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ness index, the ground reality it is essential to give a push to practices, as well as the cost of
on the plight of investors in micro-finance institutions to medicines.
India is regrettable. Airtel and enhance the flow of credit at The government should now
Vodafone claimed a combined reasonable rates. assess the present facilities by an
humongous loss of 73,000 crore VSK PILLAI expert panel to identify factors
due to AGR and high spectrum that require attention, apart
costs. Foreign companies are Batting on RBI’s pitch from taking public opinion on
in the verge of leaving India is not a child’s play the problems faced.
facing continuous, huge loss and With reference to the report “RBI’s ex-chief TR ANANDAN
explains what Modi I achieved the best”
several other constraints. by Tehelka Bureau (October 15)
Though India remains firm It was intriguing to learn that the Waiver of loans is no
on its ‘Make in India’ campaign, Finance Ministry now wants the solution to farm distress
it is all talk. An effort of both the Reserve Bank of India to set up With reference to the online report “Sharad
Pawar meets PM Modi to discuss farmers crisis
State and Central governments a fund to buy out stressed assets in Maharashtra” (November 20)
to bring in an investor-friendly of the country’s top 25 shadow Waiver of farm loans is no
climate will lure investors. lenders. The central bank has solution to the farm distress in
NR NAGARAJAN also reportedly been asked to Maharashtra. The new govern-
consider a one-time waiver to ment should work for rural
Small borrowers should banks from classifying some development by providing the
be prime focus of MFIs real estate loans as bad loans. It’s farmers with modern tech-
With reference to the report “Nirmala a different matter that the RBI niques of production, counsel-
Sitharaman reviews performance of banks
with top management” by Tehelka Web Desk has quite prudently opposed the ling facilities to prevent farmers’
(September 20) idea of opening its balance sheet suicide, improved rural infra-
While the self-regulating Code to buy toxic assets of the non- structure, alternative income
for Responsible Lending (CRL) banking finance companies. options etc. No economy ben-
covers the entire micro-credit However, the said opposi- efits when it is run on a charita-
industry, the move to set up a tion may largely remain only on ble concept.
steering committee to oversee paper, as the incumbent chief We need more banks which
the smooth administration of Shaktikanta Das, happens to will lend to poor farmers, illiter-
the code is imperative. be an ex-bureaucrat from the ate people and small entre-
At a time when multiple lend- Finance Ministry and is likely preneurs who mainly depend
ers like banks, NBFC-MFIs, small to ‘fall in line’. It may be recalled on money lenders for their
finance banks, etc., are engaged that the government had earlier financial needs. Hence politi-
in extending micro-credit to too pressurised the RBI over the cal influence should not effect
borrowers, the chances of both highly contentious issue involv- banking decisions.
over-borrowing and excessive ing the transfer of its so-called VEENA SHENOY
supply of credit are possible. surplus reserves.
In terms of the code, allowing KUMAR GUPT Comparison with UPA
only three lenders to fund a government isn’t useful
single borrower and capping Mohalla clinics needed The Finance Minister’s compari-
the loan at 1 lakh per borrower in urban areas too son of figures of consumption,
is stipulated to prevent the poor With reference to the online report “Deeply inflation, etc with those of the
borrowers from over-leveraging impressed to see Delhi’s Mohalla Clinic project, UPA government is not useful.
and also to ensure the quality of says Former UN Chief Ban Ki-moon” (September The NDA should judge its perfor-
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the loan asset. Primary healthcare centres are mance in the context of making
While the micro-credit greatly needed, especially in India a $5-trillion economy.
beneficiaries hail from the poor rural areas. The fact that mohalla It should also reconsider its
strata of the society and utilise clinics are functioning well is a objective of keeping the fiscal
the loan for self-employment, compliment to the AAP govern- deficit at 3.3 per cent, as crossing
many times they borrow from ment. But in urban areas too, it could boost investment. If the
informal moneylenders to pay there is a need for upgrading Ministry reviews its key policy
back their outstanding debts to the medical care of the people. decisions taken during the first
the financial institutions. The Availability of medical care half of the year, it may find that
moneylenders still hold a key facilities is an issue. Then comes some the bottlenecks were of its
position, lending at exorbitant the high cost of treatment, at own making.
rates of interest and, therefore, both government and private YG CHOUKSEY

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