Despite the economic mess and rising unemployment problem, Barack Obama has been voted back to power. Elimination of Osama bin Laden is an important event that his first regime ensured. But the legacy of giving economic aid to Pakistan continued even in the Obama dispensation despite the US knowing too well that Pakistan misused the funds to strengthen the hands of terrorists operating against India. Obama should not take the victory as an endorsement of his Pakistan policy.
K. V. Seetharamaiah
Interest on CRR
This is with reference to “Govt gets it wrong on CRR” (Business Line, November 8). CRR has become the topic of some debate now, especially amongst bank heads. Crores of rupees of that part of deposits being held by the RBI on CRR do not earn any interest. If interest is paid on the amount perhaps banks might be in a position to pay higher interest to depositors. The lending rates are also indirectly related to some extent to the NPAs accruing with banks, since lack cash for industries may cause correspondingly lower profit, and repayment of loans becomes the casualty. CRR is idle cash which could earn interest that could be lent to industries.
Prolonged power cuts
Tamil Nadu is facing the worst power crisis ever. Loss of man hours due to prolonged power cuts debilitates the State's economy. Enforced idleness, loss of jobs for workers in cottage and small-scale industries, are some of the direct consequences of acute shortage of electricity. People strongly feel that the Government should fulfil its promise of uninterrupted power supply and do something to mitigate the unprecedented power outages sooner than later.
G. David Milton