EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE CHENNAI THE HINDU 12 EDITORIAL FRIDAY, MARCH 16, 2018 EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE The strategy of conflict India must work towards some understanding with Pakistan before the situation on the border spins out of control The years immediately after the the Pakistani side using high ca­ the current muscular approach. Credit tangle 2003 CFA witnessed a great deal of libre weapons while not showing Second, more killing and destruc­ calm on the borders with CFVs any desire for talks, negotiations tion would also steadily shrink the The RBI’s omnibus ban on a legitimate dropping to a minimum even or concessions, and shunning Pa­ space available for negotiated out­ financing instrument is not the solution though infiltration into J&K and kistani suggestions thereof. India’s comes with Pakistan. Finally, the sporadic, minor terror attacks reported rejection, in January, of a current media frenzy surrounding month after the ₹12,800­crore letters of under­ Happymon Jacob against India continued to take Pakistani proposal for a meeting the border violence and the asso­ taking (LoUs) fraud at Punjab National Bank place. There were no major terror between the two Directors Gener­ ciated nationalist sentiments Acame to light, the Reserve Bank of India has de­ attacks, and Kashmir was calm. Bi­ al of Military Operations (DGMOs), could become a worry for the go­ cided to ban such instruments as well as letters of com­ little over two months into lateral talks drastically reduced saying it first wanted to see a drop vernment if and when it wishes to fort issued by bankers to businesses for international 2018, the violence on the violence during that phase. This PTI in infiltration levels is a direct out­ negotiate with Pakistan. transactions. While the government has been in fire­ AJammu and Kashmir ( J&K) lasted roughly till 2008. come of this strategy. The domes­ fighting mode, unleashing all investigative agencies to stretch of the India­Pakistan bor­ Another phase when this strate­ tic component of this strategy also Pakistan’s three-fold strategy der has reached a new high: more gy was evident was following to 2012 seems to fall in this catego­ involves a great deal of politicisa­ Pakistan seems to adopt a three­ probe the fraud, this is the first major step by the cen­ than 633 ceasefire violations Prime Minister Narendra Modi’s ry. Consider this: the two sides en­ tion of the Indian Army’s feats on fold strategy on the J&K border in­ tral bank on the issue, apart from asking banks to en­ (CFVs) by Pakistan have been re­ visit to Lahore. Thanks to the rap­ gaged each other in talks during or across the Line of Control, such formed by its conventional infe­ sure there are no slip­ups between their core bankin g ported by New Delhi which have prochement achieved by his visit, this time and CFVs reduced signif­ as the surgical strikes against Pa­ riority vis­à­vis India: keep the vio­ systems and the SWIFT mechanism used for interna­ claimed the lives of 12 civilians and the period from December 2015 to icantly — India reported 70 viola­ kistan in September 2016. lence on the border carefully tional money transfers. LoUs are among the most pop­ 10 soldiers. Many more have been February 2016 hardly witnessed tions in 2010, 62 in 2011 and 114 in CFVs since April 2016 and the calibrated without upping the ular instruments to secure overseas credit by importers injured and several civilian habi­ any CFVs, despite the Pathankot 2012. In 2010, the two Foreign Se­ current state of India­Pakistan re­ ante; seek meaningful talks on — known as buyers’ credit in banking parlance — be­ tats along the border destroyed. Air Force base attack in early Janu­ cretaries met in New Delhi, fol­ lations are largely informed by this Kashmir to turn down the rhetoric Till the first week of March, Pakis­ ary 2016. lowed by the two Foreign Minis­ strategy. Despite the rising terro­ on Kashmir and infiltration into cause of their attractive pricing. It is estimated that ov­ tan reported 415 CFVs by India The benefits of this strategy, ters meeting in Islamabad. In 2011, rist attacks inside J&K and the in­ J&K; propose tactical measures to erall, bank finance for imports into India is around $140 which have claimed 20 civilian adopted mostly by the previous the two Foreign Secretaries met in creasing CFVs, there has been reduce violence on the borders billion, of which over 60% is funded through such lives (there is no data on Pakistani United Progressive Alliance go­ Thimphu, and in 2012 the Indian hardly any dialogue (barring the such as DGMO talks and reduction buyers’ credit. Naturally, industry is unhappy with the military casualties). vernment and briefly by the in­ and Pakistani Foreign Ministers is­ meeting between the two National in the calibre of weapons, without RBI decision as this would raise the cost for importers, The calibre of weapons used on cumbent National Democratic Al­ sued a joint statement in Islama­ Security Advisors in Bangkok, giving up its claims and interests in who will now need to rely on more expensive instru­ the border have also graduated liance government, are evident. bad. which achieved precious little). In­ Kashmir. In other words, Pakistan ments such as bank guarantees and letters of credit. from short­range personal wea­ Engagement with Pakistan and While the talks went on, the fir­ dia, according to Pakistan, violat­ is looking for either conflict man­ pons to 105 mm mortars, 130 and quiet on the border are strongly ing on the J&K borders did not ed the ceasefire 389 times from agement vis­à­vis the J&K border The move will also impact the competitiveness of ex­ 155 mm artillery guns and anti­ correlated. The downside, howev­ come to a complete halt. Both April to December 2016, and in or a major dialogue process to re­ porters who import raw materials for their products. tank guided missiles. With the ris­ er, is that New Delhi feels that it talks and firing persisted, though 2017 over 2,000 times, with the solve the Kashmir issue. While the central bank had earlier blamed “delin­ ing violence, casualties and up­ tried the strategy of peace and at moderate levels. The benefits of trend continuing this year. India There is then a clear mismatch quent behaviour by one or more employees of the coming elections in both coun­ talks several times in the past and this game of proportionate res­ reported 449 violations by Pakis­ between the expectations and bank” and failure of internal controls for the PNB­Nirav tries, we may have a perfect recipe failed to get a positive response ponse — ‘talks for talks and bullets tan in 2016, and 860 in 2017. strategies of New Delhi and Isla­ Modi fiasco, RBI Governor Urjit Patel has finally com­ for escalation on our hands. from Pakistan. This has led to a for bullets’ — which went on with­ The benefits of this dispropor­ mabad/Rawalpindi. Whereas In­ mented on the fraud . Mr. Patel said he had chosen to The question we must ask our­ great deal of bitterness in India. out much fuss are clear: very little tionate bombardment strategy are dia is looking for an end to cross­ selves at this point, then, is this: is Failure of this strategy has been risk of escalation, fewer casualties too obvious to miss. Its domestic border infiltration and Pakistani speak because the central bank also feels the anger and this sheer mindless violence, or is due to the periodic terror attacks and limited destruction. political utility is enormous given involvement in Kashmir in return pain over the banking sector frauds that amount to there a strategy behind this vio­ carried out against India, infiltra­ However, this strategy comes the surprisingly few questions be­ for an end to shelling on the bor­ “looting” the country’s future by “some in the business lence? And if there indeed is a stra­ tion into J&K and the rise of mili­ with major political costs. Hardlin­ ing asked of the government about der, Pakistan is desirous of a reso­ community, in cahoots with some lenders”. Reiterating tegy, is it a carefully calibrated one tancy in Kashmir, in all of which ers and the opposition in India the rising civilian and military ca­ lution of or meaningful talks on that PNB’s internal systems failed to take note of the and what are its likely outcomes? India sees significant contribution criticised the Manmohan Singh go­ sualties. The ‘we kill more than Kashmir in return for calm bor­ RBI’s warnings about such risks, Mr. Patel took on sev­ of the Pakistani establishment. vernment of being weak, in partic­ they do’ argument, combined ders and cracking down on anti­In­ ere criticism about the RBI’s inability to detect the Three strategies While there are benefits of talks, ular when the beheadings of In­ with the ‘surgical strikes’ narra­ dia terror groups in Pakistan. The Ever since the ceasefire agreement they are neither consistent