resign after Karvy Financial invokes pledge’ (December 29), Sudhakar Reddy, former CMD of Regaliaa, has clarified that it is incorrect to say the residential project, The Ferns, “did not take off”. Most units have been sold and the project is already under the management of a residential association. The error is regretted.

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