This is with reference to ‘What can keep India going in 2018’ by Ashima Goyal (January 1). The country cannot survive on temporary measures like subsidies and freebies; it requires more industrial growth, development of rural areas and creation of jobs there to arrest migration to cities.

We need better healthcare, infrastructure and power supply. We also need bold economic reforms, improved relations with neighbours and a check on brain drain. If corruption is checked and if the natural resources are put to optimum use, we will not require loans to push forward our growth story.

Veena Shenoy

Thane, Maharashtra

Recognise PSB employees

The salary revision of bank employees is due from November 1, 2017, but the progress of wage talks has been sluggish, creating uncertainty. PSB employees have been contributing substantially to the growth of the bottomline of the respective banks, which is evident from the year on year increase in operating profits. The deterioration in net profit is due to large-scale provisions on big ticket advances, for which field level employees are not responsible.

The proposed role of BBB when it was formed has been diluted; it is now a mouth piece of the Government. PSB employees have always been at a disadvantage when it comes to compensation. They must be compensated as per the pay commission.

S Veeraraghavan

Madurai

No need for legislation

The report that nearly 5-10 per cent of the deposits in the banking system have been withdrawn or moved to other assets is a pointer to the potential destabilising impact of the proposed FRDI Bill. The compensation by way of government bonds is unlikely to give comfort to senior citizens who have deposited their life savings in banks and are dependent on regular interest income.

In western countries where there have been many bank failures in recent times perhaps there was a need for a law on bail-in. The relevant G20 and EU prescriptions are understandable in this context. However in India the RBI has successfully handled weak banks through alternative mechanisms. So the pertinent question is whether we really need the proposed legislation at this stage.

Manohar Alembath

Kannur, Kerala

Big boon

This refers to ‘Increased interest rate for seniors’(January 1). The announcement fixing 8 per cent interest on fixed deposits payable monthly to senior citizens is good news.

In these days of nuclear families, old people feel the need to live independently without becoming a burden on their children. The higher interest rate is therefore a boon. If the cap is increased to ₹10 lakh it would be even more beneficial.

HP Murali

Bengaluru

Out of the box

‘Tax corporate revenues rather than income’ by Rajkamal Rao (January 1) is thought-provoking. It is an out of the box idea that India Inc should be taxed on the topline rather than the bottomline.

This will not only make collections go up but also save man hours spent finding tax loopholes. Thanks to GST, it will not be tough to assess the topline of unlisted companies. But it is easier said than done.

Bal Govind

Noida, Uttar Pradesh

Adjust for inflation

While paying capital gains tax, the calculation is made after adjusting for inflation. Similarly, in the case of FDs also, interest subjected to tax should be adjusted for inflation. Deductions should be made for inflation based on CPI.

MP Balaji

Email

Straight-talking won’t work

With reference to ‘Theatrics to politics: Story of a few hits and many misses’ (January 1), only MGR and NTR were successful in politics; the rest faded away. Translating fans into votes, and to manipulate them is not easy. Plainspeaking may not be practical.

RS Raghavan

Bengaluru

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