Financial literacy

| Updated on January 09, 2018 Published on August 29, 2017

This refers to your editorial, ‘Saving the saver’ (August 29). Indians save around 31 per cent of the GDP; in China the figure is around 50 per cent. The savings pattern has deep-rooted cultural and social underpinnings. As the working age population is surging, it clearly indicates a higher demand for housing and gold in future. The real estate obsession is an Asian phenomenon, and the passion for gold is unique to India. Investment in gold is guided by the need for liquidity and social obligations such as marriage of daughters; gold is an excellent collateral for loans.

Savers distance themselves from financial products mainly because of the high transaction cost and unsuitability of the products to their needs. Investment in physical assets is seen as a good hedge against inflation. This calls for developing better inflation-indexed savings products. The appetite for financial products can be boosted only by increasing financial literacy. This must begin in school and college.

Philip Sabu

Thrissur, Kerala

Cautionary tale

The devil has got its due with the special CBI court sentencing Dera Sacha Sauda chief Gurmeet Ram Rahim Singh to 20 years’ RI. The court has also done well to slap a fine of ₹30 lakh on the accused out of which ₹14 lakh would be given to each victim as compensation. Followers would do well to distance themselves from such spurious godmen who use all the tricks of the trade to dupe gullible people. This is also a warning to cheats and so-called godmen.

NJ Ravi Chander


The verdict is welcome. But this is only the order of the CBI. One hopes the verdict will be upheld by the courts in case he files an appeal. In India, many criminals have emerged from incarceration and are living peacefully, thanks to our judicial system.

S Ramakrishnasayee

Ranipet, Tamil Nadu

It is unfortunate that the likes of Ram Rahim Singh are bringing disrepute to genuine spiritual gurus who have maintained an exemplary character while guiding millions of followers on the path of dharma. People must be judicious in following the right guru; equally, it is important not to throw the baby along with the bath water.

CV Krishna Manoj


Good news

The good news is that both India and China have agreed to mutually disengage in Doklam. Cooler heads seems to have prevailed and the stand-off has been deftly steered towards a gradual backing off. Maybe the fact that Prime Minister Modi will be rubbing shoulders with President Xi Jinping in a week was instrumental in ending the confrontation.

Can anyone claim outright victory? Not really. All three — India, China, Bhutan — can claim that they got what they principally wanted. But none of them has gained sufficient leverage to stop the others from repeating what happened. Trust is at a low. Both India and China are wary of when the other will next attempt to assert superiority. The Line of Actual Control has stayed peaceful since 1967, unlike the Line of Control between India and Pakistan. India and China can no longer take that peace for granted.

JS Acharya


Flashpoint in TN politics

It is intriguing that acting Tamil Nadu Governor Vidyasagar Rao is sitting on the letter of withdrawal of support by 19 MLAs and shirking his responsibility of ordering a floor test. His procrastination lends substance to MK Stalin’s allegation that he is an agent of the BJP. It is no secret that K Palaniswami and O Panneerselvam are more than willing to do the BJP’s bidding. Even with an alliance with the EPS-OPS AIADMK, the BJP does not stand a chance to gain political relevance in Tamil Nadu. A party wedded to the Hindutva ideology and Hindi imposition cannot supplant the ideals of Periyar and Anna. The differences in splinter AIADMK groups are based on self-interest.The political situation looks as though the State is heading for election in which the DMK may stage a walkover.

G David Milton

Maruthancode, Tamil Nadu

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Published on August 29, 2017
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