RBI maintains status quo
This refers to ‘RBI keeps repo rate unchanged at 6.5 per cent’ (April 6). For sure, the RBI maintaining status quo in repo rate must have belied the hopes of various stakeholders, apart from surprising several financial experts who predicted a 25 basis point (bps) hike.
Notably, all this comes amidst RBI Governor’s claim that core inflation remains sticky alongside retail inflation trending above its tolerance level, after six consecutive rate increases aggregating to 250 basis points since May 2022.
The RBI’s latest stance may bring some solace for the banking sector’s creditors, who have been reeling under the adverse impact of rising rates.
Multilateral institutions like the World Bank and Asian Development Bank have predicted that inflation would cool to about 5 per cent this financial year. But considering the unpredictable domestic and global situation this seems unlikely.
Kumar Gupt
Panchkula, Haryana
Inflation remains elevated
The decision of the Monetary Policy Committee to keep the repo rate unchanged cannot be faulted. However, the stark reality is that despite the monetary tightening thus far, inflation continues to remain elevated, negatively impacting the country’s economic growth. While the primary mandate of the MPC is inflation control, care must be taken to ensure its monetary tightening measures do not dampen economic growth.
M Jeyaram
Sholavandan, TN
Bank fraud
This has reference to ‘Apex court googly on bank fraud’ (April 6). It is difficult to discuss and take concurrence of customers before classification as fraud. There may be cases where the deception would have started from the beginning like over-valuing security, submitting bogus documents, providing incorrect financial statements, etc., which may not be realised until over-dues appear in the bank accounts. Discussion with such a customer will not help much as irregularities would have gone beyond control and time is of essence for any action.
Discussion may help only in the case of an ongoing fraud, which may be more of an operational nature. Banks have their own mechanism of identifying fraud and internal audits and vigilance will throw light on weak areas. There is no need for customers to present the case as they will only mislead the proceedings and delay the process, which will go against the interests of banks.
M Raghuraman
Mumbai
Disruptions in Parliament
It is indeed a matter of concern to one and all that the Parliament session is being concluded without proper discussions on various pertinent issues. The ruling dispensation should have understood the seriousness in the demand of the Opposition for a probe into the Adani affair. The demand reflects the burning sentiments of millions of people.
AG Rajmohan
Anantapur, AP
Covid cases
Covid is raising its ugly head once again. In the present situation, the production and administration of vaccinations should be an ongoing process as the population continues to rise. Complacency in giving jabs to all the people has been making the Covid situation more alarming. The government should take the initiative to administer the vaccine to all until Covid passes into history.
KV Seetharamaiah
Bengaluru
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