RBI Issues Circular On Levying Unfair Interest Charges On Customers

As the grip of the pandemic prolongs in the economy, it is time that the Centre prepares for a ‘universal basic income support’ to all families at the bottom of the pyramid. The spectre of a third wave even before the second one has subsided raises apprehensions that the number of families at the bottom of the pyramid will swell considerably and they would find it hard to make a living.

The income support should be universal below a designated income level and should be paid without any filters. If the people at the bottom of the pyramid ever needed a universal income support, it is now.

Like the assistance of Rs 500 paid to underprivileged families last year, the payment should ideally be targeted at the women folk of the family. This will also advance the cause of gender equity apart from social justice.

The Centre is already paying income assistance to specific target groups like farmers, senior citizens, widows and physically challenged. Last year it paid income support for three months to the women of BPL families and is now paying free foodgrains. All these can be merged with the new scheme. Sections of public expenditure can be reoriented and a few subsidies such as free power till a prescribed level of consumption or free LPG cylinders can be merged with a universal income support. It will also substantially reduce the stress on the public exchequer.

A universal basic income can also have beneficial spin-offs. If would quickly boost consumer spending, especially in the countryside. A big sector of India Inc, especially those engaged in the manufacture of fast-moving consumer goods and food items would benefit from a sudden surge in expenditure from a huge section of the population resulting in new investments, job opportunities and tax buoyancy both at the state and central level.