The Hindu Business Line : Responsible use of e-mail

Story so far: After spurning the umpteenth call from a financial institution offering zero-interest loan, I go for a walk to relish the festive ambience. At a pavement shop, I see how Pakkiam, a lady who runs the shop, borrows at astronomical interest rates, of Rs 10 for every Rs 100 per day, or 3650 per cent per annum. I wonder why people like Pakkiam don't come within the fold of the banking system that is said to be flush with funds.

Episode 149

In the last episode, a few weeks ago, I had wrapped up with a disturbing thought: Of how financial institutions chase executives with offers of personal loans that weren't needed, while leaving out people at the fringes to whom funds at reasonable interest can make all the difference between survival and collapse.

"Dear Swati, one solution that I can think of is to start a liaison office of the Grameen Bank of Bangladesh, whose founder, Professor Muhammad Yunus, has championed the cause of credit availability for the poor," writes Sriram Kannan. He is positive that the Grameen concept can help local banks realise the untapped potential of the poor.

"Another interesting point from your conversation is that the poor cannot and do not want to understand the fine-print of credit lending forms that banks ask them to fill. But since banks cannot produce an oral record of their acceptance, it would be better if the following changes were implemented to help both parties conduct their business smoothly." Here go Sriram's suggestions: One, "bring out a regional language version of the credit loan forms, thereby eliminating the fear of accepting the unknown devil from the minds of the poor." Two, standardise loan forms and procedures in nationalised banks. And three, create awareness among the poor to opt for banks and local moneylenders. "These basic steps can help in making the poor believe that there is a government-backed system in place that is ready to support them. Once the foundation has been laid, more specific schemes can be launched by the banks to suit the needs of their `new customer.'" Hope bankers are tuned in!

"It is unfortunate that even after over three decades of nationalisation and social banking, the benefits have not reached the needy and their position remains more or less the same," laments S. Krithivasan. "This is where the informal lending sector comes into play. The poor are forced into their clutches by the lack of imaginative and purposeful lending by the formal sector. Despite many committees headed by well-informed and well-intentioned persons, not much has changed over the years. Many experiences during the social banking era like DIR scheme (differential interest rate?), group guarantee schemes etc have failed, mainly due to the attitude of the borrowers and high default rate." I thought people like Pakkiam were generally prompt in their repayments.

"In fact, the political system and leading politicians of those days systematically led to the failure of these initiatives. Now, SHGs (self-help groups) have caught the fancy of the nation. I feel they have a better rate and chance of survival as NGOs (non-governmental organisations) are more actively involved and there is less political interference than in the past." Thanks Krithivasan.

"Hi Swati, I am Seema Ghule working in Smile Foundation India," reads the next mail. "Our organisation is working for children's health and education. We have a presence in 13 States." Good to know! "I read your thoughts in Business Line. I would like to meet you in person for a detailed discussion. For more details visit us: www.smilefoundationindia.org." Great, Seema.

"Hello madam, this is Rahul Duraphe," says a short mail. "I want chartered accountant." Means? "My Q is how many years CA will be completed. Thanks madam." Perhaps, Rahul, you want to know how many years it takes to finish CA. About five years, from the first baby steps into CPT or Common Proficiency Test. Only an approximation, this is, please note.

"Swati, the Pakkiam episode may be a fresh experience for you, but not for me, a resident of the Wayanad District, Kerala, where farmers commit suicide almost everyday because of financial problems," writes Ciju D.R. from Sulthan Bathery. Interesting name for a place. Wikipedia tells me that Sulthan Bathery was formerly called Ganapathivattom, and that the present name is "from Tippu Sultan of Mysore who captured the Jain temple here and used it as his battery here in the 18th century." Well, let me resume reading Ciju's letter.

"Experts point out reasons such as low prices for their crops, low productivity, and so on. But one important reason that is sidelined is the presence of these Pakkiams." Oh! "As the banks are not ready to give loans to these farmers, these fellows, known as `blades', enter and give them loans against their properties." Sharp to exploit an opportunity, hence the name `blade', I assume. "Interest rate can be 6 to 10 per cent (per?). The amount depends on the value of the assets surrendered before them. In 9 out of 10 cases the asset (land, house or paddy) goes to the blade." What a tragedy! "With some indigenous farmers' organisations emerging here, the grip of the blades is softening. Yet the poor farmers have no other option for instant money, as the banks are not giving them loans." Thanks Ciju, for drawing our attention to the problem in your town.

On `crippling interests,' K Parameswaran writes from Coimbatore: "The pertinent question in this regard relates to why the small trader is apprehensive about approaching banks. Overbearing bureaucracy, complex procedures and time consuming formalities are the three factors that keep common people away from banks. In contrast, the moneylender is easily approachable; his way of working is simple, and the formalities needed to take a loan are minimal. What huge banks and the government itself has not yet realised is that people — even ordinary ones like a small-time trader — are ready to spend money on quality and ready availability." You are right Parameswaran.

*******

E-mail education

Last week, I was busy working at my desk, when a familiar voice called me, `Swati.' I looked up to find my friend Narendra ACP standing near the table. "Hey, you are in mufti," I asked him, noticing the absence of his authoritative uniform. With a quick nod and a smile, he asked me, "Have time for a coffee?" I needed a break from the papers I was studying, and so we went to the canteen.

"Swati, I need your help," began Narendra. "To track a criminal?" I asked, in half-jest. "No, to prevent people from becoming unwitting criminals," he said sombrely. I was clueless and so looked into his eyes, to read any possible meaning. "I guess you have been reading about the recent e-mail hoaxes that went to some of the top most VIPs in the country. We have laid hands on more such nuisance mails than what has hit the press," said Narendra. "Oh, but how do I come into the picture? I didn't send any hoax mail!" I retorted. "Not you, but... " he paused, leaving me to apprehend if someone from my office had pressed the send button for a wrong missive. "There are a few from a neighbourhood college," informed Narendra. "We didn't go to town about those mails, though we did a thorough inquiry, only to find that the mails were innocuous, and failed in transit, so nobody actually received the threats."

I could visualise what harm would have befallen the young students if only their prank mails had landed in the inboxes of the country's leaders. "Swati," called Narendra, interrupting my nightmares. "I need your help to educate the college students on the potential risks of email." Over the next about thirty minutes, he explained to me what he wanted the students to know, and how it is best that their interface is someone like me rather than an official from the Police Department.

That is how, I found myself sitting among students of the undergraduate class of a nearby college, talking and demonstrating the pluses and minuses of emails. It is not as if they were ignorant of email operation. But, to many of the students, it was a revelation to know that e-mail travels through an unprotected Internet, ever exposed to many dangers in the cyberspace!

While returning home, after the session, I thought it is highly important to educate young computer users on the vulnerabilities of e-mail, so as to ensure responsible deployment of the powerful and fast communication tool. Send in your thoughts by Friday.

Swati_CA@hotmail.com

Blog at: http://Swati-CA.blogspot.com

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