Savings, investment, banks, capital market

S A V I N G S , I N V E S T M E N T , B A N K SC A P I T A L M A R K E T , M I C R O - I N S U R A N C E

I N V E S T O R G R I E V A N C E R E D R E S S A L

D . M I S H R AR E S O U R C E P E R S O N

( U N D E R T H E A E G I S O F I N V E S T O R E D U C A T I O N & P R O T E C T I O N F U N D

M I N I S T R Y O F C O R P O R A T E A F F A I R S )

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ICAI-MCAInvestor Awareness PROGRAM

FINANCIAL LITERACY – SIGNIFICANCE

Investor Awareness Program

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Financial literacy plays a crucial role infinancial inclusion, inclusive growthand sustainable prosperity.

Financial literacy has been accordedNational Priority under PradhanMantri Jan Dhan Yojana( PMJDY).

FINANCIAL LITERACY : THE NEED 3

Benefits : According to National Strategy for Financial Education ( NSFE):

Knowledge and skill: Individuals can take an informed decision.

Avoidance of over indebtedness.

Promoting entrepreneurship.

Financial literacy : to be part of curriculum in Class VI- XII: Karnataka first state to start in 2009-10.

FINANCIAL PLANNING & SAVING 4

CARDINAL PRINCIPLES

Understand Your Expenses

Do not spend more than your Income

Plug Non –essential expenditure & Increase your Savings

Achieve your Goal with Financial Planning

Think twice before spending

The less you spend the more you save

Save Money for Life-cycle needs

Save your money in bank accounts

WHY SAVINGS5

SAVINGS SAVE MONEY FOR LIFE CYCLE NEEDS

DO NOT LOOSE YOUR HARD EARNED MONEY, ALWAYS SAVE IN A BANK ACCOUNT SAVING ACCOUNT IN A BANK IS THE KEY TO ALL OTHER SERVICES

BANK IS NOW AVAILABLE AT YOUR DOOR STEP

Why is Investment Necessary

ABHYUTTHANA FINANCIAL LEARNING CENTRE , BHUBANESWAR

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Investment helps our money to grow.

Cushion against inflation

Provides a steady source of income in old age.

Helps us achieve and maintain a certain standard of living

Helps us to achieve all short term and long term goals.

It is all the more necessary with increasing longevity.

Investment Mantras7

Money Grows with time ( understand time value of money)

Reap the benefits of compounding

Start early and stay invested longer

Don’t borrow to invest

Deal with registered intermediaries

Investment Mantras


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Follow life-cycle investing

Read carefully and take informed decisions

Consider investing in IPOs

PSU IPOs deserve special attention

Invest in Mutual funds, but select the right fund and scheme

Don’t invest in dubious schemes

Where Not to Invest


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Chit Funds : Governed by Chit Funds Act, 1982

However there are many such schemes which are not floated by registered Chit Fund Companies.

Many times founders running a PONZI SCHEME and absconding with money.

Multi Level Marketing scheme ( MLM )

Plantation companies

Borrowings


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MANAGE YOUR DEBT OTHERWISE DEBT WILL DAMAGE YOU

BORROW TO UNDERTAKE AN ACTIVITY WHICH ENHANCES YOUR INCOME

BANKS ARE TRANSPARENT AND CHARGE LESS INTEREST A BANK MEETS ALL YOUR REQUIREMENTS

Formal Financial System


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Reserve Bank of India

APEX Banks:

NABARD, SIDBI, National Housing Bank

Banking system: Commercial banks, Co-operativebanks, RRBs , Payment Banks, Small Finance Banks.

NBFCs : NBFCs registered with RBI

Capital Market

Insurance Sector

INDIAN BANKING SYSTEM12

PUBLIC SECTOR BANKS : 27

NATIONALISED BANKS : 19

STATE BANK OF INDIA and ASSOCIATES : 6

OTHER NATIONALISED BANKS : 2

PRIVATE SECTOR BANKS : 13

NEW PRIVATE SECTOR Banks : 8

FOREIGN BANKS : 43

REGIONAL RURAL BANKS : 56

LOCAL AREA BANKS : 4

NEW TYPE OF BANKS


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SMALL FINANCE BANKS : RBI has given “ in principle” approval to 10 entities in September 2015

( The first such bank : Capital Small Finance Bank Ltd opened on April 24, 2016)

PAYMENT BANKS : RBI given “ in principle” approval to 11 entities in September 2015.

MUDRA BANK : Launched by Hon’ble Prime Minister on April 8, 2015

SMALL BUSINESS AND MUDRA


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Small businesses are often unable to avail loans from banks because of lack of collateral and insufficient funds to pay off the interest.

There are almost 577 crore small businesses currently functioning in India. Helping these businesses grow would in turn lead to the development of the Indian economy.

MUDRA is still not a fully fledged bank and is in its initial stages.

MUDRA BANK


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Micro Units Development & Refinance Agency Ltd

Objective : To “fund the unfunded”

Set up by Government of India: Subsidiary of SIDBI: Registered as NBFC with RBI

PM Mudra YOJANA: ( PMMY): Products / Schemes created

What is the MUDRA Yojana?


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This is a scheme to provide loans to small businesses and micro institutions. For now, it will just refinance these institutions.

This scheme would intervene in providing finance to these micro institutions in three stages:

Shishu: Under the Shishu stage, MUDRA will provide a loan up

to Rs.50, 000 to small businesses. Kishor: Under this stage, MUDRA will provide loans of

an amount ranging from RS.50, 000 up to Rs.5 lakh. Tarun: Under this stage, loans of amounts ranging from

Rs.5 lakh to Rs.10 lakh will be provided.

Loan under MUDRA Yojana


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All Scheduled Commercial Banks in public and private sector.

Regional Rural BanksAll Micro Finance Institutions (MFI), small business

finance companies and NBFCsScheduled urban and state co-operative banksThese institutions have to pass the eligibility criteria laid

down by MUDRA yojana and are then eligible to provide loans to suitable candidates as per the common parameters, under the PM MUDRA Yojana. When the loan is passed, one will get a MUDRA card, similar to a credit card with limit up to 10% of loan amount to purchase working capital.

MUDRA BANK -Status


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Status for Odisha As on May 06.05.2016

No of Accounts : Amount ( Rs crore)

Sishu 3,73,704 692.77

Kishor 2,971 43.43

Tarun 501 29.95

TOTAL : 377,176 766.15

Why to deal with Banks19

Banks are regulated by Reserve Bank of India.

Deposit Insurance of Deposit Insurance & Credit Guarantee Corporation of India ( DICGCI) available to bank accounts.

Grievance Redressal System : BANKING OMBUDSMAN

STEP INTO THE BANKSTEP OUT OF POVERTY

MOBILE BANKING


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MOBILE BANKING

Important Measures for Bank Customers


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Opening of Bank Accounts by Minors

Business Correspondents (BCs) : More Liberalisation

: NBFC as BC and Distance Criteria

Liberalisation of KYC Norms

ATM Use: Rationalisation of number of free transactions

Introduction of White Label ATMs:

Example: Tata Communications Payment Solutions

Srei Infrastructure Finance Ltd.

Force of Compounding 22

Milestone Schemes of Government of India


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PRADHAN MANTRI JAN DHAN YOJANA

PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA

PRADHAN MANTRI SURAKSHA BIMA YOJANA

ATAL PENSION YOJANA

ATAL PENSION YOJANA (APY)


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The Scheme is named after the ex-Prime Minister AtalBehari Bajpayee : launched on May 9, 2015: to bring those unemployed in rural and unorganised sector under the ambit of pension scheme.

Any Indian national of age group 18-40 years is eligible to join the scheme. Should have a savings bank account with a bank.

Pension is paid on completion of 60 years: ₹ 1,000 ₹ 2,000, ₹ 3000, ₹ 4000, ₹ 5000.

Premium payable : Age 18 years (₹ 1,000 ) : ₹ 42

Pradhan Mantri Jeevan Jyoti Bima Yojana


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Savings bank holder : Age between 18-50 years.

Aadhaar would be primary KYC for the bank account.

Life Insurance cover : ₹ 2,00,000 payable on death of the member .

Premium ₹ 330 per year . Auto debit is permitted.

Members can give one-time mandate for auto-debit every year.

Scheme is administered through LIC or other life insurance companies.

Pradhan Mantri Suraksha Bima Yojana


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Savings bank holder : Age between 18-70 years.

Aadhaar would be primary KYC for the bank account.

Insurance cover : ₹ 1,00,000 on loss of one limb or eye ₹ 2,00,000 on loss of two limbs or two eyes payable to the member .

Premium ₹ 12 per year . Auto debit is permitted.

Members can give one-time mandate for auto-debit every year.

Scheme is administered through a GIC, for period of one year ( June –May).

SEBI-REGULATORS: Capital Market


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ESTABLISHMENT OF SEBI The Securities and Exchange Board of India was established

on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.

PREAMBLE The Preamble of the Securities and Exchange Board of India

describes the basic functions of the Securities and Exchange Board of India as"...to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto"

Investors Grievance Redressal System


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SCORE ( Sebi Complaints Redressal system)- Online

Aggrieved Investors can lodge complaint against listed companies and various intermediaries registered with SEBI.

Investors can lodge complaint on line on SEBI site after registering with it.

Toll free Investor Helpline system is availble.

1800 266 7575

1800 22 7575 ( 9.00 am to 6.00pm)

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THANK YOU

Savings, investment, banks, capital market

Education

Transcript of Savings, investment, banks, capital market