I would like to highlight my views on government savings certificates. The government wants to cut down the interest rate on savings certificates. Many support the idea on the grounds that the certificates are misused by a segment of institutional investors, corporate houses, big industrial entrepreneurs, business groups, individuals with a lot of black money, and even banks. Is the government machinery so weak that it cannot detect these faults?
We find that many people belonging to low- and middle-income groups, pensioners and senior citizens depend on these certificates. Therefore, the interest rate should not be reduced. Instead, the government should take steps to stop their misuse by limiting how many certificates an individual or a family can buy. This may help low- and middle-income people who are the intended beneficiaries of these certificates.
Jamal Hussain, By e-mail