Interest rate worries

This is with reference to ‘RBI calls for affordable credit from MFIs, slams high-cost lending’ (October 25).

The observation coming as it does from an Executive Director, RBI amounts to shedding crocodile tears.

The MFIs are extended credit by Public Sector Banks at a reasonable rate of interest and MFI load exorbitant spread for onward lending to small borrowers.

The interest charged by PSBs on a vehicle loan for self-employed under Mudra scheme is much higher than a vehicle loan extended to general public under retail lending. Cant’t the regulator do anything about such an exploitation of the poor?

Manohar Alembath

Kannur (Kerala)

Need for clarity

The recent Supreme Court decision allowing States to tax industrial alcohol presents serious challenges.

How will States ensure that this newfound wealth is efficiently used for public welfare? Will there be a clear system to monitor the impact of this tariff on industries that rely on industrial alcohol?

On top of that, how can states strike a balance between income creation and the potential for consumer price raises? Clarity on these matters is critical to the effective execution of this ruling.

Anshu Bharti

Begusarai (Bihar)

ESG focus

With reference to “PEs must embrace ESG” (October 25), the growing concerns in the thrust areas of waste and water management, deforestation, alternative energy, transportation, employment generation etc., ESG push is vital.

Private equity funds and AIFs being a major resourceful entity, play a predominant role by adopting ESG policies as a part of the investment strategy of their funds towards extending substantial resource support not only in the form of funding, but also through proper due diligence of the investee company about its capability to ensure end use of the funds towards achieving and compliance of substantial development goals of environmental charter.

For effective ESG implementation, AIFs and venture capital funds to integrate their investment process to adopt ESG policies to support financial inclusion, privacy and data security besides generating jobs in semi-urban and rural sectors.

Sitaram Popuri

Bengaluru