Opinion - Letters to the Editor   

Encourage business

Sir, — The new RBI Governor, Y.V. Reddy, is slated to announce the new Credit Policy soon. This should move beyond mere cosmetic changes in the banking sector.

Businessmen, especially traders, are hounded these days to take car loans, cheap credit cards and housing loans. But banks are reluctant to extend working capital facilities, overdrafts or even long-term capital loans. Or they provide the loan at very high interest rates with stringent conditions. This mindset has to change with the guidance of the RBI.

In fact, the RBI should encourage local business-to-business letter of credit transactions as a safe and transparent instrument.

Sushil Mehra,
Bangalore

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