Letters

Letters to the Editor dated March 19, 2020

| Updated on March 19, 2020 Published on March 19, 2020

Liquidity needed

The spread of the deadly coronavirus across the country and the spillover effect to the global market have aggressively affected cash flows in all the segments of the economy, and particularly the most vulnerable sectors. While the government at the Centre and State level are scrambling to contain the virus, it is also imperative that the business community not become risk-averse. In order to ease cash flow, the government must review tax laws.

The banking regulator should inject more liquidity into the system, direct the banks and NBFCs to enhance the repayment periods, and extend the timeline for the restructuring of loans outstanding against the MSMEs. Credit creation is essential to ensure that the borrowers are able to carry on economic activity. Loan waivers are detrimental to building up a robust credit and repayment culture, and therefore the practice must be reconsidered. An aggressive approach from the banking sector is crucial in reversing the ensuing recession. The Monetary Policy Committee must look for a more reasonable cut in the repo rate.

The falling stock market has paved an abundant outflow of capital from the capital market. It is vital to execute measures to instil confidence to restore the dynamism in the economy.

VSK Pillai

Kottayam

Global cooperation

When the WHO declared the coronavirus a pandemic, it clearly underlined the imperative need for international cooperation to combat the disease. No doubt, there exists some notable cooperation among nations at present, it is not as sufficient. While social distancing measures are indispensable to combat the coronovirus from spreading its tentacles among people at large, the consequent isolationist tendencies are strongly inhibiting information-sharing and global cooperation on the ground.

While countries such as South Korea and Singapore have quickly tested the larger parts of their country’s population, the US took decision to bring its citizens exhibiting the symptoms of COVID-19 within the ambit of testing as late as March 4. As the absence or lack of global standards on testing is making the fight more arduous and long, the time has come for countries to come together.

M Jeyaram

Sholavandan, Tamil Nadu

Political drama

Apropos ‘M.P.:Legislature has to decide majority but ensure MLAs have free choice, says Apex Court’ (March 19). The familiar game of ‘cat and mouse’ in Madhya Pradesh has now reached the Apex Court, with both the BJP and the Congress knocking striving to cling to powerur.

This comes after a string of nauseating and brazen ‘resort-politics’ dramas, at the expense of the tax-paying public.

The Supreme Court must extensively deliberate on the issue and come out with a meaningful, solid and long-lasting judgment, giving crystal clear guidelines, to not just save the voter from being a ill-fated mute spectator, but also to prevent future enactment of similar unsavoury antics which damage the very fabric of our cherished democracy.

Mahendra B Jain

Bengaluru

Digital payments

It was indeed surprising and shocking that ₹1.76 was levied as transaction-charges on recharge of ₹200 on the Dlehi Metro card. This actually discourages digital paments.

If the government really wants to promote digital payments, transaction-charges on payment through credit cards should be reduced, and paid the Centre, rather than traders. Banks can even discontinue exchangeable credit-points for use of credit-cards. They will in turn benefit from the manifold rise in transactions through credit cards.

The RBI should also fix maximum interest rate on delayed payments for credit cards. Malpractices of imposing penalties should also be regulated by RBI. The system of over-limit penalty should be abolished with banks having liberty to decline payment beyond permissible limit to the customer.

Subhash Chandra Agrawal

Delhi

Published on March 19, 2020
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