This refers to the report ‘Bring housing finance under banking structure to scale up: HDFC Chairman’ (June 7).

In the case of the proposed HDFC and HDFC Bank merger, the merged entity is expected to have an asset base of over ₹27 trillion. The last few decades have seen parallel growth of “non-banks” which eat into the business traditionally belonging to banks and the RBI is struggling to acquire adequate regulatory and supervisory powers to protect the interests of their clientele.

The mention of “pooling of resources and lowering of costs” in the HDFC Chairman’s statement should also be seen in the context of the regulatory and supervisory convenience — if all the limbs of the financial sector doing banking business are brought under the same parameters of functioning.

Expeditious and successful merger of HDFC and HDFC Bank will pave the way for further consolidation in the Indian banking system.

MG Warrier

Mumbai

Checks and balances 

With reference to the Editorial “Off key” (June 7), the resultant multitude of trading loses owing to human negligence in prudent execution and effecting transactions of high volumes, either in derivative or equity market tantamount to a systemic failure, the poor standards of risk management and shake the investor confidence.

In the era of great technological advancement providing for automatic checks and balances at every stage and the prevalence of inbuilt capacity to strengthen the operational efficiency and safety are of utmost importance.

The lacuna of controls on such fat finger types of trades is highly deplorable and requires immediate corrective measures to prevent monetary losses and safeguard the reputation of trading and broking houses besides ensuring the faith in the market trading mechanism.

Sitaram Popuri

Bengaluru

Retail investors at risk

Old timers are generally terrified of pressing the wrong key in a fit of absent mindedness. This has deterred many from operating online trading platforms.

A survey would indicate the that it is only the more computer savvy younger generation between 20 and 35; who are active on these platforms.

Brokerages employing the best are not immune from such mistakes. Because the amounts are big such thing are reported. God know how many retail traders have made the same errors and have borne losses for their mistakes.

A voice confirmation of the order would help in minimising the errors. An extra zero or two could wipe away an entire lifetime savings. And there would be no recourse.

Anthony Henriques

Mumbai

Protect the currency system

This refers to ‘No proposal to replace face of Mahatma Gandhi on banknotes: RBI’ (June 7).

It is really strange and intriguing to gather from some unverified reports currently being floated in the national/social media suggesting that the Finance Ministry and the RBI were “contemplating” to use the faces of other prominent Indians, including Rabindranath Tagore, APJ Abdul Kalam on bank notes of certain denominations. How does such reckless, unverified and irresponsible reports find place in the public domain?

Mind you, such an ill-conceived idea, possibly aimed at “politicising” Indian currency notes’ security features, also prompted the Reserve Bank of India, vested with relevant powers under Section 24 and 25 of the RBI Act, 1934, to issue necessary clarifications stating that “It may be noted that there is no such proposal in the Reserve Bank.”

For sure, any wilful planting of such “frivolous and misleading” stories in the media, should be strongly dealt with by identifying and suitably punishing the real floaters of such “fake stories” as it is tantamount to playing traunt with the “sanctity and secrecy” of the Indian Currency System.

SK Gupta

New Delhi

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