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The Constitution Bench in the land acquisition case must show us that the court still respects rules of precedent.
The latest all-India score on the CRISIL Inclusix financial inclusion index has surged, driven by the Jan Dhan Yojana
Steps and Schemes followed by India for Financial Inclusion
As the name of this campaign i.e, Swabhiman which means “self-respect” and similarly this campaign aims at giving more self-respect and confidence to people by making them aware of the financial sector of their country and banking services. This Campaign was introduced in 2004 on the recommendations of C. Rangrajan Committee. It is especially focused on including people from Rural into Banking Services and linking them in the financial sector of India in a proper and organized way. Under this public is made aware of the benefits of financial services especially in rural areas.
Business correspondent Model
Under this model financial Institutes appoint commission agents who provide financial Services at the doorstep of the public at remote areas where they are unable to open branches which result in large customer base at low cost. Therefore this model is also known as the cost-efficient model. These appointed agents have various functions such as identification of borrowers, the collection of small value credit, a collection of interest, recovery of principal, the sale of micro insurance, pension schemes and products, mutual funds, other payment instruments, creating awareness about saving and other products and advice on managing money and debt counseling.
Various steps taken in area of banking for financial inclusion are:-
RBI’s Compulsory Requirement of Opening Branches in Un-banked Villages, banks are directed to allocate at least 25% of the total number of branches to be opened during the year in un-banked (Tier 5 and Tier 6) rural centers.
Various kinds of saving account in past and present
- No Frill account- The central bank had introduced ‘no-frills’ accounts in 2005 to provide basic banking facilities to poor and promote financial inclusion. The accounts could be maintained without or with very low minimum balance. These were later converted into BSBDA
- BSBDA- RBI advised all banks to open Basic Saving Bank Deposit (BSBD) accounts with minimum common facilities such as no minimum balance, deposit, and withdrawal of cash at bank branch and ATMs, receipt/ credit of money through electronic payment channels, facility of providing ATM card
- JAN DHAN Account- These are similar to BSBDA but with little more features as Earlier bank were reluctant to open BSBDA account. Banks also do not provide good service to BSBDA account holder. They even denied service like the debit card. But after JHAN DHAN Yojna this scenario has been completely changed
- JHAN DHAN account holder is compulsorily issued RUPAY debit card and many more services. It certainly increased the financial inclusion and made bank account opening a cake walk
- It also provided premium free life insurance till the time accounts opened on 26 Jan 2015. It has life insurance of Rs 30000 and accidental insurance covers Rs 1 lakhs
- Also, provide overdraft facility up to 5000 Rs per month without any Rate of Interest. And security but with few conditions which are
- Account age should be at least 6 months
- Account holder should visit ATM branches at least once in 90 days
- Income should be up to 1 lakh per year in rural areas and up to 1.5 lakh year for urban areas
In order to control public to borrow from Schedule banks to lend fix amount in priority sector at affordable rate of interest along with certain government schemes such as – Pradhan Mantri Mudra Yojna, Pradhan Mantri Awas Yojna e.t.c
For Insurance Sector-
Insurance sector also plays a major role in financial inclusion of a country and thus government has various schemes in this sector among which few most recent schemes are-
- Pradhanmantri Fasal Bima Yojna : This is a general insurance for crops and this scheme started from Feb 2016 by NDA government and replaced the earlier scheme of UPA government named “National Agricultural Insurance” with few more advantages such as low premium on crop insurance, use of technology for weather forecasting (like smartphones, drones, remote sensing satellites), Future generation of claim and post-harvest benefits e.t.c
- Pradhan Mantri Jeevan Jyoti Yojna : It is a life insurance scheme from age of 18-50 years (benefit until 55 years) at a premium of Rs 330+(18%gst). It covers till 2 lakh Rs and is under LIC India on behalf of the government of India. Pradhan Mantri Surksha bima yojna – started on Jan 2015 for accidental insurance and covers up to Rs 2lakh in case of death and Rs 1 lakh in case of physical disability at a premium of (Rs 12+GST) for the age group of 18 to 70 years and is under HDFC life on behalf of government of India
Recent steps still in progress
On Recommendation of Nachiket More committee there are various measures are going on among which one is opening of two special kinds of banks in India which are
- Payment banks- These banks will only accept deposit from public and will not lend loans, These payment banks will provide payment services and deposit products to its target customers which will be small businesses and low-income households. Till date 11 licenses have been granted out of which four banks are functional which are – Paytm, Airtel, Indian postal payment bank, Phinopayment
- Small finance banks- Small finance banks are a type of niche banks in India. Banks with a small finance bank license can provide basic banking service of acceptance of deposits and lending
Highlights of the Code
- The Code replaces four existing laws: (i) the Payment of Wages Act, 1936, (ii) the Minimum Wages Act, 1948, (iii) the Payment of Bonus Act, 1965, and (iv) the Equal Remuneration Act, 1976.
- The central government will set minimum wages for certain employments including railways, and mines. State governments will set minimum wages for all other employments.
- The Code provides that a national minimum wage may be set by the central government. States cannot set minimum wages lower than the national minimum wage. Further, the central government may set separate national minimum wages for different states or regions of the country.
- Minimum wages must be revised by the central or state governments at an interval of five years.
- The overtime rate will be at least twice the normal rate of wages of the employee.
Key Issues and Analysis
- Central government may set a national minimum wage. Further, it may set separate national minimum wages for different states or regions. In this context, two questions arise: (i) the rationale for a national minimum wage, and (ii) whether the central government should set one or multiple national minimum wages.
- States have to ensure that minimum wages set by them are not lower than the national minimum wage. If existing minimum wages set by states are higher than the national minimum wage, they cannot reduce the minimum wages. This may affect the ability of states to reduce their minimum wages if the national minimum wage is lowered.
- The time period for revising minimum wages will be set at five years. Currently, state governments have flexibility in revising minimum wages, as long as it is not more than five years. It is unclear why this flexibility has been removed, and five years has been set for revision.
- The Equal Remuneration Act, 1976, prohibits employers from discriminating in wage payments as well as recruitment of employees based on gender. While the Code prohibits gender discrimination on wage-related matters, it does not include provisions regarding discrimination during recruitment.
It appears to be well on its way to becoming a credible institution that promises to make an important contribution in providing regional and global public goods.
The Asian Infrastructure Investment Bank (AIIB) is an International Financial Institution proposed by the government of China. The purpose of the multilateral development bank is to provide finance to infrastructure projects in the Asia region. AIIB is regarded by some as a rival for the IMF, the World Bank and the Asian Development Bank (ADB), which are regarded as dominated by developed countries like the United States. The United Nations has addressed the launch of AIIB as “scaling up financing for sustainable development” for the concern of Global Economic Governance.
AIIB—-This is Asian Infrastructure Investment bank,its HQ is in Beijinghas total 57 members out of them 37 founding members and 20 prospective founding members.
NDB—New development bank,also called BRICS development bank HQ is in Shanghai China its members are only countries in BRICS nation.
ADB—Asian development bank.Its HQ is in Philippines Manila its is mainly headed by Japan as Japan has share of 15.7% .
Ashgabat Agreement Ashgabat Agreement aims at establishment of International Transport and Transit Corridor between the Iran, Oman, Turkmenistan and Uzbekistan. It was signed in April 2011 and is named after capital of Turkmenistan, Ashgabat. It establishes international transport and transit corridor between Central Asia and the Persian Gulf countries. Pakistan is also its member since October 2016.
Ashgabat Agreement envisages facilitation of transit and transportation of goods between Central Asia and the Persian Gulf. Accession to the Agreement would diversify India’s connectivity options with Central Asia and have a positive influence on India’s trade and commercial ties with the region. Upon receipt of approval of the Union Cabinet for India’s accession to the Ashgabat Agreement, India had deposited the Instrument of Accession with Turkmenistan in April 2016.
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