Letters

Letters to the Editor dated December 25, 2019

| Updated on December 24, 2019 Published on December 24, 2019

State of the economy

This refers to ‘Some green shoots are sprouting in the economy, says RBI chief’ (December 24). The functioning of the RBI in tandem with the reform measures of the government has started to exhibit encouraging indications. To propel this uptick, the banking regulator has to step forward with more actions to clean the financial system.

The stress in the banking and non-banking segments are hindering smooth financial intermediation and monetary transmission. The expansion of credit enables the gross fixed capital formation, besides facilitating optimum utilisation of the installed capacities of the economy. The lowered monetary policy rates are not stimulating the growth of economic activities because of their belated and partial transmission. The RBI must remove the roadblocks coming in the way of credit expansion. Cleaning the loan books of banks and NBFCs are of foremost importance, and the recovery of bad loans is crucial for this. Non-compliance of income recognition and asset classification is not rare among the banks; as a result of this, there is large divergence which harms the business of banks.

VSK Pillai

Kottayam

On thin ice

This refers to ‘JMM-ed alliance trounces BJP in Jharkhand’ (December 24).The reported fact that Jharkhand on Monday became the seventh State since May 2018 where the BJP has either failed to secure a majority or lost power must serve as a wake up call for its high command. What else could explain the Amit Shah- Narendra Modi combine’s persistance to politically encash highly emotive national issues. Unduly praising the BJP leadership in the State, lack of job opportunities, imprudent sidelining of the grassroot-level party workers as well as key political allies like the AJSU and the LJP while erroneously accommodating proven ‘turn-coats’ of rival parties have notably failed to convince the people.

It is no wonder that the popularity graph of the BJP, which at one time looked well set to ‘saffronise’ the nation’s entire political arena, has currently nosedived. Is the erstwhile ‘Magic of Modi’ on the wane nowadays? Will the adverse impact of the ‘unceremonious’ exit of the BJP from Jharkhand be replicated in the forthcoming Bihar and Delhi Assembly elections too?

SK Gupta

New Delhi

A partial victory

The students-led massive protests against the CAA and the NRC have already achieved partial victory, in that they have convinced people of the perils of the two and forced Prime Minister Narendra Modi to contradict his second-in-command Amit Shah on the NRC and distance himself from the proposed exercise. Chief Ministers of various States have also started to declare that they won’t carry out the NRC exercise.

Now, it will be extremely difficult for the Modi government to go against public opinion. The government of the day/Parliament cannot ride roughshod over “We, the People”.

In fact, Modi has had to make a statement that pan-India NRC was never on the table, much to Shah’s embarrassment. Shah issued the imminent threat of NRC at all-India level in an ill-disguised communal tone. Had Modi overruled the Home Minister then and there, the nation could have been spared much of the upheaval.

Nevertheless, Modi is yet come out with the much-needed assurance that his government has decided to shelve the NRC exercise.

One hopes that the nationwide protests will persuade the Modi government to shelve the CAA and the NRC and work toward strengthening national unity, acting on its promise to usher in acche din and raise the country’s happiness index.

G David Milton

Maruthancode, TN

Onion crisis

This is with reference to the soaring prices of onions which have touched ₹150 per kg. The steep rise in the prices of onions are hurting a vast segment of the population. To contain the runaway prices, both the Central and State should immediately intervene and work in tandem. The Centre should also consider giving a huge subsidy on onions to give some relief to the citizens.

Harminder Singh Gumbhir

Lucknow

Published on December 24, 2019
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