This refers to Debashis Basu's column "A Rs 75,000-crore loan mela" (Irrational Choice, August 4). At first, the scheme to link all the people with banking facilities seems attractive. But issuing a Rs 5,000-overdraft to about 150 million people will be risky. The possibility of people spending this amount for unproductive purposes cannot be denied. Secondly, where will all this money come from and what is the possibility of fair distribution of money in an inefficient and corruption-prone public sector? There is a need to rethink this financial inclusion plan. This money should be diverted to plans that can fix the severe problem of poverty in India. Although, in this era of globalisation and information technology, it is important to initiate such schemes, but in India there is a dire need to devote some time and resources to the poor.
Suman Gill Hisar
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number
