LETTERS TO EDITOR
Payments bank model
At a time when UPI is playing a crucial role in the payments and settlement ecosystem, payment banks are becoming ineffective and nonviable and are posing a threat to the entire financial system. Given the higher risks associated with those banks, particularly concerning profitability and matching of assets and liabilities, the returns to the stakeholders, especially in the case of depositors, are under threat. To expand the business volume and returns they are being urged to carry out divergent banking activities that are violative of the regulations of the banking regulator.
The RBI must review its oversight
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mechanisms and permit payment banks to do lending activities too, subject to caps. The RBI must look for corrective actions to ensure the viability of these banks.
Changanacherry, Kerala
Indigenous app store
The editorial ‘Big Tech blues’ (March 6) on monopolistic muscleflexing by Google Playstore emphasises on longterm solution by developing an indigenous app store so that our startups and apps may reach the people seamlessly. Legal recourse may be either counterproductive or a shortterm measure. India has abundant talent and facilities to
develop a parallel online digital store. Besides facilitating our startups and apps, it will help generate huge revenue and employment. The digital ecosystem has some inherent challenges which will have to be competitively handled.
Delhi
Paytm’s folly
Paytm burst into prominence with the synchronised flowering of digital revolution and exponential rise of the telecom sector, especially smartphones. Its current misfortunes, amidst an economy in good clip, is a wakeup call for the entire sunrise sector. Surprising that
viable startups as these would be so mesmerised by the meteoric success of their seed idea to discard basic financial prudence.
Caught up in the hubris of uncommon acceleration, Paytm was tempted to enter quasibanking without a stable architecture to sustain regulatory essentials. It had let enthusiasm prevail over business basics, in a bid to stand too tall on narrow foundations.
Navi Mumbai
Semiconductor push
With reference to ‘Scripting semicon success’ (March 6), India’s journey on this front has just begun.
Countries such as Taiwan, South Korea, China and the US are far ahead and are already manufacturing most advanced semiconductors. However, India has made rapid strides towards fast tracking the setting up of semiconductors units. But the ecosystem required for becoming a semiconductor manufacturing hub is yet to develop. Educational institutions and private sector have to contribute their best, in addition to the government’s policy efforts — just as with the Y2K initiative and subsequent IT revolution — for scripting success in semiconductors too.
Hyderabad