Modiji why you do this?
जो Crush पूरे साल नही पटी उसे आज प्रोपोज़ करके क्या उखाड़ लोगे।
What would be the benefit of linking Base Rate with MCLR as notified by RBI?
Jab itni baktati ho rhi hai is group pe to koi ye btao Sbi branch located in chattisgarh and mp Me kya jyda crowd rehta hai in case koi kbhi gya ho sbi in states me Ya moderate rehta hai bcoz Yha delhi me to khatrnak rehta hai side me hi hai sbi bank employees subah aate hai and sham ko 7-8 tak rehte hai Same haal chattisgarh and mp me bhi hai kya Aisa isliye puch rha hu bcoz udhr to gramin bank bhi bahut hote hai !!
first time , i asked someone for a keess,she rejected my offer just because i had beard and she hated beard ,it sting blah blah, what nonsense😡😬
1 hour more to kill , oh yeah
😀
oh $hit 😂
yehan pr whi log bakloli kar rhe jinki gf chor gyi ya hai ni... like me.. lol
Changes made in classification of MSMEs:
Context:
The Union Cabinet has approved change in the basis of classifying Micro, Small and Medium enterprises from ‘investment in plant & machinery/equipment’ to ‘annual turnover’. Section 7 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 will accordingly be amended to define units producing goods and rendering services in terms of annual turnover as follows:
- A micro enterprise will be defined as a unit where the annual turnover does not exceed five crore rupees;
- A small enterprise will be defined as a unit where the annual turnover is more than five crore rupees but does not exceed Rs 75 crore;
- A medium enterprise will be defined as a unit where the annual turnover is more than seventy five crore rupees but does not exceed Rs 250 crore.
- Additionally, the Central Government may, by notification, vary turnover limits, which shall not exceed thrice the limits specified in Section 7 of the MSMED Act.
Background:
At present the MSMED Act (Section 7) classifies the Micro, Small and Medium Enterprises (MSMEs) on the basis of investment in plant and machinery for manufacturing units, and investment in equipment for service enterprises. The criterion of investment in plant and machinery stipulates self declaration which in turn entails verification if deemed necessary and leads to transaction costs. Significance of this move:
The change in the norms of classification will enhance the ease of doing business. The consequent growth and will pave the way for increased direct and indirect employment in the MSME sector of the country. This will also encourage ease of doing business, make the norms of classification growth oriented and align them to the new tax regime revolving around GST (Goods & Services Tax).
Rationalization of autonomous bodies:
Context:
The Union Cabinet has approved the proposal for closure of Autonomous Bodies, namely, Rashtriya Arogya Nidhi (RAN) and Jansankhya Sthirata Kosh (JSK) and the functions are proposed to be vested in Department of Health & Family Welfare (DoHFW).The rationalization of Autonomous Bodies under Department of Health & Family Welfare will involve inter-ministerial consultations and review of existing bye laws of these bodies. The time frame for implementation is one year.
Rashtriya Arogya Nidhi (RAN):It was set up as a registered society to provide financial medical assistance to poor patients receiving treatment in designated central government hospitals. An advance is placed with the Medical Superintendents of such hospitals who then provide assistance on a case to case basis. Since the DoHFW provides funds to the hospitals, the grants can be given from the Department to the hospital directly. RAN functions can, therefore, be vested in DoHFW. Managing Committee of RAN Society will meet to dissolve the Autonomous Body (AB) as per provisions of Societies Registration Act, 1860 (SRA). In addition to this, Health Minister’s Cancer Patient Fund (HMCPF) shall also be transferred to the Department. The timeline required for this is one year. Jansankhya Sthirata Kosh (JSK):It was set up with a corpus grant of Rs.100 crores in the year 2003 to raise awareness for population stabilization strategies. JSK organizes various activities with target populations as a part of its mandate. There has been no continuous funding to JSK from the Ministry. Population stabilization strategies require private and corporate funding, which can be accessed through JSK. Although, JSK will continue to play a significant role in population stabilization strategies, its existence as an Autonomous Body is not necessary. Hence, JSK as an Autonomous Body can be closed as it can be administered by the Department as a fund.
RBI to link base rate with MCLR from 1 April
Improving monetary policy transmission
- The Reserve Bank of India (RBI) will link the base rate for loans with the marginal cost of funds-based lending rate (MCLR) from 1 April
- This is likely to narrow the gap between the base rate and MCLR, and benefit borrowers who are still using the base rate
- It is being seen as a phasing out of the base rate system
MCLR benefits
- The MCLR is more sensitive to monetary policy transmission and is closely linked to the actual deposit rates
- MCLR is calculated on the basis of incremental cost of funds, making it a more reliable benchmark rate as compared to the base rate
- MCLR is reviewed on a monthly basis and base rate on a quarterly basis
Example
- Since April 2016, while the repo rate has been reduced by 75 basis points, State Bank of India’s base rate has come down by 65 basis points but the one-year MCLR by as much as 1.25 percentage points
- One basis point is one-hundredth of a percentage point
Back2Basics
Base Rate
- Base rate is the minimum rate set by the Reserve Bank of India below which banks are not allowed to lend to its customers
- Base rate is decided in order to enhance transparency in the credit market and ensure that banks pass on the lower cost of fund to their customers
MCLR
- MCLR actually describes the method by which the minimum interest rate for loans is determined by a bank – on the basis of marginal cost or the additional or incremental cost of arranging one more rupee to the prospective borrower
- The MCLR is a tenor linked internal benchmark (tenor means the amount of time left for the repayment of a loan)
- The MCLR comprises of the following:a) The marginal cost of funds which is a novel concept under the MCLR methodology comprises of Marginal cost of borrowings and return on net worth, appropriately weighed. b) Negative carry on account of’ Cash reserve ratio (CRR)- Negative carry on the mandatory CRR arises because the return on CRR balances is nil. Negative carry on mandatory Statutory Liquidity Ratio (SLR) balances may arise if the actual return thereon is less than the cost of funds.c) Operating Cost associated with providing the loan product, including cost of raising funds, but excluding those costs which are separately recovered by way of service charges.d) Tenor Premium- The change in tenor premium cannot be borrower specific or loan class specific. In other words, the tenor premium will be uniform for all types of loans for a given residual tenor.
- The MCLR methodology for fixing interest rates for advances was introduced by the Reserve Bank of India with effect from April 1, 2016
Making sense of the global rout
What is the issue?
- Global stock markets are falling
- But it is too early to either say why global markets have suddenly reversed course or whether the recent tumble is just a bull market correction rather than something deeper
Analyzing the current global situation
- Global monetary policy is tightening
- The US Federal Reserve seems to be on course for three rate hikes this year
- And it remains to be seen when Europe and Japan begin to withdraw from their versions of quantitative easing
- Bond yields have spiked
- Wage growth in the US is perhaps rising at the fastest pace since 2008 and economists have yet to figure out whether the effect will be inflation or a profit squeeze
Best Policy response - The best policy response will depend on which of the two effects are more likely(tightening of the monetary policy and wage growth)
- Advanced economy central banks will have to accelerate rate hikes in case higher wage costs quickly feed inflation
Other issues
- There are more serious fears in the air as well
- Some investors have begun to talk about outlier events such as a major bank failure or an emerging-markets blowout
Effect on India
- India has naturally not been spared
- The broad share indices have given up most of their gains since the beginning of the calendar year
- A prolonged wave of selling in the global markets could also have serious repercussions on Indian macroeconomic stability
- Though the fall in Brent crude to its lowest level in a month could offer some respite to a large energy importer such as India
Is the current situation similar to 2008 crisis?
- Many investors could be wondering whether the ongoing market turmoil is the opening sequence of a 2008-style meltdown
- A lot depends on the similarities and differences from that gut-wrenching episode
- The most important similarity is that leverage is still dangerously high, though it is more on government rather than private sector balance sheets right now
- The most important difference is that the global economy is in the early stages of a strong recovery rather than in the last stages of an expansion
The way forward
- What can be said for now is that the tightening of global liquidity is bound to make equities unattractive on a relative basis
- And so a lot will depend on how the underlying macro and corporate fundamentals move in the quarters ahead
Is Ayushman Bharat a game changer?
Health Sector: Challenges infront of India
- The country is having to confront the emerging problem of chronic non-communicable diseases such as cardiovascular diseases, diabetes, cancer
- Infectious diseases such as tuberculosis, malaria, dengue, H1N1 pandemic influenza and antimicrobial resistance remain a continued threat to health and economic security
- The health infrastructure is already under severe strain
- Out of pocket expenditure force families to sell their assets for getting required health services
National Health Protection Scheme (NHPS)
- The scheme was announced in the recent budget
- The scheme will provide Rs 5 lakh insurance cover per family per year
- The scheme is for secondary and tertiary healthcare, mainly for hospital care
- This flagship scheme is likely to benefit more than 37% of the population
Financial support
- The government will require Rs 12000 crore for it’s implementation, with cost shared on a 60:40 basis between central and state governments
Health and Wellness centres
- The finance ministry has also announced setting up or converting some 150,000 subcentres in the country into so-called “health & wellness” centres
- These centres will offer a set of services including maternal and child health services, mental health services, vaccinations against selected communicable diseases, and screening for hypertension, diabetes, and some cancers
The Ayushman Bharat programme: Two main aims
- To strengthen primary health care which has been lacking in the country and
- To offer finacial protection from catastrophic expenditure
How can the programme be a game changer?
- The scheme, if implemented properly could be a game changer by enhancing access to health care including early detection and treatment services by a large section of society who otherwise could not afford them
- Ultimately, NHPS could help country move towards universal health coverage and equitable access to healthcare which is one of the UN Sustainable Development Goals or SDGs
Not all issues will be solved with this scheme
- The NHPS scheme, which primarily offers support for clinical services such as hospitalization, is unlikely to help fix the broken public health system in the country
- Most primary health care centres suffer from perennial shortage of doctors and even district hospitals are without specialists
- Without addressing the human resouce situation, public sector health care will remain of poor quality and largely unacceptable, forcing patients to go to the private sector
- Therefore, it seems as if NHPS is likely to benefit private parties more than government health services
Suggestions for effective implementation
- For the success of the programme, effective implementation is the key
- For this an independent body or unit may be set up within the ministry of health & family welfare to plan
- This unit can help to plan, coordinate, and provide technical backstopping to states, including in capacity building and development of standards and guidelines for the programme
There are three types of Monetary policy followed by RBI-
- Accommodative Monetary Policy- It is followed by RBI to increase the money supply in the economy. This is done by lowering of the repo rate by the RBI (though there are other tools as well)so that borrowing money gets easier. And people consume more. It is done to boost the economy when it is slowing. This type of policy is also called as Easy or Expansionary Monetary Policy of the RBI
- Contractionary Monetary Policy- It is followed by RBI to decrease the overall supply of money in the economy. This is done by RBI with the help of increasing the repo rate. This is makes consumption difficult in the economy. This is done in order to control inflation
- A neutral stance of RBI provides it the flexibility to move in either of the directions. But, prevailing risk of inflation may mean that the RBI won't cut down the interest rates.
Last post of today
Making school education qualitative
The Central Government, through the centrally sponsored schemes of Sarva Shiksha Abhiyan (SSA) and Rashtriya Madhyamik Shiksha Abhiyan (RMSA) supports the States and UTs on several interventions to improve quality, including regular inservice teachers’ training, induction training for newly recruited teachers, training on ICT Component, Inclusive Education, Gender Sensitization and Adolescent Education.Under both SSA and RMSA, the focus is to give subject specific, need based and relevant in service teacher training to both elementary and secondary teachers for their professional development.Moreover, interventions like motivation and awareness programmes, remedial teachingare also supported under RMSA to improve quality of school education at secondary level. Further, interventions such as Science fair/Exhibition and Talent Search at district level; mathematics and science kits to schools, visit of students to higher institution and learning enhancement of students are also approved.The Central Government has been consistently pursuing the matter of expeditious recruitment and redeployment of teachers and to implement norms of the RTE Act 2009 with the States and UTs at various forums. Advisories have also been issued to States and UTs from time to time to implement the norms of the RTE Act and for redeployment of teachers to ensure that all school teachers should spend adequate time serving in rural areas through a transparent policy. Further, the Government has initiated the following steps to make school education qualitative:
Shagun portal has been launched to create a repository of best practices in school education and to monitor the implementation of SSA;Swachh Vidyalaya Campaign for the provisions of separate toilets for girls and boys in every school;Swachh Vidyalaya Puraskar was instituted from 2016-17 at District, State and national level as a next step to Swachh Vidyalaya initiative;Padhe Bharat Badhe Bharat was launched in 2014 to ensure that students of classes I & II are able to read with comprehension as well as basic numeracy skills;Rashtriya Avishkar Abhiyan was launched in 2015 to motivate children of the age- group of 6-18 years in study of Science, Mathematics and technology;The Right of Children to Free and Compulsory Education (RTE) Act has been amended in February, 2017 to include reference on class-wise, subject-wise Learning Outcomes to ensure that all children acquire appropriate learning level;Section23 (2) of the RTE Act has been amended in August, 2017, to extend the period of in-service training for untrained elementary teachers to 31st March, 2019 to ensure all teachers acquire minimum qualifications as laid down by the academic authority;
E-pathshala webportal (http://epathshala.gov.in/) and mobile apps (Android, iOS and Windows) have been launched in November 2015 to disseminate e-resources including e-books developed by NCERT, SCERT/ SIEs, State boards etc;Shaala Siddhi is a comprehensive instrument for school evaluation leading to school improvement, which was launched in November, 2015;Kala Utsav programme has been started to promote arts in education by nurturing and showcasing the artistic talent of school students at the secondary stage;An Online Project Monitoring System (PMS), for online managment and monitoring of RMSA has been enabled from August 2014,Distribution of tablets preloaded with relevant e content in Kendriya Vidyalayas has been started on a pilot basis to connect students and their teachers for effective learning; Also, 93 Kendriya Vidyalayas (KVs) have been started during last 3 years and 62 new Navodaya Vidyalas have been sanctioned.Automated Monitoring System at the school level under Mid Day Meal Scheme has been introduced for real time monitoring of the scheme;
if b:(a+c)=4:9 and c:(a+b)=3:7 then find the ratio of a:(b+c)