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.

HOW TO CONTROL INFLATION BY RBI,GOVT AND ECONOMY ITSELF.

HIT INFLATION FOR FIT ECONOMY

THE SHARP FALL IN INFLATION ARISE MANY QUESTION FOR US.ACCORDING TO ME THERE ARE LOT OF REASON FOR ITS SHARP FALL.RBI GOVERNOR DR. RAGHURAM RAJAN TOOK SEVERAL STRICT DECISION TO CONTROL THE ECONOMY.IN INDIA LOT OF PEOPLE ARE LIVING UNDER PROVERTY LINE AND IT IS OUR RESPONSIBILITY TO GIVE EMPLOYMENT, FOOD AND SHELTER TO OUR CITIZEN .IF THE FOOD PRICE IS GOING UP THEN IT CREATES LOT OF PROBLEM TO THEM.SO IT IS OUR FIRST PRIORITY TO CONTROL THE FOOD INFLATION.RBI DECIDED TO MAINTAIN CPI(CONSUMER PRICE INDEX ) INFLATION AT 8%  IN 2015 AND 6% TO 2016 BUT A YEAR BACK IT WAS AROUND 11.2%.RBI ACHIEVE ITS TARGET IN 2014 AND CPI INFLATION CAME DOWN TO 4.4% IN NOV. 

WELL LETS DISCUSS HOW RBI HIT THE MILE-STONE-

1 RBI TIGHTEN THE MONETARY POLICY TO CONTROL THE FLOW OF CREDIT OR  RAISE THE INTEREST TO MAKE LOAN COSTLIER WHICH AFFECT THE EMI.

2 CONTROL THE LIQUIDITY OR ABSORB THE EXCESS MONEY FROM BANK,FINANCIAL INSTITUTION,INDIVIDUALS OR FROM ECONOMY.

3 IN WINTER SEASON THE PRODUCTION OF CROP AND VEGETABLE INCREASES WHICH REDUCE THE FOOD INFLATION WHICH HIT THE WPI(WHOLESALE PRICE INDEX) AND CPI INFLATION TO FIT THE GDP.

4 NO INDICATION FOR REDUCTION IN POLICY RATE.

5 LESS PRESSURE FROM GOVERNMENT TO INFUSE MONEY IN THE ECONOMY.

6 BULLISH SHARE MARKET SUPPORT THE RBI GOVERNOR TO TAKE DECISION      ACCORDING TO CHOICE.

   

7 STABLE GOVERNMENT BOOST THE ECONOMY GROWTH AND REDUCE INFLATION.

8 FALL IN THE CRUDE OIL PRICE REDUCE THE TRANSPORTATION COST WHICH HELPS TO REDUCE INFLATION.

9 DEREGULATION OF OIL PRICE, REDUCE THE LOSS OF SUBSIDY OF GOVERNMENT WHICH MAKES GOVT STRONG.

10.DISINVESTMENT IN VARIOUS SECTOR REDUCE THE LOSS OF GOVT AND BOOST THE FDI HELPS TO INTRODUCE NEW TECHNOLOGY  AND MONEY IN THE INDUSTRIAL SECTOR.

POST OFFICE SAVINGS BANK

POST OFFICE SAVINGS BANK


VERY SOON POST OFFICE GOING TO GIVE BANKING FACILITY.PRESENTLY IT OPERATES IN TAMILNADU.IT MAY SOON ALLOTS ATM CARD AND REPLACE PASSBOOK TO ACCOUNT STATEMENT.LAST WEEK THE GOVERNMENT ISSUED A GAZETTE NOTIFICATION AMENDING THE POST OFFICE SAVINGS BANK GENERAL RULES,1981.THESE FACILITIES WILL BE AVAILABLE ONLY AT BRANCHES RUNNING ON CORE BANKING SOLUTIONS SOFTWARE.CORE BANKING SYSTEM HELPS POST OFFICE TO MAINTAIN DATA CENTRALLY.SO THAT EVERY POST OFFICE ACCESS DATA FROM ANYWHERE .ON THE INVESTMENT PART, POST OFFICE WOULD NOT INVEST ANYWHERE BUT IT CAN COLLECT MONEY FROM CUSTOMER AND FORWARD IT TO GOVERNMENT AND GOVT INVEST IT IN INFRASTRUCTURE WORK AND EARN MONEY TO GIVE RETURN FROM LONG TERM TAX GAIN.

DENA BANK RAISE FUND FOR BASELIII

DENA BANK PLANS TO RAISE RS 1000 CR THROUGH BOND.

DENA BANK IS LOOKING TO RAISE RS1000CR FROM BONDS TO FUND ITS GROWTH PLANS.THE BANK IS PLANNING TO RAISE BASEL III COMPLIANT ADDITIONAL  TIER I BONDS FOR AN AMOUNT OF RS1000CR, THROUGH PRIVATE PLACEMENT (UNLISTED SHARE).

DIFFERENCE BETWEEN SMALL BANK AND PAYMENT BANK.

SMALL BANK	PAYMENT BANK
v  SMALL BANKS CAN UNDERTAKE       ALL  ACTIVITIES THAT EXISTING COMMERCIAL BANKS ARE ALLOWED. v  THEY OFFER BOTH THE PREPAID CARDS AS WELL AS CREDIT CARDS. v  CAN  LEND  BELLOW  25 LAKHS. v  OFFER TO PAY UTILITY BILLS. v  NON BANKING FINANCIAL COMPANIES, MFI’S, LOCAL AREA BANKS CAN APPLY OR CONVERTS THEMSELF INTO SMALL BANK.	v  PAYMENTS BANKS CAN ACCEPT DEPOSITS AND REMITTANCES BUT CAN’T PROVIDE LOANS. v  THEY ARE ONLY ALLOWED TO ISSUE PREPAID CARDS. v  CAN ONLY COLLECT DEPOSIT: MAX-1LAKH PER PERSON. v  DONT OFFER TO PAY UTILITY BILLS. v  NBFC’S, MOBILE COMPANIES, TELECOM COMPANIES, PSU’S, REAL ESTATE COMPANIES CAN APPLY FOR PAYMENT BANK.