SFBs must scale up

Apropos ‘Small finance banks may be allowed to co-lend with NBFCs soon’’ (August 22). The intention of the RBI to allow small finance banks to expand lending into remote areas either singly or jointly with NBFCs is good.

For promoting credit business on a big scale in these areas, massive promotional and marketing strategies have to be evolved. Prompt identification of the needy borrowers and quick hassle-free disbursals are key for competing with other public sector banks already functioning in most of the areas for decades.

Katuru Durga Prasad Rao

Hyderabad

Nothing wrong in freebies

The Supreme Court, the Central Government and the RBI are concerned about freebies, but seem less bothered about the impact on the exchequer of the huge salaries, pensions and other concessions (free travel, etc) that public servants, ministers and legislators enjoy. Many State governments are borrowing money only to pay salaries and pensions to public servants as their revenue collections are not sufficient to meet the revenue expenditures.

The so-called freebies are welfare measures for the citizens. While elected representatives and government employees secure their life by dividing the major portion of State revenue, let the poor and unemployed too enjoy something in the form of freebies.

Girish R Edathitta

Pathanamthitta, Kerala

Pay disparity

This refers to ‘Chiefs of Nifty50 companies took home a hefty pay-packet in FY22’ (August 22). It is an interesting contrast that among the select 50 companies there are founder CEOs like Mukesh Ambani and Udai Parekh who declined any rise in their pay package. It is distressing that not a single woman CEO is in the list. That the IT industry (employing knowledge workers) pays the most to its top leaders does not raise an eyebrow but metal and mining industry ranking second does — perhaps because of skewed pay distribution.

The huge gap between the highest paid top executives of the public sector and the private sector points to one of the reasons why the former lack initiative.

YG Chouksey

Pune

Unlocking Indo-US potential

The US and India will mutually benefit if the US increasingly invests in India’s manufacturing sector, particularly in electric transport, semiconductors and new space technology. Further, the US can look to investment in artificial intelligence and R&D in these domains.

Post Covid, many nations want to decrease their dependency on China. The US can bank on India for shaping a new economic world order of mutual trust. India’s strength in its human resources can be utilised by the US for mutual benefit. Both nations should allow people to travel more freely by easing visa and stay norms.

Brij Bhushan Goyal

California, US

Green energy

It is hard to understand how a nation can be self-sufficient in minerals. Either the minerals are lying in the bowels of a nations territory or they are not.

Therefore, besides scouring for the hard to find minerals like lithium and nickel, there is little India can do to provide for the green energy initiative.

The environmental dangers of extracting some of these metals cannot be underestimated. There must be a balance between environmental concerns and economic development. The shutdown of the Sterlite plant in Tamil Nadu is a valuable lesson. Those living in the vicinity of mineral extractions and purification must be taken into confidence before initiating works.

Anthony Henriques

Mumbai

Preserving groundwater

This refers to ‘State restricts groundwater extraction, proposes penalty for wastage’ (August 22). There have been deliberations on conserving groundwater for many years and this one is yet another attempt. Ministries must enlighten farmers on the advantages of micro and drip irrigation methods over flood irrigation, by offering them incentives and subsidising the cost of investment.

Mere enactment of law may not hold water since skewed irrigation techniques are deep rooted and cannot be changed overnight.

Rajiv Magal

Halekere Village, Karnataka

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