Safe deposit lockers

Apropos ‘RBI extends deadline for banks to complete renewal agreements for existing safe deposit lockers by a year’ (January 24), it is indeed a welcome move. More importantly, banks have also been advised to facilitate execution of fresh/supplementary stamped agreements with their customers by taking requisite measures and provide a copy of the executed agreement to them.

Notably, the RBI has taken due cognisance of the Indian Banks’ Association (IBA) reportedly having devised its own ‘model agreement’, being at variance with the comprehensive RBI guidelines on compensation policy/liability of banks, since issued in August 2021, involving the omission of the relevant Para 7.2 thereof. As per media reports, the IBA is also being advised to review and revise its model agreement to ensure that it fully complies with the requirements of the RBI’s aforesaid instructions.

Vinayak G

New Delhi

Capex needs to rise

Apropos the editorial ‘Capex challenge’ (January 24), since the outbreak of the Covid pandemic, India has been tackling the socio-economic challenges rather smartly even as most developed countries are trying hard to avert recession. There are some pain points though. Low appetite for formation of capital assets is one of them.

The contribution of the Central and State governments and the private sector is crucial to make the Indian economy more robust and vibrant by way of augmenting the capital expenditure. The Central government has been providing incentives — in the form of investment allowance, depreciation allowance, production linked incentives, etc — to firms that earmark more funds for fixed asset investments. In addition, Union Budget 2023-24 may provide special tax-credit to encourage small and medium enterprises to allocate more towards capex.

S Lakshminarayanan

Vriddhachalam, TN

Product certification

Apropos ‘US: ‘Magnitude of fraud’ led to ending organic pact with India’ (January 24). This is a serious allegation. Not only will APEDA and Indian certifying agencies be worried, but also farmers producing food products that are worthy of organic certification. It is time the Agriculture Ministry swings into action to safeguard India’s interest.

Rajiv Magal

Halekere Village, Karnataka

Simplify procedures

It is heartening to learn that India is one of the top three countries in the world as far as area under organic farming is concerned. One earnestly feels that the government should take steps, and that too quickly, to make the nation  numerous uno in organic farming, which is indispensable for the people of the country to lead a healthy life. For that, it has to keep the procedures of allowing organic farming simple.

S Ramakrishnasayee

Chennai

MSMEs get timely aid

This refers to ‘ECLGS saved 14.6 lakh MSMEs’ (January 24). During the Covid crisis, the government’s decision to guarantee loans given to MSMEs was criticised by many, since there was no immediate burden on the government as the assistance was to be provided by banks and NBFCs. However, the scheme gave MSMEs a breather, especially at a time when they were cash-strapped. Had the loan support not been given at the right time, most of the MSMEs would have had to shut shop by now.

Durga Rao Akasapu

Jadavpur, Kolkata

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