Customers ignored Needless debate

In the article, “Digital banking needs pro-customer default options” (April 3), Debashis Basu is right in saying that “policymakers all over the world usually think of customers last”.

Customers are being exploited by financial institutions to maximise returns. There is no concern for the rights of customers. The codes are only on paper. Digitalisation of the financial sector has been extensively used for introducing advanced technological products and services. The price that depositors and investors are getting for their money is shrinking, however, the cost of the services rendered to them by the financial sector is rising. With limited avenues for bargaining, customers have to cope with the increase in cost. The financial sector has turned into a seller’s market.

Players in the financial markets are selling their products without ensuring transparency in transactions. The common man, who has limited awareness of products and services, is falling prey and suffering losses. Lack of sufficient internet facilities, inadequate digital literacy are contributing to the losses of customers. Instead of making arrangements to educate customers about the dos and don’ts, they are being urged to become part of the digitalisation.

Although customers are the backbone of the financial sector they are being neglected. Their grievances are not redressed in time, more so if they are illiterate. Extensive digitalisation programmes without proper customer education and ensuring affordable cost of financial products and services is of no use; it defeats the purpose. Customers should not be driven to losses; their rights need to be honoured. No business can flourish without their active support.

V S K Pillai Changanacherry Alongside Ayan Pramanik’s report, “Infosys defends pay hike for COO Pravin Rao” (April 4), I read an unrelated report on the pay rise granted to the Reserve Bank of India governor and his deputies effective January 1, 2016. Transparency in norms and openness in implementation of decisions taken in good faith need to become part of governance in government, public sector and companies.

According to the official version, the first one was a decision taken by the Infosys Board to revise the compensation package of Rao (pictured) consistent with the company’s “philosophy of aligning the interests of its leadership team to long-term shareholder interests”.

The government’s decision to revise the basic salaries of RBI governor and his deputies from ~90,000 and ~80,000 respectively, fixed more than a decade back, to ~2.5 lakh and ~2.25 lakh, merging a major portion of dearness allowance, followed the pattern recommended by the Seventh Pay Commission for comparable positions in government. Neither should have attracted adverse debates.

Eminent tycoons such as N R Narayana Murthy and Ratan Tata should focus on broader issues of national interest rather let the institutions they built hang on to their apron strings for support; they should also not peer into what’s happening in boardrooms. They should be talking about policies affecting production and marketing, economic growth and macro-level changes necessary in approach to prices, wages and income to improve gross domestic product growth and ensure distributive justice.

They need to guide government in improving social security systems and ensuring faster eradication of poverty.

M G Warrier Mumbai