Regarding ‘Banks’ low-cost CASA deposits have grown with rise in UPI use: RBI’ (August 24). As banks are incurring almost zero cost for the funds lying in the current and savings accounts, they must bestow priority for mobilising funds in these demand deposit segments. The surge in the Unified Payment Interface digital payment system enables banks to secure more floating funds at minimal cost and banks deploy the funds at a higher lending rate, which helps to widen their net interest margins.
Banks being key players in the digital payment cycle must urge and incentivise their customers to use the digital payments system for their financial transactions to enhance their earnings.
When the expanding UPI transactions are formulating a lesser cash transactions economy, the government and other stakeholders must not make any move to levy charges from the users as it will demotivate them from using the UPI mode to facilitate digital payment, besides it will adversely affect the growth of CASA deposits of banks.
VSK Pillai
Changanacherry, Kerala
Financial health of Discoms
Apropos the editorial ‘Discom discipline’ (August 24), the measures like Late Payment Surcharge, Ujjwal Discom Assurance Yojana, bailout packages, etc., will improve the financial health of Discoms only temporarily.
The root cause for financial woes of Discoms is free and subsidised power supply by the State governments to fulfil the poll promises and failure to reimburse the amounts in time to them. Electricity is a commodity that is traded hence its generation and supply need to be carried out on business lines. Free and subsidised power can be given to the needy only.
O Prasada Rao
Hyderabad
Beyond defining freebies
This refers to ‘All parties on one side, everybody wants freebies: SC’ (August 24). As the Supreme Court expert panel is likely to cover all aspects of freebies, it would be premature to comment on the merits and demerits of freebies at this point in time. Still, the concerns expressed by the highest court cannot go unnoticed. The issue involves appropriation of taxpayers’ money for political gains, in the guise of welfare measures.
There’s a similar vice growing in the corporate world which relates to marketing expenses. The huge advertisement and promotion costs are factored in, in the MRPs. Fair enough. But the play with discounts, ‘Take one, get one free’, lotteries linked to sale, etc., confuse customers and mislead genuine buyers.
MG Warrier
Mumbai
Bid to take over NDTV
Big business houses owning and controlling the media is bad news for a democracy because they can control the flow of information.
If the takeover bid is successful, it would mean that the entire mainstream television channels would now be in the hands of the friends of the government and become propaganda tools for the government. The cases against NDTV for alleged violations must be seen in this context. And all this when the channel has opted out of the race of BARC ratings on TRPs.
Anthony Henriques
Mumbai
DA&FW needs to speed up
The Department of Agriculture and Farmers Welfare (DA&FW) should come up with answers for difficult questions on farming as soon as possible, including measures to make Minimum Support Price more effective and transparent.
The DA&FW needs to develop ways to support farming with less money, including organic and natural farming practices, and also making micro irrigation farmer oriented.
Additionally, crop trends should be studied, and it must provide directions to farmers on the crops which have to be changed so as to reflect the changing needs of the nation.
It also needs to develop ways to diversify crops in difficult terrain and dry lands as well.
Vijaykumar HK
Raichur
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