Stressed assets

This refers to comments invited by RBI on securitisation of stressed assets. A cursory glance through the report indicates several distinguishing factors between Securitisation of Stressed Assets Framework (SSAF) and the one related to standard assets. In the former the upside risk is unlimited to investors in view of the opacity in terms of asset backing involved. The Minimum Risk Retention (MRR) framework, which is envisaged under the SSAF scheme, should be made transparent through issuance of regulatory guidelines so that the same could be distributed between the originator and the resolution manager who is set to act as an intermediary to provide some level of transparency for the investors.

On the issue of whether ‘standard assets’ also should be included along with NPAs under SSAF, one is of the view that NPAs (stressed assets) alone should form part of the scheme in view of the high level of uncertainty surrounding NPAs  vis-à-vis standard assets.

Srinivasan Velamur


Layoffs in IT behemoths

Massive layoffs now being witnessed at IT behemoths, ranging from Google to Amazon, in the US have rattled Indian immigrants, particularly H1-B and L1 visa-holders who are staring at the prospect of returning back to India if they fail to find another job within the mandatory 60 days. In the last two months, the tech companies have laid off about two lakh people globally. The insecurities over not getting a job within the stipulated period could fuel more anxieties and stress among the laid-off over repaying existing education loans and other loans taken earlier. It is also time companies, from tech giants to start-ups, revisit their hiring policy to make it sustainable across the business cycles.

M Jeyaram

Sholavandan, TN

Learning gap

Apropos ‘Mind the learning gap’ (January 26), the rise in the number of enrolments in schools is something to cheer but the skills of those studying are not. It is obvious that the pandemic has impacted the poor more than the well-to-do in the field of education. With little income, the poor had no option but to deny their children education as the online system of education was unaffordable to most poor people. As a result the learning gap has widened more, and immediate steps must be taken to redress the imbalance.

Anthony Henriques


UPI for NRIs

Apropos ‘Helping hand to NRIs’ (January 26), indeed the National Payments Corporation of India’s move to make Unified Payment Interface accessible to NRIs from 10 countries is welcome. This will facilitate the NRIs to transfer money to resident family members’ account and withdraw money from their account when needed and for IPO purposes. Since UPI is recognised as a  bona fide payment medium with a good track record, NRIs can use this new facility without fear.

NR Nagarajan

Sivakasi, TN

Tax sop for small traders

This refers to ‘IT exemption sought for small retailers with turnover up to ₹3 crore’ (January 26). Protecting small traders will be a welcome step in the wake of unhealthy competition by corporates. Small traders provide a lot of employment opportunities to the youth. The MSME Act may be amended to offer an ‘umbrella’ to small traders during bad times.

Ashok Jayaram