Efficacy of CAG reports
The article ‘CAG could have done better’ (November 15) widely covers all aspects of the performance of CAG. Regarding the appointment of CAG, the Union Government must follow the appointment system in CBDT and CBIC where the top posts of chairperson and members are selected from the parent cadre of IRS only. Likewise, the civil services have IA&AS cadre whose officers are posted across all government departments concerned with audit and accounts. Therefore, the CAG should also be appointed on seniority basis in the parent cadre of IA&AS.
The CAG teams conduct audits in various Central and State government departments and public sector units regularly according to their annual plans. However, in scam cases, the reports should be submitted to the government on real-time basis so that adequate and appropriate actions are taken within reasonable and statutory time limits. Irrespective of controversies, the CAG is the most efficacious organisation to handle cases of irregularities, misfeasance, mistake and wilful defaults. The organisations executing welfare schemes and DBT must keep their records clean.
Women exiting work
The article ‘Why women drop out of work’ (November 15) has endorsed this year’s Nobel Prize winner in economics, Claudia Goldin’s view that in the Indian labour market women opt out of work not because of marriage but child birth, which she brands as ‘motherhood penalty’. It must be noted that women coming out of the workforce can be very useful for their family. They can raise the children well, leading to growth of human capital in the future. In fact, home-makers contribute a lot to the economic development of the country.
Supervision of cryptos
This refers to the concern raised by ECB’s chief supervisor on ‘Loophole in rules letting banks dodge ECB’s crypto supervision’ (November 15). Unlike other asset classes crypto as an asset class exposes banks to enormous risk in view of its price being determined purely based on demand and supply. Further the stipulation of MiCAR (Crypto-Asset Regulations) that issuers of stable coins keep 60 per cent of reserves in bank deposits may put banks under severe stress due to the volatile nature of such deposits. Though EU’s framework places banks as a ‘crypto asset service provider’ the fact that other service providers controlled by banks are not treated in a similar way may lead to crypto assets being out of the regulatory ladder of EU.
Other asset classes are assigned risk weights and capital adequacy norms are applied based on their risk exposures. It is essential that all crypto service providers are also brought under ECB’s supervision not only for measuring risks crypto assets are exposed to but also to set aside required capital to guard them from unforeseen losses. This is more so since crypto assets are not backed by any underlying assets for determining their price.
This refers to PRS Oberoi’s passing away. Prithvi Raj Singh Oberoi, fondly known as ‘Biki’, didn’t just build hotels; he built experiences that brought magic into the lives of everyday travellers. Being part of the hospitality industry, he rightly believed people are the most valuable asset. The imprint he left on our hearts, as patrons of the Oberoi Hotels, is indelible.