With reference to ‘Banking institute turns to mobiles, tablets to teach Gen Y’ by K Ram Kumar (July 12), it is heartening to see that reputed organisations are making conscious efforts to keep pace with the changing times. If the financial sector has to do justice to the rising expectations of society, skill development and improvement of knowledge base has to be an ongoing process for all, from policymakers to the junior-most employees in banks.

For several decades, IIBF has been carrying out this responsibility excellently in respect of the bank workforce. Perhaps, with dependence on brick and mortar offices, and fewer teachers in the field, organisations such as IIBF may be in a position to spread their wings into areas beyond their mandated territories.

Maybe, to start with, an online foundation course in banking and finance for graduates could be considered.

MG Warrier

Mumbai

Compensate investors

This refers to your editorial, ‘Extracting full value’ (July 12). SUUTI plans to sell its stake in various companies and expects to rake in ₹60,000 crore. The stake sale is a good idea given the current boom in the market. A lot of small investors in UTI have lost money by way of interest. They had to settle for a nominal interest even in schemes where there was assured return of 14 per cent which UTI closed around 6 per cent. . Such investors must be compensated.

K George Varghese

Kochi

Watch spending

Having only recently slashed savings rates, the finance minister has once again invoked the Oracle — the interest rate on savings is the only enemy to our growth! He forgets that our economic push was enabled largely by high levels of savings. China’s savings are 67 per cent higher than ours, hence its superior economic clout.

India’s household savings, which have fuelled growth over the last few years, have steadily dropped from 11.63 per cent of GDP in 2007-08 to a 22-year low of 7.8 per cent in 2011-12.It has since dropped further.

What had given stability to our economy till recently is that around 70 per cent of the country’s savings comes from the household sector, yet these carry rates of return that barely cover inflation. Large savings favourably impact inflation and leverage capital that provide funds for investment, potential business and hence, economic growth.

Sadly though, government grabs these savings which are supposed to fund healthcare, primary education and old age, to use them in unproductive populist schemes that fuel inflation. The remedy lies not in discouraging savings but in making use of them for growth.

R Narayanan

Ghaziabad, Uttar Pradesh

Eat smart

The Kerala government’s proposal to impose 14.5 per cent ‘fat tax’ on junk food in an effort to curb the consumption of such food is a welcome step. It is not enough that only our phones become smart, it is time people become smart about what they eat. We demand superior quality unadulterated fuel for our vehicles but when it comes to fuel for the human body we compromise. We should eat what suits our DNA and not ape the West blindly.

TS Karthik

Chennai

Devaluing will help

With respect to ‘Where is the rupee going?’ by Gurumurthy K (July 11), it is high time the RBI and the Government revisited their policy and devalued the rupee by 2 per cent every month so that exports will pick up and we will definitely achieve the export target of $300 billion fixed for this year. Correspondingly, the domestic economy will improve substantially.

A Mariappan

Madurai

Pay panel

With reference to ‘Pay panel: Centre to use savings to bridge ₹20,000-crore gap’ by Surabhi (July 11), the Centre will need funds to pay salaries and pensions in view of the 7th pay commission awards. Arrears could be paid in two instalments. The hike should not impact the fiscal deficit.

S Muthulakshmi

Virudhunagar, Tamil Nadu

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.

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