FM and markets

This has reference to the report “MF investments via Rajiv Gandhi equity scheme may get tax sops” ( Business Line August 18).

Our new Finance Minister’s anxiety to prop up the stock markets is quite an old story. He wanted to keep stock indices at higher levels even during his earlier stint as Finance Minister.

No wonder, after becoming FM again, he has shown keen interest in reviving market sentiment by announcing certain measures, or doling out promises that would definitely jack up the indices.

Had the new FM shown the same enthusiasm towards raging inflation and widening fiscal deficit, the people would have been better off.

Less than 3 per cent of the population is interested in stock market indices.

The rest are happy in keeping the money in the safe coffers of banks and are satisfied even if the returns are negative (interest earnings have fallen short of price increases).

K. V. Rao Bangalore

Financial literacy

Apropos the article “Obstacles to Financial Inclusion” ( Business Line, August 18), though banks and other institutions rendering financial services are ready to include rural and urban people, their success on financial inclusion depends upon the extent of financial literacy.

Such financial literacy is at a low level.

NGOs have to be able to help in this regard.

N. R. Nagarajan Sivakasi
(This article was published in the Business Line print edition dated August 20, 2012)
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