Letters

Excess storage

| Updated on August 20, 2019 Published on August 20, 2019

This refers to ‘Serious problem of overflowing granaries’ (August 20). The problem appears to be a strange one in a country with a sizeable proportion of the population living below the poverty line. An immediate solution for saving the grains from deterioration and addressing the problem of storage would be supplying the grains to these sections of people for a brief period. Public notices can be issued inviting consumers to buy at attractive prices. . Suitable provision of cash to the people can be considered to encourage them to buy the grains .

TR Anandan

Coimbatore

Economic reforms

This refers to ‘Remove curbs on business and let it grow’ (August 20). The fact that the BJP-led government was able to pass critical Bills on triple talaq and Article 370 in the Upper House, where it does not enjoy a majority, shows strong political capital.

The government should leverage this. Having a fairly young population can really act as a differentiator for us. Socialist policies are past their expiry dates and only please a section of voters. The idea of abolishing long-term capital gains tax is a good one, allowing for domestic savings move into much-needed sectors which are totally dependent on foreign capital.

Bal Govind

Noida

Financial condition

In the FICCI-IBA Banking Summit, RBI Governor Shaktikanta Das told leaders from the business and financial sectors that maintaining a “mood of doom and gloom” is not going to help anyone. The RBI Governor should not confuse the message with the messenger. Even if the messenger sports a smile, the message continues to be bitter. At a time when all sectors are facing headwinds and the government’s fiscal position does not spark joy, we expect more robust leadership from the RBI.

Nandakumar Venkatachary

Chennai

NBFC crisis

The default of DHFL on payment of three debt instruments adds to the existing uncertainty in this space. All these instruments were rated as investment grade by the rating agencies and attracted huge subscription. The loan book is reported to be nearly ₹1 lakh crore with 30 banks having an exposure of ₹40,000 crore. The situation is alarming and the gullible retail investors are saddled with repeated defaults. The pertinent question is how these entities were allowed to garner such huge amounts without any regulation. Though deposits were not sourced directly, the NCDs were funded by the public. It is more surprising that the regulators have today dispensed with Debenture Redemption Reserve (DRR) which was 25 per cent under the company law.

The RBI and the Finance Ministry repeatedly tweaked the prudential and income recognition norms restricting banks from expanding their credit portfolio, which resulted in the genuine requirements of the priority sectors not being met adequately. The capital adequacy ratios based on risk-weight assets were further impediments. When banks are mandated to hold statutory cash reserve and statutory liquidity, the NBFCs with higher risks are eased from DRR. The government to save the NBFCs should not expose the banks and public to grave risks.

S Veeraraghavan

Madurai

Podcast themes

Apropos the news report ‘Podcasts yet to tune into the sound of money’ (August 20). Podcasts have a great potential in rural areas. Useful government schemes like the revised Jan Dhan account facilities, and where to go in case of difficulties in the PM Fasal Bima Yojana could be loaded in podcasts for users. Podcasts about vacancies in industrial sectors can be useful for ITI students looking for jobs. On the subject of tourism, which is catching up in India, podcasts about interesting places with transport and accommodation facilities have great scope.

NK Bakshi

Vadodara

Published on August 20, 2019
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