75% of parents surveyed said they were not always honest with their children about their finances.
According to a recent survey of children age 8 to age 14 and parents, by T. Rowe Price Group Inc. it was found that 54% children approach their mothers first on financial issues compared with about 40% who approached their fathers, reports said.
Parents also conceded that talking to their children about finances was much more difficult than talking about drugs and bullying. However, parents found it easier to have a conversation about sex and puberty.
Roughly 75% of parents surveyed said they were not always honest with their children about their finances. From the total sample size, 43% of the parents said were not honest with their children about their financial worries while 32% told their kids they couldn’t afford some things even if they could.
In February, T. Rowe Price, through San Francisco-based market-research firm MarketTools Inc., conducted a survey of 1,008 parents and 837 children, where it was found that about 58% of the parents reported that their annual household income was between $25,000 and $99,999, while 7% earned $150,000 or more. The results were released in recognition of Financial Literacy Month in April, reports said.
Children said they would like their parents to educate them more about saving, and ways to make money and allowances, in comparison with other issues, reports added.
“All efforts to revive it in close consultation with the Maharashtra government had failed and the depositors were being inconvenienced by continued uncertainty,” RBI said in a notification.
The Reserve Bank of India (RBI) has cancelled the licence of The Bhusawal People’s Co-operative Bank Ltd—the Jalgaon-based cooperative bank in Maharashtra, following depositors’ concerns.
“...All efforts to revive it in close consultation with the Maharashtra government had failed and the depositors were being inconvenienced by continued uncertainty, the RBI delivered the order cancelling its licence effective from the close of business as on 22 March 2012,” RBI said in a notification.
RBI took the extreme measure of cancelling the licence of (The Bhusawal People’s Co-operative Bank Ltd) in the interest of bank’s depositors, it added.
With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of the bank, the amount insured as per the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act will be set in motion, subject to the terms and conditions of the deposit insurance scheme, it added.
Upon liquidation, the RBI said, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs1 lakh only from the DICGC under usual terms and conditions. It further said that the Registrar of Co-operative Societies (Maharashtra) has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank. The Bhusawal People’s Co-operative Bank was granted a licence by RBI on 31 March 1980 to commence banking business.
The statutory inspection under Section 35 of the Banking Regulation Act, 1949 revealed that the gross and net NPAs were assessed at 19% and 15.2% of gross and net advances, respectively, the RBI notification said.
“In view of the deteriorating financial position, the bank was placed under all inclusive directions under Section 35 A of the Act from the close of business as on 25 October 2011,” it said.
The financial parameters of the bank, it added, continued to deteriorate further as revealed during subsequent inspections conducted with reference to its financial position as on 31 March 2007; 31 March 2008; 31 March 2009; and 31 March 2010.
The country's largest lender SBI had reported record gross NPAs in Q3 at Rs40,080 crore and saw an 87.5% spike in its provisioning.
The Reserve Bank asked banks to improve their ability to manage stressed assets, but said there was nothing alarming about an unexpected rise in the non-performing assets (NPA) levels this fiscal.
"Concerns (on NPA) are there. Banks have to improve their ability to manage NPAs.
We have told banks what is their lacuna. They have to improve their information system. But we see that the situation is not alarming. Though this is our concern. Hope banks will be able to manage them," deputy governor KC Chakrabarty told reporters on the sidelines of a function organised by Yes Bank in Mumbai.
It can be noted that following the continued slowdown in economic activities on the back of rising interest rate regime, banks, especially the state-run ones, have been reporting higher NPAs in their books since the second quarter.
The country's largest lender SBI had reported record gross NPAs in Q3 at Rs40,080 crore and saw an 87.5% spike in its provisioning. But private lenders are better off.
The total NPAs in the system are set to top 3% of the total assets this fiscal, against a 2.3% last fiscal at Rs98,000 crore.
But what's worrying the regulator is the an over 300% spike in corporate debt recast this fiscal, which has already touched Rs76,251, against Rs25,054 crore in the previous fiscal. This makes the overall CDR asset in the system to over Rs1.9 trillion.
There are many critical sectors that are looking for CDRs. The textile companies are seeking Rs1 trillion worth of debts.
The discoms are also in bad shape with their debts touching nearly Rs80,000 crore, while many have recently gone for CDRs.
The deputy governor also said the central bank is concerned about the banks selling insurance products through the bancassurance channel, but did not specify the reasons.
Since most of the banks have insurance subsidiaries, they promote selling their annuity and other insurance products through their own channels, which will enable them to have a captive customer base.