Tweaking gold loans

With reference to ‘Gold loans could shine with tokenisation’ (November 22), it can enhance transparency within the lending industry. By leveraging blockchain technology, the RBI can also establish a tamper-proof and auditable ledger of tokenised assets.

Also, tokenisation enables more accurate mark-to-market valuations of the gold collateral.

But is seems to be more benfitial lenders and regulators. The ebenifts for borrowers are not so clear.

Indian households usually hold gold in its physical form. And 90 per cent of the gold loans are aviled in rural and semi-urban India.

Expecting the rural folk to approach RBI for getting their gold tokenised is highly unlikely. While embracing technology we need to be more realistic.

PD Sankaranarayanan

Perinthalmanna (Kerala)

The freebie headache

This refers to the Editorial ‘Raining freebies’. The recent debates on freebies have focussed on differentiating freebies from genuine welfare measures.

But here even the Supreme Court’s position is unconvincing as it has not found fault with offering freebies if they come under welfare schemes. This seems to have bolstered political parties position on freebies. The freebies range from smartphones to women in Rajasthan to scooters to girl school toppers in Madhya Pradesh.

These States fiscal deficit is bound to zoom, thanks to these freebies.

People should understand that the freebies are funded by tax payers’ money. States reverting to old pension scheme despite the finance minister’s warning is alarming. Hence it is crucial to distinguish between freebies and welfare measures.

Also there should be a limit for the cost of freebies. The political parties have a vested interest in continuing with freebies. So to put an end to this problem, the Supreme Court is the only option.

TSN Rao

Hyderabad

If India has to progress, our politicians should end the freebie culture. Money spent on freebies must go to infrastructure development.

Poverty and freebies is a vicious circle. Development schemes yield results over time, whereas freebies delvier votes in the short term.

Poor infrastructure, lack of good health facilities, and unemployment are the main problems afflicting our country. Industrial development, health care, and other allied activities have lagged and unemployment is a problem in various States. Instead of tackling these problems, our politicians are distributing freebies to come to power.

A nation is built by people. Freebies also impact the people’s motivation to work.

A country’s development, to a large extent, is determined by the quality of people and hence the right investment for the well-being of the people in terms of education, health, and training, incentives go a long way in building a strong nation.

Veena Shenoy

Thane

Free rations

The 5kg free ration scheme for 80 crore Indians during Covid should have ended after the pandemic ended. Like the reservation policy; the longer it continues the harder it will be to end it. PM Modi has said it would continue for the next year.

Whichever government comes to power; it face a terrible backlash if it tries to end this scheme. After calling out the freebie culture initially, the BJP too has now jumped on the bandwagon, as is observed by its promises in the Assembly elections.

Anthony Henriques

Mumbai