Boosting credit cards

This is with reference to ‘The (r)evolving dynamics of credit cards (February 27). Credit cards will certainly be the preferred instrument by the lower and middle class society for many advantages unlike the BNPL products where you certainly have to make a purchase to repay in long tenure EMIs.

The interest rate is certainly low in BNPL schemes and the tenure too but then the lower middle class credit card users also need cash for emergency situation. Therefore the marketing of credit cards in fact should be aggressive with enhanced cash limits and increased total limits subject to the user’s credit history.

Banks should also not charge compound interest for credit cards. With lower interest rates and enhanced limits, credit cards only will become lucrative for the middle classes which form a huge market in the country.

Katuru Durga Prasad Rao


Silver lining

This refers to the interview with Ashok Lahiri, author of India in Search of Glory (February 27). Lahiri’s attitude is positive which is refreshing.

To the question “Many of the UPA’s proposals have been rechristened under the current NDA regime...”, Lahiri’s insightful response was “to abandon a good policy just because it was proposed by a previous government under a different political party would be preposterous”. This is a welcome caution which should be internalised by all political parties.

MG Warrier


R&D worries

This refers to the article ‘Fixing India’s R&D inadequacy’ (Februrary 27), most Indian businesses are loathe to put money where the returns are uncertain. It would take much time and money for an innovation to come up through R&D which would mean a drain on the profitability of the venture for years.

Most talented researchers would prefer to work in the West, where they are assured of a better lifestyle and a package.

Plus the freedom to pursue their project without constant interference. Cutting edge tech tools are available abroad for best results; unlike in India.

If India truly wants to be a Vishwaguru, the diffidence towards spending over R&D should end. The returns cannot be immediate and those pursuing pure research must be encouraged.

Anthony Henriques


SEBI’s imperatives

This refers to the Editorial “Independence of SEBI” (February 27). SEBI being one of the signatories to the MMoU of IOSCO (International Organisation of Securities Commission), it is expected that the market regulator adheres to the core principles of the charter which includes looking into “misrepresentation of material information and other fraudulent or manipulative practices relating to securities and derivatives”.

This should be seen in the context of the $130 billion loss suffered by the Adani group post publication of Hindenburg research report.

Though the RBI governors and SEBI chairmen are political appointments with government nominees inducted in the board, these institutions, being custodians of public money are expected to be vigilant and have to act in time. Investors are intrigued on continuous silence of SEBI on this issue.

Srinivasan Velamur