The editorial “In public interest” (Business Line, February 26) is on the pitfalls in opening up more banks to the private/industrial sector, by the Centre. The fate of business house/private banks such as Global Trust Bank, Times Bank, Bank of Rajasthan, Bank of Punjab, Centurion Bank, and so on, is well known. If at all there is a lesson to be learnt from this, it would be to move cautiously. Banking is nothing but managing risk -- and not producing a tangible item like cement, steel, oil, and so on.
The opening up of the aviation policy to the private sector proved very costly for the national carriers. Giving undue and undeserving advantage to private/industrial sectors would certainly hit the functioning of public sector airlines and banks. Let the Government be aware of the imminent pitfalls in its enthusiasm to open up new banks. The RBI should be allowed to function in the best interests of the nation.
R. S. Raghavan
Crusader of PURA
In the sudden demise of P. V. Indiresan, society has lost a critical thinker, scholar and social conscious-keeper par excellence. His impressionistic analysis of social concerns, economic issues and political policies was always refreshing and rewarding.
His life mission of PURA has revolutionised the rural livelihood setting. His copious elucidatory inputs on PURA serialised in Business Line form a resource referral to researchers and policy-makers at different levels. When I wrote a book on PURA Model in 2005, he not only gave approval to reproduce his published papers, but also sent, amidst his busy travel schedule, a valuable special introduction.
P. Jegadish Gandhi
Tax on super rich
Chidambaram’s Budget will be watched closely for his actions with respect to increasing taxes on the super rich. It will be prudent for him to check the status of effectiveness of such policies in a country like France, where introduction of heavy tax on the super rich resulted in exodus to neighbouring countries. The net effect will be no tax instead of higher tax.
Vijay Shivram Menon