Shobha De and Telengana

The tweet of Shobha De on Telengana has created a huge backlash in the form of protests from Shivsena. This has given raise to yet another debate on the influence of Cyber Space on physical society.

The protests give a larger than life importance to tweets and create a controversy out of nothing. In fact the controversial tweet says just the following.

“Maharashtra and Mumbai??? Why not? Mumbai has always fancied itself as an independent entity, anyway. This game has countless possibilities.”

Obviously the tweet did not deserve the massive protests that followed. Just as in the case of the Palgahar arrests, Shivsena has given more publicity to the event than the tweet could have ever created.

Without deviating into a debate on Telangana or Mumbai as a Union Territory both of whom deserve a much elaborate debate on other platforms, I would like to reflect on the behaviour of the sections of physical society which appears to be over reacting to the known influence of the cyber society.

We must understand that Digital Society has its own spread and culture. Tweets and Facebook postings are part of this culture. This is shared by a certain community. Normally these discussions are like passing comments in a party. They come and go as a thought. It is rare that the thoughts that come up on such tweets snow ball into a firm opinion even amongst the Netizens, let alone the Citizens who are not Netizens. The incidents in Egypt and other places where revolutions in physical space have been credited to the Cyber society are more a reflection of the power of Cyber space as a means of contact rather than as a means of creating new opinions.

For a passing comment to gather steam and become an opinion that can affect the physical society, there must be a “felt need” in the society and the tweet should have triggered a reaction. In both the Palghar incident and the Shobha De incident the reaction did not come from anti-Shivasena persons who agreed with the opinion expressed in the cyber space. We can interpret this as lack of sufficient momentum for the cause for the comment to take a snow balling effect. (We must admit that the counter reaction was immediate and hence there was no time for the tweets to really reach to a larger set of people)

The reactions came from those in the part of the physical society who opposed the expression and assumed that the expressions had a huge impact that required a counter reaction.

It is a reasonable guess that most of the protestors are not “Netizens” and did not have a first hand experience of the tweet/facebook comment. Some body in the party saw the tweet/facebook post and triggered the protests. These “Triggering persons” seem to have acted with no sense of proportion. They have created a panic amongst the ordinary workers in the party and given out an impression as if a “Campaign for Independent Mumbai” had been started by Shobha De. The workers who did not know what is a “tweet”, “Who reads the tweets”, “What is the tweet culture” etc., simply accepted the suggestion made by the “Triggering person” and started the protests.

The end result is that now more people will think about the “culture of intolerance” that the protestors represent and perhaps see some value in the argument that Mumbai needs to be liberated from the control of such biased elements. The end result is that Shiv sena must have made more enemies than friends because of the protests.

The “Lack of Restraint” shown by the Cyber literate persons within a community dominated by Cyber illiterate majority, who have triggered the backlash, appears to be a behavioural trait that needs to be recognized and studied. The trait represents a desire to show that “I am Cyber literate” and “I claim leadership in the cyber literate group of my community”. It is a method by which some persons try to create a niche market for themselves within the community (In this case the Shivsena party) and become “niche leaders”.

This trait is similar to the behaviour of leaders who create an identity for themselves by creating divisions in the society by caste, sub caste, region etc. In fact this is the same trait that drives the demand for Telengana or Ghorkhaland or Bodo land. As long as we Indians donot develop the ability to control such trait, the country cannot unite. It is ironic that at one time there was a fight for “United Andhra” and now there is a fight for “Divided Andhra”. If there is a logic in dividing each state into multiple states, then why not each district or taluk be an independent “State”? In fact one time in history (“ondaanoMdu Kaaladalli”),there were perhaps Paleyagars who controlled small units of the community.  It was however found undesirable that the community is so divided and the concept of aggregation came into practice. It is in the same manner that Sardar Patel could argue for Akhanda Bharath/United India. It is the desire of regional leaders to create a political space for themselves that is today creating a demand for smaller state.  It has no economic logic or community interest in such moves.

At this point of time Cyber Space is more united than the physical space. There is no caste, creed, or geographical boundaries. But as we move from the “Anonymous Digital Society” to “Identified Digital Society”, the digital society is also getting divided into the same small sub sets that the physical societies are used to. There is a demand for Indian Twitter and Indian Facebook. Tomorrow there will be a demand for Telengana Twitter and Bodoland Facebook. This will kill the good things that Internet has brought to the society and the bad things of the physical society gets transferred to the digital society.

In order to preserve the integrity of the Cyber Space there is a need for all of us to think how we can ensure that “Free Internet” survives even during the increasing domination of the “Commercial Internet” which requires “Identity dominated Internet”.

The demand for “Regulated Anonimity” therefore emerges as one likely solution.

The other solution is for celebrities to  rethink on their “Tweet Strategy” and consider if it is necessary for them  to remain anonymous in cyber space if they need to build opinions that bring beneficial change in the community. Perhaps celebrities need to keep two channels of tweeting running parallel to each other and use their real identities only sparingly.

This discussion will gather more momentum as we near the next election when there will probably be a twitter war between political parties in India. At such a time, the essence of every tweet will be lost by the information on who made the tweet. For example while discussing politically sensitive topics say such as the “Gujarat Model of Development”, it is essential for the tweeter to focus on the topic without the readers trying to interpret the essence of the tweet with the colour of the political affiliation of the tweeter. I suppose both the BJP and  Congress will keep this in mind during their cyber campaigns.

Naavi

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IDRBT sets up Information Assurance Center

According to a report in Hindu-Business Line, the Governor of RBI inaugurated a Centre for Information Assurance and Management (CIAM) in association with the State University of New York at Buffalo.

The CIAM is expected to  function as a “one-stop” resource centre for all information assurance and management technology, tools, literature and experts for the Indian banking and financial sector.

It is also expected to  carry out research and development in the areas of information security, information assurance and management, cyber forensics and related areas and provide thought leadership and mentoring to the banking, financial services and insurance sectors.

Naavi

Posted in Bank, RBI | Leave a comment

What ITA 2008 lacks

I draw attention to today’s article in Hindu highlighting the plight of two Air India employees who have been charged under Section 66A and 67 following a complaint motivated by union rivalry.

It is stated that the Police in this case had arrested the accused from their homes in violation of Section 80 of ITA 2008.

The Police appear to have acted under the influence of some vested interests and exceeded their legal authority. Though the charges may be dismissed by the Court in due course, the accused has already been subjected to great inconvenience so far and will continue to suffer damages in various form to their reputation as well as their career prospects by virtue of the police excesses.

These are issues that are normally taken up under the Human Rights Violation.

However, for better relief, it is necessary that ITA 2008 itself should have a protective clause making police responsible and punishable for wrong use of the Act. In every case under ITA 2008, it should be mandatory for the Court to take a view on whether the charges were justified and if not, there should be a mandatory punishment for the police personnel involved. It could be token punishment in certain cases but where “Unjustified Arrest Without Warrant” is involved, there should be a more serious punishment.

Naavi

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New Bank Licenses, Eligibility Evaluation

We have discussed in general the issues that dominate the challenge before the RBI in determining who amongst the 26 Banking license applicants should be given the licenses.

To start with, there are divergent views on how many licenses need to be issued. At one end of the spectrum, some feel that there is no need to start with a restrictive frame of mind since India needs many more Banks. However, conservative observers feel that there is a need to ensure that only a few licenses need to be issued. Banking is a sensitive industry and even “Competition” is harmful if it reaches undesirable levels. We are all aware how the NBFC sector was irretrievably affected by companies like CRB Capital which in its greediness to grow offered 17% p.a returns on fixed deposits and dragged the whole industry into disrepute.  Even today, many of the private Banks suffer because they compete too aggressively on advances.

It is necessary for us to distinguish Banking from Money Lending. Money lending is done with own funds and the money lender can be as aggressive as his capacity to lose permits him. He can also expect usurious rates of return to compensate for his risks.  He can also mobilize bulk deposits from friends at higher than market rates as long as they are aware of and partake the risks. Banking is different. It is essentially a means for channelizing public savings. Hence “Safety of Deposits” assumes priority. This requires conservative approach to lending. Too much of aggressiveness in lending is therefore harmful. Similarly for Banks, too much of aggressiveness in deposit mobilization offering impractical rates of interest is also undesirable.

The capability of the licensees to do successful Banking therefore needs to be assessed with this basic distinction in mind as to whether the licensee is likely to be a “Good Banker” and not whether he can be a “Good Money Lender”.

In order to develop some objective frame of reference to evaluate the 26 applicants, I have listed the following 14 criteria for evaluation.

1.Vision
2.Capital Adequacy
3.Financial Inclusion-

(a) Deposit Mobilization
(b) Retail Lending
(c) Services

4. Priority Sector Lending
5.Managerial Capability
6.Conflict Possibility
7. Managerial Reputation
8.Foreign Interests
9.Technological capability
10. Cultural Compatibility
11. Investor Friendliness
12. Security of Deposits
13.Manpower availability
14.Crisis Management Capability

It is possible that different analysts may adopt different criteria for evaluation and RBI may have its own criteria. But eventually there will be some commonalities in the parameters to be used for evaluation. Out of these parameters there could be some on whom an external analyst may not be able to get proper information to make an objective evaluation. Hence there could be some subjectivity in the evaluation. However when we create a matrix of parameters like above we are likely to reduce the effect of subjective bias and hence this approach is considered better. It is possible that some analysts may consider that some more parameters should be added to the above.

I will also try to expand the scope of each of the above parameters in some subsequent articles.

I invite suggestions from the public on whether we need to add any more parameters to the above. Readers may also take a second look at the previous related articles listed below for more information.

15: IT Companies vie for business from New Banks

14: RBI Faces first challenge in Bank Licensing on Aditya Birla Group and Conflict of Interest

13: Naavi’s proposition on Sanctions on Banks is reflected also in the EU Guidelines

12. New Banking Liensees-Beware of IT Companies who want to trap you

11: New Banking Licenses in India

10. The Thief who stole Rs 286 crores from Banks coming to India

Here is a slist of first set articles so far placed on the website.

1. Should Indian Post be granted Banking license?… Do they need one?

2.Which of the 26 applicants deserve Bank license

3.Banking License aspirants should disclose business plans to public.

4.Will RBI disclose “Sanction Mechanism” to enforce sanctity of Banking license conditions?

5. Not all Eligible applicants to get Banking license

6. New Bank Licenses-Make Cyber Crime Insurance Mandatory

7. “Deep Pockets” need not be the sole criteria for Bank licenses

8.Banking Licenses and Public Sector aspirants

9. New Banking License-Let’s remember Gandhian Principles of Banking

 

Naavi

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IT Companies vie for business from New Banks

Even before the decision on which of the 26 applicants will get Banking license, Infosys, TCS and Oracle are vieing with each other for supply of Core Banking software to the new Banks.

It is estimated that each Bank will spend about 25-50 crores in initial networking costs and subsequently spend about 5 to 6% of the annual revenue in maintenance. It is therefore a huge business for the IT Companies.

Refer Article in HIndu Business Line for more

Naavi

Posted in Bank, RBI | Leave a comment

Loan Through SMS ??

There is an interesting website on the cyber space which promises all kinds of loans for which application can be made through SMS.

Check this interesting website http://www.cgtmse-govt.in

The site sports photographs of all Congress leaders including Mrs Sonia Gandhi, Dr Man Mohan Singh, Mr Pranab Mukherjee etc and claims to be a site of the Government of India.

Applications are sought through SMS at 09748643575

An investigation is required to find out if this is a fraudulent website and if so who is behind this fraud. The site is registered by a person in Siliguri and freely uses all Government symbols for promotion. It is possible that this could be another scam in which some of the politicians are involved.

Naavi
Posted in Cyber Law | 26 Comments