पढ़ पढ़ कर हो गया है बुरा हाल SSC अब तो लो हमको संभाल https://youtu.be/zfl4Y_3IDgc
:::Gross Fixed Capital Formation:::
Gross Fixed Capital Formation (GFCF) is a net investment concept within national account which measures the net increase in fixed capital. It measures private and public sector investment spent on formation of fixed capital which includes land improvement, construction of roads, railways, dwelling units, commercial buildings, new machinery etc. It must be noted that land purchases and depreciation are not part of GCF.
Significance of GFCF
An increase in gross fixed capital formation signifies increase in investment in fixed assets which further translated into higher rate of economic growth in long run. Generally developing countries devotes higher percentage of GDP to investment for fixed capital.
IMPORTANT ESSAY TOPIC:
Is Farm loan waiver good for the country?
Indian agriculture is often compared to the act of gambling in the monsoon. With the prevailing drought conditions and falling agricultural outputs in certain areas has fuelled the farmer suicides throughout the country. However, the loan waiver scheme provides relief for many families thereby encouraging them to invest in the next crop. But these benefits don’t offer long term economic gain for farmers. Many economic experts feel that the money waived could be used for investing in infrastructure projects which help to eliminate middlemen and help them to reap maximum benefits of their products.
History of farm loan waivers
In 1990, first ever nation wide farm loan waiver was announced and it cost around Rs 10,000 crore. In 2008, Rs 52,000 crore was released by the Indian government as part of the Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS) which was mainly done to remove the financial indebtedness of the farmers. But it was done before the 2009 general election. In 2014, the Andhra Pradesh government announced a farm loan waiver of Rs 40,000 crore and Rs 20,000 crore farm loan waiver was announced in Telangana region. In 2017, Uttar Pradesh announced a farm loan waiver of Rs 36,000 crore. With state government’s move, Maharashtra followed the scheme with a Rs 35,000 crore waiver
Are farm loan waivers really effective?
According to a report, the loan waiver scheme (1990) proved a costly affair for the banks and economy. It was stated after the years after the waiver witnessed a decline in the recovery rates from financial institutions, since it installed belief among farmers believed that they could default with freedom, leading to defaults of such a high scale that it took the banks several years to recover from its impact. In 2008, the CAG audit revealed lapses and errors. It included fake claims, an inclusion of ineligible beneficiaries, huge reimbursement from a lending institution without proper verification. Many occasions, the farmers entitled to receive the benefits were not included in the list of beneficiaries by the lending institutions. Many farmers tend to use the loans for non-agricultural purposes. Besides, loan application receipts or acknowledgements from farmers weren’t properly maintained. Lending institutions like banks were responsible for implementing the scheme and also monitoring of their own work – which is a clear case of conflict of interest. No nodal agencies where appointed for the monitoring the work. Debt waiver/relief certificates were not issued in many cases for eligible beneficiaries.
In 2014, when another loan waiver of a large magnitude called “Runa Mafi”, in 2014 in Andhra Pradesh and the newly formed state of Telangana. This announcement invited several warnings and criticism from the Reserve Bank of India and the several financial experts. While it cost Rs.40,000 crore in Andhra Pradesh, it is expected to cost Rs. 20,000 crore in Telangana was aimed at helping farmers, who suffered in the cyclone Phailin, that severely damaged crops, the complete details of the waiver schemes in the two states are not available. Besides, there isn’t any clarity about the eligibility conditions , extent of crop loss due to the natural calamity. However, neither loan waiver curbed the rising farmer suicides in both the states. The National Crime Records Bureau (NCRB) data shows that while 160 farmers were reported to commit suicide in 2014 in Andhra Pradesh, the number went up to 516 in 2015. Similarly, in Telangana, farmer suicides recorded an increase of 50% in 2015 compared to 2014.
Why farm loans are waived?
In India, agriculture is primarily dependent on monsoon rains. Since most of the farmers aren’t rich, they invest heavily on crops by taking loans. A good shower brings good yields and repayment of the loan. If there isn’t any rains or insufficient market demand, farmers are unable to pay the loan amount or interest. When there is a continuous monsoon failure, farmers are trapped, with no other option, the farmer are forced to commit suicides. So, farm loans waiver is a good step towards curbing the crisis. Besides, many farmers are force to flee from agriculture to find better career elsewhere, which could lead drop in agricultural yields. So in order to avoid such situations, farm loan waiver acts as a good initiative to attract and retain the farmers. Finally, most of the farmers borrow money from moneylenders who charge exorbitant interest rates and get trapped in a very problematic cycle of debt trap. Farm loan schemes and waivers will divert these farmers to borrow money from banks.
Why farm loan waivers are bad for economy?
Loan waiver schemes disturb loan and credit discipline for the any financial system. Though waivers can be an attractive tool for retaining farmer’s interest in agriculture and avoid fatal incidences, it could lead willful defaults among the farmers. If farm loan waivers are done more than twice, farmers will start to wait for the next loan waiver scheme, which is bad for the economy and agriculture. Besides, taxpayers are at a loss, because loans will be waived only with hard earned money of taxpayers. Rich farmers could take advantage of the situations and push to take loans even if there is no need, in the hope of the next loan waiver scheme. This will impact the poor farmers who are genuinely in need of loans for crops.
Conclusion
Loan waiver is not a permanent solution for agriculture until the fundamental problems are solved. Though it is instant temporary relief from debt preventing suicides, it largely failed on many occasions to contribute to farmers’ welfare in the long term. Besides, there is always a question that to what extent this relief measure can help bring farmers out of indebtedness and suffering always remains a question. Since waivers in India are filled with lack of accountability and lack of proper monitoring reduces the effectiveness of the loan waivers. This coupled with the fact that not all the debt is formal, reduces their effectiveness even more. Since most of the working population of India is dependent on agriculture, loan waiver cannot be avoided. But a proper system of accountability and transparency of waiver will alone ensure the effective working of waiver scheme.
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World happiness Report 2019:
Time value of money:
Memory based questions asked in RBI GRADE B Exam in 2017 & 2018:
https://drive.google.com/file/d/1k6YpT-6HL9XnJNCczKJD3Y4PvWDfarlP/view
Global Hunger Index 2018
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Rbi grade b edutap complete study material for phase 1 as well as phase 2 including videos, pdfs, summary sheets of each and every chapter, excellent coverage of ESI and FM with varying level of difficulties Also covers SEBI For RS-4600 Contact or W h at App-8979246356
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SANKALP SCHEME STRIVE SCHEME: OBJECTIVES, FUNDING
The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi, has approved two new World Bank supported schemes of Rs. 6,655 crore – Skills Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) and Skill Strengthening for Industrial Value Enhancement (STRIVE). Let’s understand SANKALP Scheme STRIVE Scheme.
Skills Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) Is Centrally sponsored scheme aims to implement the mandate of the National Skill Development Mission (NSDM). The project will be implemented in mission mode through World Bank support
OBJECTIVES OF SANKALPThe SANKALP program consists of four objectives:
- Strengthened institutional mechanisms at National and State levels to guide planning, delivery and monitoring of market relevant training
- Improved Quality and Market Relevance of SD programs
- Improved access to and completion of skills training for female trainees and other disadvantaged groups
- Expanding skills training through private-public partnerships (PPPs)
The project is funded by three major parts:
- World Bank loan assistance of $ 500Mn (Rs. 3300 crore)
- States’ contribution $100 Million (Rs. 660 crore)
- Industry contribution of $75 Million (Rs. 495 crore)
Skills Strengthening for Industrial Value Enhancement (STRIVE) is a new World Bank funded central sector scheme that has been approved by Expenditure Finance Committee (EFC) in November 2016 for a total cost of Rs. 2200 crore.
OBJECTIVES OF STRIVE SCHEMEThe objectives of the scheme are:
- Improved performance of ITI.
- Increased Capacities of State Governments to support ITIs and Apprenticeship Training
- Improved Teaching and Learning.
- Improved and Broadened Apprenticeship Training.
The basic difference between SANKALP scheme and STRIVE scheme is that SANKALP envisages to get more trainers while STRIVE will incentivize it is to improve overall performance.
PERFORMANCE APPRAISAL: OBJECTIVES, STANDARDS, PROCESS
Performance Appraisal is a control process in which employee’s performance is evaluated against standards. It enables the comparison of actual performance with pre-determined goal and job expectations
MEANING OF PERFORMANCE APPRAISALPerformance appraisal is the systematic evaluation of employees with respect to his performance on the record of his potential for development. It is the process to understand the abilities of a person for further growth and development It attempts at placing on record certain personality and behavioural characteristics of the individual, effectiveness of the job and contribution to the achievement of organizational goals.
OBJECTIVES OF PERFORMANCE APPRAISAL- To meet legal requirements, including those for standardized forms and procedures, and clear and relevant job analysis
- To motivate employees for better performance of task.
- The ultimate objective of the performance appraisal is to enhance accountability and improve standard of practice
- To maintain records in order to determine compensation packages, wage structure, salaries etc.
- To identify the strengths and weaknesses of employees to place right men on right job.
- To maintain and assess the potential of a person for further growth and development.
- To provide a feedback to employees regarding their performance and related status.
- To provide a feedback to employees regarding their performance and related status.
- It serves as a basis for influencing working habits of the employees.
- To review and retain the promotional and other training programmes.
The important sources of standards for performance evaluation are:
- Job analysis: It is the procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it
- Job description: It is a written report outlining duties, responsibilities and conditions of the work assignment. It is a description of job and not of the person who happens to hold the job
- Job evaluation: It is the process of analyzing and assessing the various jobs systematically to ascertain their relative worth in an organization.
There are six steps involved in the process of performance appraisal:
- Establishing Performance Standards: The first step in the process of performance appraisal is the setting up of the standards which will be used to compare the actual performance of the employees against the standards set. The standards set should be clear, easily understandable and measurable.
- Communicating the Standards: Once performance standards are set, it is the responsibility of the management to communicate the standards to all the employees of the Organization. The employees should be informed and the standards should be clearly explained to the employees. This will help them to understand their roles and to know what exactly is expected from them
- Measuring the Actual Performance: It is a continuous process which involves monitoring the performance throughout the year
- Comparing the Actual with the Desired Performance: The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance
- Discussing Results: The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better
- Decision Making: The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.
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Options:
Option is Right to buy or sell an agreed quantity of currency or commodity
without obligation to do so. The buyer will exercise the option if market
price is in favor or otherwise option may be allowed to lapse.
Call Option
Right to buy at fixed price on or before fixed date.
Put Option
Right to sell at fixed price on or before fixed date.
Final day on which it expires is called maturity.
CALL OPTION;
If Strike price is below the spot price, the option is In the money.
If Strike price is equal to the spot price, the option is At the money.
If Strike price is above the spot price, the option is Out of money.
PUT OPTION
If Strike price is more the spot price, the option is In the money.
If Strike price is equal to the spot price, the option is At the money.
If Strike price is less than spot price, the option is Out of the money.
American Option
Option can be exercised on any day before expiry.
European Option
Option can be exercised on maturity only.
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#RBI GK
Hello! Monthly Current Affairs Magazine – SPOTLIGHT is Out.
Download the Monthly Current Affairs Magazine – SPOTLIGHT of May 2019.
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ONE-TIME RESTRUCTURING OF MSME
Considering the importance of MSMEs in the Indian economy, it is considered necessary at this juncture to take certain measures for creating an enabling environment for the sector.
With a view to facilitate meaningful restructuring of MSME accounts that have become stressed, RBI has been decided to permit a one-time restructuring of MSME existing loans classified as ‘standard.
RBI has decided to permit a one-time restructuring of existing loans to MSMEs classified as ‘standard’ without a downgrade in the asset classification, subject to the following conditions:
- The aggregate exposure, including non-fund based facilities, of banks and NBFCs to the borrower does not exceed Rs 250 million as on January 1, 2019.
- The borrower’s account is in default but is a ‘standard asset’ as on January 1, 2019 and continues to be classified as a ‘standard asset’ till the date of implementation of the restructuring.
- The borrowing entity is GST-registered on the date of implementation of the restructuring. However, this condition will not apply to MSMEs that are exempt from GST-registration.
- The restructuring of the borrower account is implemented on or before March 31, 2020. A restructuring would be treated as implemented if the following conditions are met:
- All related documentation, including execution of necessary agreements between lenders and borrower / creation of security charge / perfection of securities are completed by all lenders; and
- The new capital structure and / or changes in the terms and conditions of the existing loans get duly reflected in the books of all the lenders and the borrower.
- A provision of 5% in addition to the provisions already held, shall be made in respect of accounts restructured under these instructions.
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