The monetary policy statement scheduled to be announced on December 7 assumes greater significance in the wake of demonetisation. Banks are flooded with liquidity due to a surge in the low cost deposits.

Understandably, as a temporary measure, the RBI has resorted to raising, with retrospective effect, the incremental cash reserve ratio to 100 per cent for all net demand and time liabilities since September 16 to suck out excess liquidity.

Though it will take time to understand the real impact of demonetisation, given the present situation in terms of slower GDP growth, a cut in the key policy rate looks a possibility but by what measure is the question. This time of year is considered as a busy season when business and economic activities are high.

Srinivasan Umashankar

Nagpur

Top level emoluments

A mainstream newspaper carried a story captioned about the RBI governor’s emoluments. The Centre and RBI are not secretive about the salary and perks of top officials in government and statutory bodies. The story attracted over 200 online comments, some serious, some sarcastic and others irrelevant.

In fact, the governor and his deputies are drawing ‘pre-revised’ salaries after the Centre revised pay and perks according to the 7th pay commission. This was evident from the notification calling for applications to fill Patel’s position; the salary offered was indicated as ‘pre-revised’. Why this delay in salary revision of top officials in the RBI and PSUs? Looks like the file is gathering dust in North Block.

There are a couple of deeper issues. The governor’s job is not a post-retirement ‘social work’, it is 24x7 requiring professional alertness, and calls for decent pay. A leader who feels he is not ‘treated well’ will not lead his team well.

MG Warrier

Mumbai

It’s anti-people

Demonetisation is anti-people, and its purpose keeps changing daily. Initially, it was said to be directed against black money, then that changed to converting India into a cashless economy. Selling the country to mobile manufacturers and network providers in the name of demonetisation would mark the beginning of the end of Modi rule.

KA Solaman

Alappuzha, Kerala

Good analysis

‘Where are the engineer’s engineers?’ by VD Umashanker (December 2) was an incisive analysis. In the competitive world most job portals look for students who score good marks and grades. As a result, students are also focussed on exams, not practical aspects or applications. It is important to keep abreast of the latest while still keeping in touch with basics.

HP Murali

Bengaluru

Avoid steel

This is with regard to the issues around the development of a steel flyover connecting Bengaluru city to the international airport. Apart from the huge cost involved in this project to be executed by L&T, the cost of damage to environment also has to be taken into consideration. Old avenue trees would have to be chopped down. for The extent of public protest deserves to be taken into consideration while executing such projects. Besides, the GreenTribunal and various courts have stayed the proposal for the moment.

In this context, it would be advisable to revert to using the old HAL airport, which is within reasonable reach and has been in use for a very long time. A via media would be to use the old airport for domestic travel, and the new one for international. A shuttle helicopter service between the two airports, like the ones available abroad, could be organised. HAL could be suitably compensated so that the huge investment in the steel project can be avoided.

VT Somasundaram

Email

Celebrate the soil

December 5 is World Soil Day. Soil is a critical component of the natural system, essential for the wellbeing of all life forms. Without soil we wouldn’t exist. It takes thousands of years to create and good fertile soil is responsible for a robust economy.

TS Karthik

Chennai

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