Money & Banking
Micro-finance is in danger zone: Ramesh

Micro-finance is in a 'danger zone' and to think that poverty alleviation in India is possible through this 'discredited model' is 'crap', says the union Minister for Rural Development 

 
New Delhi: Micro-finance is in a 'danger zone' and to think that poverty alleviation in India is possible through this 'discredited model' is 'crap', said Rural Development Minister Jairam Ramesh, reports PTI.
 
"Nothing can stop an idea whose time has gone. And micro- finance is in a danger zone. It is a discredited model. It has raised more questions that it has answered," the Minister said in his valedictory address at the Micro finance summit.
 
Citing the recent micro-finance crisis in Andhra Pradesh that triggered meltdown, Ramesh said he was among those who believe that micro-finance has promised much more than it has actually delivered, created more problem than actually solved and continue to promise much more than that actually put on the ground.
 
"One should be somehow more modest in the expectation of micro-finance and micro-finance institutions. To think that we are going alleviate poverty is a tall tall claim. Poverty alleviation through micro-finance -- it is crap," he said.
 
The micro-finance sector of the country had faced a crisis when the Andhra Pradesh government came up with a law to regulate the sector in 2010.
 
The law banned micro-finance institutions from collecting weekly loan instalments, doorstep business. Its direction to such institutions to secure government approval before giving a second loan to a borrower affected the sector after banks stopped giving money to them.
 
Ramesh, however, agreed with the idea of restructuring or rebuilding the model brick by brick.
 
"The objective of micro finance is very clear. It is to provide finance to people who do not have access to finance.
 
And there is no doubt in my mind that there are many advantages when it comes to delivery of finance through the micro finance route," he said.
 
Hailing the bank-link self-help groups (SHGs) as India's contribution to the world of financial inclusion, Ramesh said the fundamental focus in the banking SHG model has been building social capital, community institutions.
 
The focus has also been on delivery on public services which governments have traditionally failed to do in a satisfactory manner, he said.
 

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Police let off boy detained over 'abusive' Facebook comment on Raj Thackeray

According to police, a 'fake account' was used by unidentified person or persons in the teenager's name from which the objectionable comment was posted on Facebook 

 
Mumbai: A 19-year-old boy from neighbouring Thane district, detained on suspicion of posting an "objectionable" comment against MNS chief Raj Thackeray on Facebook, was let off after police found that a "fake account" was used by some persons in the teenager's name, reports PTI.
 
"Sunil Vishwakarma is cooperating with us in the case and was allowed to go last night after initial questioning. He is nowhere involved in the case," a senior police officer said.
 
Police in neighbouring Thane district had picked up the boy after receiving a complaint alleging that he had posted some "objectionable" comment on Raj Thackeray on the social networking site.
 
According to police, a "fake account" was used by unidentified person or persons in the teenager's name and a case was being registered in this regard.
 
Police are treading cautiously in the matter against the backdrop of suspension of two senior officers from Palghar for arresting two girls in connection with a Facebook post lamenting the shutdown of Mumbai in the wake of Shiv Sena patriarch Balasaheb Thackeray's funeral on 18th November.
 
The boy has not been charged and police have sought legal opinion, an officer from Palghar police station had said last night on condition of anonymity.
 
Thane (Rural) unit MNS president Kundan Sankhe had claimed that the boy had made "abusive" comments about Raj Thackeray and the people of Maharashtra, including women.
 
Late in the night, Additional Superintendent of Police, Thane, S Nishandar told PTI that as per the probe, some unidentified person created a fake account in the name of Vishwakarma, and posted objectionable comment about Thackeray and Maharashtrians in his name.
 
Vishwakarma had accessed his own Facebook account last on Monday, while the comment on fake account was posted the next day.
 

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COMMENTS

Shadi Katyal

4 years ago

What a shame that people are living under the fear and threat and Shiv Sena is running the show.
Can a nation live under such acts like the Nazi did during their rule.
One is shocked to hear on NDTV that Balaji is God for them and will take any action if some one makes any remarks about the family.
What kind of thinking we have?????

FMCG brand extensions more successful than new ones: Nielsen

According to Nielsen, in addition to promoting brand equity, brand extensions can grow incremental sales up to 38% and contribute as much as 30% to parent brand sales

 
New Delhi: Extensions of existing fast moving consumer goods (FMCG) brands are five times more successful than launching a new brand in India, reports PTI quoting a study from Nielsen India.
 
In addition to promoting brand equity, brand extensions can grow incremental sales up to 38% and contribute as much as 30% to parent brand sales, Nielsen said in a statement.
 
Nielsen, which is a provider of market insights and information, studied top brands in 46 FMCG categories and 82 brand extensions in food and non-food categories to come to its conclusions, it added.
 
"Brand extensions, or stretching your existing brand, increase your chances of innovation success. Not only do brand extensions leverage the equity of the parent brand, but they also lead to faster adoption and deliver higher marketing efficiency," Nielsen India client business partner Arun Chogle said.
 
According to the study, when the parent brand was a leader in the category, 59% of brand extensions were also successful.
 
When the parent brand was not among the top five players, 35% of brand extensions were successful, it added.
 

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