Lapses in regulation and Supervision erode Trust.

Happy to observe that the author has been tirelessly and vigorously pursuing and fighting as a watchdog to secure the financial system in general and the banking system in particular in public interest to safeguard the stakeholders heavy stake in them as depositors and otherwise . Failures in banks and frauds in banks unfortunately continue to be a regular feature and the stake holders of the economy bear the brunt and depositors of the banks bear the maximum . The coverage of loss of deposits of Rs 5 lakhs by DICGC is a pittance by any reckoning and this cannot be even treated as a relief and safety standard for banks to maintain themselves financially stable and sound . The need for strong regulation and very effective and meaningful supervision independent of political interference in banks particularly cooperative banks is urgent and paramount and the TRUST in Banks and RBI’s supremacy in Regulation and Supervision needs to be reiterated and well established to make the Financial system very strong and supportive to develop the economy fast as envisaged

Loka Samastha Sukhino Bhavanthu.

(This comment is Published in Money Life in response to the Article on New India Coop Bank Ltd Fraud  Feb 28.2025)  

Why Not Family Businesses form Partnerships with other Businesses

 Dear Sir,

Why not  Family businesses form  partnerships  with other Businesses ?

Apropos your editorial , Fresh, New Species of Animal Spirits,(ET 22nd Feb), the need of the hour is definitely to kickstart the economy with all possible Animal  Spirit not only from  existing Family businesses but also developing new families into businesses through encouraging Private Equities  and Start ups by highly skilled professionals from in and around the world. The potential of the economy is so strong and vast , but unfortunately, the animal spirit required to exploit the resources and encash  them through intensive capital and labour oriented physical production of goods and services by enhancing manufacturing activities apart from providing services to satisfy the global demands of all goods and services  keeping the dream of making the economy an advanced one by 2047 is found missing and elusive. It is time for Indian family businesses to identify areas to partner with other entrepreneurial talents and scattered equities  around the world and exploit  fresh business opportunities and give a boost to the economic growth envisaged and make the dream of an advanced economy by 2047 a reality. Opportunities for such joint ventures are plenty and need to be fully encashed benefiting the entire economy and the nation. 

Let there be prosperity all around the universe to make life comfortable and enjoyable for all.         

T V G Krishnan. 

Bengaluru .

( Letter sent to ET but not published. )

ENHANCE THE STATUS OF GST AS THE MOST ACCEPTABLE TAX.

 .GST collections show economy on the mend (ET 2/3/25).

Instead of developing the GST as a goods and services tax to augment the resources of the Government in an irritating manner, is it not better to enhance the status of GST as the most innovative, wonder, equitable and justifiable tax of the Nation enjoying its acceptance and 100 percent compliance . As the honourable PM commented, make it GOOD and SIMPLE TAX literally. The need to  augment revenues for all round development of the economy and welfare of the masses is understandable by all interested in the rapid progress of the nation and THE PEOPLE SEEM TO BE  mentally and emotionally prepared to cooperate and fully comply with the authorities and their requirements.  Making it complicated and discouraging through high rates  without bringing in any value addition in terms of bringing down the widening inequality, simplifying the very and various types of tax structures etc brings only anti climax to the tax system. Simply aiming at  augmenting revenue through all possible ways including GST has a cascading effect on inflation, cost of production , cost of living , ease of doing business and demotivating all interested in the business , economy , nation, politics  and democracy, both Central and State Governments . Earlier this truth is realised and acted upon sensibly and wisely, the better for the Govt , the people , the economy and the nation . The need is, reducing the number of taxes, augmenting Government's revenue, freeing  the Government from the burden of freebies, making 140 crore people as contributors to nation building by happily participating , cooperating and complying with tax requirements and taking the nation forward through  all round economic progress by optimally utilising all the resources at our command . After all , the need is to have a comfortable, peaceful, safe and  happy life enjoying the blessings of nature and  benefiting from the prudential use of the natural  and human resources. Tax cannot and should not act as a burden but should definitely serve as an agent of dependable source of support to ensure the well being of  all living beings.          

Replace all other taxes by reforming the GST and reduce inequality gradually and systematically. Less the number of taxes, more the acceptance and better compliance .  

 

THE WHOLE NATION IS VERY KEEN TO WATCH THE ECONOMY PROGRESS FAST AND REALISE THE DREAM OF REACHING ADVANCED STATUS BY 2047 AND FOR THIS WHAT IS NEEDED IS SIMPLE , AFFORDABLE , FULLY CONFORMABLE AND HAPPILY ACCEPTABLE TAX STRUCTURE BY ALL SEGMENTS OF THE PEOPLE AND BUSINESSES. GST CAN EMERGE AS A WONDER TAX AND BE THE MOST INNOVATIVE INVENTION OF THE NATION AND THE PEOPLE OF INDIA. 

 

LOKA SAMASTHA SUKHINO BHAVANTHU. 

T V G KRISHNAN

14/2/25.

 

                                     Need serious Introspection.

This refers to your editorial Rate Cut Helps, but growth pangs Linger ( ET dated 9/2/25). Despite giving tax relief to the middle class through the Budget of the GOI, and a rate cut in the Repo rate by 0.25% by the RBI in its policy rate, the public sentiments including market sentiments remain depressed  should be  a matter of serious concern for the policy makers. Unfortunately neither the fiscal policy nor the monetary policy find measures to give the much needed boost to kickstart the economy and provide animal spirits to go in for enhanced savings, massive investment, production , intensive employment etc. The major ills which continue to plague the  economy Viz high food inflation, widening inequality,, reluctance to provide the wage increase as suggested by the economic survey, ever increasing cost of production and cost of living thanks, to high interest rate, corruption, black money, some bottlenecks created by the irrational GST, laxity seen in the ease of doing business due to excessive regulatory requirements, and meaningful governance effectiveness affect the production, demand, pricing,  supply and other logistics involved. Even the very sentiments of the people to lead a peaceful, comfortable, affordable life seem to have  been adversely affected for reasons beyond the finance needing psychological,  infrastructural ,social  and technological change in the day to day life.Added to these, the  uncertainties and risks in Geo political scenario also seem to be depressing. Time to introspect at all levels of Legislation, Execution, Judiciary  and show the highest level of wisdom, knowledge, professionalism ,compassion, empathy and a very pragmatic approach to deal with economic issues keeping the ethical values in tact. What we need is good economics and equally good politics to keep the people motivated and realise the dream of an advanced economy by 2047.     

T.V.Gopalakrishnan

Bengaluru 

( This letter was sent to ET)