Letters

Letters to the editor dated June 24, 2021

| Updated on June 24, 2021

Strengthen coop-banks

Apropos Editorial ‘Forced rescue’(June 24), it was only after the PMC Bank failure that RBI and the government woke up from their slumber to make amendments in Banking Regulation Act to allow reconstruction or amalgamation of a bank. Unfortunately, depositors do not have any mechanism to prevent the coop banks’ questionable loan advances. In sharp contrast entities of Primary Agricultural Cooperative Societies (PACCS) at the village level have been working rather smoothly though some political interference in staffing does influence their working. The loan recovery of PACCS is better than urban cooperative banks.

RBI must frame policies with more checks and balances for coop banks and ensure that they are net-worked under CBS operations in line with other commercial banks.

If RBI is overburdened, a separate regulator must be mooted. This is the right time to strengthen the cooperative banking structure.

Brij B Goyal

Ludhiana

Fugitive offenders

In the Mallya-Modi-Choksi cases it is hard to understand how the top management of these banks believed them in the hope of getting high voltage business. Even for a small business advance bankers usually conduct a pre sanction survey and other due diligence.

It is shocking as to how banks have taken things for granted while sanctioning Letter of credits to the above parties who have used benami accounts in getting these letters of undertaking discounted to fake accounts etc. When banks advances turn inot NPAs, it is the small savers who pay the price. Mere attachment of properties is no good solution unless they are sold at a reasonably fair price. It is time these ‘big fish’ are brought to book immediately.

Katuru Durga Prasad Rao

Hyderabad

Third Front manoeuvres

The Third Front conundrum is still not solved with different non-BJP parties having their own prerogatives in seat sharing in the next elections. Though the efforts of Sharad Pawar and Yashwanth Sinha are appreciable, given the people’s disaffection towards the BJP government, its feasibility is doubtful. It is possible to form a coalition without Congress party provided all non- BJP parties come together including the regional parties, setting aside their differences. The United effort to unseat the BJP is difficult but possible. People are vexed with the policies of ruling party — be it demonetisation, the haphazard implementation of GST, the growing sedition cases, rising prices etc. The BJP also is aware of this growing discontent and is sending its representatives to BJP ruled States to effect a course correction. The BJP has a better understanding of power and has started setting its house in order. Hence, the Third Front needs to be backed by strong will power from all parties, with a single minded focus on unseating the BJP.

TSN Rao

Bhimavaram (AP)

Indian Farmers beware!

Apropos “No takers for Pakistan’s low-priced corn, globally” (June 24) is undeniably a call to the entire cross section of Indian farmers to strive hard to maintain quality of their produce — at all costs, which is the basic prerequisite for fixing MSP as well as competing with international trade, which privileges quality over price.

While the farmers are absolutely right in demanding fair price and MSP for their produce, even the consumers have the right to demand quality for the produce they buy.

Sops offered by governments are to be considered as a mere bonus for the hard effort that farmers put in and not an unconditional reward.

Agricultural universities and scientific community must educate the farmers on quality aspects.

Rajiv Magal

Halekere Village (Karnataka)

LETTERS TO THE EDITOR

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Published on June 24, 2021

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