Financial messaging
This refers to India exploring Russia’s alternative to SWIFT. While these developments might seem advantageous for Russia’s trade expansion and India’s rupee internationalisation, the global mood must be considered. Without a resolution to the Russia-Ukraine war from international bodies like the UN, the US and the EU, global trade could suffer greatly.
Following sanctions, China and Russia have implemented their own systems, CIPS and SPFS, to facilitate bilateral trade. Russia’s proposal for another financial messaging system (FMS) could further complicate global trade, presenting operational challenges like interfacing with banks’ existing systems for payments and compliance checks, including sanctions and AML. Additionally, India might face a dilemma over whether to comply with Western sanctions, potentially putting it in a tight spot.
Srinivasan Velamur
Chennai
Mop-up of ₹2,000 notes
According to a recent RBI report, 97.96 per cent of ₹2000 bank notes have returned to the banking system and only ₹7,261 crore worth of these withdrawn notes continue to be with public. Unless the RBI mandates some cut-off date for acceptance (at its designated 19 Issue Offices), the withdrawal of the remaining ₹7,261 crore notes may perhaps take several more months. The RBI must act urgently to close this ₹2,000-note chapter once and for all.
Kumar Gupt
Panchkula, Haryana
Curbing cyber fraud
This refers to ‘Legal liability for fraud in digital payments’ (September 3). Cyber frauds are definitely posing a serious challenge to the government because on the one side it wants to keep pushing usage of UPI and digital payments and, on the other, the alarming frequency of frauds are making people wary of using digital modes. Though awareness is being created through multiple media channels, that does not seem to be enough. To curb cyber fraud, the government needs to involve both domestic and international cyber experts and make the payments system as foolproof as possible.
Bal Govind
Noida
Harnessing wind energy
The article ‘Climate change, global heating can hamper India’s wind resources, renewable energy’ (September 3) gives a clear picture of the challenges wind energy faces with changing wind patterns. To address this, new technologies to make wind turbines more efficient must be looked at. AI can help by adjusting blade angles and speeds in real time to capture the most energy. Using adaptive blade designs and lighter materials can also improve how turbines perform, while superconducting generators help cut down on energy loss. These steps can boost efficiency, reduce wear, and maximise energy output, especially in varying wind conditions.
Nandagopal B
Chennai