Letters to the editor dated June 30, 2020

This refers to ‘Banks plan to step up focus on compromise recoveries via ‘one time settlement’ route’ (June 30). While the uncertainty of recovering the overdue amount from the borrowers is looming large, more innovative strategies are essential to control the growth of bad assets especially at a time when economic activity is dull.

The mere supply of cheaper credit is hardly beneficial unless the participants of the economy generate surplus income to service the debt obligations. Since such a possibility in the near future is unpredictable, banks should frame radical one-time compromise settlements to recover the bad loans. In view of the deferment of legal recourse otherwise available to the lenders, the government and the banking regulator need to frame a radical settlement policy to support the lenders and the genuine defaulters to contain the growth of the bad loans.

The policy must be easily executable to serve its objective — that is, lenders must get the benefit of the time value of money against the sacrifice they are making by way of a drastic reduction in the outstanding dues. The success of the one-time settlement depends on the realistic evaluation of the defaulter’s resources to honour the commitment.

Kottayam

This refers to ‘Narasimha Rao’s legacy’ (June 30). Indeed, PV Narasimha Rao’s contribution to both our economic policies and foreign affairs can never be overestimated. Whenever we talk about economic reforms and opening up the economy to greater private participation, it is Manmohan Singh’s name that comes to the fore. But Rao also contributed in good measure and must get equal credit for the same. What a irony that his own party does not give him enough credit and the respect he deserves.

Noida

This is with regard to ‘China won’t vacate Galwan Valley easily’ (June 30). India has unambiguously conveyed to China that its sovereignty is non-negotiable. Indeed, China is testing the waters by heavy deployment of troops at LAC in the false hope that India shall acquiesce. Now the situation has reached a point of no return.

It is heartening to note the world is putting its weight behind peace-loving nations. Further, the government is going full throttle by taking economic measures against China. At this juncture, the Opposition, keeping the interests of the nation in mind, should stop needling the government. Equally, the government needs to take the Opposition into confidence.

Chennai

The banning of TikTok, SHAREit, UC Browser and 56 other Chinese apps is a good call by the Centre. This is more a privacy breach concern of our citizens than a tit-for-tat for China’s military action.

Section 69A of the Information Technology Act empowers the Government to block any content in the interests of the country. Internet service providers should blacklist host and domain names associated with these apps. But this can pose security risks and may be exploited by hackers and cyber criminals. A simple ban won’t work. Since many of these apps have become a part of our daily life, people must be made aware of the substitutes, and our techies should also develop indigenous replacements.

Hyderabad

Apropos ‘Gujarat encourages ‘Desi cow breeding with financial support’ (June 30), it is indeed appositely timed and an ideal step towards preserving Indian cattle breeds, which are gradually nearing extinction due to reasons of low milk yield, etc.

Karnataka, for instance, must contemplate conserving domestic breeds like Malnad Gidda, Amritmahal and Hallikar, as these are the source for A2 milk and other by-products. The Karnataka Milk Federation must set up an exclusive department to promote these breeds and market their premium produce.

Halekere Village, Karnataka

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