Letters to the editor dated October 29, 2020

With reference to the report ‘Interest waiver: Lenders, credit bureaus race against time to identify borrowers’ (October 29), though the ex gratia payment to be credited back to specified borrowers will not be a large amount per borrower, the task for the lenders is voluminous, given the number of accounts involved.

The timelines stipulated by the government necessitates the lenders to move swiftly to finish the assignment well on time.

As the chunk of beneficiaries is small borrowers it is also crucial to make them aware of the scheme to minimise the possible grievances. Giving back the interest on interest charged on the loans for the period from March 1 to August 31 of the current year will ease the financial stress of the specified borrowers, and curtails the possibility of the performing loans turning bad. Looking at the tremendous work involved a relook at the stipulated timelines is imperative and an extension will help lenders.

Changanacherry (Kerala)

It will be a massive exercise for banks to identify the eligible borrowers.

As all banks are now on the Core Banking platform, they depend on the system to get the data for (a) identifying the eligible borrowers who satisfy the laid down conditions; (b) develop a system to arrive at the differential amount between compound interest and simple interest for each individual loan accounts; and (c) to complete the process by November 5.

After completing this herculean task, bankers will be flooded with enquiries from borrowers on short or non credit of ex gratia interest which would take away much of their productive time. It would have been ideal for the bankers, if the deadline is extended till December 31.

Chennai

With reference to the editorial ‘Simple arithmetic’ (October 29), after Independence, India embraced the policy of socialism and non-alignment, internationally. However, oblivious to the tension building up on its own northern borders,

India paid a heavy price in its war with China in 1962, suffering a humiliating defeat.

Since then, despite being a major importer and several moves by India to reach out to China, not to mention the much publicised bonhomie between Prime Minister Modi and President Xi Jinping, China has continued to act against Indian interests, culminating in the violent clashes at Galwan Valley in June.

It is the expansionist China that has forced India to move closer to the US.

There is no use talking peace and non violence to a nation that considers India a thorn in its flesh.

Chennai

Signing of BECA is well timed and necessary. Earlier India was in two minds as it was disinclined to offend China.

This strategy is mistaken by China as a sign of weakness. Though the US is using such platforms to vent its anger against China, its allegations are justified. Chances of tensions receding between India and China are remote in the near future and China can be brought to the negotiating table only if its false aura of invincibility is shattered.

Noida

With reference to the article ‘Labour codes — a step in the right direction’ (October 29), the new three labour Codes are timely reforms on labour laws needed to expedite the structural changes to ensure recovery of the pandemic-hit economy. The new codes are simplified versions of the existing labour laws. What’s more the new laws look after the interests of migrant workers who are badly affected by the pandemic.

The worrying factor is the increasing prominence for contract labour and its impact on the permanent labour concept and strengthening the hands of employer to hire and fire labourers.

Sivakasi

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