Letters

Letters to the editor dated November 13, 2020

| Updated on November 13, 2020 Published on November 13, 2020

Job reservation for locals

This refers to ‘A retrograde step’ (November 13). The problem before the country is not only unemployment but un-employability. Educational institutions, particularly professional and vocational, have failed to meet industry requirements. Haryana Chief Minister’s blinkered proposition to reserve 75 per cent of the vacancies in private companies for locals tantamounts to foisting unskilled and ineligible workforce on private entities. Creation of uneven field and depriving more promising candidates from other regions of the country shall have a key repercussion: private companies will contemplate shifting to other business-friendly States.

Deepak Singhal

Noida

Settling tax disputes

With reference to “Making tax battles less taxing” (November 13), there is a need for agile and sustainable implementation of the two confidence-building schemes announced by the Centre for resolution of disputes related to direct and indirect taxes. Primarily, for the mindset of both taxpayers and the Taxman to change there should not be any disruption in the earnings cycle of both. Entanglement in endless disputes results in both losing precious time and resources on account of frivolous charges and claims.

The liberal and self-guarded schemes provide two-way protection to both sides — from undue harassment for honest payers and nil vindication for tax officials exercising discretion in settlement of disputed amounts.

Sitaram Popuri

Bengaluru

Social objective of banks

There can be no two opinions that ‘Banks should primarily serve a social purpose’ (November 13). The very purpose of bank nationalisation was to usher in ‘mass banking’ and rescue the rural economy from the clutches of the usurious moneylenders. This has been served admirably by the public sector banks; hiccups along the way, notwithstanding. Now what the PSBs need is total operational independence for the bank boards and management, especially with regard to lending decisions.

However, banks cannot serve the social purpose free of cost. When opening the ‘zero balance Jan-Dhan accounts’ deprives them of low cost funds, not compensating them for the service rendered amounts to a double-whammy — every such customer has to be served across the counter.

The Department of Financial Services may be doing a commendable job by implementing schemes such as ‘Mudra loans’. However, collateral-free loans, especially when there is rising incidence of NPAs, are not good for the banking industry and by extension to the economy.

V Jayaraman

Chennai

A key role

Banks in India have all along been having a social purpose and their role in poverty alleviation and rural banking can never be undermined.

Banking services are different from other services and everyone, regardless of their economic status, utilises banking services which include pension account, disbursal of subsidies and grants, normal banking transactions, etc.

Further, agricultural and priority sector lending are essential for India .The benefits of such services the banks render under social objectives come back to the banking system and it is illogical to subsidise them for the social role they play. It’s like charging people for the oxygen they consume from the atmosphere.

M Raghuraman

Mumbai

Push for housing sector

Apropos ‘Stimulus 3.0 homes in’ (November 13), the Dhanteras gift for housing is not only a demand booster but also an employment generator which will benefit the migrant workers a lot.

Even in the midst of pandemic-based negative growth, developers and buyers of homes have aptly been given tax incentives and infusion of funds. Millions of jobs have been lost in the pandemic and the boost to the housing sector will be a stepping stone in the process of creating jobs. Optimism prevails in the housing sector and further incentives will push the sector towards a smart recovery.

NR Nagarajan

Sivakasi

LETTERS TO THE EDITOR Send your letters by email to bleditor@thehindu.co.in or by post to ‘Letters to the Editor’, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.

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Published on November 13, 2020
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