Letters to the editor dated November 25, 2020

With reference to the article ‘Bangladesh stays in the fast lane’, from bottomless basket to creating a series of special economic zones catering to the global market and improving infrastructure, Bangladesh has indeed come very far. Infrastructure has a multiplier effect and it is heartening that Bangladesh Prime Minister Sheikh Hasina has acknowledged it. What is really heartening is that despite the pandemic, Bangladesh has managed to keep its textile sector running. India must leverage its friendly relations with Bangladesh and tap the business opportunities available there.

Noida

With reference to the column ‘Indian ‘Notional’ Party’ (November 25) there is no doubt about Rahul Gandhi and Sonia Gandhi’s popularity in the Congress, the doubt is about their ability to revive and restore the party as a formidable alternative to the BJP.

The way the ardent followers of the Gandhi family shout in protest against any occasional dissenting voices is proof enough of the latter’s hold on them.

It is the infatuation of the party members with the duo that is responsible for the status quo and the severe setbacks. Rahul Gandhi has been in key positions in the party for 16 years. How long will he take to establish his worth?

Pune

With reference to the report ‘AIBEA threatens strike over RBI panel’s idea to give banking licence to corporates’ (November 25), the AIBEA is right in terming the RBI internal panel’s recommendation to give banking licence to corporate houses as “most retrograde and unwarranted”. Its top leadership has also threatened to unleash countrywide agitation and organise repeated strikes if the government and the RBI allow corporate houses to take over banks Why have no lessons been learnt from the past?

Any such ‘back door’ attempts to facilitate the entry of some corporates into our already stressed banking sector, may create more problems than facilitating the revival of the economy.

Bengaluru

With reference to the article ‘A watershed in banking sector reforms’ (November 25), The target of achieving a $5-trillion economy necessitates an entire revamp of the banking system, besides making robust the regulatory and supervisory roles of the banking regulator and the government. Even though banks and NBFCs have made productive contributions to the growth of financial inclusion and transformed the large section of the underprivileged to avail the various fintech products and services, yet for the sustainable growth of the economy, it is essential to have more number of banks to ensure easy financial intermediation at lower costs.

While the apprehension that the corporates if allowed to open banks will pool the resources for funding related business activities and thereby cause the concentration of capital resulting in expansion of inequality in the distribution of wealth needs to be addressed with enforcing more reforms and regulations.

The recent deceptions committed by some private sector banks and NBFCs are an indication of the poor quality of governance in those institutions, besides the poor efficacy of regulation and surveillance. The regulator must look for fixing accountability on those departments that failed in enforcing financial discipline.

The investment-driven economy needs an impeccable banking system with robust governance and professionalism to deliver instantaneous tech-savvy banking services to accelerate investment. More private sector banks are essential to ensure a healthy competition among banks and it will compel the public sector banks to perform better.

The government must make PSBs investor-friendly and attractive to mobilise capital from the market rather than infusing capital at the cost of the exchequer.

Changanacherry

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