Moneylife Events
Maharashtra CM Fadnavis says financial literacy empowers citizens
Speaking at Moneylife Foundation’s 5th anniversary, Devendra Fadnavis, the CM of Maharashtra said, financial literacy would help people to understand risk and returns better, thus saving them from being duped 
 
Devendra Fadnavis, Chief Minister of Maharashtra said, financial literacy and financial knowledge gives more power to citizens and help them understand investment risk and returns better. “Our government would like to work with institutions like Moneylife Foundation to make people financially literate. In addition, based on the ground level inputs from such institutions, we would also like make policies for investors. This will make people understand the difference between gain and loss on their investment," he said while speaking to a packed audience at Moneylife Foundation's 5th Anniversary in Mumbai.
 
Addressing a crowd of over 700 prominent citizens, businessmen, activists and whistle-blowers, the Chief Minister said, "Financial inclusiveness requires financial literacy. People are always in need of an instrument for saving. However, most of the time, they do not look at the ‘scheme’ or who and why is he offering such a higher returns. People do not even look at similar instruments in the market. We simply get attracted at higher interest rates without checking credentials of the offering party, and several times this ends it severe losses for investors."
 
“एक आदमी था वह सौ रुपये का माल पचास में बेचकर लखपती बन गया. किसीने पूछा ये कैसे हुआ? तो बोले, पहले वह करोड़पती था! (There was a man who became millionaire by selling an item worth Rs100 at Rs50. Someone asked, how is this possible? He was billionaire before!!),” the CM said in a lighter vein, warning investors to be aware about the fact that nobody is in the market to give ‘fancy or sky high returns’. 
 
Talking about Ponzi and money circulation schemes, Mr Fadnavis said, “Maharashtra is among the earliest states to put in place an act to save depositors. The Maharashtra Protection of Interests of Depositors Act provides for a competent authority, a special court in each district, attachment of properties, a wider definition of the term "deposit" and imprisonment of up to six years.”
 
“Soon, the state government is appointing a deputy collector to sell assets worth Rs5,000 crore seized from one of the biggest Ponzi operators in Maharashtra,” the CM announced.
 
Calling economic offences, especially using online media as biggest challenge emerging, Fadnavis explained how existing provisions in the Information Technology (IT) Act are making fast probe difficult in such cases. He said, “The IT Act mandates to register and probe any complaint by an officer not less than a police inspector (PI) rank. However, most the PIs joined the force before the IT Act and may not be tech savvy. At the same time, we have several police sub-inspectors (PSIs), who have sound knowledge and know how to use technology for investigations. We have requested the Centre to make suitable amendments in the IT Act to allow officers of PSI rank to register and probe online frauds.”
 
“Maharashtra, in the meantime, has decided to strengthen IT wing of police force and is training around 1000 officers on how to deal with IT related offences. This additional force would help us to prevent and crack such offences,” Mr Fadnavis added.
 

CM Fadnavis, who hails from Vidarbha region, said basic reason for farmer suicides in that area is due to absence of institutional credit. “Farmer suicides are directly connected with the availability of institutional credit. About 90% of banking activity in Maharashtra takes place in Mumbai, Thane and Pune area. This means, just 10% banking takes places in rest of the Maharashtra. This explains the low credit-deposit ratios in areas, where number of farmer suicides are higher.”
 
“Due to the absence of banking activities or institutional finance, farmer in regions like Vidarbha and Marathwada have no option but to take loan from private moneylenders. And when there is a single failure in crop, the farmer found it very difficult to get another option to rearrange credit from these moneylenders. This results in farmer suicide. However, economic growth is the real casualty in such regions caused by lack of widespread banking network or institutional credit,” Mr Fadnavis said.   
 
Maharashtra Government has put out the draft of Right to Service (RS) Act or Maharashtra Guarantee of Public Services Act. In 2011, Mr Fadnavis had proposed the original draft, which stated that an official would be termed as 'habitual defaulter' after failing to provide service more than 50 times in a year.
 
He said, “We are inviting comments, views from government employees and citizens and would take a call based on the response. The Draft bill of Right to Services has been made public for suggestions and views and would be tabled in the budget session of State Legislature in March.” 
 

User

COMMENTS

shanti Patel

2 years ago

Yes,Right to Services Act will transform the life of the people of Maharashtra.

It should be made known to the people of such RIGHT widely.

The officers will know that inaction will invite unpleasant action.

Only condition is that the people of this country should be ACTIVE rather than PASSIVE as seen today.

S.K.PATEL
Secretary-Bombay Shareholders Association
Chartered Accountant

Deepak Mahulkar

2 years ago

No doubt after listening to him on 5th Anniversary that Sh. Devendra Fadanvis iis a different cup of tea, an odd man out in this political milieu. With him at the helm of affairs of Maharashtra, our expectations have skyrocketed. Therefore, he has to be very careful while announcing infra projects. he has already announced Mumbai-Pune Express Highway by pass at an estimated cost of rs. 7500 crores. Prbably, 15 minutes will be saved overall in travelling. But, to recover the cost, if he introduces toll in between, it will increase time by not less than 30 minutes and also will there be permamnant outgo to the vehilcle owners. I am sure, he will see all such angles and take appropriate steps.

Vaibhav Dhoka

2 years ago

No doubt e-banking and online shopping has eased life to a great extent,this ease has increased economic offences manifolds.One doesn't know the authenticity on other side,so chances of fraud is on rise.rise. Kotak securities Ltd appointed franchisee against SEBI's rule.With help of franchisee it got illegally transferred 1000 shares of Ranbaxy with off market DIS slip.The transfer was rejected by Kotak D.P. same day as the account was not permitted for transfer.Next day Kotak DP official called and asked to re lodge DIS slip.Kotak DP accepted share and then disowned franchisee thus committing fraud.As usual SEBI acted as postman and Kotak officials managed EOW of Pune police to stalled action and investigation.This is faith of investor even though he is cautious.Authorities act only when some political biggies is complainant.

Vaibhav Dhoka

2 years ago

No doubt e-banking and online shopping has eased life to a great extent,this ease has increased economic offences manifolds.One doesn't know the authenticity on other side,so chances of fraud is on rise.rise. Kotak securities Ltd appointed franchisee against SEBI's rule.With help of franchisee it got illegally transferred 1000 shares of Ranbaxy with off market DIS slip.The transfer was rejected by Kotak D.P. same day as the account was not permitted for transfer.Next day Kotak DP official called and asked to re lodge DIS slip.Kotak DP accepted share and then disowned franchisee thus committing fraud.As usual SEBI acted as postman and Kotak officials managed EOW of Pune police to stalled action and investigation.This is faith of investor even though he is cautious.Authorities act only when some political biggies is complainant.

Nifty, Sensex move hinges on Delhi elections – Weekly closing report

If BJP loses, it will be an excuse for punters to sell, if not, there could be a short rally

 

The S&P BSE Sensex closed the week that ended on 6th February at 28,718 (down 465 points or 1.59%), while the NSE’s CNX Nifty ended at 8,661 (down 148 points or 1.68%). Previous week, we mentioned that Nifty may be trapped in a range of 8,600-8,900.


On Monday, the flat opening on the Nifty was followed by the index trading in the red for most of the session. Nifty closed at 8,797 (down 12 points or 0.13%). India fiscal deficit reached 100.2% of Budget Estimate in nine months ended December 2014 to Rs5.32 lakh crore.


In January, India’s manufacturing activities expanded at a three-month-low pace, as orders moderated. The HSBC PMI declined to 52.9 points in January, compared with 54.5 in December.


On Tuesday, the Reserve Bank of India (RBI) in its sixth bi-monthly monetary review announced reduction in the statutory liquidity ratio (SLR), while keeping other key rates unchanged. Nifty closed Tuesday at 8,757 (down 41 points or 0.46%).

 

Eight core industries comprise nearly 38% of the weight of items included in the Index of Industrial Production (IIP). The combined index of Eight Core Industries stands at 172.7 in December 2014, which was 2.4% higher compared to the index of December 2013. Its cumulative growth during April to December, 2014-15 was 4.4%.

 

Domestic oil marketing companies (OMCs) on Tuesday slashed petrol prices by Rs2.42 a litre and diesel price by Rs2.25 a litre in line with the decline in global oil prices.

 

Wednesday was the fourth consecutive session of Nifty closing lower. Nifty closed at 8,724 (down 33 points or 0.38%). The HSBC India Services PMI Business Activity Index edged up to 52.4 in January 2015, from 51.1 in December 2014. According to survey responses, the latest increase in the services activity reflected further growth of new business during the month.

 

Pessimism on the Nifty continued on Thursday. During the afternoon session, the 50-share index shot up for a while but met with severe selling in the last 45 minutes and hit a lower low before closing near the same level. Nifty closed at 8,712 (down 12 points or 0.14%).

 

The stance of European Central Bank (ECB) standoff between the Greek government and its international creditors by declaring it would stop accepting Greek bonds as collateral for central bank loans added to the negativism on the bourses. The market was also nervous ahead of Delhi elections, which seemed to be a close race between Bharatiya Janata Party (BJP) and Aam Admi Party (AAP).

 

RBI on Thursday allowed Foreign Portfolio Investors (FPIs) to invest their coupons received on investments in government securities back into such bonds. These investments would be allowed even after the FPIs having fully utilised the applicable limits of $ 30 billion.

 

On Friday, Nifty witnessed a volatile session in the red. Nifty closed at 8,661 (down 51 points or 0.58%). Ahead of US jobs report, which could provide cues on the US economic recovery, performance of the global counterparts looked mixed. Disappointing German industrial production data and concerns over Greece's future continued to affect market sentiments adversely.

 

Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:

 

User

Modi may use military option if terror attack traced to Pakistan, says Blackwill
According to Robert Blackwill, former US Ambassador to India, PM Modi will be much more likely to use military force if there is a major terrorist attack whose breadcrumbs lead to Pakistan and the Pakistani military and ISI
 
Prime Minister Narendra Modi is likely to use the military option if the next terrorist attack in India is traced back to Pakistan, says Robert Blackwill, former US Ambassador to India. He, however, expressed hope that the Pakistanis would understand that their past behaviour is unlikely to be tolerated now.
 
“Every Indian Prime Minister since the attack on the Parliament in Delhi now heading on 15 years ago has looked seriously at a military response when these incidents occur and has stepped back. But I believe that sentiment inside India has changed substantially and I think this Prime Minister is unlikely to step back,” Blackwill said.
 
“If there is a major terrorist attack whose breadcrumbs lead to Pakistan and the Pakistan military and ISI, I think that this Prime Minister is likely to use military force against Pakistan territory. It’s not a certainty,” Blackwill told reporters during a conference call organised by the Council on Foreign Relations (CFR), a top American think-tank.
 
Blackwill, who is a close watcher of India and South Asia, said Modi’s predecessors have been briefed by the Indian military on options and have never found them attractive.
 
“But I think Modi, both as a personality and reflecting Indian public opinion and political sentiment across the society will be much more likely to use military force than his predecessors,” he said.
 
“Now how that might be applied is another matter. To try to diminish the likelihood of escalation between two nuclear weapon states, but hopefully the Pakistanis understand that their behaviour in the past is unlikely to be tolerable to this Indian Prime Minister,” Blackwill said in response to a question.
 
Stephen Cohen, senior fellow in foreign policy at the Brookings Institute, agreed that Prime Minister Modi’s response to a terrorist attack emanating from Pakistan would be a different one than that of his predecessor.
 
“I think based on what he (Modi) said and I think based on the Indian public sentiment, if there was another Mumbai attack, which I don’t think it’s going to be that likely, it (India’s response) may be something quite different. There will be a vigorous Indian response. Perhaps even direct attacks on Pakistani territory, hitting camps,” Cohen said.

User

COMMENTS

vishal

2 years ago

the recent attack by both sides should be sufficient evidence for every one to know any terror attack from Pakistan will be disastrous for both sides. Indian patience because of Pakistan continuous attempt to bleed Indian security forces is thin and evaporating. It will be difficult to imagine what will happen in such circumstances.

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)