National Pension Scheme

This refers to ‘Untangling the National Pension Scheme’ (December 14). The NDA government in 1999 commissioned a project called ‘Old Age Social and Income Security’ aimed at providing adequate, secured and steady income to retirees. As a result, a new National Pension Scheme surfaced requiring employees to make a defined contribution. But it evoked a mixed response, mostly negative, from government employees.

A subscriber with good knowledge about financial investments and with an affinity for risk-taking would chose the active option, under which PFRDA allows the contributor to decide on the amount of funds to be allocated among different financial assets such as equity, corporate bonds, and G-Secs.

On the other hand, for the risk-averse subscribers and those who don’t have much knowledge about financial markets, the auto option, with a standardised percentage of allocation depending on their age, would be right. Moreover, there is the option of switching between the categories — from active to auto options and vice-versa. To tackle the inertia, NPS can have as default ‘opt-in’, with an option to opt-out.

Cuddalore, TN

While the Congress has every reason to be happy about its electoral performance in three important States in the Hindi heartland which saw it returned back to power after years, it has its task cut out when it comes to fulfilling the electoral promises, especially one relating to waiving farm loans. In Chhattisgarh, it promised to waive loans of farmers within 10 days of government formation.

Even if it managed to waive loans of farmers, its impact on the State’s exchequer will be huge and hardly address the rural distress engulfing the State.

Loan waivers and increasing the minimum support price for crops hardly constitute an effective solution to the crisis afflicting the agriculture sector.

Measures that ensure farmers have direct access to markets, freeing agriculture markets from the clutches of middleman, strengthening irrigation systems, better implementation of farmer-friendly crop insurance, and streamlining supply and storage facilities would go a long way in addressing the problems plaguing the agriculture sector.

It is time political parties refrain themselves from promising loan waivers as a permanent solution to rural distress.

Sholavandan, TN

This refers to ‘89% of Telangana’s new MLAs are crorepatis, 40% have criminal records’ (December 14). Interestingly, the credit for compiling and putting such vital information in the public domain goes to the Association for Democratic Reforms (ADR) and Telangana Election Watch, which had reportedly relied on the affidavits filed by the legislators themselves. Does such state of affairs augur well for any democracy worth its name? The government/Election Commission of India must take a serious view thereof and initiate much-needed remedial measures on this count in the larger interest of the nation.

New Delhi

This refers to ‘Denting RBI’s autonomy will prove costly’ (December 14). It is too early to presume that the government is bent on bending the banking regulator for its financial need to tide over the fiscal deficit.

It is immature to remark that the new RBI Governor Shaktikanta Das would ignore the required prudence while considering the outstanding issues with the government.

Issues such as surplus capital with the RBI, relaxations in credit flow to MSMEs and the shadow banking sector, easing the PCA framework, and abatement of the loan default norms pertaining to the power sector are of paramount importance to boost growth, especially at a time when the economy is in a growth trajectory.

Showing flexibility to meet the needs of the economy is not against the prudent laws governing the monetary and banking system.

Kottayam

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