Friday 21 June 2019

RRB NTPC Study Plan daily to get quizzes, notes

RRB NTPC Stage - 1 Examination

Time Table for NTPC
Time
Subject
6 AM – 8 AM
General Awareness
8AM – 9 AM
Breakfast
9AM – 12 PM
Quantitative Aptitude
12 PM -1 PM
Break
1 PM – 2 PM
Lunch
2 PM – 3:30 PM
NAP
4PM – 6 PM
Reasoning
6 PM – 7PM
Break
7PM – 9PM
Mock Test
9PM – 10 PM
Dinner
10 Pm – 11 :20 PM
Revise Whole Day

On Every Sunday, Revise the whole Week

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Saturday 17 June 2017

Economic reform in India since 1991.

Economic reforms refers to the changes introduced by the Government to bring an improvement in the economy of the country.
Economic reforms refers to the introduction of innovative policies such as eliminating the market barriers, encouraging economic participation from private sector, reducing the fiscal deficit, increasing exports and reducing imports, etc. for increasing the growth rate of the economy.
The Indian Government has introduced many Economic Reforms in India since 1991. During 1990-91, India had to face various economic problems. The massive deficiency in foreign trade balance was expanding further. Since 1987-88 till 1990-91 it was increasing in such a rapid scale that by the end of 1990-91 the amount of this deficit balance became 10,644 crores of rupees.
At the same time the foreign exchange stock was also decreasing. In 1990 and 1991 the government of India had to take huge amount of loan from the IMF as compensatory financial facility. Even by mortgaging 46 tons of gold it had taken short-term foreign loan from the Bank of England.
At the same time, India was also suffering from inflation, the rate of which was 12% by 1991. The reasons of that inflation were the increase in the procurement price of the agricultural products for distribution, the increase in the amount of monetized deficit in the budget, increase of import cost and decrease in the rate of currency exchange and Administered price like. Thus she was facing trade deficit as well as Fiscal Deficit.


There were a large number of events that accumulated simultaneously that led to economic crises of 1991. In 1991, major factors which led to the downfall of the Indian Economy were as follows:
  • Collapse of Soviet Union
  • The Gulf War
  • Political Uncertainty
  • External Macro Imbalance
  • Grave External Payment Crises
  • Iraq's annexation of Kuwait
  • Problem with Public Finance
 We must remember that inflation was in double digits and our foreign exchange reserves had reached their lowest levels, the export market to Iraq and USSR had disappeared. In order to deal with the immediate crises, the following steps were taken:-
  1. The government leased 20 tonnes of gold to the State bank of India, which in turn entered into the sale transaction with a re-purchase option in the international market. This transaction was worth 200 million $.
  2. Gold was sent in four installments to the Bank of England. Total gold sent was 47 tonnes. A total amount of 405 million $ was raised from the Bank of England.
  3. The government entered into a loan agreement with the World Bank and Asian Development Bank.
  4. The Indian government devalued/ depreciated the rupee by nearly 18% on July 1 and July 3, 1991 in two instalments. The immediate impact of devaluation was to improve incentives to export and an increased disincentive towards imports.
  5. A fiscal monetary policy was put in place to control inflation. Cash margins on imports were increased from 50% to 133% and further to 200% by April 1991. The Reserve Bank of India (RBI) imposed a surcharge of 25% on bank credit for imports. Import of capital goods was only allowed against foreign lines of credit. This was done to discourage to imports as imports became more expensive.
 To get relief from such economic problem the government of India had only two ways before it:
  1. To take foreign debt and to create favorable conditions within the country for increasing the flow of foreign exchange and also to increase the volume of export.
  2. The other was to establish fiscal discipline within the country and to make structural adjustment for the purpose.
Hence the government of India had to introduce a package of reforms which included:
  1. To liberalize the industrial policy of the government and to invite foreign investment by privatization of industries and abolishing the license system as a part of that liberalization.
  2. Automatic approval for Foreign Direct Investment (FDI) was introduced for many industrial sectors.
  3. To make the import-export policy of the country more liberal and so that the export of Indian goods may become more easy and the necessary raw materials and instruments for both industrial development and production of exportable commodities may be imported and also to facilitate free trade by reducing the import duty.
  4. To decrease the value of money in terms of dollar.
  5. To take huge amount of foreign debt from the IMF and the world Bank for rejuvenating the economic condition of the country and to introduce the structural adjustment in the economic condition of the country as a pre-condition of that debt.
  6. To reform the banking system and the tax structure of the country.
  7. To establish market economy by withdrawing and restricting government interference on investment.
  8. For several industries, the monopoly of public sector came to an end.
  9. To encourage the private sector to make investment in large scale industries.
The main objectives of the new fiscal policy are, however, to establish economic structural adjustment at the first stage and then to establish market economy by removing all controls and restrictions on it. There are two phases in the structural adjustment phase:
  1. The stabilization phase where all government expenditures are reduced and the banks are restricted on creating debt.
  2. The second phase is the structural adjustment phase where the production of exportable good and the alternative of import goods are increased and at the same time reducing governmental interference in industry, the management skill and productive capacity of the industries are increased through privatization.
Thus, the new fiscal policy has introduced three significant things Deregulation, Privatization and Exit Policy. Excepting 15 important industries all other industries have been made free from license system. To encourage foreign investment its highest limit has been increased up to 51%. Thirty-eight (38) industries have been made open for foreign investment like the Metal industry, Food Processing industry, Hotel and tourism industry etc. Exit Policy has been introduced in the industries which are running at a loss with surplus staff and the sick industries are scheduled to be closed.
The Economic liberalization have helped India to grow at faster pace. India is now considered one of the major economy of Asia. The Foreign investments in India have increased over the years. Many multinational companies have set-up their offices in India. The per-capita GDP of India have increased, which is a sign of growth and development.
India has emerged as a leading exporter of services, software and information-technology products. Many companies such as Wipro, TCS, HCL Technologies, Tech Mahindra have worldwide fame.
Thus the new economic policy is taking India towards liberal economy or market economy. It has relieved India much of her hardship that she faced in 1990-91.
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    ALL ABOUT NBFC'S


    About the term NBFC:
    A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit fund business.
    Difference between BANK & NBFC:
    NBFCs lend and make investments and hence their activities are akin to that of banks; however there are a few differences as given below:
    i. NBFC cannot accept demand deposits;
    ii. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself;
    iii. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.
    Different types/categories of NBFCs registered with RBI:
    NBFCs are categorized
    a) In terms of the type of liabilities into Deposit and Non-Deposit accepting NBFCs,
    b) Non deposit taking NBFCs by their size into systemically important and other non-deposit holding companies (NBFC-NDSI and NBFC-ND) and
    c) By the kind of activity they conduct.
    Within this broad categorization the different types of NBFCs are as follows:
    i. Asset Finance Company(AFC) : An AFC is a company which is a financial institution carrying on as its principal business the financing of physical assets supporting productive/economic activity, such as automobiles, tractors, lathe machines, generator sets, earth moving and material handling equipments, moving on own power and general purpose industrial machines.
    ii. Investment Company (IC) : IC means any company which is a financial institution carrying on as its principal business the acquisition of securities.
    iii. Loan Company (LC): LC means any company which is a financial institution carrying on as its principal business the providing of finance whether by making loans or advances or otherwise for any activity other than its own but does not include an Asset Finance Company.
    iv. Infrastructure Finance Company (IFC): IFC is a non-banking finance company
    a) which deploys at least 75 per cent of its total assets in infrastructure loans,
    b) has a minimum Net Owned Funds of Rs. 300 crore,
    c) has a minimum credit rating of ‘A ‘or equivalent d) and a CRAR of 15%.

    v. Infrastructure Debt Fund: Non- Banking Financial Company (IDF-NBFC) : IDF-NBFC is a company registered as NBFC to facilitate the flow of long term debt into infrastructure projects. IDF-NBFC raise resources through issue of Rupee or Dollar denominated bonds of minimum 5 year maturity. Only Infrastructure Finance Companies (IFC) can sponsor IDF-NBFCs.

    vi. Non-Banking Financial Company - Micro Finance Institution (NBFC-MFI): NBFC-MFI is a non-deposit taking NBFC having not less than 85%of its assets in the nature of qualifying assets which satisfy the following criteria:
    a. loan disbursed by an NBFC-MFI to a borrower with a rural household annual income not exceeding Rs. 60,000 or urban and semi-urban household income not exceeding Rs. 1,20,000.
    b. tenure of the loan not to be less than 24 months for loan amount in excess of Rs. 15,000 with prepayment without penalty; 
    vii. Non-Banking Financial Company – Factors (NBFC-Factors): NBFC-Factor is a non-deposit taking NBFC engaged in the principal business of factoring. The financial assets in the factoring business should constitute at least 75 percent of its total assets and its income derived from factoring business should not be less than 75 percent of its gross income.
    Register with RBI:
    A company incorporated under the Companies Act, 1956 and desirous of commencing business of non-banking financial institution as defined under Section 45 I(a) of the RBI Act, 1934 should comply with the following:
    i. it should be a company registered under Section 3 of the companies Act, 1954
    ii. It should have a minimum net owned fund of Rs 200 lakh. 

    Deposits in NBFC:
    a) Presently, the maximum rate of interest an NBFC can offer is 12.5%. The interest may be paid or compounded at rests not shorter than monthly rests.
    b) The NBFCs are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months. They cannot accept deposits repayable on demand.
    c)  The deposits with NBFCs are not insured.
    d)  The repayment of deposits by NBFCs is not guaranteed by RBI.

    Brief about RNBC
    a) Residuary Non-Banking Company is a class of NBFC which is a company and has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner and not being Investment, Asset Financing, Loan Company. 
    b) These companies are required to maintain investments as per directions of RBI, in addition to liquid assets. 
    c) The amount payable by way of interest, premium, bonus or other advantage, by whatever name called by a RNBC in respect of deposits received shall not be less than the amount calculated at the rate of 5% (to be compounded annually) on the amount deposited in lump sum or at monthly or longer intervals; and at the rate of 3.5% (to be compounded annually) on the amount deposited under daily deposit scheme. 
    d) Further, a RNBC can accept deposits for a minimum period of 12 months and maximum period of 84 months from the date of receipt of such deposit. They cannot accept deposits repayable on demand.

    Category of Companies
    Regulator
    Chit Funds
    Respective State Governments
    Insurance companies
    IRDA
    Housing Finance Companies
    NHB
    Venture Capital Fund /
    SEBI
    Merchant Banking companies
    SEBI
    Stock broking companies
    SEBI
    Nidhi Companies
    Ministry of corporate affairs, Government of India



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    Committees & Banking Apps



    Banking Apps and Schemes
    Name of the Bank
    BOUTIQUE FINANCING SCHEME
    SBI
    SBI
    E-KYC
    SBI
    First home grown INDEX “COMPOSITE INDEX”
    SBI
    Twitter Handle account
    SBI
    TAB BANKING FACILITY
    SBI
    State Bank Freedom App
    SBI
    Fedbook Selfie App(India’s first mobile app for bank account opening)
    federal bank
    Video conferencing
    Indusuld & federal bank
    Digital Banking “POCKET”
    ICICI
    Student Travel Card
    ICICI
    I-Mobile app for windows phone
    ICICI
    M-Pesa
    ICICI+Vodafone
    Branch on Wheel
    ICICI Bank in Odisha
    Tap and pay
    ICICI
    Digital Village Project in Akodara Village of Gujarat
    ICICI
    Transparent credit card “in association with American Express
    ICICI
    EMI ON DEBIT CARD
    ICICI
    Kisan card
    AXIS Bank
    Asha Home loan
    AXIS Bank
    Airtel money
    AXIS BANK+AIRTEL
    Chillar
    Hdfc Bank
    DDA Housing Scheme 2014
    Hdfc Bank
    Instant Money Transfer – IMT
    Bank of India
    Facebook-basedFUNDS transfer platform “KayPay”
    Kotak Mahindra Bank
    M-Wallet
    Canara Bank
    Maha Millionaire”, “Maha Lakhpati”
    Bank of Maharashtra
    China’s first online Banking “webank”
    Tancet Holdings 
    India’s first credit card exclusively for GOLF LOVERS
    RBL Bank
     


    Some Important Committees -

    1. to revisit civil services examination pattern - B S Baswan committee

    2. To review the existing agricultural tenancy laws of states, including hilly states and schedule areas - T Haque Expert Group on Land Leasing 

    3. restructuring water agencies- Mihir Shah Committee 

    4. assess situation in FTII by Union Government - SM Khan-headed team 

    5. to review PPP Cell functioning - Ministry of Railways constituted Ajay Shankar Committee 

    6. to reinvestigate 1984 anti-Sikh riot cases - The SIT was constituted on recommendation of Mathur Committee 

    7. to classify Caste Census data, 2011 - Panagariya Committtee
     


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