This refers to ‘You have only one chance to deposit scrapped notes worth over ₹5,000’ (December 20). By and large, citizens have accepted the measures undertaken by the Government and the RBI in deference to the broader objectives of fighting corruption, black money and fake currency in the system. The instructions now issued, restricting deposits to just once, giving discretion to bank officials to accept or reject deposits of SBNs and re-routing such deposits compulsorily to deposits under the Taxation and Investment Regime for the PMGKY, smacks of arbitrariness. If someone alleges that the RBI is acting under ‘instruction’ from the Centre to ‘promote’ fund-raising, the allegation may stick.

Such a casual approach to currency management can impair the public trust not only in the central bank but in the banking system, and this can have long-term implications for the economy.

MG Warrier


Taxing troubles

With reference to ‘Time to get rid of income tax’ by Rajkamal Rao (December 20), the fact that less than 2 per cent of Indians pay income tax shows that something has gone drastically wrong. By this yardstick most people now should be below the poverty line. The salaried are the main contributors. Did any government look into this? The Government must go all out to identify tax evaders and bring them under the tax net for the demonetisation exercise to have the desired impact; till now it has mainly affected genuine taxpayers. If the Government is unable to streamline the tax system it is better to abolish income tax.

Srinivasan Velamur


The Government is determined to improve tax compliance which has been the cause of worry as fiscal slippages have dampened growth and boosted inflation. The former is good for cheaters and latter is a tax on the poor. Tax is a tool that can reduce disparity. Since the earning capacity of the few and emancipation of the large can’t be done overnight, it is the rich who are forced to remain clean and prove themselves to be honest by paying tax.

RK Arya

Faridabad, Haryana

Totally confused

The RBI has said it will issue ₹500 and ₹50 notes soon. When, is the big question. It is feared that the new notes would be hoarded by unscrupulous elements.

The gap between the Government’s intentions and the welfare of the common person is widening daily. Cutting PF interest rates only adds fuel to the agony. Looks like the Government and the RBI are totally confused.

S Ramakrishnasayee

Ranipet, Tamil Nadu

Going cashless

Most people are comfortable with currency transaction and we continue to print currency notes. All the propaganda about cashless transaction is intended to hide the folly of Modi Inc.

The disadvantages of going cashless outweigh the advantages. There is higher risk of identity theft, and the risk of hacking will only grow. With the poor grievance redress, people will have no easy recourse if they lose money online.

There are no stringent legal processes to deal with this kind of fraud. And if you lose your phone, you become helpless. Besides, how many can afford smartphones? The digital medium may prove a challenge for the tech-unfriendly, aged, and illiterate who will need time to adapt. And the most dangerous demerit is it could open a spending trap. According to behavioural finance theorists, the pain of parting with money is felt more acutely if one uses physical cash.

KA Solaman

Alappuzha, Kerala

Focus on children

This is with reference to ‘India must focus on education, ending child malnutrition’ (December 20). The root causes for child labour are poverty and unemployment. The Government and NGOs should work in unison to tackle these.. Even educated families employ children instead of finding means to educate them. We need good education and health facilities to dispel poverty and death due to malnutrition.

Veena Shenoy

Thane, Maharashtra

LETTERS TO THE EDITOR Send your letters by email to or by post to ‘Letters to the Editor’, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.