With reference to the article ‘MPC must consider a pause in hikes’ (September 11); the repo-rates were raised in May 2022 after a gap of two years, when inflation started rearing its head. Post Covid, the repo rate was increased by the MPC three times successively. In India, the major reason of inflation is the short supply of commodities, supply chain irregularities and the oil price.
But now with the RBI giving the green signal for rupee Invoicing in International trade, rupee is slated to be a global currency. Further hikes will decrease credit availability which will have a direct impact on production leading to even stagflation.
Hence the MPC should think twice before raising the rates again.
Cutting Chinese imports
Apropos Editorial ‘Border thaw’ (September 12), with India striving to have neutral ground on the world stage by maintaining good relations with all including the US, Russia, Japan and other Arab countries, there appears to be a softening in China's approach which is quite evident in its coming forward to disengage troops along LAC.
India-China relationship is at nadir since the 2020 Galwan clashes. India’s recent steps in limiting Chinese investments blocking several Chinese firms from various infra projects, limiting Chinese imports etc probably forced China to soften its stand.
India still needs to tread cautiously as it is still huegly dependent on import of telecom/electronic products, automobile parts, synthetic and artificial yarn for textiles, pharma ingredients from China.
However, India needs to strategically plan to cover these items under ‘Atmanirbhar’ to cut its import reliance on China.
Jan Dhan’s success
This is with reference to the article ‘Jan-Dhan @8: A game changer for the unbanked’, the financial inclsuion scheme was certainly a game changer.
That the PMJDY had 46.46 crore beneficiaries with a total balance of ₹1,72,507 crore as on August 2022 is evidence to that. Of these women account for more than half the account holders. It is an undeniable fact that public sector banks have been playing a major role in expanding the base of Jan Dhan Scheme.
As per RBI data private banks and small finance banks remained constant in implementing this. Schemes such as MUDRA loan, Sukanya Samriddhi, women scholarships, Ujwala along with PMJDY further the cause of women's empowerment. Likewise PSBs were instrumental in helping the government in implementing its developmental activities. This puts a question mark over the logic of privatising PSBs.
On one side experts like former Governors such as D Subba Rao and Raghuram Rajan are cautioning the government not to take such hasty step and make a 10-year plan, government seems to be ignoring it.
Frequently we see statements by government officials that private banks perform better than its public peers certainly discourage staff of PSBs who work hard.
This refers to ‘What are the three qualities an HR head looks for in an applicant…?’ (Ask BLOC, September 12).
Generally, good companies lay down the competences required for various position, divided into a given range (degree) along with the definition of each element to help the interviewers make the right choice. It would be desirable to consider the three Rs suggested in the answer.
Some interviewers interpret the definitions subjectively giving more importance to their convictions about their own experience and perception.
This gives rise to interviewers’ errors of judgment of which halo effect, recency effect and perceptual bias are more prominent. So interviewers can be given a short duration training about the process of conducting interview and making fair selection.