1. FINANCIAL INCLUSION
The objective of Financial Inclusion(FI) is to extend financial services to the large hitherto (till
now)unserved population of the country to unlock its growth potential. In addition, it strives to
achieve more inclusive growth by making financing available to the poor in particular.
FI enables Banks to channelize the savings of the unserved population of the country and offers
new business avenues for lending to this group. Prior to the recent sustained efforts on FI, the
banks were barely(hardly) scrapping the potential business ,both on the deposit and lending side.
Rural incomes have grown rapidly in a short time span due to high priority accorded by the Govt.
to rural development and employment programs.
Banks have a key role in converting into business opportunities, the untapped large no. of small
deposits in rural areas and facilitate achievement of the aspirations of the bulk of our
population in these areas.
The increase in rural income will open up various types of lending. Not only will the demand for
business/commercial, education, home and personal loans increase substantially, various types of
services such as remittance facilities will need to be provided by the banks through modern
payment system to a very large number of people who have hardly interfaced with a modern
financial system. The process is expected to enable manifold(numerous or varied) growth in the
banks’ business. Thus, FI is a win –win situation for both the hitherto uncovered people and the
banks.
Business Correspondents are retail agents engaged by banks for providing banking services at
locations other than a bank branch/ATM and to ensure a closer relationship between poor
Policy for Branch Expansion
Ultra Small Branches (USB)
To minimize the cost of FI initiative, ensure universal accessibility to a range of banking
services and instill confidence amongst bank customers, Ultra Small Branches(USBs) are set up
at all places where opening of a brick and mortar branch is presently not viable. USBs
comprise an area of 100-200 sq. feet where a bank-designated officer will be available with a
laptop at a predetermined day and time of the week. The BCA also operates from such premises.
The BCA provides cash dispensation services and the bank officer offers other bank services,
undertakes field verification and follows up on banking transactions.
Banking presence ensured in all unbanked Blocks by March, 2012
There were 81 unbanked Blocks in the country, as on 31.03.2011.
With the persistent efforts of the Government, banking facilities have been provided in all the
unbanked Blocks by March, 2012, either through Brick and Mortar Branches or Business
Correspondents Model or Mobile Banking.
As a next step, Banks have been advised to cover all those blocks which have so far been
covered by mobile banking only, with BCA and USBs.
Financial Inclusion Financial Inclusion
Business Correspondent Agent
Launch of Ultra Small Branches(USB) by the Bank of Barodapeople and the organized financial
system. RBI has permitted various individuals/entities that the banks may engage
as

2. Business Correspondents. Business Correspondent Agents (BCAs) are the individuals appointed
by the Business Correspondents at the point of customer interface or
retail outlet of a bank.
The first step in FI is the interface between a bank customer and a bank. In India, conventionally
this interface has been through a normal brick and mortar bank branch. Since banking is
essentially a commercial business there are limits to which such bank branches can be spread
out in different areas to cover the entire population. It is only in the recent past that with the use
of communications technology that a bank branch has been able to spread out geographically.
Scheduled Commercial Banks
(SCBs) had 97,473 branches in the country as on 30th June, 2012.Out of these 63.12% are
located in rural and semi urban areas. To increase the outreach of banking services and to
promote the FI efforts of banks, detailed guidelines have been issued by the Government whose
salient points arelSetting up more brick and mortar branches with the objective to have a bank
branch within a radial distance of 5 km.
To open bank branches in all habitations of 5,000 or more population in under banked
districts, and 10,000 or more population in other districts RBI has provided for a Branch
Authorization Policy under which SCBs are permitted to open branches in rural, semi urban and
urban areas, in North Eastern States & Sikkim and in Tier 2 to Tier 6 centres (population upto
99,999) in rest of the country, without having to take permission, subject to reporting.
In their Annual Branch Expansion Plan (ABEP), SCBs are required to allocate at least 25% of
the total number of branches proposed to be opened during the year in unbanked Tier 5 and Tier
centres (population upto 9,999) which do not have a brick and mortar structure of any SCB for
customer based banking transactions.
To incentivize banks to establish additional branches in Tier II centers, obtaining the prior
approval of the RBI is no longer a requirement in the case of commercial banks looking at
opening branches in such centers. The RBI has also incentivized banks by authorizing
them to set up additional branches in Tier I centers for every branch they open in Tier II
centers.
Opening of one bank account per family
Opening of a Bank Account is one of the key requirements in FI. The country has made
appreciable progress on this parameter during 2001-2011 as per Census data on Households
(HHs) Availing Banking Services.
To inculcate saving habits and to extend banking facilities to the migrant labour and street
vendors/ hawkers in urban areas, a drive has been launched to open their bank accounts. Oriental
Bank of Commerce (OBC), Convenor State Level Bankers Committee (SLBC ) of Delhi
launched this drive. The bank (i) started 24x7 Call Centre with toll-free telephone number,
telephone number for SMS and has created e-mail ID for e-mail queries, (ii) imparted training to
the Call Centre Staff, (iii) provided wide-publicity of the campaign , (iv) identified the target
pocket and (v) undertook regular monitoring of the accounts opened. The drive has started
giving results with nearly 42,000 accounts opened. All PSBs have now been advised to initiate
similar drives in the State(s)/UTs where their Bank is SLBC Convenor.
RBI has advised all Scheduled Commercial Banks/Regional Rural Banks/all Cooperative Banks
to offer a ‘Basic Savings Bank Deposit Account’ which will offer minimum common facilities

3. to all their customers such as ATM card or ATM-cum-Debit Card, no requirement of any
minimum balance and no charge for nonoperation/activation of in-operative account.
Prime Minister, in his Independence day speech of 2012, has announced that “it will be our
endeavour to ensure that all households benefit from bank accounts in the next 2 years.” It
has been decided to take up this task on a campaign basis.
Accordingly, banks have geared up their branches and it is expected that most of the families
shall have a bank account by the end of this year.
To ease the opening of bank account by the migratory labour, street hawkers, and other poorer
sections of the society, “Simplified Account Opening Form” has been designed .Banks have
been requested to put in place a system to enable the customer to fill the account opening form
on an ‘online’ mode. This Form contains sections for Small Account, Accounts with Introduction
and Basic Saving Bank Deposit Account.
Indian banks offer a savings bank account to all its individual customers. RBI’s 2005 initiative
to introduce no frill accounts where no introductory deposit or very low minimum balances
were to be maintained proved very effective as the banking system has opened 103 million
no frill accounts as on March 2012… An unsung hero of our bank accounts group is the
“Small Account” created under Prevention of Money Laundering Rules, 2005 for those having
no KYC documents. This account can be opened by simply submitting own photograph and
declaring the residential address and stating before a bank officer in a CBS branch that one does
not have any proof of identity or residence and promising to submit KYC document with 12
months. Small accounts has no introductory balance, maximum balance allowed is Rs 50,000,
maximum credit of Rs 1,00,000 per year and maximum withdrawals of all types are Rs
10,000 per month, with foreign inward remittances not allowed.
What better account can be offered to crores of migrant workers within the country! …
Basic bank accounts remain only a first step in the long march to FI- though a very
critical first step. The challenges of access, usage and quality are ongoing concerns.
Covering our population with meaningful bank accounts is likely to remain work in
progress for a long time to come and shall require well knit efforts on the part of Indian
banks under the close support and guidance of the Government and RBI.
Development of Geographical Information system (GIS)
Geographical Information System (GIS) can be effectively used to assist the decision makers in
planning for expansion of infrastructure of the Banks by highlighting the pockets of the
hinterland which are yet to have access to these facilities. A web based application to develop a
GIS for the banking network in the country has been launched by the DFS.
The project envisages capturing existing information about bank branches, ATMs, Business
Correspondents, Clearing houses and Currency chests of Scheduled Commercial Banks at village
level. This facility enables the Banks to easily identify the deficit areas as per the
guidelines of the Department, where expansion of branch/ ATM/BCA network needs to be
carried out.

4. Right to education act
The Right of Children to Free and Compulsory Education Act or Right to Education Act (RTE),
is an Act of the Parliament of India enacted on 4 August 2009, which describes the modalities of the
importance of free and compulsory education for children between 6 and 14 in India under Article
21a of the Indian Constitution.[1]
India became one of 135 countries to make education a
fundamental right of every child when the act came into force on 1 April 2010.[2][3][4]
The Act makes education a fundamental right of every child between the ages of 6 and 14 and
specifies minimum norms in elementary schools. It requires all private schools to reserve 25% of
seats to children (to be reimbursed by the state as part of the public-private partnership plan). Kids
are admitted in to private schools based on caste based reservations. see Page 9 and Point no 4
of This Document. It also prohibits all unrecognised schools from practice, and makes provisions
for no donation or capitation fees and no interview of the child or parent for admission.[15][16]
The Act
also provides that no child shall be held back, expelled, or required to pass a board examination until
the completion of elementary education. There is also a provision for special training of school drop-
outs to bring them up to par with students of the same age.
The RTE act requires surveys that will monitor all neighbourhoods, identify children requiring
education, and set up facilities for providing it. The World Bank education specialist for India, Sam
Carlson, has observed:
The RTE Act is the first legislation in the world that puts the responsibility of ensuring
enrolment, attendance and completion on the Government. It is the parents' responsibility to
send the children to schools in the US and other countries.[17]
The Right to Education of persons with disabilities until 18 years of age is laid down under a
separate legislation- the Persons with Disabilities Act. A number of other provisions regarding
improvement of school infrastructure, teacher-student ratio and faculty are made in the Act.
Education in the Indian constitution is a concurrent issue and both centre and states can legislate on
the issue. The Act lays down specific responsibilities for the centre, state and local bodies for its
implementation. The states have been clamouring that they lack financial capacity to deliver
education of appropriate standard in all the schools needed for universal education.[18]
Thus it was
clear that the central government (which collects most of the revenue) will be required to subsidise
the states.
A committee set up to study the funds requirement and funding initially estimated that Rs 1710 billion
or 1.71 trillion (US$38.2 billion) across five years was required to implement the Act, and in April
2010 the central government agreed to sharing the funding for implementing the law in the ratio of
65 to 35 between the centre and the states, and a ratio of 90 to 10 for the north-
eastern states.[19]
However, in mid 2010, this figure was upgraded to Rs. 2310 billion, and the center
agreed to raise its share to 68%.[18]
There is some confusion on this, with other media reports stating

5. that the centre's share of the implementation expenses would now be 70%.[20] At that rate, most
states may not need to increase their education budgets substantially.
A critical development in 2011 has been the decision taken in principle to extend the right to
education till Class X (age 16)[21] and into the preschool age range.[22] The CABE committee is in the
process of looking into the implications of making these changes.
The quality of education provided by the government system is not good.[33] While it remains the
largest provider of elementary education in the country forming 80% of all recognised schools, it
suffers from shortages of teachers, infrastructural gaps and several habitations continue to lack
schools altogether. There are also frequent allegations of government schools being riddled with
absenteeism and mismanagement and appointments are based on political convenience. Despite
the allure of free lunch-food in the government schools, many parents send their children to private
schools. Average schoolteacher salaries in private rural schools in some States (about Rs. 4,000 per
month) are considerably lower than that in government schools.[34] As a result, proponents of low
cost private schools, critiqued government schools as being poor value for money.
Children attending the private schools are seen to be at an advantage, thus discriminating against
the weakest sections, who are forced to go to government schools. Furthermore, the system has
been criticised as catering to the rural elites who are able to afford school fees in a country where
large number of families live in absolute poverty. The act has been criticised as discriminatory for not
addressing these issues. Well-known educationist Anil Sadagopal said of the hurriedly-drafted act:
It is a fraud on our children. It gives neither free education nor compulsory education. In fact,
it only legitimises the present multi-layered, inferior quality school education system where
discrimination shall continue to prevail.[29]
Entrepreneur Gurcharan Das noted that 54% of urban children attend private schools, and this
rate is growing at 3% per year. "Even the poor children are abandoning the government schools.
They are leaving because the teachers are not showing up."[29]
However, other researchers
have countered the argument by citing that the evidence for higher standards of quality in private
schools often disappears when other factors (like family income, parental literacy- all correlated
to the parental ability to pay) are controlled for.
FDI IN RETAIL
Foreign direct investment (FDI) is a direct investment into production or business in a country by
an individual or company of another country, either by buying a company in the target country or by
expanding operations of an existing business in that country. Foreign direct investment is in contrast
to portfolio investment which is a passive investment in the securities of another country such
as stocks and bonds.

6. The rapid growth of world population since 1950 has occurred mostly in developing countries.[citation
needed]
This growth has been matched by more rapid increases in gross domestic product, and thus
income per capita has increased in most countries around the world since 1950. While the quality of
the data from 1950 may be of question, taking the average across a range of estimates confirms
this. Only war-torn and countries with other serious external problems, such as Haiti, Somalia, and
Niger have not registered substantial increases in GDP per capita. The data available to confirm this
are freely available.[6]
An increase in FDI may be associated with improved economic growth due to the influx of capital
and increased tax revenues for the host country. Host countries often try to channel FDI investment
into new infrastructure and other projects to boost development. Greater competition from new
companies can lead to productivity gains and greater efficiency in the host country and it has been
suggested that the application of a foreign entity’s policies to a domestic subsidiary may improve
corporate governance standards. Furthermore, foreign investment can result in the transfer of soft
skills through training and job creation, the availability of more advanced technology for the domestic
market and access to research and development resources.[7] The local population may be able to
benefit from the employment opportunities created by new businesses.[8]
India[edit]
Foreign investment was introduced in 1991 under Foreign Exchange Management Act (FEMA),
driven by then finance minister Manmohan Singh. As Singh subsequently became the prime
minister, this has been one of his top political problems, even in the current times.[12][13] India
disallowed overseas corporate bodies (OCB) to invest in India.[14] India imposes cap on equity
holding by foreign investors in various sectors, current FDI limit in aviation sector is maximum
49%.[15]
Starting from a baseline of less than $1 billion in 1990, a 2012 UNCTAD survey projected India as
the second most important FDI destination (after China) for transnational corporations during 2010–
2012. As per the data, the sectors that attracted higher inflows were services, telecommunication,
construction activities and computer software and hardware. Mauritius, Singapore, US and UK were
among the leading sources of FDI. Based on UNCTAD data FDI flows were $10.4 billion, a drop of
43% from the first half of the last year
How technology can benefit banking industry
Overview of Technology's Effect
on the Banking Industry

7. by Ronald R. Graczyk
Twenty years ago, a bank was the building you visited to make a deposit or
withdrawal. Its towering marble columns brought to mind the ancient wisdom and
stability of Rome or Athens. But if you walk the streets of Rome or Athens today, you
see that the Coliseum and the Parthenon have crumbled with the inundations of
successive societies . The more traditional notion of a bank also crumbles, in large
part due to the pounding waves of modern technology. But rather than being left as a
monument to the past, the banking industry seeks to be rebuilt through this same
technology which washes it away.
The dissemination of technology into society has enabled various financial-services
companies or divisions of companies to lure customers from banks. Banks have lost
much of the auto loan market to Ford, General Motors, and other members of the auto
industry. AT&T has become one of the larger players in the recently expanded credit
card market. Employee credit unions are now a significant player in consumer
banking.
Despite losses in their traditional roles, banks are facing new opportunities and
markets created by technological developments. Three significant areas of
development--Imaging Technology, Electronic Data Transfer (EDT), and Smart Cards
and virtual banking--work individually and together to transform banking's role and
appearance in society.
Imaging Technology (Electronic Check Presentment)
Physical transfer of paper checks between retailers and banks, and between banks,
limits this payment's potential effectiveness. Check-fraud risk, whether due to
insufficient funds or actual fraudulent checks, has been a significant expense faced by
banks and retail businesses. In addition, handling costs and lost interest resulting from
the transference were also noteworthy expenses. Electronic Check Placement (ECP)
was developed to combat fraud initially, but it has also had a major impact on the
other two costs.
ECP separates the payment information on the check from the actual paper document.
A depositing bank uses the Magnetic Inc Character Recognition (MICR) from the
check to identify and transmit payment information to the paying bank. The paying
bank can then notify the depositing bank which checks are "fraudulent," nipping the
fraudulent process at an early stage, which also helps reduce handling costs. Funds
need no longer be withheld until the paper document is transferred: interest can be
earned by the depositing bank from the moment of electronic transfer. Plus, EPC

8. enables fewer errors that result from miscalculations and fewer mistakes made in
transference of information.
As powerful the effects of ECP may be, imaging technology opens further
opportunities through its elimination of and consolidation of paper documents.
Signatures, handwritten payment information, and MICR information can be
transferred "visually," preventing a significant amount of fraud, and saving paper and
handling costs. But this is only the beginning of the changes that imaging offers. The
greatest opportunity lies in integration of all of the documents related to a customer on
a single database. Not only will this reduce the material and storage and retrieval costs
associated with paper documents, but it will allow banks to serve customers more
quickly and more efficiently.
Electronic Data Transfer
Closely related to ECP and Imaging is Electronic Data Interchange (EDI). EDI is a
process where by companies can make electronic payments directly, without a human
interface. Transactions are sped up, and many of the same benefits as are under ECP
and Imaging are realized, including reduced error and reduced handling costs. Labor
costs can be significantly reduced because fewer people are needed to process the
bank's daily business transactions.
Banks will be able to charge firms (and other banks) fees for EDT service. As EDT
service is expanded into new areas, rather than merely replacing other forms of bank-
managed payment, its fees will help to strengthen banks' financial position. Many
banks have suffered large financial losses in recent years due to fluctuations in the
interest rates. Because of this, Banks have been moving away from interest-sensitive
income, and more toward fee income like that generated by EDT services.
Smart Cards and Virtual Banking
The proliferation of ATMs and the potential of Internet banking services move
banking from the columned buildings of Main Street to virtually anywhere. To date,
the lack of a safe, effective payment system has kept virtual banking from spreading
at an even faster rate, but Smart Cards may change that. Smart Cards are credit-card-
sized plastic cards with a microprocessor chip. These cards can hold and release a
stored amount of money, and they can access or manipulate information or cash.
Not only can this technology improve customer service through more timely and more
flexible service (note how technology has helped shift the definition of "service" from
a personal interaction to a specific manipulation or a degree of accessibility), but
Smart Cards can generate new revenues for banks. The credit card presently serves

9. customers over a wide range of transactions: it can be used to purchase durable and
non-durable goods, entertainment, and long-distance communication, for example.
Along with this wide-spread use, however, comes the constant threat of credit card
fraud, either through stolen cards or card numbers, or through a customer's
overcharging with a card and not paying off the balance. Smart cards improve on the
credit card by diminishing the threat of fraud and by allowing an even wider range of
use for the card. A Personal Identification Number (PIN) associated with a Smart
Card can help prevent someone other than the intended user from using the card. In
addition, since Smart Cards either contain or directly access a "cash" balance instead
of purchasing on credit, customers are less likely to overcharge with the cards.
Besides reducing fraud, Smart Cards provide other opportunities for use. They expand
the range of transactions to include financial services such as securities market
manipulations, mortgage and loan payments, and insurance transactions. This secure
method of payment opens greater opportunities for information and payment
interactions across the Internet (which helps to further increase/disintegrate the
bounds of the bank). The cards can hold encryption and authorization data to be used
as access keys into information in businesses, on (new-and-improved) ATMs, and
across the Internet. The microprocessors will allow Cards to hold 32K of memory
within the next two years. This will enable them to be used as information managers
by linking payment systems together with a wealth of personal records and outside
sources of information.
Possibly the greatest advantage that Smart-card technology provides to banks is this
wider range of society's transactions in which the bank can participate. As Smart
Cards replace cash, credit cards, and many of the check purchases, banks can earn
fees on a greater percentage of society's transactions. Banks can be in a stronger
income-producing position than even the IRS in that it will immediately collect its
taxes/fees at the point of sale, and it will collect taxes/fees on transactions that even
the IRS does not collect on [e.g., tax-free purchases like milk and meat and Oreo
cookies(!)]. As was previously mentioned, with banks looking to secure themselves
from interest-rate fluctuations, fee-based income such as those generated by Smart
Cards are especially desired.
Technology's Shift of Banking
Even stronger than the individual effects of various technologies on the banking
industry will be their combined effect. Just as the face of banking is changing, so is its
core business shifting. Traditionally, banking has been in the financial services
business; and more precisely, it has been in the saving and loan business (to put it
coarsely). Changes in technology and the competitive environment, combines with
changes in the regulatory environment, are widening banking's financial focus to

10. include securities investments and insurance services. But of even greater impact may
be banking's shift toward being an information processor.
Imaging Technology, EDI, Smart Cards (with the Internet), and other technological
advances place banks in the position of being producer, organizer, and disseminator of
information in society. Not only can the banking industry determine access to and
payment for information and information processing, but banks can move more into
the consulting business. A bank can work with an individual firm (or an industry) to
develop an information, payment, and financing system most appropriate for the
business. For example, a bank could work with a hospital to develop an electronic
filing system that would use imaging technology to coordinate "images" of
handwritten prescriptions and doctor's notes, medical reports, billing records, and
patient identification information. An EDI system could be set up to speed billing
between the hospital and insurance companies (and their respective bank accounts).
Smart Card technology could allow quick identification of patients' health data and
payment information; plus, it could be used to allow medical personnel (and patients)
quality access to personal financial information.
This shift in core concentration also posses the danger of banks lacking a central focus
because they are pulled between the financing and the information-processing
directives. Changes in society have placed banking on the crest of the technological
wave, leaving banks to negotiate the wave, to determine what role they will play in
the next generation.
Problems of unemployment in india
The problem of unemployment means the problem of providing work to those who are willing to
work. A large number of educated and uneducated people, who are capable of work and are also
willing to do it, roam here and there without any job. So the problem has assumed an acute form.
There is a large number of people who are either partly employed or wholly unemployed. The lives of
such people, as well as of their families, are extremely miserable. India cannot claim to be a welfare
state so long as this problem remains unsolved. Before discussing the ways and means of solving this
problem, let us first examine the causes which have created it.
It is a well known fact that ours is a thickly populated country. The population is increasing by leaps
and bounds. But jobs and gainful avenues cannot be created in the same proportion. So, naturally, a
large section of the people is left unemployed. Moreover, our education system is also responsible for
this problem. The problem of educated unemployment is peculiar to India. India is only country in
the world where even highly educated persons fail to to get employment. Every year thousands and

11. thousands of graduates pass out of schools and colleges. They are unfit for any work, except office
work. All of them cannot be absorbed in services. This increases employment.
The problem of unemployment is mainly an economic one. It is essential, therefore, that the
economic policy of the country be overhauled. In our country, labor is available in abundance. We
should provide avenues for employment for them through cottage and small-scale industries. besides
this, stress must be laid on family planning. Every effort must be made to check the rapid rise in
population. This will help a great deal in the solution of this problem.
More stress should be laid on technical and vocational education. The present bookish education
which produces clerks alone should be restricted. When people get technical and vocational
education, they will not hanker(to desire earnestly) after services on completing their education, they
will come out well prepared to stand on their own legs. The problem will be half-solved, if this
suggestion is implemented.
Our joint-family system is gradually breaking down. This may be a good social change from certain
points of view, but front the point of view of unemployment it is harmful. When we live jointly, some
family members get employed in family professions. One who gets a job, supports others who may
not be equally fortunate. We should not be hasty in breaking down this system.
Our country cannot advance economically, politically, or socially, unless this problem is solved.
Many a social evil is spread through the unemployed. Frustration, drug-addiction, even suicides are,
by and large, the evil results of unemployment. Unrest and disorder increase in society. It is,
therefore, the duty of the Government to make every possible effort to solve this problem. However,
we may stress again that the problem cannot be solved till the population explosion is not checked.
The two are closely inter-linked, and the people must be made to realize this through and adequate
process of social education. We are happy to note that the government has come out with a plan to
provide employment to educated young men during the ninth plan period.
Unemployment is serious problem that our government faces. Our leaders are trying their
utmost best to solve it wisely. If it is not solved sooner, a social revolution may take plea to
have its solution. The main cause of unemployment is the repaid growth of populations.
Since independence the populations of India has increased by threes times its total. When
people multiply, there raises the problems of unemployment and it becomes difficult for
government to provide employment to a sufficient number of people. As a matter of
principle it becomes the duty of government to provide employment to all as far as possible
and we are blessed that our government is taking keen interest to solve this series problem
of today. As the growth of populations is going unchecked, jobs and services in a given field
commonly remains insufficient. When our youths do not find employment despite their best
efforts, they get irritated and feel disappointed.
There are three types of unemployment, viz., labor class who are not educated, educated
persons without possessing any technical qualifications and technical persons such as

12. engineers and technical. Let us implore them one by one.
In case of labor class there are lakhs of people who earn their livelihood daily and gather
themselves on some specific place just to find daily employment somewhere. They are not
disappointed to a great extends. Sometimes they find employment and sometimes they
return to their houses without finding employment. They are habituated to adjust
themselves with the circumstance, though they also become irradiated and disappointed
sometimes when problems of food and clothing arise before them. This is the case with
general labor of the cities. As regards the agriculture labor of the village, they’re also not
disappointed to a great extent as they find seasonal employment very easily in the farms
and fields of big farmers.
Since the number of educated persons is increasing day by day, we are not in a position to
afford a venue of work for this growing number. As such our educated persons are very
much disappointed when they wander dark roads in search of employment. As they do not
possess any technical and practical training, they only try to find clerical job which are not
sufficiently according to the increasing number of educated persons. It has become a very
ticklish problem which is being faced by our government.
As regards educated persons, possessing technical qualifications, they tend to be frustrated
when they do not find employment despite their best qualifications. There can be in no two
opinions that they find their employment very easily on the merits of their technical
qualifications, but according to the increasing number of such educated persons also
become victims of unemployment. Education is a very good thing and one must be educated
but the irony of it is that when we offer educations to young people we are not in position to
offer jobs to them. This is the very cause of disappointment among our educated youths.
The educated youth should change their mind also and they should think of self-
employment, rather than searching jobs and services hither and there wasting their energy.
In this way very serious problem of unemployment may be saved to a great extent.
RBI and its role in economy
RBI & its role in the economy
Posted on December 23, 2012 by Way2Bank
In the last post we had covered about banking and banking structure in India. This post we will talk about RBI and
its role in the economy.

13. The Reserve Bank of India (RBI) is the central banking and monetary authority of India, and also acts as
theregulator and supervisor of commercial banks.
As the central bank of the country, the RBI performs a wide range of functions; particularly, it:
1. Acts as the currency authority – The Reserve Bank manages currency in India. The Government, on the advice
of the Reserve Bank, decides on the various denominations. The Reserve Bank also co-ordinates with the
Government in the designing of bank notes, including the security feature. The Reserve Bank estimates the quantity
of notes that are likely to be needed denomination-wise and places the indent with the various presses through the
Government of India.
The Reserve Bank derives its role in currency management on the basis of the Reserve Bank of India Act, 1934. All
the currency notes except one rupee note are issued by RBI. The RBI act permits RBI to issue notes in the
denominations of rupees 2, 5, 10, 20, 50, 100, 500, 1000, 5000, 10000. Currently 5000 and 10000 rupee notes are
not in circulation.
2. Controls money supply and credit – RBI controls the supply of money in the economy by exercising its control
over interest rates in order to maintain price stability and achieve high economic growth. RBI takes into account the
following monetary policies to control money supply and credit -
a) Open Market Operations
b) Cash Reserve Ratio
c) Statutory Liquidity Ratio
d) Bank Rate Policy
e) Repo Rate and Reverse Repo Rate
Each of the five points will be discussed in detail in a separate post.
3. Manages foreign exchange – RBI ensures that short term fluctuations in trade do not affect the exchange rate. In
order to maintain stability in exchange rates, RBI enters into foreign exchange transactions

14. 4. Serves as a banker to the government –RBI acts as the banker, agent and advisor to the Government of India. It
accepts payment for the account of the union and also makes payment on the behalf of government.
5. Acts as the banker of banks – As the bankers’ bank, RBI holds a part of the cash reserves of banks, lends the
banks funds for short periods, and provides them with centralised clearing and cheap and quick remittance facilities.
6. Supervises banks – RBI exercises powers of supervision, regulation and control over commercial banks. The
bank’s regulatory functions relating to banks cover their establishment (i.e. licensing), branch expansion, liquidity of
their assets, management and methods of working, amalgamation, reconstruction and liquidation.
The Reserve Bank of India (RBI) has multiple functions. It is responsible for all the notes that we have. It is responsible for
the entire notes and coins that are in circulation. The Reserve Bank of India is also the regulator of the banking system. It is
also responsible for setting the interest rates in India. Our monetary policy as we know it, Reserve Bank of India determines
which levels that you and me as consumers borrow or favours receive received for the interest rate setting for an economy is
also determined by the Reserve Bank of India. The RBI also determines what should be the money supply growth in the
country. If it wants to boost demand, if it wants growth to pick up it can inject a lot more of money into the system to
generate growth. On the other hand, if it wants the economy to slow down because it believes there is excess demand then
it can tighten the money supply in the system and therefore try to bring about a slow down in the economy. There are
multiple factors to what an Reserve Bank Of India does, interest rate setting being the most important for us in the financial
market.
IMPORTANCE OF EDUCATION IN DEVELOPMENT OF COUNTRY
Importance of Education
The importance of learning in enabling the individual to put his potentials to optimal use
is self-evident. Without education, the training of the human minds is incomplete. No
individual is a human being in the working world until he has been educated in the
proper sense. Now I'm not saying you're not a human being without education. The
mind was made to be trained and without education, a person is incomplete in that
sense. Education makes man a right thinker and a correct decision-maker. It achieves
this by bringing him knowledge from the external world, teaching him to reason, and
acquainting him with past history, so that he may be a better judge of the present.
Without education, man, as it were, is shut up in a windowless room. With education, he
finds himself in a room with all its windows open to the outside world. In other words,
people who are not educated have less opportunity to do what they want to do. A

15. person that gets a good education will become a more dependable worker, a better
citizen, and a stronger consumer. For example, people would rather higher an educated
man rather than a non-educated person. When looking at the long-term effects of an
education, our economy needs these educated people to know how to keep the
economy efficient and not get into a bind in the future. Someone said if they were Bill
Gates ( Since he is very educated), would he understand the economy better? Of
course not but that's not what I am trying to say. How advanced do you think the
computer would be without him? The more educated someone is, the more knowledge
one obtains on different subjects. Each person has a different level of understanding for
each subject there is to learn about. That is why there are experts in every field you
could go into and each part is a piece of the puzzle that makes this world/economy
grow. Since technology has come as far as it has in the past decades, there are
important skills that must be learned...
Education is milestone of every type of development . Education provides all knowledge to do any
work with systematic way . With education any country develop his economy and society . Well-
educated population lives with silence and calm . They love with each other and believe in social
community . Education develops the personality of the youth of nation . Education makes people
perfect by providing large number of skills . Education creates awareness in the population that makes
them self-reliance and self-dependent . Education is such source that increases if it is distributed ,
Large number of International NGO are providing free education to the orphan students of developing
Country . SOS Children Village is one of example of them . I have provided education to students of
SOS children Village for many year in the beginning of my teaching Career . Education has the power
to create stability and equality in different religions , caste people ..
CORRUPTION IN POLITICS
Political corruption is the use of powers by government officials for illegitimate private gain. An
illegal act by an officeholder constitutes political corruption only if the act is directly related to their
official duties, is done undercolor of law or involves trading in influence.
Forms of corruption vary, but include bribery,extortion, cronyism, nepotism, patronage, graft,
and embezzlement. Corruption may facilitatecriminal enterprise such as drug trafficking,money
laundering, and human trafficking, though is not restricted to these activities. Misuse
of government power for other purposes, such as repression of political opponents and

16. general police brutality, is not considered political corruption. Neither are illegal acts by private
persons or corporations not directly involved with the government.
The activities that constitute illegal corruption differ depending on the country or jurisdiction. For
instance, some political funding practices that are legal in one place may be illegal in another. In
some cases, government officials have broad or ill-defined powers, which make it difficult to
distinguish between legal and illegal actions. Worldwide, bribery alone is estimated to involve over 1
trillion US dollars annually.[1] A state of unrestrained political corruption is known as a kleptocracy,
literally meaning "rule by thieves".
Some forms of corruption – now called “institutional corruption”[2] – are distinguished from bribery
and other kinds of obvious personal gain. A similar problem of corruption arises in any institution that
depends on financial support from people who have interests that may conflict with the primary
purpose of the institution.
In politics, corruption undermines democracy and good governance by flouting(comment) or even
subverting formal processes. Corruption in elections and in the legislature reduces accountability
and distorts representation in policymaking; corruption in the judiciary compromises the rule of law;
and corruption in public administration results in the inefficient provision of services. It violates a
basic principle of republicanism regarding the centrality of civic virtue. More generally, corruption
erodes the institutional capacity of government if procedures are disregarded, resources are
siphoned off, and public offices are bought and sold. Corruption undermines the legitimacy of
government and such democratic values as trust and tolerance. Recent evidence suggests that
variation in the levels of corruption amongst high-income democracies can vary significantly
depending on the level of accountability of decision-makers.[3
In the private sector, corruption increases the cost of business through the price of illicit payments
themselves, the management cost of negotiating with officials and the risk of breached agreements
or detection. Although some claim corruption reduces costs by cutting bureaucracy, the availability of
bribes can also induce officials to contrive new rules and delays. Openly removing costly and lengthy
regulations are better than covertly allowing them to be bypassed by using bribes. Where corruption
inflates the cost of business, it also distorts the playing field, shielding firms with connections from
competition and thereby sustaining inefficient firms.[4]
Corruption also generates economic distortions in the public sector by diverting public investment
into capital projects where bribes and kickbacks are more plentiful. Officials may increase the
technical complexity of public sector projects to conceal or pave the way for such dealings, thus
further distorting investment.[5]
Corruption also lowers compliance with construction, environmental,
or other regulations, reduces the quality of government services and infrastructure, and increases
budgetary pressures on government.

17. Economists argue that one of the factors behind the differing economic
development in Africa and Asia is that in Africa, corruption has primarily taken the form of rent
extraction with the resulting financial capital moved overseas rather than invested at home (hence
the stereotypical, but often accurate, image of African dictators having Swiss bank accounts).
InNigeria, for example, more than $400 billion was stolen from the treasury by Nigeria's leaders
between 1960 and 1999.[6]University of Massachusetts Amherst researchers estimated that from
1970 to 1996, capital flight from 30 sub-Saharancountries totaled $187bn, exceeding those nations'
external debts.[7] (The results, expressed in retarded or suppressed development, have been
modeled in theory by economist Mancur Olson.) In the case of Africa, one of the factors for this
behavior was political instability, and the fact that new governments often confiscated previous
government's corruptly obtained assets. This encouraged officials to stash their wealth abroad, out
of reach of any future expropriation. In contrast, Asian administrations such as Suharto's New
Order often took a cut on business transactions or provided conditions for development, through
infrastructure investment, law and order, etc.
Corruption is often most evident in countries with the smallest per capita incomes, relying on foreign
aid for health services. However, political exploitation of these funds have been noted to occur in the
past, especially in the sub-Saharan African nations, where it was reported in the 2006 World Bank
Report that about half of the funds that were donated for health usages, were never invested into the
health sectors or given to those needing medical attention. Instead, they were expended through
“counterfeit drugs, siphoning off of drugs to the black market, and payments to ghost employees”.
Ultimately, there is a sufficient amount of money for health in developing countries, but this cash is
given to the wrong hands, which leads to political and governmental corruption that takes away
medical attention necessary for the citizens of these regions, and rather, used for personal gain.[8]
Corruption facilitates environmental destruction. Corrupt countries may formally have legislation to
protect the environment, it cannot be enforced if officials can easily be bribed. The same applies to
social rights worker protection, unionizationprevention, and child labor. Violation of these laws rights
enables corrupt countries to gain illegitimate economic advantage in the international market.
The Nobel Prize-winning economist Amartya Sen has observed that "there is no such thing as an
apolitical food problem." While drought and other naturally occurring events may
trigger famine conditions, it is government action or inaction that determines its severity, and often
even whether or not a famine will occur. Governments with strong tendencies
towardskleptocracy can undermine food security even when harvests are good. Officials often steal
state property. In Bihar, India, more than 80% of the subsidized food aid to poor is stolen by corrupt
officials.[9]
Similarly, food aid is often robbed at gunpoint by governments, criminals, and warlords
alike, and sold for a profit. The 20th century is full of many examples of governments undermining
the food security of their own nations – sometimes intentionally.

18. IMPACT OF ECONOMIC TERRORISM
he term economic terrorism is strictly defined to indicate an attempt at economic destabilization by
a group.[citation needed]
More precisely, in 2005 theGeneva Centre for Security Policy defined economic
terrorism in the following terms:
Contrary to "economic warfare" which is undertaken by states against other states, "economic
terrorism" would be undertaken by transnational or non-state actors. This could entail varied,
coordinated and sophisticated or massive destabilizing actions in order to disrupt the economic and
financial stability of a state, a group of states or a society (such as market oriented western
societies) for ideological or religious motives.
These actions, if undertaken, may be violent or not. They could have either immediate effects or
carry psychological effects which in turn have economic consequences.[1]
In a different usage of the expression, socialist writers accuse the neo-liberal policies of being a form
of 'economic terrorism'.[2]:2073
Impact on Supply Chains[edit]
Terroristic attacks against ports and land borders cause extra measures to be implemented to
ensure the safe arrival of the product. These measures force the cost of exporting and importing
goods to increase. Emerging economies are the most affected, because the slowing of exports and
imports will affect the country’s ability to combat poverty. An increase in poverty can cause revolts
among the population and possible political destabilization, forcing an even greater increase in
poverty.[3]
Due to piracy governments and maritime industries must take preventative measures. The United
States Maritime Administration says, “ These actions may include a larger military presence in high-
risk areas, rerouting ships to bypass the Gulf of Aden, paying higher insurance premiums, hiring
private security guards, and installing non-lethal deterrent equipment.” The cost of these
preventative measures are passed on to consumers and tax payers, ultimately directing money
away from other areas of the economy.[4]
ECONOMIC IMPACT OF TERRORISM
Terrorism imposes a significant economic effects on societies and will not only lead to direct material
damage, but also to long term effects on the local economy. The identification and the estimation of
these economic effects of terrorism has received broad attention in economic literature and research,
especially since the events around 9/11.

19. Economists use various definitions and terminology for categorising the economic impact of terrorism.
The two main categories are the primary and secondary economic impact of terrorism, also referred to as
direct and indirect economic effects[2]
Primary economic impact of terrorism
Primary economic impact of terrorism “refers to the effects arising from the immediate aftermath of a
terrorist event” . These effects include the physical destruction of urban objects, and the human
casualties (injuries and losses of human life). Primary economic impact of terrorism refers to the effects
arising from the immediate aftermath of a terrorist event[3]. These effects include the physical destruction
of urban objects, and the human casualties (injuries and losses of human life).
Micro-economic impact
On a micro-economic[4] level, terrorist events influence three main types of economic actors, namely:
1. individual households,
2. the private sector (companies), and
3. the public authorities (see table below).
Household level Companies Public sector
There is not much available
literature when it comes to the
primary costs that households
experience due to terrorism
itself[3]. Surveys in France, the
Republic of Ireland and the UK
illustrate that terrorist attacks
have a negative effect on
reported life satisfaction[5]. Other
empirical research found out that
terrorism will produce more fear
than other, more probable
risks[6].
Businesses and firms, especially the
ones operating to or from insecure
countries, are frequent victims of
terrorist events. According to the
German security economists
Schneider, Brück and Meierrieks
(2010), this is also due to the fact
that public buildings are better
protected in general. The actual
direct losses of terrorism depend on
the nature of the attack (property
damage or ransom payments for
hostages), but overall, Enders and
Sandler (2008)[7]conclude that most
sectors recover quickly, given that
the economy does not face
sustained terrorist attacks, like in
Israel and Northern Ireland.
There is not much literature
available on this subject. The
costs arising from physical
destruction from small-scale
terrorist events are not
structurally measured, except for
major events like 9/11 and the
terror events in London and
Madrid. Costs for the public
sector arise whenever public
infrastructure or buildings are
destroyed (including military
structures and equipment), but
are generally considered to be
relatively small[3]. Moreover,
terrorism forces local and
national authorities to spend
billions on the prevention of
terrorism and the detection,
prosecution and punishment of
terrorists.

20. Due to a terrorist event, these economic agents suffer from impact through losses in physical and human
capital, and, at the same time, they themselves may influence the economy through their immediate
responses to the violent shock that occurred[3].In general, the direct economic losses of terrorism do not
bulk very large[8], with an exception for the unprecedented magnitude of the 9/11 attacks[9]. Terrorism in
general, and especially in Europe, can, according to Schneider et al. (2010), be characterized as small
scale, but frequent events, more focused on objects with a symbolic or political value and not so much on
economic symbols like the World Trade Centre in New York.
The economic impact of terrorism can be calculated from a variety of perspectives. There are direct
costs to property and immediate effects on productivity, as well as longer term indirect costs of
responding to terrorism. These costs can be calculated quite minutely; for example, calculations have
been made about how much money would be lost in productivity if we all had to stand in line at the
airport for an extra hour every time we flew. (Not as much as we think, but the line of reasoning
finally gave me a rationale for the unreasonable fact that first class passengers wait less. Maybe
someone is guessing, rightly, that an hour of their time costs more than an hour of mine).
Economists and others have tried to calculate the economic impact of terrorism for years in areas
beset by attacks, such as Spain's Basque region and Israel. In the last several years, most analyses of
terrorism's economic costs begin with an interpretation of the costs of the September 11, 2001
attacks.
The studies I examined are fairly consistent in concluding that the direct costs of the attack were less
than feared. The size of the American economy, a speedy response by the Federal Reserve to
domestic and global market needs, and Congressional allocations to the private sector helped cushion
the blow.
The response to the attacks, however, has been costly indeed. Defense and homeland security spending
are by far the largest cost of the attack. However, as economist Paul Krugman has asked, should the
expenditure on ventures such as the Iraq war really be considered a response to terrorism, or a
"political program enabled by terrorism."
The human cost, of course, is incalculable.
Direct economic impact of terrorist attack
The direct cost of the September 11 attack has been estimated at somewhat over $20 billion. Paul
Krugman cites a property loss estimate by the Comptroller of the City of New York of $21.8 billion,
which he has said is about 0.2 % of the GDP for a year ("The Costs of Terrorism: What Do We Know?"
presented at Princeton University in December, 2004).
Similarly, the OECD (Organisation for Economic Cooperation and Development) estimated that the
attack cost the private sector $14 billion and the federal government $0.7 billion, while clean-up was
estimated at $11 billion. According to R. Barry Johnston and Oana M. Nedelscu in the IMF Working

21. Paper, "The Impact of Terrorism on Financial Markets," these numbers are equal to about 1/4 of 1
percent of the US annual GDP--approximately the same result arrived at by Krugman.
So, although the numbers by themselves are substantial, to say the least, they could be absorbed by
the American economy as a whole.
Economic Impact on Financial Markets
New York's financial markets never opened on September 11, and reopened a week later for the first
time on September 17. The immediate costs to the market were due to damage to the
communications and other transaction processing systems that had been located in the World Trade
Center. Although there were immediate repercussions in world markets, based on the uncertainty
engendered by the attacks, recovery was relatively swift.
 Impact on cultural mindset on hiv patients
Although changing in size, structure and function, the African family has persistently
maintained its place as the central human social unit. Beyond the traditional African
family—whether in the nuclear or the extended form—is a network of people, most of
whom are connected by kin or blood relationships, termed the clanship system.
Patterns of family treatment and care are deeply embedded in this wider Kinship
system. The AIDS epidemic has caused adverse psychosocial and economic
consequences leading to change in dthe family structure, and thus disturbed the
capacity of the nuclear and extended family to respond to the needs of members
afflicted by HIV and AIDS.
Hence, the clanship system could become the locus of AIDS activity designed to ensure
the well-being and continuity of the family where its leadership undertakes to sustain,
to reorganize, or to create wholly m families or structures among populations being
devastated by AIDS. New associations based on common emotional bonds of curing
beyond kinship ties will be necessary to support some vulnerable members. However,
for such w prove durable in the troubled socio-economic context of Sub-Saharan
Africa, these will need strong link to or derive their legitimacy from the resilient
traditional social network, the African kinship system.
Paid news in media- its bad impacts

22. Media is the mirror of our society which delivers economic and political transparency through
various channels like online , print and electronic.there is huge impact of paid news which
distracts people thoughts.
Corporate houses and public relation agencies are using paid news to promote their
product and services which are the example of paid news.
IMPACTS OF PAID MEDIA
 Decrease in credibility of various media channels.
 Conflicts of news and facts in various media channels. Each channels will be showing
different facts.
 Lack of useful and informative content
 Promotion of health hazards products like tobacco
 Bad impact of thought process of children
In my opinion there should be strict laws and public awareness to improve the
transparency in the media houses. Also public relation agencies and media houses
shouldn’t promote hazards products. media should also recognize what they are doing
and what has its impact on society. Therefore media houses should take responsibility
that they are reliable and help the society by means of various channels.
WAYS TO ELIMINATE
 Mention that news is paid.
 Informative content is more important than paid content
 No media house should take money to promote product or service.
 Never mix paid news with other sections .
The emergence of Media Corporation, through growing cross media
ownership is having their impact on media's public service commitments. In
recent times, the Indian media and its journalistic practices have been
criticised for breaking the trust of the public. Indian media have successfully
succeeded in growing their economy through cross-ownership and
advertorials. Under the influence of profit making, commercial interests which
are controlling the news content, as editorial contents are being sold like other
commodities. This commercialization of the media content is evident in
phenomena like paid news.
News is meant to be objective, fair and unbiased. This is the only difference
between news and opinions. But, recently, the lines between news and
advertisements are blurring because paid advertisements are deceived as
news which favours a particular organization or a person by selling editorial
spaces. The media organizations misguide the readers by providing no true

23. information to them. By doing this, the media questions its own credibility and
is fast losing the trust of the society. The readers/viewers cannot distinguish
the difference between a news report and advertorials.
This paper argues that the media is no longer the fourth estate of journalism
and has become like any other marketable product with reference to paid
news. The face of journalism in India has changed. The press is mostly owned
and controlled by the 'capitalist class' (i.e. the rich and powerful in society;
opinion leaders; gatekeepers), who can use the press to report facts which
are convenient to them. Over years, the ownership pattern, organizational
structure and the content of the newspapers have changed. They are on sale
for paid news and private treaties. In addition, this paper also tires to observe
the impacts and analyse the responses of the media, civil society and the
state on paid news.
Paid News and the Private Treaties Phenomenon
1“Paid news is run to pass off an advertisement, apiece of propaganda and
advertisement...pass that as news, pretend that it is news that is “paid news” –
P. Sainath. It is a deal signed by the media organizations with an individual
especially corporate houses and the candidate standing for elections,
assuring them a fixed amount of coverage through advertisements and news
reports in favour of them. In addition, additional fee can be charged to run
negative campaign against their rivals. The paid news operation is done
secretly and no disclosure is made before such news printed or broadcasted.
Journalists willing or otherwise practice this phenomenon on a large scale.
Journalists who do not wish to practice this phenomenon are either sacked
from their organizations or the individuals are denied coverage and also suffer
media blackouts.
2The advertisers, who are ever anxious to catch consumers off guard, believe
that 'simply there cannot be a better way of breaking into consumer mind
space than disguising the brand messages as news, which is more credible
and convincing than raw advertising,' says Santosh Desai, managing director
and CEO, Future Brands. Such content is priced more than the regular
advertising rates.
Importance of mentor in achieving goals
Mentoring is a professional activity, a trusted relationship, a meaningful commitment. The origins of mentoring can be
traced back to ancient Greece as a technique to impart to young men important social, spiritual, and personal values.
Mentoring as we know it today is loosely modeled on the historical craftsman/apprentice relationship, where young
people learned a trade by shadowing the master artisan. In the mid-70s, corporate America redefined mentoring as a
career development strategy. The concept of mentoring faculty and administrators is relatively new to higher

24. education and rare in information technology circles, where staff professional development often takes the form of
technical manuals and certifications. It is precisely this type of support organization, however, that needs a strong
foundation of mentoring to build and retain a healthy workforce that can react quickly to change and can develop,
adapt, and regenerate itself over time.
Mentoring relationships range from loosely defined, informal collegial associations in which a mentee learns by
observation and example to structured, formal agreements between expert and novice co-mentors where each
develops professionally through the two-way transfer of experience and perspective. Whether the relationship is
deemed formal or informal, the goal of mentoring is to provide career advice as well as both professional and
personal enrichment. For this chapter, we define a mentoring relationship as helping and supporting people to
"manage their own learning in order to maximize their professional potential, develop their skills, improve their
performance, and become the person they want to be."1
Subject: Mentoring tips on actions to achieve goals
Below, people with disabilities share their thoughts about how caring adults
like you can help young people with disabilities learn to take appropriate
actions to achieve goals. Reflect on their thoughts as you mentor young
people in our online community.
 The best way for anyone to teach anybody how to assert themselves is to
let them do it. (college student with Tourette's Syndrome, Panic
Disorder, and Epilepsy)
 Keep a positive attitude about the kids' goals, and encourage them to
meet those goals. When children don't meet them the first time, stay
positive and make sure they know that it's not over and they should
keep trying. (high school student with a mobility impairment)
 Offer encouragement to kids, but let them sometimes fail to get their
resiliency in shape before they are on their own in the real world.
(college student who is blind)
 I think kids need to realize that everyone experiences failure....It's
how you deal with failure that is important. (graduate student with a
hearing impairment)
 Create goals that have built-in flexibility, and allow room for some
trial and error. For example, when I decided to pursue a Ph.D., I
developed a backup plan just in case it didn't work out. I find having
a Plan A and a Plan B (and sometimes a plan C) really helps me adjust
when one goal is unattainable. Knowing that I have something to fall
back on relieves a lot of anxiety while I'm working toward my original
goal. (graduate student with a hearing impairment)
 Help your child learn to never give up. (high school student with a
brain injury)

25.  Remind them of times when they have accomplished something and how good
it felt. And help them figure out a way to complete the task by
suggesting alternate strategies or asking them to come up with
alternate methods. (Ph.D. candidate who is blind)
 Don't get over-protective—and do not let the disability color every
expectation. (computer scientist who is blind)
 Help kids set realistic (but not easy!) goals. Help children with
disabilities learn to do things independently in order to gain self-
confidence. (college student who is deaf)
 Be optimistic, never doubt abilities, be positive, and challenge kids.
Focus on the positive aspects, and help them set goals THEY want.
NEVER, EVER assume they can't do something. (college student with
speech and mobility impairments)
 I think the attitude of family, parents and grandparents, is very
important for how a child approaches life. My family always assumed I
could do a lot of things, and I've done quite a few. Basically, parents
need to support their child, push their child some without forcing the
child to do things that are counter to their own dreams, be available
for their child to talk to when setbacks occur, and so on. These
attitudes need to be present especially in social things because
failures there tend to be much more painful and difficult to overcome.
(college graduate who is blind)
 Parents can help their kids accept responsibility by taking
responsibility for their own actions. (Ph.D. candidate who is blind)
 Responsibilities must be given and consequences must be felt. If
responsibility isn't given, a child never learns how to handle it.
(college graduate who is blind)
 Always support and advocate for your child, but don't ever let them
think that it is not their problem. Include them in meetings you have
with teachers, doctors, and other people. That will teach them to
advocate for themselves. (high school student with a learning
disability)
 I think a good way to help kids accept criticism better is to always
present positive feedback first....then bring in the constructive
criticism. (graduate student with a hearing impairment)
 Encourage children to get out and meet people. They have to make
themselves known. Opportunity is much more likely to knock if it knows
the address. (college student who is blind)

26. IMPORTANCE OF INVESTMENT
Significance
Investment is the value of machinery, plants, and buildings that are
bought by firms for production purposes.
Investment plays six macroeconomic roles:
1. it contributes to current demand of capital goods, thus it
increases domestic expenditure;
2. it enlarges the production base (installed capital), increasing
production capacity;
3. it modernizes production processes, improving cost
effectiveness;
4. it reduces the labour needs per unit of output, thus potentially
producing higherproductivity and lower employment;
5. it allows for the production of new and improved products,
increasing value added in production;
6. it incorporates international world-class innovations and
quality standards, briging the gap with more advanced countries
and helping exports and an active participation to international
trade.
Composition
Although capital accumulation takes place in many institutional
sectors of the economy (firms, households, public sector,…), a
narrower definition is used in national accountancy.
Investment is just new capital accumulation in
business (both private and state-owned).
Household by convention do not invest, even if it does exist a
capital accumulation in cars, computers, electric appliances,
etc. that we include in their "cumulative bundle".
Public expenditure is partly devoted to roads, railways,
infrastructure, buildings (as for schools, hospitals,…). All this is
clearly capital accumulation whose utility will last over time. Still, it
is quite a common practice for investment in public sector being

27. considered zero by convention.
Investment is classified according to the degree of directness with
which it is linked to current and future sales:
1. inventories stock of finished goods, semi-manufactured goods,
and raw materials in commercial premises, storehouses and
producers' plants;
2. equipment for direct production of services and goods;
3. transport and auxiliary machineries;
4. office and general endowment for indirect workers and
management;
5. any long-lasting improvement in those items;
6. industrial plants and service buildings;
7. other buildings.
In today's world, investment in immaterial assets is getting more
and more important, as with the case of expenditure in Research &
Development, human capital, software and other areas.
Financial investments in shares, obligations and other financial
instruments are not considered as "investment" in a macroeconomic
1 `sense nor in national accountancy. The same is true for real
estate exchanges of used buildings (both residential and non-
residential).
When considering the issue of the creation and diffusion
of innovation through investment, a crucial distinction should be
made between complementary investments and competitive
investments.
Determinants
At firm level, investment is determined by expected benefits as
well as funds, both in term of availability and cost (interest rate).
Benefits relate to the effects of investment in terms of increased
value added, reducedcosts, larger production, higher
competitiveness. Hence, profits are expected to be higher, too. The

28. value over time of these benefits (and profits in particular) are
compaared to the investment costs.
The temporal profile of costs and revenues will be important in
the decision whether to undertake the investment or not.
In many decision processes and routines, the value over time of
benefits will be discounted through a subjective interest rate to
keep into account time distance and uncertainty. In others, the
decision will be based on more strategic and vital arguments. A new
vision of the competitive environment and of the global trends can
bring to invest in surprising directions.
Funds for investment can be obtained thanks to the following
items:
1. self-financing, in turn due to:
1.1. cumulated past profits;
1.2. injection of new financial capital from the owners;
1.3. amortization, i.e. accountancy allowance for past investment,
considered now ascurrent costs but not corresponding to any
current expenditure;
1.4. extension of equity by new shareholders, as it happens with
relatives sendingremittances to home business;
2. loans from banks and other financial institutions:
2.1. long-term credit at fixed or variable interest rate in domestic or
foreing currency;
2.2. short-term credit;
2.3. micro-credit in the case of very small business;
3. capital market finance, through the emission of obligations as
well as through the issue of shares in the stock market (primary
market). The following price fluctuation do not directly have any
impact on financing the firm. But it is true that further new
emissions of shares often require positively-oriented capital
markets.
4. seed money and expansion capital for new firms provided by
venture capitalists and private equity funds;

29. 5. public funds and incentives for investment from international,
national, regional, local institutions.
However, the empirical evidence of microdata shows
that investment - at micro level - is infrequent and lumpy.
There are periods in which firms decide not to invest and periods of
large investment episodes. For better understand the issues at
stake see this paper.
Investment expenditure is a bet on future. If the bet is lost, the
product does not find a remunerative market and much of the
investment expenditure turns out to be a sunk costthat cannot be
recovered. In the extreme case, investment is irreversible. Coupled
with true uncertainty, irreversibility becomes a fairly important
determinant of investment levels across industries, as this
paper points out.
In the IS-LM model, interest rates are considered the unique
determinant of investment. In fact, interest rates play three
distinct functions:
1. they influence the discounted value of net benefits over time;
2. they determine the cost of loans from banks and the required
rate of return for the owners and financing institutions;
3. they set the economic climate both for financial and real markets.
In all three function, a higher interest should trigger a lower
investment, since the present value of benefits will be lower,
finance costs higher and economic perspectives worse.
Still, there exists investments that are not based on interest rates
considerations. For instance, firms have usually a very restricted
number of investment projects, carrying them out when profitability
is well above zero. A small change in interest rate would have
simply no impact on each investment decision, thus on aggregate
level as well.
By contrast, the effect of large interest rate changes may be
highly asymmetric: astrong increase of interest rate can indeed
provoke a fall in investment dynamics whereas a similar decrease

30. may fail to induce investment, if real perspective benefits are
lacking.
Other determinants of investment should be considered as, for
instance, present and expected consumption and export.
Saturation of productive capacity represent a key references
for firms' decisions to invest. Expectations about future sales will
affect investment if the current capacity is not enough to match the
forecasted increase in demaned quantities and the firm is
committed to fulfill all orders. Given a ratio of fixed capital to sales,
the investment required would be (in a very simplified method of
estimation) this ratio times the new additional expected sales.
Furthermore, new technology innovation and the need
of imitating competitors' adoption of innovation can also force
firms to invest, in a process of diffusion that can be boosted by a
conducive tax environment, both in terms of tax breaks and pro-
diffusion-of-innovation tax.
Investment in real estate new developments and rejuvenation of
existing areas are better understood in operations like urban
regeneration.
Women entrepreneurs in india
Last five decades have seen phenomenal changes in the status and work place diversity of women in
India. Women entrepreneurs doming 50s fall into two categories. One set took to creating and
managing an entrepreneurial activity where there was no income generating male.
The second set took enormous courage to break through the social maps and coding to take. Charges
of the business the husband had left or else her family would be the losers. In sixties women took
small steps to start small one woman enterprises at home and from home for self occupation and
engagement.
The women in seventies opened up new frontiers and developed not only aspirations but ambitions
for self employment and employment generation. These women wanted home, marriage, children as
well as occupation. They accepted the share of the work and responsibilities for success and growth
of their enterprise.

31. They wanted their voices to be heard as leaders to employees and as managers of the enterprises to
the outside business environment. However, all of them accepted both their social and occupation
roles balancing between the two.
In eighties, the number of women pursuing highly sophisticated technological and professional
education increased. They entered into family business as equally contributing partners.
They made personal choices, stood up for their convictions and had the courage to make new
beginnings. For them the society was hostile and sometimes they developed a sense of guilt for not
playing appropriate traditional and social roles.
The women of the nineties were capable, competent, confident and as service. They were clear of
their goals, processes and the dynamics of goal accomplishment.
These women were fearless, and have learnt to live alone, travel alone and rear children alone when
failure in marriage and life partnerships occurs. In most of the cases they move out shone and out
performed their male counterparts.
21st century is the century of telecom, IT and financial institutions. Women’s expertise in all these
industries has made them emerge as a force to reckon with.
Many of these industries are headed and guided by women as pioneers and mavericks. They have
ventured to build enterprises, to discover their relevance and meaning of life in themselves. But still
in relation to the women population. The trend has not been spectacular.
As per 1991 census, only 185900 women accounting for only 4.5% of the total self employed persons
in the country were recorded. Majority of them are engaged in the unorganized sector like
agriculture, agro based industries, handicrafts, handlooms, and cottage based industries.
There were more than 295680 women entrepreneurs claiming 11.2% of the total 2.64 million
entrepreneurs in India during 1995-96. This is almost double the % of women (5.2%) among the total
population of self employed during 1981.
The present rate of 30% success of EDP training was likely to go up to 45% with growing experience
and improved techniques of training and follow up. The women were to be given training in self
employment/entrepreneurship of shorter duration as well as some training in trade and skill areas.
In order to mobilize such of women entrepreneurs, a number of activities such as motivational drive;
preparation of information material; conducting training; creation of women industrial
estates/areas/sheds; creation of common marketing exposition centers, training of trainers/
promoters; use of mass media, etc are required. Combined effect of all these is bound to accelerate
the process of women entrepreneurship development.

32. Modern times have witnessed an array of changes in societal activities. Among them the most
significant and pertinent is woman liberation and empowerment.
Modern women have traded into almost all spheres and have proved themselves which were
previously the exclusive domain of their male counterparts.
Endowed with famous female institution that helps them make the right choices even in situations
where experience and logic fail, women have innate flair for entrepreneurship.
They are natural networks and relationship builders, forging powerful bonds and nurturing
relationship with clients and employees alike.
They are more inclined to seek out mentors and develop supportive teams. Women entrepreneurs
need to be landed for their increased utilization of modern technologies increased investment,
finding a niche in the export market creating a sizable employment for others and setting the trend
for other entrepreneurs in the organized sector.
Gender equality and economic development go hand in hand. The emergence of women
entrepreneurs and their contribution be national economy is quite visible in India. They now
constitute around 10% of the total number of entrepreneurs with a rapidly increasing trend.
The growing recognition that the women have unique talents which could be harnessed for
development, and for creating employment opportunities for others who are not suited to an
entrepreneurial career, developing women as entrepreneur has become an important and integral
part of national development planning and strategies.
With corporate eager to associate and work with women owned business and a host of bands and
NGOs keen to help them get going, there has rarely been a better time for women with zeal and
creativity to start their own business.
Concept of women Entrepreneur
The woman or a group of women who initiate, organize, and operate a business enterprise is known
as women entrepreneur. A women entrepreneur has to perform all the activities involved in
establishing an enterprise. These include idea generation and screening, determination of objectives,
project preparation, product analysis etc.
1. According to Frederick Harrison:
“Any woman or group of women which innovates, imitates or adapts an economic activity may be
called woman entrepreneurship”.
2. According to Government of India:

33. “A woman entrepreneur is defined as an enterprise owned and controlled by a woman and having a
minimum financial interest of 51 percent of the capital and giving at least 51 percent of the
employment generated in the enterprise to women”.
3. According to J. Schumpeter:
“Woman who innovates, imitates or adopts a business activity is called woman entrepreneur”.
The term woman entrepreneur signifies that section of female population who venture out into
industrial activities i.e. manufacturing, assembling, job works, repairs/servicing and other business.
Bank plays a vital role in india
Fourteen major banks were nationalised in 1969, and some more were nationalised a few year later.
Since then banks have to come to play a major role in the socio-economic life of the country. They
are no longer merely instruments for credit mobilisation and money-lending.
They are no longer merely institutions for earning maximum profits for the benefits of a few
individuals. They are now powerful source of economic growth and social justice.
Shri H. C. Sunkar very pertinently remarked “Banks have to act not only as purveyors of credit, but
also as harbingers of social and economic development through a variety of enterprises, many of
which may be tiny and yet capable of generating productive energies.”
The role of banks has changed; still the quality of banking services in India remains poor. A bank
transaction is a time consuming affairs, causing much harassment and irritation to the clients.
There are frequent exchanges of hot words with concerned clerks, and there have been instances
when even blows have been traded. To avoid such delays and frustrations.
It is essential that the Teller System be introduced in all major banks at the earliest. Computerization
of banking services should also be done in the interest of efficiency and promptness. However, this
will have to be done with due forethought and care as the Employees Unions are generally opposed
to it.
Courteous, sincere and duty conscious staff is also must, if the banks are to play their due role in life
of the country. At present the staff, even in the major nationalised banks, is not only inefficient and
rude, but is also lacking in sense of duty and decorum loan.

34. For mobilisation of deposits, it is essential that they are made aware of the fact that it is in their
interest to deposit money in the banks.
The people, especially in rural areas, should be assured that the money deposited in banks is
entirely safe and they can withdraw it in their troubled time. Even small investors should be tapped
through such door to door approach.
People in general, especially women, are of the view that it is more profitable to invest money in the
purchase of gold than to put money in banks.
To mobilise deposits schemes such as attractive Re-investment Plan, Recurring Deposit Scheme,
Retirement Plan, Permanent Plan etc. should be promoted. Secondly the small depositors should be
given education in banking.
They have to be assured that their money in the banks is as good as in their purse, that the process
of withdrawal is not difficult and that there are a number of additional benefits, apart from the interest
accruing from bank deposits. Such education to the people is very essential for the rapid
mobilisation of deposits.
It is only when maximum deposits are mobilised that the bank would be able to liberalise their
lending policy and play a creative role in national life. It is essential that loans are advanced to small
entrepreneurs and the self-employed on easy liberal terms.
The criterion should not be paying capacity of the borrower, but whether the loan so advanced is
likely to help in increasing production. If it is so, loans should be advanced even if sometimes there
is a default in the payment of due installments. Banks Managers should make judicious use of their
discretionary powers in this connection.
Banking services should be extended to rural areas also. We are happy to note that during the last
few years more and more banks have opened their branches in the villages. The establishment of
Rural Development Bank is a step in the right direction. Still much more remains to be done.
The task of providing banking facilities to the rural folk should be taken on a war footing. The
advantages of banking should be explained to the rural dwellers that are ignorant and conservative.
Deposits should be mobilised and loans should be advanced on liberal terms.
This would enable agriculturist to purchase good quality seeds fertilizers, and scientific implements
like tractors, thrashers etc. This would result in increased production. In this way the Indian farmer
would be freed from the clutches of the local money lender and his traditional poverty would be
gradually eradicated.

35. India is on the march; far reaching socio economic changes are taking place and Indian Banks
should come forward to play this role in the process. But this can be possible only if the quality of
banking services is considerably improved.
SME
Small and Medium Enterprises (SMEs) have played a significant role world over in the economic development of
various countries. Over a period of time, it has been proved that SMEs are dynamic, innovative and most importantly,
the employer of first resort to millions of people in the country. The sector is a breeding ground for entrepreneurship.
The importance of SME sector is well-recognized world over owing to its significant contribution in achieving various
socio-economic objectives, such as employment generation, contribution to national output and exports, fostering
new entrepreneurship and to provide depth to the industrial base of the economy.
Small and medium-sized enterprises (SMEs) are the backbone of all economies and are a key source of economic
growth, dynamism and flexibility in advanced industrialized countries, as well as in emerging and developing
economies. SMEs constitute the dominant form of business organization, accounting for over 95% and
up to 99% of enterprises depending on the country. They are responsible for between 60-70% net job creations in
Developing countries. Small businesses are particularly important for bringing innovative products or techniques to
the market. Microsoft may be a software giant today, but it started off in typical SME fashion, as a dream developed
by a young student with the help of family and friends. Only when Bill Gates and his colleagues had a saleable
product were they able to take it to the marketplace and look for investment from more traditional sources. SMEs are
vital for economic growth and development in both industrialized and
developing countries, by playing a key role in creating new jobs. Financing is necessary to help them
set up and expand their operations, develop new products, and invest in new staff or production facilities. Many small
businesses start out as an idea from one or two...
INTODUCTION
Small and medium enterprise(SME’s) in India have a very important place in the Indian
economy. Their contribution in terms of production, export, export, employment
generation and all round growth of the country is well known. The role of SME sector in
the nation building is well recognized not only in India, but also across the globe. The
industrial engines of Japan, china, US, Germany and Taiwan are also driven by the
SME sector.
Finance/credit is the most critical component in any business process. Any industrial
sector cannot work to its full capacity without adequate flow of funds. The SME sector is
working with low capacity utilization, which, however, has now improved from 33.34% to
around 52% percent. Still these remain a vast scope for enhancing growth and
employment generation.
SME’s occupy a place of strategic importance in the Indian economy. however since the
early 1990s, Indian SMEs have been exposed to intense competition due to the
accelerated process of globalization. Therefore, the survival as well as growth of SMEs
is under strain. However, globalization has also brought, in its wake, newer
opportunities for SME’s.
SMALL AND MEDIUM ENTERPRISE

36. There is no universal definition of SME (small and medium enterprise) different
countries follow different definition for the SME sector. Some use the criteria of turnover;
some use the number of employees whereas in certain countries, investment in the
enterprise is used to define an SME.
In India, the definition of SME’s has always been based on the productive plant and
machinery. Currently, a unit having gross investment in productive plant and machinery
of up to Rs. 1 crore is classified as an SME enterprise. In certain sector such as drugs
and pharmaceuticals, hosiery, stationary, hand tools, etc, this limit has been raised to
Rs. 5 crore in the past few years. This move has given a fillip to the potential for growth
in this sector..
An entrance exam-A evil
Examinations are an age – old practice of evaluating students’ performance. Dronacharya had also
held examinations for his students. God had tested the devotion of Ibrahim. But the modern system
of examination is the gift of the British rule.
Form of examination today:
Prior notice regarding the date and programme of examination; many students curse it; the
examination sects the students’ heart pounding; however, students concentrate on studies with
longer hours; date approaches; question – papers distributed by the invigilators; certain number of
questions to be done in allotted hours; answer – books given to examiners; evaluation and allotment
of marks; results published…
Why examination taken:
To test student’s mental ability and knowledge.
Why examinations are necessary:
To make students work – fear of failure and humiliation; to know the comparative merit of students
and place them accordingly in their careers…
Why examinations are evil:
Examinations encourage cramming rather than true and applicable knowledge; a game of chance
and skill; standard of making not uniform; personal moods and approach of the examiners may
affect objectivity; one year’s efforts tested in just two – three hours (?)…. Etc.
Suggestions for reform:

37. A series of practical tests, weekly tests, objective – plus –subjective tests; counseling for
examinations to help students to take the examinations in a sporting spirit; progressive idea is to
allow text-books in examination halls….
Conclusion:
The analysis shows that despite the evil nature of examinations we are bound to go along with them.
This is because we have not hitherto evolved any effective alternatives to them. However, the tests
and evaluation systems should be so designed that they make a real test of a student’s mental ability,
originality and faculty of critical thinking.
1. All condemn examinations, but cannot do away with them.
2. Examinations are a terror to students and exert a great strain on their mind.
3. Examinations simply encourage cramming and are not the surest test of one’s ability.
4. Examinations, however, arc an incentive to hard work.
5, Examinations are a necessary evil; they bring out the best men and also the best in men.
Students look upon examinations with contempt; they make all possible efforts to avoid them.
Educationists are against them, sad are thinking of abolishing them. Critics find fault with then. In
spite of condemnation from all the quarters, examinations persist. They teem indispensable in every
walk of life. They are the milestones on the road to education and life. Students may come, students
may go, but examinations go on for ever. Examination is the stern child of education; it is a light to
guide and a rod to check the erring. Students cannot get rid of them, and teachers cannot do without
them
Examinations are a horror to students who turn pale and tremble at their approach. They lose
appetites; they do not show toy Interest in games and other recreations. They lose all seats for fife.
They are a tight worth seeing—unshaven beards, disbavellcd hair, and haggard facet. They know
that their future depends upon the result of the examinations, and if they do not fare well, they will be
doomed. Naturally examinations cause a great atrtia on their minds. They offer prayers; they ban
midnight oil; they art reduced

38. to mere skeletons. This all is due to the defective system of education. If periodical tests are held
and are given as much importance as the final examinations, students will work regularly and will be
saved from excessive physical and mental strain.
Examinations are not necessarily the surest test of the ability i of students.1
! They are judged from
what they perform in three hours. Sometimes the most brilliant student is not able to do justice in
such a short duration. On the contrary, a student who has not touched the books the whole year gets
good marks, because all the questions he prepared just before the examination were asked. More-
over, history tells us that most of the great men cut a sorry figure in the examinations. Shakespeare
never passed any examination, yet his works have won worldwide recognition. The world’s greatest
scientist, Einstein, father of the atomic age, failed in Mathematics, Mahatma Gandhi and Pandit
Nehru were no recordbreakers at the university, though heir personalities shook the whole world.
Examinations do determine the value of majority of the students, but the geniuses have often proved
misfit at the examinations They do not wish to confine their minds within the four walls of the
examinations. No system has yet been? devised which will apply to all sort! of students.
It is held that examinations these days encourage cramming. The students deliberately?; do not take
to studies seriously, as they fcnow that if they prepare a few important questions near the exami-
nations, they will surely get through. They depend upon helpbooks, guides and booklets, as they
think them to be the surest means to success. They do not bother to read textbooks or whatever
teachers tell them io the class. They have Cdevised shortcuts to passthe examinations. They take
the help of guesspapers, study urjng the last Jmonth, and get good marks. The examinations are
only a feat of memory. Leacock says that parrots woul$, do better in the examinations. Chance also
plays an important role in the examinanations these days. A student who has been working for two
years may fail, whereas an idler who has done a few questions which have been asked in the
examination may pass with good marks. The papersetters are expected to ask such questions in the
examinations as may not be answered by the students who totally depend upon cramming and do
not make use of their intelligence. The entire style of the question papers should be radically
changed in order to discourage the students from working by fits and starts.
With all the faults, examinations are an incentive to hard work. I Thev are indeed a necessity
because it is only the fear of the examinations that makes students work hard. They areaware of the
humiliation they will face if they do not come out successful. They will not neglect their studies
throughout, as they do not like to be exposed. But for the examinations, they would not touch their
books at all. They would waste all their time in idle mischiefs. It is better to carry a few facts in
memory than to be absolutely blank.