Moneylife Knowledge Centre set up by the Moneylife Foundation in Mumbai will supplement the efforts of regulators and providers of financial services at spreading financial literacy and redressing grievances.
Sanjay Nirupam, Member of Parliament, on Saturday inaugurated the Moneylife Knowledge Centre—a seminar-counselling-and-free reading room— set up by the Moneylife Foundation at Dadar in Mumbai, on Saturday.
Introducing the Congress MP from Mumbai, Moneylife Foundation’s Founder-Trustee Sucheta Dalal said, “Mr Nirupam is among those politicians who empathise with the need for financial literacy initiatives and has always made an effort to understand issues and take them up in Parliament. He has been especially concerned about the lack of understanding among borrowers of concepts such as floating interest rates. With teaser loans being offered by the biggest banks, these issues will come up again. At that time, investors and consumers will need a valuable voice like Mr Nirupam in the Lok Sabha.”
Speaking on the occasion, Mr Nirupam said, “I congratulate the Moneylife team for taking this wonderful initiative. I am happy that the Moneylife Knowledge Centre is being launched on my birthday. I would like to give my best wishes to Moneylife Foundation’s Knowledge Centre.
Talking about the need for financial literacy among the masses, Mr Nirupam said, “India’s middle-class population is set to reach nearly 80 crore. The entire world is eying to capture this huge market, which has highlighted the need to teach economics to the population, especially the middle-class. There is a deluge of schemes in the market that lure investors into buying them. That is why it is important that the masses are educated about various financial and economic aspects.”
Earlier, Debashis Basu, Founder-Trustee of Moneylife Foundation, said, "The need for Moneylife Foundation and the Moneylife Knowledge Centre arises from the stark reality that the ordinary person with money to spare is staying away from capital markets and is also wary about mutual funds. This is evident from very poor subscriptions to Initial Public Offerings (IPOs) and also mutual funds, which is in sharp contrast to the vaulting stock indices, frequent public issues of equity and extensive media coverage of investments. There is also very poor knowledge about basic financial products such as credit and debt cards, insurance, mortgage or housing loans etc, and the precautions required while using electronic transaction systems.”
The Moneylife Knowledge Centre will supplement the efforts of regulators and providers of financial services at spreading financial literacy and redressing grievances. The Centre would aim at creating deeper interest in financial markets, increase financial literacy and protect investors and consumers through information, counselling and grievance redressal.
The Moneylife Knowledge Centre is stocked with a range of books, magazines and financial literature—starting from the basic comic books produced by the Reserve Bank of India (and contributed to ML Foundation)—to reference books for students and market experts. There is also a range of corporate biographies and books on business, economics and finance. Members of the public can access the reading room free of charge.
Moneylife Foundation is registered as a not-for-profit trust and intends to engage in spreading financial literacy through workshops, round-table meetings and awareness campaigns; advocacy to crystallise policy and bring about regulatory changes to protect investor rights and grievance redressal, counselling and research. The Foundation is offering free inaugural membership. Those who wish to become members can contact 022-24441060 or visit www.moneylife.in/foundation.
While the initial focus of the Moneylife Foundation will be on Mumbai, it has plans to extend its reach to other cities where investors are deprived of opportunities to access unbiased information about financial products and are unaware of the cares to be exercised while borrowing or investing.
Moneylife Foundation is also looking for experts who are willing to volunteer their time (for a small honorarium) to conduct workshops and to translate this effort into regional languages.
For more information contact:
Moneylife Foundation: Deepa: 022-24441059-60
Or write to [email protected]
Address: Moneylife Foundation, 304-05, Hind Services Industries Premises Limited,Off Veer Savarkar Marg, Shivaji Park Seaface,
Dadar (W), Mumbai 400 028 (near Chaitya Bhumi)
Pictures of the event
Online shop eBay’s popular electronic payment system PayPal seems to have been blocking all personal transactions to and from India. Strangely, it has offered no justification for this decision
In a perplexing move, popular electronic payment gateway PayPal Inc has suddenly started blocking personal transactions to and from India. PayPal was allowing business transactions till a few days ago, but now has also stopped it along with personal and gift payments.
PayPal is an online payment and money-transfer service that allows you to send money via email, phone, text message or Skype.
This move from PayPal has left thousands of its Indian users, especially IT coders who work with many entities overseas and receive payments through PayPal, high and dry. Users whose transactions have been reversed are venting their frustration on online forums and message boards. Funds requested through PayPal India are being reversed to their senders, and users have no access to them.
Here is the standard response PayPal is sending to customers:
“Your payment of xxx has been sent back to the sender of the payment. We reversed this payment because we have stopped allowing personal payments to be sent to or from India.
“If this was a payment for a purchase of goods or services, and not a personal payment, then you may contact the buyer and have him or her resend the payment as follows: (a) click the Send Money tab, (b) select “Goods,” and (c) provide a shipping address.
“If this payment was a personal payment such as a gift, then we have requested that the sender find another payment method until we restore personal payments to and from India. We are trying to resolve this issue as quickly as possible and we’re sorry for any inconvenience.”
According to a reports from techcrunch.com, Anuj Nayar, director for global communications at PayPal had said, “I can confirm that personal payments to and from India have been suspended while we address some questions from our business partners. You can still make commercial payments. We’re trying to resolve the situation as quickly as possible and we’re sorry for any inconvenience this may cause.”
Last year in November, the Indian government had issued a notification (No No.13/2009/F.No.6/8/2009-ES dated 12 November 2009) for prevention of money laundering. Under this notification, the Reserve Bank of India (RBI) has asked all banks and financial institutions to maintain proper record of all transactions and verify identity and address of a non-account based customer or a walk-in customer.
Payments to and from PayPal to its account users in India may also involve the foreign exchange maintenance act (FEMA) that has been under a cloud over the black money issue. On Friday, many renowned personalities had filed another petition in the Supreme Court seeking a direction to the Indian government to bring back unaccounted black money to the tune of around Rs65 lakh crore (Rs65 trillion) stashed away in banks abroad.
Although PayPal provides money transfer service to and from India, neither the company nor its account holders pay any tax on the transaction. When Moneylife contacted the RBI to know about the PayPal issue, an official said,”We have no idea why this is happening. PayPal doesn’t come under RBI’s purview.”
The question is then how can the country receive money, in foreign currencies, without any accountability and supervision? Some of the comments on techcrunch.com also say that many Indian account holders ask their payee to make the payment as a ‘gift’ rather than payment for services to avoid PayPal fees. One such comment said: “A lot of business must be transacted in India via PayPal—business done with personal transactions. So a money-hungry Indian government is aggravated at some perceived revenue loss (taxes, customs, etc.) and (has) put pressure on PayPal to stop the payments either directly or indirectly.”
We don’t know. What we know for sure is PayPal users from India are left with no alternative but to search for an alternative payment service. Team
We expect the market to rally to about 16,500 and possibly to 17,000 before pausing or going down again
Last week we had said that the Sensex has support at 16,600. If this support is breached, we may see another round of sell-offs, all the way down to 15,500. Indeed, the Sensex tried to rally on one day of the week, but by Friday it had hit a low of 15,725. Over the week, the Sensex shed 567 points. We expect the market to rally to about 16,500 and possibly to 17,000 before pausing or going down again. We shall see when we get there.
Even though the manufacturing sector grew at its fastest pace in almost 18 months in January 2010, Indian markets struggled throughout the week. Sovereign debt problems in Europe and an unexpected rise in US jobless claims raised fresh concerns over global economic recovery.
On Monday, the Sensex declined 2 points to close at 16,356 while the Nifty was up 18 points at 4,900.
As per data released by the government, India’s exports rose an annual 9.3% in December to $14.60 billion, the second consecutive rise after 13 straight months of decline. Imports rose 27.2% from a year earlier to $24.75 billion. Exports for April-December, the first nine months of the 2009-10 fiscal year, were down 20.3% at $117.59 billion from the same period in the previous year.
The HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 Indian companies, rose to 57.7 in January 2010, its strongest reading since August 2008 and up from 55.6 in December 2009. The new orders’ index rose to 62.9 from December’s 60.1. India’s manufacturing sector grew at its fastest pace in almost 1-1/2 years in January 2010, boosted by a sharp rise in new export orders that underpinned a recovery in the industrial sector, the survey showed.
On Tuesday, 2 February 2010, the Sensex declined 193 points to close at 16,163 while the Nifty closed at 4,830, down 70 points. Indian companies raised about $20 billion from share sales in calendar year 2009. The government has targeted raising Rs25,000 crore in the fiscal year ending March 2010 by selling stakes in state-run companies.
D Subbarao, governor, Reserve Bank of India (RBI), had for the first time on Monday stated that the nation may have to take some measures towards capital control. Mr Subbarao also said that it is important for the government to withdraw the stimulus and that the government and central bank would have to coordinate in withdrawing the same. He reiterated that the economy is back on the growth path and added that the challenge is to accelerate momentum.
As per US media reports, the ISM manufacturing index for January hit a five-year high of 58.4, stronger than the expected 55.5. Personal income and spending rose, while construction spending fell 1.2% for the month of December.
On Wednesday, 3 February 2010, Indian markets gained momentum on strong response to NTPC’s follow-on public offer (FPO) and robust services sector data for January 2010. At the end of the day, the Sensex surged a massive 333 points from the previous day’s close to 16,496 while the Nifty closed at 4,932, up 102 points.
During trading hours, the government’s chief statistician Pronab Sen said that the data suggested that industrial recovery in the country was on track, but the government would wait for the March 2010-quarter economic data before taking a call on exiting stimulus measures.
The HSBC Markit Business Activity Index, based on a survey of 400 Indian firms, rose to 58.96 in January 2010, its highest since September 2008, on sharp increase in new work orders after rising to 57.41 in December 2009.
On Thursday, 4 February 2010, the Sensex closed at 16,225, down 271 points from the previous day’s close, while the Nifty declined 87 points to close at 4,845.
Housing Development Finance Corporation (HDFC) declined 3% after the RBI announced that it would disallow non-banking finance companies (NBFCs) and housing finance companies (HFCs) from resorting to short-term foreign currency borrowings.
During trading hours, government data showed that food inflation rose to 17.56% in the week ended 23 January 2010 from 17.40% in the previous week following rising prices of potato and pulses. The inflation for primary articles, which includes food and non-food items, marginally eased to 14.56% in the reporting week from 14.66% in the previous week. The fuel price index rose 5.88%.
On Friday, 5 February 2010, the Sensex declined massively by 434 points from the previous day’s close, ending the day at 15,791, while the Nifty declined 127 points to end the day at 4,719.
As per an International Monetary Fund (IMF) report, India’s economy is one of the first in the world to recover and the central bank should take a gradual approach to ensure that the recovery reaches its full potential. The IMF sees the Indian economy coming back to potential by 2010-11 to log 8% growth from the current year’s 6.75% in contrast to the government’s projection of more than 7% and the Reserve Bank of India’s latest forecast of 7.5%.
As per reports, China’s GDP growth is expected to reach 11.5% in the first quarter while the pace of the consumer price index’s rise could accelerate to about 2.5% compared to a year earlier. China posted full-year GDP growth of 8.7% for 2009 while the quarterly rate accelerated to 10.7% in the fourth quarter from 9.1% in the third and 7.9% in the second.
As per data released by the US government, initial jobless claims rose by 8,000 last week to a seasonally-adjusted 480,000 against economists’ expectation of a drop of 10,000.
According to data released by EPFR Global, emerging market equity funds lost $1.60 billion in weekly withdrawals, the biggest outflow in 24 weeks, as earnings and Greece’s debt woes raised concerns that the global recovery may falter. The report also stated that investors withdrew $516 million from Asian equities outside of Japan in the week ended 3 February 2010. Meanwhile, within Asia, China equity funds reported net outflows for the fifth time in six weeks while Indian funds lost $180 million, the most in 68 weeks, the report added.