Unit-8.pdf
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CLASSICAL APPROACH LUTHER
GULICK AND
LYNDALL URWICK.
👆Relevant for Commerce Optional paper 2.
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GULICK AND
LYNDALL URWICK.
👆Relevant for Commerce Optional paper 2.
Join 🔜 @commerceoptional
Forwarded from Civil Service Gurukul (🌟Civil Service Gurukul🌟)
What are Small Savings Instruments?
Saving schemes are instruments that help individuals achieve their financial goals over a particular period.
These schemes are launched by the Government of India, public/private sector banks, and financial institutions.
The government or banks decide the interest rate for these schemes and are periodically updated.
You can use the savings you make through these schemes for emergencies, retirement, higher education, children's education, marriage, at the time of job loss, to reduce debts and more.
Why are they significant?
Saving schemes are important for individuals of a country and, in turn, for an economy because of the following reasons:
Safety: Depositing your hard-earned excess money in saving schemes will help secure it for your future needs. Holding on to liquid money may not be safe.
Retirement Funds: Periodically, depositing money in long-term saving schemes can help you build a retirement corpus..
Tax Savings: Many saving schemes offer one or the other kind of tax benefitsmay it be tax deductions, exemption, or both.
Avoid Unwanted Expenses: When you have all the money at hand, you may end up spending it on unwanted items.
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Also Join @Commerceoptional
Saving schemes are instruments that help individuals achieve their financial goals over a particular period.
These schemes are launched by the Government of India, public/private sector banks, and financial institutions.
The government or banks decide the interest rate for these schemes and are periodically updated.
You can use the savings you make through these schemes for emergencies, retirement, higher education, children's education, marriage, at the time of job loss, to reduce debts and more.
Why are they significant?
Saving schemes are important for individuals of a country and, in turn, for an economy because of the following reasons:
Safety: Depositing your hard-earned excess money in saving schemes will help secure it for your future needs. Holding on to liquid money may not be safe.
Retirement Funds: Periodically, depositing money in long-term saving schemes can help you build a retirement corpus..
Tax Savings: Many saving schemes offer one or the other kind of tax benefitsmay it be tax deductions, exemption, or both.
Avoid Unwanted Expenses: When you have all the money at hand, you may end up spending it on unwanted items.
Join 🔜 @economyupsc
Also Join @Commerceoptional
Insurance Amendment Bill 2021
The Bill seeks to amend the Insurance Act, 1938.
The Act provided the framework for functioning of insurance businesses and regulates the relationship between an insurer, its policyholders and its shareholders.
It also had provisions regarding the regulator (the Insurance Regulatory and Development Authority of India).
Key highlights of the bill
The Bill seeks to increase the maximum foreign investment allowed in an Indian insurance company.
() Foreign investment
The Act allows foreign investors to hold up to 49% of the capital in an Indian insurance company, which must be owned and controlled by an Indian entity.
The Bill increases the limit on foreign investment in an Indian insurance company from 49% to 74%, and removes restrictions on ownership and control.
However, such foreign investment may be subject to additional conditions as prescribed by the central government.
() Investment of assets
The Act requires insurers to hold a minimum investment in assets which would be sufficient to clear their insurance claim liabilities.
If the insurer is incorporated or domiciled outside India, such assets must be held in India in a trust and vested with trustees who must be residents of India.
The Act specifies in an explanation that this will also apply to an insurer incorporated in India, in which at least: (i) 33% capital is owned by investors domiciled outside India, or (ii) 33% of the members of the governing body are domiciled outside India.
Join 🔜 @economyupsc
Also Join @Commerceoptional
The Bill seeks to amend the Insurance Act, 1938.
The Act provided the framework for functioning of insurance businesses and regulates the relationship between an insurer, its policyholders and its shareholders.
It also had provisions regarding the regulator (the Insurance Regulatory and Development Authority of India).
Key highlights of the bill
The Bill seeks to increase the maximum foreign investment allowed in an Indian insurance company.
() Foreign investment
The Act allows foreign investors to hold up to 49% of the capital in an Indian insurance company, which must be owned and controlled by an Indian entity.
The Bill increases the limit on foreign investment in an Indian insurance company from 49% to 74%, and removes restrictions on ownership and control.
However, such foreign investment may be subject to additional conditions as prescribed by the central government.
() Investment of assets
The Act requires insurers to hold a minimum investment in assets which would be sufficient to clear their insurance claim liabilities.
If the insurer is incorporated or domiciled outside India, such assets must be held in India in a trust and vested with trustees who must be residents of India.
The Act specifies in an explanation that this will also apply to an insurer incorporated in India, in which at least: (i) 33% capital is owned by investors domiciled outside India, or (ii) 33% of the members of the governing body are domiciled outside India.
Join 🔜 @economyupsc
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👆financial markets topic of paper 1 insurance sector reforms
NITI Aayog report on digital financial inclusion:
Key recommendations in the report include:
1. Strengthening the payment infrastructure to promote a level playing field for NBFCs and banks.
2. Digitizing registration and compliance processes and diversifying credit sources to enable growth opportunities for MSMEs.
3. Building information sharing systems,including a ‘fraud repository’, and ensuring that online digital commerce platforms carry warnings to alert consumers to the risk of frauds.
4. Enabling agricultural NBFCs to access low-cost capital and deploy a ‘phygital’ (physical + digital) model for achieving better long-term digital outcomes. Digitizing land records will also provide a major boost to the sector.
5. To make city transit seamlessly accessible to all with minimal crowding and queues, leveraging existing smartphones and contactless cards, and aim for an inclusive, interoperable, and fully open system such as that of the London ‘Tube’.
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Also Join @Commerceoptional
Key recommendations in the report include:
1. Strengthening the payment infrastructure to promote a level playing field for NBFCs and banks.
2. Digitizing registration and compliance processes and diversifying credit sources to enable growth opportunities for MSMEs.
3. Building information sharing systems,including a ‘fraud repository’, and ensuring that online digital commerce platforms carry warnings to alert consumers to the risk of frauds.
4. Enabling agricultural NBFCs to access low-cost capital and deploy a ‘phygital’ (physical + digital) model for achieving better long-term digital outcomes. Digitizing land records will also provide a major boost to the sector.
5. To make city transit seamlessly accessible to all with minimal crowding and queues, leveraging existing smartphones and contactless cards, and aim for an inclusive, interoperable, and fully open system such as that of the London ‘Tube’.
Join 🔜 @economyupsc
Also Join @Commerceoptional
👉 Relevant for Commerce Optional Industrial relation topic paper 2.
By Civil Service Gurukul
Section 142 of the social security code.
Aadhaar mandatory
The Union government has made Aadhaar mandatory for availing social security benefits, and for registration on a national informal workers' database being developed for migrants.
The labour ministry has notified section 142 of the social security code.
It allows authorities to collect Aadhaar details for the database of beneficiaries under various social security schemes.
The move will be applicable to both formal and informal workers and may also help in curbing duplication of data by keeping imposters at bay, authorities said.
However, people who don't have Aadhaar will not be denied of benefits, the ministry claims.
National informal workers' database
National database for unorganized workers is at an advanced stage of development by National Informatics Centre.
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The portal is aimed at collection of data for unorganized workers, including migrant workers for the purpose of giving benefits of the various schemes of the government.
An inter-state migrant worker can register himself on the portal on the basis of submission of Aadhaar alone.
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BASICS
The Code on Social Security, 2020is acodeto amend and consolidate the laws relating tosocial securitywith the goal to extend social security to all employees and workers either in theorganisedorunorganisedor any other sectors.
Join 🔜 @economyupsc
Also Join @Commerceoptional
The Social Security Code, 2020 bringsunorganised sector,gig workersand platform workers under the ambit of social security schemes, includinglife insuranceand disability insurance, health and maternity benefits,provident fundand skill upgradation, etc. The act amalgamates 9 central labour enactments relating to social security.
To access complete Act, you can click on the link given below:
https://labour.gov.in/sites/default/files/SS_Code_Gazette.pdf
By Civil Service Gurukul
Section 142 of the social security code.
Aadhaar mandatory
The Union government has made Aadhaar mandatory for availing social security benefits, and for registration on a national informal workers' database being developed for migrants.
The labour ministry has notified section 142 of the social security code.
It allows authorities to collect Aadhaar details for the database of beneficiaries under various social security schemes.
The move will be applicable to both formal and informal workers and may also help in curbing duplication of data by keeping imposters at bay, authorities said.
However, people who don't have Aadhaar will not be denied of benefits, the ministry claims.
National informal workers' database
National database for unorganized workers is at an advanced stage of development by National Informatics Centre.
Join 🔜 @economyupsc
Also Join @Commerceoptional
The portal is aimed at collection of data for unorganized workers, including migrant workers for the purpose of giving benefits of the various schemes of the government.
An inter-state migrant worker can register himself on the portal on the basis of submission of Aadhaar alone.
------------------//--------------
BASICS
The Code on Social Security, 2020is acodeto amend and consolidate the laws relating tosocial securitywith the goal to extend social security to all employees and workers either in theorganisedorunorganisedor any other sectors.
Join 🔜 @economyupsc
Also Join @Commerceoptional
The Social Security Code, 2020 bringsunorganised sector,gig workersand platform workers under the ambit of social security schemes, includinglife insuranceand disability insurance, health and maternity benefits,provident fundand skill upgradation, etc. The act amalgamates 9 central labour enactments relating to social security.
To access complete Act, you can click on the link given below:
https://labour.gov.in/sites/default/files/SS_Code_Gazette.pdf
Questions of the Day for UPSC Commerce Optional.
Q.1 What is virtual organization? Do you visualize it in Indian scenario? Examine its merits and limitations. ( UPSC Mains-2014: Commerce Paper2)
@COMMERCEOPTIONAL
Q.1 What is virtual organization? Do you visualize it in Indian scenario? Examine its merits and limitations. ( UPSC Mains-2014: Commerce Paper2)
@COMMERCEOPTIONAL
Forwarded from Commerce Optional (UPSC-IAS)
Civil Service Gurukul
Meaning Primary Market & Functions of Primary Market - Civil Service Gurukul
Primary Market /New Issue Market (NIM) Every company needs funds. Funds may be required for short term or long term. Short term requirements of funds can Read More ...
Forwarded from Civil Service Gurukul
Role of Reserve Bank of India in Credit Control
https://www.civilservicegurukul.com/role-of-reserve-bank-of-india-in-credit-control/
Role of Reserve Bank of India in Credit Control The Reserve Bank of India adopts two methods to control credit in modern times for regulating bank advances. Read More ... (https://www.civilservicegurukul.com/role-of-reserve-bank-of-india-in-credit-control/)
The post Role of Reserve Bank of India in Credit Control (https://www.civilservicegurukul.com/role-of-reserve-bank-of-india-in-credit-control/) appeared first on Civil Service Gurukul (https://www.civilservicegurukul.com/).
https://www.civilservicegurukul.com/role-of-reserve-bank-of-india-in-credit-control/
Role of Reserve Bank of India in Credit Control The Reserve Bank of India adopts two methods to control credit in modern times for regulating bank advances. Read More ... (https://www.civilservicegurukul.com/role-of-reserve-bank-of-india-in-credit-control/)
The post Role of Reserve Bank of India in Credit Control (https://www.civilservicegurukul.com/role-of-reserve-bank-of-india-in-credit-control/) appeared first on Civil Service Gurukul (https://www.civilservicegurukul.com/).
Forwarded from Civil Service Gurukul
Role of Reserve Bank of India in Money market
https://www.civilservicegurukul.com/role-of-reserve-bank-of-india-in-money-market/
RBI is the most important constituent of the money market. The money market comes within the direct purview of the Reserve Bank of India regulations. The Read More ... (https://www.civilservicegurukul.com/role-of-reserve-bank-of-india-in-money-market/)
The post Role of Reserve Bank of India in Money market (https://www.civilservicegurukul.com/role-of-reserve-bank-of-india-in-money-market/) appeared first on Civil Service Gurukul (https://www.civilservicegurukul.com/).
https://www.civilservicegurukul.com/role-of-reserve-bank-of-india-in-money-market/
RBI is the most important constituent of the money market. The money market comes within the direct purview of the Reserve Bank of India regulations. The Read More ... (https://www.civilservicegurukul.com/role-of-reserve-bank-of-india-in-money-market/)
The post Role of Reserve Bank of India in Money market (https://www.civilservicegurukul.com/role-of-reserve-bank-of-india-in-money-market/) appeared first on Civil Service Gurukul (https://www.civilservicegurukul.com/).
✅🏦Recent change in the law that has brought cooperative banks under the supervision of the Reserve Bank of India (RBI).🏦✅🔵🔽
👆 current affairs for Commerce Optional UPSC @Commerceoptional
✅🔵Who oversees these banks?
In India, cooperative banks are registered under the States Cooperative Societies Act.
They also come under the regulatory ambit of the Reserve Bank of India (RBI) under two laws, namely, the Banking Regulations Act, 1949, and the Banking Laws (Co-operative Societies) Act, 1955.
In India, cooperative banks are registered under the States Cooperative Societies Act.
They also come under the regulatory ambit of the Reserve Bank of India (RBI) under two laws, namely, the Banking Regulations Act, 1949, and the Banking Laws (Co-operative Societies) Act, 1955.
✅How has The Banking Regulation Act been amended?
Cooperative banks have long been under dual regulation by the state Registrar of Societies and the RBI.
As a result, these banks have escaped scrutiny despite failures and frauds.
The changes to The Banking Regulation Act approved by Parliament in September 2020, brought cooperative banks under the direct supervision of the RBI.
🔵🔽✅Changes brought
The amended law has given RBI the power to supersede the board of directors of cooperative banks after consultations with the concerned state government.
Earlier, it could issue such directions only to multi-state cooperative banks.
Also, urban cooperative banks will now be treated on a par with commercial banks.
And a cooperative bank can, with prior approval of the RBI, issue equity shares, preference shares, or special shares to its members or to any other person residing within its area of operation, by way of public issue or private placements.
It can also issue unsecured debentures or bonds with a maturity of not less than 10 years.
@Commerceoptional
This essentially means non-members can become shareholders of the bank, and this will allow the RBI to merge failing banks quickly.
Cooperative banks have long been under dual regulation by the state Registrar of Societies and the RBI.
As a result, these banks have escaped scrutiny despite failures and frauds.
The changes to The Banking Regulation Act approved by Parliament in September 2020, brought cooperative banks under the direct supervision of the RBI.
🔵🔽✅Changes brought
The amended law has given RBI the power to supersede the board of directors of cooperative banks after consultations with the concerned state government.
Earlier, it could issue such directions only to multi-state cooperative banks.
Also, urban cooperative banks will now be treated on a par with commercial banks.
And a cooperative bank can, with prior approval of the RBI, issue equity shares, preference shares, or special shares to its members or to any other person residing within its area of operation, by way of public issue or private placements.
It can also issue unsecured debentures or bonds with a maturity of not less than 10 years.
@Commerceoptional
This essentially means non-members can become shareholders of the bank, and this will allow the RBI to merge failing banks quickly.
⏬Open Market Operations (OMO)⏬
OMOs is one of the quantitative monetary policy tools which is employed by the central bank of a country to control the money supply in the economy.
It is a part of the Market Stabilization Scheme (MSS) by the RBI.
OMOs are conducted by the RBI by way of sale or purchase of government securities (g-secs) to adjust money supply conditions.
The central bank sells g-secs to remove liquidity from the system and buys back g-secs to infuse liquidity into the system.
OMOs is one of the quantitative monetary policy tools which is employed by the central bank of a country to control the money supply in the economy.
It is a part of the Market Stabilization Scheme (MSS) by the RBI.
OMOs are conducted by the RBI by way of sale or purchase of government securities (g-secs) to adjust money supply conditions.
The central bank sells g-secs to remove liquidity from the system and buys back g-secs to infuse liquidity into the system.