LIQUIDITY ADJUSTMENT FACILITY [ LAF ]

TODAY WE ARE GOING TO DISCUSS ABOUT LAF. IN INDIA 70% PEOPLE ARE POOR SO RBI AND GOVT OF INDIA ALWAYS FOCUS ON INFLATION.RBI ALWAYS REVIEW INFLATION  DATA.IN INDIA RBI DECIDE TO MAINTAIN INFLATIN BETWEEN 2 % TO 6%.IF RBI FIND INFLATION IS MORE THEN NORMAL THEN THEY CHANGE POLICY RATE.HERE RBI USE 2 INSTRUMENT THAT IS REPO RATE AND REVERSE REPO RATE.

**THE RATE AT WHICH ANY BANK BORROW MONEY FROM RBI THEN IT IS CALLED REPO RATE.(6.25%)

** RBI IS A NON PROFIT MAKING ORG.SO WHEN BANK HAVE EXCESS MONEY WITH THEM, THEN THEY PARK MONEY WITH RBI FOR GETING INTEREST RATE LESS THEN 1% OF REPO RATE.(5.25%)

WHEN RBI FIND THAT INFLATION IS MORE THEN NORMAL THEN RBI INCREASE REPO RATE.BY INCREASING REPO RATE RBI INDIRECTLY MAKE LOAN COSTLY.WHEN BANK GET COSTLY LOAN THEN BANK DEMAND LESS MONEY AND PEOPLE ALSO REDUCE THEIR DEMAND OF LOAN.WHEN PEOPLE REDUCE DEMAND AND SUPPLY NOT CHANGE WITHIN SHORT DURATION THEN PRICE OF GOODS AND SERVICES COMES DOWN.

REVERSE POSITION TAKEN BY RBI IF INFLATION COME BELOW NORMAL POSITION OR RBI WANTS TO GENERATE EMPLOYMENT OR BOOST GDP.

BANKERS CUSTOMER RELATIONSHIP

TRANSACTION                          BANK                 CUSTOMER                                                 


1. DEPOSIT IN THE BANK                             DEBTOR                                    CREDITOR

2. LOCKER                                                        LESSOR                                      LESSEE

3. LOAN                                                             CREDITOR                                DEBTOR

4.DRAFT PURCHASE                                       DEBTOR                                    CREDITOR

5. PAYEE OF DRAFT                                        TRUSTEE                                   BENEFICIARY

6. CHEQUE COLLECTION                               AGENT                                       PRINCIPAL

7.MORTGAGE                                                    MORTGAGEE                            MORTGAGOR

8. ASSIGNMENT                                                ASSIGNEE                                  ASSIGNOR

9. PLEDGE                                                           PAWNEE/PLEDGEE         PAWNER/PLEDGER

10. HYPOTHICATION                                       HYPOTHECATEE              HYPOTHECATOR



FOR FOREIGN MY VIEWERS

[IN INDIA WE OR CUSTOMER HAVE SOME RELATIONSHIP WITH BANK. ACCORDING TO BANKING TERMINOLOGY THESE ARE AS MENTION ABOVE]

NEER AND REER

What exactly are nominal & real exchange rates?

ET IN THE CLASS ROOM, TNN Jan 27, 2003, 02.51am IST

Nominal exchange rate is the price of one currency in terms of number of units of some other currency. This is determined by fiat in a fixed rate regime and by demand and supply for the two currencies in the foreign exchange rate market in a floating rate regime.

It is 'nominal' because it measures only the numerical exchange value, and does not say anything about other aspects such as the purchasing power of that currency. In a floating rate regime, an increase in the value of the domestic currency against other currencies is called an appreciation, while a decrease in value is called depreciation. In contrast, an increase in the exchange rate in a fixed rate regime is called a revaluation (for an increase) and a decrease in the exchange value of the domestic currency is referred to as a devaluation.

What is real exchange rate?

To incorporate the purchasing power and competitiveness aspect and, therefore, make the measure more meaningful, real exchange rates are used. The real exchange rates are nothing but the nominal exchange rates multiplied by the price indices of the two countries. This means the market price level of goods and services, given by indices of inflation. So if the price level in the US is higher than the price level in India, then the real exchange rate of the rupee versus the dollar will be greater than the nominal exchange rate. Suppose the nominal exchange rate is Rs 50 and US prices are greater than Indian prices, a dollar will buy more in India than what Rs 50 will buy in the US. So the real rupee-dollar exchange rate is greater than the nominal rate. If the real exchange rate is calculated using the price levels of common traded goods, then it gives a measure of export competitiveness. For example, if both the US and India manufacture the same (or highly comparable) pharmaceutical drug, and Indian drug prices are lower than US prices, then the exchange rate in terms of drugs is favourable to India. This can be generalized to all the goods manufactured by the two economies that compete in the export market. If the real rupee-dollar exchange rate based on export-competing goods depreciates, then Indian exports enjoy an enhanced pricing advantage over US goods. The converse is true for a real appreciation.

POST OFFICE SAVING ACCOUNT

                    Savings Account

• Rate of interest 4% per annum

• Minimum INR 20/- for opening.

•  Account can be opened by cash only.

•  Minimum balance to be maintained in a non-cheque 

 facility account is INR 50/-.

•  Cheque facility available if an account is opened with INR

  500/- and for this purpose minimum balance of INR 500/-in

  an account is to be maintained.

•  Cheque facility can be taken in an existing account also.

•  Interest earned is Tax Free up to INR 10,000/-  per year 

 from financial  year 2012-13.

•  Nomination facility is available at the time of opening and

  also after opening of account.

  

•  Account canbe transferred from one post office to another. 


•  One account can be opened in one post office

•  Account can be opened in the name of minor and a minor

    of 10 years and above age can open and operate the

    account.

•  Joint account can be opened by two or three adults.

•   At least one transaction of deposit or withdrawal in three

     financial years is necessary to keep the account active.

•    Single account can be converted into Joint and Vice 

      Versa.

  Minor after attaining majority has to apply for conversion of

  the account in his name. 


  Deposits and withdrawals can be done through any 

  electronic mode in CBS Post offices.


 *Inter Post office transactions can be done between CBS

   post offices.


* ATM/Debit Cards can be issued to Savings Account 

  holders( having prescribed minimum balance on the day of 

  issue of card) of CBS Post offices.

GDP deflator

GDP deflator is a measure of price

 inflation/deflation with respect to a specific 

base year; the GDP deflator of the base year

 itself is equal to 100.

Sukanya Samriddhi Accounts      

• Rate of interest 9.1% Per Annum(2014-15),calculated on yearly basis ,Yearly compounded.

• Minimum INR. 1000/-and Maximum INR. 1,50,000/- in a financial year. Subsequent deposit in multiple of INR 100/- Deposits can be made in lump-sum No limit on number of deposits either in a month or in a Financial year

• A legal Guardian/Natural Guardian can open account in the name of Girl Child.

• A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different Girl children.

• Account can be opened up to age of 10 years only from the date of birth. For initial operations of Scheme, one year grace has been given. With the grace, Girl child who is born between 2.12.2003 &1.12.2004 can open account up to1.12.2015.

• If minimum Rs 1000/- is not deposited in a financial year, account will become discontinued and can be revived with a penalty of Rs 50/- per year with minimum amount required for deposit for that year.

• Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.
• Account can be closed after completion of 21 years.

• If account is not closed after maturity, balance will continue to earn interest as specified for the scheme from time to time.

• Normal Premature closer will be allowed after completion of 18 years /provided that girl is married.

Kisan Vikas Patra (KVP) 

IT IS A INSTRUMENT ISSUED BY INDIAN POST OFFICE PREVIOUSLY THEY WERE ENGAGED WITH SENDING LETTER BUT DUE TO DIGITISATION THEY HAVE LESS WORK TO DO.NOW THE INCOME FROM POST OFFICE REDUCES CONTINUOUSLY BUT THEY HAVE REACH IN INTERIOR SECTOR OF RURAL AREA.WHERE BANKS DOES NOT HAVE BRANCH,THEIR HAS A  POST OFFICE.SO INDIAN GOVT WANT TO REACH DIRECTLY TO THE RURAL PEOPLE TO HELP THEM THROUGH POST OFFICE.NOW GOVT  AND RBI DECIDED TO GIVE  LICENCE TO POST OFFICE AS BANK.PREVIOUSLY GOVT'S MONEY WESTED THROUGH CORRUPTION AND POOR DOES NOT GET BENEFIT.NOW GOVT WANT TO SEND MONEY TO THEIR BANK ACCOUNT SO THAT THEY CAN USE FULL MONEY FOR THEIR DEVELOPMENT WHICH IS CALLED DIRECT BENEFIT TRANSFER(DBT) THROUGH PRADHAN MANTRI JAN DHAN YOJANA.

{I HONOUR OUR GOVERNOR, CHIEF ECONOMIC ADVISOR AND GOVT TO TAKE WONDERFUL DECISIONS. I WANT TO ANALISE FEW MORE EXCELLENT WORK BY OUR BUREAUCRATS AND ECONOMIST IN MY UPCOMING BLOGS } 

    

• Amount Invested doubles in 100 months (8 years & 4

 months) 

• Available in denominations of Rs 1,000, 5000, 10,000 and 

Rs 50,000. Minimum deposit Rs 1000/- and no maximum

 limit.

• Certificate can be purchased by an adult for himself or on

 behalf of a minor or by two adults.

• KVP can be purchased from any Departmental Post office.

• Facility of nomination is available.

• Certificate can be transferred from one person to another

 and from one post office to another. 

• Certificate can be encased after 2 & 1/2 years from the

 date of issue.

GLOBAL HUNGER INDEX (GHI)

                      GLOBAL HUNGER INDEX (GHI)


GHI IS DESIGNED TO MEASURE AND TRACK HUNGER GLOBALLY AND BY COUNTRY.

IT IS CALCULATED BY INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE(IFPRI).
                      
FOCUS ON EFFORTS IN THE FIGHT AGAINST HUNGER AND MALNUTRITION.

GHI FIRST TIME UPDATED ITS RECORD IN 2006 BY GERMAN NGO.

GHI UPDATED ITS RECORD ONCE IN A YEAR.

BURUNDI IN IN THE HIGHEST POSITION WITH 35.6%.
(COUNTRIES >30% IS EXTREMLY ALARMING, BETWEEN 20.0 % TO 29.9% IS ALARMING HUNGER SITUATION).

SINCE 1990 TO 2014 THE STATE OF HUNGERS IN DEVELOPING COUNTRIES FALLING BY 39% ACCORDING TO GHI.

805 MILLION  PEOPLE CONTINUING TO GO HUNGRY ACCORDING TO UN.

HIGHEST LEVEL OF HUNGER IS IN AFRICA SOUTH OF THE SAHARA AND SOUTH ASIA.
26 COUNTRIES REDUCED THEIR SCORES BY 50%.

THOSE COUNTRIES HAVING LARGE SCALE OF HUNGER HAS BEEN SUFFERED FROM SERIOUS HEALTH ISSUES.  


GHI COMBINES 3 EQUALLY WEIGHTED INDICATORS IN ONE INDEX NUMBER.

1. CHILD UNDERWEIGHT- CHILD OF 5YRS WHO ARE UNDERWEIGHGHT.

2. CHILD MORTALITY  - DEATH WITHIN 5YRS.

3. UNDER NOURISHMENT- UNDER NOURISHED CHILDREEN.

MONEY MEASUREMENT

M0-    CURRENCY IN CIRCULATION+CRR+SLR(CASH PORTION)
           HIGH POWER MONEY


M1-    M0+DEMAND DEPOSIT(CASA)



M2-    M1+POSTAL SAVING DEPOSIT




M3-    M2- POSTAL DEPOSIT+TIME DEPOSIT  




M4-   M3+POSTAL ALL DEPOSIT



THIS IS THE PROCESS THROUGH WHICH RBI CHECK THE LIQUIDITY(AVAILABILITY OF CASH) IN THE MARKET OR ECONOMY.IN OUR COUNTRY LOT OF PEOPLE LIVING BELOW  POVERTY LINE.SO IT IS IMPORTANT FOR RBI TO CONTINUOUSLY MONITOR THE INFLATION AND LIQUIDITY FOR THE BASIC NEEDS OF COMMON PEOPLE.EXCESS FUND IS THE  INFLATION CREATOR.SO PROPER MONEY SUPPLY MAKE ECONOMY HEALTHY.

FINANCIAL INCLUSION

MORE UPDATE SOON

RBI POLICY AND INITIATIVES FOR FI: 

FINANCIAL INCLUSION MEANS ADD MORE PEOPLE WITH BANKING SYSTEM SOTHATGOVT CAN TRANSFER BENIFIT DIRECTLY TO THE CUSTOMERS ACCOUNT.IF PEOPLE CAN USE MAX AMOUNT FOR THEIR NEED THEN AFTER SOME TIME THEY BECOME PERFORMING FOR OUR COUNTRY.

NO FRILLS ACCOUNT(WHICH IS CONVERTED TO BSBDA ACCOUNT IN 2012).

BSBDA (BASIC SAVING BANK DEPOSIT ACCOUNT):OPNED WITH ZERO BALANCE.

RELAXED AND SIMPLIFIED KYC NORMS: ONLY ONE ID AND ADDRESS PROOF

SIMPLIFIED BRANCH AUTHORIZATION POLICY: LESS DOCUMENTATION.

COMPULSORY REQUIREMENTS OF OPENING BRANCHES IN UN-BANKED VILLAGES

FINANCIAL LITERACY CENTER: MAKE THEM AWARE ABOUT HOW TO INVEST ,SAVE AND USE OF LOAN MONEY.

LICENCING OF NEW BANK: INTRODUCE NEW BANK FOR GREATER REACH TO PEOPLE.

ATM NETWORK: ACCESSABLE TO ALL PEOPLE.

MOBILE BANKING: FOR FAST FUND TRANSFER.

EBT (ELECTRONIC BENEFIT TRANSFER): MONEY DIRECTLY SEND TO ACCOUNT.

WHITE LEVEL ATM: ATM SET UP BY NBFC (NON BANKING FINANCIAL COMPANIES.)

SHG BANK  LINKAGE ( SELF HELF GROUP): GROUP OF SOME PEOPLE ,WHO GET EASY LOAN FO COMMON EMPOWERMENT.

PRADHAN MANTRI JAN DHAN YOJANA  :INITIATIVE TAKEN BY GOVT FOR FINANCIAL INCLUSION. 


MOTIVES :

BANKING ,CREDIT , INVESTMENT AND INSURENCE FOR ALL PEOPLE.

PRADHAN MANTRI JAN-DHAN YOJANA

PRADHAN MANTRI JAN-DHAN YOJANA

FINANCIAL INCLUSION MEANS ADD THOSE PEOPLE WHO DONT HAVE ACCOUNT WITH BANK.

PMJDY WERE INTRODUCED IN 25 AUG 2014.

PREVIOUSLY KNOWN AS NO FRILLS ACCOUNT CONVERTED AS BSBDA (BASIC SAVING BANK DEPOSIT ACCOUNT) IN 2012.

NO FRILLS ACCOUNT WAS INTRODUCED IN 2005.

IN BSBDA PEOPLE CAN OPEN HIS ACCOUNT WITH NO BALANCE OR ZERO BALANCE.

PRESENTLY 12.54 CR ACCOUNT WERE OPENED UNDER PMJDY.

11.07 CR RUPAY DEBIT CARD WERE ISSUED TILL DATE.

10.49 THOUSAND CR WERE DEPOSITED UNDER PMJDY.

RUPAY CARD HOLDER CAN GET ACCIDENT  BENEFIT  UP TO 30 THOUSAND.

A PERSON CAN GET PASSBOOK, ATM, PIN UNDER THIS ACCOUNT.

A PERSON CAN USE HIS CARD IN CASH WITHDRAW, BALANCE EN-QUERY,POINT OF SALE, E-COMMERCE ETC.

A PERSON CAN TRANSFER HIS MONEY THROUGH MOBILE BANKING.

UNDER DBT (DIRECT BENEFIT TRANSFER),THE SUBSIDY WILL BE TRANSFER TO HIS BANK ACCOUNT LIKE GAS OR WAGES OF 100 DAYS WORK. 

IF A PERSON OPERATE HIS ACCOUNT PROPERLY THEN HE CAN GET OVERDRAFT UPTO 5 THOUSAND.

MINIMUM DOCUMENT REQUIRED FOR ACCOUNT OPENING LIKE ADHAR CARD OR MGNREGA CARD.

NO LIMIT FOR DEPOSIT BUT MAX 4 FREE WITHDRAWALS  FROM BSBDA ACCOUNT.

AT LEAST ONE ACCOUNT IN EVERY HOUSEHOLD.

 HOUSEHOLD COVERAGE INCREASED TO 89% AND ABOUT 2.18CR HOUSEHOLDS STILL UNCOVERED.

BANK MITRAS TO HELP PEOPLE IN DIFFERENT ASPECT (MAKE PEOPLE AWARE HOW  ACCOUNT HELPS THEM).

MAKE IN INDIA PROJECT

                                    MAKE IN INDIA

1. Make in India helps in more productivity in low cost (like China) and sell it to World.

2. 128 crore peoples’ huge need attract many Foreign company to serve in India and production in India reduces its (Excise duty) cost which will rise employment and Tax revenue.

3. Greater revenue reduce our foreign borrowing where we can reduce our Interest payments.

4. Less subsidy will help Govt. to use its extra funds for fast poverty eradication and rapid growth.

5. Pure competition reduce the monopoly and give better services like in telecom sector. Some Public company give better services due to heavy competition from Private sector where people get better services by greater choice.

6. We have most valuable resources which is human resource. If we use it properly then we produce lot and if we sell it to other country our valuation of Rupees will rise.

7. We need joint research which will enhances efficiency in scientific research and development.

8.  If employment rise then the use of subsidy will reduces, which Govt. can use in literacy rise, reduce child labor problem, helps BPL families and in health care.

SAARC

                                               SAARC

1.THE SOUTH ASIAN ASSOCIATION FOR REGIONAL CO-  OPERATION FOCUSED ON    ECONOMIC AND  GEOPOLITICAL DEVELOPMENT BY EIGHT COUNTRIES.  AFGHANISTAN, PAKISTAN, INDIA,BANGLADESH,  BHUTAN,MALDIVES,NEPAL AND  SRILANKA.

2. FIRST SAARC SUMMIT WAS HELD IN DHAKA ON DEC    1985.

3. RECENTLY 18TH SUMMIT OF SAARC WAS HELD IN  KATHMANDU.

4. MALDIVIAN PRESIDENT MR ABDULLA YAMEEN  ABDUL OPENED THE SUMMIT.

5.THIS WAS THE THIRD TIME NEPAL'S PM SUSHIL    KOIRALA ORGANISED THE SUMMIT.

6. THIS MEETING TAKE PLACE AFTER AND INTERVAL OF      3 YRS.

7. LAST SUMMIT WAS HELD IN MALDIVES.

8. INDIA'S PM MR NARENDRA MODI FOCUSED ON FIVE  PILLARS FOR ACHIEVING THE    SUCCESS FOR  COUNTRIES THOSE ARE -TRADE,INVESTMENT,CO-  OPERATION,ASSISTANCE CO-OPERATION AND  CONNECTIVITY AMONG  PEOPLE.

9.INDIA SIGNED 12 AGREEMENT WITH NEPAL OR  TOURISM,MEDICINES ,YOUTH  EXCHANGE, PDA ( Project  Development Agreement ) FOR ARUN III,AUTOMOBILE  AGREEMENT,TWIN CITY.

10. DISASTER MANAGEMENT  CENTER  IN INDIA  ,METEOROLOGICAL RESEARCH  CENTER IN  BANGLADESH COASTAL ZONE MANAGEMENT CENTER  IN MALDIVES ,HR  DEVELOPMENT CENTER IN  ISLAMABAD .

11. GREATER FOCUS ON PROSPERITY AND  PEACE,ENERGY CO-OPERATION,RAILWAY      AGREEMENT.

12.   3-5 YRS BUSINESS VISA FOR SAARC COUNTRIES BY  INDIA.

NITI AAYOG

NITI AAYOG


1. NATIONAL INSTITUTION FOR TRANSFORMING INDIA
(NITI- POLICY, AAYOG-DEPARTMENT).

2.UNION GOVT OF INDIA HAS ANNOUNCED ITS FORMATION ON 1ST JANUARY 2015.

3.THIS COMMISSION HELPS GOVT IN SOCIAL AND ECONOMIC ISSUES.

4.EXPERTS SPECIALIST AND PRACTITIONERS WITH THE RELEVANT DOMAIN
   KNOWLEDGE  AS SPECIAL INVITEES NOMINATED BY THE PRIME MINISTER..

5.BRAIN STORMING PROCESS THROUGH EXPERTS.

6. IT PROVIDES STRATEGIC AND TECHNICAL ADVICE TO THE CENTRAL AND THE
     STATE GOVT.

7. DEPARTMENT WHO MAKES POLICIES FOR CENTRAL GOVERNMENT OR UNION
     GOVT.          

8. CHAIRPERSON:               PRIME MINISTER

9. VICE-CHAIRPERSON:    ANIL PANAGARIYA

10.MEMBERS:                       TWO FULL TIME MEMBER

11.PART TIME MEMBERS:  MAX TWO FROM LEADING UNIVERSITIES  RESEARCH
      ORGANIZATION AND OTHER RELEVANT INSTITUTIONS IN AN EX-OFFICIAL
      CAPACITY.

12. EX-OFFICIO MEMBERS; MAX OF 4 MEMBERS OF THE UNION COUNCIL OF  
      MINISTERS TO BE NOMINATED BY THE PM.

13. GOVERNING COUNCIL: ALL CHIEF MINISTERS AND LT. GOVERNORS OF UNION
       TERRITORIES.

14. NITI AAYOG WILL EMERGE AS A THINK TANK THAT WILL PROVIDE GOVERMENTS       AT THE CENTRAL AND STATE LEVEL POLICY FORMATION.

15. BETTER INTER MINISTRY COORDINATION.

16. FORMULATE VILLAGE LEVEL PLANS.

GOODS AND SERVICES TAX IN INDIA

GST

1. IT IS SET TO BE IMPLEMENTED ON 31/06/2017.
2. IT CREATES SINGLE,UNIFIED INDIAN MARKET TO MAKE STRONGER ECONOMY.
3. IT  IS EXPECTED THAT INDIA WILL CROSS CHINA IN TERMS OF GDP WITHIN 2016-2018 AND GST BECOME ONE OF THE PILLAR TO MAKE THIS HAPPEN.
4. GST REPLACE ALL THE INDIRECT TAXES LIKE CENTRAL SALES TAX,STATE LEVEL SALES TAX,STAMP DUTY ,TELECOM LICENCE FEE,TAXES ON TRANSPORTATION OF GOODS AND SERVICES ETC.
5. IT STOP THE CASCADING EFFECT OR DOUBLE TAXATION.
6. IT CHARGED ON VALUE ADDITION IN SUPPLY CHAIN METHOD (SHIFTED TO NEXT BUYER, AND LASTLY LAST BUYER)INSTEAD OF TOTAL VALUE OF PRODUCT. 
7. TAXES PAID BY COMPANIES REFUNDED BY THIS SYSTEM AND IT ULTIMATELY PAID BY CUSTOMER.
8. IT WOULD BE COLLECTED BY CENTER WHERE CONSUMPTION TAKES PLACE.
9. ONLY ONE TAX SIMPLIFY THE TAX SYSTEM AND REDUCE THE BAD EFFECT OF MULTI LEVEL TAXATION.
10. WE CAN SAY GST, CAN ALSO BE CALLED NATIONAL VAT.
11. PETROLEUM PRODUCTS WILL NOT BE PART OF GST ONLY FOR FEW YEARS.
12. FIFTEEN STATES WILL HAVE TO APPROVED THE BILL TO BECOME A LAW.
13. TAX BURDEN WILL HAVE TO DIVIDED EQUITABLY BETWEEN MANUFACTURING AND SERVICE THROUGH LOW AND PROPER TAXATION.
14. IT HELPS TO BUILD A TRANSPARENT TAX SYSTEM.
15. INDIA EXPECTED TO GAIN $15BILLION A YEAR BY IMPLEMENTING GST.
16. THE EXTRA MONEY HELPS MORE EMPLOYMENT, BOOST PRODUCTION IN THE ECONOMY (GDP)AND FOR OTHER DEVELOPMENT WORKS.
17. DUE TO LESS TAXATION DEMAND WILL GO UP WHICH GENERATE ,MORE PRODUCTION AND EMPLOYMENT.
18. IT HELPS TO REDUCE CORRUPTION FREE TAX SYSTEM.
19. IT MAKES CHEAPER PRODUCT.
20. IT HELPS IN MAKE IN INDIA PROJECT.
21. Their are 4 tax rates 5%, 12%, 18%, and 28%.
22. No tax on necessity goods and high tax rate for luxury goods to balance out income inequal distribution. 
23. If tax rate is 18% then 9% goes to Central Government and rest 9% goes to state government.
24. There are three types of GST one is CGST second is SGST third is IGST. CGST stands for Central goods and services tax, SGST stands for state goods and services tax and IGST stand for integrated goods and services tax or inter state GST.

CRUDE FALL, WHICH STRIKE THE WORLD ECONOMY

THE CONTINUOUS FALL IN PRICE CREATES  SOME HEADACHE FOR MANY COUNTRY ON THE OTHER HAND IT BECOME PLEASURE FOR SOME COUNTRIES.JANUARY 2010 SHOWS THE PRICE $80 PER BARREL. THEN IT INCREASING RAPIDLY TO $115 PER BARREL WITHIN 2011. IN 2011-2012 SHOWS ITS HIGHEST LEVEL BETWEEN $120-130 PER BARREL. THEN IT COMES DOWN TO LESS THAN $50 PER BARREL. NOW WE ARE GOING TO DISCUSS HOW IT HAPPENS-

1. OPEC MEMBERS ARE NOT SETTING ANY PRODUCTION LIMIT.
2. IRAN AND SOME OTHER ARAB COUNTRIES INCREASING ITS SUPPLY FOR ITS ECONOMIC DEVELOPMENT.
3. US, CANADA,VENEZUELA GOING TO EXPORT MULTI BILLION BARRELS OF CRUDE OIL.
4. US STARTED HUGE PRODUCTION OF DISTILLATE OIL TO THE WORLD MARKET.
5. WORLD'S LARGEST OIL PRODUCER RUSSIA EXPORT HUGE CRUDE OIL TO THE MARKET.
6. FEAR OF IMMINENT US INTEREST RATE HIKE.
7. US WITHDRAWN THE COMMERCIAL OIL EXPORT BAN AFTER 40 YEARS. IT CREATES HEAVY PRESSURE IN THE WORLD MARKET.
8. MAY BE SOME FEAR ABOUT FUTURE DEMAND. 
9. PEOPLES SQUARE OFF THEIR LONG POSITION IN OIL IN THE COMMODITY FUTURE MARKET.
10. BECAUSE OF HUGE OIL PRICE IN PAST FORCES SCIENTIST TO INNOVATE NEW IDEAS WHICH REFLECTS IN ELECTRONIC CAR FOR FUTURE LEADS LESS OIL DEMAND AND IT HELPS REDUCE IN GLOBAL WARMING.
11. CONDITION OF COUNTRIES LIKE CHAINA,GREECE, CYPRUS IS NOT GOOD SO SOME EXTENT THE DEMAND FALL.
12. HUGE PRODUCTION OF CHEAP GASOLINE BY THE US REDUCE THE CRUDE OIL DEMAND.
13. MOST OF THE COMPANIES INCREASING THE MILLAGE OF CAR.

INVESTMENT TABLE FOR FINANCIAL PLANING

	Interest (%)		Minimum Invt. (Rs.)	Maximum Invt. s(Rs.)	Features	Tax benefits
Monthly Income scheme	8.40		1500	Single 4.5 lakh	5-year tenure,monthly returns	Nil
				Joint 9 lakh	5-year tenure,monthly returns	Nil
Recurring deposits	8.40		10	No limit	5 year tenure	Nil
Savings Account	4.00		50	No limit	10000 tax free Interest	Nil
5-year NSC-VIII Issue	8.50		100	No limit	No TDS	80C
10-year NSC-IX Isssue	8.80		100	No limit	TDS Applicable	80C
Time deposit	8.40-8.50		200	No limit	Available in 1;2;3;5 years	80C
Senior citizens savings scheme	9.20 payable quarterly		1000	15 lakh	5-year tenure,minimum age 60	80C
Public Provident Fund	8.70		500	1.5 lakh pa	15 year term,tax-free returns	80C
Employees’ Provident Fund	8.75				Till retirement	80C

NEW UPDATES ABOUT RTGS AND NEFT

RBI EXTENDS RTGS TIME

TO FACILITATE GROWING NEEDS OF CUSTOMERS THE CENTRAL BANK OF INDIA ON 15^TH DEC 2014,DECIDED TO EXTEND THE TIMING OF RTGS BUSINESS HOUR TO 8.00HR FROM 9.00HR AND EXTEND CLOSING TIME OF RTGS TO 20.00HR OR 8PM ON WEEK DAYS AND 8.00HR TO 15.30HR ON SATURDAY.

FOR NEFT:

MON-FRI-- 8AM TO 7PM.(23 TIME SLOTES HALF AN HOUR EACH)
SAT---8AM TO 1PM(6 TIME SLOTES)

The structure of charges that can be levied on the customer for NEFT is given below:

a) Inward transactions at destination bank branches (for credit to beneficiary accounts)
– Free, no charges to be levied from beneficiaries

b) Outward transactions at originating bank branches – charges applicable for the remitter

-  For transactions up to Rs  10,000 : not exceeding Rs 2.50 (+ Service Tax)

- For transactions above Rs 10,000 up to Rs  1 lakh: not exceeding Rs 5 (+ Service Tax)

-  For transactions above Rs 1 lakh and up to Rs 2 lakhs: not exceeding Rs 15 (+ Service Tax)

-  For transactions above Rs 2 lakhs: not exceeding Rs 25 (+ Service Tax)

There is no limit – either minimum or maximum – on the amount of funds that could be transferred using NEFT. However, maximum amount per transaction is limited to Rs.50,000/- for cash-based remittances and remittances to Nepal.