Letters

Letters to the editor dated February 26, 2021

| Updated on February 26, 2021

Should IBA be under RTI?

This has reference to ‘Why is Indian Banks’ Association not under RTI?’ (February 26). The IBA is a unique arrangement and it is undertaking many supportive activities for banks, including wage settlement for bank employees. It is not compulsory for banks to become member of the IBA and the latter's decisions are not binding on any participant either.

But the IBA is privy to many developments in banks and is in a position to influence many industry-level decisions.

It is not the ownership of an organisation but the beneficial interest that is relevant and if the government has any direct or indirect role in its functioning that organisation should be brought under the RTI.

In the case of IBA, public sector banks are major stakeholders and utilise its services for many of their needs which have a bearing on the common man and hence IBA should be brought under the RTI. By the same logic, even private sector banks should be under the RTI as they handle public money and are governed by the RBI which, again, is a government-owned body.

M Raghuraman

Mumbai

 

Regional stock exchanges

Given the huge surge in participation in the stock market, the idea to have multiple exchanges across across the nation is to be implemented. The merger of individual exchanges and wiping out the entrepreneurial energy and capabilities across individual regions, be it the Madras Stock exchange or the Calcutta Stock exchange or the Delhi Stock Exchange with its unique features and characteristics of the stocks traded, has increased the risk of such events. Investors’ wealth is at stake and cannot be left in a few persons hands as it has been demonstrated repeatedly.

It is time the concept of regional exchanges are pushed forward and implemented early.

Balakrishnan V

Chennai

Automatic Chinese FDI approval

It has been widely reported that the Union Government is looking at easing FDI restrictions from China by allowing companies from the country to invest up to 25 per cent in companies in India through the automatic route. It also means that Chinese FDI can further increase if approved.

In the recent past, India faced serious threat to its internal security, best certified by the events in Galwan Valley and other places.

Though the military de-escalation process has started, it is in the preliminary stages, and most experts have warned that it would be unwise to believe that China would go back to the original positions it occupied prior to the recent conflicts.

Further, in business and commerce, the trade surplus is hugely in favour of China. Many industries and businesses in India are almost in control of Chinese companies.

The mobile phone industry, for example, is dominated by Chinese companies, and these have almost killed the Indian mobile handset makers. In this context, the move to favour Chinese FDI in India is puzzling. This will particularly may harm India’s interests in trade, defence and internal security.

D Bhutia

Guwahati

 

Rules for social media

In a bid to control the misuse of social media platforms and hold social media intermediaries accountable, the Centre has notified a slew of rules and regulations and announced its immediate effect.

By framing new rules and regulations to police BigTech platforms, India has joined the list of countries like Australia and France to sent out a clear message about the imperative need for them to recalibrate their existing business models in line with local regulations.

The government has legitimate reasons to regulate social media intermediaries such as Facebook, WhatsApp and Twitter given the space they offer users to both disseminate truth and spread misinformation and hatred.

However, care needs to be taken to ensure that regulatory oversight over social media platforms does not end up in crushing criticisms and dissent of the citizens over its policies.

M Jeyaram

Sholavandan, TN

LETTERS TO THE EDITOR

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Published on February 26, 2021

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