Truckers’ strike
Apropos ‘Truckers call off strike after govt assures them on contentious law’ (January 3), countrywide protests by the truck drivers against increase in quantum of punishment in ‘hit-and-run’ cases in the newly-enacted criminal code, was beginning to bite with fuel supplies getting severely hit.
The government’s swift action by reaching out to the transporters needs to be commended.
While the situation was defused, things could have got out of hand had the agitation continued. Since our ‘Rights and Responsibilities’ invariably go hand in hand, it was hardly the fault of common people who were forced to stand in long queues at refueling stations, espcially during north Indian winters.
Kumar Gupt
Panchkula (Haryana)
Risk vigil
This refers to the ‘Challenges in deciphering bank balance sheet risks’ (January 3). Given the complex nature of the expanding balance sheet, banks need to have robust risk evaluation and mitigation systems. Though there are regulations, it is difficult to foresee the risks because of the dynamism prevailing across the economies.
Therefore banks must frame their liability products after meticulously evaluating the security of the technology as well as the sources of funds. Similarly, loan products being used to deploy liabilities need to be income-generative always to cover the redemption of the liabilities, including all costs involved. The risks involved are many, and as such evaluation of the related risks should be comprehensive.
Also, banks need to ensure the continuity of strong risk assessment systems to optimise profitability and curb losses.
VSK Pillai
Changanacherry
Rationalise interest rates
This refers to the report ‘Banks raise FD rates to support credit growth, protect NIMs’ (January 3). Post-deregulation, lending and deposit rates across banks and financial institutions have not been following any transparent pattern. As in other areas, here also self-regulation is synonymous with indiscipline.
The prevailing practice supports high margins and high lending rates leading impacting recovery. There’s urgent need for the government and institutions including banks to be in sync in lending and borrowing rates.
Meanwhile, differential treatment for senior citizens’ deposits and pension funds to insulate regular income from the vagaries of market forces also deserve priority.
MG Warrier
Mumbai
Rural realities
Your editorial, ‘Dry realities’ (3-1-24) presents facts to ponder over. The farm output is hit by various factors like El nino, erratic climate changes, farmers losing interest in farming due to government apathy.
But what is all the more disturbing is the attitude of the ruling dispensation towards lifeline schemes like MGNREGA. The budgetary allocation is being gradually reduced and now Aadhaar seeding is being made compulsory for the beneficiaries, which is sure to deprive revenue for those depending on this scheme with its due negative impact on rural demand.
AG Rajmohan
Anantapur