Sunday, 18 November 2012

What is Bank rate?   Bank Rate is the rate at which central bank of the country  ( Bank Rate in India is decided by RBI)  allows finance to commercial banks. Bank Rate is a tool, which central bank  uses for short-term purposes. Any upward revision in Bank Rate by central bank is an indication that banks should also increase deposit rates as well as Base Rate / Benchmark Prime Lending Rate.  Thus any revision in the Bank rate indicates that it is likely that interest rates on your deposits are likely to either go up or go down,  and it can also indicate  an increase or decrease in your EMI.

What is CRR? or What is CRR Ratio or What is CRR Rate   The Reserve Bank of India (Amendment) Bill, 2006 has been enacted and has come into force with its gazette notification. Consequent upon amendment to sub-Section 42(1), the Reserve Bank, having regard to the needs of securing the monetary stability in the country, RBI can prescribe Cash Reserve Ratio (CRR) for scheduled banks without any floor rate or ceiling rate (  [Before the enactment of this amendment, in terms of Section 42(1) of the RBI Act, the Reserve Bank could prescribe CRR for scheduled banks between 3 per cent and 20 per cent of total of their demand and time liabilities].
RBI uses CRR either to drain excess liquidity or to release funds needed for the growth of the economy from time to time. Increase in CRR means that banks have less funds available and money is sucked out of circulation. Thus we can say that this serves duel purposes i.e.(a)  ensures that a portion of bank deposits is kept with RBI and is totally risk-free, (b) enables RBI to  control liquidity in the system, and thereby, inflation by tying the  hands of the banks in lending money.

What is SLR? : Every bank is required to maintain at the close of business every day, a minimum proportion of their Net Demand and Time Liabilities as liquid assets in the form of cash, gold and un-encumbered approved securities. The ratio of liquid assets to demand and time liabilities is known as Statutory Liquidity Ratio (SLR).  RBI is empowered to increase this ratio up to 40%.  An increase in SLR  also restrict the bank’s leverage position to pump more money into the economy.

Great personalities

Debendranath tagore:

Founded Tattvabodhini sabha in 1839.
published tattvabodhini patrika tp propagate the ideas of Raja Ram Mohan Roy.
He was contemporary of gr8 thinkers like Ishwar chandra vidyasagar and A.K.dutta.
Later,in 1859,he amalgamated Tattvabodhini sabha with the Brahmosamaj.
He took over the leadershp of Brahmo samaj after Raja Ram mohan roy.
he actively worked for widow remarriage,abolition of polygamy,for women education.
Brahma Dharma is his compilation of selected pasaages from Upanishads

Saturday, 17 November 2012

Current affairs

1. Tessy thomas, a woman who played key role in Agni missile project was rewarded with Lal Bahadur Shastri award on October 1st 2012 which included cash prize worth Rs 5 lakh.

2. Misses India World Wide -2012 was held in Sep 2012 in Delhi which was won by Retekka Lageen Ben.

3. Right Livelihood Award for the year 2012  finalized 3 persons - Afgan's human rights activist ex-minister Sima samar, America's political philosopher Jeen sharp, Turkey's environmental activitist Herettin Karakka and an organization named Camapaign against Arms Trade  of UK. It was awarded to Karakka. This award  is considered as an alternative to Nobel prize. This was established by Swedish-German philatelist Jacob Van Uksul in 1980. Philatelist means one who collects stamps.

4. China recently completed the project of establishing a library in each state.

5. Yuvan Long Ping  is known as "Father of Super Hybrid Paddy". His team achieved 55 quintals output per acre of paddy.  He belongs to China.

6. Under RTI an application should not exceed more than 500 words.

7. New Chairman of Indian Banks Association (IBA) is KV Kamath who took charge from Oct 1st 2012. He was CMD of Punjab National Bank. Alok Mishra was the Ex-Chairman of IBA.

8. AP State bio diversity Chairman R. Hampaiah.

9. Rs 28114 crore is allocated towards Disaster relief fund for state of Andhra Pradesh for the period of 2010-11 to 2014-15.

10. "Economic growth and changes in Industrial environment in Asia" forum was held in New Delhi in September 2012.

11. On occassion of Motilal Nehru's 150th birthday on September 25, 2012 Pranab Mukherjee's logo coins were released.

12. October 11-International girl child day.

13. Sandip Patil, new selection committee chairman of BCCI

14. India's tallest Jesus Christ statue was established in Tiruvanantapuram whose height is 33.5 feet,  second longest is in Bangalore which is 29 feet.

15. Rest of India won the Irani cup which was held in September 2012.

1857 rebellion

1. Political: Insecurity felt among the domestic rulers because of the ecroachment of kingdoms policy adopted by Dalhousie, because of which kingdoms like Satara, Sambalpur, Jhansi, Nagpur were merged with British kingdom. Attitude towards people like Nanasahed, and Bahadur Shah 2 was also a reason for unrest.
2. Economical: Short term profit making policies of East India Company crippled the Indian economy. Tax became huge burden on Farmers. Localized handicraft and hand loom industries weren't able to compete with industrialized British products which led to the decline for domestic products. Export of natural resources from India earned Britishers huge profits.
3. Social and Religious: Charter law made by British Parliament in the year 1813 gave powers to British administration to interfere in social and religious issues of Indian people. Abolishment of Sati in the year 1829 by William Bentict in states of Bengal and Bihar, 1856 widow marriage policy led to the angry among Hindu religious leaders.
4. Army Though the ratio of Indian to British soldiers in the army was around 6:1 Indian soldiers were treated as second grade citizens in terms of salaries, promotions etc. Indians were ordered not to have long hair style, beard, and turbans. Lord Conning brought a law in to place which allowed Indian soldiers to take part in wars out side India also which was disliked by Indian community. Apart from all these one of main reason being introduction of enfield rifels whose bullets are believed to be soaked in fat of cow and pig which became the starting reason for the rebellion.

Rebellion began in Meerut on 1857 May 10.

Delhi-Bahadurshah 2
Ayodhya-Begum Hazrat Mahal
Bihar-Kunwar Singh
Bareli-Khan Bahadur Khan

Wednesday, 29 August 2012

Who is Gidugu Ramamurthy ?

Gidudu Ramamurthy's bday....
He was awarded kaizer-e-hind by then Madras government and Kalaprapoorna by AU

Sunday, 26 August 2012

SC, ST sub plan...Govt of AP

Cabinet sub-committee submits report for effective implementation of Sub-Plan to Kiran
A special session of the Assembly will be convened in September to give legislative backing to the Special Component Plan for SCs and STs and ensure that funds allocated to them are wholly utilised without diversion to other development works.
This was announced by Chief Minister N. Kiran Kumar Reddy at a media conference here on Saturday after the nine-member Cabinet sub-committee headed by Deputy Chief Minister C. Damodar Rajanarasimha submitted a 195-page report for effective implementation of the SC, ST Sub-Plan to him.
The report will first be discussed in the Cabinet, Mr. Reddy said and observed “it marks the beginning of a new chapter in the State. AP will serve as a role model in implementing the Sub-Plan for SCs and STs.”
Noting that the sub plans were being implemented for decades, the Chief Minister admitted that social inequalities continued to persist as the funds meant for the weaker sections had either lapsed or were not spent for their exclusive benefit.
The Cabinet sub-committee was constituted to study lapses in the scheme and evolve a strategy for effective targeting of the beneficiaries and continuous monitoring, he said.
This year, the State allocated an amount of Rs.8,657 crore for SCs and Rs.4,060 crore for STs in proportion to the population of 16.2 per cent and 6.5 per cent, respectively.
“The exercise is not aimed at retaining our vote bank but comes from our heart and with a sincere commitment to improve the lot of the downtrodden,” he said.
AP pioneer
Mr. Rajanarasimha, tracing the evolution of the sub-plan for SC, STs, said Andhra Pradesh was the first to constitute such a Cabinet sub-committee and gave full credit to the Chief Minister. The report was prepared after consulting all the stakeholders, organisations, people’s representatives in the last four months.
The focus now onwards would be to fine-tune the implementation of the sub-plan to achieve the desired results. Members of the Cabinet sub-committee S. Sailajanath, G.Prasad Kumar, Y.Pratap Reddy, Kondru Murali, J.Geetha Reddy, P.Balaraju were present when the report was submitted.

Saturday, 25 August 2012

International affairs India, China and Bhutan - The Hidnu

As Bhutan considers settling border issues with China, it must take care that the security of the Siliguri Corridor, India’s only access to the northeast, is not jeopardised
China wants to widen the Chumbi Valley by pressing its claims on Bhutan’s western boundary but that could have implications for India

On June 21 this year, during a meeting on the sidelines of the United Nations Rio+ 20 conference, Chinese Premier Wen Jiabao met Bhutanese Prime Minister Jigmi Y. Thinley for the first time. The Hindu dated June 27, quoted Wen Jiabao as saying that China was “willing to complete border demarcation with Bhutan at an early date.”
The history of the Bhutan-China border dispute starts from 1950 when China published a map claiming areas in the west and north of Bhutan though bilateral talks started in 1984.
Twenty-eight years and 19 rounds of bilateral talks have resulted in a package deal offer from China (a) conceding claims of 900 in the north of Bhutan, (b) insisting on 400 of territory in the west, (c) offering to establish diplomatic relations, initiate trade and pilgrimage, (d) making it clear that any further negotiations would be on acceptance of package deal with “minor adjustments within it.”

It is noteworthy that over the years, the Bhutan government had been quite vocal in keeping its citizens and the National Assembly informed of the difficulties in negotiating with China. Regular deep intrusions by Chinese troops right up to Royal Bhutan Army border posts, road extension work in Zuri and the Phuteogang ridge that overlooks the disputed Charithang valley are in violation of the 1998 China-Bhutan agreement for maintenance of peace and tranquillity, for which protests have been made. Four areas in the western sector claimed by the Chinese are Doklam, Charithang, Sinchulimpa and Dramana pasture land. In the National Assembly, many chimis (district representatives) have claimed “that traditionally, the land always belonged to Bhutan and historically there has been no precedence of Bhutan paying taxes to the Tibetan Government for any of the disputed claims.” The rich pasture lands in the west are intricately linked to the livelihood of yak herders of the border regions.
From the foregoing, it is clear that the Chinese are unlikely to give up their position in the four areas of western Bhutan except for minor adjustments. It is confirmed by the pattern of intrusions sssssand road building activities by Chinese in areas overlooking this sector that Beijing wishes to gain strategic advantage in the Chumbi Valley and put pressure on India for settlement — having settled borders with Pakistan, Nepal and Myanmar.


The narrow and vulnerable Chumbi valley between India (Sikkim) and Bhutan has a single artery from Shigaste, a major Tibetan city, to Yatung with plans to extend a railway line. The lack of space restricts the deployment of troops. The Chinese strategy of claiming areas in western Bhutan is to widen its shoulders to facilitate military manoeuvres in the Chumbi Valley.
The recent development in infrastructure in Tibet has made it possible to induct a sufficient number of troops with adequate logistic back-up at short notice. The limitation is in restricted deployment space; there is no other place on India’s northern borders which severely limits military manoeuvres as the Chumbi Valley does.
The Siliguri Corridor, a vital tri-junction between Bhutan, Bangladesh and Nepal, is a narrow hub of rail, road and air arteries known as the “Chicken neck,” the narrowest stretch of which is just about 30 km wide. India is vulnerable in this corridor as it is the only access point to the northeast. The Siliguri Corridor is about 500 km from the Chumbi Valley.


According to the media, Premier Wen Jiabao had met the Indian and Bhutanese Prime Ministers separately at Rio before making the announcement to the press. Some Chinese scholars have made this comment: “Without India’s permission Bhutan would not have thought about establishing diplomatic ties with China.”
India-Bhutan relations have been experiencing the winds of change. From 1949 onwards they were governed by a Treaty of Perpetual Peace and Friendship of 1949. Article 2 of the treaty was significant wherein “the Government of Bhutan agrees to be guided by the advice of the Government of India in regard to its external relations.”
However, much has changed. The isolation of Bhutan is a matter of the past. The nation has changed from monarchy to a democratic set-up. Article 2 had been a matter of concern for the Bhutanese so much so that some of them called themselves “half independent.” The 1949 Treaty was revised in 2007. Article 2 was replaced with: “In keeping with the abiding ties of close friendship between Bhutan and India, the Government of the Kingdom of Bhutan and the Government of Republic of India shall cooperate closely with each other on issues relating to their national interests. (emphasis added). Neither Government shall allow the use of its territory for activities harmful to the national security and interest of the other.” The 2007 Treaty has begun a new era in bilateral cooperation.
Despite the new Article 2, New Delhi will remain Thimpu’s most important friend and a partner. These figures speak for themselves. Bhutan is the largest recipient of Indian development aid and India accounts for a total of 79 per cent of Bhutanese imports and 95 per cent of its exports. India trains the Bhutanese army through the Indian Military Training Team (IMTRAT), in Bhutan. Simply put, Bhutan’s dependency on India will not match with any other country for many years.
Bhutan has every right as a sovereign country to establish diplomatic relations with any country including China. The opening of trade and tourism with China would usher in development and investments from there. However, a lack of discretion may also result in the dumping of goods, undermine a unique culture and affect the policy goal of “gross national happiness.”
Chinese claims do not seem to have historical evidence. The pasture lands would also deprive the livelihood source of their border people. Western Bhutan is not barren. It may be recalled that in 2006, China-India framed “Political Parameters and Guiding Principles”to resolve their long-standing border dispute. The important principles that need highlighting are that due interest of “settled populations in border areas” would be safeguarded and “historical evidence and sensibilities of border areas” taken into account. These guidelines are worth inculcating by China and Bhutan. The border settlement will require approval by 3/4th majority in the Bhutan National Assembly.
It is hoped that all aspects including India’s interests will be truly considered by Bhutan before accepting the border package. Bhutan should refrain from deepening ties with China beyond a self-imposed minimum limit in their own interest.
(Virendra Sahai Verma is Honorary Fellow at the Institute of Chinese Studies, Delhi, and retired colonel from Indian Army Intelligence. Email:

Great ones!