A report from Kasaragod in a local newspaper says that five types of social security pensions, including old age pension and pension for the physically challenged which were being paid through electronic money order will hereafter be paid only through bank accounts under the DBT scheme. Coercive measures like this to force poor people to have and operate bank accounts is not justified. The onus of reaching benefits should be with the disbursing authorities. Thus, the existing arrangements for payment should continue in respect of beneficiaries who have not opened bank accounts until they are able to do so.

MG Warrier


There are ways out

This refers to editorial, ‘Roadblock to growth’ (June 29). The economy is facing a vicious circle of credit stagnation. On the demand side: poor corporate earning unable to relieve debt burden, no incentive for investment, credit stagnation. On the supply side: huge NPAs and stressed assets, absence of quality borrowers, risk aversion, safe cash parking avenue-G-sec, credit stagnation. The way out is (a) an expansionary fiscal policy with calculated risk of higher fiscal deficit; (b) greater involvement of States in productive investment; (c) expanding tax base by curbing black economy; and (d) occupying the space being vacated by China in the external sector.

Trupti Goyal

Jodhpur, Rajasthan

The IIM factor

This refers to the editorial, ‘Death by degree’ (June 30). What may be done is to provide for a periodic audit of academic activities by a committee appointed by the IIMs themselves with a government nominee or by the coordination council envisioned in the Bill. A bureaucratic check is an insult but unfettered autonomy is also not desirable.

YG Chouksey


In this fast changing world, there is a need to grant greater functional autonomy to the premier business schools. The IIMs have proved their capability and extending flexibility in operation will enable them to move up the ladder. The government would do well to ensure that the maxim ‘Maximum governance, minimum government’ is not confined to paper.

Srinivasan Umashankar


What Rajan is saying

Last week, when Raghuram Rajan talked about yet another impending “Great Depression”, people did not wait to find out what exactly that meant. They panicked, and interpreted his warning to mean that the present recession is going to slide into the depression of the 1930s which witnessed a catastrophic economic breakdown of the capitalist system. The governor has been trying to warn governments and multilateral financial institutions about problems in dealing with demand for growth. He has been under consistent attack from the government and from industry for holding on to interest rates. Yet, he has steadfastly maintained that Indian economic growth cannot be autochthonous, and that it is dependent on the global economic climate. It is in this context of the debate around chasing higher growth that there is need to pay attention to Rajan’s arguments — and understand what he is saying.

J Akshay


Big disappointment

Recently, SEBI announced new norms for startups and SMEs. In fact, both the government and the regulator have been taking progressive and rigorous steps to make listing and raising capital for SMEs, easier and simpler.

Yet, it is a known fact that the SME platform launched by BSE is being used by fraud companies and/or individuals to launder money and evade tax. This is shocking. The BSE SME platform has been a big disappointment for investors. BSE is trying to achieve higher growth, thus it is perhaps compromising with surveillance which has possibly worsened the situation for India's oldest exchange. Unlike the mainboard, companies’ applications for listing in the SME segment does not go to SEBI. It is the exchanges who grant listing consent on their own.

Rajeev Kapadia


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