This is with reference to ‘Of recapitalisation and resolution of NPAs’ by Charan Singh (December 14). Although the package will improve PSBs’ survival possibilities, the fact is these are mostly used to make up NPAs instead of increasing credit disbursal. It is incorrect to say the only reasons for NPAs is banks’ failure to monitor accounts properly and indiscreet lending or diversion of funds. Other factors are political pressure and greed.

TSN Rao

Bheemavaram, Andhra Pradesh

Coal trouble

This is with reference to the edit, ‘Coal comfort’ (December 14). That the auction of 34 coal blocks is expected to yield ₹2 .85 lakh crore only shows the high premium arising from long unmet demand even as there’s been a slump in global prices of coal in the last few years. An alert government and its finance and coal ministries would not have mishandled assay of the mines supposedly to increase competition. They needlessly attracted adverse audit observation.

Moreover, user industries have always been forced to pay a disproportionate premium for getting access to an asset made scarce by the monopoly rights enjoyed by Coal India in the open market. Sadly, more than a year after these blocks were auctioned, mining could start in only about 10 blocks, the rest being caught in legal or procedural tangles. More than misdemeanours, the bureaucracy’s slackness does great harm.

R Narayanan

Navi Mumbai

Don’t expose kids

The ‘advisory’ to TV channels to restrict broadcasting condom ads attracted strong criticism from reader G David Milton. Why must we expose kids when we lack proper sex education in schools, and parents don’t know how to do it either? The advertising code of the Cable Television Network Rules of 1994 seeks to bar any advertisement “which endangers the safety of children or create in them any interest in unhealthy practices or shows them begging or in an undignified or indecent manner”. The code also does not allow “indecent, vulgar, suggestive, repulsive or offensive themes or treatment” of advertisements. Condoms are not just for steamy sex but also to protect from unwanted pregnancy and the spreading of disease.

Jayatheertha SA

Hyderabad

Bring home Lakshmi

India should recognise this cryptocurrency as it is gaining popularity in many countries. No doubt, there are hacking problems and investors must be cautious. Many countries recognise this cyptocurrency and some allow investing it in various infrastructure-associated industries.

The Micronesian nation, Kiribati, permits citizenship via bitcoin investment. The RBI itself had wanted to launch Lakshmi’, a fiat cryptocurrency. This would have become more popular than bitcoin in India as it is a fiat cryptocurrency, a plus point for investment and to trade in. With adequate safeguards in place, the time’s right to launch ‘Lakshmi’.

A Sathyanarayana

New Delhi

Public worry

This is with reference to assurances from the finance ministry and stakeholders on the protection of deposits after the FRDI Bill is implemented. In the present scenario the main protection available to depositors is by virtue of PSBs being under the control of government as a major stakeholder. Even if a private sector bank fails as Global Trust Bank did, the interest of depositors was protected; subsequent to take over by OBC, depositors got back their money over and above the insured amount even though customers were treated as ‘unsecured creditors’ for the uncovered portion.

The argument that the status of customers had remained as ‘unsecured creditors’ then and would continue to remain so even after implementation of the ‘bail-in’ clause and hence there is no change in the status of depositors is not the issue. What the public is concerned about is whether the protection extended by the Government in terms of fully compensating depositors (over and above the insured amount) of a failed bank would be available even after the FRDI Bill is passed.

Srinivasan Velamur

Chennai