Letters to the editor

RBI has issued guidelines/conditions for new private sector banks. The conditions are very stiff. All news papers and channels have hailed the move. The existing private banks cater to the needs of the upper middle class and above category while public sector banks serve poor Indians. RBI should also stipulate one more condition that these new private sector banks shall maintain a separate banking entity for at least 10 years from the date of business commencement. From the list of old private sector banks, many names—Times Bank, Centurian Bank, Bank of Punjab—are missing. Because of irregularities, Global Trust Bank was merged with a public sector bank to protect depositors' interest.

This shows that private banks do not necessarily mean efficiency. Efficiency in service is different from efficiency in banking operations, particularly advances/loans recovery. Money means problems, whether it is shortage or excess.

Sudhir K Bhave

Mumbai

Budget 2013 wish list

There is a continuing inflationary trend and the rupee is falling. We should raise monetary deductions and exemptions five-fold. At least, it is necessary to raise the income-tax exemption limit to R6 lakh for individuals. With critical medical costs shooting up, it would also be a good idea to raise the reimbursement from R15,000 to R30,000 and without the submission of medical bills.  The exemption limit under service tax must be raised to R1 crore for all assessees to save and mitigate small service tax payers. To widen the tax base and meet budgeted income-tax targets, all politicians must compulsorily file tax

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