No need for more SROs

Ths refers to ‘RBI’s SRO norms, a positive step’ (January 31). The recent draft guidelines on Framework for Self Regulatory Organisations (SROs) in allowing to have more SROs functioning as ‘complementary’ to the existing Regulator appears to be paving way for re-structuring or rather minimizing its size of RBI.

We already have many voluntary associations such as IBA, FEDAI, AMFI and MFIN etc taking care of different aspects of the financial sector. There is no need to add any more SROs or independant associations. Having more such establishments would lead to diluting the existing structure and functions.

Instead, the Regulator needs to think on horizontal expansion of existing associations rather than going vertical.

GS Santharam


Asia burning

Apropos the article ‘Will a burning Asia affect India’ (January 31), the Gaza war has created a complex situation drawing in many state and non-state actors into the conflict.

Though the offshoot of the Gaza conflict, the Yemen’s Houthi attacks has severely impacted a major oil supply artery, it is unlikely to seriously disrupt Indian oil supplies.

India’s largely non-aligned foreign policy, inspite of the recent tilt towards the US, is standing it in good steed.

India is also rebuilding relations with Iran, increasing its investments, and desirous to develop the Chabahar port. Iran is also interested in reenergising its energy relations with India, a large and growing importer of oil. The Houthi rebels are unlikely to intentionally attack Indian vessels passing through Red Sea.

While the conflicts ranging from Israel to Myanmar will have some impact on India, the pragmatic foreign policies of India and its balancing act will ensure that their impact on oil supplies will be minimal.

Kosaraju Chandramouli


Relief for salaried

Regarding the Editorial ‘Tax Tale’ (January 31), it’s encouraging to see an increase in personal income tax submissions (Increased returns filing and Direct taxes), leading to a 10-fold surge in the Centre’s total tax revenues over the past two decades. Credit must be given to individual taxpayers for their contribution.

However, as the Editorial highlights, it’s imperative that individual taxpayers receive some respite, and a reassessment of corporate taxes is overdue.

Corporates, especially with the emergence of new technologies such as AI, cloud computing, mobile apps, etc., are reaping substantial profits. It’s time to consider higher taxation for corporations and provide relief to the salaried classes.

The Centre must give priority to the interests of individual taxpayers.

Vasanth Rajendran


Political control of UCBs

Apropos ‘UCB Directors should carefully go through auditor’s report’ (January 31). It is a fact that most UCB’s are controlled by political leaders and lending norms ignore the consonance and statutes.

The recent case of Raghavendra Co-op Bank’s collapse in Bengaluru points fingers also at RBI, apart from lapses by the bank management, which failed to red flag irregularities periodically.

Under the circumstances, it would be ideal if an official designated by RBI is nominated as full time director of a UCB to minimise frauds, since depending entirely on auditors may not be fool proof to safeguard the interests of the depositors.

Rajiv Magal

Halekere Village