The Reserve Bank of India Act 1934 has completed 80 years. Although it has been amended from time to time taking into account the recommendations of many committees and commissions appointed for various purposes there has been no comprehensive enquiry into its working with a view to replacing it with a new law in consonance with modern and recent trends in central banking.

Meanwhile, many countries have enacted new laws to replace the old ones relating to their central banks. Such aspects as the objectives of monetary policy, autonomy, and role vis-à-vis other regulatory bodies need to be looked at afresh in the Indian context.

The Financial Sector Legislative Reforms Commission has made some important recommendations that need to be taken into account. A commission with a view to formulating new legislation headed by a former finance minister or RBI governor on the review of the working of the Central bank could be announced in the Budget speech.

A Seshan

Mumbai

What’s the rationale?

When the Government is going to present its Budget soon, there is no rationale for the hike in LPG price. The bitter pill to boost sagging finances should be applied across the board and not just be limited to the common man; industry and trade should also be held accountable. Remove tax holidays, multiple tax exemptions and the largesse given to trade and industry which have resulted in inverted growth.

From the common man’s perspective, the first month’s report card of the Centre is alarming. Rise in petroleum and diesel prices, higher passenger and freight rail fares, and now the huge hike in LPG rates.

Ettirankandath Krishnadas

Palakkad, Kerala

Help young entrepreneurs

With reference to the article “From job-seekers to job-givers” by Preeti Mehra (June 30), youth are scared of acquiring skills on an exclusive basis unless there is a demand for them in the local area. any professional graduates are becoming entrepreneurs as most of them are not found fit to be employed in industries.

Skilled workers have been moving to other countries. Community-based conglomerates can help with finding land, ready it for use, and provide guidance to these entrepreneurs who struggle in the face of prejudices in society and have to grapple with low wages. The Government has been providing the free education and scholarships but the results are not impressive.

RK Arya

Faridabad, Haryana

Taxing regime

While there is a reasonably fair mechanism to assess salary income whereby the salaried class is a tax compliant segment, there is no fair tax assessment mechanism for professionals, the self-employed and the business class. While the salaried class is taxed to the last rupee, non-salaried income-earners are more or less left scot-free. This is should change.

N Vijayagopalan

Thiruvananthapuram

Plain aggression

This refers to “Existential crisis for Muslim moderates by Rasheeda Bhagat (July 1). Iraq’s plight has much to do with overzealous aggression by western countries in the name of democracy even as they eye the rich reserves of oil there. The intervention has failed miserably. Internal strife is best handled by the people concerned themselves. India must ensure the quick, safe return of Indians trapped there and devise a strategy in tune with the geopolitics of its neighbourhood.

YG Chouksey

Pune

Right call

Your editorial on the role of CAG is apt (“Wrong call”, July 1). It is because of CAG that the authorities have become indecisive which has impacted the economy adversely. CAG at times seems to be playing to the galleries and seeking media attention with half-baked knowledge of events based on hindsight. It is high time CAG is told what exactly their mandate is and asked to stick to it.

Sridhar Narasimhan

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.

Related Topics
comment COMMENT NOW