Boosting MFIs

With reference to ‘Robust microfinance, key to financial inclusion’ (December 24), while microfinance has emerged as an important sector playing a stellar role in catering to the needs of low-income, underserved, unbanked and marginalised sections of society, the scope for expanding the role of MFIs in financial inclusion, especially in rural India is enormous.

However, the sector has been facing several challenges, including borrower over-leveraging, where groups borrow from multiple MFIs resulting in repayment defaults.

On the other hand, some MFIs have been charging very high interest rates, which again leads to higher rate of delinquencies, as the repayment capacity of the target groups is limited.

MFIs need to adopt the latest technologies such as AI and ML to streamline and modernise their functioning and operations, leverage the technology to ensure that over-leveraging by borrowers is avoided and groups do not borrow beyond their repayment capacity.

MFIN should play an enabling role here through its guidance and networking.

Kosaraju Chandramouli

Hyderabad

Railways’ focus areas

This refers to ‘Railways chugs towards safety’ (December 24). Subsequent to the unfortunate Balasore incident, the pace of implementation of Kavach safety system has picked up. It is appreciable that the entire railway network is to be brought under Kavach by 2030. Equal stress needs to be given for completion of Gati Shakti MultiModal Cargo Terminals to achieve the freight loading target by 2030. Also, the on the East-West corridor need to be completed for seamless freight movement.

RV Baskaran

Chennai

Streamlining GST

With reference to “GST convulsions” (December 24), the latest meeting of the commission again failed in bringing out the rate rationalisation structure, inclusion of fuel taxation and the much-awaited exemptions in respect of insurance policies, except some meagre relief on vouchers, supply of warehoused goods in SEZs, rented properties under composite scheme and penalties on bank borrowers, to the utter dismay and disappointment of honest taxpayers. The initial concept of GST as a simple tax no longer holds true.

Sitaram Popuri

Bengaluru

The genius of Ambedkar

This refers to ‘Forgotten, Ambedkar the economist’ (December 24). BR Ambedkar was an outlier among the many icons that the freedom struggle produced. He was endowed with versatile talent in politics, economics and social sciences, but neither the Congress leadership nor the Hindu organisations liked him — he had serious differences with Mahatma Gandhi and many Hindu leaders. Moreover, all political parties had their own idols some of whom like Jawaharlal Nehru were wary of his ideas and/or deep knowledge.

YG Chouksey

Pune