The 25 basis point reduction in repo rate by the RBI, from 6.5 per cent to 6.25 per cent, is welcome as it will give a boost to all sectors of the economy. The new RBI Governor appears to be working towards easing the tensions between the government and the RBI over various issues. At present, what is needed is a real boost to the economy which would, in turn, benefit the common man. Hence, the RBI’s decision to cut the policy rate and have smooth relations with the government is a positive development.

Coimbatore

Inexplicable are the decisions of the RBI. Last week, it decided to free Bank of India (BoI), Oriental Bank of Commerce (OBC) and Bank of Maharashtra (BoM) from the prompt corrective action (PCA) framework. BoI and BoM incurred huge losses during the third quarter on account of making substantial provisions to bring down the net NPAs to less than 6 per cent, the trigger point on asset quality. Net NPA of OBC is at 7.15 per cent. Without significant improvements in the trigger parameters and no signs of abatement in stressed assets, the decision of the RBI was baffling.

Now, the decision to cut the repo rate by 25 bps, despite the spike in government borrowings and the interim Budget sops and incentives, which are bound to raise inflation, confirm the apprehension that the new Governor is more than compliant. The contentious issue of determining the quantum of dividend to be paid by the RBI may no longer evince interest, as interim dividend is going to be paid any way.

Coimbatore

This refers to the editorial ‘Hawk turns dove’ (February 8). The RBI’s decision to cut the repo rate by 25 basis points and change the stance from ‘calibrated tightening’ to ‘neutral’ is supportive of the economic growth envisaged in Budget 2019-20. Raising the collateral free agriculture loan from ₹1 lakh to ₹1.6 lakh will help small farmers raise bank credit at an affordable rate and enable them to distance themselves from indigenous bankers, particularly money-lenders who charge exorbitant rates. The relaxations proposed for external commercial borrowing will enable corporates to raise funds at a reasonable rate.

Kottayam

This refers to ‘Protect the credibility of macro data’ (February 8). Indeed there is a sanctity around CSO as its data is considered most reliable. So the government’s disapproval of job data is baffling to say the least. More so, it raises more questions than it answers when we know that the CMIE and the EPFO portray a completely different picture on the employment situation.

This can only mean that the government does not want to show the true and scary reality to the citizens of the country. Yes, due to significant number of jobs in the unorganised sector, it is difficult to ascertain the exact employment numbers in the country.

Nevertheless, whatever be the tools and data, they should be made available to the public, irrespective of whether they show the government in positive or negative light. Tinkering with GDP data is also something which is undesirable.

Noida

This refers to ‘Healthy diet matters’ (February 8). A healthy workforce is a precondition for growth and hence we should encourage healthy food habits among our youngsters. This can be done by educating school children about the harmful effects of eating junk food. Teachers can play a pivotal role in this. Work pressure, living away from families and time shortage are forcing our youngsters to go for these fast foods which are detrimental to their health. One way of weaning people away from junk food, especially of the western kind like noodles, pizzas and burgers, is to popularise traditional and healthy Indian food items/delicacies. The government should give wholehearted support to small businesses and household eateries that deal with such foods.

Thane