PSBs under pressure
This refers to Karthik Srinivasan’s insightful article ‘PSBs need to adapt to stay competitive’ (January 29). The management issues raised deserve quick consideration and policy corrections.
The over-dependence of the Central and State governments on banks, insurance and pension/provident funds for their borrowings affect banks’ ability to earn market-related returns on statutory investments. Unless a retail market develops for government securities, banks and statutory bodies will not get market-related returns on their investments in G-secs.
Perhaps pooling of ATMs and exchange of local business between banks paving the way to close loss-making branches could be considered on a priority basis.
The Government should consider inter-mobility of manpower between PSBs following exchange/transfer of business for the purpose of consolidation.
MG Warrier
Mumbai
Reforms required
With reference to ‘Budget should push reforms agenda’ by YK Modi (January 29), it would be foolish not to give attention to the corporate sector and its woes. Bringing down corporate tax, removing flaws in the present GST structure and solving the liquidity and working capital crisis of MSMEs should be looked into.
Bal Govind
Noida, Uttar Pradesh
Aadhaar is undemocratic
Does the Constitution say every person should own a mobile phone? Even ‘Updation of Client details in Central KYC records Registry (CKYCR) System’, requires compulsory Aadhaar and email id. Why? Under which law is it mandatory to have email for share purchase and sale through brokers? Does a citizen have no right to buy and sell shares without email?
On the one hand the Government wishes to widen the tax base, on the other it deprives many who wish to file their I-T returns but have no email ids and mobiles. There are many who care about privacy. Why is the Government forcing them to use internet and mobile phones? No anti-piracy software is foolproof. Since Aadhaar is useless without mobile and internet it is not safe. There is no doubt that Aadhaar fails all the tests of a democratic set-up.
M Kumar
New Delhi
Making taxes less taxing
Low rates for lower income groups and high rates for higher income groups are likely to ensure improved tax compliance. An inflation indexed tax rate would ensure that revision is not a routine mechanism, but a rational one. Unless otherwise warranted duly audited and filed financial statements prepared according to prevailing accounting standards should be taken as the base, instead of the I-T department making calculations.
Why not have a progressively increasing tax rate on the gross income for individuals and turnover or net profit for business entities, thereby totally eliminating exemptions, relief, etc? This can be fixed for different assessees depending on the amount involved. This would bring more within the tax bracket and lead to better compliance.
Vazhuthur Raghavan
Bengaluru
Grossly big bucks
The quantum of money involved in the latest IPL auction has increased from ₹262 crore to ₹431 crore. This is ultimately borne by the general populace, whether a cricket lover or not. Why are players being paid astronomical sums, many of them uncapped? The money play in these games has no justification. Is it not like stock market speculation activity? The sport aspect has been hijacked.
RS Raghavan
Bengaluru
Forgo salaries
BJP MP Varun Gandhi’s suggestion to LS Speaker Sumitra Mahajan to urge rich MPs to forgo their salaries for the remaining tenure of the Lower House to narrow down inequality is laudable. He raised this in light of the Association of Democratic Reforms showing that 132 sitting MPs had declared assets of more than ₹10 crore each. How will the law-makers take this proposal?
HP Murali
Bengaluru
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