This refers to the report ‘Govt to bar import of 780 defence sub-systems, components’, (August 29). The Centre has been pushing for the indigenisation of the Indian defence sector rapidly as it is of vital importance for both strategic and economic reasons.

The presence of robust security architecture is primary for India’s geopolitical ambitions. Also the presence of hostile neighbours like China and Pakistan makes it essential for India to boost its self-defence and preparedness.

Meanwhile, advancement in the defence technology sector will automatically boost other industries and give a boost to the economy.

India’s heavy reiance on defence imports is a huge drain on its resources. Defence manufacturing will need the support of numerous other industries which generate employment opportunities.

N Sadhasiva Reddy

Bengaluru

US Fed moves

Fed chief Jerome Powell's intent to put inflationary concerns over growth sounds ominous and is a deja vu to the era of early 1980s of Paul Volcker, when inflation was running in double digits.

High energy prices was the trigger then, as it is today. He had then backed his motto 'no gain without pain " by a massive interest rate hike that plunged the economy into recession in 1981. But the Fed of 2022 feels that despite the decline in asset markets in 2022, indices are stable enough to bear the rate hikes.

Global finance is increasingly pushed by investors to its highest use and hence it is the growth that has greater ability to drive both the direction and density of money flow, than monetary policy prescriptions. Growth precedes other concerns.

R Narayanan

Navi Mumbai

Financial inclusion, a boon

Apropos 'PMJDY@8: Average deposits up 71%‘ (August 29), financial inclusion was already implemented in the banking industry since 2008 wherein village-wise zero balance accounts were opened in banks after surveys were conducted in each village regarding assets, income, occupation, etc.

Banks having identified the households’ financial requirements gave loans for their needs. Loans were given for cultivation of crops, animal rearing, purchase of agricultural machinery, horticulture, setting of retail trade businesses, education loans etc, which has transformed the living conditions of the rural poor.

Currently insurance is also being provided under above scheme. Financial inclusion is certainly a boon to the underprivileged and unbanked people.

Katuru Durga Prasad Rao

Hyderabad

For a robust UPI 

This refers to the article ‘Why UPI should remain a freebie’ (August 29), the payment system in India has been undergoing several changes in the recent past. It all started from Structured Financial Messaging System (SFMS) way back in 2001 by the RBI with amount based variance such as NEFT and RTGS.

SFMS covered both financial as well as non financial transactions like issue of domestic bank guarantee etc.

The system functions through unique Indian Financial System Codes (IFSC) allotted for each bank branch. Initially the system had time limits for inbound and outbound transactions and now it is made 24x7.

With technology, new products such as Internet Banking, Mobile Banking, SMS banking etc further boosted the payment system facilitating the bank customers to choose the channels. Several other private players such Google Pay, Paytm do occupy considerable share in the payment system field for making small size retail payments.

In this backdrop, reducing physical currencies in circulation is a welcome step by which the government can save thousands of crores by way of designing, printing, transporting and handling the currencies.

However, the Centre needs to ensure the technical glitches faced by retail customers while making small value payments through UPI done at shops, kirana are addressed and the system is made robust.

RV Baskaran

Chennai

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