The article, ‘How independent is the Reserve Bank Governor?’ by G Naga Sridhar (August 6) raises an important issue. In May 2014, Raghuram Rajan had said: “The government can fire me but the government doesn’t set monetary policy.” It is true the government has never used the RBI Act to give directives to the RBI. But during UPA I and II rule, the government overlooked the RBI on various occasions. Former Prime Minister Indira Gandhi nationalised banks twice (1969 and 1980). There was no discussion and no consultation with the central bank on this important matter.

The UPA I and II governments announced farm loan write-offs, and gave directives to banks on retail lending. With regard to top level appointments in public sector banks, there was a “garb of recommendations” from the RBI to the “appointments committee” that reported to the Cabinet. The government finally used to shortlist the names. Public sector bankers were aware where the power centre was.

Even with regard to the formulation of policy rates, the finance minister, P Chidambaram, used a clever ploy. He would air his views just prior to the announcement of policy rates. When the RBI took the opposite stand (when it did not oblige), he used to say he respected the autonomy of the RBI. That statement was for public consumption. He knew that monetary policy and the related policy rates were all “trivial” issues in the government’s relationship with the central bank.

KV Rao

Bengaluru

Prohibition problems

The recent agitations in Tamil Nadu by a certain section of politicians and students demanding prohibition defy logic. Prohibition was lifted in the State back in 1971 and since many politicians are directly or indirectly connected with the liquor industry, the agitation is a farce. No one asked the general public to over-indulge in drinking and lose their health and wealth. Lack of discipline and values, and purchasing power are the major causes for the increase in drinking and resultant ill effects. The government cannot entirely be blamed for this. Considering the revenue potential the industry has, it is impossible for any government to bring in prohibition overnight. At most, the sale of liquor can be regulated. It is politics that is behind the agitations and innocent people and students are enticed to turn violent and vandalise public property. If politicians are so concerned they should resort to campaigning against drinking and not take the law into their hands. The government should take a tough stand against all the miscreants.

M Raghuraman

Mumbai

Senior citizens’ woes

The letter from Arvindakshan K (‘Savings and stock markets’, August 6) echoes the views of millions of retired senior citizens, specially those who don’t get pensions. The government provides increments to their pensioners periodically but those who are retirees without pension benefits have to fight it out with the interest on their lifetime savings. With the cost of living increasing day by day and interest rates decreasing, it’s a losing battle. The stock market option is no good either. To safeguard retirees of this category, the government should fix interest rates on their existing deposits so they can lead dignified lives.

Vijay Vir Mangla

Hyderabad

Some things are secret

First an indiscretion on what was best left covert, the Myanmar cross-border episode. Now, parading a lone terrorist in the recent attack on Indian soil. To top it all, the media is awash with his “confessions” every other hour. We continue to be amateurish about keeping our secrets.

How can we ever hope to uncover those of our enemies! A terse one-liner that a terrorist had been caught alive was all that was dictated by prudence and strategy to be said. Every other nation treats terrorism extremely seriously. We seem to be content to regard it as a publicity outing. Our intelligence agencies are being grossly sidelined by governments holding transient power. Our sensitive institutions need to be ramrod straight, not given to bending let alone stooping.

R Narayanan

Ghaziabad, Uttar Pradesh

Power empowers

This is with reference to the article, ‘Empower the electricity regulators’ by SL Rao (August 6). Non-availability of electricity is one of the important reasons for the closure of many industrial units and small-scale industries. If India has to generate employment opportunities for its growing youth population, the new government has to improve supply of electricity to the most backward areas of the nation. It is pathetic to see many tribal areas and small villages go without electricity even as India boasts of becoming a superpower in the near future. Providing uninterrupted and subsidised electricity will give a fillip to small-scale and cottage industries in small towns and villages which will prevent the workforce from migrating; thus many problems relating to urbanisation can also be solved.

However one aspect of electricity supply which is not usually covered by writers is saving electricity and preventing wastage of electricity. People have to be educated on various methods of saving electricity which will enable us to divert the electric supply to backward areas and villages. Secondly, the State governments have to arrest power theft and stop giving free electricity to politically powerful firms.

Veena Shenoy

Thane, Maharashtra

Half-hearted

The government is making a half-hearted attempt to block porn sites. Like liquor and tobacco, porn site viewing also generates considerable revenue and an attempt to curb this should not be taken lightly. Moreover, if we ban one thing, some other sites can be developed. Can we control infinity?

In a recent judgement, the Supreme Court ruled that one cannot put a legal stop to adults viewing porn within the four walls of their home or in a space in a confidential manner. Further, owing to economic considerations, there is no real willingness to totally ban even those who are manufacturing harmful products in India. When such is the case, how can a ban be brought about for an intangible item like pornography?

The government has more important things to concentrate on.

RS Raghavan

Bengaluru

Well said

This refers to your editorial, ‘India unreformed’ (August 6). It is well said that to close a unit or not should be decided by the unit only and not by others. There may be other stakeholders. However, the claims of all the stakeholders, including labour, should be financially settled expeditiously as per law. This will make the promoters do business with ease; that will lead to phenomenal growth and contribute to tremendous employment opportunities. In the long run, it will be beneficial to the labour force.

S Kalyanasundaram

Email

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