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<b>Letters:</b> Ponzi schemes out

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Business Standard New Delhi
Last Updated : May 14 2014 | 9:05 PM IST
This refers to the editorial "Probing Saradha" (May 13). If we have to plug the regulatory gaps in deposit schemes, we may consider vesting all residual responsibilities with the Reserve Bank of India (RBI) that has the capacity to punish the wrongdoers. RBI can also have district-level sub offices where anybody can go to seek clarifications about such schemes. Current district-level bank offices can be easily converted in to such offices. The suggestion that we may consider new instruments for investment does not hold good either. How does one explain the fascination of even urban depositors for such schemes when post offices and bank branches are available almost next door? For sensible depositors, current fixed deposit schemes by banks, which are regulated by RBI, are adequate. The machination of Ponzi schemes can only be thwarted by a concerted action plan.
Y P Issar, Karnal

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First Published: May 14 2014 | 9:05 PM IST

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