This refers to the report “Bringing Housing Finance Under the Banking Structure to Scale: HDFC Chair” (June 7).
In the case of the proposed merger between HDFC and HDFC Bank, the merged entity is expected to have an asset base of over ₹27 trillion. The past few decades have seen the parallel growth of “non-banks” eating away at traditionally bank-owned businesses and the RBI struggles to acquire adequate regulatory and supervisory powers to protect the interests of their customers.
The reference to “pooling resources and reducing costs” in the HDFC Chairman’s statement must also be seen in the context of regulatory and prudential convenience – if all members of the financial sector engaged in banking activities are subject to the same operating parameters.
The swift and successful merger of HDFC and HDFC Bank will pave the way for further consolidation of the Indian banking system.
MG Warrior
Bombay
Checks and Balances
With reference to the editorial “Off key” (June 7), the resulting multitude of transactions loses due to human negligence in the careful execution and realization of high volume transactions, whether in the derivatives markets or actions amounting to systemic failure, poor risk management standards and undermining investor confidence.
In an era of great technological advancements, the establishment of automatic checks and balances at every stage and the predominance of an integrated capability to enhance operational efficiency and safety are of the utmost importance.
The lack of controls over these types of big-finger transactions is very deplorable and requires immediate corrective action to prevent monetary losses and preserve the reputation of trading and brokerage houses in addition to ensuring confidence in the trading mechanism of the market.
Sitaram Popuri
bangalore
Individual investors at risk
Elders are usually terrified of hitting the wrong key in a fit of distraction. This has deterred many people from operating online trading platforms.
A survey would indicate that this is only the most computer-savvy young generation between the ages of 20 and 35; who are active on these platforms.
Brokerages employing the best are not immune to such mistakes. Because the amounts are large, such things are reported. God knows how many retail traders have made the same mistakes and suffered losses for their mistakes.
A voice confirmation of the order would help minimize errors. An extra zero or two could wipe out a lifetime’s savings. And there would be no recourse.
Antoine Henrique
Bombay
Protect the monetary system
This refers to “No proposed replacement of Mahatma Gandhi’s face on banknotes: RBI” (June 7).
It is truly strange and intriguing to gather unverified reports currently circulating in national/social media suggesting that the Ministry of Finance and RBI were “considering” to use the faces of other prominent Indians including Rabindranath Tagore, APJ Abdul Kalam on banknotes of certain denominations. How do such reckless, unverified and irresponsible reports end up in the public domain?
Notice that such an ill-conceived idea, perhaps aimed at “politicizing” the security features of Indian banknotes, also prompted the Reserve Bank of India, vested with relevant powers under Sections 24 and 25 of the Act RBI of 1934, to issue necessary clarification stating that “It may be noted that there is no such proposal in the Reserve Bank.”
Of course, any deliberate dissemination of such “frivolous and misleading” stories in the media must be dealt with severely by identifying and appropriately punishing the true carriers of such “false stories”, as it is tantamount to playing with the “sanctity and the secret “. ” of the Indian monetary system.
SK Gupta
New Delhi
Published on
June 07, 2022
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