Letters

Letters to the editor dated December 2, 2021

Updated on: Dec 02, 2021

Privatisation of banks

This refers to ‘Nation-wide bank strike on Dec 16-17 to protest against privatisation bid’ (December 12). The United Forum of Bank Unions has given a the strike call to protest against the Central Government’s move to privatise two public sector banks.

Several banking reforms have already been initiated by the Centre in recent years in order to reimpose public confidence in banks. These have been in the form of capital infusion, pursuing ‘big’ loan defaulters who have escaped abroad, and so on.

However, privatisation is not a solution for the banking sector’s perils. Efficient monitoring of loans, curbing political interference, timely punishment of wilful defaulters, and honest audits are the need of the day.

The Centre has to focus on these important issues. The UFBU should also take up the issue of pension revision with the government.

Katuru Durga Prasad Rao

Hyderabad

Welcome move by RBI

Apropos ‘Welcome clarity’ (December 2), the RBI's decision to selectively adopt the recommendations of its Internal Working Group in streamlining the licensing policy, ownership and control norms for private banks is a welcome move.

Accordingly, the initial capital/net worth required to set up a new universal bank, small finance bank (SFB), and conversion of urban cooperative bank into an SFB has been enhanced considerably to be able to absorb risk better and improve lending capabilities.

But there appears some contradiction in the Finance Ministry’s policy moves. On the one hand, it has been merging weak public sector banks with stronger ones and, in the process, bringing their numbers down. And, on the other, it has been making radical changes in policy formulations, paving the way for the growth of small private banks.

RV Baskaran

Chennai

Farmers’ agitation

Conflicting views are emanating from farmers’ leaders on continuation of their agitation. One group is in favour of discontinuing the agitation and returning to their respective homes following the assurances given by the government; they are open to settling some of the residual issues later. As far as the legal status to MSP is concerned, it needs wider discussions and a rational approach needs to be adopted.

Where is the storage capacity for the crops purchased at MSP? Should they be purchased only to get rotten in the ill-kept godowns? From where will the government find the resources to pay about ₹10-lakh crore?

It is incumbent on the government to apprise the farmers about the issues involved.

Yash Pal Ralhan

Jalandar

Growth revival

The country's GDP has grown at a higher than expected 8.4 per cent in the quarter ending September of the current fiscal. That this has been on the strength of high exports and robust performance of key formal sectors of the real economy bears testimony to economic recovery even as private investments have continued to remain sluggish.

While the economic policy of the government has played its part in catapulting the September GDP beyond its pre-pandemic value, the contribution of the country’s accelerated vaccination drive targeting adults cannot be underestimated. With private investment still continuing to be in the red, the government needs to loosen its purse strings to boost demand, for it holds the key to script a sustained economic recovery.

M Jeyaram

Sholavandan, TN

Value added narrative

The three farm laws were surprisingly repealed by the Prime Minister owing to the pressure exerted by the leaders of a few States.

The repeal would have long-lasting repercussions, and will not be confined to a few States or crops. It is time the small and marginal farmers are made aware of the benefits that will emerge from reforms in the sector. The need of the hour is the spread of factual information among the gullible farmers.

Rajiv Magal

Halekere Village, Karnataka

Published on December 02, 2021

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