The new ‘current. account page’ is a worth while addition. Highlighting the challenges, strategies, and views relating to present-day banking will be valuable to the banking sector, customers, investors, academics and readers.
Banks are drivers of growth and have a major role in financial intermediation and providing funds for economic activities. To overcome the challenges, it is vital to spread financial literacy, data, and information. Given the present needs, let the new page serve the purpose.
Demonetisation of pain
This refers to the news report that ‘SC upholds the Centre’s 2016 decision on demonetization’.
The Supreme Court’s majority verdict may have found no flaws in the government’s process in demonetising ₹500 and ₹1000 currency notes, but its disastrous consequences on the lives and livelihoods of people, especially those living on the fringes and MSMEs, were well-documented.
Rather than accomplishing its objectives of curbing black money and terror financing, demonetisation brought the economy to a standstill. Justice BV Nagarathna’s dissenting verdict, that the exercise was unlawful and vitiated, echoes the opinion of commoners.
This refers to the Editorial ‘Rays of hope amidst uncertainty in the New Year’, has us feeling edgy, with too much is hanging in the balance. The Ukraine-Russia war must end with both sides finding a way to negotiate peace.
The world’s health and wealth are also closely tied to China’s Covid management. India has so far done a creditable job of riding these geoeconomic headwinds, from managing inflation to re-routing its energy supplies. But the work of returning to its potential growth path will become harder if global recession builds up.
Furthermore, past three years are proof that the unexpected happens. And if the year turns out to be unexpectedly pleasant instead, that will be a welcome breath.
N Sadhasiva Reddy
Apropos Editorial ‘Cautious optimism’ (January 3), the year 2022 had witnessed tremendous action on the economy and on the national front.
The year gone by witnessed business and trade activities picking up. The Ukraine-Russia war disrupted various markets posing several challenges to the economy which was on its revival path. The agreement with Russia on import of oil at deep discount rate helped India to tide over domestic oil demands.
The inflationary trend in the US, due to which interest rates were raised, severely impacted the rupee, with its value plummeting in recent months and draining forex reserves. The strong political stability at the Center helped India to overcome the threats created by China along the border.
However, optimistically, the year ended with India obtaining the prestigious Presidency of the G20, which will add luster to India’s image across the world.