NABARD & Its Role

NABARD & Its Role

With growing modernization of agriculture, during post-green revolution period, the requirement of agricultural credit has increased further in recent years.

Agricultural credit is one of the most fundamental involvement and contribution for conducting all agricultural development programmes. In India, there is an enormous need for proper agricultural credit as the economic conditions of Indian farmers is getting deteriorated day by day.

Currently speaking, the long term and short term credit needs of these institutions are also being met by National Bank for Agricultural and Rural Development (NABARD). It is the evolution of agricultural finance. It has the objective of promoting the health and the strength of the credit institutions which are in the front position of the delivery system which includes cooperatives, commercial banks and regional rural bank. It is, in brief, an institution for the purpose of refinance; with the complementary work of directing, inspecting and supervising the credit- flows for agricultural and rural development.

Besides providing finance to credit institutions, NABARD is providing innovations in regard to formulation of schemes, monitoring of implementation, evaluation of results and evolution of suitable supporting structures of all kinds of agricultural activities.

It is performing the various functions assumed by it smoothly and efficiently. A rural infrastructural development fund (RIDF) was established under NABARD in 1995-96. Every year the resources of RIDF have been increased to finance rural infrastructure development project by States. The outstanding refinance from NABARD by State Co-operative Banks, RRBs and State Governments was Rs. 7,075 crore as at end June 2002, which was a slightly higher than Rs. 6,857 crore as at end June 2001. 

The concept of Farm mechanisation got the highest amount of assistance and the second place went to minor irrigation. The rest of the amount was distributed for sectors like forestation/Plantations, Land Development, sheep-rearing, poultry farming, dairy farming etc. 

The National Bank has enthusiastically continued its efforts for promoting investments in the agricultural sector in the less developed/under banked states. U.P., Bihar, M.P., Rajasthan and Orissa, have been the biggest beneficiaries. 

Thus NABARD is taking the necessary steps to revitalise and rejuvenate the rural economy of India by developing agriculture, small scale and cottage industries and trading activities in all possible ways.

National Bank for Agricultural and Rural and Development (NABARD) is a Development Bank. It’s prime objective and directive is to provide and regulate credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas. This objective comes with an outlook to promote integrated rural development and also securing prosperity of rural areas, and is therefore is connected with matters related and corresponding with it to. 

On July, 1982, NABARD was established on the recommendations of Shivaraman Committee, by an act of Parliament to implement the National Bank for Agriculture and Rural Development Act 1981.

It replaced the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC). NABARD is one of the leading agencies which provide credit in rural areas. Furthermore, RBI sold its stake in NABARD to the Government of India, which now accounts for 99% stake.

In 1982, NABARD was set up, and was primarily committed to Rural Prosperity through intervention of credit and developmental activities.  

It has the Paid-up Capital Rs.3000 crore against the Authorised Capital of Rs.5000 crore.

It may be noted that NABARD was set up with an initial capital of Rs.100 crore. Following to the revision in the composition of share capital between Government of India and RBI, the paid up capital as on 31 March 2013, stood at  4000 crore with Government of India holding  3,980 crore (99.50%) and Reserve Bank of India 20.00 crore (0.50%).

NABARD operates through Head Office at Mumbai, and has about 30 Regional Offices in State Capitals & 391 District Offices. 

As a facilitator for rural prosperity, NABARD is assigned with objectives like

1. To provide refinance to lending institutions in rural areas. 

2. To bring about or promote institutional development.

3. To evaluate, monitor and inspect the client banks

Besides playing these fundamental roles, NABARD also play pivotal roles as:

1. NABARD acts as a coordinator in the operations of rural credit institutions.

2. It extends assistance to the government, the Reserve Bank of India and other organizations in matters which are related to the rural development.

3. It offers training and research facilities for banks, cooperatives and organizations working in the field of rural development.

4. It helps the state governments in reaching their targets of providing assistance to eligible institutions in agriculture and rural development.

5. It also acts as regulator for cooperative banks and RRBs

Budget proposals 2014 

Mr. HK Bhanwala, chairman NABARD, welcomed Budget proposals for agricultural and rural farming sectors and hoped that it will strengthen rural economy.  He further showed his pleasure in measures like allotting additional resources under the rural infrastructure development fund (RIDF).

 In another statement, NABARD chairman specifically pointed to the Rs 200-crore allocation to producer organisations, and welcomed it as the need of the hour. He also welcomed the Rs 5,000-crore allocation for long-term farm credit, and hoped that it will make farming more productive incoming years. There is also a move to form 5 lakh more joint liability groups of farmers as they will shelter many landless farmers. 

The budget also laid stress on allocating Rs 5,000 crore for the warehousing infrastructure fund for the storage of grains through the proposals on warehousing, as a strong measure of food security. To avoid high cost of borrowing, Mr. Bhanwala also welcomed the ten-fold increase in the corpus under the short term cooperative rural credit (STCRC)-refinance fund to Rs 50,000 crore.

The landmarks in NABARD's activities are as follows:-

1. Business Operations:

a. Production Credit: During 2012-13, NABARD sanctioned a sum up of Rs. 66,418 crore short term loans to Cooperative Banks and Regional Rural Banks (RRBs), against which, the maximum outstanding was 65,176 crore.

b. Investment Credit : On 31 March 2013, Investment Credit for capital formation in agriculture & allied sectors, non-farm sector activities and services sector to commercial banks, RRBs and co-operative banks reached a level of 17,674.29 crore, recording an increase of 14.6 per cent, over the previous year.

c. Rural Infrastructure Development Fund (RIDF):During 2012-13, it was through the Rural Infrastructure Development Fund (RIDF) 16,292.26 crore was paid out. On 31 March 2013, a cumulative amount of 1,62,083 crore has been sanctioned for 5.08 lakh projects which covered irrigation, rural roads and bridges, health and education, soil conservation, drinking water schemes, flood protection, forest management etc.

2. New Business Initiatives:

a. NABARD Infrastructure Development Assistance (NIDA): NABARD has set up NIDA, which implies to a new line of credit support for funding of rural infrastructure projects. During the year 2012-13, the sanctions under NIDA was 2,818.46 crore and disbursement was about 859.70 crore.

b. Producers Organisations Development Fund (PODF): In its effort to support Producer’s Organizations in a wide-ranging manner, as an assistance, NABARD sanctioned an amount of 55.95 crore out of Producer Organization Development Fund (PODF) to 34 PO’s during 2012-13. The disbursement was approximately 29.18 crore and covered major activities like dairy, fishery, marketing infrastructure and agro processing infrastructure.

c. Direct refinance assistance to CCBs for short term multipurpose credit: It was conceived and additional line of finance for CCBs and worked under the recommendations of the “Task Force on Revival of Short Term Rural Cooperative Credit Structure”, which enables the latter to raise financial resources other than from StCBs. During 2012-13, refinance assistance aggregating 3,385 crore was sanctioned to 42 CCBs and three StCBs and disbursement stood at 2,363.45 crore.

d. Support to develop PACS as Multi Service Centres: To develop PACS (Primary Agricultural Credit Societies) so as to serve as “one Stop Shop” unit for meeting the various requirements of the farmers, NABARD extended financial support to StCBs/CCBs/PACS.  During 2012-13, about 747 PACS were supported with sanction of 141.17 crore and the disbursements there against stood at 48.84 core. It provided desired assistance for establishment of agro service, processing, storage and information centres, etc.

e. NABARD Initiated Project on Core Banking Solutions (CBS) in Co-operatives : To be compatible with other banks for business and growth, Core Banking Solution (CBS), Co-operatives are being brought to an advanced and developed technology platform. This programme took giant developments with as much as 5,543 branches of 163 banks across 10 States joining the platform in the first phase and also 42 banks joining in the second phase, and totaling up to 7,088 branches of 205 StCBs and CCBs across 16 States and three UTs came into the umbrella of the programme as on 31 March 2013.

3. Development Initiatives:

a. Watershed Development Fund (WDF): On 31 March 2013, the collective number of watershed projects sanctioned under Watershed Development Fund (WDF) stood at 586 in 16 States which covered an area of 5.40 lakh ha with total commitment (loan and grant component) of 306.36 crore.

b. Farm Innovation and Promotion Fund (FIPF) and Farmers’ Technology Transfer Fund (FTTF): To support technology transfer in farm sector and to back up innovative ventures, the funds were created out of the operating profits of NABARD. On March 2013, the corpus was estimated to be at 50.00 crore and 61.21 crore respectively. During 2012-13, the grant assistance of 9.90 crore and 39.79 crore, respectively, were disbursed for various interventions under the programme.

c. Farmers’ Clubs: With the launching of 24,802 new Farmers’ Clubs during the year, the number of clubs reached to about 1.27 lakh, on 31 March 2013.

d. Umbrella Programme on Natural Resource Management (UPNRM): The basic objective of UPNRM was to improve and enhance rural livelihoods by supporting community-managed sustainable natural resource management projects. During 2012-13, the assistance of about 174.30 crore was sanctioned and it went on to cumulative sanction of 386.92 crore as at the end of March 2013. The cumulative disbursement under the programme was amounted to 217.57 crore, which included 207.23 crore as loan and 10.34 crore as grant.

e. Tribal Development Fund (TDF): During the year 2012-13, there was financial assistance of 224.26 crore which was sanctioned for 69 projects which benefited almost 53,700 tribal families in 14 States. On March 31, 2013, the cumulative sanction was about 1,432 crore, which covered around 3.80 lakh families in 484 projects across 26 States/UTs.

f. Financial Inclusion Fund (FIF) and the Financial Inclusion Technology Fund (FITF): On March 2013, the cumulative sanctions under FIF and FITF were around 181.64 crore and 365.49 crore, respectively against which disbursements were about 69.77 crore and 201.30 crore, respectively.

g. SHG-Bank Linkage Programme: On 31 March 2013, under the micro-finance programme, there were more than 73.18 lakh savings linked Self Help Groups (SHG) and more than 44.51 lakh credit-linked SHGs covering over 10.3 crore poor households. During 2012-13, NABARD carried forward its guiding role in the microfinance programme by taking a congregation of new initiatives and also consolidating some of the already operational interventions.

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All About State Bank of India- Power Learning

All About State Bank of India- Power Learning

State Bank of India (SBI), is one of the big four banks of India. It is a multinational banking and financial services company based in India.

SBI is a government-owned corporation with its headquarters in Mumbai, Maharashtra and had assets of US $388 billion and 17,000 branches, including 190 foreign offices, as of December 2013. As far as assets are concerned, SBI is the largest banking and financial services company in India. Among leading commercial banks, State Bank of India is a regional banking giant and has 20% market share in deposits and loans. The State Bank of India and all its fiveassociate banks (State Bank of Bikaner and Jaipur, State Bank of Hyderabad,State Bank of Mysore, State Bank of Patiala, State Bank of Travancore) are identified by the same blue keyhole logo. On October 7, 2013, Arundhati Bhattacharya became the first woman to be appointed Chairperson of the bank.

On technology front, on July 1, 2014, the banking industry in India took a giant leap, with the launch of ‘sbiINTOUCH’, a techno-savvy effort by State Bank of India (SBI), India’s largest banking group. Following an awe-inspiring rise in mobile phone usage and internet-savvy customer base in India, this attempt will certainly deliver encouraging banking solutions to every consumer. There are six digital branches nationwide (Mumbai, Delhi, Bengaluru, Chennai and Ahmedabad), which are equipped well with the interactive wall and table displays, remote experts who can be interacted with video-conferencing. To deliver a strong customer-friendly base, there are multi-functional kiosks that will be providing services like instant account opening with personalized debit cards, instant in-principle approvals for home, car or education loans etc.

SBI provides a wide-range of banking products and solutions through its network of branches in India and overseas, which also includes products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal Offices that are located at important cities throughout India. As of 31st March, 2013, SBI has 14,816 branches in India, of which 9,851 (66%) were in Rural and Semi-urban areas. In FY 2012-13, the revenue of SBI was around INR 200,560 Crores (US$ 36.9 billion), out of which domestic operations contributed to 95.35% of revenue and domestic operations contributed to 88.37% of total profits for the same financial year. On international front, as of June 2013, SBI had 180 overseas offices spread over 34 countries and has branches of the parent in Moscow, Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo. SBI has also offshore banking units in the Bahamas, Bahrain, and Singapore, and representative offices in Bhutan and Cape Town and has an ADB in Boston, USA.

Associate banks

SBI has five associate banks and all of them use the State Bank of India logo, which is a blue circle. All of them use, the "State Bank of" name, followed by the regional headquarters' name. 

State Bank of Bikaner & Jaipur (SBBJ) - It is a partner bank of State Bank of India and was started in 2012. SBBJ had 1,037 banks, which are primarily placed in the state of Rajasthan. The rest of its branches are placed in the major commercial centers of India. SBBJ was formally established in 1963 when two banks, State Bank of Bikaner (created in 1944) and State Bank of Jaipur (built in 1943) were merged together. These two banks were subsidiaries of the State Bank of India under the State Bank of India (Subsidiary Bank) Act, 1959.

State Bank of Hyderabad (SBH) - It is a partner bank of State Bank of India and was established in 1941 as Hyderabad State Bank.

Ever since 1956, SBH has been a subsidiary of State Bank of India and now is State Bank's biggest partner bank. SBH head office is located at Gunfoundry Area, in Hyderabad, India and has 1,500 bank locations and around 12,800 workers. The holdings of SBH are in abundance of INR 767 billion and have around 1000 branches in Andhra Pradesh alone, making it the third biggest organisation in the state.

State Bank of Mysore (SBM) - Under the support of then Maharaja Krishna Raja Wadiyar IV of Mysore, SBM was created in the year 1913 as the Bank of Mysore Ltd. and was supported by Bharat Ratna Sir M Visvesvaraya.

In year 1953, Mysore Bank was delegated as an organizer and facilitator of Reserve Bank of India to expedite government business and treasury operations and in March 1960, it turned into a subsidiary of the State Bank of India under the State Bank of India (Subsidiary Banks) Act 1959. Currently SBM is an associate under State Bank Group and the State Bank of India holds 92.33 per cent of its shares. SBM has around 976 branches and approximately 10627 workforces. The bank has provincial locations in Bengaluru, Mysore, Mangalore, Mandya, Hassan, Shimoga, Davangere, Bellary, Tumkur, Kolar, Chennai, Coimbatore, Hyderabad, Mumbai and New Delhi. In FY 2013-14, SBM turnover was around $19 billion, recording a profit of about US$ 46 million and has a record of continuous profits since 1913.

State Bank of Patiala (SBP) - It was initially named Patiala State Bank and was established on November 17, 1917. This bank was created by Maharaja Bhupinder Singh, Maharaja of the regal state of Patiala of undivided India.  The capabilities of the bank incorporated the ordinary capacities of business banks and also added a few specific functions required by the royal state of Patiala. After India's freedom in year 1947, the bank was made a completely owned subsidiary of the government of Punjab. On April 1, 1960, SBP was conferred the status of an associate bank of the State Bank Group. Currently, the State Bank of Patiala has a system of 1035 administration outlets, which includes around 1010 branches, in most urban areas of India, however, the greater part of the extensions are located in the Indian states of Punjab, Haryana, Himachal Pradesh, Rajasthan, Madhya Pradesh, Jammu & Kashmir, Delhi and Gujarat.

State Bank of Travancore (SBT) – It is a subsidiary of the State Bank Group and also a major bank of Kerala, India, where it has 777 locations, which accounts to 75 per cent of bank's aggregate system.

According to reports, SBT has a system in excess of 1036 branches which are spread over 16 Indian states. SBT has arrangements to open around 200 extensions to take its spread to 1200. It has opened a “Platinum Point Personal” service office at Banjara Hills, Hyderabad. SBT has additionally opened around 21 Specialized Gold Point Branches to cater to 14 areas in Kerala and one in Kanyakumari locale of Tamil Nadu to encourage quick and simple dispensing of Gold Loans for the customers.

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All About Reserve Bank Of India RBI & Its Functions

All About Reserve Bank Of India(RBI) & Its Functions

INTRODUCTION

Reserve Bank of India (RBI) is India's central bank and executes multiple functions which include overseeing monetary policy, issuing currency, managing foreign exchange, working as a bank of government and as banker of scheduled commercial banks, etc. The main feature of RBI is to work for overall economic growth of the country.

In year 1935, the Reserve Bank of India was established with the provision of Reserve Bank of India Act, 1934.

In year 1949, RBI was nationalized and since then is fully owned by Government of India (GoI). The preamble of the Reserve Bank of India describes it main functions as:

"to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage."

Main Functions of RBI

Monetary Authority

Monetary authority or monetary policy is referred to the use of instruments under RBI control to regulate availability, cost and user of money and credit. The central bank does this to maintain pricing stability, low & stable inflation but also promote economic growth of country.

Issuer of Currency

Reserve bank of India is the solitary body who is authorized to issue currency in India. The coins are minted by GoI, while the RBI works as an agent of GoI for the distribution and handling of coins. RBI also works to prevent forging and faking of currency by regularly upgrading security features of currency. 

Banker and Debt Manager to Government

RBI serves the purpose of carrying out financial transaction effectively for Government of India (Gol). RBI works as banker to Government of India and also maintains its accounts, receive payments into & make payments out of these accounts. 

Banker to Banks

Furthermore, RBI works as an effective banker to all the scheduled commercial banks and all the banks in India maintain its accounts with RBI. This helps them in clearing and settling interbank transactions and customer transactions smoothly and swiftly. 

Regulator of the Banking System

RBI has the accountability and charge of regulating the nation's financial system. As a regulator and supervisor of Indian banking system, RBI safeguards and guarantees the financial stability and public confidence in banking system. 

Manager of Foreign Exchange

RBI pays a pivotal role in regulating and managing key segment of foreign exchange market and also a role to play in regulating and managing this segment. It is because there is increased integration of the Indian economy with the global economy with has arisen from the greater trade and capital flows. 

Regulator and Supervisor of the Payment and Settlement Systems

The payment and settlement systems play a significant role in improving overall economic efficiency. As per the Payment and Settlement Systems Act of 2007 (PSS Act), the Reserve Bank of India has oversight authority, which includes regulation and supervision, for the payment and settlement systems in the country. 

Developmental Role

RBI plays critical role in building country's financial structure. The most important tools in this endeavor include Priority sector lending such as Agriculture, micro and small enterprise (MSE), housing and education.  

Monetary Policy

Monetary Policy is referred to the process which is employed by Central bank of the country to control availability and cost of currency. In this way, it helps in keeping Inflation and Deflation low and stable. The central bank accomplishes this by using various tools which can be broadly categorized in two parts as Quantitative & Qualitative tools.

Quantitative Tools

Quantitative tools are referred to reserve ratios, Open market operation and various interest rates.

Reserve Ratio

Reserve ratios can be defined as the share of net demand and time liabilities (NDTL) which banks have to keep separately ensuring that they have sufficient cash to cover customer withdrawals. There are two types of reserve ratios.

Statutory Liquidity Ratio (SLR)

Statutory Liquidity Ratio (SLR) can be defined as the share of net demand and time liabilities that banks must maintain in safe and liquid assets, such as government securities, cash and gold. On 3 June, 2014, RBI has cut the SLR by 50 basis points to 22.5%. For instance, if a bank has Rupees 200 Crore of NDTL then it has to keep Rs. 45 Crore in liquid assets. 

Cash Reserve Ratio (CRR)

Cash reserve Ratio (CRR) can be defined as the amount of funds that the banks are required to park with the RBI. If the central bank decides to increase the CRR, the available amount with the banks will be falling down. 

Open Market Operation (OMO)

Open market operation is the active process of buying and selling of government securities in open market which helps in controlling the supply of money in banking system. Whenever there is superfluous supply of money, the central bank sells government securities and in this way it sucks out excess liquidity. Likewise, when liquidity is constricted, RBI will buy government securities and in that way injects money supply.

Policy Rates

Policy rates are defined as various interest rates which RBI uses to control money supply in India. Repo Rate is often referred to as fundamental policy rate in India as all the other rates can be derived from repo rate.

Bank Rate

The bank rate is the interest rate when banks want to borrow long term funds from RBI. The current rate is set at 9 per cent and bank rate is not used to control money supply these days.

Liquidity Adjustment Facility (LAF)

In year 2000, Liquidity Adjustment facility was introduced. It is a facility which is provided by the Reserve Bank of India. This facility helps in scheduling commercial banks to avail of liquidity in case of need or to park excess funds with the RBI on an overnight basis against the collateral of Government securities. RBI agree to take application for a minimum amount of Rs.5 crore and in multiples of Rs. 5 crore thereafter. 

Repo Rate

Repo Rate is a rate at which the RBI lends money to commercial banks. Repo rate is an instrument of monetary policy. If banks run short of funds they can borrow from the RBI. To restrain and curtail inflation, RBI increases Repo rate which will make borrowing costly for banks. 

Reverse Repo Rate

Reverse Repo rate is the rate at which the RBI borrows money from the commercial banks. As their money is in safe hands with a good interest, Banks are always happy to lend money to the RBI. As the name suggest, reverse repo rate is just the opposite of repo rate. 

IMPACT OF THESE RATES ON THE BANKS

The Monetary Policy Department of RBI has the power to formulate and also to implement the Reserve Bank’s monetary policy. Its main objectives comprises of price stability, ensuring adequate flow of credit to productive sectors of the economy to support economic growth, and maintaining financial stability. According to the prevailing macroeconomic conditions and outlook, the relative emphasis is placed on a particular objective at a particular point in time, as per the policy statements of RBI. 

The core activities of the this Department include formulating monetary policy measures, which include policies on CRR, SLR, repo and reverse repo rates under the LAF, export credit refinance, market stabilization scheme (MSS) and open market operations (OMOs). It also formulates policy on interest rates of the banking sector. The activities also include monitoring maintenance of CRR and SLR and also monitoring, analyzing and dissemination of data on interest rates in the banking sector.

Repo Rate, Reverse Repo Rate, Cash Reserve ratio (CRR) and the Statutory Liquidity Ratio (SLR) are considered to be the independent variables. The dependent variable is the interest rate offered by banks. From the correlation and regression analysis, it has been understood that the repo rate is found to be the most influencing factor, among the five factors, on banks to determine their interest rates. 

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Black Money: A Bane for Indian Economy

Black Money: A Bane for Indian Economy

In simple term in   India context  by  black money we mean funds or  income on which tax is evaded through misrepresented transactions which are carried in cash in order to  avoid banking channels.The government defines black money as assets that haven’t been reported to authorities at the time of their generation or disclosed at any point during their possession.

The total amount of black money deposited in foreign banks by Indians is still  unknown. there are contradictory reports in this regard .Some reports suggest  a total amount of  US$1.4 trillion are stashed in Switzerland while  some other reports  including those  by Swiss Bankers Association and the Government of Switzerland refute this  calling these  claims  false and fabricated. Their data  and statistics  tell  entirely a different tale . As per their version of truth  the total amount held by  in all Swiss banks by citizens of India stand at at  just  US $2 billion.

India ranked third in the world for money illegally moved overseas in 2011. The Global Financial Integrity Foundation presented the analysis of a report on illicit financial flows from developing countries before the SIT.

It estimated that India stands at number 5 among 142 countries in illicit financial flows and pegged the average flow of illegal funds in India at US $ 34,393 million.As per the report,  over the past 12 years, a total US $ 3,43,922 million dollars of illegal funds have been routed through India. High-net-worth individuals and private companies are the primary drivers of illicit flows, the group said in a 2010 report. Lost taxes Asia’s third-largest economy loses an estimated Rs.60 trillion each year from its formal sector, such as banks, and almost Rs.6 trillion of that is moved out of the country.According to White Paper on Black Money in India report, published in May 2012, Swiss National Bank estimates that the total amount of deposits in all Swiss banks, at the end of 2010, by citizens of India were CHF 1.95 billion (INR 92.95 billion, US$2.1 billion). This amount is about 700 fold less than the alleged $1.4 trillion in some media reports.

After formal inquiries and tallying data provided by banking officials outside India, the Government of India claimed in May 2012 that the deposits of Indians in Swiss banks constitute only 0.13 per cent of the total bank deposits of citizens of all countries. Further, the share of Indians in the total bank deposits of citizens of all countries in Swiss banks has reduced from 0.29 per cent in 2006 to 0.13 per cent in 2010.Estimates about the amount of black money vary widely. Indians had moved $644 billion to tax havens as of 2011, according to data from Global Financial Integrity.  Bharatiya Janata Party (BJP) said in a 2011 report that Indians had $250 billion, or 20% of the previous year’s gross domestic product (GDP), hiding in Switzerland alone.

Within 24 hours of his 26 May inauguration, newly elected Modi constituted  an investigative team of former judges and current regulators under the chairmaship of Justice M B Shah  to find the concealed assets, known as black money, and bring them back.

At stake is what’s estimated to be as much as $2 trillion, more than India’s annual gross domestic product (GDP) on 27 October 2014, Indian Government submitted name of three people in an affidavit to the Supreme Court who have black money account in foreign countries. But on the very next day, Supreme Court of India ordered central Government to reveal all the names of black money account holders .Following the order, Government of India submitted the names of 627 people in the Supreme Court of India in a sealed envelope on 29 October 2014.Let us briefly discuss double taxation agreements which  is about declared (white) incomes of entities so that tax may be levied in one or the other country and not in both countries . Black income is not revealed in either of the two countries so there is no question of double taxation. Further, this data would not be available to either of the two countries to be exchanged. Till date, no data has been supplied to India by any of the countries with which this kind of treaty  has been signed.

To conclude the debate and discussion on black money is on and special investigation  team constituted on the order of Apex  Court is seized with matter. But there are   technicalities and complexities  involved in   reaching  to the bottom  as this  issue has  wider international ramifications   intertwined  with so many international  economic and financial factors  such as the  major treaties  of  double taxation avoidance   signed between india and other countries .it may take  a bit longer time  than we expected  as the issue is not  as simple as it seemed to be. Till then we should patiently keep   our fingers crossed.

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Power Learning Magazine

Power Learning Magazine

Power Learning is a power packed magazine that caters to the students who are preparing for various competitive examinations like Bank PO/Clerk, Railways, TETs, Various PSCs and UPSC, SSC andother examinations. News Diary is a special column that gives the students dates of the recent events occurred in the form of a diary. 

The Power Learning magazine comes with various sections like General Awareness that gives the students idea about the latest happenings. 

The General Awareness section gives detailed news in many sections like National, International, Sports, State, Science and Technology, Miscellaneous. It also has additional sections of news that gives an insight into the latest reports, surveys being done, summits that have just been held, awards and honors being bestowed, appointments and resignations and famous persons and places in news. The magazine also gives expected questions on the subjects like Quantitative Aptitude, Reasoning Ability, English Language, Banking Awareness, Computer and Marketing and Hindi(in the Hindi Magazine). 

Fully solved Multiple Choice Questions are given according to the latest syllabus of the examination. Every month some or the other topic is covered, so as the student can have sufficient matter on a certain topic. Many a times if a certain topic is lengthy, then it is covered in the next issue. Simple tricks are also given in order to help the students prepare well. Different types of Banking terms, Financial Inclusions, Current Affairs, Certain Policies of the Government, Schemes launched and many more topics are included to help the student prepare in a better manner. 

The magazine gives fully solved Question Papers of the recently held examinations, in order to give an idea to the students about the examination pattern. Fully solved Model Question Papers of the upcoming examinations are also there, which help the students to prepare for the examinations that they are going to appear for Articles on the Economic Issues and latest happenings are also there. Special Add on section is there that gives more information in a concrete form especially on the General Awareness section. Strategy on how should a student prepare for a certain examination is also given, which also has the Blue-Print of the expected examination, in order to help the student prepare accordingly. We have a special column for the students who come now become toppers. 

The toppers of different examinations share their views, their plans and strategies on how they studied and cleared the examinations. They also share their success stories which in turn can motivate the other students and they can also clear the examinations with flying colors. All in all the magazine, though is a young effort but is a one step success center for the students who want to prepare for the various competitive examinations. 

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