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The blog is created by an highly experienced teacher in economics which aims at excelling student and making them score 100/100 in the CBSE board exam
Class 10
Class 11
Class 12
Case Study
Chapters Covered
Human Capital
Employment
Growth and Development
An entire family of a couple and their two children allegedly committed suicide in Kerala a few days ago. The local media cited harassment by a loan app company as the reason why the family took the ultimate step.
This is just another instance that shows a deeper problem in India’s unregulated small loan market.
Money lending is a lucrative business. There are RBI-regulated banks and NBFCs, cooperative banks, microfinance companies, credit societies, and then, illegal moneylenders in this trade. In this age of technology, the last category is the faceless rioter. They are everywhere around you, but you often don’t know who the people operating behind are. The key attraction that lures gullible borrowers to these apps is little or no documentation for the loan process.
Most borrowers, who fall prey to such lenders, are usually people with irregular income and low credit ratings. The credit barrier at bigger lenders are higher and the processing time is longer. For poor-quality borrowers, therefore, the easy-to-go loan apps are the most logical option. Little does the borrower realize that they are walking into death traps from where there is no return.
It’s easy to identify the threat if you spare a minute to think about the usurious rate of interest and recovery practices before drawing the money. Such apps typically don’t have any specific rule book or trained staff to manage credit operations. On default of a payment instalment, the harassment begins by shaming the borrower in front of his family members and friends. Such harassment tactics often end up in cases of extreme distress in these families.
With small finance banks, NBFCs and MFIs now expanding operations, small borrowers don’t need to walk into the death traps of illegal loan apps for fund requirements.
The Kerala incident is just one among hundreds of such cases.
Even as the government and the Reserve Bank of India has been cracking down on illegal digital lending apps over the last couple of years, the number of complaints against such apps have more than doubled to 1,062 in FY 23, the finance ministry has told the Lok Sabha. The numbers of FY22 are not strictly comparable with those of FY23, as the data is available only from November 2021 and the number of complaints stood at 263.
Late last year, the RBI had come up with the digital lending guidelines (DLG) under which only regulated entities (RE) could lend to customers and it added that the relationship should be directly between the lender and the borrower.
As per the National Crime Records Bureau (NCRB), the total number of cyber fraud cases, which includes frauds committed through online apps, stood at 14,007 in 2021, which is the latest available data. A sizable number of such financial frauds are never registered with either the police or the RBI.
The first step is to stay away from any lenders that are not regulated by the Reserve Bank of India (RBI). The regulator has a list of legal loan apps which it has shared with the government.
Second, borrowers must report instances of harassment without delay before things take a turn for worse. Growing awareness among customers in rural centers is even more critical to prevent such cases. Stay away from such death traps.
The RBI has asked Google and Apple to stop the digital lending apps from accessing the customers' photos as well as contacts for personal loans from May 31 , 2023.
PANKAJ BHANWANI
9899971997
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Case Study-National Income Accounting
Class 12
CBSE
Read the following extract and answer the following questions
India may log a growth rate of eight per cent of real Gross Domestic Product (GDP) in FY23, said the former Vice-Chairman of NITI Aayog Arvind Panagariya. “I am willing to go out on a limb on this”, he said. The Professor of Economics and Jagdish Bhagwati Professor of Indian Political Economy at Columbia University said his estimate shall be way above the highest assessed by any research organisation or government agency for the year. The RBI estimate is 7 per cent with “risks broadly balanced around this baseline path”, the Bank has noted.
The National Statistical Office shall release the GDP data for the second quarter on 30th November.
Answer the following questions
Define the term GDP
Difference between real GDP and nominal GDP
Can real GDP be more than nominal GDP and vice versa -Comment
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Case Study
Class 09 - 12
Link of the article
The above article talks about the registration of bogus construction workers and the benefit they have got in the process. It is a true example of corruption and failure of trickle down efffect
How much do you believe of it and how you can tackle these type of problems
Do comment
Date - 4/Aug/2022
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Link for the article-Refer to the article for answering the question
Source -Hindustan Times
The message from July numbers
Websites for reference
https://aatmanirbharbharat.mygov.in/
It can be used to study the various schemes which can be used to develop exports for India
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Article by business standard
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Read the article given below followed by a discussion
Q 1 Explain the following terms-
a)Trade deficit
b) Global Energy Prices
c) Foreign Exchange reserves
d) Macro Economy
Q 2 India export earning will continue to face headwinds-What does this mean ?
Q 3 What method do you suggest for reducing our imports and increasing exports?
For queries and suggestions and guidance in the subject be feel free to contact me
Date - 20/June/21
Key Words
Inflation
Statistics
Presentation
Tabulation
Price Rise
Effect of price rise
Use of statistics
Data Analysis
Article reading
Newspaper in use