Gramonnati Mandal’s Arts, Commerce & Science College,Narayangaon.
Taluka-Junnar, District-Pune. Maharashtra, India (Affiliated to Savitribai Phule Pune University, Pune) NAAC - Re-Accredited “A” Grade Id No. - PU/PN/AC/099/(1993) Website: www.acscnarayangaon.com Email – [email protected]
International Conference On Recent Trends in Commerce & Management
Proceeding No 1 - January 2018
Published by Aarhat Publication & Aarhat Journal’s 108,Gokuldham Park,Dr.Ambedkar Chowk, Near TV Tower,Badlapur(E),421503 Email ID:[email protected] Mobile No : 9822307164/8355852142 Gramonnati Mandal’s Arts, Commerce & Science College,Narayangaon.
Published by: Aarhat Publication & Aarhat Journal’s Mobile No: 9822307164/8355852142
9th and 10th January 2018
ISSN 2278-5655 Volume–VII, Special Issue–I,
EDITORS: Disclaimer: The views expressed herein are those of the authors. The editors, publishers and printers do not guarantee the correctness of facts, and do not accept any liability with respect to the matter published in the book. However editors and publishers can be informed about any error or omission for the sake of improvement. All rights reserved. No part of the publication be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording and or otherwise without the prior written permission of the publisher and authors.
Arts, Commerce & Science College,Narayangaon.
Taluka-Junnar, District-Pune.Maharashtra, India (Affiliated to Savitribai Phule Pune University, Pune) NAAC - Re-Accredited “A” Grade Id No. - PU/PN/AC/099/(1993) Website: www.acscnarayangaon.com Email – [email protected]
Our Tribute Late – Guruvarya R. P. Sabnis Alise Nanasaheb Sabnis, Founder Gramonnati Mandal
Patrons Hon. Prakash Pate President, Gramonnati Mandal
Hon. Anil Meher Chairman, Gramonnati Mandal
Hon. RavindraPargaonkar Secretary, Gramonnati Mandal
Editorial Board Dr. J. P. Bhosale Dr. S. D. Takalkar Prin.S. S. Shewale Editor in Chief Editor Principal
1.Dr. Arun Chainit (PhranakhonRajabhat University, Bangkok - Thailand) 2. Prin. Dr. Nar Bhahadur Bista (Director, University of Pokhara, Kathmandu, Nepal) 3. Dr. Md. Abdul Hakim (Bangladesh) 4. Dr. Radhe Shyam Pradhan, (Academic Director, Uniglobe College, Kathmandu, Nepal) 5. Dr. Miss. Hedhiya Dilsawar (Iran) 6. Dr. Gour Gopal Banik, (Gauhati Commerce College, Guwahati, Aasam) 7.Dr. D. B. Shinde (Principal, K. K. Wagh College, Pimpalgaon, Nashik) 8.Dr. Emelo Philip Rodriques (Professor, Goa University) 9.Dr. Sanjay Bhayani (Dean Management, Rajkot, Gujrat) 10.Dr. Ahmet Demir(Turkish, Iraq) 11. Dr. Pawan Kumar Poddar (Dean Management, Bhagalpur University, Bihar) 12.Dr.H.D.Thorat (Head Research,S.B.Patil Institute of Management, Pimpri, Pune) 13.Dr. Ali M. M. (Director, SIBER, Kolhapur) 14.Dr. G.H.Barhate(HeadResearch, C.D. Jain College, Shrirampur, Ahmednagar) 15. Dr. D.M. Gujrathi (Head Research, Malpani College, Sangamner)
Message from the Chairman I congratulate the organizers of the International conference on behalf of Gramonnati Mandal, Narayangaon, Pune Maharashtra, India. It is a very good academic activity and I am sure it will motivate the researchers to undertake further research. The conference will give quality impression about the activities of our institute to the participants and will strengthen the confidence of our faculty. The conferencedeals with the theme of International Conference on Recent Trends in Commerce & Management. I appreciate the initiative taken by Department of Commerce and Research centre of thecollege in arranging this International Conference of interdisciplinary nature providing widescope for researchers, teachers and students to interact on a single platform. I hope there will be sincere and fruitful discussion on the Recent Trends in Commerce and Management.
With best wishes…
Hon.Krushiratna Anil Meher Chairman, Gramonnati Mandal, Naraynagon, Pune, India.
Message from Principal I congratulate the whole team of Department of Commerce and Research centreon behalf of GramonnatiMandal’s, Arts, Commerce and Science CollegeNarayangaon, Pune Maharashtra, India. It is a very good academic activity and I am sure it willmotivate the Teachers, Students &researchers to undertake further academic activities. The conference will givequality impression of our College activities to the participants and willstrengthen the confidence of our faculty. I hope there will be sincereand fruitful discussion on the topic “Recent Trends in Commerce & Management.”
With best wishes…
Hon. Prin. S. S. Shewale Principal, Arts, Commerce & Science College, Naraynagon, Pune, India.
EDITORIAL In the era of Liberalization, Privatization & Globalization (LPG) the unstable Environment in the corporate & social world created confusion in the minds of stake holders. The reason for uncertainty is unstable socio-political environment. Though the change is permanent upon earth, we have to prepare our minds to accept and should digest the same. Each business entity have its own life. It is always of limited number of years. We have to find result of uncertainty and instability in the corporate world in various areas such as human resource, Commerce, marketing, finance and day to day general management. We the Gramonnati Mandal’s, Arts, Commerce & Science College, Narayangaon, particularly the Department of Commerce and Research Centrehave organized “International Conference on Recent Trends in Commerce & Management.” We think it is a unique platform and golden opportunities for academicians, Research Scholars, Faculty Members and students to present their research work and share their knowledge with suggestions. We are greatful to Gramonnati Mandal’s President Hon. PrakashPatil, Chairman Hon. Anil Meher, Secretary Hon. RavindraPargaonkar, all Directors and office bearers for their continuous motivation and help in organizing this conference. We also thankful to our principal Hon. S. S. Shewale who always appreciate the efforts of faculty members and have assured to support and motivate the academic and research activities. We are sure that all of you will extend your cooperation to make this conference a great success.
Dr. J. P. Bhosale Dr. S. D. Takalkar Editor in Chief &HOD – Research Editor & HOD - Commerce
Aarhat Multidisciplinary International Education Research Journal (AMIERJ) EduIndex Impact Factor 5.18 UGC Approved Journal No 48178, 48818
ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018
Index
Sr. Page Name of Research Paper & Researcher No. No. THE IMPACT OF BRAND EXPERIENCE ON BRAND LOYALTY IN BANKING INDUSTRY 1 01
ZAHRA GHANDEHARI ALAVI HEALTH AND SAFETY AT MANUFACTURING INDUSTRY
2 13 DR. MALLIKARJUNA N. L. CHITRA A CRITICAL STUDY ON CONSUMER BUYING BEHAVIOUR TOWARDS INSTANT FOOD PRODUCTS WITH SPECIAL REFERENCE TO BHAGALPUR CITY 3 16
PRIYADARSHI ASHOK PRITI CHIRANIA M-BANKING: ISSUES AND CHALLENGES IN INDIAN BANKING SECTOR 4 25 DR. PAWAN KUMAR PODDAR DR. QUAZI MD. KAMRAN ANALYTICAL STUDY OF FRUITS & VEGETABLES MARKETING IN PUNE DISTRICT 5 30 NILESH U BANKAR DR. J. R. BHOR FORENSIC ACCOUNTING AND FRAUD INVESTIGATION 6 37 CA MOTILAL B. BHAVNANI EMERGING TRENDS IN BANKING INDUSTRY: CHALLENGES AND PERSPECTIVES 7 44
DR. J. P. BHOSALE HIGHER EDUCATION: NEED OF QUALITY IMPROVEMENT 8 49 DR. S. D. TAKALKAR ENTREPRENEURSHIP DEVELOPMENT: A CRITICAL ANALYSIS 9 54
PROF. SANTOSH RAM PAGARE ROLE OF MOBILE BANKING IN THE PRESENT ERA 10 59 DR. MUNDE SANJEEVANI DASHRATHRAO ELECTRONIC ACCOUNTING SYSTEM
11 63 PRIN. D. B. SHINDE PROF. SAVITA KULKARNI-MAIRALPANT TO STUDY OF HISTORY AND FUNCTIONS OF URBAN CO- OPERATIVE BANKS 12 67
DR. SANJAY B. SHINDE HUMAN RESOURCE MANAGEMENT AND PERFORMANCE: A REVIEW AND RESEARCH AGENDA 13 70
VILAS NICHIT ROLE OF FACULTY DEVELOPMENT PROGRAMS IN IMPROVING TEACHING AND LEARNING 14 75
DR. SUNIL ZAGADE MUDRA BANKING 15 78 DR. H. M. JARE TIME MANAGEMENT: EFFECTIVE TOOL OF MANAGEMENT 16 81 DR. V. T. PATE DIRECT BENEFITS TRANSFER (DBT) IN INDIA: ISSUES AND CHALLENGES 17 86
DR. A. A.JAGADALE M COMMERCE & ITS APPLICABILITY 18 91 DR.REKHA APPASAHEB KADHANE RECENT TRENDS IN BANKING TECHNOLOGY 19 96 DR.PAWAR SUNIL DADARAM TIME MANAGEMENT– IMPORTANT TIPS OF TIME MANAGEMENT 20 98 PRANITA P. SAHANE GOVIND H. SONAWANE CURRENT TRENDS IN STRESS MANAGEMENT 21 102 PROF. DR. SHELAR B. A. HUMAN RESOURCE ACCOUNTING (HRA) 106
22 DR. PACHORE ROHINI N.
STUDY OF IMPACT OF GOODS AND SERVICES TAX ON SERVICE INDUSTRY. (HOTEL, EDUCATION, HEALTH) 23 110
PROF. DR. GADHE D. P. A STUDY OF PREVIOUS TAX STRUCTURE AND GOODS AND SERVICE TAX 24 115
DR. VAISHALI M. DESHPANDE EFFECT OF GST ON INSURANCE 25 119 DR. RATI CHANDRA THE IMPACT OF E COMMERCE IN DEVELOPING COUNTRIES AND NEW EMERGING BRAND EXTENSION 26 122 SUROJIT SAHA DEEPAK SINGH PARMAR RECENT TRENDS IN NEWSPAPER MARKETING
27 130 NEETA MANOHAR KEDAR DR. P. V. SATHE BASIC CONCEPTS OF GOODS AND SERVICES TAX IN INDIA 28 134 SUPRIYA UTTAM JADHAV – HADAWALE A FUTURISTIC STUDY OF E-BUSINESS MODEL WITH REFERENCE TO ALL TRANSPORT INDIA PVT. LTD., DEOLA 29 139
DR. SUBHASH WADEKAR IMPACT OF GOODS AND SERVICES TAX ON INDIAN ECONOMY 30 144
DR. DEEPAK K. SURVASE BLIND SPOT AND MARKET RISK 31 148 DR. SAROJ HIREMATH IMPACT OF REMITTANCE ON ECONOMIC GROWTH AND POVERTY ALLEVIATION IN NEPAL 32 154 Dr. NAR BAHADUR BISTA, YEGYA BAHADUR K.C. IMPACT OF CORPORATE GOVERNANCE ON DIVIDEND POLICY OF NEPALESE ENTERPRISE
DR. RADHE S. PRADHAN 33 NITESH RAJ BARTAULA 167 OM SHRESTHA POOJA GNAWALI POSHAN LAMICHHANE PRATIKSHA PARAJULI FOREIGN DIRECT INVESTMENT: IMPACT ON INDIA 34 182 DR.J.P.BHOSALE UNDERSTANDING THEBASIC OFBITCOIN 35 186 CA KIRAN GAJJAR AN IMPACT OF STRATEGIC HUMAN RESOURCE MANAGEMENT ON ORGANIZATIONAL PERFORMANCE 36 192 DR.KALHAPURE BALASAHEB. B. CHALLENGES FACED BY BANK EMPLOYEES WITH THE ADVENT OF INFORMATION TECHNOLOGY: A MODERN 37 OUTLOOK 197
AUSARE INDIRARANI YASHWANT GST (ONE NATION ONE TAX)...A STUDY OF IMPLEMENTATION AND CHALLENGES. 38 201 DR. D.D. BALSARAF SHRUTI GANPULE
AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018
THE IMPACT OF BRAND EXPERIENCE ON BRAND LOYALTY IN BANKING INDUSTRY
ZAHRA GHANDEHARI ALAVI FERESHTEH LOTFIZADEH Ph.D. Candidate Assistant Professor of Marketing Department of Business Management, Department of Business Management, Qazvin Branch, Islamic Azad Zanjan Branch,Islamic Azad University, University, Qazvin, Iran. Zanjan, Iran.
Abstract With the advancement of technology and more competitive market conditions in various manufacturing and service sectors, customer loyalty is as the main asset of a company because customer loyalty leads to business success, increase profitability and customer value creation. The present filed study, conducted with actual and legal costumers, addresses the question whether different consumers prefer experimental appeals and experimental types creates the relationship between brand experience, satisfaction and loyalty. Brand experience is conceptualized as sensations, feeling, and cognitions and behavioral responses. In this study, brand experience affects satisfaction and loyalty. In this present research, we propose the effects of brand experiences with trust, service quality, perceived value and loyalty. The study conducted on 372 respondents in City bank branches in Tehran. This research is applied from the perspective objective and it is descriptive and correlation from the method of data collection. As a result of this study all hypothesis were confirmed. Keywords: Brand experience, service quality, perceived value, trust, customer loyalty.
Introduction marketing to the brand world and the Today, more than past, we see activities of branding (Hung bon Kim and increasing importance of the customization Gon kim, 2005). So the development of which is the main competitive advantage of consumer-brand relationship has been focus organizations and its role in success and of branding theory in recent years. A brand progress of business. (Ranjbran, and kaboli acts as a mechanism in engaging both buyer and sanayee, 2102). on the other hand given and seller in a long-term consumer-brand the importance of customer in today's relationship. (Davis, Oliver and Brodie, competitive world, particularly in the 2000; Fournier, 1998; Keller 1993, 1998; banking industry and according to research Rao and Ruekert, 1994) Notably, brand that carried out the cost of attracting new experience has attracted a lot of attention in customer is more than the expense for marketing Practice. Marketing practitioners customer retention, examining ways to gain have come to realize that understanding how and maintain customer loyalty has high Consumers experience brands is critical for priorities. On the other hand, banks that are developing marketing strategies for goods economical and service enterprises like any and service (Brakus. Schmitt & Lia firm must earn profit to survive and develop, Zarantonello 2009).in the other word, in a and this profit also depends on attracting and complex and competitive environment in the keeping customers. Moreover a new banking system, the slightest difference in category in the competition space between services along with increased customer banks is branding. Special attention to the demand, leading to major changes in this brand value, brand position, brand loyalty industry. The bank must identify the exact and brand identity of goods and services dimensions of customer loyalty so that they have been led many theorists, administrators create some systems in order to implement and researchers named the future world of and guidance customer loyalty. Therefore to
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 achieve this goal in the City bank that is one Identity, packaging, communications, and of the newly founded and private banks in environments (Brakus et al., 2009). the country which is seeking to expand its According to Alloza (2008), brand branches in other cities, the main question in experience can be defined as the perception the this research is that which are the various of the consumers, at every moment of aspects influencing the ways to achieve and contact they have with the brand, whether it maintain customer loyalty in the City bank is in the brand images projected in branches in Tehran? In this study, the advertising, during the first personal contact, relationship between brand experience and or the level of quality concerning the loyalty has been examined through three personal treatment they receive. Brand variables involving service quality, experience is created when customers use perceived value and ultimately in terms of the brand; talk to others about the brand; their effect on loyalty and trust were seek out brand Information, promotions, and examined and finally we studied their effect events, and so on (Ambler et al., on loyalty. 2002).Brand marketers must bond with Literature Review consumers by staging holistic brand Development culture of the customer experiences (e.g., Schmitt 1999, Pine and through brand experience and its relation to Gilmore, 1999).The marketing activities their loyalty to the organization is that a associated with the brand, effects the discussion that has always been considered consumers" mind-set" with respect to the by the experts and in the recent years brand-what they know and feel about the attempts have been made to increase the brand. The customer mind-set everything quality of the product or service by that exist in the minds of customers with providing necessary approaches to respect to a brand; thoughts, feelings, organizations(Jskv et al 2009). For as much experiences, images, perceptions, beliefs, as, consumers are as a milestone in the attitudes and so on, that is, brand equity as successful marketing activities and study on defined by Ambler (2000). When consumers the factors which affect consumer behavior search for, shop for, and consumer brands, causes to access to knowledge and they are exposed to utilitarian product understanding of consumer behavior however; they are also exposed to various therefore Marketers will be able to provide a specific brand-related stimuli, such as brand- product that is more adapted to the needs and identifying colors (Belize and Hite, 1992; demands of consumers. In other words, they Gorn et al., 1997; Meyers-Levy and offer a product which is a result of factors Peracchio 1995), shapes, typefaces, influencing consumer behavior and it background design elements(Mandel and provides maximum satisfaction. In Johnson, 2002) , slogans, mascots, and brand competitive marketing, loyalty is an essential character (Keller Brakus et al., 2009). These element of the marketing strategy by brand-related stimuli appear as part of a reduction the predictive power and brand's design and identity (e.g., name, logo, difference between products. (Yearend & signage), packaging, and marketing yaw, 1997). communications (e.g., advertisements, Brand experience brochures, Web sites) and in environments Most of the research on experiences in which the brand is marketed or sold (e.g., to date has focused on utilitarian product stores, events).These brand related Stimuli attributes and category experiences, not on constitute the major source of subjective, experiences provided by brands. Brand internal consumer responses, which is experience is conceptualized as sensations, referred as "brand experience" (Brakus, et feelings, cognitions and behavioral al., 2009). Thus, brand experience is responses evoked by brand-related and conceptualized as subjective, internal stimuli that are part of a brand‘s design and Consumer responses (sensations feelings,
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 and cognitions) and behavioral responses purchases (Oliver, 1980), completing evoked by brand related stimuli that are part cyclical pattern (Bennett et al, 2005). of a brand's design and identity, packaging, Service quality communications and environments. Brand Parsam Introduced service quality is experience conceptualization and scale as a result of the gap between customer development are very important for expectations and perception of service understanding and managing brand trust and received. (Venus 59, 2101). Customers often loyalty concepts (Brakus et al, 2009). Brand compare services provided of an experience can be positive or negative, organization by service of its expected. They short-lived, or long-lasting. Moreover, brand go back to this organization If services experience can positively affect consumer provided prior to or at least equal to it's the satisfaction and brand loyalty, as well as expected service. Thus it is the responsibility brand trust (Zarantenello and Schmitt, 2000; of the service provider identifies and reviews Ha and Perks, 2005). Brand experience is their customers' expectations about services empirically distinct from other brand and quality (Kotler and Armstrong. customer-focused concepts including brand Perceived value attachment, brand involvement, and Marketing activities have mainly consumer delight (Zarantenello and Schmitt, been established based on customer value 2000). (Holbark 1994). Perceived customer value is Brand Loyalty defined in marketing to assess the costs and Loyalty, as defined by Oliver (1997), benefits gained from the purchase of a is "a deeply held commitment to rebut or product or service (Yang and Peterson repatronize a preferred product/service 2004). Previous research suggests that consistently in the future, theory causing perceived value increases customer repetitive same-brand or same brand-set satisfaction and future purchases (Jenkins purchasing, despite situational influences 2010). and marketing efforts having the potential to Brand Trust cause switching behavior" (Chaudhuri and Trust is essential in building strong Holbrook, 2001). In marketing literature the consumer-brand relationships (Fournier, term loyalty has often been used 1998; Urban, Sultan, and Qualls, 2000), and interchangeably with its operational it is positively related to brand loyalty (Lau (measurement) definition to refer to; repeat and Lee, 1999). Consumers develop trust in purchase, preference, commitment and a brand based on positive beliefs regarding allegiance. In addition, loyalty has been their expectation for the behavior of the referred to in a variety of market-specific organization and the performance of contexts, for example, service, store and products a brand represents (Ashley and vendor loyalty, contexts that reflect the unit Leonard, 2009). Trust reflects cumulative of measurement; customer and brand loyalty effects over time on loyalty in high- (Algesheimer et at., 2005). involvement, high-service product markets Brand satisfaction (Chiou and Droge, 2006). Satisfaction is defined as an effective The closest and most important response to purchase situation (Babin and internal and external research done Griffin, 1998; Bagozzi et al., 1999; Bennet et previously in connection with the subject of al., 2005; Anderson and Narus, 1990). research has been mentioned in the Satisfaction is a positive affective reaction to following: an outcome of a prior experience (Ganesan Mohammad Ishaq in 2012 examined 1994). The satisfaction derived and attitude customer loyalty by the three main variables formed as part of a prior experience of service quality, perceived value and the (Ganesan, 1994) then impacts on subsequent company's image. He has done a research in the telecommunications industry in Pakistan
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 conclude that image company does not have versa. any influence on customer loyalty and vice Table1- Pass related literature review Survey Results Authors Affecting variables on brand Positive influence satisfaction and Hosseini and Satisfaction, trust, brand loyalty, trust and Loyalty and value Ahmadinejad equity in the bank Special brand with satisfaction and (2008) loyalty in banking industry. Confirmed the positive relationship Rnjbrban, Perceived value, service between service quality, perceived Moradian, quality, customer value, customer satisfaction and trust industries (2012) satisfaction, Loyalty by Brand Citizen Confirmed the positive relationship Taleghani and Customer satisfaction, between service quality and customer Mir Mousavi quality of service in banks satisfaction (2011) Confirm the relationship between Samadi and Customer satisfaction, service quality, perceived value and Alexander service quality, perceived trust On customer satisfaction (2011) value and trust There is a positive relationship Brakus. Schmitt Brand experience, loyalty, between brand experience and loyalty & Lia customer satisfaction and between customer satisfaction Zarantonello ( and loyalty . 2009) Brand experience impact on trust, Thomas. Brand experience, trust, brand reputation and customer Veloutsou ( brand reputation, customer satisfaction 2011) satisfaction Positive relationship between the Sahin.Zehir.Kita Brand experience, brand brand experience and trust pc(2011) trust, brand satisfaction and Positive relationship between brand brand loyalty experience and satisfaction Positive relationship between brand experience and loyalty Confirm the relationship of trust and Luarn & Lin Trust, satisfaction, perceived satisfaction on the commitment and (2009) value, commitment relationship commitment and loyalty on brand Confirm the moderator role emotional Ebad Baig & Emotional satisfaction, satisfaction to brand loyalty Khan (2010) customer satisfaction, brand loyalty Confirmed the positive relationship Yeung & Service quality, perceived between service quality and customer Leung(2011) value, satisfaction satisfaction and Confirmed the positive relationship between satisfaction and brand loyalty Confirmed the positive relationship Hsiung (2011) Brand image and customer between brand image and brand satisfaction. loyalty by making adjustments demographic variables Confirm the relationship between Mirabi vahid Customer loyalty in banking service quality and perceived value to Reza & services customer loyalty vazifefdust
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Hossien & Sabgoo Monsef Seyed Mahamoud (2012) Confirm Service quality, motivation Seth & Deshukh Service quality, motivation and behavior customer on the loyalty (2006) and behavior customer on the loyalty Confirm the relationship between Scachez, Perceived value, brand perceived value and customer callarisa & experience of tourism experience odriguez (2006) lot. And abroad as well as researcher found a Perceived value and service quality few articles to be review. are two factors affecting the level of customer loyalty. He has been compared it to Develop hypotheses and Conceptual other research in the American and European Model countries and resulted culture plays an A strong brand has a positive impact on important role in the loyalty of customers in consumer attitudes toward the company's the telecommunications industry. identity. A positive attitude is shaped in Yang and Peterson in 2004 examined order to have a good experience. Awareness the issue of perceived value, satisfaction and of the brand name and logo has an effect on loyalty with respect to the switching cost. the perceptual quality of the customer will These researchers collected used data lead directly to loyalty (Keller, 1993). On through review websites and sending 4000 the other hand, development of relationships emails to customers. Base on the results of between brands and consumers result in this research, the perceived value and focusing on the hypotheses brand so that satisfaction have a meaningful and direct brand act as a mechanism that the stable relationship with loyalty of customers. It relationship can involve seller and buyer so shows that the switching cost as the brand experience is the input and the brand moderator variable compared with loyalty is output (Rovkt, 1994. Fournier, satisfaction and perceived value has less 1998. oliver, Brody and David, 2000). Sahin impact on loyalty. et al (2005) in a study presented the effects In other research, Sahin et al (2005) of brand experience, trust and satisfaction on examined the effects of brand experience, customer loyalty in an automobile factory confidence and satisfaction on customer and they resulted that for customer loyalty, loyalty of manufacturing company in companies need to feel satisfied with their London. In their research they reviewed the brand experience and encourage customers relationship between variables such as brand to loyalty through trust. Also in 2009, an experience and loyalty, brand experience and investigation was carried by Bruck and satisfaction and satisfaction and loyalty and Brands that discussed the aspects of brand all were confirmed. The findings also experience and concluded relationship indicated that satisfaction as a mediator between experience and brand loyalty is variable has been which has a significant positive. In this research, five features of impact on customer loyalty. Briefly, table 1 brand were examined including intimacy, summarizes the internal and external excitement, competence, sophistication and research done in this field. As can be violence and they announced there is a direct observed in the relationship between brand relation between brand associations and the experience and loyalty has not been done a degree of customer loyalty. In all of the research that done the direct and positive
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 relationship between experience and brand loyalty are confirmed.
Figure1: Research Model ((Sahin et al., 2011)
In 2011, Azizi. Ketabi and Kamal Hypothesis in this research: presented a model in an article that The current model in this study has investigates the effects of brand experience been developed from two researches. One of and satisfaction in the structure of brand them is Aziz Sahin, Kamal and KIyatibi, in loyalty that they reviewed the impact of the 2011 presented a model of Brand, brand experience on the satisfaction and Experience, and Satisfaction in Brand loyalty and resulted there is a Positive Loyalty Structure. Another is Miraby, relationship between the dependent and Vazifedoost and Shabgoo in 2012 that independent variables. entitled ―design a model for describing In this model, the experience refers customer loyalty to brand and customer to the response of consumer within a satisfaction on loyalty‖. specified time and brand experience includes Based on the conceptual model, research assessment, attachment, affiliation, brand hypotheses include: personality and customer delight. Brand H1: Brand experience has a positive effect experience has an effect on behavior. on loyalty. Directly and indirectly through impacts H2: brand experience has a positive effect on customer satisfaction and loyalty to the satisfaction brand character. On the other hand, this H2-1: brand experience has a positive effect model is also based on an article Mirabi, on perceived value vazifedust and Shabgoo in 2012 that H2-2: brand experience has a positive effect customer satisfaction with the components on service quality. of service quality, perceived value and trust H2-3: brand experience has a Positive effect has shown that separately and generally on the trust brand experience is evaluated on each of H3: satisfaction has a positive impact on these components. loyalty. The conceptual model of this H3-1: perceived value has a positive effect research developed in the combination of on loyalty. these two models. H3-2: service quality has a positive effect on loyalty.
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H3-3: trust has a positive effect on loyalty from sample as correlation matrix or becomes covariance and be defined by a set Research Methodology of regression equations, model can be This research In terms of methods analyzed by using (LISREL) software, and and implementation of descriptive - test fitting of it for society that samples analytical design with an emphasis on extracted from. Statistical population of this correlation branches and in terms of goal is research involve real and legal customer of applied type finally, in terms of method of City bank in Tehran that they have active data collection and information, type of this deposit account and use the banking services is field research. In the present study, in more than 4 years. Sampling procedure of order to use the views and attitudes of bank this research is cluster that Tehran was customers, questionnaire is used, questions divided to the five regions North, South, in the questionnaire was designed in a way East, West and Center and the sample size that respondents, mark items based on the was estimated 384 by using the formula of five-interval Likert scale of very low to very Cochran that at the end , among high. questionnaires, 372returned questionnaires In this study, to analyze the data and were completed and the data was entered hypotheses testing is used descriptive into the system. The sample size was statistics and structural equations method, obtained 372 in the Confidence level of 95% and for implementation of structural and estimated error of % 5 in the Population. equation model the LISREL software, was To achieve the minimum required sample used. One of the methods for reviews causal survey (372 customers), 375 questionnaires relationships between variables is "structural were distributed among bank customers. equations model". This method is mentioned as a causal model. When the data obtained Table 2- operational definition of variables Variable
Data Analysis and Findings respondents. Also in Table 4, Frequency Table 4 shows Frequency distribution distribution the other variables shown. of general or demographic variables. Based One sample Student‘s t-test on the table, 156 respondents are female and This study consisted of 5 variables 216 males make up 58 percent of the that each on has several agents. Brand experience, perceived value and trust have 2
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 agents, service quality with 3 agents and the these questions and value of test is loyalty has no agent. The researcher used significant and according to the amount of one sample T-test to determine the current T-Test and confidence interval, It can be said status of each question so that other the current status of each of the agents in the variables except the variable loyalty are in study are greater than the value of the test proper status. The significance level for all (3) and they are in the proper status. agents was tested that is smaller than the error rate (0.05, therefore difference between Table 3 - Demographic variables
Correlation analysis between variables There are the results of the correlation Before the model in terms of between the endogenous and exogenous structural equation to be investigated, the variables of the model In Table 5 that show correlation between the variables was the Positive and significant correlation for examined. SPSS software and the Pearson them. Respectively the highest and lowest correlation test were used to assess the correlation is between the variable of loyalty intensity of this relationship and type of and perceived value (599 /.) and brand relationship between the dependent and experience and trust (273 /.). independent variables and to test hypotheses. Table 4 - Results of the correlation variable loyalty Brand experience Perceived value Service quality Trust Loyalty 1 0.328 0.599 0.347 0.465 Brand experience 1 0.488 0.326 0.273 Perceived value 1 0.364 0.306 service quality 1 0.327 Trust 1 Structural model of (path analysis) Structural equation modeling with using research In this section, we tested the LISREL statistical software was used for the hypothesis of model with structural analysis. test the hypothesis. This structural model of
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 research is shown in Figure 2 in standard mode.
Figure 2. Structural model of research in standard mode
According to Table 7, all indicators of model fitting have desirable condition. Table 5- current and ideal State of model fitting indexes Fitting indicator Desirable Status Status model RMSEA less than 0.08 is Appropriate 0.02 χ2 to df less than 0.03 is Appropriate 1.15 GFI Above 90% 0.94 AGFI Above 90% 0.91
In Table 7, RMSEA and χ2 are both appropriate and low. Therefore, the research model has a high degree of fitness and reliability. In Table 7, the path coefficients and significant numbers are considered for each one. This table shows the direction and intensity of relationships and provides judgments about the research hypotheses. In Table 8, all of the studied pathways in the research are positive and significant. In other words, all the paths showing the effect of exogenous variables on endogenous variables are positive and significant. Table 6 Results of test of hypotheses about relations between variables Relationship Path coefficient T value Test result Direct influence indirect influence H1 0.49 0.17 4.42 Confirmed H2 0.68 - 8.56 Confirmed H2-1 0.58 - 8.59 Confirmed H2-2 0.67 - 9.49 Confirmed H2-3 0.55 - 8 Confirmed H3 0.25 - 2.31 Confirmed H3-1 0.29 - 3.89 Confirmed H3-2 0.20 - 2.55 Confirmed H3-3 0.28 - 3.96 Confirmed
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Conclusions banks is effective on the customer The main objective of this study was satisfaction and loyalty. Also the level of to analyze the effects of brand experience on service that customer receive from banks, brand loyalty. The domain of consumer level of value which they want from bank by behavior research is based on the experience of brand and the degree of trust relationship between brand experience and in dealing with the bank has a direct brand loyalty in customers of City Bank relationship customer loyalty and generally Branches in Tehran. 400 questionnaires in 5 customer satisfaction from the banking points of the North, South, West, East and services is effective on the level of loyalty. center of Tehran were distributed. as the The results showed that the result, 372 cases were investigated for relationship between the brand experience completeness. and brand loyalty in the first hypothesis, is To evaluate the impact of direct and meaningful relationship and demographic variables on customer loyalty, analysis of brand experience positive effects T-test and ANOVA test were used. Test on brand loyalty. And these findings by results indicate that each of the demographic Sahin et al. (2011) and Smith and Zrantlo in variables have different effects on the bank's 2009 were confirmed. Relationship between customer loyalty. At reviews the age of brand experience and satisfactions was respondents was determined that People with verified and it is positive and significant and an mean age between 20 to 30 years than in if customers experience a brand and be people between the age 30 to 40 and 50 to 60 satisfied, it will cause loyalty in customers have less loyalty. In examining the education Sahin et al. (2011). On the other hand, level of respondents, There is a difference regarding to the relationship brand between the average of the different experience as independent variables with categories of education respondents and three mediator variable service quality, those with a bachelor's degree are loyal than perceived value and trust that a direct the other groups. In investigating variable of relationship was proved and if City bank benefit from the services of the bank who brand were experienced by the clients of the has experience for 3 months in the use of bank in accordance with the service quality banking services are less loyal than those of bank and perceived value is consistent who benefit from the services of the bank for with their interests, they will trust and 2 years. There is no meaningful difference eventually they become loyal customers of between the mean various categories as way the bank, thus the relationship between of familiar, performing the rest banking mediator variable with the dependent affairs and occupation of person. By using variable loyalty was proved. confirmatory factor analysis and structural Suggestions equation models, the brand experience on Selling banking services is the the loyalty and customer satisfaction at the beginning of a long-term relationship with same two level of model: service quality, the customer. For more loyalty of customers, perceived value, trust in the banking city bank executives should pay more industry's has a positive impact. attention to the depth and length of Satisfaction also has positive effects relationships with customers, and in this on loyalty. In other words, service quality, regard, the attention to the psychology of perceived value and trust have a great and emotions, affections and customer desires as important influence on loyalty. They are the well as talent, cognition and thinking it is major elements to retain and attract very important from the bank. The customers to the bank. On the other hand, strengthening of the two important elements due to the fact that banks are primarily of the emotion impact and the link between service organizations, they are interacting the bank and the client can lead one of the directly with customers; brand experience of bank's priorities so that the customers will
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 use the Bank's services again. On the other Consequences of Customer Satisfaction hand, it is essential for Bank City executives for Firms‖, Marketing Science, Vol.12, to make strategic plans, cost less, and No.2, p.125-143. appropriate advertisements to carve City 5. Anderson C. James & Narus A. James, Bank Brand in the minds of their customers. (1990), ―A Model of Distributor Firm To create a sense of satisfaction in customer, and Manufacturer Firm Working create ATMs, heat and cold appliances, Partnerships‖, Journal of Marketing, provide facilities such as telephone services, Vol.54, 42-58. Internet and quiet and relaxed, undisturbed 6. Ashley, Christy and Leonard, Hillary A. location, and holding in-service training for (2009), ―Betrayed by the Buzz? Covert employees to build skills, speed and Content and Consumer-Brand accuracy will lead to better customer loyalty Relationships‖, Journal of Public Policy to the bank. Implementation of e-banking in and Marketing, Vol.28, 212-220. accordance with customers' requirements 7. Brakus Josko, Schmit Brend& and planning in advertising will be caused to Zarantonello Lia. (2009), "Brand build confidence in the brand-name City experience: What is it? How is it bank. The mutual understanding of the needs measured? Does it Affect Loyalty?" of customers in the undergraduate education Journal American marketing (the highest percentage of clients in the Association, vol.73, 52- 68. demographic variables of education) and the 8. Buil Isabei& De charnatony Leslie & attention to the records of people's benefits Martinez Eva. , (2013), "Examining the and special privileges from other factors role of advertising and sales promotions affecting customer loyalty to the brand of the in brand equity creating" Elsevier, City bank. One of the main limitations of Journal of business research, Vol.66, this research is the selection of statistical 115-122. samples. The statistical sample of the 9. Carroll, Barbara A. & Aaron Ahuvia, research is limited to customers of Bank of (2006), ―Some Antecedents and the City of Tehran Branches who have an Outcomes of Brand Love,‖ marketing active deposit account. They have been Letters, vol .17, 79–89. selected for banking services for more than 10. Chaudhauri, A. & Holbroo.k, M.B, four years then and other customers of this (2001),"The chain of effects from brand bank should be omitted and the trust and brand affect to brand generalization of the results to all customers performance, the role of brand loyalty, of banks should be cautious. The other Journal of Marketing, Vol. 65,81-93. important limitation of the research was the 11. Chisnall, P. M. (1992), Marketing lack of proper and relevant scientific Research: International Edition (4th ed.), resources related to the brand experience, Singapore: McGraw-Hill. especially in the field of services and 12. Clarke, A. (1999), Evaluation Research: obtaining the necessary information and its An Introduction to Principles, Methods relation with loyalty. and Practice, Thousand Oaks, CA: Sage References Publication. 1. Abrahimi, A, et al, (2007). Marketing 13. Davari, M. & Solimani, b. (2011). management, Samat, Tehran. Branding in the financial services 2. Aker D. &Keller k. (1990).consumer market, focusing on the banking Evaluation if brand Extentions. journal industry, Rasa, Tehran. of marketing, 54(1), 27- 42. 14. Davis, D., & Cosenza, R. M. (1993) 3. Ardestani Saleh, A. & Saadi, M. (2009), Business Research for Decision Making. marketing research, adbstan, Tehran. Belmont, California: Wadsworth. 4. Anderson, Eugene, W. and Sullivan, Mary W., (1993), ―The Antecedents and
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15. Delavar, A. (2006). Theoretical and 20. Jekins, E.L, (2009), the effect of practical research in the humanities and customization customer loyalty programs social sciences, Roshd, Tehran. on value and loyalty intention, Indian 16. Fukuyama, F, (1995), Trust, the free Pursue University, Master of Science Press, New York. thesis. Kassim, Norizan & Abduiiah, Nor 17. Hafeznia, M. (2003), Introduction to Asiah,(2010), the effect of perceived research in the Humanities, Samat, service quality dimensions on customer Tehran. satisfaction, trust and loyalty in e- 18. Hosseini, M. & Ahmadinejad, M. (2008). commerce setting Across cultural Effect of customer satisfaction, customer analysis" Asia pacific Journal of trust and brand equity, brand loyalty, of Marketing,Vol.30. Klink R.P& Smith the customer behavior and attitudes, D.C, (2001), Threats to the external Journal of Management, vol. 33. validity of brand extension research, 19. Heidarzadeh k. et al, (2008). The journal of Marketing Research, Vol. 38, relationship between the individual and 326-335. lasser W. BanwariM & ArunS. the impact on service satisfaction, (1995), Measuring customer –based customer loyalty, Islamic Azad brand equity of journal of consumer University, Journal of Marketing marketing, Vol.12. Management, vol. 4.
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HEALTH AND SAFETY AT MANUFACTURING INDUSTRY
DR. MALLIKARJUNA N.L. CHITRA Chairman of Management Department Research Scholar Akkamahadevi Womens University Management Department Akkamahadevi Vijayapura Womens University Vijayapura
ABSTRACT Health and safety issues have always been a major problem and concern in the manufacturing industry. Wherever reliable records are available, manufacturing is found to be one of the most dangerous on health and safety criteria, particularly in developing countries. Efforts have been made to address this problem, but the results have been far from satisfactory, as manufacturing accidents continue to dominate the overall manufacturing industry. Despite the programs implemented by government authorities and measures introduced by companies themselves, the number of construction accidents still remains alarmingly high. In developing countries, safety rules usually do not exist; if they do, the regulatory authority is usually very weak in implementing such rules effectively. India is one of developing countries that are currently enjoying a strong growth in manufacturing activities. Unfortunately, some sectors of its manufacturing industry suffer from poor safety and health conditions. Any framework of the existing occupational and health conditions is fragmented and inadequately enforced, making manufacturing sites more hazardous. It may even be argued that relevant regulations are outdated and irrelevant in day-to-day manufacturing operations. To reach this objective an overview of the published materials as well as the legislation has been undertaken. In addition, structured interviews were carried out with selected managers from a selection of manufacturing, medium and large size. This thesis specifically, it investigates the safety perceptions, attitudes, and behaviour of construction workers and management safety practices. Based upon the analysis of the results, this study has demonstrated that the majority of those questioned Indian manufacturing companies have a poor degree of risk awareness and do not seems to take health and safety as an important issue. Key words: Health and safety, OHSAS Introduction It has Occupational health and safety In India the manufacturing industries management system. play a major role in economic development An effective safety and health of the country providing more employability management system is the key to reducing to the younger generation to become the number and severity of workplace financially independent to their daily injuries and illnesses, resulting in lower livelihood. Industries comply with accident-related costs. In this course, you international health and safety standards in will learn to effectively implement a their manufacturing process to prevent any company‘s safety and health management industrial risk/accidents. Such as working system and the four core elements of an environment, Cleanliness, temperature, effective safety and health system and the drinking water, lightening, building safety, central issues critical to each element‘s fire safety, electrical safety, chemical safety. proper management. All the manufacturing industries should Literature Review maintain BS, OHSAS (Occupational Health According to National Safety and Safety Assessment Series) 18001/2007. Council (NSC as cited in Mitropoulos, Abdellamid And Howell, 2005,p.817) a
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 hazard is ―an unsafe condition or activity 2. To identify best practices of Health and that, if left uncontrolled can contribute to an safety management system. accident‖. 3. To find out the percentage of risk and Potential hazards are identified based accidents in the industries. on the knowledge of operations and past 4. Improve the Safety of experience with similar work tasks. equipment/activities, with a special According to Abdelhamid and Everest emphasis on lifelines. (2000), occupational accidents occur due to 5. Achieve higher productivity among the one or more of the following causes:- employees by providing a safe and 1.failing to identify an unsafe condition that secure environment existed before an activity was 6. Focus on employees‘ safety and health started.2.Deciding to proceed with a work arising from chemicals and hazardous activity after the worker identifies an elements used at workplaces. existing unsafe condition or 3.Deciding to The Main functions of the Health and act unsafe regardless of initial conditions of Safety Team are:- the work environment. According to Wilson 1. Internal liaison with Managers (1989), workers are usually exposed to risk responsible for health and safety related either because of their lack of knowledge functions about workplace hazards due to limited 2. Responsible for developing and putting experience and knowledge or failure to into effect an Industry health and safety behave safely, which may be associated with policy. the workers attitude toward safety 3. Formulate and promote relevant (Abdelhamid & Everett, 2000) or the standards and supporting guidance to underestimation of perceived risk (Bailey, comply with health and safety 1997; Choudhry & Fang, 2008). According legislation. to Conor CO Reynolds; M Anne Harris; 4. Sets targets to improve health and safety Peter A Cripton; Meghan Winters (2009), and benchmark the Industry performance Bicycling has the potential to improve against others in the sector. fitness. Understanding ways of making 5. Monitor health and safety management bicycling safer is important to improving and performance of the Industry and its population health. We reviewed studies of constituent parts. the impact of transportation infrastructure on 6. Investigate accidents and dangerous bicyclist safety. To assess safety, studies occurrences, as appropriate. examining the following outcomes were 7. Liaise with health and safety included: injuries; injury severity; and enforcement authorities (HSE, Local crashes. Results to date suggest that Authority and Fire and Rescue Service). sidewalks and multi-use trails pose the 8. Liaise with Trade Unions on health and highest risk, major roads are more hazardous safety matters. than minor roads, and the presence of 9. Promote and provide health and safety bicycle facilities (e.g. on-road bike routes, training. on-road marked bike lanes, and off-road bike 10. Monitor reports of accidents and paths) was associated with the lowest risk. incidents to identify issues and solutions. Street lighting, paved surfaces, and low- Scope angled grades are additional factors that Health and safety management appear to improve cyclist safety. system is a process put in place by an Objectives employer to minimize the risk and injuries, 1. To evaluate Health and safety policy and illness. Health and Safety management have procedures with International Standards, a wide scope to implement international analyze the variance of health and safety standards in Indian manufacturing standards companies. Recent past very few researches
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 had been conducted and focused in this Limitation system to update health and safety standards The study is limited to to eliminate or reduce the risk in good Manufacturing industry .Data on work place working environment. Workers should know safety and health provide information on the about their rights in procuring a worker well being of workers beyond whether or not friendly environment that provides them a person has work. They are also useful for hazard free life, healthy life styles and safe planning preventive measure. atmosphere. Workers should be aware of Conclusion their responsibilities and duties towards the Occupational Safety and Health utilization of the ergonomic facilities (OSH) is a cross-disciplinary area concerned provided to them. This ensures a clean and with protecting the safety, health and welfare safe work environment enabling of people engaged in work or employment. occupational safety. The goal of occupational safety and health Significance programmes is to foster a safe and healthy Health and Safety management work environment. system is a planned process or procedures to This study assessed the effectiveness carry out a certain activities in work place. It of OHSMSs in improving OHSAS is the held responsibility of the management conditions. The results revealed that the and state government (Factory inspectors, safety performance of OHSAS 18001- Labor officers and welfare officers). They certified companies is better than that of used to ensure that every Health and Safety noncertified companies. Therefore, it can be standards and precautions as to taken to concluded that OHSMSs improve OHS reduce accidents and risk in work conditions and support healthy and safe place.Having this concept its more workplaces. However, establishing and significant to adopt BS 18001 and 2007, implementing an OHSMS is only the first OHSAS(Occupational Health and Safety step in the structured management of health Assessment Series) Standards. The and safety systems in the working importance of the research stems from the environment. To consolidate their role, and need to develop an understanding and increase their acceptance by employees and investigate the problem of health and safety other beneficiaries, their performance must in manufacturing Industry and make a be assessed using appropriate indicators. contribution to knowledge in this area where References a very little information exists. Addressing 1. www.occupationalhealthandsafety.com health and safety issues should not be seen 2. Journal : www.e-shaw.org as a regulatory burden as it offers significant 3. Kahn, W.A. (1990). Psychological opportunities and benefits to the conditions of personal engagement and manufacturing industry. disengagement at work. Academy of Management Journal.
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A CRITICAL STUDY ON CONSUMER BUYING BEHAVIOUR TOWARDS INSTANT FOOD PRODUCTS WITH SPECIAL REFERENCE TO BHAGALPUR CITY
PRIYADARSHI ASHOK PRITI CHIRANIA Ph.D. Research Scholar, Ph.D. Research Scholar, University Department of Commerce & University Department of Commerce & Business Administration, Business Administration, Tilka Manjhi Bhagalpur University, Bihar. Tilka Manjhi Bhagalpur University, Bihar.
ABSTRACT With globalization and modernization, the cutting edge aggressive business depends on understanding the best items and administrations that he needs. Considering reality that the buyer is the ruler, understanding the conduct of the buyers is an extraordinary test. Today, moment nourishment items possess an honest to goodness rack space in stores and general stores in India. New and high calibre of moment nourishment items have changed the way of life of individuals and prompted more number of Indian organizations enter the market with assortments of moment food items . Moment food items influence them to cook whenever with less to work, time and vitality so as to determine a specialty mastery of inferred discoveries, the examination was confined to just marked prepared to eat and prepared to cook nourishment items and to Consumers who knew about these nourishment items. The data of 110 respondents has been taken from Bhagalpur city, Bihar. The investigation uncovers that lion's share of the respondents have arranged choice in obtaining moment nourishment items. TV assumes a noteworthy part in giving data about moment food items. KEYWORDS - Globalization, Modernization, General stores, Indian organizations, Food Items, Consumers.
INTRODUCTION moment food items have changed the way The word 'food' alludes to the of life of individuals and prompted more concoction substances devoured by people number of Indian organizations enter the to keep their body in a sound and dynamic market with verities of moment condition. The human body requires nourishment items . Moment nourishment nourishment for development, repair and items spare time and vitality. Guardians can substitution of its well-used out tissues. send the kids to class to class early, go to Thus, food needs to give the required crude office in time and get more opportunity to material, vitality and different substances, include in different exercises. Urban current similar to vitamins and for the smooth ladies try to engage themselves in the working of the body, other than meeting the general public as they have advanced calorific necessities like starches, proteins, education , better business openings and fats, and so forth., India is the world's great presentation condition that expansion second biggest maker of nourishment the requirements at a quicker rate . Moment alongside China and regarded to be food items influence them to cook capability of being greatest industry with whenever with less to work, time and food and rural division contributing 32 for vitality. each penny to Indian GDP. In India, dominant part of Today, in our kitchen has imperative nourishment utilization is still at home. place by moment nourishment items. It Hand crafted nourishment items get involve a true blue rack space in stores and uncommon consideration from clients. By markets in India. New and high caliber of and by, out of home food utilization is
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 expanding because of increment in powders had made their entrance into the urbanization, separating of the conventional kitchens of most middleclass family units joint family framework, want for quality, quite a while back. There are an astounding time which converts into an expanded 15 crore white collar class people, of which requirement for comfort, expanding number 60% are underneath 35 years — a section of working ladies, ascend in per capita that is progressively relying upon prepared wage, changing ways of life and expanding nourishments. This tosses open a perfect level of riches in the center pay amass had open door for little business visionaries who achieved changes in nourishment are looking at this fragment for making a propensities. fortune. INDIAN FOOD PROCESSING In the course of recent decades, INDUSTRY India has made mammoth strides in The nourishment handling industry delivering nourishment grains, drain, in India is one of the biggest as far as products of the soil. The generation of creation, utilization, fare and development crude food materials is assessed to worth prospects. Imperative sub divisions in over Rs. 60,000 crore. After essential, nourishment preparing enterprises are optional and tertiary handling, the aggregate products of the soil handling, angle size of the business is evaluated to be as preparing, drain preparing, meat and high as Rs. 1,10,000 crore. This cost poultry handling, bundled/accommodation overwhelm mirrors the open doors that food food, mixed refreshments and soda pops handling industry offers to the economy in and grain preparing. general and business people in person. As indicated by Ministry of Food Items centered towards kids and youthful Processing Industries, the measure of the grown-ups and items obliging the food handling industry was about individuals who lead a quick advanced life. Rs.315,000 crores and included Rs.99,000 Understanding the otential and keeping in crore of significant worth included items. mind the end goal to give additionally help, Around 300 million upper and white collar the administration has exempted from class individuals expend handled extract obligation for consolidated drain, nourishment; 200 million more customers dessert, arrangements of meat, fish and are required to move to prepared food by poultry, pectins, pasta and yeast. Further, 2010. The nourishment preparing industry extract obligation on certain prepared to-eat represents 13.5% of the nation's modern bundled nourishments is decreased to 8% yield. It creates 18% of GDP and utilizes from 16%. around 19% of the mechanical work at The aggregate fares of Indian national level. Items like papad, pickle and nourishment handling industry had flavor blends have been colossally fruitful expanded by around three times to lately. The span of this specific section Rs.53,000 crores in 2003-04, from Rs.17, alone is assessed at Rs 100 Crores. Rabo 600 crores in 2002-03. Considering the India Finance had anticipated that the more noteworthy potential for food Indian nourishment preparing industry preparing industry in India, government had would increment to Rs 11,500 billion by resolved to empower different exercises for 2014-15. Prepared items like 'chapaties', the improvement of this segment. Indian 'subzies' and parcel packs of concentrated government had been offering significance curries are quick getting to be noticeably to the food preparing segment, by method consistent weight control plans, particularly for monetary impetuses to energize for youthful couples. The item run commercialization and esteem expansion of incorporates nourishments like 'puri-bhaji' farming produce, for limiting pre/post reap and 'dosa-vada'. Handled nourishment items wastage, creating business and fare like pickles, chutneys, squeezes and curry development. The legislature gave five-year
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 charge occasion for new food preparing issues as well as on issues concerning their units in foods grown from the ground health. Their thinking on nutrition and handling. From 2000-01 to 2006-07 health is based on whether the food product Government had additionally affirmed was produced locally or not and on the list recommendations for joint endeavors; of ingredients. The study also found that outside coordinated effort, modern licenses consumer‗s understanding of packed food and 100 % send out arranged units label information is low. conceiving a venture of Rs.19,100 crores Pinya Silayoi, Mark Speece amid 2012-13. Out of this, remote (2004), conducted an exploratory study on speculation was over Rs. 9100 crores. packaging and purchase decisions and REVIEW OF LITERATURE found visual package elements play a major Kamalareni and nirmala (1996), role, representing the product for many in their study have portrayed that most of consumers, especially in low involvement the instant food products. Most of the and when they are rushed. Most focus consumers regularly purchase at least three group participants say that they use label varieties of food items and they suggest that information but they would like it if it is the door to door distribution of free sample simplified. is used as a main tool of sales promotion by Vasant P Gandhi and Abraham the instant food product manufactures. Koshy (2006), conducted a study to Kotler and Armstrong (1997), examine the marketing of wheat in India, concluded the consumer purchasing focusing on the private marketing system, decisions take place over a period of time. the marketing efficiency and quality. The The overall goal during this decision study finds that the farmers now almost process is to evaluate various alternatives invariably sell in the nearby primary market and choose product that satisfies the rather than to village traders, indicating consumer in an optimal way. increasing awareness and mobility. The Consumers get influenced by study finds that typically, the market several major factors while they make their intermediaries provide hardly any special or decisions. These factors can be grouped as value adding services or development, in social, cultural, psychological and personal return for the commissions and margins, factors Schiffman and Kanuk (2000), other than conducting the transactions and defined, following are the main sources of making the payment. The farmers see that influence on Attitude formation. The considerable scope for improvement in the formation of consumer attitudes is strongly marketing system. However, the influenced by personal experience, the commission agent and traders seem influence family members and friends, relatively satisfied. direct marketing, and mass media. Direct Banumathy and Hemameena, M experience refers the attitudes towards the (2006), discussed in their study on brand product formed by the directly consuming preference of soft drinks in rural Tamil the product. Nadu that using Garrets ranking technique, Blackett and Robbins (2001), to rank factors influencing the soft drinks consistently said that the key drivers of preferred by rural consumer. They found demand for products are that, the product quality was ranked as first, awareness/familiarity, perceived quality, followed by retail price. Good quality and sales quality and price. These tool drivers availability were the main factors, which influence the perception of costumer in influenced the rural consumers of a term of decision making. particular brand of a product. Svederberg, Eva (2001), revealed Indumathi et al (2007), in their in their study that consumer‗s choice of study have revealed that occupation of the food products is based on environmental women, income of the family and saving
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 time while cooking are the most influencing association needs to build piece of the pie factors of spicy products. The authors say and benefit. The contenders are likewise that most of the consumers have purchase following a similar methodology. It 200 gm pack of powders and masala, while includes the mental procedures that small numbers of consumers prefer 100 gm customers got past in perceiving needs, packets. discovering approaches to settle these Pinya silayoi and Mark Speece requirements, settling on buy choices, (2007), conducted a study on the translate data, make arrangements and importance of packaging design and the execute those plans by taking part in role of packaging as a vehicle for consumer examination shopping or really acquiring an communication and branding. The study item. Buyer conduct is one of the investigated the knowledge about consumer empowering and testing regions in psychology which was important for the advertising examines being a human manufacturers to understand consumer movement concentrated on the items and response to their packages. The results of administrations. Understanding the conduct the study gave some insights of consumer of the buyers is an extraordinary test. preferences for food packages in Bangkok OBJECTIVES OF THE STUDY:- and Thailand, which are fair representatives The main objectives of the present of many markets in Asia, Where the study are mentioned below:- modern urban middle class is rapidly Main Objectives expanding. 1. The study is to identify the customer Sushil Kumar and Jabir Ali purchasing behaviour towards instant (2011), conducted a study for assessing foods. consumer awareness and usage of food Secondary Objective labels and influences on food buying 1. To analyse the consumer purchasing behaviour. The results indicated that frequency of instant food products. particular category of information was used 2. To know the media for selecting the more by the consumers while purchasing instant food products. packaged food products. Differences across 3. To find out the influencing factors on various socio-economic groups were also instant food products. significant in many cases. The results had 4. To study the pattern of purchase of very strong implications for regulatory consumer towards instant food authorities as well as food companies. products. Saritha Bahl (2012), has develop a METHODOLOGY model to understand the determinants of The research methodology is a way consumer behaviour regarding buying to systematically solve the research decision. The frequency of consumer‘s problem along with the logic behind shopping for food products has been them. The various aspects of methodology analysed among different occupations. adapted in the present study are discussed Efforts have been taken to know the attitude below. of the consumers towards food product The study was conducted in labels and their perception about food Bhagalpur city in between 15th August to safety which has also analysed 15th November, 2016. 110 respondents from STATEMENT OF THE PROBLEM both genders were randomly selected as the With advancement, privatization, sample for the study. Retail outlets were globalization and modernization, the cutting visited in morning, afternoon to ensure edge aggressive business depends on better coverage of all types of consumers. understanding the best items and Convenience sampling technique was used administrations that he needs. Considering to collect the data. The survey tool for this reality that the purchaser is the lord, each study was a structured survey questionnaire
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method through face-to-face interview by HIGH LOW DESCRIPTION the investigator. INVOLVEMENT INVOLVEMENT Along with primary data secondary Significant Variety Complex data has been also used for the study which differences seeking buying has been collected from various journals Between buying behaviour and online sources. brands behaviour TYPES OF BUYING BEHAVIOR: RESEARCH FINDINGS Consumer decision making varies On the basis of primary data collected with the type of buying decision. Assail through structured questionnaire the distinguished four types of consumer following analysis has been done. buying behaviour based on the degree of buyer involvement and the degree of differences among brand Table 6.1: Profile of respondents
Source: Primary data (n=110)
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Interpretation:- educational qualification, occupation, Table 6.1 depicts the personal marital status, number of family members, profile of the respondents who fall under type of family and family monthly income. different category of age groups, Table 6.2: Duration of usage of instant packaged food products
Source: Primary data (n=110) Interpretation:- and 6.36 per cent of them were using it for Table 6.2 portrays the duration of more than 15 years. With regard to ready to usage of Instant Packaged food products. cook food products, 28.18 per cent of them With regard to ready to eat food products, were consuming it for less than 5 years, 51.82 per cent of them were consuming 39.10 per cent of them had been using it for instant packaged food products for 5 - 10 5 - 10 years, 22.72 per cent of them had years, 30.91 per cent had been using of been using it for 10 - 15 years and 10 per them it for less than 5 years, 10.91 per cent cent of them were using it for more than 15 of them had been using it for 10 to 15 years years Table 6.3: Respondent’s Purchase decision
Source: Primary data (n=110) Interpretation:- purchase based on the situation/ force. With Table 6.3 states the purchase regard to ready to cook food products, decision of the respondents. With regard to 56.36 per cent of them had planned ready to eat food products, 43.64 per cent of purchase, 31.82 per cent of them followed them had planned purchase, 30.91 per cent impulsive buying and 11.82 per cent of of them followed impulsive buying and them decide their purchase according to 25.45 per cent of them decided their situation/ force. Table 6.4: Frequency of purchase
Source: Primary data (n=110) Interpretation:- once in a week, 21.81 per cent of the Table 6.4 outlines the respondent‘s respondents purchase the ready to eat food frequency of purchase of the ready to eat or products twice in a week, 14.54 per cent of cook food products. From the table it is the respondents purchase ready to eat foot clearly shown that 31.81 per cent of them products every day, 12.72 per cent of them purchase the ready to eat food products purchase the ready to eat food products
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 once in a month, 9.09 per cent of the 16.36 per cent of them purchase the ready respondents purchase ready to eat food to cook food products twice in a week, products for fortnightly and 10.03 per cent 11.82 per cent of them purchase the ready of them purchase the ready to eat food to cook food products daily, 10.91 per cent products whenever required. 33.64 per cent of them purchase the ready to cook food of the respondents purchase the ready to products once in a month and 6.36 per cent cook food products once in a week, 20.91 of them purchase the ready to cook food per cent of the respondents purchase the products whenever required. ready to cook food products fortnightly, Table 6.5: Source of influence
Source: Primary data (n=110) Interpretation:- them are influenced to use ready to eat food Table 6.5 describes about the source products through shop keeper. of influence for using packaged instant food With regard to ready to cook food products. With regard to ready to eat food products, 26.36 per cent of the respondents products, 29.09 per cent of the respondents are self-influenced to use ready to cook are influenced to use ready to eat food food products, 22.9 per cent of them are products through their children, 24.55 per influenced by their parents,18.18 per cent cent of them are influenced to use ready to are influenced to use ready to cook food eat food products through their parents, products through their friends, 15.45 per 17.27 per cent are influenced to use ready cent of the respondents are influenced to eat food products through their spouse, through their children, 12.72 per cent of 13.64 per cent of the respondents are them are influenced to use ready to cook influenced to use ready to eat food products food products through shop keepers and 6.4 through their friends, 10.9 per cent of the per cent of the respondents are influenced respondents are self-influenced to use ready by their spouse to use ready to cook food to eat food products, and 4.55 per cent of products. Table 6.6: Source of information
Source: Primary data (n=110) Interpretation:- through television, 14.54 per cent of the Table 6.6 describes about the source respondents through radio and 7.27 per cent of information regarding ready to eat foot of the respondents through newspapers. and ready to cook food products. With Friends/relatives, magazines and regard to ready to eat food products, it was shopkeepers served as the source of found that 70.9 per cent of the respondents information about the ready to eat food were getting information about the products products for 6.4 per cent, 5.45 per cent and
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4.54 per cent of respondents, respectively. 4. A study on consumer purchase intention With regard to ready to cook food products, towards ready-to-eat food in it was found that 52.73 per cent of the Ahmedabad.pdf. Attitudes and respondents were getting information about behaviours towards healthy eating and the ready to cook food products through food safety: A scoping study, Social television, 15.46 per cent through friends Science Research Unit, Food Standards and relatives, and 13.64 per cent through Agency, August 2009. the newspaper. Percentage of the 5. Bala Swamy, M., Anil Kumar, T. and respondents getting information about the Srinivasa Rao, K. (2012). Buying ready to cook food products through radio behaviour of consumers towards instant and shopkeepers were the same that is 6.36 food products. Internat. J. Res. & per cent and magazines acted as source of Computational Technol., 2 (2) . information about ready to cook food 6. Baskar, K., Kamaraj, K. and products for 5.45 per cent of respondents. Arunmozhi, R. (2013). A study on CONCLUSION instant food products buying behaviour The investigation comes about of consumers in Cuddalore District. uncovered an inspirational viewpoint Indian Streams Res. J., 2(12). towards the moment or Ready to eat food 7. Baskar, M. Vijaya and Sundaram, N. items and Ready to cook nourishment items (2014). Indian consumer purchasing and the request has additionally expanded. behavior towards branded processed The members had broad consciousness of food. Asian Soc. Sci., 10 (11) : 113-122. the item, and appropriate data wellsprings 8. Blackwell, R.D., Miniard, P.W. and of the item. The recurrence of devouring Engel, J.F. (2001). Consumer Behavior prepared to eat or prepared to cook handled (9 ed.): Harcourt College Publishers. food has been ascending with relative 9. Chadha, G.K. (2007). Changing significance of comfort, efficient and a structure of demand for agricultural relative decrease in conventional commodities: preparing for the future. nourishment and dietary patterns. This Indian J. Agric. Mktg., 21 (L). pattern was more noticeable in youthful 10. Chandrasekhar (2012) Consumer purchasers. Theinvestigation uncovered that Buying Behavior and Brand Loyalty in dominant part of the respondents had Rural Markets: Instant food products. arranged choice in buying moment food 11. Jain, S., Sharma, K. and Khadke, M. items. TV assumed a noteworthy part in (2014). Consumer behavior towards giving data about moment food items. functional foods in India- A Study of REFERENCES Market Drivers and Challenges. IOSR J. 1. Agrawal, Sunil Kr. (2014). A study of Business & Manage, pp. 30- 45. consumer buying behaviour of FMCG 12. Kathuria, L.M., and Gill, P. (2013). Product in M.P., VSRD Internat. J. Purchase of branded commodity food Business & Management Res., 4 (1) : 1. products: empirical evidence from 2. Ali, J., Kapoor, S., and Moorthy, J. India. British Food J., 115 (9) 1255- (2010).Buying behaviour of consumers 1280. http://dx.doi.org/10.1108/ BFJ- for food products in an emerging 08-2011-0209. Karuppusamy, A. and economy. British food journal. Arjunan, C. (2012). A study on http://dx.doi.org/10.1108/00070701011 consumers buying behavior towards 018806. instant food products in Coimbatore. 3. Anand, Ritu (2011). A study of Namex Internat. J. Mgmt. Res., 2 (2) : determinants impacting consumer food 23-37. choice with reference to fast food 13. Kaur, I. and Singh, S. (2013). Shifting consumption in India. Soc. & Business preferences of consumers: A journey Rev., 6 (2) : 176-187. from conventional food to convenient
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food. Internat. J. Manage. Res. & 1450-216X Vol.71 No.1 (2012), pp. Trends, 4 (1). 127-143. 14. Kumar, K., Ambarish, Jordan, B.B. and 17. Nandagopal, R., and Chinnaiyan, P., Barker Tansu, A., 1987, Made in India, 2003, Brand preference of soft drinks in what it means to Indian consumers? Ind. rural Tamil Nadu. Ind.J. Marketing. 33 J. Marketing. 17 (9): 26-34 (1): 14-17. 15. Kolter, P. and Armstrong, G. (2001). 18. Shivkumar, J., 2004, Buying behavior Principles of marketing 9 th Ed. Upper of consumers towards the products Saddle River : Prentice Hall produced by SSI units. Ind. J. International. pp. 351-361. Marketing. 34 (3 ) :19-25. 16. Muthuvelayutham (2012) ―The Study 19. Singh, S., Srivastava, D. N. and Kapoor, of Consumer Brand Loyalty on instant C.M., 1995, Factors influencing food Products with Special Reference to consumer preferences for type of milk Coimbatore‖ Madurai. European supply in Hissar city. Ind. J. Animal Journal of Scientific Research ISSN production and management. 11 (4) : 226-228.
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M-BANKING: ISSUES AND CHALLENGES IN INDIAN BANKING SECTOR
DR. PAWAN KUMAR PODDAR DR. QUAZI MD. KAMRAN Head, University Department of Commerce Department of Commerce & Business & Business Administration &Director, Administration,Tilkha Manjhi Bhagalpur Directorate of Professional Courses University, Bhagalpur, Tilkha Manjhi Bhagalpur University, Bihar-812007, India Bhagalpur, Bihar-812007, India
Abstract Banking is the backbone of every industry and technology plays an important role in every industry. The role of technology is increasing very rapidly day by day, which is also promoting the banking industry. Mobile banking is a system that helps the customers to conduct a number of financial transactions with the help of their mobile devices. The increased prevalence of mobile phones provides exciting opportunities for the growth of mobile banking (m-banking). Like in any emerging technology, there exist barriers to the adoption of mobile banking services. As India is the second largest telecom market in the world and have high potential for expanding banking services using mobile. Mobile banking has emerged as more convenient and user friendly form of banking. In this paper, we will share what is mobile banking (m- banking), advantages of adopting this new technology both for the banking sector as well as the consumer and issues which needs to be addressed relating to this new form of banking. This paper looks at various factors which explain why consumers are not using mobile banking and other technologies in banking. It would also try to suggest why people are not currently using mobile banking and try to suggest how to overcome this problem and increase the acceptance levels. Keywords: Technology, Mobile banking User friendly, Customers, Revolution
INTRODUCTION purchasing stocks, access to account Traditional branch-based banking in information etc. India remains the most widely adopted Concept of Mobile Banking method of conducting banking transaction, Mobile banking started in 1998 in at same time commercial banks are Finland where a mobile phone was used for undergoing a rapid change majorly driven coco cola and for car parking fee. In Finland by the information & telecommunication payments and account management products (ITC) technology. ICICI bank pioneered in over mobile GSM phones as SMS service mobile banking services in India. was available more than a decade ago. Today many commercial banks have Mobile banking allows you to bank launched mobile banking reaching out to anytime anywhere through your mobile customers and providing them with not only phone. You can access your banking general information about its services but information and make transactions on your also the opportunity of performing Savings Account, Demat Accounts, Loan interactive retail banking transactions Accounts and Credit Cards at absolutely no anytime, anywhere. Banks have changed cost. With the new M-Shop facility on from paper-based banking solutions provider Mobile, you will now be able to recharge to the latest of the technologies like online- your mobile phone and book movie tickets. banking, mobile-banking, etc. At present In their simplest form, customers receive banks offers a wide range of services to their information on their account balances via customers such as doing fund transfers, SMS. The new WAP- and Java-enabled mobile phones using GPRS support fund
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 transfers between accounts, stock trading, REVIEW OF LITERATURE and confirmation of direct payments via the Barnes and Corbett; Scornavacca and phone‘s micro browser. Barnes (2004) concluded that mobile Rapid increase in the use of mobile banking is a result of recent innovations in phones has created new opportunities for telecommunications that launched new banks to use this mode of communication methods for banking services. for banking transactions. Mobile banking Rugimbana (1995) found that there is vast helps in financial inclusion as it‘s difficult to potential for mobile banking because of its set up branches in rural and remote areas. anywhere and anytime accessibility. Advantages of Mobile Banking Clark (2008) suggests that as a Channel the Mobile banking offers various mobile phone gives consumers more low- advantages to banks as well as customers cost self-service options to access funds, Benefits for the banks banking information and make payments. It 1. Reduces transaction cost: Mobile also delivers convenience, immediacy and banking enables banks to reduce cost of choice to consumers. courier, communication, paper works, Consumers are attracted to these etc. It reduces costs in setting up a technologies because of convenience, branch and the resources to process increasing ease of use, and in some instances transactions. cost savings (Anguelov et al., 2004). 2. Helps in improving services: as there is a Bamoriya and Singh (2011) found that the direct contact between customers and mobile banking face challenges like mobile banks, banks can improve their services handset compatibility, standardizing, on the basis of customers feedback. software downloading, privacy & security. 3. Increases customer loyalty: using M- From Indian perspective Sharma and Singh banking customers need not to go in (2009) found that Indian mobile banking banks braches for fund transfer or for users are specially concerned about security information, which creates a good issues like financial frauds, account misuse relationship between banks and and user friendliness. customers which helps in increasing Comninos et al. (2008) suggested that loyalty towards the banks. consumers will transact electronically if Benefits for the customers there is convenience and security in mobile 1. 24x7 hour banking: through mobile banking. banking, customers has online access to Mobile banking has emerged as new their bank accounts. Challenges related alternative way of banking which is more to mobile Banking. Customers has no convenient and user-friendly than traditional longer to wait in banks lines of wait for form of banking. It is covering the concept opening branches of anytime, anywhere banking into reality 2. Anytime anywhere banking: unlike (Kaur & Madan, 2013). traditional banking, consumers can Mobile banking is one of the alternative perform banking transactions at channels available to customer for quick and anyplace. efficient service or anytime and anywhere. It 3. Safe and secure transaction: mobile also studies the various incentives and gain banking reduces the risk of fraud. An by the customers with the usage of mobile SMS is send by bank whenever customer banking (Mishra & Sahoo, 2013). withdraws money from his/her bank OBJECTIVES OF THE STUDY account. It has secured pin code which is 1. To understand the concept of mobile known by the user, and also has a check banking. digit without it no one can deposit 2. To study the benefits of mobile banking money. 3. To study the issues related to mobile banking in India.
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4. To highlight the challenges associated form, this loophole can be easily used by the with mobile banking. unauthorized person. 5. To make suggestions on the basis of iii) SMS based Mobile banking research findings Today, most of the banks in the METHODOLOGY world offer SMS based mobile banking. Due The study was conducted to identify to plain text property, SMS is not suitable the issues and challenges of mobile banking for authentication. So lacking of privacy, and to make suggestions on the basis of integrity and security are the main issues findings of the study. The methodological involve in SMS banking. approach in this study is exploratory in a) SMS encryption nature. Secondary data was used for the As default data format for SMS is study. Secondary data provided theoretical plaintext. Currently end to end encryption is background to the research problem. not available. The only encryption involved Secondary sources include journal, books, at base transceiver station and SMS bank internet etc. For the present research, the server during transmission. The encryption paper is based on Exploratory Research. The algorithm used is A5 which is proven to be major emphasis of Exploratory Research is defenseless. on the discovery of ideas. b) SMS Spoofing Attack ANALYSIS The most dangerous attack in SMS Issues banking is spoofing attack where attacker This papers attempt to explore can send messages on network by various mobile banking issues from users‘ manipulating sender‘s number. Due to perspective and to alert various parties spoofing attack, most of the organizations involve in mobile banking services viz. are not adopting mobile banking through mobile operators, banks, content providers, SMS. aggregators etc. about relevant issues which iv) Virus Attacks in mobile banking could become challenges for them in Software like Trojan horses can providing effective mobile banking services. easily take up password on the web browser Security issues in mobile banking or any cached information on operating Mobile banking has two zones, one system. Malicious codes are written for is the handset held by the user and the other remote communication. Zitmo has been used is the bank zone. Literature shows that by attackers to defect SMS banking. Zeus is possibility of security threat exists for commonly used to steal mobile transaction transaction of payment using mobile device. authentication number or password. i) Mobile banking and Security issues v) Risk with Digital Signature with WAP (Wireless Application To reduce hardware cost, designer Protocol) may prefer digital signature. It is founded It was noted that it is difficult to that digital signature is computational provide end to end security through WAP. intensive. With unsigned values for example The reason is that the data is not encrypted date, amount, they differed from transaction at gateway during the switching of protocol to transaction. So a signed template can be process, which leads to security concern for used with several unsigned values like date, mobile banking in WAP. amount etc. ii) Authentication Risks and Issues Challenges If the device gets stolen then the Economic Challenges: India does possess hackers or unauthorized persons may find some infrastructure in the forms of postal the password from the log files or saved payments, reasonable transport and local draft files. Many customers save their governments and therefore, it is a big password in their mobile or they may keep challenge for bankers to make mobile the password under auto fill settings of the
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 banking inexpensive enough to be attractive The major challenge here is to develop for the end-customer over existing methods. applications which are safe in all respect so Regulatory Challenges: Although the RBI that majority of the consumer use it without is supportive of mobile banking in India, any kind of hesitation. Majority of the there are many regulations that are being put Indian population is still living in rural areas into place: and therefore immense potential lies before i) Restricted to Financial Institutions: The the banker which is untapped till date. So it guidelines state that only existing financial is of utmost importance to make software institutions and banks are allowed to offer that is user friendly and standardization will mobile banking. For a very inexpensive make it easier for customer using services of solution, it would have been more effective multiple banks. to allow non-profit organizations to build The researcher had attempted to explore their own MFI without being encumbered by selected mobile banking issues from large existing infrastructure. customers‘ perspective and to make ii) Rupee Transactions: All transactions recommendation to various parties like must be done only in India‘s national banks, mobile operators, content providers, currency, the rupee. While this may not be a regulators on relevant issues which could threat in the beginning, this may pose a become challenges for them in providing constraint for interoperability between effective mobile banking services in the Indian mobile payments and the world. country. Also, it excludes providers from the REFERENCES:- lucrative remittance market in India and 1. Al-Ashban, A.A. an d Burney, M.A. limits areas from which mobile operators Customer adoption of tele-banking can be profitable. technology: the case of Saudi Arabia, iii) Existing Account Holders: The International Journal of Bank Marketing, guidelines also state that only those having a 19 (5), pp. 191-200,2001. valid bank account would be allowed mobile 2. Amir Herzberg. Payments And Banking banking. This limits the full potential of With Mobile Personal Devices, mobile banking to extend micro-credit and Communications of the ACM,Vol. 46, bring banking to the large number of No. 5, May 2003. unbanked customers in India. 3. Banzal S. Mobile Banking & M– Demographic Challenges: India has 18 Commerce and Related issues, www. official languages which are spoken across public.webfoundation.org/….... /25, the country. The state governments also are Mobile_banking_M- dictated to correspond in their regional commerce_15.03.pdf, 2010. language for official purposes. For a pan- 4. Barnes,S.J., and Corbitt, B. Mobile Indian mobile banking solution, this will be Banking: Concept and Potential, cumbersome to overcome. International Journal of MobileCommunications, 1 (3), pp. 273- CONCLUSION 288, 2003. Due to smart phones, huge increment is seen 5. Black, N. J., Lockett, A., Ennew, C., in the banking sector which is offering Winklhofer, H. and McKechnie, S. customized based applications. As, a result Modeling consumer choiceof mobile phones have immense potential of distribution channels: An illustration conducting financial transactions thus from financial services, International leading the financial growth with lot of Journal of Bank Marketing, 20(4), convenience and much reduced cost. There pp.161- 173, 2002. is also need to generate awareness about the 6. C. Narendiran, S. Albert Rabara, and N. mobile banking so that more and more Rajendran. Public key infrastructure for people use it for their benefit.
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mobile bankingsecurity, Global Mobile Mobile Mobile E- Commerce, e- Congress 2009, pp. 1-6,2009. Business and Information 7. C. Narendiran, S. Rabara, and N. SystemSecurity (EBISS), pp.1- 4,2010. Rajendran, ―Performance evaluation on 10. Gopal, Pandey, Batra (2012). Mobile end-to-end security architecture for Banking in India: Practices,Challenges mobile banking system, ‖ Wireless Days, and Security Issues. International 2008. WD '08. 1st IFIP, pp. 1-5,2008. Journal of Advanced Trends in 8. Comninos, A., Esselaar, S., Ndiwalana, Computer Science and Engineering. A. and Stork, C. Towards evidence- Volume 1, No.2, May – June 2012. based ICT policy andregulation mobile 11. Mishra, Sahoo. (2013). Mobile banking banking the unbanked, adoption and benefits towards customers http://externo.casafrica.es/aeo/pdf/englis service, Special Issue of International h /overview_part_2_09_aeo_09.pdf , Journal on Advanced Computer Theory 2008. and Engineering, 2319 – 2526, Volume- 9. Dai Wei and Tang Yanling. Research on 2, Issue-1, 2013. Security Payment Technology Based on
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ANALYTICAL STUDY OF FRUITS & VEGETABLES MARKETING IN PUNE DISTRICT
NILESH U BANKAR DR.J.R.BHOR Research Scholar Research Guide, Ahmednagar, Maharashtra Ahmednagar, Maharashtra
Abstract Fruits & Vegetables play an important part in having healthy life style. Fruits & Vegetables in proper balance prevent many diseases. Marketing of fruits & vegetables is more important as fruits and vegetables are perishable, seasonal and available in bulk. It is tough job to store the fruits and vegetables easily. Hence its proper marketing needs to be done. In India fruits & a vegetable marketing is mostly done in weekly bazaars. Majority of Indian population is based on agriculture as occupation the market of fruits & vegetable is in large scale. APMC operated taluka wise play an important role in marketing of fruits & vegetables .There has been concern in the recent years regarding the efficiency of marketing of fruits and vegetables in India. It is believed that poor efficiency in the marketing channels and Poor marketing infrastructure is leading to high and fluctuating consumer prices. The present paper is an attempt to elaborate fruits & vegetables marketing in Pune district. Keywords: Marketing Efficiency, Marketing, Fruits, Vegetables, Consumer price etc.
Introduction: distribution channel the fruits and vegetables India ranks second in the world in the marketing efficiency can be increased. production of Vegetables and third in Objectives: production of fruits. Fruits and vegetable has 1. To study fruits & vegetables marketing gained more importance. Fruits & in Pune district. Vegetables farming is mostly labour 2. To identify problems faced by intensive in India and provide substantial stakeholders, fruits and vegetables employment not only in production but marketing problems and suggest suitable also transportation, processing and strategies. marketing. For developed economies 3. To study the factors influencing the marketing efficiency of fruits and vegetable marketing cost, market margin and retailing industries is becoming increasingly marketing efficiency. important. India's diverse climate ensures Hypotheses of the study: availability of all varieties of fresh fruits & 1. There is tremendous fluctuation in Fruits vegetables. There are certain problems faced and Vegetables market price. by the farmers, wholesalers, retailers and 2. Marketing efficiency and profitability customers in fruits & vegetable marketing. can be enhanced by proper marketing Like inappropriate estimation of market, channel of fruits & vegetables. fluctuation in demand & supply, price 3. Producers are unable to make uncertainty, mismatch between production appropriate marketing price estimation. cost & selling cost. There are also the 4. There is collusion among traders of fruits problems faced like availability of & Vegetables. infrastructure, finance and credit supply on Scope of the study: time, improper logistic channels. The big Geographical scope- Research work challenge is to have proper balance with is related with Pune district only. existing intermediaries. Fruits & vegetables Selected Fruits : 1. Pomegranate. 2. Guava marketing have a huge opportunity with Selected Vegetables : 1.Brinjal 2.Tomato respect to Pune district. By having proper
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Limitations of the study: 1. Study is related with selected Pune district only. 2. Study is related with selected fruits & vegetables and other are not covered. Research Methodology: a) Primary data – Primary data is gathered from small retailers, wholesalers and farmers. Structured questionnaire is prepared and it is filled up by 200 farmers, 30 wholesellers & 60 retailers. b) Secondary Data – Secondary data is gathered mainly from research articles, reference books on Fruits and vegetables vegetable retailing and retail management, research journals, publications, reports, websites, records from Agriculture Universities and APMC . c) Population Population for the study refers to the entire group of farmers, wholesellers. Retailers APMC related with production and marketing of fruits & vegetables Pune District. d) Selection of Sample – i) Selection of District: Pune district has been selected. Sr.No Name of the District Selected Area Covered Area Covered under under Fruits (Ha.) Vegetables (Ha.) 1 Pune 28551. 25672 (Source: Report of the Joint Inspection Team for their visit to Maharashtra during 27th May to 3rd June, 2015 to review National Horticulture Mission Progress & District Profiles) Justification for selection of District: Selected district have more area under fruits & vegetable cultivation ii) Selection of Taluka and APMC: Sr.No Selected District Selected Taluka Selected APMC
1 Pune Khed Khed
Junnar Junnar(Narayangaon)
Justification for selection of Talukas & APMC: Selected Talukas have more area under cultivation for selected fruits & vegetables.AS the selection of Taluka is done its APMC is selected. iii) Selection of Fruits and Vegetables Producer: Sr.No Selected Selected Fruit Vegetable District Taluka Growers Growers
1 Pune Khed 30 70
Junnar 30 70
Justification for selection of Fruit & vegetable Growers: Simple random & convenient sampling method is used for the selection of fruits & vegetables farmer in selected talukas. iv)Selection of wholesellers & Retailers: Sr. District Taluka Fruit Vegetable Fruit Vegetable No Wholeseller Wholeseller Retailer Retailer
1 Pune Khed 5 10 10 20
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Junnar 5 10 10 20
Justification for selection of wholesellers & retailers: Convenient sampling method is used for selection of wholesellers & retailers for fruits & Vegetables. f) Techniques of Analysis: Questionnaire is used to collect the data from respondents. Several questioning techniques is used to design questionnaire. The study has employed five point Likert scaled questions, multiple choice rating questions, dichotomous questions, close ended questions and single answer questions respectively. Excel and SPSS is used for data analysis.
Findings: exploitation by traders, 73 % said 1. 95% Farmers are male & 5% farmers are transport charges and 26% said non female. This shows that majority of cooperation from Government officials farmers are male.25% belongs to age are the major problems faced by farmers. category of 18-35, 38% to 36-45 and 37 8. 14% farmers sell their produce in weekly % above 46 years. This indicates that markets, 16 commission agents, 18% majority of farmers from age group wholesellers, 2% export agencies, 36 % above 36 yrs.60% Farmers are in nearest APMC and 14% to retailer. undergraduate followed by 32% graduate This indicates the farmers are not aware & 8 % post graduate indicating that the of proper marketing channel. literacy level in farmers is very poor. 9. 33% farmers say that they receive 2. 58% of irrigation is through flow, 15% payment after more than two days, 27% by sprinkler & 27 % by drip. This Say two days, 27% say after one day and indicates poor awareness about proper & 12 % say that they receive payment on efficient irrigation method same day. This indicates that the 3. 65% family members work as the labour payment system is not standardized and in filled & 35 % farmers utilize the paid regulated. labour. This misleads poor calculation of 10. 42% farmers says profit margin is below variable cost. 10%,42 % say between 11-20%,10% say 4. 82% farmers are not aware about between 21-30%,5% say between 31- changing marketing practices. This 40% and 1% say it‘s more than 40%.This indicates the inefficient use of proper indicates the profit share of farmers is marketing practices by farmers. very low and unpredictable. 5. 100% farmers agree that pricing method 11. 53% farmers agree that fruits are more of fruits and vegetable is wrong as price profitable, 25% say vegetables and 3 % is governed by buyer and not seller. This say other crops are more profitable. This leads to the wrong estimations of price & indicates the big reforms are needed to profit. increase the profitability in vegetables & 6. 94 % farmers agree that inability to fruits. maintain stock is the major problem. 12. 887% farmers say that there is no impact This indicates that poor infrastructural of government policies on farming of facilities are available with high cost. fruits & vegetables. This indicates that 7. 78 % said low investment, 82% said awareness among farmers regarding difficulties in getting returns from trades, govt, policies is poor and need to be 41% competition from other farmers, enhanced. 74% said increased electricity rate, 16 % 13. 100% farmers agree that they do not get said increased bank interest rates, 88% the estimated price. This indicates that said price estimation, 74% said credit estimation is poor and pricing method is facility, 36 % said natural calamities, 63 faulty. % said demand estimation, 82%
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14. 98% farmers say traders policies, 83% aware of changing marketing practices say faulty distribution channel,70% say thoroughly. Government policies, 40% say excess 20. 44% retailers agree that margin of profit production & 21% say natural calamities is more than 40%,30% say it is between are the reason for not getting estimated 31-40%, 19 % say it is 21-30% & 7% price. say it is between 11-20% 15. 76 % farmers are not satisfied with role 21. 66% retailers say that prices are not as of APMC in selling fruits & 84% per estimation, while 44% retailers say farmers are not satisfied with role of that prices are as per estimation. APMC in selling vegetables. This 22. 70% retailers said there is no role of indicates that the role of APMC is APMC in price control while 30% said inefficient in protecting farmer‘s interest. APC as the role in price control. 16. 94% farmers agree that there is collusion 23. 93% retailers agreed that distribution among traders. This indicates the serious channel as impact on profit & 7% say threat for efficient marketing system for that there is no impact of distribution farmers. channel on profit. 17. 86% farmers say government does not 24. 77% retailers agree that the pricing have control over traders. This indicates system of fruits & vegetables is not the legal amendments in rules for traders correct and 33% say it is correct. and APMC and their serious 25. 87% wholesellers are aware of changing implementation is needed trade practices of fruits & vegetables 18. 76 % retailers said marketing industry is marketing. going through structural change,61.1% 26. 93% wholesellers agree that customer said system change is there and 82% said behavior is changing in terms of taste, marketing industry changing in terms of 90% say in terms of loyalty and 77% say service,93% retailers agreed that now it is changing in terms of belief.85% customers are having more options,86% wholesellers agree that wholesale trade is said customers taste is changing, 76% going change in terms of services, 80% said customers beliefs are changing and in terms of systems & 70% in terms of 53% said there is change in customers structure. loyalty. It states that customer behavioral 27. 10% wholsellers strongly disagreed and pattern is changing. 90 % strongly agreed that discount given 19. 83 % retailers say that marketing of affect business. fruits and vegetable have change in and 28. 13% wholsellers strongly disagreed and as impact on business. terms of less 87 % strongly agreed that stock pace,87% say ambience, 72% say credit maintenance affect business. facility, ,65% say parking facility,73% 29. 87% wholsellers say that variety of fruits say variety of commodity and brand,81% & vegetables as impact on their business. say proximity93% say relationship with 30. 47% farmers agreed that their profit retailers,82 say sale in loose margin is above 40%, 20% said it is quantity,92% say place ,78% retailers between 21-40, 28% said it is between say billing system,88% say credit card 21-30% and 5% said it is between 11- system,62% say costlier commodity 20% price,64% say multiple counters,89% say 31. 82% wholsellers say prices are as per supporting staff,88 % say delivery their estimation while 18% denied. facility,67 % say discount facility & 89% 32. 72% wholesellers say that govt policy say advertisement does not have impact has an impact on business while 28% say on business. From this it can be there is no any impact of Govt. policy. concluded that retailers need to be made
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33. 68% wholsellers say that APC facilities Government needs to take special are not upto the mark, 25% say it is good initiative in this regards through state while 7% say it is very good. marketing board. 34. 75% APMC members says traders 2. Young qualified force should be policy, 67% say wrong estimation by attracted by launching new schemes fro farmrs,67%say government policy,58% educated and young farmers. say demand supply imbalance & 50% Professionalism will increase by this. say perishable nature of commodity is Pensions system can be implemented in the major reason for price fluctuation. agriculture sector. 35. 100% APMC members said that 3. The operational & maintenance cost can government should decide the pricing be cut down by group farming and policy, 83% said free storage facility for contract farming. Infrastructural facilities farmers and 75% said there should be for fruits & vegetables must be strict guidelines for traders from completely provided by Government in government. order to tackle the problem of storage & 36. 100% APMC members said most pershability of fruits & vegetables. common charges paid by farmers are for 4. Initiatives to train farmers in having labour, weighing, commission and 34% proper accounting will help them in said for warehouse charges are paid. tracking the production cost efficiently. 37. 100% APMC members say there is 5. Markets at micro level need to be impact of distribution channel on pricing established with cold storage and & Profit infrastructural facilities for drying, 38. 100% APMC members say that trader‘s processing, grading, storing, weighing, margin is more than 40%. & 75% APMC packaging, labeling & financing. members say that farmers margin is Farmers should be made aware about the below 20% and 25% APMC members benefits in trading through APMC. say it is between 20-40%. 6. Special horticultural and agricultural 39. 100% APMC members agree that price trainings need to be provided to farmer‘s dependency is on traders policy.83% say family to increase skills in order enhance on quality, 75% say on demand & the efficiency. State Agriculture supply. While 100% APMC member Marketing Board has to take initiative in agree that price does not depend on making famers aware about changing producer‘s policy. marketing practices. This will help in 40. 100% APMC member agree that there is efficient use of proper marketing collusion among traders. practices by farmers. 41. APMC members suggest that farmers 7. Forward & backward linkages, Future should encourage contract framing or trading and specially input – output group farming. They should take linkage needs of restructuring in the trainings on forecasting demand. They changing environment of agricultural should plan the production schedule marketing to increase share o farmer in rather than following everyone. They consumer rupee. APMC needs to take should try to be present in APMC during strict initiative against collusion of auction as majority farmers send the traders to avoid the exploitation of produce and come to collect receipts. producers. Suggestions: 8. Facilities of APMC need to be reviewed 1. Farmers should be made aware about and further modification has to be proper marketing channels. This will considered to increase satisfaction level increase marketing efficiency. Share of of its stake holders. Government should farmer in consumer rupee needs to be make efforts to provide physical increased by various initiatives. facilities in and around the markets
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including storage, transport, processing Conclusion: leading in hindering the intermediaries in Increase in literacy of consumer fruits & taking advantages from the situation. vegetables industry is in boom and through 9. Standard pricing policy for agriculture as drastic change. There is change in to be prepared to have efficient customers‘ behavioural pattern and distribution of consumer rupee among consumption pattern which has changed the various stake holders. The price scenario of retail industry. The share of determining factor is traders policy this producer in consumer rupees is hardly 8-15 as to be shifted to producer policy percent which on other side is above 85% of considering the volatile nature of the intermediaries. This states the need of agriculture environment. Branding of reforms in fruit & vegetables retail industry fruits and vegetables should be initiated. in order to avoid exploitation of producer. 10. The online services can add in the value Problems like availability of infrastructure of fruits & vegetables marketing in large finance and guidance is restricting them to extent. Selection of proper channel of select proper marketing channel. Labor distribution yields more profit. needs to be managed properly and 11. Fruits & vegetables market is going efficiently. Efficiency of marketing of fruits through change in terms of customer, & vegetables is hampering due to lack of structure, system & service. Farmers and awareness about marketing environment traders need to be made aware and among producers. In these lights of trained to sustain in this changing marketing reforms the problems of fruits and marketing environment. Framers need to vegetables marketing are studied in this be provided knowledge about marketing research and tried to overcome with some cost, marketing margin and marketing suggestions. Producers share as to be efficiency and its estimation. increased in the consumer rupees with Government has to take initiative in this proper marketing strategies. Government has with various institutions. to play a major role in increasing the 12. Agricultural universities & marketing marketing efficiency and solve the problems boards. Should take initiative in of producer and other intermediaries. This designing channel of distribution for study has definitely found need of modern fruits and vegetables. They can help and redefined research tools and farmers need to plan their produce methodology in field of Agricultural according to market and for these the marketing. Researcher is very much sure that extensive farmer training has to be taken these suggestions will improve the efficiency in hands with various Government & of Marketing of fruits & vegetables. private institutions. Government has to play a lead role in this 13. Fluctuating market prices can be with the help of State Agriculture marketing controlled with support price policies if Board and APMC with the private implemented properly and efficiently. institutions. Training for the appropriate price References: estimation is the biggest call of hour and 1. Kohls, R. U. (1967). Marketing of it has to initiate. Collusion has to be Agricultural Products. New York: developed between producers and traders Macmillan Publishing Company. through various training programs and 2. Kothari, C. (2013). Research APMC acting as mediator in it. Methodology: Methods and Techniques. 14. The APMC must setup infrastructure New Delhi: New Age International. with international standards in this era of 3. Kotler, K. K. (2011). Marketing liberalization, privatization and Management. New delhi: India pvt Ltd. globalization.
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4. Kotler, P., & Keller, K. (2016). Behaviourfor Fruits and Vegetables Marketing Management. Noida: Pearson among Civil Servants in Essien Udim India. Local Government Area Akwa Ibom 5. Nanaware, S. N. (2013). An analytical State, Nigeria. Food Science and Quality study of e marketing practices of agro Management, 55-60. products. Savitribai Phule Pune 8. Omidi, N. M. (2011). Agricultural University. Marketing Challenges and Barriers in 6. Nutrition, N. I. (2006). Diet and Iran . African Journal of Business nutritional status of population and Management, 13580-81. prevalence of hypertension among adults 9. Piali, H., & Simayan, P. (2011). Need for in rural areas. Hyderabad: National Paradigm Shift to Improve Supply Chain Institute of Nutrition. Management of Fruits & Vegetables in 7. Ohen, S. B., Umeze, G. E., & Inyang, E. India ,. Asian Journal of Agriculture and (2014). Consumer Purchasing Rural Development, 25-35.
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FORENSIC ACCOUNTING AND FRAUD INVESTIGATION
CA MOTILAL B. BHAVNANI CFO At Synergy Lifestyles Private Limited 201 Sona Apartment GOL Maidan Ulhasnagar, Maharashtra.
ABSTRACT Fraud is an activity that takes place in a social setting and has severe consequences for the economy, corporations, and individuals. It is an opportunistic infection that bursts forth when greed meets the possibility of deception. The fraud investigator is like the attending physician looking and listening for the signs and symptoms that reveal an outbreak. The Association of Certified Fraud Examiners(ACFE) defines occupational fraud as: “The use of one‟s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization‟s resources or assets.”. Since the subject of this article is Forensic Accounting and Fraud Investigation, we then outline the nature of workplace fraud through a look at the Forensic accounting. We complete the tour with a look at the motives of fraudsters and the consequences of their acts. Although forensic accounting involves performing a wide range of activities, in general, it can be divided into two broad areas. Investigative accounting and Judicial support. As part of the investigative accounting there may appear Financial Crime examination and Independent forensic audit while judicial support refers to consulting services, expertise and other services. Forensic Accounting helps in unearthing frauds perpetuated by an entity and acts as an instrument which reduces their occurrences. Keywords - Forensic Accounting, Scope of Forensic Accounting, Steps in Forensic Accounting, Frauds, Ingredients of Frauds, Types of frauds, Consequences of fraud, Fraud Triangle
INTRODUCTION: - economy. Fraud encompasses a wide-range When times are good, people steal, of illicit practices and illegal acts involving when times are bad, people steal more‖. In intentional deception or misrepresentation. the first decade of the twenty-first century, According to Association of Certified Fraud the news has been filled with reports on Examiners (ACFE), fraud is ―a deception or frauds and indicators that it is increasing in misrepresentation that an individual or its scope and costs to the major economies entity makes knowing that of the world. Almost everyone has read misrepresentation could result in some about corporate financial statement frauds unauthorized benefit to the individual or to such as Enron and WorldCom, Satyam the entity or some other party. Scam, 2g Spectrum, Common Wealth Fraud cheats the target organization games or frauds against the government of its legitimate income and results in a loss such as false claims following Katrina, or of goods, money and even goodwill and huge Ponzi schemes such as the Madoff reputation. Fraud often employs illegal and scam that set a record for losses associated immoral or unfair means. with a fraud. Many people have been The fraud involving persons from directly affected by identity theft. The the leadership level or known under the economic downturn that began in 2008 has name ―managerial fraud‖ and the one made it hard to rebound from such losses. involving only entity‘s employees is named To make matters worse, reports on ―fraud by employees‘ association. activities related to fraud bear bad news. Fraud is a legal and not an Fraud is a worldwide phenomenon that accounting concept. For this reason, the affects all continents and all sectors of the
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 accountants have traditionally chosen to encompasses both Litigation Support and treat it as a concept alien to them. Investigative Accounting. As Forensic Fraud evokes a visceral reaction in Accountants, they utilize accounting, us. It is an abuse of our expectation of fair auditing and investigative skills when treatment by fellow human beings. Beyond investigating. Forensic Accountants are that, it is a blow to our self-image as savvy trained to look beyond the numbers and managers capable of deterring or detecting deal with the business reality of the a fraudulent scheme. Whether we react situation. Now in 21st century, Forensic because of values or because of vanity, accounting has come into limelight due to nobody likes to be duped. Many elements rapid increase in financial frauds and white- of modern society are focused on collar crimes. Fraud was something the maintaining an environment of fair dealing. internal or external auditors were supposed Laws are passed; agencies are established to to guard against through their periodic enforce them; police are hired; ethics and audits. Now, the accountants know that morals are taught in schools and learned in auditors can only check for the compliance businesses; and criminals are punished by of a company's books to generally accepted the forfeiture of their ill-gotten gains and accounting principles, auditing standards, personal liberty—all with a view to and company policies. Thus, a new deterring, detecting, and punishing fraud. category of accounting was needed to detect The profession of auditing grew out of the fraud in companies that suspected society‘s need to ensure fair and correct fraudulent transactions. This area of dealings in commerce and government. One accounting is known as 'forensic of the central outcomes of fraud is financial accounting' Forensic Accounting is a loss. Therefore, in the minds of the simply analysis of evidences. Forensic investing public, the accounting and accounting is the specialty practice area of auditing profession is inextricably linked accounting that describes engagements, with fraud deterrence, fraud detection, and which result from real or anticipated fraud investigation. This is true to such an litigation. The word forensic accounting can extent that there are those whose perception be divided into two parts – of what can be realistically accomplished in 1. Forensic means relating to, or used in an audit frequently exceeds the services that courts of law or public debate or any accountant or auditor can deliver and, argument. in terms of cost, exceeds what any business 2. Accounting means language that might be willing to pay .In the past few provides information about the financial years ,public anger over occurrences of position of an organization. massive fraud in public corporations has According to American Institute of spawned new legislation, new auditing Certified Public Accountants (AICPA): standards, new oversight of the accounting ―Forensic accounting is the application of profession, and greater penalties for those accounting principles, theories and who conspire to commit or conceal disciplines to facts or hypothesis at issues in financial fraud. a legal dispute and encompasses every FORENSIC ACCOUNTING: - branch of accounting knowledge. The integration of accounting, SCOPE OF FORENSICACCOUNTING: auditing and investigative skills yields the A large part of forensic accounting specialty known as Forensic Accounting. work relates to fraud detection and fraud "Forensic accounting" provides an investigation. Forensic accountants are accounting analysis that is suitable to the asked to take up assignments related to court which will form the basis for disputes, financial crimes, corrupt practices, discussion, debate and ultimately dispute business leakages and siphoning of funds, resolution. Forensic Accounting whistleblower complaints of any kind and
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 many other situations where any and it threatened the efficiency, liquidity wrongdoing is suspected. and safety of both debt and capital markets. Forensic accountants can be Frauds have increased uncertainty and appointed by corporate management; third violability in financial markets, shaking parties effected in any situation, bankers, or investor confidence worldwide. It also even under the law or by government reduces the creditability of financial agencies. information that investors use in the A Forensic Accountant is expected investment decisions. Taking into account to be able to perform all the tasks that an the loss of investor confidence as well as accountant and an auditor is able to reputational damage and potential fines and perform. In addition, he should have in his criminal actions, it is clear why financial team, reasonable expertise in interviewing, statement should be every manager‘s worst interrogation, data mining and investigative fraud related nightmare. analysis, field investigation, computer WHO COMMITS FRAUD? forensic and handwriting and specimen Generally, there are 3 groups of signature analysis business people who commit financial STEPS IN FORENSIC ACCOUNTING: statement fraud. They range from senior The broad steps in Forensic Accounting management CEO, CFO, Mid and lower are as under level management and organizational 1. Establishing a clear mandate outlining criminals CEOs and CFOs commit specific objectives and deliverable, accounting frauds to conceal true business 2. Data and Evidence collection, performance to preserve personal status and 3. Data Analysis, control and to maintain personal income 4. Evaluation of all data and evidence and wealth collected, Mid and lower level employees 5. Reporting. falsify financial statements related to their INGREDIENTS OF FRAUD: - area of responsibility (subsidiary, division There are four elements to any fraud or other unit) to conceal poor performance 1) A false representation of a material and/or to earn performance based bonuses. nature (either misstatement or omission Organizational criminals falsify of material fact). financial statements to obtain loans or to 2) Scienter: Knowledge that the inflate a stock they plan to sell in a ―pump representation is a false or reckless an dums‖ scheme. disregard for truth. While many changes in financial 3) Reliance: The person receiving the audit processes have stemmed from representation has reasonably and financial fraud or manipulation history and justifiable relied on it. related research repeatedly demonstrates 4) Damages: such receiving party has that a financial audit simply cannot be sustained financial damages on account relied upon to detect fraud at any significant of the above. level. Organizations of all types and sizes CONSEQUENCES OF FRAUDS: - are subject to fraud. On a number of Fraudulent financial reporting can occasions over the past few decades, major have significant consequences for the public companies have experienced organization and its stakeholders as well as financial reporting fraud resulting in for public confidence in the capital markers turmoil in the capital market, a loss of Fraud is an issue that all organisations may shareholder value, and in some cases the face regardless of size, industry or country. bankruptcy of the company itself. If the organisation has valuable property Financial statement fraud was a (cash, goods, information or services), then contributing factor to the financial crisis fraud may be attempted. It is often high-
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 profile frauds in large multi-national sizes and in all sectors and locations, organisations that are reported on in the research shows that certain business models media and smaller organisations may feel will involve greater levels of fraud risk than they are unlikely to be a target of fraudsters. others. The control environment should be However, according to the ACFE report, adjusted to fit with the degree of risk small businesses (classified as those with exposure. less than 100 employees) suffer fraud more THE FRAUD CYCLE: - frequently than large organisations and are The fraud cycle essentially begins hit by higher average losses. When small with the plans of the fraudster leading up to companies are hit by large fraud losses, the committing of the fraud act. Once they are less likely to be able to absorb the committed, the fraudster converts the asset damage than a larger company and may to cash, if necessary, and conceals the even go out of business as a result. fraud. The existence of a fraud usually The results of PwC‘s survey showed comes to light through that companies reporting fraud were spread (1) an allegation, complaint, or a rumor of across many industries, with at least a fraud brought by a third party (a disgruntled quarter of the respondents in any one supplier or a fellow employee); industry suffering from fraudulent (2) an investigator‘s intuition or general incidents. Industries suffering the highest suspicion that something is awry; average losses were insurance and (3) an exception from an expectation of a industrial manufacturing. Losses in the person senior to the suspect (an financial services industry, a sector unacceptable condition, profits, sales, costs, frequently in the press and one with which assets, or liabilities are too low or too high); fraud is often associated, were below (4) the accidental discovery that something average. Even not-for-profit organisations is missing—cash, property, reports, files, are not immune to fraud, with government documents, or data; institutions and many charities falling (5) results from an audit; victim to unscrupulous fraudsters. As one (6) results of controls, especially antifraud director working in the international controls. development and aid sector has pointed out, Based on the statistics from the ‗In my sector, fraud is not a possibility, it is ACFE‘s RTTNs, an average of about 60 a reality and we are always dealing with a percent of all frauds reported were number of suspicious incidents on a discovered either by a tip or accident, permanent basis.‘ PwC‘s survey also indicating the need for more effective revealed that incidences of fraud were proactive detection methods such as highest in companies in North America, internal controls and internal audits. A Africa and Central and Eastern Europe fraud investigation is of necessity based on (CEE), where more than half of the legal factors, because any fraud may end up companies reported fraud. It was lowest in in a court of law. The immediate facts to the Western European region, although the determine are whether a fraud has occurred UK was much higher than the average for and whether there is: (1) a criminal law, (2) this region, with levels of fraud similar to an apparent breach of that law, (3) a those in CEE. The EIU poll commissioned perpetrator, and (4) a victim. by Kroll in 2007 found that respondents in The six basic steps in the fraud countries such as India and China have seen investigation are: a significant increase in the prevalence of 1. Acquire all available details and corporate fraud in the last three years and documents relating to the allegation. this trend is likely to increase in businesses 2. Assess the allegation against the operating in emerging markets. Although available documentation. fraud is prevalent across organisations of all
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3. Assess the corporate environment TYPES OF FRAUD: - relative to the person in question. Fraud can mean many things and 4. Ask whether a theory of fraud can be result from many varied relationships developed at this stage. Is there motive and between offenders and victims. Examples opportunity? of fraud include: 5. Determine whether the available a. crimes by individuals against evidence makes sense. Does it meet the test consumers, clients or other business of business reality? people, e.g. misrepresentation of the 6. Communicate with appropriate parties on quality of goods; pyramid trading the details and status of the fraud. schemes After performing these steps, two b. employee fraud against employers, e.g. possibilities exist. Either one has identified payroll fraud; falsifying expense claims; the fraudster and knows who he/she is, or thefts of cash, assets or intellectual one has not. If not, more investigation is property (IP); false accounting necessary. But if one does identify the c. crimes by businesses against investors, fraudster, the process becomes critical to consumers and employees, e.g. financial what is no longer an investigation, rather a statement fraud; selling counterfeit pursuit of legal action. Evidence gathered goods as genuine ones; not paying over may consist of the testimony of witnesses, tax or National Insurance contributions documents, items (means and instruments, paid by staff or fruits of the crime), and possibly the d. crimes against financial institutions, e.g. confession of the perpetrator. Experienced using lost and stolen credit cards; fraud investigators know what evidence is cheque frauds; fraudulent insurance needed to prove the crime and how to attain claims that evidence. Typically, interviewing the e. crimes by individuals or businesses alleged, or known, fraudster is done only against government, e.g. grant fraud; after competent and sufficient data have social security benefit claim frauds; tax been gathered, assessed, and reasoned. If evasion prosecution of a civil or criminal charge is f. crimes by professional criminals against sought, evidence must be presented in major organisations, e.g. major court—which is where the expert witness counterfeiting rings; skill of a forensic accountant or fraud g. mortgage frauds; ‗advance fee‘ frauds; auditor is valuable. The court, trier of fact, corporate identity fraud; money then resolves the charge of fraud ending the laundering fraud cycle. A successful prosecution needs h. e-crime by people using computers and someone who can explain, in lay person‘s technology to commit crimes, e.g. terms, the records, data, documents, phishing; spamming; copyright crimes; financial information, and files supporting hacking; social engineering frauds. the prosecutor‘s position. Every fraud has WHY DO PEOPLE COMMIT FRAUD? its own unique wrinkles. All thieves do not There is no single reason behind think alike. They tend to be opportunists. fraud and any explanation of it needs to Given a set of circumstances that allow take account of various factors. Looking them to steal, they take the easiest way, from the fraudster‘s perspective, it is usually weighing risks and rewards necessary to take account of: carefully. Culprits usually leave trails and a. motivation of potential offenders sometimes make mistakes. Auditors must b. conditions under which people can learn to look for these signs, or red flags, as rationalise their prospective crimes they will be referred to in this book. While away each fraud is different in some ways, they c. opportunities to commit crime(s) all have some similarities. d. perceived suitability of targets for fraud
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 e. technical ability of the fraudster they are afraid of being shamed or f. expected and actual risk of discovery rejected by people they care about if after the fraud has been carried out they are caught. However, some people g. expectations of consequences of may be able to rationalise fraudulent discovery (including non-penal actions as: consequences such as job loss and 4. necessary – especially when done for family stigma, proceeds of crime the business confiscation, and traditional criminal 5. harmless – because the victim is large sanctions) enough to absorb the impact h. Actual consequences of discovery. 6. justified – because ‗the victim deserved THE FRAUD TRIANGLE: - it‘ or ‗because I was mistreated.‘ A common model that brings OBJECTIVES: - together a number of these aspects is the The objective of this article is to Fraud Triangle. This model is built on the know about Fraud and Forensic Accounting premise that fraud is likely to result from a and Forensic Auditing Techniques which combination of three factors: motivation, control the fraud related activities and save opportunity and rationalisation. on the financial leakages. 1. Motivation - In simple terms, HYPOTHESIS: - motivation is typically based on either Knowledge and understanding of greed or need. Stoy Hayward‘s (BDO) the elements of Fraud and strong internal most recent Fraud Track survey found forensic accounting control the financial that greed continues to be the main loss incurred due to Frauds. Study of cause of fraud, resulting in 63% of cases Forensic Audit and Forensic accounting in 2007 where a cause was cited. Other helps corporate and other business houses causes cited included problems from in the Risk Management and thereby it debts and gambling. Many people are becomes helpful in the right operational faced with the opportunity to commit management of Business which are clean in fraud, and only a minority of the greedy their operations and does not allow seeds of and needy do so. Personality and fraud which causes non-productive use of temperament, including how frightened scares financial resources. people are about the consequences of RESEARCH METHODOLOGY: - taking risks, play a role. Some people 1) Data Collection and Measurement with good objective principles can fall Primary Data: The data available from into bad company and develop tastes for various sources, in some case based on the fast life, which tempts them to interviews with the people involved fraud. Others are tempted only when shall be assembled and analyzed. The faced with ruin anyway. data will be presented in such a form to 2. Opportunity - In terms of opportunity, derive conclusions and substantiate fraud is more likely in companies where findings of secondary data. there is a weak internal control system, Secondary Data shall be collected from poor security over company property, various journals, web sites and RBI and little fear of exposure and likelihood of other statutory bodies guidelines issued detection, or unclear policies with from time to time regard to acceptable behaviour. 2) Tabulation and presentation of Data Research has shown that some 3) Analysis employees are totally honest, some are 4) Drawing Conclusions totally dishonest, but that many are 5) Expected Results of the study swayed by opportunity. EXPECTED CONTRIBUTION: - 3. Rationalisation - Many people obey It must be recognized that the the law because they believe in it and/or complexities of the business world and the
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 ingenuity of high educated white-collar REFERENCES: - criminals will always manage to produce 1. Forensic Accounting and Fraud schemes that unfortunately go undetected Investigation for Non-Experts by until they reach significant proportions. The Howard Silverstone, Michael Sheetz, Forensic Accounting investigators will Published by John Wiley & Sons. Inc. investigate, prosecutors will convict, and Hoboken, New Jersey ,2007 the regulator will react with new and more 2. Fraud Risk Management: A Guide to requirements. However, fraud will persist. Good Practice by Helenne Doody, The study will help in analyzing various Published by CIMA, 2008 aspects of Forensic Accounting and Fraud 3. Price Waterhouse Coopers, ―Financial Investigation. The fraud will be contained Fraud-understanding Root Causes, ― and managed effectively through the tools investigation & Forensic Services of Forensic accounting and forensic Report, 2002,1 auditing 4. Price Waterhouse Coopers, Key elements of Anti-Fraud Programs and controls, A white Paper 2003, 26-27 5. Association of Certified Fraud Examiners, Fraud examiners manual, Austin Tex, Association of Certified Fraud Examiners, 2002
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EMERGING TRENDS IN BANKING INDUSTRY: CHALLENGES AND PERSPECTIVES
DR. J. P. BHOSALE Head : Research Centre in Commerce, Arts, Commerce & Science College, Narayangaon, Tal : Junnar, Dist : Pune, Pin : 410504, Maharashtra, India.
ABSTRACT Today, we are having a fairly well developed banking system with different classes of banks – public sector banks, foreign banks, private sector banks – both old and new generation, regional rural banks and cooperative banks with the Reserve Bank of India as the fountain Head of the system. In India the banking industry has experienced a series of significant transformations in the last few decades. Among the most important of them is the change in the type of organizations that dominate the landscape. Since the eighties, banks have increased the scope and scale of their activities and several banks have become very large institutions with a presence in multiple regions of the country.' The paper examines the new trends in sector banking and its challenges and Perspectives. It will be useful to the academicians, banking and insurance personnel, financial advisors, professionals, students and researchers. Common readers will also find it informative and inculcating. KEYWORDS: E-Banking, NPA, Networking, Global Banking, Information Technology.
INTRODUCTION: during the recent past, almost in every Today banking is known as nation in the world. Productivity innovative banking. The Financial sector, of enhancement, innovative products, speedy which Banking sector is the largest player, transactions seamless transfer of funds, real plays a dominant role in building the time information system, and efficient risk economy of an individual as well as a management are some of the advantage nation. Banks have control over a large part derived through the technology. Information of the supply of money in circulation. They technology has also improved the efficiency are the main stimulus for the economic and robustness of business processes across progress of a country. A strong banking and banking sector. India's banking sector has finance sector is, therefore, necessary for a made rapid strides in reforming itself to the country to emerge as a developed one. It is new competitive business environment. vital for growth, creation of jobs, generation Technological infrastructure has become an of wealth, eradication of poverty, indispensable part of the reforms process in encouraging entrepreneurial activity and the banking system, with the gradual increasing the gross domestic product. development of sophisticated instruments Information technology has given rise to and innovations in market practices. new innovations in the product designing The banking sector in India is and their delivery in the banking and finance progressing with the increased growth in industries. Customer services and customer customer base, due to the newly improved satisfaction are their prime work. The focus and innovative facilities offered by banks. is shifting from mass banking to class The economic growth of the country is an banking with the introduction of value added indicator for the growth of the banking and customized products. sector. The Indian economy is projected to The Banking sector has been grow at a rate of 5-6 percent the country‘s immensely benefited from the banking industry is expected to reflect this implementation of superior technology growth
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OBJECTIVES OF THE STUDY been amended to include; Truncated cheque The main objectives of the present and Echeque instruments. research study are as under: 2. Real Time Gross Settlement (RTGS) : 1. To understand the emerging technological Real Time Gross Settlement system, trends in Banking Sector in India. introduced in India since March 2004, is a 2. To trace the utility of technology in system through which electronics Banking. instructions can be given by banks to 3. To examine the challenges and transfer funds from their account to the perspectives before Indian Banking Sector. account of another bank. The RTGS system RESEARCH METHODOLOGY is maintained and operated account within This research is based on the analysis two hours. of the secondary data and the research 3. Electronic Funds Transfer (EFT) : proposes to throw light on the emerging Electronic funds transfer is a system of technological trends in banking sector. processing and communication of payment The present research study uses the through electronic methods. EFT assumes most recent available published secondary greater significance in the banking system as data. To achieve the above stated objectives, the RBI also encourages the commercial the secondary data was used. The secondary banks to adopt this technique. Inter and intra data that are mainly used are published in bank transfers of funds are now made annual reports of various banks and survey through this EFT mechanism. Transactions reports of leading business magazines. The of high value i.e., at least more than one lakh secondary data was also used from various is now made through this cost effective and reference books related to E-Banking, E- quick system of settlement. Normally, Commerce, M-Commerce, Information payments are made through cash, cheques, Technology, Finance, Commerce, drafts and credit cards. The latest in this Management etc. For the said research study process are the debit card system, charge, the secondary data is also collected from the digital cash, and electronic purse and so on. various National and International Research 4. Electronic Clearing Service (ECS) : Journals which are related to Commerce, Electronic Clearing Service is a retail Management, Banking and Finance. The payment system that can be used to make Secondary data is also collected from bulk payments/receipts of a similar nature various websites. especially where each individual payment is EMERGING TRENDS IN BANKING of a repetitive nature and of relatively SECTOR smaller amount. This facility is meant for The Indian banking industry is not companies and government departments to lagging behind, it has started providing make/receive large volumes of payments services electronically over the internet. rather than for funds transfers by These services rendered over electronic individuals. media include: 5. Automatic Teller Machine (ATM) : 1. Electronic Payment Services – E- Automatic Teller Machine is the most Cheques : E-Cheques is one of the most popular devise in India, which enables the impact service offered by banks. Now-a- customers to withdraw their money 24 hours days we are hearing about e-governance, a day 7 days a week. It is a devise that email, e-commerce, e-tail etc. In the same allows customer who has an ATM card to manner, a new technology is being perform routine banking transactions developed in US for introduction of e- without interacting with a human teller. In cheque, which will eventually replace the addition to cash withdrawal, ATMs can be conventional paper cheque. India, as used for payment of utility bills, funds harbinger to the introduction of e-cheque, transfer between accounts, deposit of the Negotiable Instruments Act has already
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 cheques and cash into accounts, balance transfer of fund is called POS. The client enquiry etc. enters his personal identification number 6. Electronic Data Interchange (EDI) : [PIN] and confirms the amount due. Electronic Data Interchange is the electronic Customer‘s account is automatically debited exchange of business documents like with the amount of purchases and it credits purchase order, invoices, shipping notices, the retailers account POS installed at petrol receiving advices etc. in a standard, stations and large retail houses are linked to computer processed, universally accepted banks network participant sometimes make format between trading partners. EDI can illegal money at the cost of investors. SEBI also be used to transmit financial should find ways to overcome this to give a information and payments in electronic good scope for D-Mat in India form. 12. D-Mat Accounts: D-Mat is nothing but 7. Shared Payment Network System it is transacting shares business through (SPNS) : SPNS installed by the IBA in the electronic media is called D-Mat. Investor city of Mumbai, enables electronic banking opens an account called D-Mat Accounts service like cash transactions, extended with DPS. They get shares in electronic hours of banking, utility payments, cheques, form. Then they send the actual shares to the point of sale facilities by the SPNS can go to investor. Investor pays for the opening, any ATM linked to S maintenance and collection of shares. This 8. Tele Banking: Tele Banking facilitates has reduced the paper work, bad deliveries; the customer to do entire non-cash related loss of shares and less transaction cost. banking on telephone. Under this devise However delays in demating, higher cost Automatic Voice Recorder is used for charged by the investors has not given a simpler queries and transactions. For good start for the growth and scope of D- complicated queries and transactions, Mat in India. Depository. manned phone terminals are used. CHALLENGES BEFORE BANKING 9. Phone Banking: Bank on phone provides SECTOR easy access for customers to have large The maid challenges before banking businesses through telephones. Data are sector are as follows : exchanged over the phone regarding any 1) Customer Satisfaction:-Today, queries, to issue instructions on balance customers are more value oriented in their transfer, statement of account, cheque book, services because they have alternative stop payments, new schemes, interest rates choices in it. Hence, each and every bank etc. at any convenient time and place. Tele has to take care about fulfillment of banking has gone a long way in providing customer satisfaction. maximum customer satisfaction within the 2) To Provide several personnel services:- limited infrastructure The present times demanded that banks are 10. Credit Cards: These plastic cards to provide several services for which they enable customers to spend whenever he/she have to expanse in service, social banking wants within the prescribed limits and pay with financial possibilities, selective up later. Debit card is a prepaid card with gradation, computerization and innovative stored value, whereas credit card is post- mechanization, better customer services, paid with fixed limits. It is seen that effective managerial culture, internal spending is higher through debit cards than supervision and control, adequate with credit cards currently CITY Bank and profitability, strong organization culture etc. time bank have started with Debit cards and Therefore banks must be able to provide now other banks are also following these to complete personal service to the customers launch their own cards. who come with expectations. 11. Point of sale [POS] Terminal: Payment 3) Competition:-The nationalize banks and card at a retail location for electronic commercial banks have the competition
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 from foreign and new private sector banks. activities since more than 60 per cent of Competition in banking sector brings India‘s population lives in rural areas. This various challenges before the banks such as sector holds importance due to growing inter product positioning, innovative ideas and linkages between informal and formal channels, new market trends, cross selling economic activities. Available data indicate etc. Banks are restricting their administrative that the cooperatives, commercial banks, folio by converting manpower into machine and other formal financial sector programs power i.e. banks are decreasing manual in rural areas have not displaced informal powers and getting maximum work done sources of credit altogether as 43 per cent of through machine power. Skilled and rural households continue to rely on specialized man power is to be utilized and informal finance in 2002, when the last All result oriented targeted staff will be India Debt and Investment Survey was appointed. undertaken. 4)Non-Performing Assets:-Non-performing 8) Other Challenges:- assets are another challenge to the banking a) Customer awareness and satisfaction sector. Vehicle loans and unsecured loans b) Development of skill of bank personnel increases N.P.A. which terms 50% of banks c) Changing needs of customers retail portfolio was also hit due to upward d) Coping with regulatory reforms movement in interest rates, restrictions on e) Keeping space with technology up collection practices and soaring real estate gradation prices. Therefore, every bank has to take f) Man power planning care about regular repayment of loans. g) Lack of common technology standards 5) Managing Technology:-Developing or for mobile banking acquiring the right technology, deploying it h) Sustaining healthy bottom lines and optimally and then leveraging it to the increasing shareholders value maximum extent is essential to achieve and i) Corporate governance maintain high service and efficiency PERSPECTIVES BEFORE BANKING standards while remaining cost effective and SECTOR delivering sustainable return to shareholders. The main opportunities that is Early adopters‘ of technology acquire perspectives before banking sector is as significant competitive advances Managing under : technology is therefore, a key challenge for 1) Internet Banking: - It is clear that online the Indian banking sector. finance will pick up and there will be 6) Government Ownership: At present, the increasing convergence in terms of product Government is the owner of about three- offerings banking services, share trading, fourths of the total assets in the banking insurance, loans, based on the data system. On the ownership issues, proponents warehousing and data mining technologies. of private sector banks advocate that Anytime anywhere banking will become Government should reduce its ownership common and will have to upscale, such up stake in the public sector banks as private scaling could include banks launching sector banks score over public sector banks separate internet banking services apart from in profitability and efficiency. However, traditional banking services. broadly over the years, the performance of 2) Offering various Channels: - Banks can public sector banks has converged with that offer so many channels to access their of new private sector banks and foreign banking and other services such as ATM, banks. Local branches, Telephone/mobile banking, 7) Gaps in the Flow of Credit: A high video banking etc. to increase the banking proportion of socially and economically business. underprivileged sections of society in India 3) Rural area customers: - Contributing to is concentrated in the informal economic 70% of the total population in India is a
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 largely untapped market for banking sector. provide ample business opportunities to In all urban areas banking services has harness. Human Resources Management is entered but only few big villages have the assuming to be of greater importance. As banks entered. So the banks must reach in banking in India will become more and remaining all villages because majority of more knowledge supported, human capital Indian still live in rural areas. will emerge as the finest assets of the 4) Retail Lending: - Recently banks have banking system. Ultimately banking is adopted customer segmentation which has people and not just figures. helped in customizing their product folios The banking sector in India is well. Thus retail lending has become a focus progressing with the increased growth in area particularly in respect of financing of customer base, due to the newly improved consumer durables, housing, automobiles and innovative facilities offered by banks. etc., Retail lending has also helped in risks The banking today is re-defined and re- dispersal and in enhancing the earnings of engineered with the use of Information banks with better recovery rates. Technology and it is sure that the future of 5) Indian Customers: - The biggest banking will offer more sophisticated opportunity for the Indian banking sector services to the customers with the today is the Indian customer‘s. The Indian continuous product and process innovations. customers now seek to fulfill his lifestyle Thus, there is a paradigm shift from the aspirations at a younger age with an optimal seller's market to buyer's market in the combination of equity and debt to finance industry and finally it affected at the bankers consumption and asset creation. He level to change their approach from represents across societies, towns and "conventional banking to convenience villages i.e. in rural areas. Consumer goods banking" and "mass banking to class companies are already tapping this potential banking". The shift has also increased the it is for the banks to make the most of the degree of accessibility of a common man. opportunity to deliver solutions to this REFERENCES market. 1. S.B. Verma ; E- Banking and 6) Good Customer Services: - Good Development of Banks, Deep & Deep customer services are the best brand Publications, New Delhi ,2008 ambassador for any bank for growing its 2. Kamlesh Bajaj & Dehjaji ; E- business. Every engagement with customer Commerce,Tata McGraw hill is an opportunity to develop a customer faith publications Co. Ltd., New Delhi,2005 in the bank. While increasing competition 3. Uppal, R.K. 2007. ‗Banking services and customer services has become the backbone IT‘ New century publications, New for judging the performance of banks. Delhi 7) Other Opportunities: - There are many 4. Niti Bhasin, 2007. ―Banking other opportunities in future in the field of development in India 1947 to2007‖, Indian banking sector e.g. to enter new Century publication, Delhi 110005. business and new markets, to develop new 5. www.indiatoday.com ways of working, to improve efficiency, to 6. www.wikiepedia.com deliver high level of customer services. 7. www.moneyindia.com CONCLUSION 8. www.icicibank.com The banks are expected to play a 9. www.rbi.org.in very useful role in the economic development and the emerging market will
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HIGHER EDUCATION: NEED OF QUALITY IMPROVEMENT
DR. S. D. TAKALKAR Head: Department of Commerce,, Arts, Commerce & Science College, Narayangaon, Tal: Junnar, Dist: Pune, Pin: 410504, Maharashtra, India.
Abstract The responsibility of institution of higher education in the context of the changing scenario is not only confined to imparting education but also to forecast the future needs of economy. Education is central to the human capital development and economic development of any country. Even for India, where only 12% of the addressable population goes to college and nearly 70% of the population is in rural areas, education is considered a very important channel for socioeconomic mobility. Unfortunately, despite huge demand and need of education, policy framework in India has stifled access quality and innovation in education. Skills and knowledge are the driving forces of economic growth and social development of every nation. Their relevance and importance has amplified with the increasing pace of globalization and technological changes all over the world. Countries with higher and better levels of skills adjust more effectively to the challenges and opportunities of globalization. Many traditional Universities in India still are with their bad old recruitment, looking State funding indifferent to self financing courses, outdated examination to self financing courses, outdated examination system, obsolete teaching methods low standards. Time has ripped and reaching 2005 years, that foreign Universities are entering into India soil for competitiveness. By all manses, very shortly, new twist and turns would be seen in higher education system. Education is an important index of human development. Among various levels of education, higher education has a influential impact on development. Keywords – Higher Education, Commerce Education, Higher Education Sector, Economic Development.
INTRODUCTION Even for India, where only 12% of the Education is an important index of addressable population goes to college and human development. Among various levels nearly 70% of the population is in rural of education, higher education has a areas, education is considered a very influential impact on development. Higher important channel for socioeconomic education empowers the individual with mobility. Unfortunately, despite huge necessary skills and competence for demand and need of education, policy achieving important personal and social framework in India has stifled access quality goals. Higher education is indeed a vital tool and innovation in education. for intellectual and cultural developments Skills and knowledge are the driving and a mean for achieving wider social forces of economic growth and social aspirations. Revolutions in information development of every nation. Their technology have brought new challenges of relevance and importance has amplified with higher education. the increasing pace of globalization and The responsibility of institution of technological changes all over the world. higher education in the context of the Countries with higher and better levels of changing scenario is not only confined to skills adjust more effectively to the imparting education but also to forecast the challenges and opportunities of future needs of economy. Education is globalization. central to the human capital development As India progressively moves and economic development of any country. towards becoming a ―knowledge-based‖
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 economy, it becomes increasingly important quality of the intellectual capital necessary that it focuses on advancement of skills and to generate new knowledge. In the labor these skills have to be relevant to the market, we find a robust link between higher emerging economic environment. Earlier education and high-tech industry, but despite skill development largely meant a strong private sector supply response to development of shop floor or manual skills. the growth of the high-tech industry, the Even in this area there are major quality leaves much to be desired. Poor deficiencies in our workforce which need to university governance may be limiting both be rectified. labor market and non-labor market linkages. CONCEPTUAL BACKGROUND Industry efforts to improve the quality of It is useful at this stage to briefly lay graduates are promising but over reliance on out the structure of the higher education industry risks compromising workforce system in India. There are several types of flexibility. Addressing the governance higher education institutions in India, viz. failures in higher education is necessary to universities, deemed to be universities, strengthen the links between higher colleges, institutions of national importance, education and high tech industry. post-graduate institutions for estimates. OBJECTIVES OF THE STUDY Universities can be set up by an act of the The present study was carried out Parliament or by the State Legislature. Only with following objectives in view. universities and deemed to be universities 1. To study the role of Higher Education in and the institutions of national importance the new age of globalization. are generally authorized to grant degrees. 2. To study the opportunities for Higher Other post-graduate institutions and Education in the need for quality polytechnics that are recognized by the All improvement. India Council of Technical Education 3. To suggest the strategic measures for (AICTE) can grant post graduate diplomas improvement of quality in Higher and diplomas. Detailed information on the Education. structure, regulatory institutions, courses and RESEARCH METHODOLOGY processes of admissions in the Indian For the present research study the educational system is provided. In what data pertaining to the above objectives was follows, we highlight a few key features of collected and reviewed the literature on the the higher education system. topic concerned. The literature was thus In the new knowledge economy the collected by visiting various libraries. Some skill sets can range from professional, Government offices were also visited for conceptual, managerial, operational getting office record and statistical data. The behavioural to interpersonal and inter- secondary data is also collected from various domain skills. In the 21st century as science websites. progresses towards a better understanding of With the above objectives keep in the miniscule, that is, genes, particles, bits mind the instructed Interview Method and and bytes and neurons, knowledge domains Desk Research Method was basically and skill domains also multiply and become adopted. The Secondary Data is collected more and more complex. We provide a brief from various reference books related to but comprehensive overview of linkages Higher Education, Commerce Education, between higher education and the high tech Higher Education Sector, Commerce & sector and study the major linkages in India. Management, and Marketing & Finance etc. We find that the links outside of the labor For said research study secondary data is market are weak. This is attributed to a also collected from the National and regulatory structure that separates research International Research Journals which are from the university and discourages good related to Commerce, Management, faculty from joining, which erodes the Marketing and Higher Education.
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HYPOTHESIS OF THE STUDY service sector. The objective of GATS is to The Hypothesis of present research liberalize trade in services as quickly as study is as under : possible. H1 Higher education empowers the Major changes in conditions individual with necessary skills and affecting the context of higher education competence for achieving important give GATS potentially critical role in higher personal and social goals. education around the world. These ares- H2 Recently Business, commerce education Globalization and research are interrelated terms which Improvement in Information technology includes Finance, Marketing. and communication Accounting, Human Resource Increased completion in higher Management, Entrepreneurship education. Development, commercial & business OPPORTUNITIES FOR HIGHER law etc. EDUCATION H3 Commerce is the strongest and most 1. Improvement in the rate of enrolment in influential social institution in all higher education: In India the enrolment societies these days. in higher education is just 6% of the GATS AND HIGHER EDUCATION relevant age group as against 50% GATS provides an international as reached by developed countries. The well as multilaterally accepted legal frame economy will experience an increased work for the promotion of liberalization of rate of enrolment due to increase in the trade in services. Trade in services has been number of seats supplied by new defined under the GATS in term of four entrants in education. modes of delivery viz. 2. Improved resource allocation but it Cross border supply. could manage to allocate only 3.5% of Consumption abroad. GNP due to resources crunch. Entry of Commercial presence private sector will enhance the future Movement of natural persons well being of H.E. which is crucial in the The aim GATS is to enable free context of Governmental financial trade in services, open markets and facilitate austerity. economic growth. As regards Higher 3. Qualitative education programmes : Education, it aims at removing restrictions many educational institutions are on market access and barriers to excessively dependent upon Govt. grants competition. and hence they are forced to function in The five sector in education covered a rigid structure taking non cognizance by GATS are primary education secondary of changing times and demands. With education, higher education, adult education GATS institutions may venture out of and other education Government can make these controls and provide new commitment for one area, several all or none qualitative and competitive education of them. programs fine-tuned to the changing The scope of GATS was kept limited times. to trade but now has entered the educational 4. Scope for development of faculty field. Trade in educational services takes performance : Many educational place mainly through students (the consumer institutions are non performance or education). withdrawal of subsidy due to paucity of GATS and globalization has also funds such institutions may disappear resulted in the beginning of the distance and give rise to new education systems revolution in higher education. GATS are which will emphasize on self evaluation, designed to increase trade liberalization introspection and improved faculty internationally and include education as a performance.
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5. Cost-effective education programs : One reasonable remuneration should be of the modes of supply of education followed. under GATS is commercial presence i.e. 5. Training the teachers and by conduction entry of foreign institutions in the orientation courses with a view to adapt domestic market. This will make to new changes as the market demands. transnational education more cost 6. There should be continuous assessment effective for students who would and counselling. Special attention should otherwise have gone abroad Expenses on be paid on counselling to guide the face education abroad are saved by making it the challenges in their life. available locally also the cumbersome 7. Teachers should frame the curriculum visa and immigration process can be with new knowledge with the help of avoided. interdisciplinary interactions. It should 6. Qualitative teaching-learning material : be based on societal needs and market The fourth mode of supply under GATS demands. (Distance learning, Open and Virtual 8. Due emphasis to the learning process Universities will enhance the use of than teaching process through students modern communication technology and participation is needed. provide global open access to anyone, 9. Creation capacity for research and anywhere and anytime. enquiry in colleges should have the STRATEGIC DIMENSIONS FOR highest priority. Research oriented QUALITY IMPROVEMENT curriculum should be improved. Project Economic globalization and works would be feasible method of liberalization can be achieved if Indian initiating the students thinking and educational institutions give due attention on introducing them to reality. enhancement of skills and up gradation of 10. Application oriented research must be knowledge in order to match the human encouraged Institutions should resources to the nee of the new international encourage the teachers to undertake scenario where employment opportunities of research projects and consultancy quality improvement which needs the services. attention of stakeholders of higher education 11. Making consultation with industries for for the success. services must be followed. Visits to 1. infrastructure facilities should be centers of excellence with better improved with updated international infrastructure and professional talks.\ standard having internet, automated 12. Creating capacity for entrepreneurial and telephone, payment of fees by credit innovative skill must be one of the cards, sufficient class rooms and sports objectives of education. Many facilities etc. entrepreneurship courses should be 2. The economy of a country depends upon started in the educational institutions. the utility of the educated man power in 13. Working library and active network the global context. The kingpins of an facilities should be improved in the institution are its teachers. They would institutions. be expected to be more alert and 14. Developing a harmonious and integrated sensitive to the needs and aspiration of personality would just not be possible if the students and the society. system does not inculcate values of 3. Better transparency and accountability culture, heritage and traditions. Indian may cause self-appraisal and heritage, culture and values need to be improvement in faculty performance. thoroughly studied, analyzed and 4. Appointment of super specialized incorporated comprehensively in the teachers in educational institutions with educational system right from the initial stage to higher dimensions of education.
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15. Yogic meditation has stood the test of REFERENCES science and medical experiments. It will 1. H. Ashok Chandra Prasad and S. George provide an insight for character (ed) EXIM Dynamics Services and development and spiritual direction. WTO-An Indian Perspective, Common CONCLUSION Wealth Publishers, New Delhi, 1996. Liberation has opened the gates of 2. Chauhan, C.P.S, Hr. Education in India : education market for meeting Challenges of Global Trends, University competitiveness, challenges and change. In News, 40(17) April 209-May 05 2002. the wind of globalization, the student is 3. Prof Sunil Kumar Gupta. a lecture searching for quality education to enter into delivered by the Professor al I he Silver global job market, whereas Institutions, Jubilee Celebration held at Senate Hall, teacher, administrative is not yet geared up ML1 Canchipur on May 10. 2010. to plug off the gap. Many traditional 4. Elizabeth Goldsmith and Sue L.T. Universities in India still are with their bad McGregor(2QQO); E-commerce: old recruitment, looking State funding consumer protection issues and indifferent to self financing courses, implications for research and education; outdated examination to self financing J Consumer Studies & Home courses, outdated examination system, Economics; Vol.24, No.2, June 2000, obsolete teaching methods low standards. pp. 124-127. Time has ripped and reaching 2005 years, 5. R.C.T.Cheung, New Challenges in that foreign Universities are entering into Commerce Education, Department of India soil for competitiveness. By all Computing, Hong Kong Polytechnic manses, very shortly, new twist and turns University. would be seen in higher education system. 6. Dr. Kishor Moharir, Higher Education In Education is an important index of human Commerce-Challenges And development. Among various levels of Opportunities, Sardar Patel College, education, higher education has a influential Chandrapur, Volume No.1, Issue No.9 impact on development. Higher education Issn 2277-1166. empowers the individual with necessary 7. Munesh Kumar, Hr. Education in India skills and competence for achieving and Emerging Trends, University News, important personal and social goals. Higher 42(15) April, 12-18, 2004. education is indeed a vital tool for 8. A. Ranga Reddy, Higher Needs Speedy intellectual and cultural developments and a Reforms, University News, 42(17) mean for achieving wider social aspirations. April-26 May-02, 2004. Revolution in information technology has 9. Bharat E. Sant, Private Participation in brought new challenges of higher education. Indian Higher Education Towards Excellence in Teaching & Learning, University News 42(07) Feb. 16-22, 2004. 10. Chalam K.S. (2003) Introduction to Educational Planning & Management, Amol Publishers, New Delhi. 11. www.lsn.curtin.edu.au 12. www.epw.org.in 13. www.ingentaconnect.com
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ENTREPRENEURSHIP DEVELOPMENT: A CRITICAL ANALYSIS
PROF. SANTOSH RAM PAGARE Head, Dept. of Commerce, K. J. Somaiya College, Kopargaon, Maharashtra.
Abstract The problem of unemployment has become a major concern to the government. The pool of unemployed youths is continousily increasing day in day out. The pool consists youths of different levels of education: form four leavers, diploma holders and even university graduates. The empowerment of the youths with the self sustaining skills can be of great importance to the government in its efforts to contain youth unemployment. Besides, when people are working it helps to reduce the evils of idleness such crimes and drug abuse. This stems from the fact that majority of the people especially the youths are in the rural areas. The training of the entrepreneurial skills and competencies to the youths can tame the rampant movement of the youths to the urban centers to seek for employment. This is a form of human resource development which come seems to be neglected or not to have received full attention from the different stakeholders. Therefore, efforts to enhance this important source of human resource development should be supported so as to realize the full benefits. This study was motivated by the need to know whether entrepreneurial training on the youths has been done and determine factors which influence entrepreneurial flair among the micro businesses. The study used descriptive research design and the population of interest was the district officers in the ministry of youth affairs. The survey was done using questionnaires distributed using drop and pick method. The findings of this research reflected how advancement in entrepreneurship can be used to curb the problem of unemployment. Moreover, Technological change, scanty market information, Lack of managerial training and experience, inadequate education and skills, Lack of credit, Poor national policy and regulatory environment were found to be major problems facing youth entrepreneurship. The training of entrepreneurial skills to the youths has been done by various districts. The findings indicate that training the youths on entrepreneurial skills is paramount and an important step reducing unemployment and enhancing the lives of the youths as they become self reliant. This has the overall effect of improving the economic welfare of the people at large. Keywords: Entrepreneurship; human resource; development
Introduction Entrepreneurs need to have a mix of skills Entrepreneurship and development at hand: knowledge of marketing, go together. Learning to think like an leadership, basic finance, operations, talent entrepreneur, whether its ones own management, business management, business or work for an organization, is a technology and other skills. They need to critical skill successful business. When have these skills since initially their one think like an entrepreneur/owner, then companies usually consist of 1 or 2 everyone benefits. Employee or employees and they do not have the luxury entrepreneur benefits from taking charge of having specialists. Learning enough of of business career development. Thinking these skills will give them an advantage. like an entrepreneur forces one to look for However, entrepreneurs do not need to be niches and opportunities previously experts in all of these areas. They just need overlooked. By far the greatest benefit is to have a basic knowledge and be able to that it forces one to be self-driven and that see an opportunity from all angles so that can only be good for business career. they can have an overall picture. That is
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 why entrepreneurship and development go move supported by international bodies, together. An entrepreneur‘s mindset is a national associations and other great advantage in business. An employer stakeholders of the small enterprises may also benefits from having an employee yield promising results of reduced levels who is fully invested in the business. of unemployment and thus alleviating Youth unemployment also has a social poverty considerably. The recent move by cost in terms of indirect health costs, illicit the government to introduce the activities which lead to increased entrepreneurship development fund is a insecurity especially in urban areas. This milestone in luring the youths to engage in has led to the introduction of self employment. This however calls for entrepreneurship education and training to support from each and every stakeholder. develop entrepreneurial skills among Since, the move is a long term strategy, graduates from vocational and technical new measures should be put in place so as training institutions, and even among to enhance the success of the initiative. In university graduates. addition, the government should be on the Development of entrepreneurship forefront in developing ways of nurturing education and training the entrepreneurial culture. Different The government should also ensure approaches may be pursued to achieve this that important sectors of the economy such very instrumental tool of economic as agricultural and industrial sectors are development. Usually, majority of the well managed to support the self employed people enter into business or other forms in the informal sector to promote of self employment after their anticipated entrepreneurial spirit. The increased trend formal employment chances are doomed. of using vocational and technical training Research has shown that most of the institutions for entrepreneurial skills successful entrepreneurs got some training development is due to strong government before joining or undergo training as they belief that entrepreneurship can indeed be progress with their business. This is taught. This calls for a systematic build up because every business has its own tenets of knowledge to make entrepreneurship a of working different from that of the other rich and valid curriculum. business its important that one becomes Statement of the problem acquainted with them for efficiency in Most of the developing countries operation. Therefore, those who receive no are facing the problem of unemployment. training mostly lack these facets. Further, This affects mostly the youths especially the business environment is very dynamic university graduates who lack employment and requires constant changes of the after graduating ,they remain approaches used in doing businesses. This unemployment and fail to contribute explains the ideology of having success positively towards economic development rate of new business being only 15% in the of the economy .This represents a pool of first 5 years. unutilized human resources. The Management of Entrepreneurship despondence of the matter makes the Development youths to be easily lured into unorthodox Perhaps the government should ways of earning their livelihood. On the consider spreading out the benefits of other hand the government has tried to entrepreneurship development fund tame this economic evil. Government has throughout the country. This can be done for example showed their committal into through engaging personnel to run the matter by promising to create 500, 000 business development centers where new jobs for each year. The statistical facts training can be disseminated and business however, have demonstrated how far the development services provided. This battle on the issue is from being won. This means that part of the funds should
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 inevitably be used in promoting businesses are ordinary lot whose entrepreneurship and business training if educational background is lacking. the funding is going to achieve the desired Hence they may not be well equipped objectives. to carry out managerial routines for A National board of trustees should be their enterprises (King and McGrath, charged with management of the fund 2002). whereas applications should be handled at 2. Inadequate Education and Skills - the business development centers. The Education and skills are needed to run experiences of the Ministry of Agriculture even small businesses. Research shows with its agricultural extension officers and that majority of the lot carrying out probably that of Agricultural Development their businesses are not quite well Corporation should form a good guide on equipped in terms of education and the way forward, regarding adoption of the skills. Study suggests that those with business development centers. The centers more education and training are more will not only enhance continued likely to be successful in their monitoring and provision of assistance to businesses (King and McGrath, 2002). new entrepreneurs but also facilitate As such, for small businesses to do disbursements of the funds across the well, people need to be well informed board. This approach has worked in terms of skills and management. successfully in Eastern European Small businesses in ICT appear to be Countries, which were doing well with the sprouting of many formally under communism but chose to commercial colleges offering various develop their countries through small and computer applications. Further, studies medium enterprises (SMEs) after the show that most of those running small collapse of communism. and medium businesses in this sector Challenges facing youth have at least attained college level entrepreneurship education (Wanjohi and Mugure, 1. Lack of Managerial Training and 2008). Experience - Many youth 3. Lack of Credit - In developing entrepreneurs lack managerial training countries, young entrepreneurs have and experience. They develop their great difficulty in obtaining the own approach to management, through necessary financial resources to a process of trial and error. As a result, effectively scale up and grow their their management style is likely to be businesses (Roberto, 2008). Lack of more intuitive than analytical, more access to credit is almost universally concerned with day-to-day operations indicated as a key problem for young than long-term issues, and more entrepreneurs. This affects technology opportunistic than strategic in its choice by limiting the number of concept (Hill, 1987). Although this alternatives that can be considered. attitude is the key strength at the start- Many young entrepreneurs may use an up stage of the enterprise because it inappropriate technology because it is provides the creativity needed, it may the only one they can afford. In some present problems when complex cases, even where credit is available, decisions have to be made. A the entrepreneur may lack freedom of consequence of poor managerial ability choice because the lending conditions is that young entrepreneurs are ill may force the purchase of heavy, prepared to face changes in the immovable equipment that can serve as business environment and to plan collateral for the loan. Credit appropriate changes in technology. constraints operate in variety of ways Majority of the youths who run small where undeveloped capital market
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forces entrepreneurs to rely on self- growing poverty. The legal and financing or borrowing from friends or economic framework in which relatives. Lack of access to long-term enterprises operate is crucial to their credit for young entrepreneurs forces performance. In the literature on them to rely on high cost short term enterprise development, it has been finance. There are various other argued very forcefully that the legal financial challenges that face young framework of many countries serves as entrepreneurs. They include the high a barrier against enterprise. cost of credit, high bank charges and 5. Technological Change - Change of fees. technology has posed a great challenge 4. National Policy and Regulatory to small businesses. Since the mid- Environment - The national policy 1990s there has been a growing and regulatory environment has an concern about the impact of important impact on technology technological change on the work of decisions at the enterprise level. The micro and small enterprises which are structural adjustment programs (SAPs) majorly owned by young implemented in many countries are entrepreneurs. Even with change in aimed at removing heavy policy technology, many small business distortions, which have been viewed as entrepreneurs appear to be unfamiliar detrimental to the growth of the private with new technologies. Those who sector. SAPs tend to severely affect seem to be well positioned, they are vulnerable groups in the short run and most often unaware of this technology have been associated with the and if they know, it is not either locally worsening living conditions in many available or not affordable or not countries (USAID, 1991). The findings situated to local conditions. Foreign in a study by Wanjohi and Mugure firms still remain in the forefront in (2008) indicate that business accessing the new technologies. environment is among the key factor 6. Human resource development - that affects the growth of small Human resource development has been enterprises. Unpredictable government defined by as a continuing, dynamic policies coupled with ‗grand and empowering process. The growth corruption,‘ high taxation rates, all of a human being pertains a myriad of continue to pose great threat, not only factors. These factors affect the to the sustainability of small businesses cognitive abilities, spiritual and but also to the economy that was physical aspects of people. Form the gaining momentum after decades of above broad definition, it can be seen wastage. In theory, structural that the strengths and weaknesses of adjustment and trade liberalizations people and their abilities can be were supposed to bring benefits to identified. Today, a well defined micro and small enterprises. However, system of organization in the world of there is evidence across the world of industry and business has to be both negative and positive impacts of established. Law of performance which these policies on small and medium forms the key of production objects is businesses development. It can perhaps one of the major items the top be said as a generalization that those management of firms has realized. The with better skills and knowledge, and product of the available abilities and located in strong market niches, have motivation yields high performance benefited. On the other hand, those and labor force is the life sustaining faced with low barriers to entry have organ of production. The desire for seen a saturation of markets and long life of the firms has made the top
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managers to devise some holistic 4. Hill, T. (1987). Small business programs which seek to develop production/operations management. emotions, spirits, body and mind. Macmillan Education Ltd. These programs therefore will go 5. King, K. and McGrath, S. (2002). beyond the technical assistant to more Globalization, Enterprise and professional and comprehensive Knowledge. Symposium, Oxford. development of the labor force For a 6. Kinyanjui, M. (2000). Tapping business to operate, some resources are opportunities in enterprise clusters in indispensible like the finances, but the Kenya: the case of enterprises in development of labor force is Ziwani and Kigandaini. Working Paper important too. This is because the 525, Institute for Development Studies, workforce is what translates raw University of Nairobi, Nairobi Kenya. materials into finished goods 7. Lange, T., Ottens, M., Taylor, A. (production). HR deals with the (2000), "SMEs and barriers to skills personnel and is very important development: a Scottish perspective", component of production for many Journal of European Industrial industries as it is very flexible. The Training, Vol. 24 No.1, pp.5-11. workers could be inventors. Hence, they can manipulate the environment in which they operate. They can invent new thingsor ideas on what to do and how to do it unlike the other resources like the computers and the machines which rely on a predetermined or set systems. The personnel can preplan or preset some tasks and also bring in more innovations to the existing systems of operation. They are more idiosyncratic and highly sensitive. They, have certain rights, notions and dignity which should be respected. They have aspiration to live in better and satisfied lives. Their management is dynamical and changing. They can do some things which are unpredictable. References 1. Burgess, S. (2001) (Eds),Managing Information Technology in Small Businesses: Challenges and Solutions, Idea Group Publisher, Hershey, PA, . 2. Corbitt, B.J. (2000), "Developing intraoganizational electronic commerce strategy: an ethnographic study", Journal of Information Technology, Vol. 15 pp.119-30. 3. Cragg, P.B., King, M. (1993), "Small- firm computing: motivators and inhibitors", MIS Quarterly, Vol. 17 No.2, pp.47-59.
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ROLE OF MOBILE BANKING IN THE PRESENT ERA
DR. MUNDE SANJEEVANI DASHRATHRAO Asst.Prof.in Commerce, Department of Commerce, KSGM College Dharmapuri, Taq-Parali(V), Dist-Beed, Maharashtra.
Abstract Mobile banking is a revolution that is driven by the world‟s one of the fastest growing sectors – mobile communication technology. This study explores the issues in mobile banking. With electronic banking, users can now conveniently carry out banking transactions, but this convenience cannot be achieved if the user does not have access to the internet, hence, in other words, the user cannot carry out a banking transaction while waiting for a bus, or perhaps while having lunch in a restaurant. With m-banking, convenience can be achieved 24hrs a day. This is because a user has access to his mobile phone all day, at all times. So, to effectively achieve a truly convenient banking mode, a truly mobile mode of banking has to be explored, hence the need for m-banking. In the broader sense mobile banking is that type of execution of financial services in the course of which - within an electronic procedure - the customer uses mobile communication techniques in conjunction with mobile devices. Mobile Banking can be said to consist of three inter-related concepts viz. Mobile Accounting, Mobile Brokerage and Mobile Financial Information. Mobile Banking is an emerging alternate channel for providing banking services. India is the second largest telecom market in the world, which is having high potential for expanding banking services using mobile. In recent times, the Banking Sector has been making rapid straights by using information technology as a platform. An attempt has been made in this paper to examine various innovative instruments that have been introduced by Banks in recent times among that mobile banking is one instrument and also explains about what are the recent trends in mobile banking.
INTRODUCTION Mobile Brokerage and Mobile Financial The terms Mobile Phone banking and Information. Mobile Accounting is mobile banking (MBanking) are used sometimes characterized as transaction- interchangeably. The term M-Banking is based banking services that revolve around a used to denote the access to banking services bank account and are availed using mobile and facilities offered by financial institutions devices. Not all Mobile Accounting services such as account-based savings, payment are however necessarily transaction- based. transactions and other products by use of an Whereas Mobile Brokerage, in context of electronic mobile device. Mobile banking banking services, refers to intermediary has yielded a multiple effect on the number services related to the bourse, e.g. selling of solutions available to clients. This is in and purchasing of stocks. addition to more efficient transactional TRENDS IN MOBILE BANKING environment and the high substitution of 1. The advent of the Internet has banking points. In the broader sense mobile revolutionized the way the financial services banking is that type of execution of financial industry conducts business, empowering services in the course of which - within an organizations with new business models and electronic procedure – the customer uses new ways to offer 24 hour accessibility to mobile communication techniques in their customers. conjunction with mobile devices. Mobile 2. The ability to offer financial transactions Banking can be said to consist of three inter- online has also created new players in the related concepts viz. Mobile Accounting, financial services industry, such as online
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 banks, online brokers and wealth managers information about its services but also the who offer personalized services, although opportunity of performing interactive retail such players still account for a tiny banking transactions anytime, anywhere. percentage of the industry. Some banks in India have started providing 3. Over the last few years, the mobile and the mobile banking service to their wireless market has been one of the fastest customers that include State Bank of India growing markets in the world and it is still (SBI), Union Bank of India (UBI), Punjab growing at a rapid pace. According to the National Bank (PNB), HDFC, ICICI, Axis GSM Association and Ovum, the number of Bank, etc. mobile subscribers exceeded 2 billion in MOBILE BANKING IN THE WORLD September 2005, and now exceeds 2.5 Mobile banking is used in many parts billion (of which more than 2 billion are of the world with an exception of remote and GSM). rural areas with little or no infrastructure. 4. Mobile devices, especially smart phones, This aspect is also popular in countries are the most promising way to reach the where most of their population is unbanked. masses and to create ―stickiness‖ among In most of these places, banks can only be current customers, due to their ability to found in big cities, and customers have to provide services anytime, anywhere, high journey hundreds of miles to the nearest rate of penetration and potential to grow. bank. Hence, Numbers of cities have According to Gartner, shipment of smart introduced such kind of services. In Iran, phones is growing fast, and should top banks such as Parsian, Tejarat, Mellat, 20million units (of over 800 million sold) in Saderat, Sepah, Edbi and Bankmelli offer the 2006 alone. service. Banco Industrial provides the 5. As the trend is shifting to mobile banking, service in Guatemala. Citizens of Mexico there is a challenge for CIOs and CTOs of can access mobile banking with Omnilife, these banks to decide on how to leverage Bancomer and MPower Venture. Kenya‘s their investment in internet banking and Safaricom has the M-Pesa Service, which is offer mobile banking, in the shortest possible mainly used to transfer limited amounts of time. money, but increasingly used to pay utility 6. The proliferation of the 3G (third bills as well. In 2009, Zain launched their generation of wireless) and widespread own mobile money transfer business, known implementation expected for 2007– 2013 as ZAP, in Kenya and other African will generate the development of more countries. In Somalia, the many telecom sophisticated services such as multimedia companies provide mobile banking, the most and links to m-commerce services. prominent being Hormuud Telecom and its MOBILE BANKING IN INDIA ZAAD service. Telenor Pakistan has also In India, traditional branch-based launched a mobile banking solution, in banking remains the most widely adopted coordination with Taameer Bank, under the method of conducting banking transaction, at label Easy Paisa, which was begun in Q4 the same time commercial banks are 2009. undergoing a rapid change majorly driven by MAJOR SERVICES IN MOBILE the information & telecommunication (ITC) BANKING technology. ICICI bank pioneered in mobile Account information banking services in India. Among public 1. Alerts on account activity or passing of set banks, Union Bank of India was first to thresholds introduce mobile banking (2010). Today 2. Monitoring of term deposits many commercial banks have launched 3. Access to loan statements mobile banking using ITC technology and 4. Access to card statements now they can reach out to customers and 5. Mutual funds / equity statements provide them with not only general 6. Insurance policy management
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Payments, Deposits, Withdrawals and CONCLUSIONS Transfers. 1. Though M- banking seems to cut across 1. Cash-in, cash-out transactions on an ATM all groups, usage is more pronounced 2. Domestic and international fund transfers among youngsters. 3. Micro-payment handling 2. With the help of mobile banking users 4. Mobile & Direct to Home package can send money using their phone to any recharging other customer in the country, deposits 5. Purchasing tickets for travel and and withdrawals in less time. entertainment 3. According to the country Mobile 6. Commercial payment processing banking provides financial services, 7. Bill payment processing including solutions facilitating savings 8. Peer to Peer payments (e.g., Pop money, and insurance. Isis) 4. Mobile Banking facilitates payments, 9. Withdrawal at banking agent giving users a way to pay their bills and 10. Deposit at banking agent to pay for goods at shops that accept ISSUES AND CHALLENGES IN Orange Money electronically without MOBILE BANKING cash. The rapid technology development in 5. Mobile Banking, as has been Mobile technology like 2G, 3G, 4G has demonstrated, has gained non-negligible become major challenges for banks. It is relevance for banks today. Developments visible that the bank which started Mobile in the banking sector, e.g. increased Banking in the form of SMS banking, then competition on account of technological adopted application (software) of Smart developments coupled with the process phones, mobile operating system and Mobile of globalization have produced new Apps posed the banks to adopt the current challenges for banks. Its main technology. The customers are mostly using contribution, however, can be expected ATM and online banking services. Most of to take place in the strategic field as it is the customers feel comfortable without all set to become an instrument of mobile banking. They also feel, there are differentiation. chances of misuse in mobile banking due to 6. Mobile Banking seems to possess the mobile handset theft. potential to become one of the widely MOBILE BANKING FUTURE spread and accepted application in the FUNCTIONALITIES field of Mobile Commerce, particularly Based on the ‗International Review in the backdrop of its high acceptance of Business Research Papers‘ from World across commercially important sections business Institute, Australia, following are of the society. We may expect to see the key functional trends possible in world Mobile Banking go into the footsteps of of Mobile Banking. With the advent of Online Banking, i.e. to become a technology and increasing use of smartphone standard service offered by every bank and tablet based devices, the use of Mobile worth its name. Hence, the future for Banking functionality would enable banking sector is going to make rapid customer connect across entire customer life straights in near future. cycle much comprehensively than before. 7. One of the draw back in Mobile Banking With this scenario, current mobile banking is most of the customers feel comfortable objectives of say building relationships, without mobile banking. They also feel, reducing cost, achieving new revenue stream there are chances of misuse in mobile will transform to enable new objectives banking due to mobile handset theft. targeting higher level goals such as building brand of the banking organization.
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References Washington, DC: Consultative group to 1. Banzal S. (2010), ―Mobile Banking & assist the poor (CGAP) and the United M–Commerce and Related Issues‖, Nations Foundation. | www.public.webfoundation.org/.../25.M 5. Townsend, A. M. (2000). Life in the obile_banking_Mcommerce_ 15.03.pdf real-time city: Mobile telephones and [accessed 10 Jul 2010]. urban metabolism. | 7. Journal of Urban 2. Uppal R.K., ―Customer Perception of E Technology, 7(2), 85-104. | 8. Sharma, – Banking Services of Indian Banks: Prerna, Bamoriya & Preeti Singh (2011) Some SurveyEvidence, The ICFAI - Issues & Challenges in Mobile Banking Journal of Bank Management, Vol. VII In India: A Customer‗s Perspective. | No.10. 6. www.bankrate.com/finance/banking/find 3. Donner, J. (2008). Research approaches ing-best-mobile-banking.aspx. to mobile use in the developing world: A 7. http://www.thejakartapost.com/news/201 review ofthe literature. The Information 2/05/11/commonwealth-bank-tapping- Society, 24(3), 140-159. | growing-mobile-banking-market.html. | 4. Ivatury, G., & Pickens, M. (2006). 8. http://www.newfreeppt.com/banking/mo Mobile phone banking and low-income bile-banking-ppt-freedownload customers: Evidence from South Africa.
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ELECTRONIC ACCOUNTING SYSTEM
PRIN. D. B. SHINDE SAVITA KULKARNI-MAIRALPANT Karmaveer Shantarambapu Assistant Professor Kondaji Wavare, Arts, Science Jugul Dist-Belgauam, & Commerce College, Cidco, Nashik Karnataka
Introduction condition of companies, preparation of E-accounting is the application of documents necessary for tax purposes, online and Internet technologies to the providing information support to many other business accounting function. Similar to e- organizational functions, and so on. Prior to mail being an electronic version of the advent of personal computers, businesses traditional mail, e-accounting is "electronic were limited to manual methods for keeping enablement" of accounting and accounting track of financial data. processes which are more traditionally In many operational applications the manual and paper-based. E-accounting accounting entries can be generated as a by- involves performing regular accounting product of the underlying transactions. A functions, accounting research and the computerized accounting system is able to accounting training and education through handle financial data efficiently, but the true various computer based /internet based value of an accounting system was that it accounting tools such as: digital tool kits, was able to generate immediate reports various internet resources, international web- regarding the company. based materials, institute and company Conceptual Background databases which are internet based, web Electronic accounting can be defined links, internet based accounting software and as " to follow internal and external electronic financial spreadsheet tools to operational events as well as to document, provide efficient decision making. record, archive, summarize those events, and E-Accounting is new development in to present summary information to the field of accounting. It means all your vested interest groups in an electronic transactions will record in online server or environment". It is possible to analyse the data base. E-accounting involves performing electronic accounting concept in three regular accounting functions, accounting categories, such as e-taxing, e-banking, and research and the accounting training and pre accounting practices. In e-taxing education through various computer based practice, transactions such as preparation of internet based accounting tools such as: tax returns, imputation of taxes, and digital tool kits, various internet resources. following tax-related debt and other relevant international web-based materials, institute information occur in an electronic and company databases which are internet environment. E-banking practices consist of based, web links, internet based accounting enterprises' bank-related transactions that software and electronic financial spreadsheet actually take place in an electronic tools to provide efficient decision making. environment via internet. E-pre accounting An E-accounting system could be thought of practices are composed of actions such as as an inter-organizational system because of following the transactions conducted its capability to electronically integrate a set between firms and customers or sellers, of firms. keeping and registering documents, and Accounting plays a critical role in the preparing financial tables in an electronic success or failure of contemporary business environment and submitting those to related institutions. Accounting systems are persons via internet responsible for recording, analyzing, The concept of quality here refers to monitoring and evaluating the financial a group of qualities that make it consistent,
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 and to conform to the specified secure environment. If a person is outside specifications, standards and designs. The the country or far from his office and his purpose of the government e-accounting financial data is in the office or at the information systems is to take part in desktop of his computer, than how does he improving and strengthening the business in access the required information? If you business organizations, and the quality of takeout your laptop with yourself than it will government accounting information systems hinder your accountant job. If you take a influenced by the needs of users of copy of your account in any portable device, government accounting information. The it will have to be updated time to time which characteristics of government accounting is again wastage of time and it may lose or information are a set of qualitative may become part of another problem. So, characteristics that make government only solution is e- accounting. E-accounting information useful to information users. maintains your financial data in a safe In short E-accounting is these of environment. In this process, you have a internet technologies to. the organizational password to access your account and only accounting purposes: .In this process, those persons who have password can access accounting records exist In digital form the accounts. It means only authorized Instead of on paper. persons can access. E-accounting has visited It is an accounting information in India with a rainbow of opportunities. system, where source records, transaction 1. The accounting function receives and accounting entries are received, attention only when a critical need arises. transferred, reported and filed within or No time wastage. outside the organization electronically. 2. Up to date information which is available Objectives of the Research Study in real-time. The main objectives of present research 3. No need of Hiring/Training accounting study are as follows- and payroll staffs. 1. To study the conceptual background of 4. No Payroll related costs, FICA, workers the term E-Accounting. compensation, unemployment, 2. To study & examine the benefits & vacation/sick benefits, health insurance disadvantages of E-Accounting. benefits, and many other expenses. Research Methodology 5. No need to upgrade software and annual The said research study is based on updates from client side. secondary data. Such secondary data is 6. Check and monitor office supplies collected from various reference books (check stock, paper stock, envelopes, related to E-Accounting, Financial toner) Accounting, Corporate Accounting, E- 7. No additional bank charges Auditing, Trade, Commerce, Industry, 8. Cost saving on office space (rent for Economics, Management. additional offices) The secondary data is also collected Benefits of E-Accounting from various websites and other related Following are the .benefits associated literature and reviewed it. For the said with the use of E-accounting. research study secondary data is also 1. No need of in-house bookkeepers' collected and reviewed from the various training and expertise National and International Research Journals 2. No problems with employee turnover, which are related to E-Accounting & E- vacations, sick leave and absenteeism Auditing. 3. No communication difficulties between Need of E-Accounting the accountant and business owner or Normally, every businessman wants organization due to load / work pressure. to access or control its financial data or 4. The business organization concentrates accounts from anywhere, any time in a on the revenue side of business, and
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spends as little time as necessary on the 18. Large storage capacity. accounting and payroll function. Disadvantages of E-Accounting 5. Save time and money. 1. Data security problem. 6. Gain greater control of finances by 2. Speed of broadband connection. moving from paper records to 3. Network connectivity problem (internet computerized accounting software. dependency). 7. Transactions that affect your bank 4. Required ability to use. account can be sent automatically to the 5. Fear of losing your customer data base. online accounting application. 6. If you provide information to a machine 8. Send sales invoices and other documents or over the internet you can never be sure directly to another business's accounts it really gets to the right place. for the recipient to approve without 7. Data security - All your data resides on a having to reenter the information. remote server: however, a back up can be 9. E-accounting may improve the taken regularly. effectiveness of accounting and reporting 8. Speed - Most of the currently available tasks, budgeting, controlling and auditing online office suites require a high which may reflect on the organization's broadband Internet connection. effectiveness as well. 9. Lack some features available on the 10. Almost all purchases and incomes are offline office suites: but this is already tracked by your bank accounts progressively becoming available (MS and credit cards. So, instead of re-typing LIVE, Google online-Suite, Think free, everything into your desktop accounting Zoho Office, Internet Office.Biz and software or spreadsheet you can import eDeskOnline) the transactions securely and 10. A network connection (usually Internet automatically. access) is required to send and receive 11. Organization's entire accounting project changes. That is, internet dependence can be easily outsourced. Bye- makes it more difficult to work offline. accounting system. Conclusion 12. It generates employment opportunities Due to technological progress, both for software developer and accountants. the preparation of a document and 13. It reduces cost of accounting or causes arrangement of accounting records have cost saving (related to payroll etc). No been carried out in electronic installation cost, no software update environment. The fast developments required, and no book keepers required. experienced in information technologies 14. Most of the websites provide this service have impact on all professions as well as the free of cost for example e.g. people carrying out accounting profession. www.wavwaccounting.com If By means of these developments, benefiting accountant has gone outside the area than from the information generated by the he can deal in accounts from that place accounting system that has come to a level also (e accounting is free from location that generate extremely various information and can be accessed from anywhere in in a short-time completely by the the wor1d at any time). information users and approval of the 15. E-accounting helps business to keep their reliability of that information by unrelated financial data in safe secure environment third persons are very important. In other (In case if user computer crashes then words, electronic accounting practices have their documents are still safe on the provided saving of time, synchronous, and remote server. comparable presentation of financial 16. Allows multiuser access, hence it saves statements become easier. On the other hand, time. the electronic audit concept has been brought 17. No need of in-house book keepers. forward by carrying out the audit activities
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 through electronic environment by means of 6. Marriott, N. and Marriott, P (2000), electronic entries and documents. The study Professional Accountants and the provides strong evidence that the use of E- Development of a Management Accounting has contributed to the Accounting Service for the Small Firm: effectiveness of tasks as expected. The study Barriers and Possibilities, Management shows that the use of E-Accounting may Accounting Research,11(4). improve the effectiveness of accounting and 7. Mitchell, F, Reid, G., and Smith, J. reporting tasks, budgeting, controlling and (1998), A Case for Researching auditing which may reflect on the Management Accounting in SME's, organizational effectiveness as well. An Management Accounting: Magazine for improved quality in the system may provide Chartered Management Accountants, better support for the tasks performed by the 76,30-33. system. This study finds that the most 8. Akdogan N (1998). Cost Accounting significant impacts of E-Accounting are on Practices in Unified Accounting System. accounting and reporting and budgeting task Istanbul, Turkey. performance respectively. 9. Shim JK, Siegel JG (2005). The Vest References Pocket Guide to Information 1. Dr. Sanjay Kumar and Preeti Jain, What Technology, New Jersey: John Wiley and Why E-Accounting?, The Economic and Sons Inc. Challenger, No-14, Issue-55, April-June- 10. Singleton T, Singleton A, Bologna J, 2012. Lindquist R (2006). Fraud Auditing And 2. Suleman, YUKCU and Seckin GONEN, Forensic Accounting. New Jersey: John Fraud Auditing in Electronic Accounting Wiley & Sons Inc. Practices, African Journal of Business 11. Alves, M.c.G. (2010), "Information Management, Vol-6(4), pp.1222-1233, Technology Roles in Accounting Tasks- Feb. 2012. A Multiple Case Study", International 3. Mohammed Amidu, John Effah and Journal of Trade, Economics and Joshun Abor, E-Accounting Practices Finance, 1 (1), June 2010. among Small and Medium Entreprises in 12. www.ecomstor.com Ghana, Journal of Management Policy 13. http://en.wikipedia.org/wiki/E- and Practice, Vol-12(4) 2011. accounting 4. Shraddha Verma, E-Accounting: 14. www.ecomaster.com Problems & Prospects, Financ and 15. www.interpristor.com Investment E-Accounting Problems & 16. www.amazines.com Prospects. 5. Hall J. (2007). Accounting Information systems. Ouebec, Canada: Thomson Higher Education.
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TO STUDY OF HISTORY AND FUNCTIONS OF URBAN CO-OPERATIVE BANKS
DR. SANJAY B. SHINDE MES, Shri Dnyaneshwar Mahavidyalaya, Newasa, Dist. Ahmednagar (MS), India (Affiliated to S.P. Pune University, Pune)
Introduction: income strata of society and would The origin of the urban co- inculcate the principles of banking operative banking movement in India can amongst the middle classes. The be traced back to the close of nineteenth committee also felt that the urban century when, inspired by the success of cooperative credit movement was more the experiments related to the co-operative viable than agricultural credit societies. movement in Britain and the co-operative The recommendations of the Committee credit movement in Germany such went a long way in establishing the urban societies were set up in India, co-operative cooperative credit movement in its own societies are based on the principles of co- right. In the present day context, it fs of operation-mutual help, democratic interest to recall that during the banking decision making and open membership. crisis of 1913-14 when no fewer than 57 Co-operatives represented a new and joint stock banks collapsed, there was a alternative approach to organization as there was a flight of deposits from joint against proprietary firms, partnership firms stock banks to co-operative urban banks. and joint stock companies which represent Maclagan committee chronicled this event the dominant form of commercial thus: ―As a matter of fact, the cisis had a organization. contrary effect, and in most provinces, Origin and History Urban co-operative: there was a movement to withdraw The first known mutual aid society deposits from non-co-operatives and place in India was probably the 'Anyonya them in co-operative institutions, the Sahakari Mandali' organised in the distinction between two classes of security erstwhile princely State of Baroda in 1889 being well appreciated and a preference under the guidance of Vithal Laxman being given to the latter owing party to the Kavthekar. Urban co-operative credit local character and publicity of co- societies organized on a community basis operative institutions but mainly, we think, to meet the consumption oriented credit to the connection of Government with co- needs of their members. From its origins operative movement.‖ The Government of then to today, the thrust of UCBs, India Act in 1919 transferred the subject of historically, has been to mobilise savings "Cooperation" from Government of India from the middle and low income urban to the Provincial Governments. The groups and purvey credit to their members Government of Bombay passed the first - many of which belonged to weaker State Cooperative Societies Act in 1925 sections. "which not only gave the movement its The Cooperative Credit Societies size and shape but was a pace setter of Act, 1904 was amended in 1912, with a cooperative activities and stressed the view to broad basing it to enable basic concept of thrift, self-help and organisation of non-credit societies. The mutual aid." Other States followed. This Maclagan Committee of 1915 was marked the beginning of the second phase appointed to review their performance and in the history of Cooperative Credit suggest measures for strengthening them. Institutions. The committee observed that such Key worlds – co-operative, banking, institutions were eminently suited to cater economy, movement, Urban to the needs of the lower and middle Objectives of the study:-
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The objectives of the research paper are as 6) To arrange for safe custody of valuable below: documents of members. 1. To know the concept of co-operative 7) To provide other facilities as provided banks. by commercial banks. 2. To study of Importance of Urban Cooperative Banks 3. To study Difference between commercial and co-operative banks. Functions of Co-Operative Banks Research Methodology:- 1. Area of Operation - The area of The primary source of data operation of an urban co-operative collection in this research paper is the bank is usually restricted by its bye- secondary data. The available information laws to a municipal area or a town. In on co-operative and co-operative banks some cases it exceeds this area. has been extensively used to complete the 2. Membership - The membership of research report. All the available Journals, urban co-operative bank is composed Related books, Web, Articles, Publish and of persons living in urban areas, such unpublished information and Papers as traders, merchants, salaried and provided necessary information to the professional classes etc. The conditions finalize the research paper. relating to the membership are laid Definition:- down in their bye-laws. The 1.The RBI defines Urban Cooperatives membership of these urban co- Banks as ―small sized Co-operatively operative banks varies considerably. In organized banking units which operate in Tamilnadu, the average membership metropolitan, urban and semi-urban exceeded 7000, while in Maharashtra it centers to cater mainly to the needs of was over 3000, in Kerala, it was 2500, small borrowers, viz., owners of small in Orissa 2000, in Madhya Pradesh scale industrial units, retail traders, 1800, in West Bengal it was about 900. professional and salaried classes‖. 3. Management - The management of 2. An urban co-operative Bank is defined urban co-operative Bank rests in the as one which is organized for accepting board of Directors, who are elected by deposits from the public, which is usually General Body, consisting of all the repayable by cheques which carry on members. The final authority in all normal banking business. Urban Banks are matters rests with the general body but those credit societies which undertake all actual conduct of the affairs of the kinds of banking business including the bank rests with the board of directors acceptance of all types of deposits and the and the secretary of the bank. The provisions of banking facilities for their tenure of office of the Board of clientele, such as making advances on Directors varies in the states. The usual personal surety, issue of drafts, practices are to hold elections (a) each discounting Hundis collection of Bills etc year (b) once in three years, and (c) Objectives of Co-Operative Banks: each year by rotation for one third of 1. To attract deposits from members as the board. Holding the elections every well as non-members. year is not favoured by the study 2. To advance loans to members. group. The advantages of holding 3. To act as agent for the joint purchase elections once in three years are that of domestic and other requirements of expenses are kept at a minimum and the members. the board of directors has time to learn 5) To undertake collection of bills, the working of the bank. It is also accepted or endorsed by members. observed that in a large number of institutions the same persons were
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elected to the board of directors from 8. Banking and other facilities - UCBs term toperson from contesting election provide facility of withdrawal of more than one or two consecutive deposits by cheque and arrange for terms. remittance of funds to other center. 4. Resources - Owned funds and Some banks collect pensions, pay borrowed funds are main sources of regularly insurance premiums of its finance of Urban Co-operative Bank. members, discount hundis and bills. Own funds include paid up capital, 9. Investments - The UCBs invest their accumulated reserves created out of surplus money in government and appropriate from profits. Borrowed other trustee securities. Karnatak funds cover deposits of members and (225), Andhra Pradesh (132) Tamil non members and loan from central co- nadu (131) and West Bengal (111), operative banks. Kerala had (67) such banks while all 5. Deposits - The percentage of deposits other states had less than 25 each. Over to working capital varied from state to the years, Primary (Urban) Co- state. It was 76% total capital in 1967- operative Banks have registered a 68. These banks have succeeded in significant progress in growth, in attracting deposits from non members number and size and volume of also because of growing public business handled. As on 31st March confidence in their working. These 2003, there were 2104 UCBs of which banks generally accept current 56 were scheduled banks. About 79 deposits, saving deposits and fixed percent of these banks are located in deposits. But with increasing five states – Andhra Pradesh, Gujrat, competition by the commercial banks, Karnatak, Maharashtra and Tamilnadu more intensive efforts will be required by urban co-operative banks to attract References more deposits. 1. Deshmukh Prasad G.: Working of co- 6. Borrowing - Such borrowings of operative Banks in India : Overview urban co-operative banks from other and Prospects : Kanishks publisher, financing agencies are negligible. New Dhehi These banks generally borrow from 2. International Encyclopaedia of Social central co-operative bank, while a few Sciences,. 1972, borrowed from the appex banks. The 3. Indian institute of Banking & study group on credit co-operatives in Finance,(1928). Laws of Co-operative the Non Agricultural Sector (1963) that Banking. Macmillan. the urban banks should be affiliated 4. Ingale M. T., Sale D. L. and with central co-operative banks and Nawedkar D. S. Economic Analysis appex banks should not finance them of Multipurpose Co-operative directly. Societies in Konkan Region of 7. Loan Operation - The loan operations Maharashtra State : The Maharashtra of Urban Co-operative Banks consists Co-operatives Quarterly. Oct 2007. of granting fixed loans or cash credit 5. Jugale V. B. (1991) Theories of loans to their members against Agricultural Finance: Atalantic mortgage of unencumbered Publisher & Distributors. immoveable property, or on surety of one or more persons who are also members. The member is eligible for loan against personal security up to 5 to 10 times the share capital paid by him.
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HUMAN RESOURCE MANAGEMENT AND PERFORMANCE: A REVIEW AND RESEARCH AGENDA
VILAS NICHIT Assistant Professor, C.T.Bora College,Shirur, Dist–Pune, Maharashtra.
Abstract Human resource is the most important asset for any Organization and it the source of achieving competitive advantage managing human is very challenging as compared to managing technology or capital and for its effective management organization effective management system. There is a growing body of evidence supporting an association between what are termed high performance or high commitment human resource management (HRM) practices and various measures of organizational performance. However, it is not clear why this association exists. This paper argues that to provide a convincing explanation of this association we need to improve our theoretical and analytic frameworks in three key areas. These are the nature of HRM, and especially the rationale for the specific lists of HR practices; the nature of organizational performance; and the linkage between HRM and performance. A model is presented within which to explore these linkages. The existing literature on HRM and performance is reviewed in the light of this analysis to identify key gaps in knowledge and help to focus further the research priorities. In the literature, it is often assumed that traditional, control-oriented HRM systems are increasingly being replaced by commitment-based HRM systems because the latter generally result in higher firm performance. However, an HRM system's effectiveness may not depend on an organization‟s external and internal context, and neither control nor commitment HR systems are without disadvantages. Keywords: Human, Performance, Outcomes, Theory, Virtual human resources.
Introduction: evolved into standardized routines and A Human Resource Management packages of Enterprise Resource Planning System or HRIS (Human Resource (ERP) software. On the whole, these ERP Information System) is a form of HR systems have their origin from software that software that combines a number of systems integrates information from different and processes to ensure the easy applications into one universal database. The management of a business' employees and linkage of its financial and human resource data. Human Resources Software is used by modules through one database is the most businesses to combine a number of important distinction to the individually and necessary HR functions, such as storing proprietarily developed predecessors, which employee data, managing payrolls, makes this software application both rigid recruitment processes, benefits and flexible. administration and keeping track of Human Resource Information attendance records. It ensures everyday Systems provide a means of acquiring, Human Resources processes are manageable storing, analyzing and distributing and easy to access. It merges human information to various stakeholders. HRIS resources as a discipline and, in particular, enable improvement in traditional processes its basic HR activities and processes with the and enhance strategic decision-making. The information technology field, whereas the wave of technological advancement has programming of data processing systems revolutionized each and every space of life
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 today, and HR in its entirety was not left education, health and safety, recreation untouched. Early systems were narrow in facilities, etc. scope, typically focused on a single task, 3. Industrial relations aspect-This covers such as improving the payroll process or union-management relations, joint tracking employees' work hours. Today's consultation, collective bargaining, systems cover the full spectrum of tasks grievance and disciplinary procedures, associated with Human Resources settlement of disputes, etc. departments, including tracking & Virtual human resources: improving process efficiency, managing Technology has a significant impact on organizational hierarchy, and simplifying human resources practices. Human resources financial transactions of all types. In short, is transitioning to a more technology-based as the role of Human Resources departments profession because utilizing technology expanded in complexity, HR technology makes information more accessible to the systems evolved to fit these needs. whole organization, eliminates time doing Human Resource Management: Nature administrative tasks, allows businesses to Human Resource Management is a function globally and cuts costs.[30] process of bringing people and organizations Information technology has improved HR together so that the goals of each are met. practices in the following areas: The various features of HRM include: E-Recruiting - Recruiting has mostly been 1) It is pervasive in nature as it is present influenced by information technology.[31] In in all enterprises. the past, recruiters had relied on printing in 2) It tries to help employees develop their publications and word of mouth to fill open potential fully. positions. HR professionals were not able to 3) It encourages employees to give their post a job in more than one location and did best to the organization. not have access to millions of people, 4) It is all about people at work, both as causing the lead time of new hires to be individuals and groups. drawn out and tiresome. With the use of e- 5) It tries to put people on assigned jobs recruiting tools, HR professionals can post in order to produce good results. jobs and track applicants for thousands of 6) It helps an organization meet its goals jobs in various locations all in one place. in the future by providing for competent Interview feedback, background and drug and well-motivated employees. tests, and onboarding can all be viewed 7) It tries to build and maintain cordial online. This helps the HR professionals keep relations between people working at track of all of their open jobs and applicants various levels in the organization. in a way that is faster and easier than before. 8) It is a multi-disciplinary activity, E-recruiting also helps eliminate limitations utilizing knowledge and inputs drawn of geographic location.[31] Jobs can be posted from psychology, economics, etc. and seen by anyone with internet access. In Human Resource Management: Scope addition to recruiting portals, HR The scope of HRM is very wide: professionals have a social media presence 1. Personnel aspect-This is concerned with that allows them to attract employees manpower planning, recruitment, through the World Wide Web. On social selection, placement, transfer, media they can build the company's brand by promotion, training and development, posting news about the company and photos layoff and retrenchment, remuneration, of fun company events. incentives, productivity etc. Human Resources Information Systems 2. Welfare aspect-It deals with working (HRIS) - Human resources professionals conditions and amenities such as generally process a considerable amount of canteens, cr? ches, rest and lunch rooms, paperwork on a daily basis. This paperwork housing, transport, medical assistance, could be anything from a department transfer
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 request to an employee's confidential tax The major functional areas in human form. In addition to processing this resource management are: paperwork, it has to be on file for a 1. Planning, considerable period of time. The use of 2. Staffing, Human Resources Information Systems 3. Employee development, and (HRIS) has made it possible for companies 4. Employee maintenance. to store and retrieve files in an electronic These four areas and their related functions format for people within the organization to share the common objective of an adequate access when needed. This eliminates number of competent employees with the thousands of files and frees up space within skills, abilities, knowledge, and experience the office. Another benefit of HRIS is that it needed for further organizational goals. allows for information to be accessed in a Although each human resource function can timelier manner. Instead of HR professionals be assigned to one of the four areas of having to dig through files to gain personnel responsibility, some functions information, it is accessible in seconds via serve a variety of purposes. For example, the HRIS. Having all of the information in performance appraisal measures serve to one place also allows for professionals to stimulate and guide employee development analyze data quicker and across multiple as well as salary administration purposes. locations because the information is in a The compensation function facilitates centralized location. Examples of some retention of employees and also serves to Human Resources Information Systems are attract potential employees to the PeopleSoft, My Time, SAP, Timeco, and organization. A brief description of usual Jobs Navigator. human resource functions are given below: Training - Technology makes it possible Human Resource Planning: In the planning for human resources professionals to train function, the number and type of employees new staff members in a more efficient needed to accomplish organizational manner. This gives employees the ability to goals are determined. Research is an access on boarding and training programs important part of this function because from anywhere. This eliminates the need for planning requires the collection and analysis trainers to meet with new hires face to face of information in order to forecast human when completing necessary paperwork to resources supplies and to predict future start. Training in virtual classrooms makes it human resources needs. The basic human possible for the HR professionals to train a resource planning strategy is staffing and large number of employees quickly and to employee development. assess their progress through computerized Job Analysis: Job is the process of testing programs. Some employers even describing the nature of a job and specifying incorporate an instructor with virtual training the human requirements, such as skills, and so that new hires are receiving the most vital experience needed to perform it. The end training. Employees can take control of their product of the job analysis process is the job own learning and development by engaging description. A job description spells out in training at a time and place of their work duties and activities of employees. Job choosing, helping them manage their work- descriptions are a vital source of information life balance. Managers are able to track the to employees, managers, and personnel training through the internet as well, which people because job content has a great helps to reduce redundancy in training and influence on personnel programmes and training costs. Skype, virtual chat rooms, and practices. interactive training sites are all resources that Staffing: Staffing emphasizes the enable a more technological approach to recruitment and selection of the human training to enhance the experience for the resources for an organization. Human new hire. resources planning and recruiting precede
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 the actual selection of people for positions in Career Planning: Career has developed an organization. Recruiting is the personnel partly as a result of the desire of many function that attracts qualified applicants to employees to grow in their jobs and to fill job vacancies. In the selection function, advance in their career. Career planning the most qualified applicants are selected for activities include assessing an individual hiring from among those attracted to the employee‘s potential for growth and organization by the recruiting function. On advancement in the organization. selection, human resource functionaries are Compensation: Human resource personnel involved in developing and administering provide a rational method for determining methods that enable managers to decide how much employees should be paid for which applicants to select and which to performing certain jobs. Pay is obviously reject for the given jobs. related to the maintenance of human Orientation:Orientationis the first step resources. Since compensation is a major toward helping a new employee adjusts cost to many organizations, it is a major himself to the new job and the employer. It consideration in human resource planning. is a method to acquaint new employees with Compensation affects staffing in that people particular aspects of their new job, including are generally attracted to organizations pay and benefit programmes, working hours, offering a higher level of pay in exchange and company rules and expectations. for the work performed. It is related to Training and Development: The training employee development in that it provides an and development function gives employees important incentive in employees to higher the skills and knowledge to perform their levels of job performance and to higher jobs effectively. In addition to providing paying jobs in the organization. training for new or inexperienced Labour Relations: The term ―labour employees, organizations often provide relations‖ refers to interaction with training programmes for experienced employees who are represented by a trade employees whose jobs are undergoing union. Unions are organization of employees change. Large organizations often have who join together to obtain more voice in development programmes which prepare decisions affecting wages, benefits, working employees for higher level responsibilities conditions, and other aspects of within the organization. Training and employment. With regard to labour relations, development programmes provide useful the personnel responsibility primarily means of assuring that employees are involves negotiating with the unions capable of performing their jobs at regarding wages, service conditions, and acceptable levels. resolving disputes and grievances. Performance Appraisal: Performance Record-keeping: The oldest and most basic function monitors employee performance to personnel function is employee record- ensure that it is at acceptable levels. Human keeping. This function involves recording, resource professionals are usually maintaining, and retrieving employee related responsible for developing and administering information for a variety of purposes. performance appraisal systems, although the Records which must be maintained include actual appraisal of employee performance is application forms, health and medical the responsibility of supervisors and records, employment history (jobs held, managers. Besides providing a basis for pay, promotions, transfers, lay-offs), seniority promotion, and disciplinary action, lists, earnings and hours of work, absences, performance appraisal information is turnover, tardiness, and other employee data. essential for employee development since Complete and up-to-date employee records knowledge of results (feedback) is necessary are essential for most personnel functions. to motivate and guide performance More than ever employees today have a improvements. great interest in their personnel records.
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They want to know what is in them, why every employee has a valuable role to play. certain statements have been made, and why The emphasis is on helping individuals to records may or may not have been updated. work together. Workforce planning is part of Performance in Human Resource this strategic process, which looks at the Management long-term needs across the organisation. The performance of the organization Personal development plans enable every is always a difficult topic. Each top manager individual to grow both professionally and likes the comparison of the organization with personally within the business. They also the main competitors on the market. Each help Tarmac to create a distinct and top manager likes the comparison with the important competitive advantage through market benchmark. The organization always selecting and developing highly motivated finds measures, which are better than the and skilled staff who are able to perform at competitors ones. However, it says nothing high levels. about the performance of the company. It References: says nothing about the performance of 1. "Benefits of Human Capital employees. The Organization has to set the Management". Emptrust. Retrieved 8 performance standards, the system measures August 2017. employees against defined standards. The 2. Johnason, P. (2009). HRM in changing Performance management is not about organizational contexts. In D. G. measuring doing things it is about setting Collings & G. Wood (Eds.), Human clear & challenging goals (SMART) and it is resource management: A critical about the regular evaluation of the progress. approach (pp. 19-37). London: The system pushes managers & employees Routledge. to cooperate on achievement. The 3. Collings, D. G., & Wood, G. (2009). performance management has to improve the Human resource management: A critical organization. Meeting the standards is not approach. In D. G. Colligs & G. Wood about the improvement. it is about the status (Eds.), Human resource management: A quo. The organization without the critical approach (pp. 1-16). London: development slowly dies. HR has to bring Routledge. the tool, which pushes managers and 4. Paauwe, J., & Boon, C. (2009). Strategic employees in their creativity. The strategic HRM: A critical review. In D. G. agenda has to be challenging and realistic. Collings, G. Wood (Eds.) & M.A. reid , The goals have to follow the strategic Human resource management: A critical agenda. The excellent employees make the approach (pp. 38-54). London: strategic agenda the reality Routledge. Conclusion 5. Klerck, G. (2009). "Industrial relations Human Resource Management and human resource management". In D. focuses on matching the needs of the G. Collings & G. Wood (Eds.), Human business with the needs and development of resource management: A critical employees. Tarmac depends on its people approach (pp. 238-259). London: because their skills contribute to achieving Routledge.Griffin, Ricky. Principles of its business objectives. Within Tarmac, Managemen.
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ROLE OF FACULTY DEVELOPMENT PROGRAMS IN IMPROVING TEACHING AND LEARNING
DR. SUNIL ZAGADE Associate Professor Garware College of commerce, Pune, Maharashtra
Abstract- Lot of efforts and reforms are being introduced by the Indian Government to improve the quality of education. The quality of higher education definitely depends upon the quality of its teachers. Just having a good foundation of disciplinary knowledge is not sufficient. Faculty needs information, literacy and understanding of the interactions, kinds of knowledge, and an ability to work with others.” They need to continue their own personal, professional and social learning. Faculty members must have the knowledge and skill to take up these advances in their teaching and curricular planning. The knowledge sharing will improve the teaching learning process for the student and benefit the society. Effective faculty development program provide knowledge and tools that enable the faculty to plan and implement instructional approaches that are responsive to various learning. Keywords-: Faculty Development Program, Curriculum, Teaching learning.
Introduction: 2. Website Swami Vivekananda said, What is faculty development? ―Education is the manifestation of perfection Effective faculty development already in men.‖ The faculty members in program provide knowledge and tool that college and Universities must start teaching enable the faculty to plan and implement in a new and different way. It means that instructional approaches that are responsive current generation of professor must break to various learning. An effective faculty the centuries old way of teaching and create development program should contain self a new way that is different and better. They evaluation. The faculty could contain need to acquire new ideas about teaching assessment of their own strength, and learning. College and Universities must weaknesses and areas for improvement. plan to provide better training for the To make FDP effective, four factors teacher, which would help to develop their are to be taken into account, to help the knowledge and positive approach. Effective amount of learning, faculty development program provide 1. Course content. knowledge and tool that enable the faculty to 2. The preferred teaching style. plan and implement approaches that are 3. The preferred learning style. responsive to various learning. FDP is really 4. Educational Environment. helpful to improve their performance and Apart from these four factors, confidence among themselves. 1. The skill Objectives: 2. Knowledge The present research paper is undertaken 3. Aspiration with the following objective, 4. Significant for effective education. 1. To understand the concept of FDP. Faculty Development in India 2. To know the importance of FDP. One of the most important, if not the Research Methodology: most critical, cornerstone of any educational The present study is based on secondary set-up is faculties in terms of its adequacy, method of data collection. The relevant data composition and quality. Unfortunately, in collected from, many of the institutes in India, the course 1. Book of education content is not satisfactory and as per
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 requirement of the industry. There is an and teaching strategies appropriate urgent need to move away from the for a wide range of learning traditional approach of teaching in classroom environment. situation to be mentor and facilitator for 3. The opportunities and challenges of facilitating the proceedings. Lack of technology- technologies offer many adequate research orientation in institutes is opportunities to enhance learning a critical issue. The output of research processes with information. Faculty becomes input for classroom teaching, members must have the knowledge enhancing effectiveness of learning process. and skills to take up these advances The other crucial issue in the system in their teaching and curricular is that there is no adequate interaction planning. between institution and corporate sector. 4. The new faculty members require Current status of faculty development training for institution‘s community One of the valuable and existing and culture. It helps ensuring the changes that have occurred in higher quality of their skills and abilities. education in the last few decades is the Faculty Development Program Activity’s steady growth in faculty development effect on student program. The key objectives of FDP are to If we conduct FDP regularly, it will improve access, equity and quality of higher be more effective on student. education through planned development of 1. Students improve their knowledge, higher education at the state level. attitude and skill. Every college conducted FDP. The 2. Change in teaching behavior against main object of conducting the FDP is to students. develop knowledge of the teacher. FDP is 3. Change in organizational practice nothing but as like providing training and and student learning. improving skills, abilities of the teacher. It 4. Change in attitude towards teaching helps to develop the all round performance and faculty development. of the teacher. Faculty training is very 5. High satisfaction with FDPs. important in these days. Training the faculty to meet the new generation‘s demand and How if faculty development update themselves is essential. Training is accomplished? needed not only in their main subject areas With the phenomenal change in but also in the areas of how to offer the educational and information technology, the content effectively. In higher education role of the teacher has undergone dramatic system much emphasis is given for faculty change, he/she is expected to possess skills development for enhancing the quality of and abilities to plan the curriculum, make teacher instruction and for a teacher‘s rational use of the media technology and growth and development. design an assessment strategy. Importance of Faculty Development This is positive only through a systematic Program approach to Faculty Development. 1. Fiscal constraints and call for Aims of FDP accountability- The faculty member‘s 1. To enrich the knowledge of faculties demolistrate greater accountability in through interaction with eminent the face of the increasing expenses of personalities from industries and public and private investment in academics. education. 2. The knowledge sharing will improve 2. Increasing diversity of student- the teaching learning process to Effective faculty must support the student and benefit the society. learning of that student with diverse 3. To develop the positive attitude and learning need and develop curricula approach of the teacher.
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Conclusion References Faculty members in higher education A. Books are experts in their field of study, many of 1. Andrew J. H. and others (2013). them may not have been trained in the Mentoring beginning teachers: What we practices of effective teaching, how to share know and we don‘t. Teaching and their expertise and how to improve their teacher‘s education. knowledge in latest technical developments. 2. Fink, L. Dee (2013). The current status Considering the global and long term view of faculty development internationally, of higher education, it is clear that faculty international journal for the scholarship development has become well established. In of teaching and learning: Vol-7.,No.2, addition, the whole profession now has a Article 4. strong base of powerful ideas about teaching 3. Sorcinelli, M. D. (2000). Principles of and learning in higher education, stronger good practice: supporting early career than at any time in the past. faculty. Washington DC, American Association of Higher Education. 4. Vivienne C. and others (2010). Professional development for teachers: A world of change. B. Websites: www.naacindia.org www.naac.govt.in
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MUDRA BANKING
DR. H. M. JARE Vice-Principal, Hutatma Rajguru Mahavidyalaya, Rajgurunagar, Dist-Pune, Maharashtra.
INTRODUCTION MUDRA: Micro Units Development and Refinance Agency “Funding The Unfunded” Launched by Mr. Narendra Modi on 8 April 2015, envisage providing MUDRA loan, up to Rs10 lakh. Loans are given to those micro institutions which are engaged in manufacturing, trading and services sectors. MUDRA bank launched with corpus of Rs. 20,000 crores and credit guarantee of Rs. 3,000 crores. Under this scheme loans are rendered by banks, NBFCs, MFIs and other financial institutions as mentioned by MUDRA ltd. KEYWORDS: proprietorships, growth, micro enterprises, financial institutions.
OBJECTIVE OF THE STUDY: It would be ensured that around 60% 1. To study the government‘s proposed of the loan flows to Shishu category and the strategies to get success in completion of balance to Kishore and Tarun categories. this project. With the framework and overall purpose of 2. To understand the legal framework growth and development of these schemes required to avail benefit under this being offered by MUDRA at the rollout scheme. stage have been designed to meet 3. This paper is concerned to overview on requirements of different sectors / business scheme MUDRA under PMMY. activities as well as business entrepreneur 4. To understand the need of MUDRA segments. Brief details are as under: Yojna. Mahila Uddyami Scheme (Women 5. To raised Skill Development. Preneurs), Equipment Finance Scheme for 6. To find out the scope of this scheme. Micro Units Business Loans for Traders and METHODOLOGY: Shopkeepers Micro Credit Scheme (MCS), The current research paper is mainly Refinance Scheme for RRB s/ Cooperative based on secondary sources of data Banks Sector / Activity Focussed Schemes. consisting of various magazines, Mahila Uddyami Scheme:- Suitable newspapers, websites and Government and sufficient financial support to the MFIs, publications. for on lending to women / group of women‘s MUDRA OFFERINGS: / JLGs / SHGs for creation of qualifying Under the guidance of Pradhan assets as per RBI guidelines towards Mantri MUDRA Yojana (PMMY), MUDRA operating micro enterprises as per MSMED has already shaped its initial Schemes / Act. products in to three different categories Equipment Finance Scheme for depending on the nature of business. Micro Units:- Suitable and sufficient Shishu:- Covering loans upto financial support for on lending to Rs.50,000 for just starting small business. individuals for purchasing of necessary Kishore:- If you have set your equipments. business loans above Rs.50,000 and upto Rs. Business Loans for Traders and 5 lakh covered in this scheme. Shopkeepers:- Appropriate and adequate Tarun:- f you need more fund to financial support for on lending to raise your good established business, then individuals for running their shops / business you will get loan cover above 5 lakh to 10 activities and trading/ non –farm income lakh.
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 generating activities and service enterprises “Pradhan Mantri Jan Dhan Yojana” of loan size up to Rs.10 lakh per borrower. the borrower and the drawls could also be Micro Credit Scheme (MCS):- enabled through the Banks ATM network. Support to the MFIs, for on lending to National Payment Corporation of India Individuals / groups of individuals / JLGs / (NPCI) has given RuPay branding to SHGs for creation of qualifying assets as per MUDRA Card and also separate BIN/ IIN RBI guidelines towards operating micro for the same, buy which credit history can be enterprises as per MSMED Act. tracked. Refinance Schemes for RRBs / Eligible Borrowers:- The applicant Cooperative Banks:- Attractive Liquidity of should not be debtor to any bank or financial RRBs / Scheduled Cooperative Banks by institution and should have a adequate credit refinancing loan absolute to micro track record. The individual borrowers may enterprises as per MSMED Act. Sector / be required to have the necessary skills/ Activity Focussed Schemes:- To maximise experience/ knowledge to commence the coverage of beneficiaries to meet proposed activity. The objective of MUDRA requirements of specific business activities is to impart financial assistance to the non- focused schemes would be rolled out. corporate business sector. Under this scheme Schemes are proposed for: loans are given to eligible borrowers to a. Land Transport Sector/ Activity: purchase capital assets / working capital / Purchase of transport vehicles such as auto marketing requirements and income rickshaw, E- rickshaw, 3 wheelers, small generating small business activities in goods transport, taxi, passenger cars etc. manufacturing, processing, service sector or b. Community, Social & Personal trading etc not for self consumption and Service Activities: Such as Boutiques, personal needs. Beauty Parlours, saloons, tailoring shops, Promoters Contribution:- gymnasium, cycle and motor cycle repair Promoters behaves as per the policy shop, dry cleaning, courier agents, medicine framework of the bank, based on overall shops etc. guidelines by RBI (Reserve Bank of India) c. Food Products Sector: Fruits Interest Rates and Processing /vegetables vendors, papad making, achaar Charges: promoters like Scheduled Making, jam / jelly making, ice and ace Commercial banks, RRBs and Cooperative cream making units, biscuit, bread and bun banks wishing to avail of refinance from making units, sweet shops, day catering / MUDRA will have to peg their interest rates, canteen services etc. as advised by MUDRA Ltd, from time to d. Textile Products Sector: To give time. Banks may charge from the borrower support for small industries such as knitting, in the name of processing charges as per printing, cotton ginning, computerized their internal guidelines. Processing charges embroidery, stitching, handloom, chikan for Shishu loans are waived by most banks. work, zari and zardozi work, traditional Repayment of Loan:- embroidery and dyeing, hand work, vehicle Term Loan: To be repaid in suitable accessories and furnishing accessories etc. instalments as per cash flow of the business. Innovative Offering: MUDRA CARD:- OD & CC Limit: Repayment on For the purpose of working capital demand. Renewal and Annual Review as per limit, it has launched a new product called “ internal guidelines of the bank. Tenor of MUDRACARD”, which is debit card and Assistance: Its tenor will be for a maximum provides hassle free credit in flexible 36 months which will also be associated to manner. It can be used to purchase raw terms of allocation of MUDRA funds by material and components from registered RBI from time to time. producers on an online platform. The card Availability of the loan: - Mudra could be linked with popular savings account loan under PMMY is accessible at all
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 branches across the country. MUDRA loan appreciable improvement in their livelihoods is also available at Scheduled Commercial on a sustainable basis, through building Bank and Regional Rural Banks. Mudra loan strong grassroots institutions of the poor.‖ is also issued by NBFCs / MFIs who are Synergies with National Skill financing micro enterprises in small business Development Corporation:- Synergizing activities. with NSDC will help MUDRA in Impact on Indian Economy:- augmenting the skill sets of the sectoral Enhance Production Capacity: Due players. to availability of easy finance small Benefit of Mudra Bank:- entrepreneurs can use optimum aptitude of It provides hassle free credit in a flexible their resources to increase productivity. manner. Employment Generating:- Mudra Interest rate charged shall be reasonable loan scheme increased the confidence of the and would be applicable as per RBI hopeful young person to become first guidelines. creation entrepreneurs as also of active small No subsidy is given to the borrowers. businesses to enlarge their activities. Due to Problems faced in setting up awareness about PMMY approx. 6 crores infrastructure will be resolved. small business units are to be benefited No processing fee would be charged. under this scheme which helps in generating CONCLUSION about 11 crore jobs and the numbers are Indian Government started MUDRA increasing day by day. scheme to officially support Non –Corporate Boost Liquidity:- To boost liquidity, Small Business Sector. People living in rural a loan amount of Rs. 25000 crore approx. and interior part have been availing benefit has already been distributed to almost 38 from MUDRA and it will help the growth of lakhs people under PMMY scheme. Indian MSME Sector and also helps to Raise in GDP:- Non-corporate small increase GDP of our country. MUDRA will business sector can increase the productivity create a new confidence in the small scale of small enterprises with the help of entrepreneurs and it also boost young, MUDRA scheme and contribute more to educated or skilled workers to expand their India‘s GDP. activities .MUDRA scheme specially Women Empowerment:- Mahila encourages women entrepreneurs which Uddyami Scheme expressly encourages leads to women empowerment and plays a women entrepreneurs leading to women important role in nation building. empowerment. REFERENCES Synergies with “Make in India” 1. Official website of MUDRA Campaign:- MUDRA, being an initiative scheme.(http:// www.mudra.org.in/) for promoting micro enterprises, fits well 2. Times of India report with Make in India initiative for supporting (http://timesofindia.indiatimes.com/ these micro enterprises. This also works for business/india-business/Rs-24000-crore- Start-up India and Stand-up India campaign. loans-disbursedunder-Mudra- Synergies with National Rural Yojana/articleshow/49140570.cms) Livelihoods Mission/ National Urban 3. Livelihood Mission:- http://www.allonmoney.com/economy/pradh The National Rural Livelihoods an-mantrimudra-yojana. Mission (NRLM) is set up ―To reduce 4. pmindia.gov.in poverty by enabling the poor households to 5. NDTV business report access gainful self-employment and skilled (http://profit.ndtv.com/topic/mudra) wage employment opportunities, resulting in
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TIME MANAGEMENT: EFFECTIVE TOOL OF MANAGEMENT
DR. V. T. PATE Assistant Professor, Arts, Commerce & Science College, Narayangaon, Taluka-Junnar, District-Pune, Maharashtra, India.
ABSTRACT In this research paper included that, what is the importance of time management in our life? Also I give in this research paper to conclude that the effective tool of management in business organization. Time management helps you have a greater sense of control over your life, both at work and at home. Time management helps you have a greater sense of control over your life, both at work and at home. Good time management is essential to success at university. Planning your time allows you to spread your work over a session, avoid a „traffic jam‟ of work, and cope with study stress. Studying at university often involves meeting conflicting deadlines, and unless you plan ahead, you‟ll find it impossible to manage. To meet the demands of study you need to spread your workload over a session. Work out what needs to be done and when. Work out how to use your available time as efficiently as possible. At a minimum, a day planner is a device that includes a calendar, space to write “to-do” lists, and space to write telephone numbers, addresses, and other basic identifying/reference information. It can be a paper-and-pencil model, as with Franklin planner, Day Timer, or Planner Pad brands. It can be a fancy electronic organizer such as a Palm Pilot, or it can be time management software on a laptop or desktop computer. Electronic organizers have a number of advantages. They are compact; they provide audible reminders that can serve as memory management aides, they can sort, organize, and store more information more efficiently than paper and pencil planners; and they can easily exchange information with office and home computers. KEY WORDS - Time Management, Planning, Controlling, Day Time, Success, Work Efficiency, Business Organisation.
INTRODUCTION telephone numbers, addresses, and other “Your day planner should be the only basic identifying/reference information. It planning calendar for everything you can be a paper-and-pencil model, as with do…” Franklin planner, Day Timer, or Planner Good time management is essential Pad brands. It can be a fancy electronic to success at university. Planning your organizer such as a Palm Pilot, or it can be time allows you to spread your work over time management software on a laptop or a session, avoid a ‗traffic jam‘ of work, desktop computer. Electronic organizers and cope with study stress. Studying at have a number of advantages. They are university often involves meeting compact; they provide audible reminders conflicting deadlines, and unless you plan that can serve as memory management ahead, you‘ll find it impossible to manage. aides, they can sort, organize, and store To meet the demands of study you need to more information more efficiently than spread your workload over a session. paper and pencil planners; and they can Work out what needs to be done and when. easily exchange information with office Work out how to use your available time and home computers. as efficiently as possible. Do you schedule many At a minimum, a day planner is a appointments on the hour or half-hour? device that includes a calendar, space to Then use a clear daily view. Are you write ―to-do‖ lists, and space to write making ―to do‖ lists but not scheduling
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 many appointments? Perhaps a weekly collected by visiting various libraries. view with a lot of space for lists is needed. Some Government offices were also Your day planner should be the only visited for getting office record and planning calendar for everything you do statistical data. The secondary data is also (i.e., work, home, personal). Using collected from various websites. separate calendars at home and at the With the above objectives keep in office may become confusing and mind the instructed Interview Method and overwhelming; you will inevitably forget Desk Research Method was basically to transfer entries from one calendar to the adopted. The Secondary Data is collected other and miss appointments or important from various reference books related to commitments. Management, Time Management, After selecting a planner, the next Business Management, Strategic step is to start keeping it in a single, Management, Planning Management, accessible location at home and at work, Commerce & Management, and Marketing so you will always know where to find it. & Finance etc. For said research study The location should be clearly visible from secondary data is also collected from the a distance, even in a cluttered room or on a National and International Research messy desk. Convenient locations might Journals which are related to Commerce, be next to the telephone, on a table near Management, Marketing and Time the front door, or on the desk at the office. Management. If the day planner has a strap, it might be TIME MANAGEMENT EFFECTIVE hung on a hook next to the front door, TOOL OF MANAGEMENT above the telephone, or together with the Before you undertake study, you car keys. Carry it to and from work, and need to realistically assess all the demands practice keeping it in the designated on your time. Consider paid employment, locations for a week. family duties, sport, leisure or civic OBJECTIVES OF THE RESEARCH commitments. Good time management STUDY will not help if you are overcommitted. If The said research study was carried out you study full time, spend more than about with following objectives in view:- 12 hours per week in paid employment and 1. To study the effective Time spend every evening at the gym, you won‘t Management. have much time to study. If you suspect 2. To study the strategies for better Time you might have taken on too much, Management. reassess your commitments, priorities and 3. To study the major steps to successful compromise. Be realistic about the amount Time Management. of time an assignment will take you to HYPOTHESIS complete. Different tasks require different The main hypothesis of the said amounts of preparation time. For example, research paper is as follows: you might only need a few hours to H 1 A great deal of time management is prepare for a tutorial, but writing an really about taking responsibility for assignment will take significantly longer. your learning. You can‘t produce good, well written work H 2 The best plan is to be aware of how unless you give yourself enough time to much time you have and to manage it think research and write. Brilliant effectively. assignments are not written the night RESEARCH METHODOLOGY before, so start them in good time. For the present research study the Some weeks will be busier than data pertaining to the above objectives was others, and unforeseen things can happen. collected and reviewed the literature on the Remember that a timetable is only a plan topic concerned. The literature was thus or a guide. If you plan a study time slot
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 and miss it, don‘t panic look at the While activities that are both urgent and schedule and rearrange your time. A great important must be done, Covey etc. deal of time management is really about suggests that we spend less time on taking responsibility for your learning. The activities that are not important in order best plan is to be aware of how much time to gain time to focus on activities that you have and to manage it effectively. Be are not urgent but important. Focusing realistic about your time and what you can on these important activities allows you do with it. to gain greater control over your time TEN STRATEGIES FOR BETTER and possibly reduce the number of TIME MANAGEMENT important tasks that do become urgent. Finding a time management 3. Use a Planning Tool : Time strategy that works best for you depends management experts recommend using on your personality, ability to self- a personal planning tool to improve motivate and level of self-discipline. By your productivity. Examples of personal incorporating some, or all of the ten planning tools include electronic strategies below, you can more effectively planners, pocket diaries, calendars, manage your time. computer programs, wall charts, index 1. Know How You Spend Your Time : cards and notebooks. Writing down Keeping a time log is a helpful way to your tasks, schedules, and memory determine how you are using your time. joggers can free your mind to focus on Start by recording what you are doing your priorities. Auditory learners may for 15-minute intervals for a week or prefer to dictate their thoughts instead. two. Evaluate the results. Ask if you did The key is to find one planning tool that everything that was needed; determine works for you and use that tool which tasks require the most time; consistently. determine the time of day when you are 4. Get Organized : Most people find that most productive; and analyze where disorganization results in poor time most of your time is devoted job, management. Professional organizers family, personal, recreation, etc. recommend that you first get rid of the Identifying your most time consuming clutter. A frequently used method is to tasks and determining whether you are set up three boxes labeled ―Keep‖ – investing your time in the most ―Give Away‖, ―Toss.‖ Separate the important activities can help you to clutter by sorting items into these determine a course of action. In boxes. Immediately discard items in addition, Having a good sense of the your ―Toss‖ box. Your ―Give Away‖ amount of time required for routine box may include items you want to sell, tasks can help you be more realistic in delegate, or discontinue so find a planning and estimating how much time method to eliminate these items such as is available for other activities. a yard sale, charitable donation, or gifts 2. Set Priorities : Managing your time to friends or family members outside effectively requires a distinction your home. between what is important and what is 5. Schedule Your Time Appropriately : urgent. Experts agree that the most Even the busiest people find time for important tasks usually aren‘t the most what they want to do and feel is urgent tasks. However, we tend to let important. Scheduling is not just the urgent dominate our lives. Covey, recording what you have to do (e.g., Merrill, and Merrill categorize our meetings and appointments), it is also activities into four quadrants in their making a time commitment to the Time Management Matrix: urgent, not things you want to do. Good scheduling urgent, important and not important. requires that you know yourself. Using
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your time log, you should have 3. Set at least one major objective each determined those times during the day day and achieve it. when you are most productive and alert. 4. Record a time log periodically to Plan your most challenging tasks for analyze how you use your time, and when you have the most energy. Block keep bad time habits out of your life. out time for your high priority activities 5. Analyze everything you do in terms of first and protect that time from your objectives. Find out what you do, interruptions. when you do it, why you do it. Ask 6. Delegate: Get Help from Others : yourself what would happen if you Delegation means assigning didn‘t do it. If the answer is nothing, responsibility for a task to someone then stop doing it. else, freeing up some of your time for 6. Eliminate at least one time-waster from tasks that require your expertise. your life each week. Delegation begins by identifying tasks 7. Plan your time. Write out a plan for that others can do and then selecting the each week. Ask yourself what you appropriate person to do them. You hope to accomplish by the end of the need to select someone with the week and what you will need to do to appropriate skills, experience, interest, achieve those results. and authority needed to accomplish the 8. Make a to-do list every day. Be sure it task. Be as specific as possible in includes your daily objectives, defining the task and your expectations, priorities, and time estimates, not just but allow the person some freedom to random activities. personalize the task. 9. Schedule your time every day to make 7. Manage External Time Wasters : sure you accomplish the most Your time may be impacted by external important things first. Be sure to leave factors imposed by other people and room for the unexpected and for things. You can decrease or eliminate interruptions. But remember that things time spent in these activities by that are scheduled have a better chance implementing some simple tips listed of working out than things that are below. unscheduled. 8. Avoid Multi-tasking : Recent 10. Make sure that the first hour of your psychological studies have shown that workday is productive. multi-tasking does not actually save 11. Set time limits for every task you time. In fact, the opposite is often true. undertake. You lose time when switching from one 12. Take the time to do it right the first task to another, resulting in a loss of time. You won‘t have to waste time productivity. Routine multi-tasking may doing it over. lead to difficulty in concentrating and 13. Eliminate recurring crises from your maintaining focus when needed. life. Find out why things keep going IMPORTANT STEPS TO wrong. Learn to pro act instead of SUCCESSFUL TIME MANAGEMENT react. 1. Clarify your objectives. Put them in 14. Institute a quiet hour in your day a writing. Then set your priorities. Make block of uninterrupted time for your sure you‘re getting what you really most important tasks. want out of life. 15. Develop the habit of finishing what 2. Focus on objectives, not on activities. you start. Don‘t jump from one thing Your most important activities are to another, leaving a string of those that help you accomplish your unfinished tasks behind you. objectives. 16. Conquer procrastination. Learn to do it now.
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17. Make better time management a daily 5. Beckwith, S. (2006, July). Unleash habit. Set your objectives, clarify your Your PDA‘s Power. Black Enterprise, priorities, plan and schedule your time. 36(12), 66. Do first things first. Resist your 6. Covey, S. R., Merrill, A. R., & Merrill, impulses to do unscheduled tasks. R. R. (1994). First Things First: To Review your activities. Live, to Love, to Learn, to Leave a 18. Never spend time on less important Legacy. New York. things when you could be spending it 7. Dodd, P., & Sundheim, D. (2005). The on more important things. 25 Best Time Management Tools and 19. Take time for you time to dream, time Techniques: How to Get More Done to relax, and time to live. Without Driving Yourself Crazy. Ann 20. Develop a personal philosophy of time Arbor, MI: Peak Performance Press, what time means to you and how time Inc. relates to your life. 8. Successful Time Management, MTD Training & Ventus Publishing Aps, CONCLUSION 2010, ISBN-978-87-7681-662-9 Regardless of the time 9. www.plannerpads.com management strategies you use, you 10. www.davidco.com should take time to evaluate how they have 11. www.mindtools.com worked for you. Ask yourself a few simple 12. www.timetimer.com questions: Do you have a healthy balance between work and home life? Are you accomplishing the tasks that are most important in your life? Are you investing enough time in your own personal wellbeing? If the answer is ―no‖ to any of these questions, then reconsider your time management strategies and select ones that work better for you. Remember that successful time management today can result in greater personal happiness; greater accomplishments at home and at work, increased productivity, and a more satisfying future.
REFERENCES 1. Covey, S. R. (1989). The 7 habits of highly effective people. New York. 2. Nadeau, K. G. (1996). Adventures in fast forward: Life, love and work for the ADD adult. New York. 3. Robin, A. L. (2002). Lifestyle issues. In S. Goldstein & A. Teeter Ellison (Eds.), Clinician‘s guide to adult ADHD: Assessment and intervention (pp. 280-291). New York. 4. Barkley, R.A. & Gordon, M. (2002), Assessment and intervention (pp. 43- 69). New York.
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DIRECT BENEFITS TRANSFER (DBT) IN INDIA: ISSUES AND CHALLENGES
DR. A. A.JAGADALE Assistant Professor Arts, Com. & Science College, Narayangaon, Tal: Junnar, Dist: Pune, Pin: 410504, Maharashtra, India.
Abstract Direct Benefits Transfer (DBT), as a new public policy, has been acknowledged by various segments of the society as an initiative for inclusiveness. It is a mechanism through which the target beneficiaries will get the subsidy amount in cash that shall be credited directly to their accounts by linking all the transactions to Aadhaar. DBT envisages a switch from the present subsidy scheme to transfer of benefits directly to Aadhaar seeded bank accounts of the beneficiaries. It is an earnest endeavour to streamline the subsidy mechanism in India. The scheme has potential to control much rooted corruption in public distribution system, by reducing the intermediate cost, by improving the efficiency of the delivery system and by getting rid of the misuse of funds. Its success, in fact depends upon institutional and infrastructural development in the rural and urban as well through which the scheme can be better implemented. DBT should be leak proof and free from other malpractices and irregularities and needs to be implemented effectively and should concede all kind of policy reforms in the decision making process. As a comprehensive socio-economic protection package, DBT will certainly fulfill the living expectation of the government and people specially the deprived and hapless through „Aap Ka Paisa Aap Ke Haath‟. Key words: Direct Benefits Transfer, Public Policy, Subsidy, Mechanism and Malpractices
Introduction the corner stone of policy decision making Public policy and its implications process, must delve exclusively into the have a tremendous impact on our economic issues, consequences of the policy growth, and social developments world outcomes. The direct benefits transfer as a over. However, these policies need to be substitute to the traditional subsidy scheme refurbished and customized to meet the and as a policy alternative, always has effect current and evolving needs of the people. on the masses especially on the deprived and Thus, in the rapidly changing environment, marginalized. understanding and evaluating public policies Objectives of the Study and other developmental issues; are cardinal 1. The main objective of the study is to and crucial for an inspiring and fulfilling understand the concept of Direct public life. The onus of evolving meaningful Benefits Transfer. public policies lies with the government, but 2. To study the expanded scope of Direct judging their effectiveness and utility lies in Benefits Transfer in India. the realm of researchers. The policy debate 3. To study the benefits of Direct Benefits is not about the choice between good or bad Transfer. policy but is rather regarding the assessment 4. To study the core concerns and of their positivity and effectiveness over one Challenges of Direct Benefits Transfer another. This will persist, especially when in India the new policy overtakes the old and hence Research Methodology debate and discussion will continue to incite The present research study uses the the matter unless implemented and most recent available published secondary evaluated in the context of set goals and data. To achieve the above stated objectives, welfare objectives. Policy matrix which is the secondary data was used. The secondary
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 data that are mainly used are published in according to the need and context of socio- annual reports of various organizations and economic environment of India. This policy survey reports of leading business has been time tested and a few countries magazines. For the said research study the have already adopted DBT apart from Latin secondary data is also collected from the America, and have experienced a mix bag of various National and International Research effects on their people and economy. The Journals which are related to Commerce, scheme has to be framed and implemented Management, Marketing and Finance. For with a few institutional and infrastructural the said research study the data pertaining to amendments and moreover firm the above objectives was collected and improvement is required to make it more reviewed the literature on the topic effective and efficient. Even then, coming concerned. The literature was thus collected out with such a contemplative programme, by visiting various libraries. The Secondary Government of India intends to nullify the data is also collected from various websites. challenges that are inherent in the previous Overview of Direct Benefits Transfer policy and is trying to enhance the benefits (DBT) In India directly to the people by implementing The praxis of policy should be DBT. designed after understanding the needs and Expanded scope of Direct Benefits aspirations of the economy, in context of Transfer socio-economic environment and public Direct benefit Transfer (DBT) is an welfare. Direct Benefits Transfer, as a new ambitious scheme, launched by the Union policy framework, has been acknowledged Government which aims to eliminate from various corners as the demand of the poverty from the country and improve the day. It is a process through which the target economic standard of individuals and their beneficiaries will get the subsidy amount in families. As per this scheme, money is cash that shall be directly credited to their transferred directly into bank accounts of the accounts by linking transactions to Aadhaar. beneficiaries in the form of subsidies on Cash amount is calculated by finding the LPG and Kerosene, pension payments, difference between the market price and scholarships and employment guarantee subsidized price in proportion to the quantity scheme payments etc. Basic idea behind purchased from the market. It is an earnest DBT is to cut down wastage, duplication endeavor to streamline the subsidy and leakages and to enhance efficiency. mechanism in India. The scheme has Expanded scope of DBT potential to control much rooted corruption Cash In-kind Other in public distribution system, by reducing Transfer to Transfer Transfer/ the intermediate cost, improving the Individual to Processes efficiency in delivery system and by Beneficiary Individual E.g: ASHA eliminating the misuse of funds and reduce E.g: PAHAL Beneficiar the role of petty politician and other y intermediaries. This will definitely reduce E.g: PDS the delivery cost and subsidy bills by better Subsidy In-kind Payments targeting and putting off various Schemes goods/ to service malpractices and irregularities. The scheme Welfare products enablers may not fully eliminate the bottlenecks and schemes Training Payments constraints in the process but will certainly with & Skills to third bring paramount changes in the delivery Cash Develop parties for system. It will prevent growth of black Compone ment providing marketing as well as growth of secondary nts More services market. DBT as a concept has been Stipends example Examples borrowed from Latin America and translated & s Aanganwa
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Scholarshi Mid- day di workers 5. Recent media hype and socio-political ps Meal NGOs policy debate brought an unprecedented Cash Swachh awareness among the public and will Awards Bharat definitely disseminate information for Digital among the beneficiaries and will spread excellence Sakshart public awareness to a great extent. Pensions a 6. It will certainly inject money and the & Cash Abhiyan purchasing power in rural sector in Benefits particular. This will raise the standard of living of rural people and will help in Direct Benefits Transfer (DBT): Benefits controlling outward migration at a large. Any paradigms shift in policy that has This scheme will no doubt enhance the benefited the masses socially and purchasing power of the beneficiaries economically, has always got the top and augmenting in developing a positive priority in the developmental agenda of a approach in their spending habits. country. The three ‗f‘ i.e. funds, functions, 7. Various flaws like duplication of work and functionaries are not optimally operated and poor delivery system of the existing during the traditional subsidy scheme scenario of subsidization can cause a through PDS; which leads to leakage of threat to PDS, but proposed plan of DBT benefits that is unable to percolate among will reduce the gap and flaw in delivery the masses. To overcome such constraints system through improved delivery and challenges in the process, DBT has been mechanism with the help of UIDAI. acknowledged as an upgraded scheme than Implementation of UIDAI card has the before. brought unprecedented transparency in 1. Benefits transfer is the part of the the administrative and delivery system. iceberg but its positive effects can be Direct Benefits Transfer (DBT): Core understood in a better manner only when Concerns and Challenges the spending pattern and socio-economic Although the scheme comes with behavior of the beneficiaries will be best of intentions, there is a spring of tested from time to time. ―impractical idealism‖ in the way proposal 2. This can be successfully implemented has been drafted and no fool proof measures because it is globally tested in the line of have been taken to cater the benefits as developing nations. Also, it will be more desired and perceived. effective as this scheme has been already a) The population of various states, those been evaluated and verified through are staying in remote villages, mainly various pilot projects. consists of farmers, labourers and tribal 3. This scheme definitely gives an impetus people. They may refrain from gaining to much talked error-free inclusive the benefits from BT as desired because development especially in the context of they lack modern day facilities like development of poor and unprivileged banking, electricity and proper sections. It will definitely bring down connectivity. This may pose a threat in the corruption and improve the new implementation of the schemes in these public distribution system by eliminating areas. the intermediaries and limiting the b) Identification of target demography is political interference. the biggest challenge in our country, 4. Injection of purchasing power may result hence precautionary step has to be taken in multiplier effects through which more by administrative machinery of each income and employment can be state while issuing the UID card, or generated by boosting indigenous otherwise DBT scheme will become demand in the rural sector. futile.
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 c) Studies conducted by various NGOs and upon how effectively the government research organizations reveals that addresses the issue of UID cards. Studies people of states like Bihar, Odisha and conducted so far on UID card reveals Madhya Pradesh prefer food to cash. that there is a delay in delivering the Besides this, the research revealed that it cards to their owners. Many of the was mostly female who preferred food to entitled beneficiaries have not received cash than their male counterpart. the card till date which is causing serious d) Lack of awareness and information implementation challenge for the among the beneficiaries may pose threat scheme. to the success of this scheme. Lack of j) Although constructive criticism is going understanding about the programme on, still this endeavor of the government among rural masses and other and its resultant benefits can only be beneficiaries may lead to financial better harvested only when all the state malpractices and irregularities at the governments and other stakeholders will point of delivery of services at the grass show their contribution and commitment root level. in the scheme. e) Error of inclusion and error of exclusion Significant Suggestions in the process of identifying poor is the 1. There is a need to promote financial serious concern for the policy makers literacy among the rural poor and which cause serious leakages and inculcate banking habits among them for infiltrations in various schemes. the success of this scheme. Furthermore, various committee reports 2. The entire process of fund transfer should and planning commission reports on be automatic and error-free; otherwise defining poverty and poverty line is also rent seeking behavior of the delivery cause policy debate and create serious agents or officials may crop up in the threat in implementing the program. name of facilitating services to the f) Bulk purchase from the native farmers ultimate beneficiaries. and venders which was in earlier 3. There is a need to evaluate the tradeoff provision of PDS has supported the fact benefits between existing subsidy with perennial demand and desired price. schemes and DBT in a scientific manner, But the scenario is changing because so as to assess the degree of success and Direct Benefits Transfer is acting as a to measures the effectiveness of the substitute of food to cash. program. g) The scheme much talks about the 4. There should not be any unnecessary operational efficiency and delay and harassment at the time of cash implementation than the public needs withdrawal by the beneficiaries, and the wellbeing of the people. Besides, otherwise dishonesty will emerged and this scheme may not necessarily bring the system will become auto-defective. benefits to all the segments as desired 5. Need of political consensus among due to multiplicity of culture, tradition, various political parties and a touch of location and literacy rate of various expertise in shaping the policy, to make states. it a socially viable option. h) The economic effects of the scheme may 6. Any decision taken at macro level must prompt and motivate unnecessary act rationally and should exercise consumption and may encourage people various test on available alternatives to to refrain from work and prefer leisure to cater the need of the nation. work and may disrupt productive 7. Only the involvement of civil society and activities. NGO‘s in the scheme can make DBT an i) The scheme is implemented through an effective scheme. UID card; hence its success depends
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Conclusions 2. Devesh Kapur, P. M. 2008. More on As a comprehensive socio-economic direct cash transfers. Economic & protection package, DBT will certainly Political Weekly, 85-87. fulfill the living expectation of the 3. Dr. Amiya Kumar Mohapatra, Direct government and people specially the Benefits Transfer (DBT) In India: An deprived and hapless through ‗Aap Ka Paisa Initiative for Inclusiveness, International Aap Ke Haath‘. We hope more schemes Journal of Technical Research and shall be covered under DBT and the whole Applications e-ISSN: 2320 -8163, country and its people will get the benefits Special Issue 21 (July, 2015), PP. 5-8. directly without any delay or deficiencies. 4. International Food Policy Research However, just creation of system, structure Institute. 2012, Global hunger Index- the and institutions for better economic challenge of hunger, ensuring development by providing autonomy sustainatale food security under land, through decentralization and participatory water and energy stresses. management of various schemes is not 5. Hand Book on Direct Benefit Transfer, enough rather to create a sustainable people- Planning Commission, Government of centered environment in which the various India, 2013. segments of the society can exercise their 6. Laura, B. Rawlings., a. G. 2005. voice and choice and will get the benefits Evaluating the impact of conditional from the schemes. The beneficiaries should cash transfer programs. The World Bank understand and enjoy their rights and can get Research Observer, 20(1), 29-55. involved in the decision making process for 7. Kannan, K. P., S. M. 2000. Concerns on better inclusiveness. In fact, democracy food security. Economic and Political loses its shine if the poorer and the deprived Weekly, 35(45), 3919-3922. masses of a country are not able to share the 8. Information and Guidance, Direct progress and prosperity generated by that Benefits Transfer (DBT), Planning country, which is visible in various sectors. Commission, GOI. Hence; deliberate effort has to be made by 9. Jha, P. a. 2013. Securing food for all is it the government in various quarters of really difficult to afford. Economic and planning for the betterment of deprived and Political Weekly, XLVIII (4). hapless segments of the society. In this 10. Das, Jishnu, Q.T. D. 2005. Reassessing regards, DBT is a welcome step in creating conditional cash transfer programs. The enabling environment where people would World Bank Research Observer, 20(1), enjoy long, healthy and creative lives. 57-80. 11. Direct Benefits Transfer Scheme Docs. / References Pdf -Government of India. 1. PPT, Direct Benefits Transfer (System, 12. Bryant J. H. 2009. Health Kenya's Cash Key Steps, Operation, Schemes), For transfer program: protecting the health Conference of District Collectors on and human rights of orphans and Direct Benefit Transfer (DBT), Phase II vulnerable children. Health and Human Rollout, Planning Commission, Righis, 11(2). Government of India, 29th April, 2013. 13. www.dbtportal.nic.in 14. www.planningcommission.nic.in.
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M-COMMERCE & ITS APPLICABILITY
DR.REKHA APPASAHEB KADHANE Assistant Professor & Faculty Incharge Adv.M.N.Deshmukh Arts, Science &Commerce College Rajur, Tal-Akole, Dist-A‘Nagar, Maharashtra.
Introduction M-Commerce is the buying and ‗Commerce‘ is the trading of selling of goods and services through ‗something‘ of value between two entities. wireless handheld devices such as mobile That ‗something‘ may be goods, services, telephone and personal digital assistants information, money, or anything else the two (PDAs).2 M-Commerce is a platform where entities consider to have value.1 Trading was a mobile customer can avail various banking the main facility in earlier times with barter and other related commercial facilities facility for goods and services. Later, through his mobile phone. M Commerce is currency was introduced as standardized not the transaction itself. It provides services money to facilitate a wider exchange of and information, which can trigger a future goods and services. Today‘s era is an transaction. The scope of M-Commerce information era and the world is passing therefore goes beyond the initial one time through an Information revolution. One of commercial transaction. The main areas of the profound consequences of the M Commerce use are in text messaging or information revolution is its influence on SMS, mobile payment, financial &banking how economic value is created and services, logistics, goods/services buy/sell, extracted. Today the information is more information services and wireless customer easily accessed, absorbed, arranged and is relationship management etc. priced in different ways. Markets are Objectives: - expanding from regional to global. 1. To study Concept of M commerce Knowledge is replacing land, labour and 2. To study Benefits of M-commerce capital as the key value driver. Intelligent 3. To study Types of M-Commerce networks and virtual spaces are limiting the Key words:- M commerce, M banking, E- need for surface and air travel. With the Money technological progression particularly in Research Methodology:- Secondary data is computers and Internet field has led to the use for this research. Information collected birth of electronic commerce (e-commerce) from various Books, Periodicals & Webs. which enabled the business processes to be Benefits of M-Commerce: more simplified, efficient, quick and The benefits of M-Commerce with accurate resulting in improved productivity respect to customers, merchants and banks with higher satisfaction level to the are as below: customers. Also, improved Processes 1. Ubiquitous Personalized service – resulted in reduced cost of production and anywhere, anytime transaction cost and Therefore the 2. Remote payment for utility bills, profitability of businesses increased insurance premiums, Credit card, bills, manifolds. The emerging Wireless and EMIs etc mobile networks have added another 3. Integration with existing payment dimension of mobility and extended e- systems e.g. Credit/debit card payment commerce to another research and option application subject called Mobile Commerce 4. Promotion of Location based services popularly known as M-Commerce. 5. Faster transaction time
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6. New business opportunities for are routed through the bank. e.g. Balance stakeholders query, share trading alert, banking 7. Point of Sale(POS) device may not transactions etc. require M-Banking platforms/services agencies:- 8. Branding and business opportunities for The M-Commerce/M-Banking banks services are run by many Mobile banking 9. Higher volume in banking with less cash application service providers with their tie- transaction ups with banks and the telecom service 10. Penetration into cash dominated category providers. Different technologies and types 11. Help developing customer loyalty of applications are available from them on 12. Reduction in cost of infrastructure and the mobile platform; each offering a matrix usages of advantages and disadvantages, especially M-Commerce Services – Concept:- when the needs of the disadvantaged M-Commerce Services Infrastructure segments are taken into consideration. Some to change the scenario of retail Applications of the names of M-Commerce adopting Wireless Technology on GSM / platforms/services are mChek, etc. From CDMA. Ready platform is offered for these platforms like m-check, ngpay require deploying M Commerce Services by Java enabled handsets & GPRS facility to different organizations like: operate M-Commerce, while platform like a. Banks and Financial Institutes PayMatedoes not require these. Most of the b. Cellular Operators M-Banking transactions are between the c. Government bank accounts of the customers. Some of the d. Loyalty Providers platform like ‗Green Money transfer ‗allows e. Various Corporate person to person transfer through their bank M-Commerce Infrastructure accounts. Bharat Sanchar Nigam Limited integrates front end applications, like (BSNL) has also plans to launch a mobile Wireless Point of Sale Terminals, Micro banking platform with the help of Finance, vCash, e-purse, Bill Payment, Department of Post wherein a mobile Prepaid Top up Vouchers, Vending Machine subscriber will be able to send money orders operation, e-Governance etc. offered by electronically through SMSs which will be different organizations with backend encashable at all post offices in the country. applications offered by other organizations, Existing framework for M-Banking: required to establish the working model. Practically, Indore has implemented Being a manufacturer, E Cube India offers M-Banking services. Following are the different hardware to support the guidelines given by RBI. applications desired by the client. 1. Transaction limit: Banks are now Types of M-Commerce:- permitted to offer this service to their The M-Commerce can be classified customers subject to a daily cap of Rs broadly in the three main categories:-3 50,000/- per customer for both funds transfer 1.M-Payment: Through Credit/debit and transactions involving purchase of cards: Mobile phones linked to credit/debit goods/services. Presently, such transactions cards can be used to make payments. e.g. M- are subject to separate caps of Rs 5000/- and payment applications like mChek etc. Rs 10000/ -respectively. 2.E-Money:Cash loaded in the mobile 2. Technology and Security Standard: phones. Consumers use this virtual cash as Transactions up to Rs 1000/- can be real value for all types of transactions. E.g. facilitated by banks without end-to-end Prepaid cash card, recharge voucher amount encryption. The risk aspects involved in such etc. transactions may be addressed by the banks 3.M-Banking:Mobile phone used for through adequate security measures. accessing the bank accounts. All payments
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3. Remittance of funds for disbursement customer is debited and the value is credited in cash: In order to facilitate the use of to the merchant account. mobile phones for remittance of cash, banks 8. Credit Card based M-Payment are permitted to provide fund transfer In the credit card based model, the services which facilitate transfer of funds credit card number is linked to the mobile from the accounts of their customers for phone number of the customer. When the delivery in cash to the recipients. The customer makes an m-payment transaction disbursal of funds to recipients of such with a merchant, the credit card is charged services can be facilitated at ATMs or and the value is credited to the merchant through any agent(s) appointed by the bank account. Credit card based solutions have the as business correspondents. Such fund limitation that it is heavily dependent on the transfer service shall be provided by banks level of penetration of credit cards in the subject to the following conditions:- country. a) The maximum value of such transfers Applications of M-Commerce:- shall be Rs 5000/- per transaction. Various applications of Mobile Commerce6 b) Banks may place suitable cap on the are given the below Table:- velocity of such transactions, subject to a maximum value of Rs 25,000/- per Mobile Accounting month, per customer. Mobile online stock c) The disbursal of funds at the agent/ATM Mobile transaction shall be permitted only after banking Mobile banking identification of the recipient. In this information connection, attention of banks is drawn Payment for insurance, to the provisions of the Notification recharge coupons etc dated November 12, 2009, issued by Current affairs Government of India, under Prevention Mobile Tour and travel of Money Laundering Act, 2002, as information information amended from time to time. services Mobile search engines d) Banks may carry out proper due and directories diligence of the persons before Purchase of goods and appointing them as authorized agents for Mobile services such services. shopping Content purchase & e) Banks shall be responsible as principals delivery for all the acts of omission or Sports and cultural Mobile commission of their agents. events 4. Mobile Payment (m-payment) Solutions ticketing Cinema Tickets There are broadly three different Mobile Mobile coupons models available for m-payment solutions on marketing Mobile newsletters the basis of payment: Mobile Gaming • Bank account/debit card based Download of music, Mobile • Credit card based video and ring tones • Telecommunication company billing based entertainment Location based 7. Bank Account/Debit based m-payment entertainment services In this model, the bank account/debit card is linked to the mobile phone number of For Mobile Commerce is an evolving the customer. When the customer makes an area of e-Commerce, where users can m-payment transaction with a 5 MPFI - interact with the service providers through a Mobile Payment Forum of India merchant, mobile and wireless network, using mobile the amount from the bank account of the devices for information retrieval and transaction processing. M-Commerce
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 services and applications can be adopted 5 times than a PC and growing at a very fast through different wireless and mobile rate. With Mobile Commerce offerings networks, with the aid of several mobile expanding, customers have the hand-held devices. However, constraints of both convenience of using their mobile phones for mobile networks and devices influence their making payments for taxi fares and operational performance; therefore, there is a recharging prepaid phone cards. strong need for taking into consideration Emerging Services of Mobile Commerce:- those constraints in the design and a) Increased mobile penetration and use of development phases of M-Commerce GPRS on handsets has resulted in the services and applications. Another important digital downloads market to cross factor in designing M-Commerce services Rs.4.34 Billion by end of March 2012, and applications is the identification of which will definitely increases in future. mobile users requirements. Furthermore, M- b) Monetary transfers or transactions Commerce services and applications need to through mobile phones are found to be be classified based on the functionality they much cheaper than traditional bank provide to the mobile users. This kind of transfers as the transaction costs are classification results in two major classes: much lower in the former. the directory and the transaction-oriented c) Innovative solutions for daily use such services and applications. This paper as payment of auto or taxi fares suggests adoption, analysis and impact of M- d) Inter-bank transfers services are also on Commerce services and applications in the anvil. ICICI Bank Ltd, India‘s India. This approach relies on mobile user‘s largest private bank, has already started needs and requirements, the classification of offering all its services through mobile the M-Commerce services and applications, phones (called mobile banking) since as well as the current technologies and January 2012. Standard Chartered bank wireless computing and their constraints. has launched a service that enables Mobile Commerce is about the purchase and money transfer from any ATM to any sale of goods and services through the mobile phone across the country. The mobile devices such as cell phone, laptop recipient receives a pin number on his etc. with the involvement of a financial or her mobile phone and the sender has institution. Mobile Commerce includes the to convey the order number to the following: recipient. Using these two the recipient a) Travel and Ticketing can withdraw money from the bank‘s b) Movie Ticketing ATM‘s. c) Bill payments to utility and service e) Feasibility studies are being companies conducted to offer Mobile Commerce to d) Merchant & Retail Transactions microfinance firms to enable them collect e) Money Transfer payments from remote areas. The M- Growth of Mobile Commerce:- Commerce/M-Banking services are run by Mobile Commerce services are many Mobile banking application service evolving rapidly due to the coming together providers with their tie-ups with banks and of mobile service providers, banks and the telecom service providers. Different payment service providers to offer more technologies and types of applications are products and secure transactions through available from them on the mobile platform; mobile networks. While e-Commerce is each offering a matrix of advantages and limited to PC users only, Mobile Commerce disadvantages, especially when the needs of is open to almost everyone with a cell phone the disadvantaged segments are taken into and mobile connection. Mobile Commerce is consideration. Some of the names of M- expected to grow because the mobile usage Commerce platforms/services are mChek, and ownership penetration is more than 4 to ngpay etc. From these platforms like m-
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 check, ngpay, require Java enabled handsets devices. However, constraints of both & GPRS facility to operate M-Commerce, mobile networks and devices influence their while platform like PayMate does not operational performance; therefore, there is a require these. Most of the M-Banking strong need for taking into consideration transactions are between the bank accounts those constraints in the design and of the customers. Some of the platform like development phases of M-Commerce ‗Green Money transfer‘ allows person to services and applications. Another important person transfer through their bank accounts. factor in designing M-Commerce services Bharat Sanchar Nigam Limited (BSNL) has and applications is the identification of also plans to launch a mobile banking mobile users requirements. Furthermore, M- platform with the help of Department of Post Commerce services and applications need to wherein a mobile subscriber will be able to be classified based on the functionality they send money orders electronically through provide to the mobile users. This kind of SMSs which will be in cashable at all post classification results in two major classes: offices in the country. the directory and the transaction-oriented services and applications. This paper Conclusion suggests adoption, analysis and impact of M- Mobile Commerce is an evolving Commerce services and applications in area of e-Commerce, where users can India. interact with the service providers through a mobile and wireless network, using mobile Reference devices for information retrieval and 1. http://www.gvsu.edu/business/ijec/v8n3/ transaction processing. M-Commerce p007.html services and applications can be adopted 2. Reserve Bank of India [www.rbi.org.in] through different wireless and mobile 3. www.mpf.org.in networks, with the aid of several mobile
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RECENT TRENDS IN BANKING TECHNOLOGY
DR. PAWAR SUNIL DADARAM Acting Principal, Arts Commerce And Science College, Dehane, Tal-Khed Dist-Pune, Maharashtra.
ABSTRACT The Banking Industry the experienced a Series of Significant transformation in the last few decades among the most important of them in the change in type of organization that dominate the landscape. Today we are having a fairly well developed Banking system with different Classes of banks-Public sector banks, Foreign banks, Regional rural banks, Co- operative banks with the RBI as the Fountain head of the system there has been an unprecedented growth and diversification of banking industry. The Banking industry is undergoing paradigm shift in scope, context, Structure, Functions and governance. The information and Communication technology revolution is radically changing the operational environment of the banks. Keywords - E-Banking, ATM, IT, Recent Trends in Banking.
Introduction:- 1991 Govt. of India introduced a new As the banking sector has been economic policy. Current banking sector has silently innovating and with the advent of come up with a lot of initiatives that oriented technological development economic and to providing a better customer services with financial sector reform introduced in the area the help of new technologies. Banking of telecommunication and information sector mirrors the larger economy its technology one such innovating in e – linkages to all sector make it proxy for what banking. The Banking sector plays a very is happening in the economy as a whole. In significant role in economic development in the competitive banking word improvement India. It is a central to a nation‘s economy as day by day in customer service is most it caters to the needs of credit for all the useful tool for their better growth bank Sections of the society. From the beginning offers. So many changes to access their of 20th century the Banking Sector grown banking and other services sizably. The British Government attention on Objective of study – the need for organized banking sector in the 1. To study the opportunities the banks in country and the set-up Reserve Bank of changing banking scenario India which is working as a central Bank of 2. T India which is working as a central bank. It o study the recent trends in banking is regulative authority of the Banking Sector. 3. To study the use of information Though Commercial banking of the western technology in banking type was developed during the British rule, 4. To explain the recent trade in changing banking as such has not been unknown to in banking scenario India from very ancient days indigenous Method Of study banking as different from the modern This study is best on the analysis of western banking had been organized in the the banking scenario in India and the recent Form of individual business. trade and trades opportunities in the banking. This was due to planned economic With the help of secondary data collection. growth, increase in money supply, growth, The secondary sources of data are banking increase in money supply, Growth of books, annual reports of RBI, Newspaper, banking habit, control and guidance by the Magazine, Journals, Books, The Present RBI and above a nationalization of banks. In study is descriptive in nature .
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Recent Trends in banking payment electronically ECS Scheme 1. Automated Teller machine (ATM)- helps utility instruction insurance ATM is the most popular device in India. companies credit card and finance Which enables the customer to with draw companies to collect the proceed of their money 24 hours a day 7 week telephone bills insurance premier etc. ATM are emerging as the most useful 6. Internet Banking-Internet banking tool unsure any theme banking and unable customer to do banking anywhere banking or anytime money transaction through the banks website on ATM offers benefits to banks in the form the internet under internet banking of extended hours services improved services such as product information customer service larger penetration, less application forms accounts balance crowding at the bank counter cost enquiry fund transfer etc. are provided reduction. by the bank through the internet. 2. Real Time Gross Settlement (RTGS)- 7. Mobile Banking-Everybody with a RTGS introduced in India Since March mobile phone can access banking 4th is system throw which electronics services Irrespective of their location it instruction can be given by banks to is an extension of internet banking if transfer fund from their accounts to off provides services like account balance another bank the RTGS system is mobile alert about credit card and debit maintained and operated by the RBI and card , mini account statement etc. provide a means of efficient faster funds Conclusion Transfer among banks facilities there a Information technology plays vital financial operations as the name role in the world. Many changes have been suggested funds transfer between bank occurring in society with the IT. There are take place on real time basis. several things discuses to consider. E 3. Tele Banking-The Tele banking service Banking is an umbrella system which is easy allows the customer the interface throw to understand, easy to define comparative telephone customer can perform a study of Indian Banking sectors like as number of transactions from convenience public sector, private sector and other sectors office own home or office facilities growing rapid is services because no need to offered by telebanking are information visit bank for each and every queries. on balance claque book requisition Customer get solution of its problem through money transfer, queries on services online bank, Mobile banks, internet bank and 4. Electronic Fund Transfer (EFT)-The other banking service channel. EFT automatically transfer money from Reference one account to another under EFT the 1. A.S. Agrawal, ‗Indian Economy‘ New sender and receiver of funds may be age international Publication 2016. located indifferent cities and may even 2. www.indianresearchjournals.com bank with difference bank. 3. RBI Reports of trends and Progress of 5. Electronics Clearing Service (ECS)- Banking. ECS is the mode of payment of were by 4. S.Natarajan, Dr.R.Parameshwaran, an institution makes large number of ‗Indian Banking, Chand Publication payment like interest divided salary 2016. Pension large of numbers of Share 5. RBI Annual Report 2012, 2013, 2014. holders, employs etc. can make the
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TIME MANAGEMENT –IMPORTANT TIPS OF TIME MANAGEMENT
PRANITA P.SAHANE GOVIND H.SONAWANE College of ABM, College of ABM, Gunjalwadi Pathar, Sangamner, Maharashtra. Gunjalwadi Pathar, Sangamner, Maharashtra.
Abstract Time management is important for your personal life and career success. It teaches you how to manage your time effectively and make the most of it. Time management is not very difficult as a concept, but it‟s surprisingly hard to do in practice. It requires the investment of a little time upfront to prioritise and organise yourself. But once done, you will find that with minor tweaks, your day, and indeed your week and month, fall into place in an orderly fashion, with time for everything you need to do. The highest achievers manage their time exceptionally well. By using the time-management techniques in this section, you can improve your ability to function more effectively – even when time is tight and pressures are high. Key Words: Time, Career, management, Organise.
Introduction It is a set of principles, practices, skills, tools and systems that help you use your time to accomplish what you want. It is rightly said ―Time and Tide wait for none.‖ An individual should understand the value of time for him to succeed in all aspects of life. People who waste time are the ones who fail to create an identify of their own. Time management is the process of organizing and planning how much time you spend on specific activities. Invest some time in our comprehensive collection of time management articles to learn about managing your own time more efficiently, and save yourself time in the future. Time managements include
Setting deadlines Prioritizing activities as Effective Planning per their importance Time Management
Setting Goals and Spending the right time Objectives on the right activity Delegation of responsibilities
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Importance of Time Management: 11. A certain degree of detachment and 1. Time is a special resource that you cannot inner peace are useful in managing your store or save for later use. Everyone has the time effectively. They help you avoid exact same amount of time each day. Time spending too much emotional and mental not well used cannot be retrieved. energy on what people say and think about 2. Most people, feel like they have too much you. They help you stay calm, despite to do and not enough time. They blame lack distractions or difficulties, and this saves of time for their poor finances, stress, bad you a lot of time and energy, which you can relationships, and for not exercising their spend on better and more rewarding body. activities. Wise time management can help you find Five Smart Tips for Time Management the time for what you desire, and for what 1. Organize Your To-Do List: you need to do. Get your to-dos on paper. Keep a notepad or 3. You need time to get what you want out note-taking application handy to jot down of life. If you wait for extra time to appear, everything you have to do as each occurs to you might lose the game of life. Through you. Then, organize your to-dos by type and right time management, you can ―create‖ the use a different paper or digital folder for time you need, and not just wait for it to each such as ―follow up on‖ or ―people to come. By planning your time wisely, you contact‖ or ―to read‖. Finally, schedule it. will have more time to do more things. Put each item on your calendar. Commit the 4. Time management will help you set up right amount of time on a specific day to your priorities. each task and you‘ll actually be able to 5. Time is limited to 24 hours a day, so plan check them off. Just make sure you‘re not your life wisely. making lists instead of tackling other 6. Time management helps you make responsibilities. conscious choices, so you can spend more of 2. Attack One Type of Action at a Time: your time doing things that are important Flitting from making phone calls, to writing and valuable to you. proposals, to answering emails is less than 7. You can learn to find the time for the productive. Each type of action requires things that are important to you. Even a your brain to switch gears, stop, then start small amount of time once a day, or even again on the new task. Try completing the once a week, will take you closer to your same types of tasks before moving to the goals, and you will be surprised at the next. Make your phone calls, then answer progress you make. emails, then write proposals. You‘ll likely 8. You become more productive using save time and increase your productivity. improved time management skills and tools, 3. Eliminate Distractions: and can accomplish more with less effort You probably won‘t be able to eliminate all and time. Time management can help you interruptions. People still need your time reduce wasted time and energy, help you and attention through the day and you have become more creative and productive, and to respond to a crisis or unexpected need for enable you to do the right thing at the right an immediate decision. But you can ―train‖ time. This will of course lead to more others to give you the time you need to get balance and fulfilment in your life. your work done. Don‘t hesitate to block out 9. Life today presents so many distractions, time not to be disturbed. Let your phone go and therefore, it is very easy to lose time on to voice mail. Turn off your email unimportant activities. notification and instant messaging. And 10. Life puts in front of everyone so many unless you need to be on social media for choices each day, and the question is, do you your job, schedule a short block of time for follow what appears on your way, or do you social networks – and stay off them consciously choose what you want to do? otherwise.
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4. Plan For – and Take – Breaks: Time Management Tips It‘s important to relax throughout your day. Identify Your Goals And Priorities You‘ll actually return recharged and more Analyze How You Are Currently productive. Why not let that block of social Spending Your Time media time become one of the day‘s Match How You Are Using Your Time scheduled breaks? And be flexible: you With Your Priorities don‘t need to handle each new task as it Develop A Plan That Is Manageable comes in. Save up several routine, non- Review And Change Your Plan If deadline-driven items to tackle all at once Necessary and you‘ll have more time to accomplish the Build In Some Activities That Energise big things. You And Make You Feel Good 5. Communicate: Expect That Unexpected Things Can It‘s easy to let communication slide when Occur you‘re focusing on time management. But Use Schedules/Diaries/ Reminder don‘t forget to check in with others. Get in Systems That Work For You the habit of asking yourself if whatever Think Helpfully you‘re doing is the best use of your time. If The Difference between Urgent and not – shift to something else. Start recording Important your thoughts, conversations and activities ‗Urgent‘ tasks demand your so you can get an idea of exactly how much immediate attention, but whether you of your day you spend on each. Schedule actually give them that attention may or may time to communicate with others on high- not matter. priority tasks and projects. 'Important' tasks matter and not Planning & Time Management doing them may have serious consequences Being flexible is good, but skills in for you or others. planning and time management will help For example: you meet your goals. It doesn‘t matter if Answering the phone is urgent. If you they are big, long-term goals like working don‘t do it, the caller will ring off, and overseas, starting a family or trade, or going you won‘t know why they called. It may, to university, or more modest, short-term however, be an automated voice telling goals such as making time to watch your you that you may be eligible for favourite show on Sunday night, getting to compensation for having been mis-sold training more often, starting a painting or insurance. That‘s not important. book, or saving money for a new iPod. Going to the dentist regularly is Planning is a great tool for helping you meet important (or so we‘re told). If you your goals. don‘t, you may get gum disease, or other problems. But it‘s not urgent. If you leave it too long, however, it may become urgent, because you may get toothache. Picking your children up from school is both urgent and important. If you are not there at the right time, they will be waiting in the playground or the classroom, worrying about where you are. Reading funny emails or checking Facebook is neither urgent nor important. So why is it the first thing that you do each day? See our
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page minimising distractions to help you 3) Discipline: Discipline yourself to make recognise and avoid other things that it a lifelong practice may distract you from getting your 4) Determination: Be willing to persist in urgent and important tasks done. the midst of all the difficulties until you This distinction between urgent and become an effective time manager. important is the key to prioritising your time and your workload, whether at work or at Reference home. a. https://www.skillsyouneed.com/ps/time- management.html 4 Ds of time management b. Planning and time management 1) Desire: An intense, burning desire to c. 5 Smart Ways for Managers to Improve control your time to achieve maximum Time Management effectiveness. d. Importance of Time Management 2) Decision: a clear and firm decision that by Remez Sasson you are going to practise good time management till it becomes a habit.
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CURRENT TRENDS IN STRESS MANAGEMENT
DR. B. A. SHELAR K.K.W. College, Pimpalgaon(B), Tal-Niphad, Nasik, Maharashtra.
Abstract We‟ve been replacing the physical stressors of work with mental and emotional stressors for many years. What‟s new is that we‟re hitting a resistance point. Many people seem to be reaching a limit. In an increasingly friction-free economy, mental and emotional health is the new wellness. Stress is a complex phenomenon. It has been defined in many ways, but simply put; it is the wear and tear of everyday life. In every day‟s life people are subjected to a wide range of pressures. Similarly there are also a wide range of resources and strategies for coping with pressure. Sometimes people cope well and will not feel that the pressure is having any adverse effect upon them. At other times they will have difficulty in dealing with the situation and that is when we may use the term "stress". Keyword- Stress Management, Depression, Polygraphs, Physical Manifestations, Meditation
Introduction 3. Inability to Relax Stress management is a wide 4. Physical Manifestations spectrum of techniques Objectives of the study and psychotherapies aimed at controlling a 1. To understand the concept of job stress person's level of stress, especially chronic and its impact on employees. stress, usually for the purpose of improving 2. To Know the factors influencing the job everyday functioning. In this context, the stress of employees in the working term 'stress' refers only to a stress with environment and correlation between significant negative consequences, stressors. or distress in the terminology advocated 3. To identify if there is any significance by Hans Selye, rather than what he difference between stress variable with calls eustress, a stress whose consequences reference to gender category. are helpful or otherwise. 4. To identify measures to reduce stress, in Stress produces numerous physical and order to increase the skills of the mental symptoms which vary according to employees. each individual's situational factors. These Why is it so important to manage stress? can include physical health decline as well If you‘re living with high levels of as depression. The process of stress stress, you‘re putting your entire well-being management is named as one of the keys to at risk. Stress wreaks havoc on your a happy and successful life in modern emotional equilibrium, as well as your society. Although life provides numerous physical health. It narrows your ability to demands that can prove difficult to handle, think clearly, function effectively, and enjoy stress management provides a number of life. ways to manage anxiety and maintain Effective stress management, on the other overall well-being.Despite stress often being hand, helps you break the hold stress has on thought of as a subjective experience, levels your life, so you can be happier, healthier, of stress are readily measurable, using and more productive. The ultimate goal is a various physiological tests, similar to those balanced life, with time for work, used in polygraphs. relationships, relaxation, and fun—and the Ways to identify your stress: resilience to hold up under pressure and 1. Inability to Concentrate meet challenges head on. But stress 2. Inability to Sleep management is not one-size-fits-all. That‘s
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 why it‘s important to experiment and find Get social support- Call a friend, out what works best for you. The following send an email. When you share your stress management tips can help you do that. concerns or feelings with another person, it Why Stress occurs? does help relieve stress. But it‘s important When you perceive that demands that the person whom you talk to is someone placed on you such as work, school or whom you trust and whom you feel can relationships exceed your ability to cope. understand and validate you. If your family Some stress can be beneficial at times, is a stressor, for example, it may not producing a boost that provides the drive alleviate your stress if you share your works and energy to help people get through woes with one of them. situations like exams or work deadlines. Meditate- Meditation and mindful However, an extreme amount of stress can prayer help the mind and body to relax and have health consequences, affecting the focus. Mindfulness can help people see new immune, cardiovascular and neuroen perspectives, develop self-compassion and docrine and central nervous systems, and forgiveness. When practicing a form of take a severe emotional toll. Untreated mindfulness, people can release emotions chronic stress can result in serious health that may have been causing the body conditions including anxiety, insomnia, physical stress. Much like exercise, research muscle pain, high blood pressure and a has shown that even meditating briefly can weakened immune system. Research shows reap immediate benefits. that stress can contribute to the development Get enough sleep- Sleep is essential of major illnesses, such as heart disease, for the body to function properly. Adults can depression and obesity. But by finding adopt helpful sleep-enhancing routines. positive, healthy ways to manage stress as it Music- Music can be used in many occurs, many of these negative health situations to help reduce stress and create a consequences can be reduced. Everyone is calming atmosphere: Use classical music to different, and so are the ways they choose to concentrate as it is peaceful, harmonious and manage their stress. Some people prefer doesn‘t have lyrics. Music can also be a pursuing hobbies such as gardening, playing reminder to take breaks. When using music music and creating art, while others find to help you relax before sleep, choose relief in more solitary activities: meditation, soothing music with monotonous repetition, yoga and walking. such as sounds of nature or ambient music Techniques to reduce Stress Manage your time optimally- Take a break from the stressor- It Stress often results from difficulty in coping may seem difficult to get away from a big with day-today problems and conflicting work project, a crying baby or a growing responsibilities. A useful strategy for credit card bill. But when you give yourself dealing with a sense of being overwhelmed permission to step away from it, you let by all the things that need attention is yourself have time to do something else, prioritizing and diarizing. Create time which can help you have a new perspective buffers to deal with unexpected emergencies or practice techniques to feel less – this is a great way to prepare and avoid overwhelmed. It‘s important to not avoid excess stress. your stress, but even just 20-minutes to take If you are ill, rest Learn to say no- care of yourself is helpful. Where a no is the appropriate response, say Smile and laugh- Our brains are it without guilt. No also does not have to be interconnected with our emotions and facial a decline, it can also be a negotiation expressions. When people are stressed, they opportunity e.g. ― I can‘t do that now, but I often hold a lot of the stress in their face. So can do it in next week. laughs or smiles can help relieve some of Talk to someone- We‘ve all heard that tension and improve the situation. of the saying ―a problem shared is a problem
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 halved‖ If you are troubled by something, highway, switch to the slow lane so you can donot suppress it. Instead: Speak to a friend avoid road rage. Break down big jobs into or family member. smaller ones. For example, don‘t try to answer Other techniques all 100 emails if you don‘t have to just answer 1. Exercise - Working out regularly is one of a few of them. the best ways to relax your body and mind. 6. Take a Break – You need to plan on some Plus, exercise will improve your mood. But real downtime to give your mind time off you have to do it often for it to pay off. from stress. If you‘re a person who likes to set So how much should you exercise every goals, this may be hard for you at first. But week? stick with it and you‘ll look forward to these Good: At the very least, 3 to 5 times for 30 moments. Restful things you can do include: minutes Meditation,Yoga,Tai chi,Prayer,Listening to Better: 2 hours and 30 minutes of moderately your favourite music,Spending time in nature. intense exercise like brisk walks 7. Make Time for Hobbies - You need to Best: Add 75 minutes of a vigorous exercise set aside time for things you enjoy. Try to do like swimming laps, jogging, or other sports something every day that makes you feel that gets your heart rate up good, and it will help relieve your stress. It 2. Relax Your Muscles - When you‘re doesn‘t have to be a ton of time -- even 15 to stressed, your muscles get tense. You can help 20 minutes will do. Relaxing hobbies include loosen them up on your own and refresh your things like: Reading, Knitting, Doing an art body by Stretching, Enjoying a massage, Taking project, Playing golf, watching a movie, a hot bath or shower, Getting a good Doing puzzles, Playing cards and board night‘s sleep. games. 3. Deep Breathing - Stopping and taking a 8. Talk About Your Problems - If things few deep breaths can take the pressure off you are bothering you, talking about them can help right away. You‘ll be surprised how much lower your stress. You can talk to family better you feel once you get good at it. Just members, friends, a trusted clergyman, your follow these 5 steps: Sit in a comfortable doctor, or a therapist. And you can also talk to position with your hands in your lap and yourself. It‘s called self-talk and we all do it. your feet on the floor. Or you can lie down. But in order for self-talk to help reduce Close your eyes. Imagine yourself in a relaxing stress you need to make sure it‘s positive and place. It can be on the beach, in a beautiful not negative. So listen closely to what you‘re field of grass, or anywhere that gives you a thinking or saying when you‘re stressed out. If peaceful feeling. Slowly take deep breaths in you‘re giving yourself a negative message, and out. Do this for 5 to 10 minutes at a time. change it to a positive one. For example, don‘t 4. Eat Well - Eating a regular, well-balanced tell yourself ―I can‘t do this.‖ Tell yourself diet will help you feel better in general. It may instead: ―I can do this,‖ or ―I‘m doing the best also help control your moods. Your meals I can.‖ should be full of vegetables, fruit, whole 9. Go Easy On Yourself - Accept that you grains, and lean protein for energy. And don‘t can‘t do things perfectly no matter how hard skip any. It‘s not good for you and can put you you try. You also can‘t control everything in in a bad mood, which can actually increase your life. So do yourself a favour and stop your stress thinking you can do so much. And don‘t 5. Slow Down - Modern life is so busy, and forget to keep up your sense of humor. sometimes we just need to slow down and Laughter goes a long way towards making chill out. Look at your life and find small you feel relaxed. ways you can do that. For example. Set your 10. Eliminate Your Triggers - Figure out watch 5 to 10 minutes ahead. That way you‘ll what are the biggest causes of stress in your get places a little early and avoid the stress of life. Is it your job, your commute, your being late. When you‘re driving on the schoolwork? If you‘re able to identify what
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 they are, see if you‘re able to eliminate them stress, but by building and maintaining from your life, or at least reduce them. If you a network of close friends you can improve can‘t identify the main causes of your stress, your resiliency to life‘s stressors. Many try keeping a stress journal. Make note of practical stress management techniques are when you become most anxious and see if you available, some for use by health can determine a pattern, then find ways to professionals and others, for self-help, remove or lessen those triggers. which may help an individual reduce their levels of stress, provide positive feelings of Conclusion control over one's life and promote There is nothing more calming than general being. Evaluating the effectiveness spending quality time with another human of various stress management techniques being who makes you feel safe and can be difficult, as limited research currently understood. In fact, face-to-face interaction exists. Consequently, the amount and quality triggers a cascade of hormones that of evidence for the various techniques varies counteracts the body‘s defensive ―fight-or- widely. Some are accepted as effective flight‖ response. It‘s nature‘s natural stress treatments for use in psychotherapy, while reliever as an added bonus, it also helps others with less evidence favouring them are stave off depression and anxiety. So make it considered alternative therapies. Many a point to connect regularly and in person professional organizations exist to promote with family and friends. Keep in mind that and provide training in conventional or the people you talk to don‘t have to be able alternative therapies. There are to fix your stress. They simply need to be several models of stress management, each good listeners. And try not to let worries with distinctive explanations of mechanisms about looking weak or being a burden keep for controlling stress. Much more research is you from opening up. The people who care necessary to provide a better understanding about you will be flattered by your trust. It of which mechanisms actually operate and will only strengthen your bond.It‘s not are effective in practice. always realistic to have a pal close by to lean on when you feel overwhelmed by
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HUMAN RESOURCE ACCOUNTING
DR. ROHINI N.PACHORE B.Y.K. College of Commerce, Nasik, Maharashtra.
Abstract Traditional financial accounting considers only the fixed assets and current assets as assets and records this in the balance sheet of companies Annual reports, but the real asset, that is, the human assets are not taken into consideration. This accounting of human asset is done in human resource accounting. In developed countries, HRA is very well followed and is attached in their Annual reports. Although, there is much research about HRA in developed countries, there is a gap in the literature on this area in developing and fast developing countries. The importance and value of human assets was recognized in the early 1990s when there was a major increase in employment in firms in service, technology and other knowledge based sectors. In these sectors, the intangible assets, especially human resource contributed significantly to the building of shareholder value. The critical success factor for any knowledge based company was its highly skilled and intellectual workforce. Soon after the manufacturing industry also seemed to realize the importance of people and started perceiving its employees as strategic assets. Keywords: Human Resources Accounting, human capital, knowledge, intangible assets.
I. Introduction concluded that human resources becomes To ensure growth and development increasingly more important in determining of any organisation, the efficiency of people the total value of an organization. must be augmented in the right perspective. Human resource Accounting (HRA) Without human resources, the other involves accounting for expenditure related resources cannot be operationally effective. to human asset in an organization as opposed The original health of the organization is to traditional accounting which merely indicated by the human behaviour variables, expenses these costs and reduces profit like group loyalty, skill, motivation and which to our mind sub optimises financial capacity for effective interaction, reporting. As a result of this agitation and communication and decision making. the need for harmonization of human with Men, materials, machines, money other resources in financial reporting, this and methods are the resources required for study was carried out. an organization. These resources are broadly Human capital refers to a set of classified into two categories, viz., animate knowledge and competence, skills and and inanimate (human and physical) training, innovation and capabilities, resources. Men, otherwise known as the attitudes and skills, learning ability and human resources, are considered to be motivation of the people who form the animate resources. Others, namely, organization. materials, machines, money and methods are II. Definition of Human Resource considered to be inanimate or physical Accounting (HRA) :- resources. According to American Accounting Resources are "all human, material, Association, HRA is ―the process of real and monetary elements that can be identifying and measuring data about human drawn and used in the production of resources and communicating this economic goods to satisfy social needs". information to interested parties‖. HRA is With the advent of the new economy, similar in principle to the financial knowledge-based economy it has been accounting, that is, just as financial
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 accounting reflects the costs of assets such 3. To examine the perception of as building and machinery, HRA shows management and employees on human human resources as capital not as expenses. resource accounting. According to Stephen Knauf, ―HRA is 4. Increasing managerial awareness of the the measurement and quantification of value of human resources. human organizational inputs such as IV. Human Resource Accounting suggests recruiting, training, experience and the following information: commitment‖. 1. Information for Human Resource Flamholz has defined HRA as Planning ―accounting for people as an organizational a) To facilitate manpower planning resource. It involves measuring the costs b) To gather data on actual costs of incurred by an organization to recruit, select, recruitment and selection, training etc. hire, train and develop the human assets‖ c) Collection of figures over the past period Bullen and Eyler (2010), state that provides reasonable basis for projecting Human Resource Accounting involves future expenses. accounting for expenditure related to human 2. Information for control of personnel resources as assets as opposed to traditional costs accounting which treats these costs as a) To provide reasonable means of expenditures that reduce profit. evaluating the performance of Woodruff(1973) defined Human management in controlling costs. Resources Accounting as the identification, b) The information helps in developing a accumulation and dissemination of system of standard costs for personnel information about Human Resources in recruitment, selection and training. That dollar or Naira term. He further explained would help further in analyzing costs. that Human Resources Accounting is the 3. Information for control of turnover costs systematic accumulation of information a) To increase awareness to Management about changes in investments made in about the costs of turnover and to devise human resources and reporting back that steps to control it. information to operating managers in order 4. Information for evaluation of to assist them to make better decisions than management effectiveness they would have been able to make without a) To increase the accountability of such additional information. management in providing measurements Raghav (2011), states that Human those are effective in developing and Resources Accounting is a method of utilizing people over a longer period of measuring the effectiveness of personnel time. management activities and the use of people b) Cost per employee in an organization. c) Human Capital investment ratio Thus, HRA shows the investment, the d) The amount of wealth created by each organization makes in its people and how employee their values change over a period of time. e) The ratio of salary paid to the total HRA is a sophisticated way to measure the revenue generated effectiveness of personnel management f) Average salary of each employee activities and the use of people in an g) Employee absenteeism rates organization. h) Employee turnover rate and retention III. Objectives of Human Resource rate. Accounting (HRA):- 5. Information for the Board and 1. To identify the nature and importance of Stakeholders human resource accounting. a) To keep the top management abreast of 2. To analyse the extent in which HRA changes in the company and its information help to make wise decisions.
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investment on people and human making can be improved with the help of resource value. HRA.This system can increase productivity b) To help the top management in making because the human talent, devotion, and decision regarding the investment of the skills are considered valuable assets, which firm in human resource to investors even can boost the morale of the employees. though the data remains unaudited. 6. Attracts best human resources V. Advantages of Human Resource Only reputed organisations conduct HRA. Accounting (HRA) :- So, competent and capable people want to 1. Information for manpower planning join these organisations. Therefore, it attracts HRA provides useful information about the the best employees and managers to the cost and value of human resources. It shows organisation. the strengths and weakness of the human 7. Designing training and development resources. All this information helps the programs managers in planning and making the right HRA helps the organisation to design (make) decisions about human resources. Thus, it a suitable training and development program provides useful information for Manpower for its employees and managers. Planning and Decision Making. 8. Valuable information to investors 2. Information for making personnel HRA provides valuable information to policies present and future investors. They can use HRA provides useful information for this information to select the best company making suitable personnel policies about for investing their money. promotion, favourable working environment, VI. Need for Human Resource Accounting job satisfaction of employees, etc.It can (HRA):- assist the management for implementing best The need for human asset valuation methods of wages and salary administration. arose as a result of growing concern for 3. Utilization of human resources human relations management in the industry. HRA helps the organisation to make the best Behavioural scientists concerned with utilization of human resources. The system management of organizations pointed out the of HRA discloses the value of human following reasons for HRA: resources, which helps in proper 1. Under conventional accounting, no interpretation of return on capital employed. information is made available about the It helps in efficient utilization of human human resources employed in an resources and understanding the evil effects organization, and without people the of labour unrest on the quality of human financial and physical resources cannot be resources. operationally effective. 4. Proper placements 2. The expenses related to the human HRA helps the organisation to place the organization are charged to current revenue right man in the right post depending on his instead of being treated as investments, to be skills and abilities. The implementation of amortized over a period of time, with the human resource accounting clearly identifies result that magnitude of net income is human resources as valuable assets, which significantly distorted. This makes the helps in preventing misuse of human assessment of firm and inter-firm resources by the superiors as well as the comparison difficult. management. 3. The productivity and profitability of a 5. Increases morale and motivation firm largely depends on the contribution of HRA shows that the organisation cares about human assets. Two firms having identical the employees and their welfare. This physical assets and operating in the same increases their morale and it motivates them market may have different returns due to to work hard and achieve the objectives of differences in human assets. If the value of the organisation. Managerial decision-
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 human assets is ignored, the total valuation the future, as the importance of figures will of the firm becomes difficult. not be the only aspect to consider. No model VII. Limitations of Human Resource of human resources accounting is accepted Accounting (HRA):- by the accounting bodies all over the world. 1. The valuation of human assets is based on What is needed is measurement of abilities the assumption that the employees are going of all employees in a company, at every to remain with the organisation for a level, to produce value from their knowledge specified period. However, this assumption and capability. Human Resource Accounting is wrong because employee mobility is very (Human Resources Accounting) is basically high. an information system that tells management 2. The human resource accounting may lead what changes are occurring over time to the to the dehumanization in the organisation. If human resources of the business. Human the valuation is not done correctly or the Resources Accounting also involves results of the valuation are not used properly. accounting for investment in people and 3. In the case of financial accounting, there their replacement costs, and also the are certain specified accounting standards economic value of people in an organisation which every organisation must follow. References:- However, there are no standards for 1. Jain K.L Narang Accounting Kalyani HRA.Each organisation has its own Publishers NewDelhi‖ pp.1235. standards for it. So, there are no uniform 2. Subbarao, A.V., &Zehgal, D.(1997). standards for it. Therefore, the HRA of two Human resources information and organisations cannot be compared. disclosure inannual reports : An 4. There are no specific and clear cut international comparison. Journal of guidelines for 'cost' and 'value' of human Human Resource Costing resources of an organisation. The present andAccounting, 2 (2), 53-73. valuation systems have many limitations. 3. Sen, Dilip Kumar. "Anatomy of Human 5. The life of a human being is uncertain. So ResourceMeasurement and Accounting", its value is also uncertain. Ph.D. Thesis,Bangla Academy, 2005. 6.There is no proper clear-cut and specific 4. Parameswaran R. &Jothi K. "Human procedure or guidelines for finding cost and ResourceAccounting –The Charted value of human resources of an organization. Accounted, Jan. 205. pp867-69. The systems which are being adopted have 5. Akhtaruddin,M., "Human Resource certain drawbacks. Accounting InBanking Industry", The VIII. Conclusion:- Cost and Management,Sep.-Oct. 1990, It is fact that the 21st century is era pp. 19-22. of Human demand, countries those have 6. Caplan E. H. and Landekich, S., ―Human labour quality ruling the world with Resource Accounting: Past, Present and dominant technology. Thus, it could include Future‖. the measurement of sustained effort, of 7. Personnel / Human Resource corporate governance or human capital. The Management (Text, Cases and Games): nature of the financial ratio will change in P. Subbarao& V.S.P. Rao.
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STUDY OF IMPACT OF GOODS AND SERVICES TAX ON SERVICE INDUSTRY (HOTEL, EDUCATION, HEALTH)
DR. D. P. GADHE Associate Professor, S.S.G.M. College, Kopargaon. Dist-Ahmednagar, State-Maharashtra
A. ABSTRACT GST is one of the most crucial tax reforms in India. It is a comprehensive tax system that will subsume all indirect taxes of states and central governments and united economy into a seamless national market. It is expected to iron out wrinkles of existing indirect tax system and play a vital role in growth of India. This paper presents an overview of GST concept, explains its impact on service sector industry/institution. Keywords:- Goods and Service Tax, Service sector industry/Institution.
B. The Study has the following Service,& Education Institution. Hence We objectives:- Discussed on following industry/Institution. 1)To Know the Concept of Service. 1.Hotel Industry- 2)To study the impact of GST on Service Hotel industry is basically served Sector related to Hotel,Health,Education two types of services namely restaurant and C. Hypothesis of the study:- accommodation/Hospitality service, hence 1. Goods & Service tax made a positive let we observe what is happened with these impact on service two services by the effect of GST. sector(Hotel,Education,Health) Hotel industry Goods and Services 2. Goods and service tax beneficial to Tax, or GST This seems to be the word consumer & Producer of related service everyone is treating with complete industry. trepidation. There is still a lot of uncertainty D. Definition & Meaning of Service:- and wariness in what the next few months According to Business Dictionary will bring, and what all changes need to be Service Defined as:- made.So how does GST affect the Indian Intangible products such as hospitality sector? Just a few days back, the accounting, banking, cleaning, consultancy, GST council provided a slight sigh of relief education, insurance, expertise, medical to mid- market and luxury hotels by stating treatment, or transportation. Sometimes that only rooms with a tariff of Rs.7,500 services are difficult to identify because and more, and not Rs.5,000 as declared they are closely associated with a good; earlier, would have a GST of 28%. Hotel such as the combination of a diagnosis with rooms with a tariff between Rs. 2,500 to Rs. the administration of a medicine. No 7,500 would have a GST of 18%. transfer of possession or ownership takes -Following Chart provide the price Charged place when services are sold, and they (1) after GST cannot be stored or transported, (2) are Room Tarriff GST instantly perishable, and (3) come into (INR) Applicable existence at the time they are bought and Less than 1000 0% consumed. 1000-2499 12% E. Impact of GST on Service Sector:- 2500-7499 18% This study is related to service More than 7500 28% sector subject to Hotel industry, Health
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b) Restaurant Service/other service:- other place, specially Serving of Food and Liquor in Restaurants arranged for organizing a and in Room Dinning function) together with renting of such premises. 1. Supply of Food/drinks in 12% with restaurant not having ITC Credit. facility of air- Banking and financial services like foreign conditioning or central currency exchange heating at any time during the year 9 In case of currency 18% with and not having licence to exchange to its guest ITC Credit, serve liquor. Value of Currency but Involved (in INR) valuation 2. Supply of Food/drinks in 18% with shall be restaurant having licence ITC Credit done as per to serve liquor. valuation rules 3. Supply of Food/drinks in 18% with restaurant having facility ITC Credit 10. 0 to 1,00,000/- 1% or Rs. of air-conditioning or 250/- central heating at any whichever time during the year. is higher. 4. Supply of Food in 18% with 11 1,00,001/- to 10,00,000/- 1,000/-+ catering service ITC 0.5% Credit< /p> 12 10,00,00/- and above 5,000/- 5 Supply of Food/drinks in 18% with +0.10% or air-conditioned restaurant ITC Credit Rs. in 5-star or above rated 60,000/- Hotel whichever is lower. Rent a Cab Supply of packed food items as mini bar. 6. Rent a cab (If fuel cost is 5% with borne by the service No ITC. 13 Supply of packed food in Rate shall provider) mini bar be as per 7 Rent a cab (If fuel cost is 18% with product borne by the service ITC Credit rate. recipient) Renting out the premises for events, Mandapkeeper conferences etc Bundled service by way 18% with 14 Renting out the premises 18% with 8. of supply of food or any ITC Credit. for events, conferences ITC Credit. other article of human Other Services consumption or any drink, in a premise 15 Catering Services 18% with (including hotel, ITC Credit convention center, club, pandal, shamiana or any 16 Laundry services 18% with ITC Credit
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17 Business support services 18% with National Skill Development Corporation ITC Credit 3. Assessment agencies approved by the Sector Skill Council or the National Skill 18 Telecommunication 18% with Development Corporation services like telephone, ITC Credit 4. Training partners approved by the fax, wifi. National Skill Development Corporation or the Sector Skill Council are also included 19 Beauty parlor 18% with w.r.t the following programs: ITC Credit (a) the National Skill Development 20 Gymnasium services 18% with Programme implemented by the National ITC Credit Skill Development Corporation (b) a vocational skill development course 21 Club Facility. 18% with under the National Skill Certification and ITC Credit Monetary Reward Scheme (c) any other Scheme implemented by the
National Skill Development Corporation‖. 2. Education Sector:- However, as the educational services led by The Right of Children to Free and training and coaching foundations don‘t Compulsory Education Act of 2009 has help in getting legally perceived made education not only compulsory but qualifications therefore these are not has also made the Govt. responsible to exempted from GST. Let us take a look at provide education at economical rates. The them: Council has kept education sector free 1. Higher Education Institutions and Private from its ambit. Institutions - The exemption under GST has Services related to education, provided by been granted just for pre-schools till higher any educational institution to its students, secondary education and since universities faculty and staff like transportation, and other advanced educational institutions catering, mid day meals, admissions, have not been mentioned in the exception examinations, housekeeping etc. have been list, and thus GST of 18% is expected to be exempted under GST. The educational levied on this.Higher education in the institutions that have been granted the private segment will end up being more exemption from GST are pre-schools and costly and in turn, rivalry for admissions in higher secondary educational institutes both government schools/colleges/foundations private and Govt. will increment. There will be a 3 to 5% of The exemption has also been the obligation jump on the cost of granted to the services provided by the administrations that will over the long haul Indian Institutes of Management to their impact the common man. The burden will students, by way of the – be the most on middle class families who 1. 2 year full-time residential PG programs obtain education loans or put their life-long in Management for Post Graduate Diploma savings into educating their wards at in Management, admission in which is reputed institutions. granted via CAT 2. Coaching Institutes - Coaching 2. Fellowship programs in Management institutes form an integral part of education 3. 5 Year Integrated Programs in today as clearing competitive exams and management studies (but excludes the entrance exams seems just impossible Executive Development Program). without taking professional coaching on The education services provided by the how to clear and attempt them. GST has below are also exempted from GST: raised the rate of taxes to 18% from 14% 1. National Skill Development Corporation for these coaching institutes. This will be a set up by the Government of India burden for all parents whose child is about 2. Sector Skill Councils approved by the
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 to start coaching for IITs and other clearly give a boost to the industry in the competitive examinations. near future. The consumer will also share 3. Cost of Organizing Events – Any the benefits in terms of lower price and educational/training events organized in affordability. India by foreign entities which are attended 3) GST and Health Insurance - There is lot by professionals, individuals and overseas of scope of for health insurance in the participants as well would be taxed under country like India where the coverage under GST. health insurance is only 18 percentage in 3. Healthcare Sector: urban and 14 percent in rural India in 2016. Health care is one of the fastest The GST rate on the insurance sector is 18 growing sectors of the Indian economy with percent as against 15 percent service tax in lots of potential in terms of revenue and the pre GST era. It clearly indicates that the employment. Health care is a wider term health insurance premiums are going to that mainly includes pharmacy, medical increase. devices, medical insurance, diagnostics and 4) GST and diagnostics - There is expected other components of medical care. The rise in the prices of diagnostics such as GST is going to affect all the components blood tests, X-rays, MRI and strip based of health care in various ways. diagnostics as they are put under either 12 1) GST and Pharmaceutical industry - or 18 percent slab which is higher than the About two thirds of the out of pocket previous tax rate on these services. In the expenditure on healthcare is on drugs in pre GST era the 10-15 percent of out of India. The burden of all the taxes on drugs pocket expenditure is on diagnostics which in general was about 13 percent in the pre is expected to increase in the post GST GST period and the current GST is 12 period.GST will certainly increase the percent as a whole including ayurvedic Government revenue in the country with drugs. The medicines for HIV-AIDS, more transparency in the tax system that malaria, tuberculosis and diabetes will be will further simplify the tax structure. The imposed 5 percent GST. The GST on the economy is expected to grow at a faster drugs produced under excise free rate. Every sector of the economy would manufacturing zone is yet to be clarified. have its share in the growth of the economy The best thing for the pharma companies is including healthcare sector. In a broad that their cost of purchase is going to spectrum, it is an analysing phase for the reduce. Moreover the burden of multiple healthcare sector to see the impact of GST. tax and complexities associated with The experts of the healthcare sector are multiple tax system slowed down the confident that the post GST period will business. GST will give hassle free business bring the strategic change and will create a environment to the pharma companies. For positive environment by minimizing the the consumer the cost of drugs will come obstacles and complexities in the growth of down. healthcare sector and have a positive impact 2) GST and Medical devices and to bring down the cost of health. Equipment - The manufacturers of medical devices are also joining the party as medical F. Conclusion devices and surgical equipments are We can conclude from the above proposed to be taxed 12 percent under the study that the Goods & Service Tax (GST) GST. The previous burden of taxes on the is much beneficial to the both customer and medical devices and equipment was over 13 the service industry because of its percent including all the bunch of taxes. So uniformity of charging taxes. When we one percent tax benefit is clearly visible come through study of above stated service under the new tax system for the medical industry, we can test our hypothesis on the device and equipment industry. This will basis of analytical study,
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1. Goods & Service tax made a positive 2) https://www.google.co.in impact on service 3) http://www.gstindia.com/ sector(Hotel,Education,Health) 4) http://www.moneycontrol.com/news/tax 2. Goods and service tax beneficial to /why-is-gs consumer & Producer of related service 5) http://www.business- industry. standard.com/article/economy- Both hypothesis are accepted. policy/administratively-we-areready- for-gst-rollout-from-april-1-2016- References shaktikanta-das-115081800008_1.html 1) http://edupaper.in/gst-india-advantages- 6) http://tejas.iimb.ac.in/interviews/27.php disadvantages/#sthash.f6tap0Dw.dpuf 7) https://cleartax.in/s/gst-council/
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A STUDY OF PREVIOUS TAX STRUCTURE AND GOODS AND SERVICE TAX
DR. VAISHALI M. DESHPANDE Maharshi Karve Stree Shikshan Samstha‘s Shree Siddhivinayak Mahila Mahavidyalay, Karvenagar, Pune, Maharashtra.
INTRODUCTION: Electricity duty An individual who is eager to know Tax on Vehicle what is the difference between Goods and All the above mentioned indirect Service Tax and Previous taxes have been subsumed to bring about a taxation system and Goods and Service Tax new tax reform – Goods and Services Tax is a boon to the Indian economy. GST India (GST). Whether you are a Buyer or supplier. is a comprehensive tax on manufacturing, MAJOR INDIRECT TAXES AT sale and consumption of goods and services PRESENT: at national level, under, which no distinction 1. EXCISE DUTY: will be made between, goods and services 2. SERVICE TAX for levying of tax. GST India has subsumed 3. VAT/ CST almost every indirect tax, levied on goods 1. EXCISE DUTY: Central Excise duty is and services by the Central and State an indirect tax levied on goods governments in India. GST has a G2B portal manufactured in India. Central Excise for taxpayers, to access the GST System, revenue is the biggest single source of seeking to file their GST returns. However revenue for the Government of India. The that would not be the only way, for Central Excise duty is levied in terms of interacting with the GST India Services, as Central Excise Act, 1944.Manufacture has the taxpayer, pertaining to his preference of to take registration when turnover exceeds third party applications. 90 crores. Goods shall be removed under Objective of the study: invoice format proscribed in excise rules. 1. To review the previous tax structure. Appropriate duty has been charged on 2. To understand the new concept of invoice and should be paid to central GST. government within time limit. Records have 3. To know GST structure. been to maintain like Daily Stock Account, 4. To compare previous tax and GST. CENVAT Credit on Inputs/ Input Services / Methodology: Capital Goods. Periodic Returns as This paper is purely based on applicable should be submitted within due secondary data. dates. Previous Tax Structure in India: 2. SERVICE TAX: Service Tax is an Central Taxes: * Central Excise indirect tax levied on rendering of services *Additional Duties of in India. This tax is introduced by Finance Custom Act, 1994, by Dr. Manmohan Singh. At * Service Tax present almost 120 category of taxable *SAD service are there in India. Generally service * All Cesses provider is liable to pay service tax but State Taxes: VAT / Sales Tax government has notified certain services Entertainment Tax with regard to which service receiver would Luxury Tax, Lottery Tax be held liable to pay service tax (Reverse Entry tax Charge Concept). Service tax levied by Purchase tax Central Government. Service Provider has to Stamp duty take registration when service turnover
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 exceeds Rs. 9 lakhs. Services shall be governed by a GST Council and its provided by issuing authenticated invoice Chairman is the Finance Minister of India. format prescribed in rules. Six monthly GST is an Indirect tax levied on the supply returns should be submitted within due of goods and services. GST Law has dates. replaced many Indirect tax law that 3. VALUE ADDED TAD (VAT) / previously existed in India. CENTRAL SALES TAX (CST):VAT/ NEED OF GST: CST is also indirect tax levied on sale of 1. Simplified and Unified Tax System. goods. It is the source of revenue to the State Abolition of multiple types of Indirect Government. It is a multi-stage tax levied at Tax. each stage of the value addition chain. VAT 2. Avoid double taxation. Ease of Doing is levied on Intra-State Sale Transactions Business. (within same state).CST is levied on Inter- 3. Reduce Interface with different State Sale Transactions (one state to another departments – Central, State and Local state). VAT Law is defined by States (in bodies. Maharashtra –MVAT Act, 2002) and Rules 4. Simple collection system. made there under. CST law – Central Sales 5. Introduction of GST will reduce the Tax Act, 1956. prices of goods and thereby enhance the LIMITATION OF CURRENT ability of companies to compete INDIRECT TAXES: globally. 1. Tax Cascading. 6. Development of common national 2. Lack of Uniformity in Provisions and market. Rates. 7. Fewer rates and exemptions. 3. Complexities in Administration. 8. Uniform prices throughout the country. 4. Multiple Acts and Compliances-Returns. 9. Transparency in taxation system. 5. Different Valuation basis. 10. Increase in employment opportunities. 6. Different Adjudications. 11. Reduces administrative cost for the 7. Complexity in defining the nature of Government. transaction –Sale vs. Service. OBJECT OF THE GST: 8. Ambiguity under service Tax and VAT – Its main objective is to consolidate Restaurant Services / Works Contract all indirect taxes levied on goods and /Right to use of Movable goods / services. Introduction of GST will reduce Software. the prices of goods and thereby enhance the 9. Ambiguity under Excise and Service tax ability of companies to compete globally. for – Drawings and Designs / Software / GST removes cascading effect of taxation Commissioning and Installation. and also distortion in the economy. For GOODS AND SERVICE TAX: overcome the limitations of existing indirect GST is an Indirect Tax which was tax structure, and creating efficiencies in tax introduced in India on 1st July, 2017 and was administration. It is expected that due to applicable throughout India which replaced GST, India‘s GDP will grow by 1-2% and multiple cascading taxes levied by the India‘s rank in Ease of Doing Business is Central and State Government. The GST is expected to improve by fifty number.
PROPOSED INDIRECT TAX STRUCTURE IN GST: INDIRECT TAXC (GST) = INTRA-STATE (CGST) AND (SGST) + INTER STATE (IGST – DUAL) CGST – CENTRAL GOODS AND SERVICE TAX SGST – STATE GOODS AND SERVICES TAX IGST – INTEGRATED GOODS AND SERVICE TAX In most cases, tax structure under the new regime will be as follows:
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Transaction New Regime Old Regime Sale within the CGST + SGST VAT + Central Revenue will be shared equally State Excise / Service between the Centre and state Tax Sale to another IGST Central Sales There will be only one type of state Tax + Excise / tax (Central) in case of Service Tax interstate sales. The center will then share the IGST revenue based on the destination of goods.
Difference between current taxation system and GST
Previous taxation system and GST System Condition Previous Taxation System GST System Tax Structure Structure 1. Under separate laws, tax is 1. There is no separate tax levied by Central Govt. and levied for goods and State Govt. on goods and services. GST is a services. common tax applicable 2. In the Current taxation system to both of these. import of goods into India is 2. In the GST System till subject to a levy of customs the goods or services duty and the person importing reaches the consumer the goods is liable to pay this GST tax would customs duty at the applicable allow smooth and rates. continuous tax credit at all levels Place of Origin based taxation Destination based Taxation Taxation Types of Taxes Excise duty A percentage levied on manufacture, Excise Duty will be sale, or use of locally produced subsumed in GST and goods. levied as CGST and SGST Service Tax Tax levied by the government on Tax will be subsumed in service providers on certain service GST and levied as CGST,
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transactions, but it‘s actually borne SGST and IGST. by the customers. State VAT VAT (Value Added Tax) is a form Here in GST, it is subjected of indirect tax imposed only on to CGST And SGST if goods sold within a particular state. the supply of goods is within the state. Central sales It is a form of indirect tax imposed It is a form of indirect tax Tax only on goods sold from one state to imposed only on goods sold another state. from one state to another state. Threshold limit
1. Central Excise-1.5 Crores CGST & SGST– Rs.10
2. VAT-Varies from Rs.5to 20 Lakhs to 20 Lakhs as Lakhs from state to state recommended by GST
3. Service Tax- Rs.10 Lakhs Council. Cascading effect This Problem arises because credit In the introduction of CST and many other taxes are not of IGST this situation will allowed not arise as CST concept. Broad scheme Separate laws for charging separate One law for various taxes taxes Tax rates Different tax rates for different There will be taxes. one CGST rate and a uniform SGST Rate across all states. Tax burden Tax burden is high for the individual Tax burden is low because to pay so many taxes. of single tax so the work splits between the manufacturing and service sector. Compliance Tax compliance is complex due to Tax compliance is easier multiplicity of tax. because of one law.
CONCLUSION: References: Previous tax policy was complicated. 1) www.greengst.com/difference-between- Goods and Service Tax has single current-tax-structure-and-gst/ administration. One assess will be 2) ww.ndtv.com/business/before-and-after- administered either by state government or gst-here-are-tax-rates-on-some-common- central government. Around 36 Returns are use-items-17 required to be filed in a year. Taxable event 3) www.ndtv.com/business/before-and- in GST is supply. Anti-Profiteering Measure after-gst-here-are-tax-rates-on-some- clause inserted in GST law so as to ensure common-use-items-17358 that consumer gets benefits of price 4) www.quora.com/What-is-the-difference- reduction in GST due to reduction in taxes. between-old-tax-and-current-GST In simple words, GST is an indirect 5) www.reachaccountant.com/erp-software- tax levied on the supply of goods and pos-software-blog/difference-current- services. GST Law has replaced much taxation-new-goods indirect tax law that previously exist.
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EFFECT OF GST ON INSURANCE
DR. RATI CHANDRA Pashan, Pune, Maharashtra.
“Nothing is constant but Change” and this time it is the long awaited change in the indirect tax plan known as Goods and service tax. Health insurance has become 3% more expensive with the implementation of GST. This research paper is an attempt to understand the effect of increase in GST indirect tax on the insurance premium and on the growth of Indian insurance sector as whole.
Understanding GST in one glance: - Service tax applicable before and The Goods and Service Tax Act after GST popularly known as GST was passed Category Service Tax After in the Parliament in the month of May 2017 With SBC* GST .The tax came in to effect from 1stday of And KKC* July 2017 to bring changes in the tax Term insurance 15% 18% structure between center government and premium State government . It is a ULIP charges 15% 18% comprehensive, multi-stage, destination- Health insurance 15% 18% based value added tax imposed with the premium intention of eradicating cascading of taxes. *SBC Swatch bharat cess KKC Krishi But there was no cascading of taxes in kalyan cess Insurance!! Then why Insurance holder The application of taxes in details: - have to pay more premium? Its like When 1. The amount allocated for Investment (on the buffaloes fight, the crops suffer. behalf of Insurer) is deducted from the The insured have to shell out 3% gross premium and tax is levied only on the more post the implementation of GST the amount allocated purely for insurance taxes have increased from 15% to 18% on premium. the insurance premiums. For example, The Premium Deciding Factor Gross Premium 1000 1000 The premium is decided on the type of insurance one like to buy to prevent the Investment Portion 600 600 risk of financial loss against the events like death, disease, fire or theft. Indian Life Insurance portion 400 400 Insurance sector is broadly divided in to (a) Service tax @ 15% on 60 —– Life insurance and (b) General insurance. 400 Effect of GST on Life Insurance and Health Insurance. GST @18% on 400 —– 72 There are of 3 types (Gupta, 2017) 1. Term insurance plans — The most basic 2. Single premium annuity policies- 10% of form of life Insurance. the premium 2. ULIPs — Unit link investment Plan 3. Rest all cases- 25% for 1st year and 2nd offers the combination of investment year onwards 12.5%on the premium paid and insurance in one plan. Gross Premium p.a. 1000 3. Endowments or money back plan — Insurance plan that pay a lump sum 1st Year amount on maturity or on the event of death or a regular payment of fixed sum 25% of value 250 every month (like a pension)
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GST @18% on 250 62.50 Insurance Befor Afte Applicabilit Product e r y 2nd year Term 15 18 On the entire 12.5% of value 125 Insurance premium GST @18% on 125 22.50 Premium amount Impact: For Insured, the premium of existing ULIP 15 18 On the policies as well as new policies will premium increase 3% due to the increase in tax rates. amount For insurers, as GST is an indirect tax the minus the burden will be passed on to the consumers. investment The insurance company expect higher amount compliance and administrative costs due to the complexities of GST returns and also Health 15 18 On the entire effect of taxability of inter-branch services. Insurance premium Premium amount GST is not applicable on government Add-on 15 18 On the entire insurance scheme like Riders premium Janashree Bima Yojana (JBY); or Premium amount Aam Aadmi Bima Yojana (AABY); Life micro-insurance product as approved Periodicity 15 18 On 10 by IRDA , - Single percent of Varishtha Pension BimaYojana; Premium the total Pradhan Mantri Jeevan Jyoti BimaYojana; premium. It means that Pradhan Mantri Jan Dhan Yogana; the previous Pradhan Mantri Vaya Vandan Yojana 1.5 percent Life insurance provided by the Central of the total Government to members of the Army, Navy premium and Air Force. would be (India.gov.in, 2017) hiked to 1.8 percent of Effect of GST On General Insurance. the total General insurance includes fire premium as insurance, marine insurance, car insurance, per the theft insurance, etc. The same rate of 18% updated GST rates. GST is imposed on Health insurance premiums. Endowmen 15 18 On 3.75 Impact: t Plan percent of For individual insured, the gross Premium the total premium will increased with 3% (First premium For Corporate policyholders, who Year) have taken general insurance through their company will have the benefit of input tax Endowmen 15 18 On 1.875 t Plan percent of credit on the GST paid on their policies Premium the total though this was available to them (Renewal) premium previously also under service tax. Source:- (Dhawan, 2017)
Summary
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The GST has definitely widened the insurance-premium-bank-charges-to- hole in the pocket of insurance holders. increase/articleshow/58895024.cms This hike will have a negative impact on the 2. IRDA. (2017). IRDA annual report. growth of insurance sector. According to Government, Insurance. IRDA. the IRDA reports 2016 life insurance reach 3. Gupta, A. (2017, june 5). How GST will in India has reduced from 4.6% to 2.6% increase insurance premium, bank charges. (IRDA, 2017)and the increment of taxes (Financial express) Retrieved November 27, will bring the affordability of common men 2017, from Financial Express read to lead: further down. The only ray of hope is the http://www.financialexpress.com/money/ho government Insurance schemes and now all w-gst-will-increase-insurance-premium- the energies should focus on increasing the bank-charges/702258/ penetration of Government run insurance 4. India.gov.in. (2017). India .gov.in. scheme to support the lowest cadre of Retrieved november 27, 2017, from Indian population. www.india.gov.in: https://www.india.gov.in/list-government- Reference sponsored-socially-oriented-insurance- 1. Dhawan, s. (2017, june 22). GST impact schemes : Insurance premium,banking service 5. Chandra, D. R. (2017, April 25). A charges to increase. Retrieved november 27, comparative study of health insurance 2017, from economictimes.indiatimes.com: policies among life, non-life and specialised https://economictimes.indiatimes.com/wealt health insurance companies. Pune, h/personal-finance-news/gst-impact- Maharashtra.
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THE IMPACT OF E COMMERCE IN DEVELOPING COUNTRIES AND NEW EMERGING BRAND EXTENSION
SUROJIT SAHA DEEPAK SINGH PARMAR ASM Senior Executive Group Branding Head Digital Marketing TCS
Abstract The Impact of E-commerce has been seen by many as an opportunity for developing countries to gain a stronger foothold in the multilateral trading system. E-commerce can play a pragmatic role in helping developing economies benefit more from trade. Unlike the requirements necessary to run a business from a physical building, e-commerce does not require storage space, insurance, or infrastructure investment on the part of the retailer. However, there are many obstacles in developing countries which seriously hinder the growth of their ecommerce. Index Terms E-commerce, Economic development electronic business, electronic commerce, developing countries developing economies, social development.
Introduction: 4. E-Commerce Revolution In today‘s modern era of high No doubt the way today a technological innovation and scientific consumer who used to wait helplessly for consumer research, never has it been in the receiving qualitative and value add worth history of mankind that today internet has the price they used to pay for the product, connected both the urban and rural today most of the supply and economy. A new kind of energy and manufacturing companies goes all possible enthusiasm has been found creating better ways to delight their customers. E- markets, boosting economies, improving commerce impact has brought a paradigm the quality and standard of life both in city shift from giving seller importance to re and remote villages. Even ten years before focus more on the consumer experience. nobody could think and anticipate the Not only internet explosion has reduced structural and sociological transformation the gap of transaction but also has given that could possibly be done. the customer a wide range of rational From a slow pace economy to a possibilities and options to choose from full throttle growth in economy in the worst to the best. particular in developing countries like History of E-Commerce: ours, the data plays a fundamental role in Background E-commerce actually began positively impacting E commerce which as in the 1970s when larger corporations per market analyst is the next big trillion started creating private networks to share dollar revolution. The key catalyst to information with business partners and enhance this positive growth has been suppliers. brought by the power, the agility of • This process, called Electronic Data connecting the seller, marketer and the Interchange (EDI), transmitted consumer at an extreme end. Based on standardized data that streamlined the detail market research it has been reported procurement process between businesses, that there were four major revolutions that so that paperwork and human intervention took place in the 21st century. were nearly eliminated. 1. Automobile Revolution • EDI is still in place, and is so effective at 2. Hardware Revolution reducing costs and improving efficiency 3. Software Revolution
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 that an estimated 95% of Fortune 1,000 use of technology to conduct financial companies use it. transactions online. • Early EC was pioneered by Internet Objective Mix: companies that didn't (and still don't) The findings indicate that e- perform traditional retail. Called Pure commerce benefits are, by and large, Plays. limited to improvements in intra- and inter • More recently click and mortar stores organizational communications. More have moved online like Barnes and Noble, strategic benefits relating to market access, Best Buy, the Gap, and Wal-mart. customer/supplier linkages or cost savings E-commerce has come a long way were not found in the majority (more than in making a customer the king of the 80%) of organizations surveyed. This market. There are both brighter and darker therefore limits the likelihood of broader impacts that it is creating for developing benefits such as incorporation into global economies. Cited below is little supply chains, disintermediation, and comparative analysis: improved competitiveness. 1. The brighter impact: Future of E-Commerce : • Reducing time and space during each eMarketer, an Internet technology business cycle (IT) research and reporting firm, estimates • More accountability and transparency that the dollar figure for e-commerce will • Better data security against any natural rise from approximately – U.S. $18 billion odd calamities in 1998 to • More fairness while dispensing the – U.S. $294 billion in 2002. US – Or product and services maybe $184 billion by 2004. • Market moving from top elite classes to (Forrester, Business 2.0 Jan 2000) down trodden masses • In Europe, consumers' internet purchases • Better regulation in market distribution will jump from: – US $2.9 billion in 1999 • Ending of license raaj and monopolistic to – US $174 billion in 2005. market • Online business-to-business e-commerce • Better decisions are taken with more is projected to speed past $1 trillion in clarity annual revenue by 2003 2. The darker impact: #.E-commerce Market Models: • Unrealistic branding of the product 1. Business to Business (B2B) Business to • Usability of products has gone down Business or B2B refers to e-commerce • No regulation on the pricing activities between businesses. These • In the name of customization quality has transactions are usually carried out through been compromised Electronic Data Interchange . This allows • It has created more rift between the rich more transparency among business and the poor involved; therefore business can run more • Lot of cyber crimes and financial efficiently. E-commerce uses a range of bankruptcy has been the order of the day technologies. Some technologies such as What is E-commerce? electronic data interchange (EDI) , It is clear that e-commerce is a very electronic mail (e-mail), electronic funds broad concept and does not have a clear transfer (EFT), are already in wide use. cut definition. One way of defining it, is Some of them (e.g. electronic data that, it is a way of doing business interchange - EDI), will require agreement transactions via the internet. E-commerce between trading partners (buyers and or e-business is based on the electronic suppliers) in order to govern their processing and transmission of data, electronic trading relationship. Electronic including text, sound, and video. E- Data Interchange (EDI) (Electronic Data commerce as it is commonly known is the
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Interchange) is a standard format for electronic economy is confronting the exchanging business data. nation state, with intimations of a future in 2. Business to Customer (B2C) Business to which its relevance to its citizens and Customer or B2C refers to e-commerce enterprises will be challenged. The activities that are focused on consumers apparatus of economic regulations and rather than on businesses. taxation through which nation states 3. Customer to Business (C2B) Customer operate was developed to support and to Business or C2B refers to e-commerce facilitate industrial economy. That activities, which uses reverse pricing economy produces tangible and location models where the customer determines the bound services that are sold and prices of the product or services. There is distributed within and between fixed increased emphasis on customer borders. In that familiar world of national empowerment. and international trade, nation states have a 4. Customer to Customer (C2C) Customer variety of tools at their disposal to achieve to Customer or C2C refers to e-commerce their economic ends. They can levy tariffs activities, which uses an auction style on imports, raise taxes, protect consumers model. This model consists of person-to- rights, punish economic criminals, set person a transaction that completely commercial standards, and provide excludes businesses from the equation. guarantees of monetary payment. Until Advantages of E-commerce: recently, these tools were supported by For Consumers • Reduced Prices • governments majority control over Global Marketplace • 24 Hour Access For communications networks and information Businesses • Increased Potential Market dissemination . Because of the emergence Share • Low-Cost Advertising • Low of global communications networks, the Barriers to Entries Disadvantages of E- nation state is gradually losing monopoly commerce7 For the Consumer • Unable to control of information and financial flows. Examine Products Personally • Online Private individuals and enterprises and Purchasing Security For the Business • groups now have the ability to source , Hardware and Software • Maintenance of package, and transmit information in Website • Costs • Website Stickiness and compressed time and space. Through Customer Loyalty • Training and ―digitization‖ currency, services, and even Maintenance . some goods can be conveyed immediately, How E-commerce will affect the transacted invisibly across the globe. Economy? Interactive networks are creating a new, The electronic economy will force network-linked world without borders, in change within nation states. The modern which many commercial transactions are nation state remains the most prevalent beyond the reach of national jurisdictions, unit of governance in the developed and laws, and taxation systems. As a result, the developing world. The concept has, in many of the economic instruments and the last 50 years, been extended rather than processes of the nation state need to be retracted. There are now more than 200 reexamined in the light of these new hugely different nation states, with challenges. It is nation state powerless different legal and regulatory systems, before this new global economic system existing in the world. In this context, we ?As electronic commerce grows, there is define a nation state as a coherent territory some risk that those nation states that have circumscribed by defined borders over not fully embraced the changes could which the single national government has become marginal to the creation of legitimate jurisdiction. During its 200 year economic value and electronic economy? history, the nation state has endured many Could the changes erode the individuals changes. However, the advent of the sense of national belonging, undermine tax
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 bases, bypass national laws and undermine • The untapped get tapped. Two highly the rights of citizens? touted markets $509 million health and Benefits of e-commerce on Economy: beauty, and $513 million grocery still lag The benefits of e-commerce on behind expectations. economy are classified into three groups: • More "click and mortar." Traditional firms, prices, productivity. A combination retailers Circuit City, Crate and Barrel, of technological and market forces have Sears, Toys R Us, Wal-Mart, and compelled companies to examine and Federated Department Stores missed the reinvent their supply chain strategies. To boat in 1995 and 1996, but rest assured stay competitive, firms have searched for they "get it" now, and are attempting re- greater coordination and collaboration entry, this time around with more money among supply chain partners to wring out and smarts. Watch out. the inefficiencies that might exist within Brand extension strategy in E- firm transactions. Many of the transactions Commerce domain: can be done externally, via electronic Brand Extension is a wonderful markets. The Internet and its applications way to achieve business growth by have thus served to enhance the process to exploiting the untapped equity of a brand increase efficiencies in supply chain to enter new product categories. A well- management The available empirical executed brand extension strategy can lead evidence on price is mixed. Some of the to several benefits- increased brand first studies found that prices of goods sold visibility and consumer connections, through the Internet were on average incremental shelf space at retail, entry into higher than their equivalent purchased new distribution channels and enhanced through traditional retailers. A more recent brand associations. study, however, found prices for books Research indicates that brand and CDs on average to be about 10 per extensions of existing brands are five cent lower on the Internet compared with times more successful than launching a traditional retailers in the United Most new brand. By setting up positive importantly, productivity increased not consumer expectations about performance only in the information and and better retailer focus due to the communication producing sectors but in anticipated consumer demand, brand sectors of the economy that do not produce extensions reduce the risk of failure. Also information and communications from a marketing perspective, it is easier technology . In other words, users of these to focus on just the new product rather technologies also benefited from increased than creating awareness for both the new productivity. Effects of e-commerce on brand and the new product. Thus, overall, international trade and employment brand extension can be a very effective Electronic commerce offer important brand and business growth strategy. opportunities to both developing and However, a significant proportion developed countries. The development of of brand extensions are unsuccessful and e-commerce is likely to have both direct thus it requires careful analysis to and indirect impacts on international trade determine the right categories for as well as the labor markets. extension as well as the approach to enter Major Hypothesis: those categories. • Women take control. Women make or Some key things to consider while influence 80 percent of household sales in evaluating the categories for extension: the United States, according to Woman •Existing brand associations and imagery Trend, despite the fact that they make up need to have a good ‗fit‘ with the proposed 51 percent of the population. categories. For example, Horlicks‘ brand extension into noodles did not find success
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 in the Indian market due to the brand‘s extend into non-core categories and grow strong association with health (rather than their brands. taste, which is critical for the snacking The right brand extension approach category). could be determined using the following •It is easier to extend a brand with abstract factors: associations into multiple categories. For •Product development capabilities: example, the brand Porsche has been Entering a new category could involve successfully extended into several significant investments in product design, unrelated categories such as eyewear, development and manufacturing luggage, watches, electronics etc. due to its infrastructure. In such cases, a brand abstract association with style and design licensee with product expertise relevant to rather than just sports-car expertise. the new category could be better suited to •The proposed extension must offer a clear manage the brand extension while the differentiation from the competitors while brand owner maintains control over the staying true to the brand‘s core values and brand image through a rigorous approval equities. For example, Godrej Consumer process. Products (GCPL) recently launched a •Size of the category: In some cases the premium hair-colour range in India under market size of the proposed category for the salon brand BBLUNT. With its brand extension is quite small and services expertise, a cool and funky image unattractive for the brand owner to invest along with a strong foothold in Bollywood, their own time and resources which could the brand extension offers a strong be better utilized in the expansion of the differentiation in a segment dominated by core business. In such cases, the brand international brands. licensing approach could be better suited. •Size of the proposed category and degree •Distribution channels: Sometimes the of saturation should be assessed to brand extensions are better suited to be determine the chances of success. It is sold through channels which are not being relatively easier for a new entrant to reached by the brand owner with their core sustain and thrive in a large category. products. In such cases, a brand licensee •Some categories are fragmented and have with an existing distribution network in the no major players with significant market new category is critical to achieving faster shares. This could present an attractive retail placement, wider distribution and opportunity for brand extensions. hence better results. After short listing the categories, Brand extensions can be a significant the brand owner needs to evaluate the right boost to your company‘s bottom line but approach to enter those categories. One only if you choose the right categories as approach is for the brand owner to well as the right brand extension approach. manufacture and market these products Implementation Post analysis : themselves. An alternative approach is for As communications costs continue the brand owners to allow another to fall, the potential for international company to produce and market these outsourcing grows. As a result, products and in return for the use of their outsourcing management and production brand, charge the manufacturer a royalty activities will become more important. fee. Such an arrangement is called brand Obviously, some sectors and activities licensing and can be a very lucrative yet throughout the world are more prone than low-cost and low-risk brand development others to be affected by developments in e- strategy. Several global brands including commerce. In this respect, there have been Philips, Honeywell, DuPont, Armani, attempts to identify industries or sectors Versace, Calvin Klein and Ferrari have that may be more predisposed to the embraced the brand licensing approach to
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 effects of developments in e-commerce researchers find that exports of services to and technology. the United States grew more quickly for For example, a research, based on countries with greater internet penetration criteria that weighed the effect of cost in a sample of 31 middle and high-income savings, increases in productivity, industry countries. Developing countries with readiness and product fitness to e- higher Internet penetration export more to commerce, has elaborated an index of high-income countries than do developing Internet intensiveness. The finding based countries where penetration is lower. on data from the United States and Europe However, they do not appear to export suggests that the most internet intensive more to other developing countries and sectors are electronic components, food, high-income countries with greater pharmaceuticals and forest/paper products. Internet penetration do not appear to It is likely to expect that in other regions, export more to either developing or these same sectors and industries will be developed countries. These results make affected by e-commerce via outsourcing. intuitive sense. First, Internet access is so At the same time, recent evidence suggests common among manufacturing enterprises that transnational corporations are likely to in high-income countries that the be the most intensive users of electronic differences in the number of internet users commerce. The potential benefits from as a percent of the population probably international e-commerce to a developing reflects differences at the consumer, rather country arise from a reduction in the cost than the enterprise, level in developed of imports as much as from an increase in countries. In developing countries, the price received for exports. contrarily, many manufacturing enterprises Several recent studies have remain unconnected. Second, because suggested that trade also stimulates Internet access is less common in internet use. For example, a study suggests developing countries than in developed that the extent to which a country is countries, being connected to the Internet integrated into the global economy can would seem to be a greater advantage for play a role in its access to IT. Countries enterprises in developing countries with with greater contact, either via trade, respect to exporting to developed tourism, or geographical location, with the countries. Finally, because of strong outside world, are more likely to be regional differences in income, and taking advanced in digital technology than other into account the fact that most exports countries . Several recent studies have from developing countries to other asked whether internet use affects trade. developing countries will be within the For example, using data from 20 low and same region, communication costs will middle income countries in Eastern Europe presumably be greater for exports to and Central Asia, a research shows that distant developed countries than it would enterprises with internet connections be for exports to neighboring developing export more, as a share of their total sales, countries than enterprises without connections. In Conclusion: addition, using a gravity model of trade, Electronic commerce may have another research find that Internet use large economic effects in the future. appears to be significantly correlated with Internet commerce will change the face of trade after 1996, although it finds only a business forever. Moreover, e-commerce weak correlation in 1995 and 1996. The will change banking in 21st century. The same research also found that internet has e-commerce has affected the global a greater effect on trade in developing economy in many different ways. countries than it does in developed First of all, it has affected the countries. In a second paper, same information technology, and all the
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 economic sectors, all and above e- 4. Tkacz, Ewaryst; Kapczynski, Adrian commerce has enhanced the productivity (2009). Internet — Technical growth worldwide and here we are going Development and Applications. to discuss this impact, they are able to Springer. p. 255. ISBN 978-3-642- identify the number of qualified people 05018-3. Retrieved 28 March 2011. needed to advance their country‘s The first pilot system was installing in information economy or to calculate the Tesco in the UK (first demonstrated in amount of investments needed to provide 1979 by Michael Aldrich). business with access to the internet. 5. 1988 Palmer.C Using IT for Some countries are already competitive advantage at Thomson benefiting from the results, they are now in Holidays, Long range Planning Vol 21 opposition to benchmark their economies No.6 p26-29, Institute of Strategic with competitors internationally and there Studies Journal,London- Pergamon are many ways to accelerate the growth of Press [now Elsevier.B.V.] December productivity but the reason for this is 1988. rather controversial. Banks and financial 6. "E Commerce – Essays – services companies in the developing Hpandurang92". Study mode. countries will need to adopt online Retrieved 17 June 2013. payment system, to obtain e-trade finance 7. "Online shopping: The pensioner who and equity investment, tourism and its pioneered a home shopping internet incarnation is regularly cited as revolution". BBC News. 16 September one of the fastest growing e-commerce 2013. sectors. 8. Aldrich, Michael. "Finding Mrs The impact of e-commerce on Snowball". Retrieved 8 March 2012. developing countries could be even 9. "The Electronic Mall". GS Brown. 30 stronger than that on developed countries April 2010. Retrieved 17 June 2013. because the scope for reducing 10. "Tim Berners-Lee: WorldWideWeb, inefficiencies and increasing productivity the first Web client". W3. Retrieved 21 is much larger in the developing countries. December 2012. By cutting costs, increasing efficiency and 11. Geiger, Conrad. "NeXT Nugget reducing time and distance, e-commerce News". next.68k.org. Conrad Geiger. could become an important tool for Archived from the original on 8 development. September 2015. References: 12. "AppWrapper Volume 1 Issue 3 Ships" 1. https://www.statista.com/statistics/220 (press release). 177/b2c-e-commerce-sales-cagr- 13. "Attention Shoppers: Internet Is forecast-for-selected-countries/ Open". The New York Times. 12 2. Wienclaw, Ruth A. "E-Commerce." August 1994. Research Starters: Business, 2013. 14. Kevin, Kelly (August 2005), "We Are EBSCOhost, the Web", Wired, 13 (8) ezproxy.mga.edu/login?url=http://searc 15. "First Electronic Stamps Being Put to h.ebscohost.com/login.aspx?direct=tru Test". Sunday Business. 6 April 1998. e&db=ers&AN=89163657&site=eds- Retrieved 16 July 2013. live&scope=site. 16. Teriz, N (2011). "The impact of e- 3. Power, Michael 'Mike' (19 April commerce on international trade and 2013). "Online highs are old as the net: employment". Procedia - Social and the first e-commerce was a drugs Behavioral Sciences. 24: 745–753. deal". The Guardian. London. doi:10.1016/j.sbspro.2011.09.010. Retrieved 17 June 2013. Retrieved 2017-05-11.
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17. "eBay acquires PayPal". Investor. eBay. Retrieved 21 December 2012. 18. "Diane Wang: Rounding up the "Ant" Heroes". Sino Foreign Management. Archived from the original on 23 February 2012. Retrieved 3 September 2011. 19. "R.H. Donnelley Acquires Business.com for $345M". Domain Name Wire. Retrieved 4 September 2011. 20. "Amazon Buys Zappos; The Price is $928m, not $847m". TechCrunch. 22 July 2009. Retrieved 21 December 2012.
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RECENT TRENDS IN NEWSPAPER MARKETING
NEETA MANOHAR KEDAR DR. P. V. SATHE Research Scholar in Commerce, Professor in Commerce, Pune, Maharashtra. B. M. College of Commerce, Pune, Maharashtra
Abstract Newspaper has become a crucial part of any modern society. This is one of the most important consumer products of our daily life. Like all other consumer goods newspaper industry requires some special marketing efforts. The ever-changing newspaper industry provides publishers with many challenges. But the changes also give them the opportunity to be creative with how they market their newspapers. The main focus of this article is to describe the recent trends in marketing the newspaper. Keywords: Newspaper, Newspaper marketing Strategy, Promotional device, Reader Engagement.
Introduction: stories. Broadcast and cable channel Internet A newspaper is a serial publication sites often cover additional story angles and issued at frequent intervals and devoted frequently update content in close to real primarily to news. Newspapers are not only time. In contrast, a newspaper operates on the collectors of news but they have non-negotiable production deadlines that accounts of the activities of a country‗s limit the freshness of its content. This social, political, cultural activities with all reduced ability to provide current news, plus sourceful objectives. Modern newspaper is a readers' tendency to only view select history in pieces. It is a powerful report of newspaper sections, has helped drive a the daily life. The modern news for the sake decline in overall newspaper circulation. The of future reminds the lessons of past to marketing-mix is pressurizing the balance the present times. Newspaper in newspapers production houses to make modern times is much more interesting and changes in their management process and its fruitful publication in comparison to a noval attitudes. written and presented in visual form with Circulation and Advertising to a status full lifestyle.- Arvind Kumar (Ex. newspaper industry is what blood circulation Editor ‗Madhuri‗) is to a human body. These are the two main Most newspapers are issued daily or sources of income. But advertisement weekly. Some are published semi-weekly, income depends on the circulation of a and there have been rare example of newspaper. Circulation is the force that fortnightly and monthly newspaper. makes advertisements pay.So every Having correct and fresh news, articles and newspaper plans its strategy to increase their other information, which are to be informed circulation. They plan their product to meet to readers in a time frame of daily or weekly demands of customer or readers. schedule in printed folder is called Significance of marketing newspaper: newspaper. - Free News Dictionary The heart of your business success Newspaper Marketing: lies in its marketing. Most aspects of your Newspapers face unrelenting business depend on successful marketing. competition from other consumer The overall marketing umbrella covers information sources. Cable television advertising, public relations, promotions and provides 24-hour-a-day news along with in- sales. Marketing is a process by which a depth coverage of major events and news product or service is introduced and
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 promoted to potential customers. The other schemes. Full-page adverts appear each benefits of marketing newspaper are: week offering readers gifts such as free 1. Higher sales magazine subscriptions, or free cinema 2. Company reputation tickets to readers who subscribe. 3. Targeted Geographic Audience Reader engagement 4. Build trust The other main area of change is 5. Promotion of your business ‗reader engagement‘ marketing. Sponsorship 6. Enhanced brand recognition of events and festivals, exclusive reader 7. Improving the businesses profits by evenings, national competitions and awards boosting sales. ceremonies are increasing as newspaper Trends in newspaper marketing: Here are publishers seek to interact with their readers key trends in marketing newspaper to and achieve brand awareness for their prepare for in the coming year: papers. New promotional devices Partnership marketing There has been an increase in This brings on to the newest and promotions with financial incentives for the potentially largest area of opportunity, reader. This is a much more cost-effective partnership marketing. The reduction in promotion than having to buy and produce marketing spends is not confined solely to numerous free give-aways. The grocery newspapers - it has affected many industries. promotions have achieved some good uplifts This has started to open up true partnership in sales. opportunities whereby newspapers work These promotions have also led to a with brands to mutual benefit, for example new wave of substantial free product offers the Times with Pizza Express, News of the whereby the reader collects tokens in return World with Nails Inc, the Guardian with the for a high value or cutting-edge product such British Red Cross, and the Independent with as digital TV boxes, MP3 players and so on. the RSPB. Partnerships are starting to These offers have the advantage of locking develop whereby content, memberships and the reader in for a period of time and not just marketing are being genuinely jointly the one-off occasion of a cover-mounted developed between companies on an promotion. ongoing basis. However, though there are fewer Pairing contests cover-mounted give-aways, there is still a Newspapers have been pairing need to attract readers with product offers contests of different sorts with free and this is now increasingly achieved subscription of the newspaper for a period of through ‗Free for every Reader‘ offers that time for contest winners. Other than that, allow the reader to pick up a free product at they invite their current and potential a retailer or by post. advertisers to sponsor contests in exchange Locking readers in for publishing their company logos on the By far the biggest change in newspaper and on the newspaper webpage. newspaper marketing has been the Essay writing contests concentration on ‗locking readers in‘ via Newspapers have been sponsoring subscriptions, newsagent home delivery or essay writing contests on their own during direct home delivery. Once readers are special occasions (i.e. national holidays, locked into these schemes, there is a growing popular events, etc.) to boost readership by emphasis on readers‘ clubs – whereby loyal soliciting essay entries from their target readers are offered a raft of exclusive offers market, and publishing these essays on to keep them subscribing.. scheduled dates to encourage people to buy There is also a very aggressive marketing copies of the newspaper. campaign in the quality press to get readers In-house print advertisements to subscribe to up-front subscriptions
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Newspapers publish in-house print insert, an August ―Back to School Guide‖ or advertisements in two ways: corporate ad a November ―Holiday Gift Guide.‖ and testimonial ad Example of a testimonial Communities that strongly support high ad would be a newspaper featuring a school sports may embrace a football- supposedly real-life story of a real estate focused insert appearing just prior to the agent sharing his/her success story with her football season. Small-market newspapers occupation with the help of the concerned can also publish monthly inserts showcasing newspaper‘s paid or free promotion of regional attractions and events. Health- his/her real estate job. focused publications often feature articles Social networking written by local health practitioners, along Newspapers have been actively with adjacent advertisements for those pursuing social networking by inviting their practices. Inserts of all types may offer readers to post comments and questions attractive ad rates to encourage new online and making their newsroom staff and advertisers or to entice existing clients with editorial members to send feedback in the multi-issue discounts. hope of boosting interaction with them, and Graphics and Consulting Services in the process creating virtual relationships Many newspapers employ talented between the newspapers and the public. graphic designers who use powerful graphics Providing freebies programs to create visually stunning print Newspapers have been providing and online ads. The newspaper can minimize freebies to its area distributors (newspaper designers' down time by marketing turnkey bulk outlets and retail stores) by handing out graphics design and production capabilities give-away promotional items like pens, to local businesses. Finished products can umbrellas, caps, T-shirts, jackets, mugs, include fliers, brochures and other company- stationery, etc. with the newspapers‘ logo specific promotional materials. Although printed on them. some current advertisers may use the Sponsoring and participating in live service, the newspaper will also appeal to events non-advertisers by offering attractive prices. Newspapers have been sponsoring A newspaper's Internet advertising expert and participating in live events, TV sports can enhance the package with website design shows, festivals, exhibits, conventions, and and online marketing components. other relevant affairs and use this approach cross marketing with other company Online Sponsorships participants to grow their readership base. Newspaper-operated websites market Include Readers online subscriptions to readers who receive Let readers in your community put news via Smartphone or other electronic themselves in the newspaper. A chance to medium; or to readers who live in other express their opinions through letters to the states or countries. Local readers may also editor was a noble start. Take it a step further visit the website often for breaking news by allowing readers to become the reporter. updates. While many businesses place full- Offer them a chance to submit their own color online advertisements, some out-of- photos and news stories, giving them the-box advertiser‘s sponsor frequently incentive to purchase a handful of copies and viewed online features. For example, a tell others about your paper. coastal newspaper's readers often monitor Special Sections weather forecasts, especially during Many resourceful small-market hurricane season. A disaster restoration newspapers have launched themed special company would likely receive increased sections that appear within the larger visibility by sponsoring the weather forecast newspaper. These folded tabloids may and hurricane map. Likewise, a funeral home include an early June high-school graduation would likely benefit by sponsoring the
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 newspaper's obituary page. Encourage ad promotional opportunity. Skilled salespeople reps to emphasize the synergy of advertiser make survey calls to customers to gather focus and online content as a way of information that can later be used for encouraging new sponsorships. marketing by asking questions relating to the Smart phones way the customers feel about the newspaper. Smart phones are commonly used Conclusion: nowadays. Every person has access to Successful marketing requires us to smartphones. Smartphone are small portable not only know what customers want to buy, devices used for communication with but also how they want to buy. We need to additional functionality of cameras, music double our efforts to make sure we are players etc. Mobile cameras are the main providing the options and capabilities source of live reporting and mobile customers expect from any business. To do journalism now. anything less, is to negate the benefits gained Newspaper Kiosks from understanding customers, creating Newspaper businesses can establish products that fulfill their needs and kiosks in well-traveled areas like shopping marketing smart. Hence, effective marketing malls, post offices or train stations as a strategies help to increase readership and marketing strategy. Kiosks can sell current newspaper business in competitive world. copies of the newspaper, but also provide References: customer services, such as subscription 1. Aleesha Patel, (2010), ―The Survival of renewals, address changes and classified ad the Newspaper in the Digital Age of sales. Marketing tactic can include selling Communication‖, Published by Leonard branded goods including canvas bags, hats N. Stern School of Business, New York or coffee cups emblazoned with the University. newspaper logo. 2. Rahmani, H. Mujaviri and A Allah Branded Promotional Gifts Baksh (2012), ―Reviewing the impact of Giving away functional branded gifts advertising and sales promotion on brand can be a more effective promotional move. with‖, the Journal of Business Studies Ink pen, key chain or calendars are gifts you Quarterly, Vol. 4., No. 1. can give your customers that they may use, 3. Hooley, G., Piercy, Nigel F., and which keeps your newspaper in plain sight. Nicoulaud, (2009). Marketing Strategy Customer Appreciation Events and Compatitive Positioning (4th ed.). Emphasis, on customer appreciation Delhi: Pearson Education. event with free refreshments and door prizes 4. Baack, K. E. (2009). Integrated will attract customers, with no purchase of Advertising, Promotion, and Marketing anything necessary, is an effective way to Communications (3rd ed.). Delhi: draw not only current customers but also Pearson Education. potential customers. 5. Cooper, D. and Schindler Pamela, After-Sale Customer Surveys (2007). Marketing Research: Concepts Contacting customers by telephone and Cases (2007 ed.). New Delhi: Tata or through the mail after a sale is a McGraw Hill. promotional strategy that puts the 6. Strauss Judy and Frost Reymond, (2012). importance of customer satisfaction first E- Marketing (6th ed.). New Delhi: PHI. while leaving the door open for a
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BASIC CONCEPTS OF GOODS AND SERVICES TAX IN INDIA
SUPRIYA UTTAM JADHAV M.Phil.Scholars, C.D Jain Collage of Commerce, Shrirampur, Maharashtra.
Abstract This paper is an analysis of what the impact of GST (Goods and Services Tax) will be on Indian Tax Scenario. Here stated with a brief description of the historical scenario of Indian taxation and its tax structure. Then the need arose for the change in tax structure from traditional to GST model. GST has be detailed discuss in this paper as the background, silent features and the impact of GST in the present tax scenario in India. The Goods and Services Tax (GST) is a value added tax to be implemented in India, the decision on which is pending. GST is the only indirect tax that directly affects all sectors and sections of our economy. Ignorance of law is no excuse but is liable to panel provisions, hence why not start learning GST and avoid the cost of ignorance. Therefore, we all need to learn it whether willingly or as compulsion. The goods and services tax (GST) is aimed at creating a single, unified market that will benefit both corporate and the economy. The changed indirect tax system GST-Goods and service tax is planned to execute in India. Several countries implemented this tax system followed by France, the first country introduced GST. Goods and service tax is a new story of VAT which gives a widespread setoff for input tax credit and subsuming many indirect taxes from state and national level. The GST Implementation is not yet declared by government and the drafting of GST law is still under process and a clear picture will be available only after announcement of Implementation. India is a centralized democratic and therefore the GST will be implemented parallel by the central and state governments as CGST and SGST respectively. The objective will be to maintain a commonality between the basic structure and design of the CGST, SGST and SGST between states .In this article, I have started with the introduction, in general of GST and have tried to highlight the objectives the proposed GST is trying to achieve. Thereafter, I have discussed the possible challenges and threats; and then, opportunities that GST brings before us to strengthen our free market economy. Key Words: GST, CGST, SGST, VAT, INPUT CREDIT
What is Tax? the Central Government and the State The word tax is derived from the Governments. Some minor taxes are also Latin word ‗taxare‘ meaning to estimate. A levied by the local authorities such as tax is not a voluntary payment or donation, Municipality or Local Council. The authority but an enforced contribution, exacted to levy tax is derived from the Constitution pursuant to legislative authority" and is any of India which allocates the power to levy contribution imposed by government various taxes between Centre and State. whether under the name of toll, tribute, Definition of GST: impost, duty, custom, excise, subsidy, aid, ―GST is a tax on goods and services supply, or other name.‖In 1922, the country with value addition at each stage witnessed a paradigm shift in the overall having comprehensive and continuous chain Indian taxation system. Setting up of of set of benefits from the producer‘s or administrative system and taxation system service provider‘s point up to the retailers was first done by the Britishers. Broadly, level where only the final consumer should there are two types of Taxes viz. Direct and bear the tax.‖ Indirect taxes. Taxes in India are levied by
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Objectives of GST: 6. In the GST system, when all the taxes 1. One Country – One Tax. are integrated, it would make possible 2. Consumption based tax instead of the taxation burden to be split equitably Manufacturing. between manufacturing and services. 3. Uniform GST Registration, payment and 7. GST will be levied only at the final Input tax Credit. destination of consumption based on 4. To eliminate the cascading effect of VAT principle and not at various points Indirect taxes on single transaction. (from manufacturing to retail outlets). 5. Subsume all indirect taxes at Centre and This will help in removing economic State Level under. distortions and bring about development 6. Reduce tax evasion and corruption. of a common national market. 7. Increase productivity. 8. GST will also help to build a transparent 8. Increase Tax to GDP Ratio and revenue and corruption free tax administration. surplus. 9. Presently, a tax is levied on when a 9. Increase Compliance. finished product moves out from a 10. Reducing economic distortions. factory, which is paid by the GST Advantages and Disadvantages: manufacturer, and it is again levied at the The GST is a Value added Tax retail outlet when sold. (VAT) is proposed to be a comprehensive 10. GST is backed by the GSTN, which is a indirect tax levy on manufacture, sale and fully integrated tax platform to deal with consumption of goods as well as services at all aspects of GST. the national level. It will replace all indirect GST Disadvantages: taxes levied on goods and services by the 1. Some Economist says that GST in India Indian Central and State would impact negatively on the real governments. Though GST is considered to estate market. It would add up to 8 be a historical tax reform in India, it also has percent to the cost of new homes and some demerits. We here would look into reduce demand by about 12 percent. GST Taxation and deal with its advantages 2. Some Experts says that CGST (Central and disadvantages. GST), SGST (State GST) are nothing but GST Advantages: new names for Central Excise/Service 1. GST is a transparent tax and also reduces Tax, VAT and CST. Hence, there is no number of indirect taxes. major reduction in the number of tax 2. GST will not be a cost to registered layers. retailers therefore there will be no hidden 3. Some retail products currently have only taxes and the cost of doing business will four percent tax on them. After GST, be lower. garments and clothes could become more 3. Benefit people as prices will come down expensive. which in turn will help companies as 4. The aviation industry would be affected. consumption will increase. Service taxes on airfares currently range 4. There is no doubt that in production and from six to nine percent. With GST, this distribution of goods, services are rate will surpass fifteen percent and increasingly used or consumed and vice effectively double the tax rate. versa. 5. Adoption and migration to the new GST 5. Separate taxes for goods and services, system would involve teething troubles which is the present taxation system, and learning for the entire ecosystem. requires division of transaction values India GST – The difference between into value of goods and services for CGST, SGST and IGST taxation, leading to greater CGST, SGST and IGST are three complications, administration, including components of GST tax law. CGST and compliances costs. SGST are applicable within the state while
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IGST is applicable in the course of interstate The The trade and commerce. Let us understand the dealer dealer difference between the trios, can use can use Composi Basis of the the tion Central State Integrat Distinctio benefit benefit scheme GST GST ed GST n Composit of of is not It is ion composit composit applicabl It is It is a levied by Scheme ion ion e in the levied by combine State scheme scheme course of Central d form of governm up to up to interstate governm CGST ent to turnover turnover supply. ent to and replace of 50 of 50 replace SGST the lakh. lakh. Meaning the levied existing Applicab Applicab existing and Applicab tax like Free le on le on tax like collected le on free sales tax, Supplies free free service by supplies luxury supplies supplies tax, Central tax, No No excise, governm entry registrati registrati etc ent. Registrat tax, etc. on till on till ion It is the the mandator It is It is applicabl turnover turnover Registrat y if any applicabl applicabl e only in crosses crosses Applicab ion supply is e only e only the 20 Lakh 20 Lakh ility made within within course of (10 Lakh (10 Lakh outside the state the state interstate in north in north the state. supply. eastern eastern The states). states). The The credit of credit of credit of CGST, THE IMPACT OF GST (GOODS AND SGST is IGST is is SERVICES TAX) IN INDIA Input available available available After a lot of deliberation, our GST Tax only against only council has finalized the rates for all the Credit against CGST, against goods and major service categories under SGST SGST CGST various tax slabs, and the GST is expected to and and and fill the loopholes in the current system and IGST IGST. IGST boost the Indian economy. This is being It is It is done by unifying the indirect taxes for all It is collected collected states throughout India. collected Collectio by by The tax rate under GST are set at 0%, by State n of tax central central 5%, 12%, 18% and 28% for various goods governm governm governm and services, and almost 50% of goods & ent ent ent services comes under 18% tax rate. But how The The is our life going to change post GST. Let‘s exempti exempti No see how GST on some day-to-day good and on limit on limit exemptio services will have an impact on an end user‘s Exemptio of Rs.20 of Rs.20 n limit is pocket. n limit Lakh is Lakh is applicabl 1) Footwear& Apparels/Garments: applicabl applicabl e. Footwear costing more than INR 500 will e e have a GST rate of 18% from an earlier rate
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 of 14.41 rate but rates for the footwear around 2% in most of the states and the GST below INR 500 has been reduced to 5%. So, is increased from the existing rate to around you need to shell out more for buying a 2% to 3%. footwear above INR 500/-. And with respect 9) Buying a Property: Under construction to the ready-made garments, the rates have properties will be cheaper than read-to- been reduced to 12% from an existing move-in properties. The GST rate for an 18.16% this will make them cheaper. under-construction property is 18% but the 2) Cab and Taxi rides: Now, taking an Ola effective rate on this kind of property will be or an Uber will be cheaper because the tax around 12% due to input tax credits the rate has come down to 5% from an earlier builder will avail of. 6% for a cab booking made online. 10) Education& Medical Facilities: 3) Airline tickets: Under the GST, tax rate Education and Medical sectors have been for economy class for flight tickets is set at kept outside the GST ambit and both the 5% but the tax for business class tickets will primary education & healthcare is exempt have a higher tax rate of 12%. from GST. It means a consumer will not pay 4)Train Fare: There will not be much of an any tax for the money you spent on these impact. The effective tax rate has increased services. But due to increase in the rate of from 4.5% to 5% in GST. But, a passenger taxes for certain goods & services as who travels for business trips can claim procured by these organizations, they may Input Tax Credit on their rail ticket which pass on the additional tax burden to the can help them to reduce expenses. People consumers. travelling by local trains or in the sleeper 11) Hotel Stay: For your hotel stay, if your class will not be affected, but first-class & room tariff is less than Rs 1,000, then there AC travellers will have to pay more. will be no GST, but anything above Rs 5,000 5) Movie Tickets: Movies tickets costing will attract 28% tax. below INR 100 will be charged a GST rate 12) Buying a Car: Most of the cars in the of 18% but prices above INR 100 will have a Indian market will become slightly cheaper, higher tax rate of 28%. except for the hybrid cars because the GST 6) Life Insurance Premium: The Premium rate will be 28% tax on all the vehicles Amounts on policies will rise, with an irrespective of their make, engine capacity or immediate impact can be seen on your term model. However, over and above this 28%, and endowment policy premiums as the rates an additional cess will be levied which can have been increased under GST across life, be either 1%, 3% or 15 %, depending on the health and general insurance. particular car segment. 7) Mutual funds Returns: GST impact on 13) Mobile Bills: People will have to pay your returns from mutual funds‘ investments more on mobile phone bills as GST on will largely be marginal as the GST will be telecom services is now 18%, as opposed to charged on the TER i.e. Total Expense Ratio the earlier tax rate of 15%. However, of a mutual fund. The TER is commonly telecom companies may absorb this 3% rise called as expense ratio of a mutual fund due to fierce competition. company, and the same is set to go up by 14) Restaurant Bills/EATING OUT: Your 3%. The return what you get as an investor restaurant bill would depend on whether you will be reduced to that extent unless the dined at an AC or Non-AC establishments respective mutual fund company i.e. AMC which do not serve alcohol. Now dining at absorbs it but that anyhow will be a marginal five-star hotels will be charged at 18% GST difference. rate and the Non-AC restaurants will be 8) Jewellery: The gold investment will charged 12% and a 5% GST will be charged become slightly expensive because there will from small hotels, dhabas and restaurants be 3% GST on gold & 5% on the making that do not cross an annual turnover of INR charges. The earlier tax rate on gold was 50 Lakh.
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15) IPL & other related events: Events like boost overall growth. GST will create a IPL i.e. sporting events will have a 28% single, unified Indian market to make the GST rate which is higher than the earlier economy stronger. Experts say that GST is 20%.rates. This will increase the price of likely to improve tax collections and Boost your tickets. And the GST rate for other India‘s economic development by breaking events like theatre, circus or Indian classical tax barriers between States and integrating music shows or a folk dance performance or India through a uniform tax rate. Under a drama show will be at 18% GST rate, this GST, the taxation burden will be divided is lesser than the earlier tax rate. equitably between manufacturing and 16) DTH and cable services: The money services, through a lower tax rate by you pay towards your DTH (Direct-To- increasing the tax base and minimizing Home) connections or to your cable operator exemptions. will reduce a bit as the rate is fixed at 18%, References which is lower than the earlier taxes which 1) http://goodsandservicetax.com/gst/showt were comprising of entertainment tax in the hread. range of 10% to 30%, apart from the service 2) http://en.wikipedia.org/wiki/Goods_and_ tax of 15%. Services_Tax_(India) accessed on 15 Jan CONCLUSION 2014. GST is the most logical steps towards 3) http://www.taxmanagementindia.com/vis the comprehensive indirect tax reform in our itor/de country since independence. GST is liveable 4) http://www.gstindia.com/http://www.thehi on all supply of goods and provision of ndubusinessline.com/todays-paper/tp- services as well combination thereof. All others/tp- taxation/article2286103.ece sectors of economy whether the industry, 5) http://economictimes.indiatimes.com/top business including Govt. departments and ic/GST service sector shall have to bear impact of 6) http://www.moneycontrol.com/news- GST. All sections of economy viz., big, topic/gst/ medium, small scale units, intermediaries, 7) http://www.business- importers, exporters, traders, professionals standard.com/article/economy- and consumers shall be directly affected by policy/gst-reform-may-be-implemented- GST...One of the biggest taxation reforms in after-elections-ubs- India -- the Goods and Service Tax (GST) -- 114011200205_1.html is all set to integrate State economies and
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A FUTURISTIC STUDY OF E-BUSINESS MODEL WITH REFERENCE TO ALL TRANSPORT INDIA PVT. LTD., DEOLA
DR. SUBHASH WADEKAR Principal, Hon. Balasaheb Jadhav Arts, Commerce and Science College, Ale, Pune, India.
Abstract Today is the world of changing era, with modern changes in trends, education, technology and higher standard of living changing customer‟s need and preference, their high expectations for new and improved products have enforced the companies to bring new, modern and superior products in the market. For this every company must establish and evaluate new products development ideas and strategies. For the same researcher was inspired to study and analyze the e-Business online Model in transportation and factor that attracts transport customers for this e–Business online model. The main focus of the study was on Transportation Business, the model or Modes used of generating business. As transporting is main importance in daily routine for any goods, human from one place to another place Ensures that time needed for transporting should be minimum with least cost. There are many people using the internet for all sort of any small work. Study was carried out using gap analysis regarding current transportation method used for different modes with new innovative ideas so as to keep pace with today‟s changing marketing environment. The study is based on Secondary data and primary survey carried for Transporters in Deola tahsil of Nashik district to Study the e-Business online model of All Transport India Pvt. ltd. It was found that e-Business Transport model worked for the company and looking to explore for other regions too. Keywords: - E-Business, model, Transport, Road, Railway
1) INTRODUCTION 3) Pipelines From the ancient Days, for Progress of 4) Waterway society there was an urge identified through 5) Airway human sensitivity for mobility i.e. transports. Importance of Transport: Transport is vast This ancient history of mobility or transport mechanical in current scenario. The main is the history of civilization. A basic stream line of our economy is comprised infrastructure is a need for any country to from with Transportation routes and develop better momentum with modern and channels. They serve as a bridge to bring efficient Transport. Proper, extensive and producers and consumers of goods nearby. efficient Road Transport is the main factors The transport or logistics boost the for better history of any nation. economic, social and cultural life. All ‗Transporters' perform one of the most Transport India pvt ltd ( www. important functions for any nation, at alltransportindia.com) is an online transport various stages of advanced civilization. In search service engine that helps to find which roads are similar to as veins and proper transit system quickly, conveniently arteries of any nation, goods & passenger and cost effectively for fulfil all needs of transported are compared to blood in transporting and travelling .this service circulation. facilitate all requirements of individual to Modes of Transport: Transportation is corporate to get common platform, thus ―the generally divided into five modes- way ‗comes to you. Visitor to the site get a 1) Roads unique experiment through a systematically 2) Railways search and comprehensive local and regional
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 content. They studied that all people didn‘t a) Do you know E- transport business get proper transportation & travelling model? system, and even lack of correct information, Table No.1 people are losing money and time. So, Respondent Percentage Shewale Brothers identified difficulties of Yes 30 75% people and they got intuition of unique and NO 10 25% different Idea .So they launch solution by Total 40 100% ―www. alltransportindia.com‖. Where the Interpretation:-The 75 % people are people gets common platform to interact aware about E-Transportation business with each other for purpose of transportation model and 25 % are not. and travelling. By doing so the company still b) How do you know about E- transport had some lacunas like business model? Total travelling (Transport) data was Table No.2 not gathered. Source Respondent Percentage Marketing was not enough to create Newspaper 8 26% awareness of Model. Friends 10 32% Proper information flow to customer Banner & 5 16% was not clear. Hoardings The researcher indentified the above Internet 8 26% problems and did the study to find solution Total 30 100% for the problems. Interpretation- 32% people are Aware about 2) OBJECTIVES OF THE STUDY E- transport business model through friends,
1. To understand the current E-business 26% get the information through news model. paper, Other 26% through Internet. So
2. To find the awareness of E-business for Banners and Hoardings are not that Effective transport in deola. as only 16% respondents. 3. To identify factors that attracts transport c) Which type of transporting vehicle do for this E – business model. you have? 3) METHODOLOGY Table No.3 Exploratory research Design: It was Respondent Percentage used to explore the facts and identify Human 10 33% solutions related to above problems. Primary Careers Data was collected by questionnaire and secondary data through Newspapers. Goods 20 67% Magazines, Text books, marketing reports of Career the company, Internet. Total 30 100% DATA SOURCE: RTO office, travelling agency, Transporting Company. Interpretation- 67% of respondents have UNIVERSE:- goods career while 33 % have human career 1) The data of universe RTO office vehicles, so scope for Transportation 2) Travelling Agency Business in goods career is more. 3) Transport company d) How many Transportation vehicles do FRAME:-The Frame of this project is to you have? ―All Vehicle owner in DeolaTaluka. Table No.4 SIZE: - The sampling size of data 40 vehicle Vehicle Respondent Percentage owner 1-5 5 17% METHOD: - Judgmental Sampling Method 5-10 15 50% is used to select the sample. 10-15 10 33% 4) DATA ANALYSES Total 30 100%
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Interpretation- 50% of respondent have situation, while 17% receive 1 or 2 orders in transporting vehicle owned between 5-10 a week. On average 3 or 4 orders are only 17% respondent have less than 5 received in a week. vehicles. So, major respondents who are in h) If you receive an order through E- transportation business have more than 5 business then are you interested? vehicles. Table No.8 e) Maximum order you received from Respondent Percentage below location? Yes 25 83% Table No.5 No 5 17% Locations Percentage Total 30 100% Village 24% City 28% Interpretation-83% respondents would be Local Areas 36% happy if they receive order through E- Metro City 12% transport business model, while remaining Total 100% 17% would not. Interpretation-36 % of respondent receives i) How many order do you are expect maximum order from local areas, while 28 through E- business model in a week? % receives from city, 24% from villages and Table No.9 only 12% from Metro city. So it interprets Vehicle Respondent Percentage that maximum orders are from Known Order nearby locations only. 3 4 16% f) Rank the mode of receiving order? 4 6 24% Table No.6 5 7 28% Order Rank 6 8 32% Mode Total 25 100% Telephone 1 Friends & 2 Interpretation- 32% of the respondent relatives expect maximum 6 orders in a week through Transport 3 the E-business , while 28% expect 5 orders, Agency 24% expect 4 orders and remaining 16% Internet 4 expect minimum 3 orders in a week. On an average 5-6 orders in a week through the E- Interpretation-The respondents rated the Business Model. mode of receiving order as telephone order j) Do you know any other company given 1st rank, Friends and relative 2nd, having E-business transportation model? Transporting agency 3rd, Internet 4th. Table No.10 g) How many order do you receive in a Respondent Percentage week? Yes 5 20% Table No.7 No 20 80% Vehicle Respondent Percentage Total 25 100% Order 1 5 17% Interpretation-80 % of the respondents don‘t 2 5 17% know about any other company having E- 3 10 33% business transporting model, while 20% feel 4 10 33% they know other company providing the Total 30 100% same. k) Do you want to be member of this Interpretation-33% of the respondents model? receive 3 or 4 orders in a week in current Table No.11
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Respondent Percentage Agree 6 20% Yes 20 80% NIL 5 25% No 5 20% Disagree 3 15% Total 25 100% Strongly 2 10% Disagree Interpretation-80% of the respondent wants Total 20 100% to be member of E-business plan for transportation business, while remaining Interpretation-40% of the respondent 20% oppose the same. agree that they are satisfied with the E- l) Why would you like to Purchase this business model and its services, while 25% model? fell changes or modification should be done Table No.12 as the Disagree., while remaining 25% are Respond Percent not sure that they disagree with the statement ent age of satisfaction about the E-Business model Save 9 48% and its plans. Time 5) FINDINGS Save 11 52% 75% people are aware about E-transport Mon business model. ey 32% people are aware about E-transport Tota 20 100% business model by friends recommends. l 67% people prefer goods careers for transporting vehicle. Interpretation- 52% of the respondents From above only 36% people have would like to purchase the model for saving maximum order from local areas. money, while 48% for saving time. Saving 83% people are interested receive an time and money are the reason respondent order through E-business model. want to purchase the E-Business Model 80% people are interested and purchased plans. this E-business model. Existing 20 Customers after two Weeks: 30% people are agree that no. of orders m) Are you interested in renewal of this received through E-business model. model? 6) CONCLUSION Table No.13 The company are providing for the Respon Percent fast services in the Deola District. This dent age company serves a E-commerce model which Yes 15 75% emphasis by collecting and displaying the No 5 25% details of registered vehicle owner. This Tot 20 100% Online transport service acts as a search al engine for the customer which percolates the data at the tips of finger. This result to Interpretation-75% of the respondents are enhance the system quickly, conveniently, happy to renew the E-business model, while transpired and most cost effectively. This 25% are not sure. Maximum Customers are online service facilitates the requirements of happy to renew the model. both individual and corporate customers in n) Are you satisfied with no of orders single platform. The visitor‘s experiences received through E-business model? unique feel through this online transport Table No.14 model for searching local and regional Source Respondent Percentage transporters. The present model version Strongly 4 20% provides a good starting point for future Agree development. 7) SUGGESTIONS
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1. 25 % people unknown about E-transport edition), Published by Dorling business model so that awareness of Kindersley (India) Pvt. Ltd., licenses of internet by giving Advertisement, Pearson Education in South Asia, Delhi, Newspaper, TV. pp 395-400 2. Only 16% people are known about E- 3. Bright, D.A., Coedy, B., Dushenko, business model through Banner& W.T. & Reimer, K.J. 1994. Arsenic Hording but whenever the awareness of transport in a watershed receiving gold internet increased that time affect on E- mine effluent near Yellowknife, Canada. transport business model. Total. Environ. 155, 237-252. 3. 33% people use Human careers but to reduce human effort there can be need Research papers: for goods career so that upgraded 1. Blanke, J. and T. Chiesa. 2007. ―The technology used instead of human career. Travel Competitiveness Index: Assessing 4. From the above data only 12% people Key Factors Driving the Sector‘s minimum order received from metro city Development.‖ In The Tourism so that time company need to appointed Competitiveness Report 2007: sales executive. Furthering the Process of Economic 5. 17% people are not interested in E- Development. Geneva: World Economic. business so to increase and provide SMS, 2. ―The Tourism Competitiveness Index online skim and attract the customer for 2008: Measuring Key Elements Driving business. the Sector‘s Development.‖ In The 6. 20 % people are not using E-transport Tourism Competitiveness Report 2008: business model so Awareness about Balancing Economic Development and model is needed like more order given, Environmental Sustainability. Geneva: save time, save money, not found to World Economic Forum. 3–26. customer. 3. Blanke, J., T. Chiesa, and E. Trujillo 7. 10% people are strongly disagree so that Herrera. 2009. ―The Travelling disagree customer into agree so Competitiveness Index 2009: Measuring providing offline facility, company Sectoral Drivers in a Downturn.‖ In The online application, online skim to so Tourism Competitiveness Report 2009: converted the vehicle owner. Managing in a Time of Turbulence. Geneva: World Economic Forum. REFERENCES Bibliography: Websites: Books and articles: 1. www.transporting company.com 1. C. R. Kothari, (2008), Research 2. www.google.com Methodology, New Age International 3. www.alltransport india.com Publishers, Delhi, pp 2-20, 31-52, 95- 4. Transportation from UCB Libraries Gov 112. Pubs 2. Philip Kotler and Kevin Lane Keller, (2007), Marketing Management (12th
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IMPACT OF GOODS AND SERVICES TAX ON INDIAN ECONOMY
DR. DEEPAK K. SURVASE Asst. Professor, Dept. of Commerce S.B.B.alias Appasaheb Jedhe College, Pune, Maharashtra.
ABSTRACT The introduction of Goods and Services Tax (GST) would be a very significant step in the field of indirect tax. The cascading or double taxation effects could be reduced by combing many central and state taxes. Consumer‟s tax burden will approximately reduce to 25% to 30% after introduction of GST. After introduction of GST Indian products would became more competitive in the domestic and international markets. This tax would instantly encourage economic growth. GST with transparent feature will prove easier to administer. In this paper I try to attempt to spot the concept of GST & its current status in India. Paper gives information about GST. The study also aims to be familiar with the advantages and challenges of GST in Indian scenario. Keyword - Goods and services Tax, Gross domestic products, Budget, Development, Tax
1. INTRODUCTION inflation in the economy, accordingly This large quantity of taxes at the making the Indian trade and industry more State and Central levels has brought about a competitive, locally and additionally complex indirect tax structure in the nation globally. It is likewise expected that that is ridden with concealed expenses for arrangement of GST will encourage a typical the trade and industry. Firstly, there is no or consistent Indian market and contribute consistency of assessment rates and structure essentially to the development of the crosswise over States. Also, there is falling economy. of charges because of 'tax on tax'. No credit 2. LITERATURE REVIEW of excise duty and service tax paid at the Kausalya’s Arthasastra: His works state phase of manufacture is available to the that the taxes are often perceived to be a traders while paying the State level sales tax measure for raising resources for the or VAT, and vice-versa. Further, no credit of government. In the primitive barter State taxes paid in one State can be benefited economies of the medieval period in Europe in different States. Due this tax on tax prices and even in ancient India, the primary of goods and services get unnaturally objective of taxation was to raise resource inflated. The arrangement of GST would for the economy. stamp a reasonable take off from the plan of Mukhopadhyay Sukumar (2005): His dissemination of monetary forces conceived study reveals that Revenue growth is the in the Constitution. The proposed dual GST most important aspect by which to judge the conceives tax assessment of the same success of VAT in Haryana. The deemed assessable occasion, i.e., supply of products growth of revenue estimated by the and enterprises, at the same time by both the Commercial Tax Department of Haryana, Centre and the States. The credit of GST however, has not taken into account a paid on input at each phase of value addition number of positive factors. As Haryana would be available for the discharge of GST implemented VAT only in 2003, one year is liability on the output, thereby ensuring GST too short a period to judge its efficiency is charged only on the component of value from a revenue point of view. The addition at each stage. Indian indirect tax conclusion is that the design of VAT will become simpler after GST. It is introduced in Haryana is unexceptional expected to decrease cost of creation and
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Nishitha Guptha (2014) in her study stated services at all the stages of value addition. It that implementation of GST in the Indian has dual model including central goods and framework will lead to commercial benefits service tax (CGST) and states goods and which were untouched by the VAT system service tax (SGST). CGST will subsume and would essentially lead to economic indirect taxes like central excise duty, central development. sales tax, service tax, special additional duty Jaiprakash (2014) in his research study on customs; counter veiling duties whereas mentioned that the GST at the Central and indirect taxes of state governments like state the State level are expected to give more vat, purchase tax, luxury tax, octroi, tax on relief to industry, trade, agriculture and lottery and gambling will be replaced by consumers through a more comprehensive SGST. Integrated goods and servicetax and wider coverage of input tax set-off and (IGST) also called interstate goods and service tax setoff, subsuming of several service tax is also a component of GST. It is taxes in the GST and phasing out of CST not an additional tax but it is a system to Saravanan Venkadasalam (2014) has examine the interstate transactions of goods analysed the post effect of the goods and and services and to further assure that the tax service tax (GST) on the national growth on should be received by the importer state as ASEAN States using Least Squares Dummy GST is a destination based tax. Variable Model (LSDVM) in his research 6. STRUCTURE OF GST paper. He stated that seven of the ten The proposed GST comprises: ASEAN nations are already implementing Central GST(CGST) which will be levied by the GST. He also suggested that the Central Government household final consumption expenditure State GST(SGST) which will be levied by and general government consumption state government expenditure are positively significantly Integrated GST (IGST) which will be levied related to the gross domestic product as by Central Government on inter-State supply required and support the economic theories. of goods and services. This will be CGST But the effect plus SGST of the post GST differs in countries 7. Impact of Goods and Services Tax on 3. OBJECTIVE OF STUDY – Indian Economy To collect information of current tax system 7.1 Positive impacts on the economy: and analysis of tax byGST Implementation of a single National GST To study the concept of Goods and Services will have major beneficial impact on all Tax (GST) and its impact on Indian stake holders. The key highlight of such economy. impact is given below: To understand how GST will work inIndia. I. Eliminates cascading effect & barrier To know the benefits of GST in India conte free tax structure: 4. RESEARCH METHODOLOGY GST will eliminate cascading [tax on The study is based on Secondary data tax/ compounding tax] impact on the collected from various referred books, production and distribution cost of goods National & international Journals, and services. This reduced cost of goods and government reports, publications from service leading to accelerated GDP growth. various websites which focused on various GST without tax barriers will leads to aspects of Goods and Service tax. economies of scale in manufacturing 5. CONCEPT: - industry and reduces the supply chain cost. GST is an indirect tax which will II. Expected to reduce the production include almost all the indirect taxes of cost: central government and states governments GST is expected to reduce the into a uniform or whole tax. As the name production cost by 15% to 20% in many of suggests it will be levied on both goods and the products in view of full input tax credit
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 which will have favourable impact on the industry: prices of product. AsperthestudyundertakenbytheCurtinUni III. Expected to increase the tax revenue: versityofTechnology,Perthin GST will widen the tax base and 2000,GSTwouldnegativelyimpacttherealestat improve the tax compliance higher tax: GDP emarketasitwouldaddupto ratio. The Tax: GDP ratio is expected to 8%tothecostofnewhomesandreducedemandb increase by 2% as per FRBM report. This yabout12%. works out to rupees 70,000 to 80000 crores II. Emergence of transfer pricing issues: of additional annual revenue to the central As the GST considers all the transaction and state governments. fort taxation purpose, this procedure will IV. Leads to sustainable growth in the increase the price of the transfer from one economy: department to anotherforfurther process. GST will remove the tax distortions III. Negative effect on working capital: from the economy. This will lead to As the firms are supposed to make the sustainable higher growth based on payment of the tax one very transfer the competitive strength of the country. Simple companies working capital requirement will tax system will attract more productive shoot supply proportionaltothe purchase of investment for growth. inputs for the value addition. V. Will lead to optimization and Conclusion: comparative cost advantage: By the above discussions one can reach GST will eliminate the Inter State tax following conclusion: by which it will leads to optimization of 1. The macro economic impact of GST physical facilities to the extent of full is significant in terms of grow with capacity. If the manufacturing is done at full effects, price effects, current account capacity industry will be benefited by effects and the effect on the budget comparative cost advantage. balance. VI. Increase in the GDP and standard of 2. In developing living: 3. open economy with growing service Since it is expected that with the sector ,a change in the tax mix fro implementation of GST the price level will mincometoconsumption- reduced in the economy, it will result in basedtaxesislikelytoprovidea fruitful increase in the consumption level and source of revenue. growth in GDP of the economy. According 4. The proposed structure will simplify to study by NCAER (National Council for the procedure which will end up with Applied Economics and Research) complete equal opportunity for all the markets implementation of GST could lift GDP and in other hand will eadsr educed growth by 0.9-1.7%. tax evasion. VII. Positive effects on export and BOP REFERENCES: - level: 1. http://en.wikipedia.org/wiki/Goods_and_ In proposed GST the exporter will Services_Tax_(India) get the full tax credit, the export units will be 2. http://economictimes.indiatimes.com/top able to quote better price for their products ic/GST and services in comparison with present 3. A Primer on Goods and Services scenario. Increased export will ultimately Tax in India, Centre for Budget have positive effect on the BOP of the and Gover nance Accountability, country. new delhi,2011 7.2 NEGATIVE IMPACT OF GST: 4. Beri The proposed GST may lead to following Yogita,(2012),―ProblemsandProspect negative impact on the stake holders: sofGoodsandServiceTax(GST)inIndi I. Negative effect on the real estate a‖,Economic affairs,2011.
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5. Ca Rajkumar S Adukia, A Study on ServicesTaxinIndia,the Proposed Goods and Services Tax EmpoweredCommitteeofStateFinanc [Gst] Framework in India. eMinisters,NewDelhi. 6. Dr. R. Vasantha gopal (2011), ―GST 8. Girish Garg, (2014), ―Basic Concepts in India: A Big Leap in the Indirect and Features of Good and Service Taxation System‖, International Tax inIndia‖. Journal of Trade, Economics and 9. Goods and Ser vices Tax (GST) - Finance, Vol. 2, No. 2, April2011. A step forward (2013) available at 7. Empowered Committee of Finance http://www.taxmanagementindia.co Ministers (2009). First Discussion m Paper on Goods and
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BLIND SPOT AND MARKET RISK
DR. SAROJ HIREMATH S.P.College, Pune, Maharashtra.
ABSTRACT The premise of the study is to generate the awareness amongst the professional bodies the significance of digging deep into any failures and the importance going deep into analyzing any traits of the competitive blind spot that might safe guard the company's risk. The paper also deals with strategizing the policies with respect to the competitive blind spots and the risks associated with it.
INTRODUCTION years till the company filled its petition for The year 1948 witnessed a bankruptcy. The Post-Land -Leadership technological renaissance. Polaroid was just did not want to see the changes founded by Edwin Land who introduced clearly. Had the early warning of changing the world to the instant camera. Hence the technology was caught on the Polaroid instant photography became the core radar then the company would have had business for Polaroid. In 1976 Kodak some different destiny to cherish. Hence tried to break into the market of the biggest dangers to any company are the photography. However it failed. The only ones that cannot be predicted. substitute for the instant photography was To understand these threats one the conventional photography that needs to have a strong anticipating required a long time to get processed. opportunity that requires high end Thus Polaroid had a competitive edge in peripheral vision. Past may not be the the market. But the business environment most reliable predictor of the future. But sent a signal of discomfort when the it can surely point out the blind spots in technology of the traditional photography the respective company or the industry. got advanced to a point where the Failing to learn the lessons will lead to processing time reduced to just an hour. It slow opportunities and threat detection was a reasonable trade-off for the which bluntly gives little-to-no strategic customers. The year 1980 finally became value to the company's efforts to achieve the era of cheap disposable cameras that competitive advantage. This overlooking was the best alternative for the traditional of threats and opportunities nearing by is and expensive cameras and the final blow called Blind spots. The result of any Blind was from the digital cameras. Polaroid Spot is an inability to contribute insights suffered from a serious jerk in 1985. It that help senior management steer the invested millions into the instant motion company to attain and sustain competitive picture system project, Panavision and advantage, which is the only justification Polaroid lost out to video camera which for accruing the overhead cost of a CI was clearly an alternative to Polaroid's function and staff. The result is a CI unit technology. An executive at Polaroid told that has limited its ability to add strategic the press" everybody but Land knew video value. What Polaroid suffered for the 15 was on the way". This is quite typical of years since 1985 that led to the strong, charismatic, and autocratic bankruptcy, was the blind spot. Had this technologists who became leaders in the blind spot was been figured out by Land industry. Land stepped down from his or any of his successors, then Polaroid authoritative position in the company. But would have survived the market warfare. the syndrome of overlooking the growing This paper hence identifies and explores change in the market persisted over 15 the blind spot effects in the present
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 economy. The marketers never pay much As a result of Global intensification heed to the past tends. They always seek the markets have become more competitive for the strategies to get the present work. than it was ever. The survival had become They rarely look back. They are busier tougher, so in order to stay alive in the keeping up with the current trends. They market, one has to hold the competitive are more into what happened rather than advantage over the other. why it happened. The study thus focuses And to hold an advantage over the on the loopholes while making the other competitors, each and every move, strategies especially with respect to the strategy, innovations and technology of competitive intelligence blind spots. the other competitors should be carefully Objectives of the Study monitored. In short - The Survival Of the 1) To explore the risks with regards to Fittest has become the notion of today's the blind spots businesses. 2) To uncover the greatest blunders In spite of this prevailing occurred down the line of corporate importance, cases shows that not all history. corporate do have a competitive analysis 3) Bringing out a solution to detect the on their competitors profile, and have blind spot serious blind spots about competitors 4) Associating marketing strategy with intentions, capabilities and possible blind spot detection. reactions. Research methodology The main aspects and elements The study is based on secondary while doing a competitive analysis in data which are qualitative in nature. The examining the blind spots could be source of the data used has their roots in referred from the Industry, Competitors several books and articles. The study also and Customers. considered the latest research papers put The changes that's taking place in up in several websites. the industry and new trends that keep on Data analysis and interpretation: rocketing the market has to be analyzed. The study mainly focuses on the Further the emerging technologies which secondary data and the interpretation is are brought in by the close competitors categorized as the following five factors, and coping up with the new technologies viz., A, B, C, D, and E. that makes radical changes in the industry A) Defining Blind spots has to be keenly followed in order to "The biggest blunder we commit in outlast the competitors. If not, this leads to a corporate scenario is not identifying the blind spots in competitive analysis. risks that are approaching our way and Customers anticipating it as opportunities". In a rapidly changing day to day Precisely Blind-Spots refer to the environment the needs, wants and the unidentified risks that lie in the industry, preferences of the customers are also which is bound to happen and hamper the changing each day. Not simply, it was process of the organisation. Competitive said that the customers are the kings of the blind spots refer to the firm's poor analysis market. So the firm has to keep itself of its competitor or underestimation of the updated to the new emerging needs and competitor moves and strategies or wants of the customers. Identifying the misjudging the motion of the competitor potential customers and catering to their and consequently paying a huge price for buying patterns and behaviors had been weakening itself in seeking new become more important, in avoiding the opportunities and horizons. blind spots. "It's been always said, Leaders seek Competitors Opportunities at the face of the threat".
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Significant blind spots occur in concerned entity working within the this particular juncture, as the firm has to market. The solution to the matter dealt very careful in analyzing its competitors, with has to be addressed with sheer not sticking to only the well known importance. companies and brands is vital, as there Having done the scanning of the might be potential threat from a new environment of the market, risks need to entrant and in this global era, companies be mapped and rated as per the interest of shouldn't limit themselves to a regional the organization. To define with clarity, competitor, as there might be national, anything that causes a hindrance to the foreign invasions sooner or later. vision, mission and objective an How important it is to take a organization or a firm is called a risk. strategic move during economic Hence the future threat perceived, should slowdowns, is as important in analyzing be rated on a desired scale as per the the competitor during that particular concerned convenience. depression period. Competitors may try to C) Blind spot and Risk Detection seek new target segment or roll down new Globalization has erased the line extension or diversify their markets concept of territory in the world of trade and operations. and commerce. Earlier days witnessed Firms that do not consider these the dictators as the influential issues in competitive analysis will fall a individual with the supreme military prey to competitive blind spots. B) Blind power. Recent years witness the spot Detection and Its Barrers to Adding economic superpower as the dictator of Strategic Values the world. In that way, things have The industry map reveals that the changed from head to toe. But the industry landscape is changing at a rapid aggression has the same intensity and pace. Every day brings in a brave new the lust for the power is still the same. world in the technical and business arena. Hence the bottom line of every Concerned entities in the respective organization is money and thus the world, if they do not bother to follow up power play has begun the day people the constant change are bound to bring up understood the significance of economic the rear. Market is now very much superpower. The global market is dynamic and exponential. A constant interconnected by regulations and trade. follow up with regards to the constant The risk detection in the excessive change in the environmental landscape is complex market stands a chance to get very crucial for the sustainability of any extremely vulnerable. The business concerned entity working within the environment needs a constant market. The solution to the matter dealt monitoring as the landscape changes with has to be addressed with sheer very rapidly. The rapid changes in the importance. The industry map reveals landscape are just the outcome of the that the industry landscape is changing at exponential trend of the market a rapid pace. Every day brings in a brave dynamics. But the bottom line of risk new world in the technical and business detection is the constant environment arena. Concerned entities in the respective scanning. No matter how much critical world, if they do not bother to follow up or how much innovative risk detection the constant change are bound to bring up model is used, has not the the rear. Market is now very much environmental scanning been done on a dynamic and exponential. A constant regular basis, the detection cannot be follow up with regards to the constant made. Detection and analyzing tools change in the environmental landscape is will come and will evolve into finer very crucial for the sustainability of any tools and then will also get obsolete
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 with the emergence of new tool and of large and doubtful debts and the bank technique. But if the scanning is not interests. Moreover the financial risks done properly, actionable intelligence cover the exchange rate risks and the will not get generated and hence risk export risks. The exchange risks will not get detected. Hence, no matter management finds solutions to the risk in how complex a structure the global hedging. Hedging can be done in two ways: economy has, which no wonder will a) Forward foreign exchange evolve more into a more complicated contracts that is mainly handled by structure, but the scanning of the respective bank of the organization. environment to get a proper idea is of b) Buying currency options utmost importance. To gauge the risk The operation risks includes the and its significance, an organization risks regarding the proper talent needs the daily updates of every form management, proper supply chain regarding the micro and macro management transportation management, environment of the economy. Micro accounting controls, information includes everything with regards to the technology management regulations and organization and macro includes the board composition of the organization everything with regards to its themselves. At the end, goodwill makes competitors, market, global changes, the organization a going concern. Thus technical evolution-in short, everything reputation holds such importance to a to landscape the industry the firm that it any harm to it can bring down organization is playing or wants to play- a company to the stage from where it However, in order to mitigate the risk, began its journey. one will have to understand the kinds of Any organization should have a risks that he may have to be come in department who will just be entrusted terms with in the market while with the job of data security and undergoing any tradeoffs. They are thus collection. In other words, the intelligence as follows: unit of every organization should be 1) Strategic risk entrusted with the environment scanning 2) Compliance risk and the risk detection. Every department 3) Financial risk should have their own monitoring sub 4) Operational risk department. But the entire sub department 5) Data protection risk should be directly supervised by the 6) Environmental risk planning department. 7) Employee risk D)Vision in Accordance to the Risk 8) Political risk Detection- Strategic Inflection Points 9) Commercial risk May you, live in Interesting Times. 10) Reputational risk -Chinese Curse Strategic risks includes the Strategic Inflection Point - a new threats arising out of mergers and term coined by Andy Groove, which states acquisitions, changes in demand among it as a time in the life of business or project the customers, changes in the industry when its fundamentals are changing and the changes regarding the significantly. Often point is a misnomer, technology. The compliance risk and it's actually a long, sometimes painful involves the legal issues that need to be period of change. addressed. Financial risks includes the Strategic Inflection Point could issues regarding the daily examination of also be the subtle- in a way hard to detect proper cash flow in and out of the changes that are happening in the industry organization that concerns the credit and and in the environment. The wheels roll in debit flow of money, insurance coverage the form of emerging new technologies,
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 entry of new competitor (unrelated market are merciless and aggressive. diversification), changing patterns of Hence it is very critical of every entity in consumer behavior and buying patterns. the market to do proper planning to "IT'S NOT A SIN TO BE identify and assess the risks, then control DEFEATED, BUT TO BE SURPRISED"! them and finally mitigate them. This is Surprise! When everything looks called the risk management process. While and feels normal to you, suddenly some undertaking the process of risk changes takes place which involves you identification, business environment should seriously. be given the maximum emphasis. It leads Strategic Inflection Point may bring to the assessment of the likelihood of the about full scale changes in the way the occurrence of any event in near future business is being conducted. that holds the key to the scenario And if necessary reactions are not planning. Scenario planning is nothing but made to these changes in the environment, assessing the current picture of the then firms would end up paying dearly for environment, analyzing the future risks that. Thus strategic inflection point could that the business of any particular nature is be deadly. vulnerable to and then identifying the In short strategic inflection point possible actions that can be taken in could be fundamental changes in the response to the threats. The planning business. It has become common and should have a follow up with the systems imperative in today's world that firms in place to deal with the predicted perils. should adopt to the each and every Eventually the constant monitoring should changes that occur in the environment be be done to keep a check on the it micro or macro. Else it's obvious that effectiveness of the strategy planned to firms would be easily sunk in a sea, which mitigate the threats. is boiling with cut throat competition. Conclusion E) Scenario Planning As a Tool for Though past is considered as dead Mitigation and effete, it can certainly be a better Practically, the market landscape predictor for the future. We can always is supported by the globalization in itself. learn from the past citing, the blind-spots The words that govern all the activities in the company or in the industry. Those inside the market are given by who fail to learn from these examples will "deterritorialisation" and face threat at every corridor of their "supraterritorialisation" where each market operations and will not be able to foresee is interlinked and interconnected with each the ample opportunities that lie ahead of other. But each market has its own rule them.Blind spots occur when firms do not while in the game inside the ring. For react to the changing business instance, two players playing a game of environment, the emerging technologies, chess and each of them have their own rule buyer's buying patterns and shifts in that may contradict each other's interest buyer's attitude and most abruptly not but they certainly protects their own analyzing the potential threats from the respective interest in order to maintain competitors. Analyzing the competitors their strengths and sustainability. The and their strategic moves is not only intricacies are very crucial to play with as important to stay ahead of the competition it is very much likely to invite the but also to make strategic decision making. vulnerabilities from the competitors while When companies fail to reflect to these playing in the market. The market being threats and changes that is where it leads dynamic and restricted with unlimited the firm to potential competitive blind flow of products and services undergoes a spots. When properly analyzed and very high-end competition. Players in the focused, these blind spots could always be
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 used to seize or gain a competitive advantage over the other firms and it helps in deciding the strategic moves to be competitive!
References 1. http: / /en.wikipedia.org/wiki/Risk management 2. http://www.exsecutus.com/haughwout /2010/03/risk-management-is-more- than-just-risk-rnitigation 3. http: //www. mind tools. com/pages/article/newTMC_07.htm
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IMPACT OF REMITTANCE ON ECONOMIC GROWTH AND POVERTY ALLEVIATION IN NEPAL
NAR BAHADUR BISTA YEGYA BAHADUR K. C. Principal, Uniglobe College, Research Scholor, Uniglobe Pokhara University, Kathmandu, College, Pokhara University, Nepal Kathmandu, Nepal
Abstract This study examines the impact of remittance on economic growth and poverty alleviation in Nepal. Gross domestic product and poverty alleviation are the dependent variables. Remittance, broad money supply, foreign aid, industrial production, inflation, foreign direct investment, per capita income, consumption, unemployment rate and literacy rate are the independent variables. This study is based on secondary sources of data that are collected from1995/96 to 2014/15, leading to a total of 20 observations. The data are collected from Economic Survey, Monetary Policy and different reports published by NRB, reports published by World Bank, and different issues and reports published by Ministry of Finance. The regression models are estimated to test the significance and importance of remittance on economic growth and poverty alleviation in Nepal. The study shows that there is positive relationship between gross domestic product and total remittance inflow. It indicates that increase in total remittance inflow leads to increase in gross domestic product. Similarly, gross domestic product is positively correlated to broad money supply. It indicates that increase in broad money supply leads to increase in gross domestic product. Likewise, there is positive relationship between gross domestic product and foreign aid. It indicates that higher the foreign aid, higher would be the gross domestic product. Likewise, the gross domestic product is positively correlated to industrial production. It indicates that higher the industrial production, higher would be the gross domestic product. The study also shows that gross domestic product is positively correlated to inflation. Similarly, the result shows that poverty alleviation is positively correlated to total remittance inflow. It indicates that increase in total remittance inflow leads to increase in poverty alleviation. Likewise, poverty alleviation is positively correlated to per capita income. It indicates that higher the per capita income, higher would be the percentage of poverty alleviation. The regression results show that the beta coefficients for remittance and broad money supply are positive with gross domestic product. Similarly, the beta coefficients for per capita income and literacy rate are positive with poverty alleviation. The study concludes that remittance has significant impact of remittance on economic growth and poverty alleviation in Nepal. Keywords: Gross domestic product, poverty alleviation, remittance inflow, broad money supply, foreign aid, industrial production, inflation.
1. Introduction (Mafruhah et al., 2012). In the worldwide Remittance is a transfer of money by economy, remittances represent one of the foreign worker to his or her home country. major international flows of financial Remittance can also be referred as monetary resources. Worker remittances constitute an payment transferred by a customer to a increasingly important mechanism for the business from one place to another transfer of resources from developed to
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 developing countries, and remittances are the institutional variables. The study also found second-largest source, behind foreign direct some evidence of a positive relationship investment, of external funding for between growth and total remittances. developing countries. Sometimes the flows Similarly, Azam & Khan (2011) found that of remittances can exceed the flows of worker remittance has significant and foreign direct investment (Shera & Meyer, positive effects on economic growth. 2013). Javidet al. (2012) investigated the Inflows of remittances increase the importance of remittances inflow and its economic growth and reduce the poverty by implication for economic growth and stimulating the income of the recipient poverty reduction in Pakistan. By using country, reducing credit constraints, ARDL approach, the study analyzed the accelerating investment and enhancing impact of remittances inflow on economic human development through financing better growth and poverty in Pakistan for the education and health (Jongwanich (2007); period 1973-2010. The empirical evidence Gupta et al.(2009). However, Chami et al. showed that remittances effect economic (2005) found that remittances have negative growth positively and significantly. impacts on economic growth of recipient Furthermore, the study also found that country because a significant flow of remittances have a strong and statistically remittances reduce labor force participation significant impact on poverty reduction. and work efforts which lowers output. Thus, Similarly, Giuliano (2008) found that the impact of remittances on economic remittances boost growth in countries with growth and development of recipient country less developed financial system as it provide has been controversial. an alternative way to finance investment and According to ArefAssaf (2015), there reduce liquidity constraints. Workers‘ is a positive effect of remittances on GDP. remittances also play an important role in On the other hand the effects of other human capital investment in the recipient traditional sources of economic growth, such country through relaxing resource as gross fixed capital formation showed that constraints. Rajan &Subramanian (2005) there is a positive effect on GDP , a negative found a robust and significant positive effect effect of foreign direct investment on GDP, of remittance on long-term growth. while no significant effect of labor force on Jongwanich (2007) examined the GDP. Similarly, Faini (2002) argued that impact of workers‘ remittances on growth remittances overcome capital market and poverty in Asia-Pacific developing imperfections and allow migrant households countries. The empirical evidence showed to accumulate positive assets. that remittances have a significant impact on Glytsos (1993) examined the impact poverty reduction and trivial impact on of remittances on output using data from growth. Similarly, Burgess and Vikram 1969 to 1998 for Egypt, Greece, Jordan, (2005) examined the different channels Morocco, and Portugal. For Egypt, Jordan, through which remittances can affect and Morocco the growth-generating capacity economic activity. The study does not of rising remittances characteristic is smaller clearly support the short term stabilizing than the growth-destroying capacity of effect on consumption, however the longer falling remittances. Therefore, the large term economic effect of such flows seems to fluctuations in the real value of remittances be ambiguous. Catrinescu et al. (2009) contribute to large fluctuations of output explored that remittances exert a weak growth and cause instability in the positive impact on long term economies concerned. Kaufmann et al. macroeconomic growth. Furthermore, the (2004) found a robust positive relationship study also supported the idea that between growth and gross capital formation, development impact of remittance enhances as well as between growth and some of the
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 in the presence of sound macroeconomic development and creates inequalities and policies and institution. disparities among the people within the Fayissa and Nsiah (2010) argued that country. Similarly, Sofranko and Idris remittances enhance economic growth in (1999) concluded that workers‘ remittances countries where financial systems are not fail to create sufficient savings required for very strong. Iqbal and Sattar (2005) showed rapid economic growth because remittances that real GDP growth is positively correlated are mainly used for consumption not for to workers‘ remittances during 1972-73 to investment. 2002-03. The study also revealed that Similarly, Brown and Ahlburg workers‘ remittances emerged to be the third (1997) argued that remittance undermine important source of capital for economic productivity and growth in low-income growth in Pakistan. Likewise, El-Sakka& countries because they are readily spent on McNabb (2002) examined the role of consumption likely to be dominated by remittances and financial development on foreign goods than on productive economic growth in a panel of 36 countries investments. Paul and Das (2011) found a in Saharan Africa over the period of 1980- long run positive relationship between 2009. The study found that remittances remittance and GDP, but there is no appear to be an important source of growth evidence on remittance-lead growth in the for these countries in Africa during the short-run. On the other hand, Maitur et al. period under study. Jawaid et al. (2012) (2006) showed that remittances seem to have revealed a positive and significant significant and ambiguous effect on relationship between workers‘ remittances Bangladesh's GDP. Rodrick (2008) provided and economic growth. The study showed evidence that a rise in remittance inflow that the workers‘ remittances are more leads to an underestimation of long run contributing in high income countries as economic growth through the overvaluation compared to low and middle income of real exchange rate which potentially cause countries. an inflationary pressure. According to Ramirez and Sharma Adams and Page (2005) used the data (2008), there is a positive association of 71 developing countries to assess the between workers‘ remittances and economic relationship of remittances with growth, growth. Similarly, Imai et al. (2014) found a inequality and poverty. The study concluded positive relationship between workers‘ that remittances significantly reduce the remittances and economic growth but the level, depth and severity of poverty and volatility of workers‘ remittances was found increase the economic growth of the harmful for economic growth in 24 Asian developing world. Lucas (2005) argued that and Pacific countries. Tehseen & Raza remittances probably contributed in a (2012) argued that workers‘ remittances also significant way to economic growth and create over dependency on external economy poverty alleviation process in case of or income that‘s creating voluntary Pakistan. Similarly, Nsiah & Fayissa (2010) unemployment. Likewise, Waheed and examined the macroeconomic impact of Aleem (2008) found that worker remittances remittances and some control variables such are only beneficial in short run. In long run, as openness of the economy, capital/labor the policy makers should focus on export ratio, and economic freedom on the earning instead of workers‘ remittances as a economic growth of African, Asian, and source of foreign exchange earnings for Latin American-Caribbean countries. The continues and stable growth. Leon and study found that remittances, openness of Piracha (2004) suggested that international the economy, and capital labor ratio have migration/remittances paralyze countries positive and significant effect on economic making them dependent on remittances. growth for all regions as a group and in Reliance on remittances distorts each of the three in study. Inflow of
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 remittances affects economic growth remittance on economic growth and poverty positively by reducing current account alleviation. deficit, improving the balance of payment The major purpose of this study is to position and reducing dependence on examine the impact of remittance on external borrowing (Iqbal and Sttar, 2005). economic growth and poverty alleviation in In Nepalese context, many studies have Nepal. Specifically, it examines the effect of attempted to address the impact of remittance inflow, broad money supply, remittance on economic growth and poverty foreign aid, industrial production, inflation, alleviation. Pradhan et al. (2008) found that unemployment rate, foreign direct remittance has a significant and positive investment, per capita income, consumption impact on growth. Similarly, Gaudel (2006) and literacy rate on economic growth and found that remittance income and grants poverty alleviation in Nepal. appear to be the most relevant variables to The remainder of this study is organized raise nominal GDP in Nepal. Pension and as follows: Section two describes the other items have also significant effect on sample, data and methodology. Section three increasing nominal GDP in Nepal. Thagunna presents the empirical results and the final and Acharya (2013) showed that section draw conclusions and discuss the consumption has significant contribution to implications of the study findings. the Nepalese economy at the present. 2. Methodological aspects According to Pant (2008), remittance The study is based on the secondary is utilized for consumption, purchasing data, which were gathered from 1995/96 to houses or other investments which produce 2014/15, leading to a total of 20 positive effect on the economy by observations. The main sources of data are stimulating demand for other goods and Economic Survey, Monetary Policy and services. The study also showed significant different reports published by NRB, reports decline in receipts from remittance could published by World Bank, and different disturb the structure of the economy from issues and reports published by Ministry of the macro level. Finance. Table 1 shows the list of variables The above discussion reveals that selected for the study along with study there is no consistency in the findings of period and number of the observations. various studies concerning the impact of
Table 1: Number of macroeconomic variables selected for the study along with the study period and number of observations S.N. Variables Study period Observation Gross1 domestic product 1995/96-2014/15 20 Poverty2 alleviation 1995/96-2014/15 20 Total3 remittances 1995/96-2014/15 20 Broad4 money supply (M2) 1995/96-2014/15 20 Foreign5 aid 1995/96-2014/15 20 Industrial6 production 1995/96-2014/15 20 Inflation7 1995/96-2014/15 20 Foreign8 direct investment 1995/96-2014/15 20 Per9 capita income 1995/96-2014/15 20 10Consumption 1995/96-2014/15 20 11Unemployment rate 1995/96-2014/15 20 12Literacy rate 1995/96-2014/15 20 Total observations 20 Thus, the study is based on 20 observations.
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The model INF= Inflation is the continuous increase in The model estimated in this study general price of goods and services in the assumes that the economic growth and economy, in percentage. poverty alleviation depend on various macro PCI= Per capita income is the national economic variables. The independent income divided by the total population of the variables considered in this study are country in a given year. remittance inflow, broad money supply, PA= Poverty alleviation is the population foreign aid, industrial production, inflation, not living below poverty line, in percentage. unemployment rate, foreign direct UR=Unemployment rate is the percentage of investment, per capita income, consumption unemployed population in the country, in and literacy rate. Therefore, the model takes percentage. the following forms: LR= Literacy rate is the percentage of Economic growth=ƒ (remittance literate population in the country, in inflow, broad money supply, foreign aid, percentage. industrial production, inflation, unemployment rate and foreign direct Remittance investment). A remittance is a transfer of money Poverty alleviation=ƒ (remittance by a foreign worker to his or her home inflow, per capita income, consumption and country or simply sending amount from one literacy rate). country to another. Ivakhnyuk (2006) found More specifically, the given model that workers‘ remittances which are closely has been segmented into following models: related to migration have a positive impact Model I: on economic development. Similarly, the GDPit= β0 + β1 REMit + β2MSit + β3FAit + study also revealed that increase in β4IPit+β5INFit +β6FDIit+GDPt-1+ uit remittance leads to alleviation of poverty. In Model II: addition, Pradhan et al. (2008) found that PA it = β0 + β1REMit + β2PCIit + β3CONit + remittances have a positive impact on β4URit + β5LRit + uit economic growth in a sample of 39 developing countries. Based on it, the study Where, develops the following hypotheses. GDP= Gross domestic product is the real H1: There is a positive relationship between GDP of the country, in Billion Rupees. remittance and gross domestic product. REM= Remittance is defined as earnings H2: There is a positive relationship between from foreign employment, in Billion Rupees. remittance and poverty alleviation. CON= Consumption is defined as resources used by households, in Billion Rupees. Money supply FDI= Foreign direct investment is defined as Money supply is the total amount net inflow of investment from abroad, in of monetary assets available in Billion Rupees. an economy at a specific time. An increase MS=Broad money supply is defined as total in the supply of money typically lowers money circulation in market plus demand interest rates, which in turns generates more deposit, in Billion Rupees. investment and puts more money in the FA= Foreign aid is the goods, capital or hands of consumers (Nwannebuike, 2015). services received by a country from abroad, Kar and Pentcost (2000) suggested that the in Billion Rupees. money supply was taken as a leading IP= Industrial production is the total indicator for the economic growth. Islamet industrial production of the country, in al. (2004) revealed a positive relationship Billion Rupees. between money supply and economic growth. Based on it, this study develops the following hypothesis:
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H3: There is a positive relationship between (2010) investigated the relationship between money supply and gross domestic product. inflation and economic growth. The study Foreign aid found evidence of significant negative effect Foreign aid refers to the assistance of inflation on economic growth with and provided by one nation to another. Foreign without structural break. Based on it, this aid also refers to the transfer of goods, study develops the following hypothesis: capital or services from an international H6: There is a negative relationship between organization or a country to offer some inflation and gross domestic product. benefits or help to the receipt country. Foreign direct investment Gomanee et al. (2005) found that foreign aid Foreign direct investment (FDI) is has a significant positive effect on economic any form of investment that earns an interest growth. Similarly, Dowling and Hiemenz in enterprise which functions outside of (1982) assessed the effect of aid on domestic territory of investor. Borensztein et economic growth in Asia. The study found al. (1998) suggested that FDI is an important that aid has positive and significant effect on vehicle for the transfer of technology, economic growth. Similarly Karras (2006) contributing relatively more to growth than found the positive correlation between domestic investment. Another recent study foreign aid and growth in per capita GDP. also confirmed that the important role of FDI This study concluded that the effect of is to stimulate economic growth in the Euro foreign aid on economic growth is positive, zone countries (Pegkas, 2015). Based on it, permanent and statistically significant. this study develops the following hypothesis: Based on it, the study develops the following H7: There is a positive relationship between hypothesis. foreign direct investment and gross domestic H4: There is a positive relationship between product. foreign aid and gross domestic product. Per capita income Industrial production Per capita income is a measure of the Industrial production is a measure of amount of money that is being earned per output of the industrial sector of the person in a certain area. It can be calculated economy. The industrial sector includes for a country by dividing the country's manufacturing, mining, and utilities. national income by its population. Spatafora Aurangzeb and Ul-Haq (2012) found that (2005) found that there is a positive and industrial production contributes to significant relationship between per capita economic growth significantly and there is income and poverty alleviation. Ravallion positive relationship of gross domestic and Chen (2008) found that there exists very product with industrial production. strong positive relationship of per capita Similarly, Kibriya et al. (2014) found that income growth with poverty reduction. industrial production is an important source Based on it, the study develops the following of increasing economic growth. Based on it, hypothesis: the study develops the following hypothesis. H8: There is a positive relationship between H5: There is a positive relationship between per capita income and poverty alleviation. industrial production and gross domestic Consumption product. Consumption refers to the action of Inflation using up a resource. In economics, the Inflation reflects the continuous consumption function is a single increase in general price of good and service mathematical function used to express in the economy. Fischer (1993) showed that consumer spending. Durand (1996) argued inflation and growth are negatively related. that remittances influence a country‘s More specifically, the study argued that the economy directly by way of investment or growth, investments and productivity are indirectly through the multiplier effect of negatively related to inflation. Marbuah consumption which elicits investments in
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 production to meet the demand upsurge. may eradicate the poverty for the uplifting Anyanwu (2011) found that remittances that the living standard of the country population. raise the consumption levels of rural Based on it, the study develops the following households might have substantial multiplier hypothesis. effects because they are more likely to be H11: There is a positive relationship between spent on domestically produced goods. literacy rate and poverty alleviation. Based on it, the study develops the following 3. Results and discussion hypothesis: Descriptive statistics H9: There is a positive relationship between Table 2 presents the descriptive consumption and poverty alleviation. statistics of selected dependent and Unemployment rate independent variables during the period of The unemployment rate is the share 1995/96 to 2014/15. of the labor force that is jobless, expressed Table 2: Descriptive statistics as a percentage. Huang and Yeh (2013) Table 2 presents the descriptive statistics of supported the inverse relationship of dependent and independent variables. The result is based on descriptive statistics of variables used in economic growth and poverty alleviation this study during the period from 1995/96 to 2014/15. with unemployment. Similarly, Grogan et al. GDP (gross domestic product is the real GDP of the (2013) found that there is negative country, in Billion Rupees) and PA (poverty relationship between the people unemployed alleviation is the population not living below poverty in the country and poverty alleviation. Based line, in percentage) are the dependent variables. The independent variables are REM (remittance is defined on it, the study develops the following as earnings from foreign employment, in Billion hypothesis: Rupees), CON (consumption is defined as resources H10: There is a negative relationship used by households, in Billion Rupees), FDI (foreign between unemployment rate and poverty direct investment is defined as net inflow of investment from abroad, in Billion Rupees), MS alleviation. (broad money supply is defined as total money Literacy rate circulation in market plus demand deposit, in Billion Literacy represents the lifelong, Rupees), FA (foreign aid is the goods, capital or intellectual process of gaining meaning from services received by a country from abroad, in Billion a critical interpretation of written or printed Rupees), IP (industrial production is the total text. Moore (2005) showed that low industrial production of the country, PCI (per capita income is the national income divided by the total education is a key factor in keeping people population of the country in a given year), UR poor over decades or lifecycles. Janjua and (unemployment rate is the percentage of unemployed Kamal (2011) revealed that increase in population in the country, in percentage) and LR literacy rate has a higher effect on the (literacy rate is the percentage of literate population economic growth due to which the country in the country, in percentage) Table 2: Descriptive statistics Variables Minimum Maximum Mean S.D. Gross domestic product (in Billion Rupees) 256.00 2249 938.15 660.17 Poverty alleviation (%) 59.60 78.40 69.45 5.05 Total remittance inflow (in Billion Rupees) 25.19 665.00 201.55 209.67 Broad money supply (in Billion Rupees) 92.65 2018.93 588.95 567.32 Foreign aid (in Billion Rupees) 5.71 59.21 29.63 18.27 Industrial production (in Billion Rupees) 54.99 265.75 130.97 70.89 Inflation (%) 2.50 12.60 7.24 3.01 Foreign direct investment (in Billion Rupees) -0.48 9.19 2.15 2.95 Per capita income (in Rupees) 12139.00 80900 33587.40 21503.56 Consumption (in Billion Rupees) 195.58 1843.72 692.31 496.93 Unemployment rate (%) 1.80 4.50 2.82 0.69 Literacy rate (%) 39.76 63.90 50.79 8.35
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G D Variables GDP PA REM MS FA IP INF FDI PCI CON UR LR Pt -1 GDP 1
PA 0.696** 1
REM 0.685** 0.738** 1
MS 0.678** 0.754** 0.590** 1
FA 0.529** 0.554* 0.831** 0.796** 1
IP 0.693** 0.682** 0.682** 0.564** 0.823** 1
INF 0.528* 0.326 0.514* 0.477* 0.673** 0.511* 1
FDI 0.757** 0.568** 0.765** 0.709** 0.773** 0.791** 0.443 1
PCI 0.795** 0.685** 0.693** 0.591** 0.817** 0.689** 0.495* 0.758** 1
CON 0.792** 0.588** 0.791** 0.594** 0.803** 0.782** 0.485* 0.730** 0.693** 1
UR -0.044 -0.292 0.022 0.016 0.199 -0.054 -0.045 0.167 -0.020 -0.027 1
LR 0.787** 0.753** 0.853** 0.847** 0.821** 0.874** 0.594** 0.675** 0.873** 0.866** -0.033 1
** ** ** ** ** ** * ** ** ** ** GDPt-1 0.794 0.892 0.789 0.587 0.825 0.588 0.506 0.747 0.692 0.691 -0.033 0.869 1
Correlation analysis Notes: The asterisk signs (**) and (*) indicate that Having indicated the descriptive the results are significant at 1 percent and 5 percent statistics, Pearson‘s correlation coefficients level respectively. are computed and the results are presented in Table 3 shows that gross domestic Table 3. More specifically, it shows the product is positively correlated to total correlation coefficients of dependent and remittance inflow. It indicates that increase independent variables. in total remittance inflow leads to increase in Table 3: Pearson’s correlation coefficient gross domestic product. Similarly, gross matrix domestic product is positively correlated to Table 3presents the bivariate Pearson‟s broad money supply. It indicates that correlation coefficients between different variables increase in broad money supply leads to used in the study. The correlation coefficients are increase in gross domestic product. based on the study during the period from 1995/96 Likewise, gross domestic product is to 2014/15. GDP (gross domestic product is the real positively correlated to foreign aid. It GDP of the country, in Billion Rupees) and PA indicates that higher the foreign aid, higher (poverty alleviation is the population not living below poverty line, in percentage) are the dependent would be the gross domestic product. variables. The independent variables are REM Likewise, the gross domestic product is (remittance is defined as earnings from foreign positively correlated to industrial production. employment, in Billion Rupees), CON (consumption is It indicates that higher the industrial defined as resources used by households, in Billion production, higher would be the gross Rupees), FDI (foreign direct investment is defined as net inflow of investment from abroad, in Billion domestic product. The study also shows that Rupees), MS (broad money supply is defined as total gross domestic product is positively money circulation in market plus demand deposit, in correlated to inflation. It indicates that Billion Rupees), FA (foreign aid is the goods, capital higher the inflation, higher would be the or services received by a country from abroad, in gross domestic product. Billion Rupees), IP (industrial production is the total industrial production of the country, in Billion Similarly, the result shows that Rupees), INF (inflation is the continuous increase in poverty alleviation is positively correlated to general price of goods and services in the economy, total remittance inflow. It indicates that in percentage), PCI (per capita income is the national increase in total remittance inflow leads to income divided by the total population of the country increase in poverty alleviation. The poverty in a given year), UR (unemployment rate is the percentage of unemployed population in the country, alleviation is positively correlated to foreign in percentage) and LR (literacy rate is the percentage direct investment. It indicates that higher the of literate population in the country, in percentage) foreign direct investment, higher would be the percentage of poverty alleviation. Likewise, poverty alleviation is positively
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 correlated to per capita income. It indicates foreign direct investment on gross that higher the per capita income, higher domestic product would be the percentage of poverty (The table shows regression results of alleviation. variables from 1995/96 to 2014/15. The model is GDP = β + β REM + β MS + β FA + Regression analysis it 0 1 it 2 it 3 it β4IPit+β5INFit +β6FDIit +GDPt-1+ eit. GDP (gross Having indicated the Pearson‘s domestic product is the real GDP of the country, in correlation coefficients, the regression Billion Rupees) is the dependent variable. The analysis has been performed and the results independent variables are REM (remittance is defined are presented in Table 4. More specifically, as earnings from foreign employment, in Billion Rupees), FDI (foreign direct investment is defined as the table shows the regression results of net inflow of investment from abroad, in Billion remittance inflow, broad money supply, Rupees), MS (broad money supply is defined as total foreign aid, industrial production, inflation, money circulation in market plus demand deposit, in and foreign direct investment on gross Billion Rupees), FA (foreign aid is the goods, capital domestic product. or services received by a country from abroad, in Billion Rupees), IP (industrial production is the total Table 4: Regression analysis of remittance industrial production of the country, in Billion inflow, broad money supply, foreign aid, Rupees), INF (inflation is the continuous increase in industrial production, inflation and general price of goods and services in the economy, in percentage)
Regression coefficients of Adj- F- Model Intercepts SEE R2 value REM MS FA IP INF FDI GDPt-1 12.78 0.76 1 0.74 115.31 60.73 (8.64)** (24.59)** 67.84 0.75 2 0.65 141.27 39.89 (5.80)** (19.92)** 5.92 0.35 3 0.60 379.67 39.44 (0.31) (6.28)** 72.86 0.71 4 0.79 80.34 55.01 (7.09)** (35.57)** 0.48 98.73 5 (12.64) 0.24 576.06 6.95 (0.29) * 0.56 73.61 6 (14.92)* 0.55 443.12 24.17 (4.64)** * 0.42 21.22 7 (56.15)** 0.69 51.10 31.14 (5.07)**
30.31 2.75 4.33 8 0.71 118.14 28.13 (7.52)** (2.96)** (4.39) ** 64.76 51.14 21.86 9 (5.43) 0.69 369.16 21.88 (5.86)** (2.99)** ** 34.30 52.54 145.82 10 0.57 430.72 13.82 (4.94) ** (1.43) (3.89)** 6.52 39.33 3.01 11 (6.49) 0.86 0.74 40.94 70.90 (4.99) ** (5.99) ** ** (3.75)** Notes: i. Figures in parentheses are t- values. ii. The asterisk signs (**) and (*) indicate that the results are significant at 1 percent and 5 percent level respectively. iii. Dependent variable is gross domestic product.
Table 4 shows that the beta coefficients for remittance inflow are positive and significant with gross domestic product. It indicates that increase in total remittance inflow leads to increase in gross domestic product. This finding is consistent with the findings of Ivakhnyuk (2006). Similarly, the beta coefficients for broad money supply are positive and significant with gross domestic product. It indicates that increase in broad money supply leads to increase in gross domestic product. This finding is similar to the findings of Islamet
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 al. (2004). Likewise, the beta coefficients for industrial production are positive and significant with gross domestic product. It indicates that higher the industrial production, higher would be the gross domestic product. This finding is similar to the findings of Kibriya et al. (2014). Table 5 shows the regression results of remittance inflow, per capita income, consumption, unemployment rate and literacy rate on poverty alleviation. Table 4.7: Regression analysis of total remittance inflow, per capita income, consumption, unemployment rate and literacy rate on poverty alleviation ((The table shows regression results of variables based on time series data from period of 1995/96 to 2014/15. The regression result consists of specification of the model in the form of simple and multiple regressions. The model is PA/PR it = β0 + β1REMit + β2PCIit + β3CONit + β4URit + β5LRit + uit. Dependent variable is poverty alleviation and independent variables are REM (remittance defined as earnings from abroad employment, in Billion Rupees), PCI (per capita income defined as income of individuals within the country,in Rupees),CON (consumption defined as action of using of the resources by households, in Billion Rupees), UR (unemployment rate defined as individual not getting job, in percentage) and LR ( literacy rate defined as educated population of the country, in percentage).
Regression coefficients of Models Intercepts Adj-R2 SEE F- value REM PCI CON UR LR 1 65.38 0.25 0.69 2.83 42.33 (73.45)** (16.51)** 2 62.47 0.18 0.57 2.42 31.04 (61.22)** (8.07)** 3 63.2 0.11 0.58 2.39 37.07 (67.88)** (8.19)** 4 75.49 -0.16 0.08 4.96 1.68 (15.76)** (-1.03) 5 46.3 0.16 0.54 3.41 23.59 (9.59)** (4.86)** 6 54.82 0.01 0.01 0.71 1.65 54.11 (23.71)** (1.67) (0.99) 7 70.63 0.01 -1.97 0.84 2.05 33.21 (13.91)** (5.08)** (-2.89)* 8 69.48 0.019 -2.25 0.05 0.76 2.46 21.35 (10.80)** (3.59)** (-2.73)* (0.39) 9 63.85 0.01 0.02 -1.17 0.93 1.38 48.16 (17.12)** (2.39)* (0.49) (-2.36)*
Notes: i. Figures in parentheses are t-values. ii. The asterisk signs (**) and (*) indicate that the results are significant at 1 percent and 5 percent level respectively. iii. Dependent variable is poverty alleviation.
Table 5 shows that the beta However, the beta coefficients for coefficients for remittance inflow are unemployment rate are negative and positive and significant with poverty significant with poverty alleviation. It alleviation. It indicates that increase in indicates that decrease in industrial total remittance inflow leads to increase in production leads to increase in the poverty alleviation. This finding is percentage of poverty alleviation. This consistent with the findings of Pradhan et finding is similar to the findings of Grogan al. (2008). Similarly, the beta coefficients et al. (2013) for per capita income are positive and 4. Summary and conclusion significant with poverty alleviation. It Remittance is the flow of money indicates that higher the per capita income, from migrants abroad to their families in higher would be the percentage of poverty their country of origin. The flows of alleviation. This finding is similar to the remittance has increased significantly findings ofRavallion and Chen (2008). during recent decades and is expected to
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 continue increasing into the foreseeable observations for the period of 1995/96 to future as more people migrates in response 2014/15. to globalization and increasing wage The study shows that remittance inflow, differences. Remittance means the transfer broad money supply, foreign aid, industrial of funds from international migrants to production, inflation, and foreign direct their family members in their home investment have positive and significant country. It is different from other external impact on gross domestic product. capital inflow like foreign direct Similarly, remittance inflow, per capita investment, foreign loans and aids. Foreign income, consumption and literacy rate remittance is the source of poverty have positive impact on poverty reduction, better health care and education. alleviation. However, unemployment rate Remittance is the main source of has negative impact on liquid poverty increasing investment and consumption in alleviation. The study concludes that total recipient countries. The increase in remittance helps in the economic growth investment and consumption is the sign of of Nepal. The study also concludes that economic development. remittance followed by money supply and This study attempts to examine the impact industrial production is the most of remittance on economic growth and influencing variable for the economic poverty alleviation in Nepal. The study is growth of Nepal. based on secondary data of 20 References 9. Catrinescu, N., M. Leon-Ledesma, M. Piracha, 1. Adams, R. H., & J. Page (2005). Do & B. Quillin (2009). Remittances, institutions, international migration and remittances reduce and economic growth. World poverty in developing countries?. World Development, 37(1), 81-92. development, 33(10), 1645-1669. 10. Chami, R., C. Fullenkamp, & S. Jahjah (2005). 2. Anyanwu, J. C. (2011). International Are immigrant remittance flows a source of remittances and income inequality in capital for development?. IMF Staff Africa. Review of Economic and Business papers, 52(1), 55-81. Studies, 4(1), 117-148. 11. Dowling, M. and U. Hiemenz (1982). Aid, 3. ArefAssaf, A. (2015). Workers‘ remittances savings and growth in the Asian region. and economic growth: Evidence from Economic Office Report Series 3, ADB, Jordan. European Scientific Journal, Manila. ESJ, 11(25). 40-54. 12. Durand, J. (1996). Migradollars and 4. Aurangzeb ,D., and A. UI-Haq (2012). Impact Development: A reconsideration of the of investment activities on economic growth of Mexican case. International Migration Review, Pakistan. Business and Management Review, 30(2), 423-444. 2(1), 92-100. 13. El-Sakka, M. I., & R. McNabb (1999). The 5. Azam, M., and Khan, A. (2011). Workers‘ macroeconomic determinants of emigrant remittances and economic growth: Evidence remittances. World Development, 27(8), 1493- from Azeerbaijan and America. Global 1502. Journal of Human Social Science, 2(7), 41-46. 14. Faini, R. (2002). Migration, remittances and 6. Borensztein, E., D. J. Gregorio, & J. W. growth. International Migration and Asylum, Lee (1998). How does foreign direct 3(1), 27-28. 15. Fayissa, B., & Nsiah, C. (2010). The impact of investment affect economic growth? remittances on economic growth and Journal of International Economics, 45 development in Africa. The American (1), 115-135. Economist, 55(2), 92-103. 7. Brown, R, P. C., and Ahlburg, D. A. (1997). 16. Fischer S.(1993). The role of macroeconomic Are migrant's remittances sensitive to changes factors in growth. Journal of Monetary in their income? Discuss Paper 217, Economics, 32(2), 45-66. Department of Economics, University of 17. Gaudel, Y. S. (2006). Remittance income in Queenland, Brisbane. Nepal: Need for economic 8. Burgess, R. and H. Vikram (2005). Migration development. Journal of Nepalese Business and foreign remittances in the Philippines. IMF Studies, 3(1), 9-17. Working Paper. WP/05/111. 18. Giuliano, P., & M. Ruiz-Arranz (2009). Remittances, financial development, and
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46. Pegkas, P. (2015). The impact of FDI on growth. Periodica Polytechnica. Social and economic growth in Eurozone countries. Management Sciences, 21(1), 3-19. The Journal of Economic Asymmetries, 12 53. Sofranko, A.J. & K. Idris (1999). Use of (1), 124-132. overseas migrants‘ remittances to the extended 47. Pradhan, G., M. Upadhaya, & K. Upadhaya family for business investment. A research (2008). Remittances and economic growth in note. Rural Sociology. 64 (3), 464-481. developing countries. The European Journal of 54. Spatafora, N. (2005). Two current issues Development Research. 20(2), 497-506. facing developing countries. In world 48. Rajan, R.and A. Subramanian. (2005). What economic outlook: A survey by the staff of the undermines Aid‘s impact on growth. International Monetary Fund. Social and International Monetary Fund Working Paper Economic Policy Working Paper 137. 05/126. 55. Tehseen, J. S., & S. A. Raza (2012). Workers' 49. Ramirez, M. D., & H. Sharma (2008). remittances and economic growth in China and Remittances and growth in Latin America: A Korea: An empirical analysis. Journal of panel unit root and panel co-integration Chinese Economic and Foreign Trade analysis.Department of Economics Yale Studies, 5(3), 185-193. University, Working Paper No. 51. 56. Thagunna, K. S., and Acharya, S. (2013). 50. Ravallion, M., S. Chen., and P. Sangraula Empirical analysis of remittance inflow: The (2008). Dollar a day revisited, World Bank case of Nepal. International Journal of policy. Research Working Paper 4620. Economics and Financial Issues, 3(2), 337- 51. Rodrick, D. (2008). The real exchange rate and 344. economic growth. Brookings Papers on 57. Waheed, A. & A. Aleem (2008). Workers‘ Economic Activity, 8(2), 365-412. remittances and economic growth: Empirical 52. Shera, A., & D. Meyer (2013). Remittances evidence from Pakistan. Journal of Social and their impact on economic Science and Humanities, 47(1), 1-12.
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IMPACT OF CORPORATE GOVERNANCE ON DIVIDEND POLICY OF NEPALESE ENTERPRISE
RADHE S. PRADHAN NITESH RAJ BARTAULA OM SHRESTHA Uniglobe College, Pokhara Uniglobe College, Pokhara Uniglobe College, Pokhara University, Nepal University, Nepal University, Nepal
POOJA GNAWALI POSHAN LAMICHHANE PRATIKSHA PARAJULI Uniglobe College, Pokhara Uniglobe College, Pokhara Uniglobe College, Pokhara University, Nepal University, Nepal University, Nepal
Abstract This study examines the relationship between corporate governance and dividend policy of Nepalese enterprises. The dividend payout and dividend yield are the selected dependent variables. Firm size, liquidity, CEO duality, return on assets, foreign ownership, gender diversity on board, managerial ownership, institutional ownership and leverage are the independent variables. The study is based on 126 observations of 14 Nepalese commercial banks and 7 insurance companies for the period of 6 years from 2010/2011 to 2015/2016. The data are collected from the annual reports of selected Nepalese commercial banks and insurance companies. The multiple regression models are performed to test the significance and impact of corporate governance on the dividend policy of Nepalese enterprises.The study reveals that firm size and foreign ownership are positively related to company‟s dividend policy (DPR and DY).This indicates that higher the firm size and higher the foreign ownership, greater would be the company‟s dividend policy (DPR and DY).The regression results show that institutional ownership has negative impact on the dividend payout ratio and dividend yield. It means that decrease in institutional ownership leads to increase in dividend payout ratio and dividend yield. Keywords: Dividend payout, dividend yield, firm size, liquidity, returns on assets, foreign ownership, and managerial ownership.
1. Introduction The good corporate governance helps Corporate governance (CG) is the in enhancing firm‘s performance. This is process which facilitates the creation of evident by the increasing attention being shareholder‘s value, protection of the given to matters of corporate governance by individual and collective interests of all governments, regulatory bodies, regional stakeholders. The concept of corporate bodies, and private institutions (Tornyeva governance is defined as dealing with the and Wereko, 2012). Corporate governance ways in which suppliers of finance to refers to the way an organization is directed, corporations governance has a positive administrated or controlled. It includes the impact on organizational performance set of rules and regulations that affect the (Claessen, 2009). manager‘s decision and contribute to the Corporate governance has become a way company is perceived by the current contemporary issue because of its enormous and potential stakeholders. contribution to the economic growth and The corporate governance structure development of nations (Tornyeva and specifies the distribution of rights and Wereko, 2012). Effective governance is responsibilities among different participants critical to all economic relations especially in the corporation such as; boards, managers, in emerging and transition economies shareholders and other stakeholders and (Dharwardkar, 2000). spells out the rules and procedures and also
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 decision making assistance on corporate structure on firm‘s dividend policy. It is affairs (Thuraisingam, 2013). found that firm size and profitability explain Corporate governance refers to set of firm dividend policy. Firm size has a rules and incentives by which the negative relationship with the dividend management of a company is directed and payout ratio and dividend yield. It indicates controlled (Velnampy, 2013). While the larger the firm, the more likely it is to retain objective of the corporation‘s shareholder is cash to pay off its liabilities (Bushra and a return on their investment, managers are Mishra, 2015). likely to have other goals, such as power and Likewise, there is a negative prestige of running a large and powerful relationship between managerial ownership organizations, or entertainment perquisites and dividend payout (Rozeff, 1982; Jensen of their position. In this situation, managers et al., 1992 and Eckbo & Verma, 1994). It superior access to inside information and the means that firms with higher managerial relatively powerless position of the ownership tend to increase internal funds at numerous and dispersed shareholders, mean the expense of low dividend payouts in order that managers are likely to have upper hand to finance investments. The managers are (Jensen, 1983). reluctant to pay dividend (Jensen, 1986). Corporate governance is seen as an However, both managerial ownership and essential mechanism helping the company to dividends resolve agency problems (Chen attain its corporate objectives and and Steiner, 1999, Kim et al., 2007). monitoring performance in achieving these Similarly, Jensen et al. (1992) found a objectives (Mallin, 2013). negative relationship between leverage and Corporate governance refers to a set dividends. of rules and incentives by which the A firm acquiring debt will have fixed management of a company is directed and financial charges, interests and repayment of controlled. Good corporate governance principals and thus leads the firm into maximizes the profitability and long term liquidation. As a consequence, the firm has value of the firm for the shareholders tendency to pay lower dividends to maintain (Heenetigala, 2011 ). The concept of good liquidity position and cash flow. There corporate governance presumes a is a significant positive relationship between fundamental tension between shareholders total foreign ownership and dividend policy and corporate managers (Meckling, 1976). and significant negative relationships Dividend payment is a major component of between managerial ownership and dividend stock return to shareholders. Dividend policy (Aydin and Cadvar, 2015). payment could provide a signal to the According to Kulathunga (2017), investors that the company is complying there is a significant relationship between with good corporate governance practices corporate governance variables and dividend (Jo and Pan, 2009). policy. Board independence, CEO duality Lee (2009) found that there is a and return on assets have significant positive positive relationship between the bank‘s impact on dividend policy and size of the profitability, bank‘s size, and the dividend board has negative impact on dividend payout. Likewise, the profitability, leverage, policy. The foreign investors with strong changes in dividends and collateral capacity monitoring incentives lead firms to pay more had a positive significant impact on the dividends (Gong, 2015). dividend policies of banks in Ghana The relationships between (Yiadom and Agyei, 2011). independent nonexecutive directors, board Similarly, Ekanayake and Parantham size, CEO, proportion of family member on (2010) stated that there is a positive impact board and concentrated ownerships and of CEO duality on firm‘s dividend policy dividend payout (Shehu, 2015). Board size, and there is a negative impact of ownership board composition, CEO tenure and
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 management equity holding have a weak earnings ratio, and dividend yield have a negative relationship with dividend payout negative impact. (Ikunda et al.,2016). The study found that there is a Further, the study found that board positive relationship between dividend and composition and managerial equity holding stock price. Dividend per share is motivating were found to have no statistical significant factor in Nepalese financial sector. It is impact on the dividend payout. Board size, strong enough to increase MPS of the board independence, CEO duality, return on banking and non-financial firms (Joshi, assets (ROA) and debt-to total assets 2011). variables align with the corporate The above discussion reveals that governance and dividend policy (Ajanthan, there is no consistency in the findings of 2013). The results of the study suggested various studies concerning the impact of that only CEO duality is negatively related corporate governance on dividend policy. to dividend payout whereas board size, The major objective of the study is to board independence, return on assets and assess the relationship between corporate debt-to-total assets do not appear to be governance and dividend policy in Nepalese significantly related to the dividend payout. enterprises. More specifically, it examines In Nepalese context, Pradhan (2003) the impact of firm size, liquidity, CEO examined that major motive for paying cash duality, return on assets, foreign ownership, dividends is to convey information to gender diversity on board, managerial shareholder about favorable prospects of the ownership and leverage on dividend policy enterprise. of Nepalese enterprises. Pradhan and Balampaki (2004) found The remainder of this study is that the size has a negative impact on organized as follows: Section two describes dividend yield. Dhungel(2011) revealed that the sample, data and methodology. Section it is unclear about the relationship between three presents the empirical results and the market price per share and dividend per final section draw conclusions and discuss share in the context of Nepal. the implications of the study findings. According to Adhikari (2013), size 2. Methodological aspects and liquidity are major determinants of The study is based on the secondary corporate dividend payout in Nepal. This data which were collected from 14 study also reveals that there is sector specific commercial banks and 7 insurance importance of the determinants of corporate companies in Nepal. The main sources of dividend payout in Nepal. data are annual reports of the selected Manandhar (1998) Nepalese commercial banks and insurance revealed that dividend per share and returns companies. Table 1 shows the list of banks on equity have a positive impact on market and non-banks selected for the study along capitalization while earning per share, price with the study period and number of observations. Table 1: Number of commercial banks and insurance companies selected for the study along with study period and number of observations S.N Name of enterprises Study period Observations 1 Nabil Bank Limited 2010/11-2015/16 6 2 Nepal SBI Bank Limited 2010/11-2015/16 6 3 Nepal Bangladesh Bank Limited 2010/11-2015/16 6 4 Everest Bank Limited 2010/11-2015/16 6 5 Himalayan Bank Limited 2010/11-2015/16 6 6 Kumari Bank Limited 2010/11-2015/16 6 7 Machhapuchchhre Bank Limited 2010/11-2015/16 6
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8 Laxmi Bank Limited 2010/11-2015/16 6 9 Nepal Investment Bank Limited 2010/11-2015/16 6 10 Standard Chartered Bank Limited 2010/11-2015/16 6 11 Citizens International Bank Limited 2010/11-2015/16 6 12 Siddhartha Bank Limited 2010/11-2015/16 6 13 Global IME Bank Limited 2010/11-2015/16 6 14 Nepal Bank Limited 2010/11-2015/16 6 15 Sagarmatha Insurance 2010/11-2015/16 6 16 Shikhar Insurance 2010/11-2015/16 6 17 LIC Insurance 2010/11-2015/16 6 18 Premier Insurance 2010/11-2015/16 6 19 Himalayan General Ltd. 2010/11-2015/16 6 20 Asian Insurance 2010/11-2015/16 6 21 Gurans Life Insurance 2010/11-2015/16 6 Total observations 126 Thus, this study is based on 126 observations.
The model FS = Firm size of the banks refers to the The model estimated in this study total assets of firms. assumes that the dividend policy depends on IO =Institutional ownership represent shares bank and insurance specific and macro held by institutional investors such as banks variables. Therefore, the study has used the and insurance companies. following model: FORTOT = Total foreign ownership is Dividend policy=ƒ (firm size, defined as the ownership of foreign investor liquidity, CEO duality, return on assets, in Nepalese enterprise. foreign ownership, gender diversity on LEV = Total debt to total shareholders‘ board, managerial ownership, institutional equity. ownership and leverage) CEOD = 1 if CEO is chairman as well and 0 More specifically, the given model if otherwise. has been segmented into following models: MO =Managerial ownership is defined as Model I the total percentage of equity held by inside DPR = β0 + β1MO + β2LIQ + shareholders that take part in the company‘s β3CEOD + β4FORTOT + β5FS + β6BGD + management. β7IO+ β8LEV+β9ROA+ e LIQ=Liquidity is defined as the degree to Model II which an asset or security can be bought or DY = β0 + β1MO + β2LIQ + sold in the market without affecting the asset β3CEOD + β4FORTOT + β5FS + β6BGD + price. β7IO+ β8LEV+β9ROA+ e ROA = Return on assets is defined as net Where, profit after tax to total assets. DPR = Dividend payout ratio is Firm size defined as dividend per share to earnings per A total asset has been used as a share. measure of firm size. Lintner (1956) DY = Dividend yield is defined as revealed that firm size has negative impact dividend per share divided by market per on company‘s dividend policy. Similarly, share. there is negative relationship between firm GD = Gender diversity refers to the size and dividend payout ratio (Twaijry, number of women directors in a board. 2007). Likewise, Asghar et al. (2011) stated that firm size negatively influences on the
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dividend policy. However, Nasir et al., H3: There is a positive relationship between (2010) found that firm size is positively foreign ownership and company‟s dividend related to dividend payout ratio. Based on it, policy. this study develops the following Gender diversity on board hypothesis: Women in the BOD mean different H1: There is negative relationship between perspectives and point of views on issues firm size and company‟s dividend policy. hence the potential to increase the value for Liquidity shareholders according to the work of Liquidity refers to the ease with (Campbell and Vera, 2007). Both Terjesen which an investment asset (stock, bond, and et al. (2015) and Luckerath-Rovers (2013) mutual funds) can be converted into cash in found positive relationship between the a short period of time without a significance number of women on the board and the decrease in its value (Eljelly, 2004). Jensen performance. Likewise, Adams (2008) and Meckling (1976) found that higher argued that presence of diversity in gender liquidity leads to higher dividend payment. may also increase the efficiency of banks. Likewise, Ho (2003) found that liquidity is Female directors on the board are more positively related to dividend policy. likely to prevent management‘s Similarly, Alli and Ramirez (1993) found opportunistic behaviors by supporting more that dividend payment depend upon cash dividend payouts. Bilimoria (2000) revealed flow and current earnings do not really that women directors are valued as board reflect a firm‘s ability to pay dividend. members for their productive discourse. Based on it, this study develops the Based on it, this study develops the following hypothesis: following hypothesis: H2: There is a positive relation between H4: There is a positive relationship between liquidity level and company‟s dividend gender diversity on board and company‟s policy. dividend policy. Foreign ownership CEO duality Foreign ownership in bank is the According to Asamoah (2005), CEO state of being portion owned by a person or duality means the situation when the CEO company from another country. Foreign also holds the position of the chairman of ownership (FO) has a significant positive the board. The board of directors is association with the dividend payout ratio. appointing to monitor managers such as the Hence, the higher is the foreign ownership CEO on the behalf of the shareholders. Abor in the firm the higher will be dividend and Fiador (2013) found a negative payment. La Porta et al. (2000) found that relationship between CEO duality and foreign ownership has a positive impact on dividend payout. This could be explained dividend payment. The study reveals the that when CEO doubles as board chair, it importance of foreign shareholding on affords the CEO a greater opportunity to dividend policy that a company adopts. influence the decisions made by the board. However, Lam et al. (2012) found that Based on it, this study develops the foreign ownership has significantly negative following hypothesis: effect on cash dividends. Baba (2009) H5: There is a negative relationship between showed that if a firm has paid dividends, it CEO duality and company‟s dividend policy. will have a higher proportion of foreign Institutional ownership ownership. It means that if a firm increases The institutional ownership refers (decreases) dividend payment, foreign shares held by institutional investors such as ownership will increase (decrease). Based banks and insurance companies. Eckbo and on it, this study develops the following Verma (1994) found that institutional hypothesis: investors prefer free cash flow to be distributed in form of dividends. However,
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 institutional owners are expected to have a using its assets to generate earnings. Belanes negative effect on both dependent variables et al. (2007) found that return on assets is mainly because such firms tend to pay positively related to dividend yield. dividends in order to reduce the cost of H8: There is a positive relationship between agency conflict (Jensen, 1986 and Rozeff, managerial ownership and company‟s 1982). Similarly, Renneboog and Szilagyi dividend policy. (2008) found that highly concentrated Leverage institutional ownership has a negative effect Leverage represents a firm‘s on dividend payouts. Similarly, According leverage, measured by short-term and long- to Shleifer and Vishny (1986), institutional term debt divided by total assets. It is ownership creates the incentives to monitor assumed that leverage, that is, total debt to management, thereby overcomes the free- total assets play a significant role in rider problem. Similarly, Wiberg (2008) determining the firm performance. Bhaduri found the positive relationship between (2002) found that leverage is positively institutional ownership and dividend policy. related to dividend policy. However, Al- Based on it, this study develops the Malkawi (2007), Patra et al. (2012) and Al- following hypothesis: Najjar (2009) found that leverage is H6: There is a negative relationship between negatively related to dividend payments institutional ownership and company‟s because firms with more debt prefer to dividend policy. retain more in order to repay loan instead of Managerial ownership paying more dividends. Similarly, Jensen et Managerial ownership refers to the al. (1992) found negative relationship total percentage of equity held by inside between leverage and dividends. Based on shareholders that take part in the company‘s it, this study develops the following management. Jensen (1986) found the hypothesis: positive relationship between managerial H9: There is a negative relationship between ownership and dividend policy. However, leverage and company‟s dividend policy. Chen et al. (2005) found a negative 2. Results and discussion relationship between managerial ownership Descriptive statistics and dividend policy. Similarly, Jensen et al. Table 2 presents the descriptive statistics of (1992) show that insider ownership is selected dependent and independent associated with lowers dividend payout. variables during the period 2010/11 to Likewise, there is negative relationship 2015/16. between insider ownership and dividend Table 2: Descriptive statistics payout (Rozeff, 1982; Perry and Rimbey, This table shows the descriptive 1995 and Zhang and Keasey, 2002). statistics of dependent, independent and However, Abdullah et al. (2012) found control variables of commercial banks and concentrated ownership has a significant insurance companies for the study period of positive influence on dividend policy. Based 2010/11 to 2015/16. DPR(Dividend payout on it, this study develops the following ratio is defined as dividend per share to hypothesis: earnings per share, in percentage), DY H7: There is a negative relationship between (Dividend yield is defined as dividend per managerial ownership and company‟s share divided by market per share, in dividend policy. percentage), GD(Gender diversity refers to Return on assets the number of women directors in a board), According to Asamoah (2005), FS(Firm size of the banks refers to the total return on assets (ROA) means an indicator assets of firms, in Billion) , IO (Institutional of how profitable an organization is relative ownership represent shares held by to its total assets. ROA provides information institutional investors such as banks and regarding how efficient management is at insurance companies, in percentage),
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FORTOT (Total foreign ownership is take part in the company‟s management, in defined as the ownership of foreign investor percentage), LIQ(Liquidity is defined as the in Nepalese enterprise, in percentage), LEV( degree to which an asset or security can be Leverage is defined as total debt to total bought or sold in the market without shareholders‟ equity, in affecting the asset price, in times), percentage)CEOD(1 if CEO is chairman as ROA(Return on assets is defined as net well and 0 if otherwise ), MO(Managerial profit after tax to total assets, in ownership is defined as the total percentage percentage). of equity held by inside shareholders that
Table 2: Descriptive statistics Variables Minimum Maximum Mean Std. Deviation DY 0.00 16.93 1.29 2.73 DPR 0.00 45.94 4.56 10.13 FS 0.17 129.89 37.48 33.07 MO 0.00 1.00 0.31 0.46 LIQ 0.04 0.56 0.19 0.12 GD 0.00 2.00 0.17 0.43 IO 0.00 80.00 19.95 21.42 FORTOT 0.00 75.00 14.28 23.06 ROA -0.07 4.01 1.16 0.97 LEV 0.04 1.08 0.74 0.29
Table 2 shows that average dividend percent and a maximum value of 4.01 yield has a minimum value of 0 percent and a percent. Similarly, average value of gender maximum value of 16.93 percent with diversity on board is observed to be 0.17 average value of 1.29 percent. The average percent with a minimum value of 0 percent value dividend payout is noticed to be 4.56 and a maximum value of 2 percent. Likewise, percent with a minimum value of zero the average value of institutional ownership percent and a maximum value of 45.94 of selected companies during the study percent. Likewise, the size varies from a period is noticed to be 19.95 percent with a minimum of Rs.18.95 in million to a minimum value of 0 percent and a maximum maximum value of Rs.25.59 in million value of 80 percent. leading to an average of Rs.23.33 million. Correlation analysis Similarly, liquidity varies from a minimum Having indicated the descriptive statistics, value of 0.05 times to a maximum value of Pearson‘s correlation coefficients are 0.56 times leading to an average value of computed and the results are presented in 0.19 percent. The average value of leverage Table 3. is observed to be 0.74 percent with a Table 3: Pearson’s correlation coefficients minimum value of 0.04 percent and matrix for enterprises maximum value of 1.08 percent. Similarly, This table shows the Pearson correlation average value of managerial ownership is coefficients of dependent and independent observed to be 0.31 percent with a minimum variables of selected Nepalese commercial value of 0 percent and a maximum of 1 banks and insurance companies for the percent. Likewise, average value of total study period of 2010/11 to 2015/16. foreign ownership is observed to be 14.28 DPR(Dividend payout ratio is defined as percent with a minimum value of 0 percent dividend per share to earnings per share, in and a maximum of 75 percent. The average percentage), DY (Dividend yield is defined value of return on assets is observed to be as dividend per share divided by market per 1.16 percent with a minimum value of -0.07 share, in percentage), GD(Gender diversity
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 refers to the number of women directors in a CEOD( 1 if CEO is chairman as well as 0 if board), FS(firm size of bank refers to the otherwise ), MO(Managerial ownership is total assets of firms, in Billion rupees), IO defined as the total percentage of equity (Institutional ownership represent shares held by inside shareholders that take part in held by institutional investors such as banks the company‟s management, in percentage), and insurance companies, in percentage), LIQ(Liquidity is defined as the degree to FORTOT (Total foreign ownership is which an asset or security can be bought or defined as the ownership of foreign investor sold in the market without affecting the asset in Nepalese enterprise, in percentage), LEV( price, in times), ROA(Return on assets is Leverage is defined as total debt to total defined as net profit after tax to total assets, shareholder‟s equity, in percentage) , in percentage).
Table 3: Pearson’s correlation coefficients matrix for enterprises Variables DY DPR FS MO LIQ CEO GD IO FORT ROA L D OT E V DY 1
DPR 1 .096 FS .287* .304* * * 1 MO .410* 1 -.189* .212* * LIQ - - - 1 .235** 0.188 .418* .297* * * * CEOD - 1 .376* .414* -.094 .111 .305* * * * GD .298* - 1 -.108 .120 .142 .157 * .198* IO .251* - 1 -.110 -.127 -.086 .120 .057 * 0.015 FORTO - 1 .523* .551* .548* .513* .352* T .098 .303* .008 * * * * * * ROA - 1 - .548* .695* .524* .440* .237* .413* .045 .652** .236** * * * * * * LEV - 1 - .245* .599* .383* .305* .233* .266* .663* .431* .363** .311** * * * * * * * * Notes: The asterisk signs (**) and (*) indicate that the results are significant at 1 percent and 5 percent level respectively.
The result shows that liquidity and ownership are negatively related to dividend firm size are positively related to dividend yield. It indicates that increase in managerial yield. This indicates that higher the liquidity and institutional ownership leads to decrease and firm size, higher would be the dividend in dividend yield. Similarly, CEO duality is yield. Likewise, foreign ownership is also negatively related to dividend yield. It positively correlated to dividend yield. It implies that the firm having different CEO indicates that increase in foreign ownership and chairman of the board has high dividend leads to increase in dividend yield. However, yield. Likewise, gender diversity is also managerial ownership and institutional negatively related to dividend yield. It means
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 that smaller the number of women directors, chairman of the board as the same person higher would be the dividend yield. has high dividend payout ratio. Similarly, return on assets and leverage are Table 4: Estimated regression results of negatively related to dividend yield. It FS, MO, LIQ, CEOD, GD, IO, FORTOT, indicates that lower the return on assets and ROA and LEV on dividend payout ratio leverage, higher would be the dividend yield. The results are based on pooled The table shows that liquidity and cross-sectional data of 14 commercial banks institutional ownership are negatively related and 7 insurance companies with 126 to dividend payout ratio. It indicates that observations by using linear regression higher the liquidity and institutional model. The results are based on the 6 years ownership, lower would be the dividend (2010-2016) time series data of Nepalese payout ratio. However, the result also shows enterprises by using the linear regression that firm size is positively correlated to model. The model is DPR = β0 + β1MO + dividend payout ratio. This means that larger β2LIQ + β3CEOD + β4FORTOT + β5FS + the firm size, higher would dividend payout β6BGD + β7IO+ β8LEV+ β9ROA+ e. ratio. Likewise, managerial ownership and Dividend payout ratio and dividend yield foreign ownership are positively correlated both refer to dividend policy. DPR(Dividend to dividend payout ratio. It indicates that payout ratio is defined as dividend per share increase in managerial ownership and to earnings per share, in percentage), DY foreign ownership leads to increase in (Dividend yield is defined as dividend per dividend payout ratio. Similarly, CEO share divided by market per share), duality is also positively related to dividend GD(Gender diversity refers to the number of payout ratio. It implies that the firm having women directors in a board, in percentage), CEO and chairman of the board as the same FS( firm size of bank refers to the total person has high dividend payout ratio. assets of firms, in Billion rupees) , IO Likewise, gender diversity is also positively (Institutional ownership represent shares related to dividend payout ratio. It means held by institutional investors such as banks that larger the number of women directors, and insurance companies, in percentage), higher would be the dividend payout. FORTOT (Total foreign ownership is Similarly, return on assets and leverage are defined as the ownership of foreign investor positively related to dividend payout ratio. It in Nepalese enterprise, in percentage), LEV( indicates that higher the return on assets and Leverage is defined as total debt to total leverage, higher would be the dividend shareholder‟s equity, in percentage) ), payout ratio. CEOD( 1 if CEO is chairman as well as 0 if Regression analysis otherwise ), MO(Managerial ownership is Having indicated the correlation defined as the total percentage of equity held coefficients, regression analysis has been by inside shareholders that take part in the performed and the results are presented in company‟s management, in percentage), Table 4. LIQ(Liquidity is defined as the degree to Table 4 shows that the beta which an asset or security can be bought or coefficient for firm size is positive which sold in the market without affecting the asset shows that smaller the firm size, smaller price, in times), ROA(Return on assets is would be the dividend payout ratio. The defined as net profit after tax divided by total beta coefficient for managerial ownership is assets, in percentage). positive which indicates that lower the managerial ownership, lower would be the dividend payout ratio. Likewise, the beta coefficient for CEO duality is positive which shows that the firm having CEO and
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Table 4: Estimated regression results of FS, MO, LIQ, CEOD, GD, IO, FORTOT, ROA and LEV on dividend payout ratio
R L FOR Adj Model Intercept FS MO LIQ CEOD GD IO O E SEE F-value TOT R2 A V 1.07 0.09 1 0.85 9.69 12.66 -0.82 (3.56)** 3.13 4.63 2 0.04 9.94 5.85 (2.94)** (2.42)* 7.54 -15.34 3 0.03 9.99 4.52 (4.59** (-2.12)* 2.58 9.25 4 0.13 9.43 20.38 (2.72)** (4.51)** 4.09 2.8 5 0.006 10.1 1.81 (4.25)** -1.34 5.76 -0.06 6 0.008 10.09 2.02 (4.68)** (-1.42) 0.23 1.28 7 (6.83) 0.27 8.67 46.72 -1.41 ** 5.7 -2.04 (7. 8 0.29 8.51 53.16 (-1.73) 29) **
Notes: i. Figures in parentheses are t- values. ii. The asterisk signs (**) and (*) indicate that the results are significant at 1 percent and 5 percent level respectively. iii. Dependent variable is dividend payout ratio.
However, the beta coefficient for leveraged the firm is, higher would be the liquidity is negative which indicates that dividend payout ratio.Table 5 shows the lower the liquidity, higher would be the regression results of firm size, liquidity, dividend payout ratio. The beta coefficient CEO duality, return on assets, foreign for gender diversity on board is positive. It ownership, gender diversity on board, indicates that larger the number of female managerial ownership, institutional directors on board, higher would be the ownership and leverage on dividend yield of dividend payout ratio. This finding is similar Nepalese enterprise. to the findings to the (Adams, 2008). Table 5: Estimated regression results of Likewise, beta coefficient for return on FS, MO, LIQ, CEOD, GD, IO, FORTOT, assets is positive. This means that higher the ROA and LEV on dividend yield return on assets, higher would be the The results are based on pooled dividend payout ratio. cross-sectional data of 14 commercial banks Similarly, beta coefficient for foreign and 7 insurance companies with 126 ownership is positive. It implies that higher observations by using linear regression the foreign ownership of the company, model. The results are based on the 6 years higher would be the dividend payout ratio. (2010-2016) time series data of Nepalese Similarly, beta coefficient for institutional enterprises by using the linear regression ownership is negative. It implies that higher model. The model is DPR = β0 + β1MO + the institutional ownership of the company, β2LIQ + β3CEOD + β4FORTOT + β5FS + lower would be the dividend payout ratio. β6BGD + β7IO+ β8LEV+ β9ROA+ e. Nonetheless, the beta coefficient for DPR(Dividend payout ratio is defined as leverage is positive which shows that more dividend per share to earnings per share),
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DY (Dividend yield is defined as dividend CEOD(A binary that equal one if the CEO is per share divided by market per share), chairman of the board and zero otherwise), GD(Gender diversity refers to the number of MO(Managerial ownership is defined as the women directors in a board), FS( firm size total percentage of equity held by inside of bank refers to the total assets of firms) , shareholders that take part in the company‟s IO (Institutional ownership represent shares management), LIQ(Liquidity is defined as held by institutional investors such as banks the degree to which an asset or security can and insurance companies), FORTOT (Total be bought or sold in the market without foreign ownership is defined as the affecting the asset price), ROA(Return on ownership of foreign investor in Nepalese assets is defined as net profit after tax to enterprise), LEV( Leverage is defined as total assets) total debt to total shareholder‟s equity ), Table 5: Estimated regression results of FS, MO, LIQ, CEOD, GD, IO, FORTOT, ROA and LEV on dividend yield Mo Inter Regression Ad del cept SE j F M CE G FORT LE E FS LIQ IO ROA R2 O OD D OT V - 2.19 0.02 0.7 2. 11 1 (- (6.16) 5 62 .2 3.34 ** )** - 1.64 1.1 1 0.0 2. 4. 2 (- 28 69 57 (5.69) 2.1 ** 4)* 0.32 5.18 0.0 2. 7. 3 (- (2.70 48 66 27 0.75) )** - 1.43 0.62 0.0 2. 1. 4 (- (5.22) 01 73 1 1.05 ** ) - 1.41 0.6 8 0.0 2. 1. 5 (- 04 72 46 (5.52) 1.2 ** 1) - 1.58 0.0 1 0.0 2. 1. 6 (- 04 72 51 (4.74) 1.2 ** 3)
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1.46 -0.01 0.0 2. 1. 7 (5.12) (-1.10) 2 73 21 ** 2.06 -0.66 0.0 2. 7. 8 (5.58) (2.70 48 66 29 ** )** - 3.46 2.93 4 2. 13 9 0.9 (- 6 .3 (5.44) 3.65 ** )** - - 1.53 0.3 2.83 -0.03 0.02 7 0.7 2. 3. 10 (- (- 3 63 45 (2.29) (- 1.64 0.6 -1.33 * 0.08) ) 2) - - 3.30 0.02 -0.06 2.00 0.01 0.0 2. 3. 11 (4.99) (- (- (- -0.90 8 61 26 ** 1.54 0.15) 1.72 ) ) Notes: i. Figures in parenthesis are t-values ii. The asterisk signs (**) and (*) indicate that the results are significant at 1 percent and 5 percent level respectively. iii. Dividend yield is dependent variable.
Table 5 shows that the beta yield. The beta coefficient for gender coefficient for liquidity is positive. This diversity on board is negative which means that higher the liquidity, higher would indicates that smaller the number of female be the dividend yield. This finding is similar directors on board, higher would be the to the findings of (Ho, 2003). However, the dividend yield. Likewise, beta coefficient for beta coefficient for managerial ownership is return on assets is negative which shows that negative. It indicates that higher the lower the return on assets, higher would be managerial ownership, lower would be the the dividend yield. Similarly, beta dividend yield. The beta coefficient for coefficient for leverage is negative. It foreign ownership is positive which shows implies that higher the leverage of the that higher the foreign ownership of the company, lower would be the dividend company, higher would be the dividend yield. This finding is similar to the findings yield. to the (Patra et al., 2012) Likewise, the beta coefficient for 4. Summary and conclusion institutional ownership is negative. It implies The dividend per share and dividend yield that higher the institutional ownership, lower becomes one of the attractive tools for both would be the dividend yield. The table existing and potential investors. It is not only shows that the beta coefficient for CEO demanded by the high class investors, but duality is negative. It indicates that firm also attracted the interest of small investors. having both CEO and chairman of the board The high rate of dividend per share and as the different person has high dividend dividend yield pushes the investors to invest
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 in stocks, but many of them do not have observations for the period of 2010/11 to much knowledge about its operations and 2015/16. factors affecting dividend policy. There are The study shows that firm size and various internal and external factors that foreign ownership are positively related to influence the dividend policy. The financial dividend payout ratio and dividend yield. performance of companies are the most This indicates that larger the firm size and essential factors that can give visibility to higher the foreign ownership, higher would investors which plays a significant role to be the dividend payout ratio. It also indicates gain reliable and consistent return by that smaller the firm size and smaller the selecting winning portfolio. foreign ownership, smaller would be the This study attempts to examine the dividend yield. The regression results show relationship between firm‘s performance and that institutional ownership has negative dividend policy in Nepalese commercial impact on the dividend banks and insurance companies. This study is based on secondary data of 14 commercial banks and 7 insurance companies with 126 payout ratio and dividend yield. evidence from Ghana. SSRN Electronic References Journal, 3(2), 1-22. Abdullah, N. M. H., Z. Ahmad, and S. Aydin, A. D., and Cavdar, S. C. (2015). Roslan (2012). The influence of ownership Corporate governance and dividend structure on the firms‘ dividend policy policy: An empirical analysis from borsa based Lintner model. International Review Istanbul corporate governance of Business Research Papers, 8(6), 71-88. index. Accounting and Finance Abor. J., and V. Fiador (2013). Does Research, 4(3), 66-74. corporate governance explain dividend Belanes, A. (2006). Determinants and policy in sub‐Saharan Africa? dynamics of dividend policy. International International Journal of Law and Review of Finance, 6(1-2), 1-23. Management, 55(3), 201-225. Bhaduri, S.N. (2002). Determinants of Adams, G., (2008). A cultural analysis of corporate borrowing: Some evidence from the experiment and an experimental the Indian corporate structure. Journal of analysis of culture. Social Psychology and Economics and Fiance, 26(2), 200-215. Personality Compass, 2(1), 1895–1912. Bilimoria, D. (2000). ‗Building the Adhikari, N. (2015). Determinants of business case for women corporate corporate dividend payout in Nepal. NRB directors‘. Women on Corporate Boards of Economic Review, 27(2), 1-22. Directors, 18(1), 25-40. Ajanthan, A. (2013). The relationship Bushra, A., and N. Mishra. (2015). The between dividend payout and firm. determinants of corporate dividend policy International Journal of Scientific and in Pakistan. The Lahore Journal of Research Publication, 3(6), 2250-3153. Economics, 20(2), 14-24. Al-Malkawi, H. (2007). Determinants of Chen, C. and T. Steiner. (1999). corporate dividend policy in Jordan: an Managerial ownership and agency application of the Tobit model. Journal of conflict: a non-linear simultaneous Economic and Administrative Sciences, approach. Journal of Banking and 23(2), 44-70. Finance, 34(3), 897-924. Al-Najjar, B., and K. Hussainey (2009). Chen, C. R., and T. L. Steiner (1999). The association between dividend payout Managerial ownership and agency and outside directorships. Journal of conflicts: A nonlinear simultaneous Applied Accounting Research, 10(1), 4-19. equation analysis of managerial Asamoah, G. N. (2005). Corporate ownership, risk taking, debt policy, and governance and dividend policy: an
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FOREIGN DIRECT INVESTMENT: IMPACT ON INDIA
DR. J. P. BHOSALE Head : Research Centre in Commerce, Arts, Commerce & Science College, Narayangaon, Tal : Junnar, Dist : Pune, Pin : 410504, Maharashtra, India.
Abstract The traditional practice of selling goods to the consumer is unorganized retail like Kirana store, Mom store. They have contact with local customer in relation seeming to be relatives, Usually they are mingled with their customer as neighbour. By the time and economy goes up, the consumers purchasing power and preference is changing. Based on the taste & preference, now the unorganized sector is converting into organized sector that starts from the urbanized area. Compared to other industry, the retail industry is bigger booming potential industry. Each and every in need of product approach the retail shop. The domestic organized players are very few in comparison of unorganized player. Compared with the international organized player, the domestic players who are in the lack of capital are not effective in healthy competition. SO the industry is in need of capital infusion. Keywords: Foreign Direct Investment, Marketing, Retail, E-accounting. Introduction E-accounting is new development in the advent of personal computers, businesses field of accounting. It means all your were limited to manual methods for keeping transactions will record in online server or track of financial data. data base. E-accounting involves performing In many operational applications the regular accounting functions, accounting accounting entries can be generated as a by- research and the accounting training and product of the underlying transactions. A education through various computer based computerized accounting system is able to internet accounting tools such as digital tool handle financial data efficiently, but the true kits, various internet resources. International value of an accounting system was that it web-based materials, institute and company was able to generate immediate reports databases which are internet based, web regarding the company. links, internet based accounting software and Objectives of the Research Study electronic financial spreadsheet tools to 1. To study the conceptual background of provide efficient decision making. An E- Retail Sector in India. accounting system could be thought of as an 2. To study the position of Foreign Direct inter-organizational system because of its Investment in India capability to electronically integrate a set of 3. To study the Impact of Foreign Direct firms. Investment According plays a critical role in the 4. To give some suggestions for developing success or failure of contemporary business Retail Sector in India. institutions. Accounting systems are Research Methodology responsible for recording, analyzing, The present research paper is based on monitoring and evaluating the financial secondary data only. The secondary data is condition of companies, preparation of collected from various references books, documents necessary for tax purposes, research articles and websites. providing information support to many other Foreign Direct Investment in India organizational functions and so on. Prior to Under Foreign exchange Management Regulations, 2000 the Indian Companies are allowed to raise funds from
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 overseas investors. An Indian company Foreign Direct Investment in Trust other which is not engaged in any activity or in than Venture Capital Funds is not permitted. manufacturing of item included the list a and FDI is not allowed to invest in the above b appended may issue fresh shares subject to mentioned entities engaged in any the condition and sectoral cap as indicated agricultural activity or real estate business or under Foreign Direct Scheme, subject to the print media. FDI in resident entities other terms and condition specified. than those mentioned above is not permitted. Who can Invest in India Type of Instruments There are following categories of An Indian company arrange fund person resident outside India who may from a person resident out of India by issue invest in the capital of Indian Company: of following type of instrument which are 1. A non-resident entity. given below: 2. A citizen or entity of Bangladesh under 1. Equity Shares. Govt. Route. 2. Preference Shares. 3. NRI resident as well as citizen of Nepal 3. Debentures. and Bhutan on repatriation basis. 4. Issue of Foreign Currency Convertible 4. Erstwhile OBCs as incorporated non- Bonds. resident entities. 5. Depository Receipts. 5. An FLL under the Portfolio Investment 6. Foreign Currency Exchangeable Bonds. Scheme. 7. Impact of Foreign Direct Investment 6. SEBI registered FLLs or NRIs through a 8. Forex Reserve registered broker on recognized India 9. As the limit is increased to 51% in the Stock Exchange. multi brand retail, the direct investment 7. SEBI registered Foreign Venture Capital from abroad called FDI would inflow to Investor. start the business. The inflow of capital Foreign Direct Investment (FDI) is would increase the capital reserve in the permitted as under the following forms of Balance of payment which shows the investments: ability of the nation in terms of Forex. 1. Through financial collaborations. Farmers The one of the current 2. Through joint ventures and technical problem of Indian economic is fiscal deficit collaborations. which is mostly caused by subsidy give to 3. Through capital markets via Euro issues. the farmers which is considered as 4. Through private placements or unproductive. The one way to cut such preferential allotments. subsidy is to make the farmers independent Indian Entities Into Which FDI Can Be by making the system securing them to be Made paid good price for the commodity. The There are below mentioned entity organized retailers that are capital giant are registered or incorporated under Indian law able to purchase directly from the farmers can raise funds against capital : paying good price. So the govt. should be i. An Indian Company. ensuring that the farmers are getting paid the ii. Partnership Firm. price of what they are eligible to. iii. Proprietary Concern. SME iv. Indian Venture Capital Undertaking In the norms that are instructed to the (ICVF) foreign player, they should purchase 30% of v. Ventures Capital Fund (VCF) the product they deal with from the small vi. Limited Liability Partnership (LLP) and medium Enterprise. This ensures the A Non-resident Indian or a person of development of SME. The foreign player Indian Origin resident outside India can would like to provide the quality product. invest in the capital of a firm or a proprietary The SME would be encouraged to produce concern in India on non-repatriation basis. the commodity that is of high quality.
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Infrastructure Dependability The players are imposed with the The country may depend on another restriction of investing 50% of their country as FDI inflow is increasing where investment on the Back end infrastructure. the country independency is decreasing. The the ruling party in India where the economic economic growth may become more development is suffered by lack of endangered on depending on another infrastructure is very cautions about to invest country economic. The capital giant may in such area. It would become base for dominate the industry exceeding the economic in many ways, say transportation. domestic player. The revenue would outflow Distribution abroad affecting Forex reserve. The distribution system is one of the Conclusion factors determining the cost of product. As The expectation behind the opening they are invested in the infrastructure, they of FDI in multi brand retail is gigantic. The could follow JIT. Say Wal-Mart, they are govt. should take precautionary measure not interested in expending in the stock framing the rules to ensure that any industry maintenance. would not get affected. On the periodical Food Wastage manner, it should checked how much it With the poverty in one side, the contributes towards the growth of the wastage of food is no another side in the economy and impact in other industry. same country. It requires the effective On the unorganized sector, the distribution system to avoid food wastage. traditional players are side to get affected on With the good back end infrastructure, they account of opening of FDI in multi brand can able to serve the goods in an retail. Whereas those same kind of retailers optimization way. are surviving in US. France, etc. These Employment players who are having close relationship The more employment would be with the customers and know their demand created in the country either directly or need to enhance the modern trend in retail in indirectly where youth pass out is increasing order to survive. Practically speaking, most as much as creation of employment. It would of the consumers are reluctant to shop in be generated in the agriculture, organized retail shop spending more time. manufacturing, service industry which, Whatever may be the opening, the put consists of GDP. The more people get forward is stifle healthy competition that employed would rehabilitate the economic would change the retail industry. As any cycle. industry greeting modernized in the Retail Industry globalization, the FDI in retail is not to be Allowing FDI in multi brand retail would eluded in the developing country where infuse the new blood into the industry that other developing countries like China are has potential. Foreign players that are implemented this practice before a decade. competitive oriented would implement new Bibliography strategy. 1. Nilam B. Goyal, ‗Foreign Direct Another Side Impact Investment in India‘. Middle Man 2. Avhad S.N. ‗Impact of FDI in Retail In The middle man in the supply chain India.‘ including non hoarders shall get affected. In 3. Government of India - FDI Policy in the long run, they will be deprived of trade Retail - Marketing Mastermind, Feb- business that causes unemployment. So it 2008, P-57. could be matched with the need of 4. IISBC Global Research - Jumbo Retail - employees by the organized sector by organizing Retailing in India Gets llypcr- appropriate policy by the govt. May. 2005 P- 23.
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5. Indian Management Report - Beyond the 9. Acharaya B. K. and Goverkar P. B., retail Hype -Indian Management - Jan - (1985), "Marketing and Sales 2007, P-13. Management", 6. S. R. SubbaRao - Organising Retail Himalaya Publishing House, Bombay. Sector In India - Growth and Impact on 10. Bose, Biplab, S., (1998) "Hand Book of Economy - Journal of Indian Marketing Management", Himalaya Management & strategy - April - June, Publishing House, Bombay. 2006, P-64. Webliography 7. Marketing Management – 11th Edition – 1. www.etretailbiz.com Philp Kotler. 2. www.retailory.com 8. Retailing Management – Text and Cases 2nd Edition- Swapana Pradhan.
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UNDERSTANDING THEBASIC OFBITCOIN
CA KIRAN GAJJAR Assistant Professor College : Bunt Sangha‘s Anna Leela College
Abstract Bitcoin is a hot topic and a frequently discussed among investors, entrepreneurs and stock traders, so you should to know about it. Bitcoin is a digital currency that not controlled by a centralized authority like a government or central bank..Today Bitcoin has emerged as the most successful crypto currency. Since its launch in 2009 a virtual currency, bitcoin, has grown in both its popularity and its use. In simple terms Bitcoin is as cheme designed to facilitate the transfer of value between the parties. Just like traditional payment systems, which transfer funds denominated in sovereign currencies. Bitcoin is a crypto currency. A crypto currency is nothing but a medium of exchange that uses cryptography to manage the creation of new units and to secure the transactions. Bitcoin is one of the mobile app or computer program that provides a personal Bitcoin wallet and allows a user to send and receive bitcoins with them. This paper provides detail information about bitcoin. Key Words: Bitcoin, Cryptography, Digital currency, Cryptocurrency
I -Introduction Within a short period of time Bitcoin Objective grew to comprise billions of dollars of To study various basic aspects of crypto economic value. Bitcoin holds a universal currency, bitcoin. value throughout the world. Price of one bitcoin is 8,31,436 as on 28/12/2017. The II- Bitcoin: anoverview value of Bitcoin is depends on supply and As mention earlier the Bitcoin is one demand in a market. It means that the price type of a payment system that facilitates the of Bitcoin would be high if the higher the transfer of value between parties. Just like at number of people interested in buying traditional payment systems, which typically Bitcoins, On the other hand, if a lots of involve the transfer of value denominated in people wants to sell Bitcoins, than it would a sovereign currency such as the Indian reduce price of bitcoin. Bitcoin exchange Ruppes, US dollar, Bitcoin has its own rates exhibit somewhat complicated metric for value called a bitcoin.at the time dynamics. This paper present the micro- of this writing ,a bitcoin has no legal tender structure of the Bitcoin transaction process statusin any jurisdiction. Some economist and highlight the use of cryptography for the shave questioned whether bitcoins meet the purposes of transaction security and standard attribute so money. distributed maintenance of ledger. Figure1showsadiagramofpaymentsontheBitc Methodology oinusers‘network. This paper is descriptive in nature based on secondary data collected through various websites, book and journals.
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Figure 1: The Bitcoin conceptBlockchain
A
B D
C
Note: There are four entities A,B,C and D, transacting directly with each other ,i.e. with no intermediary. In addition, the diagram shows the possibility of B transacting withitself.Alltransactionsarechronologicallyrecordedinapublicledgercalleda block chain.
Theprocedureforrewardingthosewho The Bitcoin transaction process uses makerecordsontheblockchainembedsthe cryptography to verify transactions, process economic incentives driving the system and pay- ments, and control the supply of appears to ―hard-code‖ the growth of the bitcoins. Bitcoin relies on two cryptographic bitcoin supply. Specifically, there ward for schemes:digital signatures and cryptographic recording a transaction includes a fee and hash functions. newly minted bit coins. Digital signatures The no desire entities and the Digital signature is a cryptographic directed arrows depict payments in bitcoin. value that is calculated from the data and a As the diagram suggests, the entities transact secret key known only by the signer. directly, in traditional payment systems In real world, the receiver of where various parties, such as banks, message needs assurance that the message processors, and networks, are between the pay belongs to the sender and he should not be or and payees, there is no intermediary in able to repudiate the origination of that Bitcoin. In public ledger each and every message. This requirement is very crucial in transaction is chronology- call recorded, business applications, since likelihood of a This record called the block chain, by dispute over exchanged data is very high. participants in the network. There is are Digital signatures are a way to ward for recording transactions in the block authenticate a message between a sender chain, and the participants in the Bitcoin and a receiver in a way that ensures: system compete to make records. Well- (i) authentication: the recipient can defined process, which guarantee scan senses, verify that the message came from elects the winning participant and the block the sender, chain is updated .Importantly, each participant (ii) non-repudiation: the sender cannot keeps a copy of the ledger, and the consensus deny sending the message, of the incremental changes guarantees that (iii) Integrity: the message has not been these copies are identical. The Bitcoin tampered with. transaction process is fairly complex and The implementation of digital computer scientists are actively investigating signatures involves public key encryption, aspects of its security, privacy, distributed where a pair of keys—public and private— control and incentive schemes. is generated with certain desirable properties.
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Cryptographic hash functions later, on March 31, Bitcoin Brazil opens a Ingeneral,a crypto graphic hash service for face-to-face exchange in function takes as input a string of arbitrary Brazilian Reals (BRL) and U.S. Dollars. On length and returns as tring with April 5, BitMarket.eu begins facilitating predetermined length. We will refer to the trades in Euros (EUR) and other currencies. input as message and the output Together, they simplify bitcoin ownership ashashh.The function is deterministic, and trading for hundreds of millions of new meaning that the same input will always users and the market is expanded give the same out puth. Another desirable enormously. property of the hash function is that even Bitcoin 0.8 Causes Brief Hard Fork - small changes in message m are likely to March 11, 2013 change hash h = hash(m) significantly. This Shaking confidence in Bitcoin and makes it very unlikely for someone to be the validity of some transactions, the price able to infer the content of the message from briefly plummets and the Mt. Gox exchange the hash. temporarily suspends bitcoin deposits. III- History of Bit Coin Thanks to a swift and coordinated response The first use of Bitcoin as a currency by Bitcoin developers, miners, and is thought to be a transaction in May 2010, community members, the fork is resolved where one user ordered pizza delivery for within hours after the operators of two large another in exchange for 10,000 bitcoins. mining pools, Michael Marsee (of BTC Since then, an increasing number of Guild) and Marek Palatinus (of slush's pool), merchants and services have adopted Bitcoin honourably forgo some of their accumulated and the price has generally risen, reaching a mining rewards in order to downgrade to the peak. Bitcoin was not traded on any previous, compatible version. An updated exchanges in 2009. Its first recorded price version, 0.8.1, is released shortly after, was in 2010. Technically, Bitcoin was worth containing safeguards to prevent the original $0 in 2009 during its very first year of problem. existence. Dell Accepts Bitcoin - July 18, 2014 New Liberty Standard Publishes First Founder Michael Dell announces on Exchange Rate - October 5, 2009 Twitter that dell.com now accepts Bitcoin. New Liberty Standard opens a Customers in the United States (only) can service to buy and sell bitcoin, with an initial purchase any product listed on Dell's online exchange rate of 1,309.03 BTC to one U.S. marketplace using Bitcoin. All Bitcoin Dollar, or about eight hundredths of a cent transactions are to be handled by Coinbase, a per bitcoin. The rate is derived from the cost Bitcoin payment processor. At a yearly of electricity used by a computer to generate, revenue of $56 billion, Dell becomes the or ―mine‖ the currency. largest company to accept Bitcoin. Paypal Subsidiary Braintree to Accept The First Bitcoin-to-Fiat Exchange Bitcoin - September 8, 2014 Occurs - October 12, 2009 Braintree, a subsidiary of Paypal, Using PayPal, New Liberty Standard announces that it is partnering with Coinbase buys 5,050 BTC from Sirius for $5.02, to accept Bitcoin payments on their equating to roughly one tenth of a cent per platform. Over the next three months, the bitcoin. two companies will work on integrating Bitcoin payment processing for Braintree Three New Exchanges Open Supporting merchants. The Bitcoin payment option will More Fiat Currencies - March 27, 2011 be seamlessly enabled for all merchants on On March 27, 2011, Britcoin the platform. Braintree merchants need only launches the first exchange to trade bitcoin sign up for a Coin base account and link it to and British Pound Sterling (GBP). Just days their Braintree account
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New York State Releases the BitLicense - private Bitcoin keys. This verification was June 3, 2015 later debunked by the Bitcoin community. Superintendent of New York State Japan Declares Bitcoin as Legel Tender - Department of Financial Services, Benjamin April 1, 2017 Lawsky, released a set of customized rules Japan recognizes bitcoin as a legal meant to regulate Bitcoin and digital method of payment. The country's currency businesses that serve customers legislature passed a law, following months located in New York State. These of debate, which brought bitcoin exchanges regulations are the first ever directly targeted under anti-money laundering/know-your- at digital currency businesses. customer rules, while also categorizing bitcoin as a kind of prepaid payment Bitcoin declared as a commodity by the instrument. US regulator - September 18, 2015 Bitcoin "splits" into Bitcoin (BTC) and The Commodity Futures Trading Bitcoin Cash (BCH) - August 1, 2017 Commission (CFTC), announced it had filed After years of debating about how and settled charges against a Bitcoin Bitcoin should scale the controversy turned exchange for facilitating the trading of into action. The Bitcoin code split in two option contracts on its platform. They different directions. One direction state: "In this order, the CFTC for the first supporting the optimization of Bitcoin time finds that Bitcoin and other virtual blocks through Segwit, while the other currencies are properly defined as direction supports bigger blocks of up to commodities,". 8mb. Bitcoin Sign Accepted into Unicode - IV- Bitcoin ownership and November 3, 2015 Bitcoinaddresses The Unicode committee accepted the From a technical point of view, Bitcoin currency symbol (uppercase B with bitcoins reside in what is known in the 2 vertical bars going through it, but only bitcoin system as bitcoin addresses. The visible at the top and bottom) to be in a ownership of a particular amount of bitcoins future version of the Unicode standard. The reduces to the capability of sending glyph will be given the slot "U+20BF payments over the Bitcoin network from the BITCOIN SIGN" and eventually will render bitcoin address(es) with which these bitcoins with standard system fonts. are being associated. The capability of Steam Accepts Bitcoin - April 27, 2016 sending payments from Bitcoin addresses is The popular gaming platform Steam controlled via digital signatures In simple began accepting Bitcoin as payment for words, owning the bitcoins in a given bitcoin video games and other online media. Valve, address amounts to knowing the private key the company that owns Steam, enlisted which corresponds to the public ID of that Bitpay as the payment processor to facilitate address. Bitcoin payments and help target At any point in time every bitcoin international customers where credit card address is associated with a given bitcoin payments weren't as ubiquitous. balance which is, in effect, public Craig Wright Claims to be Bitcoin's information. This is the case because any Creator - May 2, 2016 participant in the Bit- coin network can Craig Wright publicly announced he deduce the bitcoin balances following a was Satoshi Nakamoto by means of a blog given transaction history that is recorded in post. The blog post featured a disjointed the public ledger. In particular, every demonstration of a private key signing, existent or proposed transaction can be which seemed to be an attempt to verify checked for consistency against the Wright was in possession of Nakamoto's preceding history of transactions i.e. it can be verified that the amounts transacted are
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 available in the corresponding bitcoin (b) the recording of each transaction is time addresses. discretized, i.e. transactions are linearly V- The Bitcoin transaction process ordered with consecutive time stamps, (c) The Bitcoin transaction process has the participants in the payment network mechanisms in place which guarantee that com- pete and are rewarded for recording a (a) the verification of each transaction is transaction, and (d) multiple nodes cross- distributed among multiple participants in check each transaction record. Below we the network, review the Bitcoin transaction process highlighting the above properties. A Bitcoin transaction as seen in the data.
1
2
3 15
4 1.3 1.8 16
5 1.2 1.4 17 0.9 6 2 18 1.5 TX 7 12 19 9.5 8 2.2 0.5 20 1.6 9 5.4 21 1.4 1.9 10 22 1 1.7 11 23 1 0.7 12 24 2.5 2.1 13 0.9 25 1.5 Exchange rates 14 0.8 Exchanges are platforms on which a user0.7 who wants to either sell or buy bitcoins with anothercurrencycandoso.Muchofthemediacoverageregardingthesky-rocketingprice of bitcoin is derived from information coming from these exchanges. As figures hows, the value of bitcoin relative to dollars increased most dramatically in the fourth quarter of2013.Althoughtradingofthevirtualcurrencybeganaroundmid-2010, muchofthis trading was fairly sparse up until 2013. For this reason we focus on the period starting in January2013.Exchange rate USD/BTC
900
600 USD/BTC
300
0 2012−01 2012−07 2013−01 2013−07 2014−01 2014−07
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Intra-day volatility USD/BTC
20
STD(%) 10
0 2012−01 2012−07 2013−01 2013−07 2014−01 2014−07
Above figure shows the discussed basic concept of bitcoin, normalized daily exchange rate history of bitcoin, general patterns of volatility of BTC for USD trades. Bitcoin usage, and examines the use of This measure shows how much the Bitcoin for investment and payment exchange rate fluctuates on a given purposes. The number of daily users day as a percentage of the average may have doubled every eight months, daily price. Note how remarkably the transaction volume is negligible stable this measure of volatility is. compared to the volume of U.S. With a handful of exceptions, it has payment systems. In addition, the stayed below the 12 − 15 percent patterns of circulations of bitcions and limit. It appears that, accounting for the dynamics of the bitcoin exchange the large mean growth of bitcoin rate are consistent with low usage of value, the risk associated with holding Bitcoin for retail payment transactions. bitcoins for very short periods of time Finally, conclude that the exchange rates has remained relatively stable. between bitcoin and other currencies are Notably, however, the disruptions in not well aligned, which may because of the normalized exchange rate lack of depth of the exchange markets volatility are of substantial magnitude and as costly exchange rather than and appear difficult to explain or to unexploited arbitrage opportunities. predict. In particular, we note that References spreads in highly liquid foreign https://www.gqindia.com/content/if-youd- currency exchange markets are invested-100-in-bitcoin-in-2010-heres- generally very small or else there how-rich-youd-be-today/ would be room for arbitrage. Thus, if https://futurism.com/images/the-entire- we were to hypothesize that the history-of-bitcoin-in-a-single-infographic/ bitcoin market is similarly highly https://99bitcoins.com/price-chart-history/ liquid, we would expect there to be Yermack, David, ―Is Bitcoin a Real very little spread between its different Currency? An economic appraisal,‖ exchange rates. NBER working paper, December 2013. VI-Conclusion Lo, Stepahanie and J. Christina Wang, Motivated by recent ―Bitcoin as Money,‖ Federal Reserve developments in the Bitcoin ecosystem, Bank of Boston, Current Pllicy this paper provides the necessary Perspectives No 14-4, 2014 technical background to understand basic Bitcoin operations. This paper
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AN IMPACT OF STRATEGIC HUMAN RESOURCE MANAGEMENT ON ORGANIZATIONAL PERFORMANCE
DR.KALHAPURE BALASAHEB. B. HOD & Assist. Prof. in Commerce, Annasaheb Awate College Manchar, Ambegaon,Pune. (M.S).
Abstract The aim of this research paper is focused on the impact of the strategic management of human resource in achieving organizational performance. This research paper was conducted based on primary and secondary sources. How much organizations appear competitive in the market through achieving the performance indicators? How important is the management of human resources in achieving organizational performance? So, through the skills, behaviors and attitudes would be expected by human resources to achieve the required performance in the organization. Organizational performance is getting more and more important, especially in a market with greater competition and dynamic. Organizational performance is measured through different indicators directions. It guarantees the continuity of the organization to be competitive in a global marketplace. Normally, the implementation of performance indicators achieved through human resources. Human resources are the key for keeping the organization in the market so competitive. These human resources need to be managed effectively to achieve the required performance of the organization. It is necessary to manage strategically the human resources and to adapt at its strategy with organizational strategy.
Introduction: - Human resources are regarded as one Rapid changes stemming from globalization, of the most important sources of today's advancement of information systems and firms. Human resources management is other factors have caused higher more important than other competitive competition. Many organizations are driven sources because these people use other by the market to set their goals in their assets in organization, create performance. Some of the goals are: cost competitiveness and realize objectives. Thus reduction, achieving sales levels, increasing firstly, organizations must understand the the number of customers, increasing the expectations of their workforce in order to market percentage, improving productivity achieve the desired performance. The and quality, innovative products. The realization of the expectations of employees realization of these goals will be achieved will enable the desired behavior of through the human resources management in employees in the organization. Some of the organizations. Workforce, as the key to desired outcomes of the organization in success, will enable the achievement of managing their workforce are: competence, organizational performance. cooperation of employees with managers, The overall goal of performance cooperation of employees between them, management is to create a culture as high showing the capabilities of employees; performance in which individuals and teams motivation, commitment and satisfaction; to take responsibility for the continuous attitude and presence; employee behaviors. improvement of business processes and their Organizations are seeking to create much skills and contribute in achieving the targets competition between them, taking more set by managers. In particular, management market, more customers, more sales, etc. performance can be expressed as the
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 approximation of individual objectives of with the overall organizational strategy in employees with organizational objectives the context of achieving the required provided that employees support the culture performance. There has been much research of the organization. It provides for on strategic human resource management expectations to be defined and agreed in that affects organizational performance. The terms of role responsibilities and discussions and definitions will be divided in accountabilities skills and behaviors two parts of speech: the strategic The purpose of strategic human management of human resources and resource management is to improve business organizational performance. performance through people management. Strategic HRM Meaning; The organizations need to manage their Strategic HRM is a process that human resources effectively and efficiently involves the use of overarching approaches to achieve the desired goals and objectives. to the development of HR strategies, which The achievement the goals and objectives are integrated vertically with the business translate also in better performance. So, the strategy and horizontally with one another. issues raised for discussion are: How should These strategies define intentions and plans organizations manage their main source – related to the overall organizational human resources? Does strategic human considerations, such as organizational resource management help to meet the effectiveness, and to more specific aspects needs, the goals and objectives of the of people management, such as; resourcing, business? As should be adapted strategic learning and development, reward and human resource management to realize the employee relations. Strategic HRM focuses performance? How should adapt strategic on actions that differentiate the firm from its management of human resources to increase competitors .It is suggested by Hendry and organizational performance? Pettigrew that it has seven meanings: Objectives: A coherent approach to the design and To observe if organizations use the management of personnel; strategy of human resource management Systems based on an employment policy for the achievement of their performance and workforce strategy; objectives. Matching HRM activities and policies to To observe if organizations use the some explicit business strategy; strategy of human resource management Seeing the people of the organization as for the achievement of their performance a strategic resource; objectives. Achievement of competitive advantage. To observe closely how applicable is in Often underpinned by a ―philosophy practice the theoretical aspect of strategic The use of planning human resource management for the Organizational performance concept; achievement the organizational Campbell‘s theory defines performance. performance as behavior or action relevant Literature Review; to the attainment of an organization‘s goals The achievements of organizational that can be scaled, that is, measured. objectives can be different in different Moreover, job performance is defined as organizations. The studies emphasize the what one is paid to do, or what one should impact of HRM on organizational be paid to do. The theory states that the performance. Basically, and other studies in measurement options, be they ratings from a this area, point out that it is necessary to supervisor, peer, or self, a simulated work achieve organizational objectives and sample, or hard criteria besides being valid, management of human resources should be reliable, and not deficient should be free of strategic. Also, the strategies of human contamination from sources of variation that resource management should be integrated are not under the control of the individual
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.Situational enhancers or constraints, if not analyzes the different findings. These taken into account in an appraisal, can publications have been published in various contaminate the mean, variance, or both with journals, conferences and books. regard to an individual‘s performance. HRM and performance; Observation and interpretation hold the key HRM practices are expected to enhance to the establishment of effective criteria. organizational performance and enable the Yet, an ongoing problem in appraising organization to gain a competitive people is the lack of reliability in the advantage. Such practices are detailed as observation of their behavior This follows unreliability is largely attributed to well- Self-managed teams and decentralization known rating errors such as ―first of decision-making as the basic principles impressions‖, ―halo‖, and ―similar-to-me‖. of organizational design. Lifson found that up to one-third of Comparatively high compensation performance measurement variance is due to contingent on organizational performance. rater differences despite the fact that the Reduce status distinctions and barriers, observers had considerable experience in including dress, language, office observing and evaluating people in the arrangements, and wage differences across workplace. Lance corroborated this finding. levels. Experience, however, is not a substitute for Extensive sharing of financial and training. To solve the problem regarding performance information throughout the lack of reliability, an observer must be organization. Employment security. trained. In this section, training programs Selective hiring of new personnel. that have been shown to be effective are Extensive training. described, and the necessity of taking context into account is explained. Outcomes Organizational performance is one of Organizational outcomes, such as the most broadly and extensively used productivity, quality, service, efficiencies, dependent variables in organizational studies customer satisfaction. today, and yet, at the same time, it remains Financial accounting outcomes, such as one of the most imprecise and loosely- profits, sales, return on assets, return on defined constructs. In the strategy literature, investment. the focus of attention on this construct has been concerned almost entirely with Capital market outcomes, such as market financial measures of performance. share, stock price, growth Conceptually, organizational performance HR-related outcomes, such as turnover, has been defined as the comparison of the absenteeism, job satisfaction, commitment. value produced by a company with the value owners expected to receive from the Advantages; company Ramanujam indicate that a narrow Performance management strategy definition of performance focus on the use should focus on the development to a of simple outcome-based financial indicators continuous and flexible process involving that are assumed to reflect the fulfilment of managers and all the organization that the economic goals of the firm. operate as a single team. This should Research Methodology determine how they can best work together This study was conducted through to achieve the required results. This makes it the collection and analysis of various possible to focus on the planning of future publications on this field. The secondary performance and performance improvements source, refer various publications that have existing. HRM Strategy provides the basis been made in this area about empirical for regular dialogue and frequent between studies, various academic debates and managers and other employees about
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performance needs and further development organization to achieve performance. of the organization. Strategic human Strategic HRM is a detailed process for resource management may bring a number human resource management throughout the of benefits to the organization. organization that it‘s integrated with the Participating in strategic planning and organization's overall strategy. It enables the influencing the strategic direction of the organization having employees with the company as an equally entitled member right skills and putting them in positions of top management according to the level of their qualification Contributing to the goal accomplishment and skills. Different authors have tried to and the survival of the company, give different definitions for organizational Supporting and successfully performance. implementing business strategies of the Organizations are trying to create as company, much competitive in the market, reaching to Improving the responsiveness and manage their human resources in achieving innovation potential of the company, organizational performance required. Some Increasing the number of feasible of the goals are cost reduction, achieving strategic options available to the sales levels, increasing the number of company, customers, increasing the market percentage, Improving cooperation between the HRM increasing product quality, innovative department and line managers. products, improve productivity. Creating and maintaining a competitive In general, organizational performance is related to the achievement of advantage for the company the objectives required by the organization. Finding; The achieving organizational performance is These organizations to strategically manage their human resources pay attention a result of the behavior of employees in the organization. Policies and practices of in: a. Recruitment and selection of appropriate organizations motivate employees and they staff; give impact on organizational performance. b. Career Management in the organization; Some of these are: human resource planning, recruitment, selection, training and c. Training and development of employees; d. Job satisfaction; development, compensation, performance e. Creating a dynamic environment; management and employee relations. A link f. Motivating employees. between Strategic HRM and organizational In other words, organizational performance has been developed by author performance has changed through strategic Michael Armstrong. According to him, the performance is a function of the Ability + management of human resources Motivation + Opportunity. By achieving the management. This makes possible the achievement of organizational performance expectations of employees, it will be reached objectives. It also enables the organization to the performance required by the be competitive. SHRM is a very important organization. Organizations need to consider tool that ensures the continuity of the human resource as a tool to gain competitive organization advantage needed to create appropriate policies and practices. Also, authority and Conclusion; Human resources are playing an responsibility must involve in the entire important role in achieving these organization working as a single team and performance indicators. But before that, not focus only managers. Performance organizations should realize the expectations management strategy should focus on the required from employees and so the development of a continuous and flexible process. employees show their skills, be motivated and behave in the manner required by the
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References; 1. Seth Publication T.Y.B.Com Syllabus Mumbai University. 2. Human Resource Management Challenges, http://www.villanovau.com/human- resource management-challenges. 3. MHRM Marketing Research Journal August-2014. 4."A Framework for Human Resources Management International Civil Service Commission", http://icsc.un.org/resources/hrpd/hrm/IC SC_hrm_eng.pdf 5. International Journal of Scientific & Technology Research Volume 1 Issue July 2012. ISSN 2277-8616. 6. - Practical Application of Science Volume II, Issue 2 (4) / 2014. 7."Introduction to Human Resource Management and Environment", Available: http://www.mu.ac.in/ 8. Guest, D. E. (2011). Human resource management and performance: still searching for some answers. Human Resource Management Journal, 21 (1), 3-13. 9. Hendry, C., & Pettigrew, A. (1990). Human resource management: An agenda for the 1990s. International Journal of Human Resource Management, 1, 17-43. 10. HRM Studies. Journal of Management Studies, 46 (1), 143-155. 11., R., Hollenbeck, J. R., Gerhart, B., and Wright, P. M. (2007). Fundamentals of human resource management, (2nd ed). Boston MA, McGraw Hill. 12. Rogers, E. W., & Wright, P. M. (1998). Measuring organizational performance in strategic human resource management: Problems, prospects, and performance information markets. Human Resource Management Review, 8 (3), 311. 13. Venkatraman, N., & Ramanujam, V. (1986). 14. WWW. Various net Web sites.
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CHALLENGES FACED BY BANK EMPLOYEES WITH THE ADVENT OF INFORMATION TECHNOLOGY: A MODERN OUTLOOK
PROF. AUSARE INDIRARANI YASHWANT Asst. Professor, DR. D. Y. Patil ACS, College, Pimpri, Pune 411018
Abstract: With the advent of Information Technology enormous employment opportunities in the banking sector has been generated. In this paper an attempt has been made to understand the challenges faced by bank employees with the arrival of computerized system. Technology has sown the seeds of competition in every sector of the economy & banking sector is no exception to this event. Global economy will bring in new challenges & opportunities in human resources. The need of the hour is that management would have to tackle several applications at the entry level of recruitment. Banks have to be prepared to modify recruitment policy & take responsibility to correct ethical business practices. The objective of this research is to identify the challenges faced by the bank employees in the digital economy. Hence the study proposes to emphasize on effective use of information technology by bank officials & create significant value that will provide competitive edge. Current economic trends are compelling banking sector to re-focus on business effectiveness & satisfy the needs of the customers. Therefore this research paper can be of relevance to bank executives, management & employees to adopt newer ways to improve business effectiveness. It is therefore a welcome change to be looked at as it would result in improved productivity in service sector in enormous ways. Study reveals that we directly or indirectly use computer & IT to improve our quality of life, hence banks should make modifications with the techno-savvy environment. Keywords: Information Technology (IT), Internet Banking, Virtual Banking, Digital Economy.
Introduction: Information Technology has passage of time the attitude of customers are momentous influence in every field. In order also changing. Hence only those business to remain competitive organizations have to will survive who can fulfill their demands. adopt new practices and new technologies. It And this can be done by adopting is technology which has modified the technology. Therefore there is an urgent banking businesses. The need of the hour is need for bank Employees to keep to train the bank employees so as to cope up themselves updated with new set of skills with this change and acquire new skills. It and technical expertise. This is the highest has become vital in every field and its challenge for bank employees as they have absence can result in lack of knowledge, to handle various queries raised by poor decisions and ultimately business customers and respond to the change. failure. Because of technology and There is direct relationship between computerized system many delivery technology and quality services in banking channels have been created. Organizations industry. The decade of nineties have which do not invest in technology make witnessed a sea change in the way banking their Employees struggle for information. It is done in India today. Technology has made has been witnessed that today‘s customers possible ‗Anywhere and anytime banking expect timely, convenient, quick and and it is now possible to market financial multiple delivery channels. With the services on a global basis. Similarly, it is
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 important for Bank Executives & .Competent employees are required for management to provide training to users at modern working system in banks for regular intervals. Technology can be fruitful survival & growth. Research scholars have only if users (Employees) are aware of how contributed their valuable articles on the to use it efficiently. issues related to banking reforms. Yet there Objectives: are several areas left untouched & The research paper has three fold objectives: unexplored. 1. To study new challenges faced by bank Relevance of the study: Employees with the advent of IT. This study shall be fruitful to the 2. To understand innovative business stakeholders, bank executives, management practices adopted by banks. & employees at large as they can take vital 3. To give suitable recommendations to decisions and make alterations accordingly bank officials to implement best work with these valuable suggestions. It shall culture in this competitive environment. result in providing hassle free services. Research Methodology: Challenges faced by bank employees: The present study is based on Human resource managers in public secondary data. It is descriptive in nature. sector banks have to cope up with the Data has been collected from several environmental changes. With the emergence Journals, Periodicals, and websites. Various of virtual banking competition in market literature review studies have also been have increased. Hence human resource referred for this research study. related problems are hampering the growth Innovativeness: and efficiency of financial sectors. Human This research is an attempt to see resource strategy should be adopted to whether technology in banks has any impact motivate, train, recognize, and reward to on the recruitment and Employees improve their optimum capabilities. It is operational performance in Banks. Since necessary for policy makers, managers to banking industry has displayed develop skill human capital to improve their multidimensional growth the need of the internal process. Information Technology is hour is to set up informational websites and spreading and has implications in almost speed up the banking transactions. There is every section of economy including banks. also need for bank employees to change This is biggest challenge that banks their method of working. Due to have to employ Information Technology computerization the employees have no Solutions to be ―futuristic‖ and meet the choice but to accept the change. multifarious challenges of globalization. The Management should plan and train new challenge faced by bank officials is to employees to enhance their performance & educate the customers about cashless modify their financial system. The main aim economy, its benefits, safety & easy of this paper is to bridge the gap between accessibility. Thus increasing competition & existing knowledge of bank employees and technology driven economy has created a update their skills to match the modern big challenge for traditional operating banks. expectations of customers. Moreover trust factor is the biggest hurdle to In the days to come, banks are online banking as people hesitate to disclose expected to play a very crucial role to keep their personal information. Banks therefore pace with modern technology. Bank officials require an appropriate mix of human talents should introduce skill inventories and focus to implement their operational strategies. towards TQM viz., quality circles Another obstacle is that there is an acute
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 scarcity of web developers, content computer-skills. Top executives should also providers & knowledgeable professionals to take care of safety & security and keep away route banking transactions through internet. from technology risks. Innovative business practices adopted by Recommendations: banks leads to following effects:- In the near future the biggest concern for Information technology innovations by banks will be to implement best IT the banking sectors have reduced cost of solutions in the compliance area. labors. They should ensure safety & security to There is universal co-ordination between their customers. head office and branches Banks should also create awareness Use of technology in banks have reduce among the people about cashless inter- market differentials economy & its benefits. Created standardized system of services Quality & team building practices should to its customers be designed at work place & contribute to There has been growth in the form of overcome potential programs. ATM‘s as a complementary distribution Human resource professionals should channels. keep pace with the issues like privacy, Technology has opened the way for data protection, and authentication. banks to improve their costs structures. Also an attempt should be made to set Banks were able to induced the global standards to operate hassle free customers to change their attitude and online banking transactions. adopt digital e –banking services. Finally it may be suggested that the In brief this transformation towards employees should have ability to liaison ‗ virtual banking‘ will further require new with individuals & organizations‘. IT applications , new managerial practices Ability to identify others special talents and new consumption patterns to remain maintain and monitor information system. stable is financial services and to captured Conclusion:- new strategy. In conclusion it is agreeable that Analysis of the study: nowadays human resource functions are In view of the above discussion on considered as an essential part of the this research topic the following have been management. With the advancement in IT evaluated: the organization needs to develop an Banks have also realized the enthusiastic, result cantered, and dedicated importance of computerized system and they work force. Also the four dimensions viz. are planning to gear up to have sound people, powers, culture and infrastructure customer services. Some of the banks viz. need to be managed which is essential Bank of Maharashtra, State bank of India foundation for survival and profitability. has formulated long term plans to trigger Overall the Indian banking sector is the technological invasion. healthier today due to arrival of IT Thus, software development revolution. Hence with this transformation activities are provided by banks to ease the bank employees must continuously seek employee to cope up with new working new skills & cope up with the competitive processes. It has been surveyed that almost work culture. To sum up speed & efficiency 52% customers are moving towards online are the new mantras expected by today‘s banking. Now, banking industry will require techno savvy customers. those candidates having analytical &
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References: 1. Dhiraj Sharma, Foundations of IT, Excel Books, New Delhi, 2008. 2. The IUP Journal of IT, IUP Publications Vol. XIII No.3, Sept 2017 3. V. Rajaram, Introduction to IT, 2nd Edition, Feb 2014, 2nd Edition. 4. Jawad Abbas, Impact of Technology on Performance of Employees, World Applied Science Journal, 2014. 5. Jim Davis, Information Revolution, Wiley Pub. 2006. 6. Girish Rann, Global HRM, 2009, Rajdhani Printers, Delhi.
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GST (ONE NATION ONE TAX)...A STUDY OF IMPLEMENTATION AND CHALLENGES
DR. D.D.BALSARAF SHRUTI GANPULE Principal, Indrayani College, Talegaon, Assistant Professor, Pratibha College of Pune Commerce and Computer Studies, Chichwad
Abstract: "Goods and Services Tax" is a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India, to replace previous taxes levied by the Central and State governments. Goods and services tax is levied and collected at each stage of sale or purchase of goods or services based on the input tax credit method. The introduction of Goods and Services Tax (GST) is a significant step in the reform of indirect taxation in India. Amalgamation of several Central and State taxes into a single tax is expected to mitigate cascading or double taxation, facilitating a common national market. The simplicity of the tax would lead to easier administration and enforcement. GST is being enforced as CGST, SGST and IGST. An attempt is made to study the ground reality of the slogan „One Nation One Tax‟. Key words: GST, CGST, SGST, IGST
Introduction: central excise, service tax and value added tax Origin of the concept: During 18th are examples of indirect tax. The Indian Century a German Economist conceived the indirect tax regime is characterized by idea of Value Added Tax (VAT) or multiple taxes, such as excise duty, Customs Harmonized Sales Tax (HST). He thought of a duty, VAT, Central sales tax, service tax. It sales tax on goods which would not affect the also includes local levies, such as octroi and cost of manufacture or distribution but would entry tax. Historically, none of these taxes be collected on the final price charged to the were creditable against one another. A part consumer. The tax was finally adopted by of the Customs duty and excise were France in 1954. In initial years it was imposed creditable. Recently, service tax has also been on large businesses but after the due course of brought into the creditable category. However, the time, it was imposed to include all VAT, Central sales tax and octroi were business sectors. entirely non-creditable taxes. In India certain taxes are levied by the Central Government Indirect Tax Regime in India: and some are levied by the State Indirect tax is a type of tax where the Governments. The distribution of power to incidence and impact of taxation does not fall levy these taxes is clear and unambiguous. As on the same entity. In the case of indirect tax, a result, over the period, the Central and the the burden of tax can be shifted by the State Governments are rigorously trying to taxpayer to someone else. Indirect tax has the expand their respective tax regime. effect to raising the price of the products on which they are imposed. Customs duty,
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Taxes subsumed by GST in India Central Level State Level Central Excise duty State Value Added Tax Duties of Excise (Medicinal and Toilet Entertainment Tax Preparations) Additional Excise Duty Central Sales Tax (levied by Centre and collected by State) Service Tax Octroi and Entry Tax Additional Customs Duty (Countervailing Purchase Tax Duty) Special Additional Duty of Customs Luxury Tax Cesses and Surcharges Taxes on lottery, betting and gambling Taxes on advertisement State Cesses and Surcharges. Source: www.cbec.gov.in will provide relief to producers and consumers Goods and Service Tax: by providing wide and comprehensive The Goods and Services Tax is meant to coverage of input tax credit set off, service tax be a unified indirect tax across the country on set off and subsuming the several taxes. products and services. In the current system in Efficient formulation of GST will lead to India, tax is levied at each stage separately, by resource and revenue growth for both center the Centre and the State, at varying rates, on and states majorly through widening of the tax the full value of the goods. But under the base and improvement in tax compliance. Goods and Services Tax system that is set to Arpit Shailesh and Dr. Taruna (2016) be introduced, tax will be levied only on the concluded that GST is helpful for the value added at each stage. It is a single tax development of Indian economy as well as it (collected at multiple points) with a full set-off will be very much helpful in improving the for taxes paid earlier in the value chain. Thus, GDP of the country more than two percent. the final consumer will bear only the GST The GST TAX reforms would impact national charged by the last dealer in the supply chain economy, international trade, firms and with set-off benefits at all the previous stages. consumers. In the opinion of Sukhram Mujale Research Methodology: (2017) GST can also be used as an efficient The research paper is based on tool for fiscal policy management if extensive study of available secondary data. implemented successfully due to nationwide The researcher has used exploratory research same tax. Implementation of GST requires technique. The study is based on review of undivided efforts of all stakeholders whether literature available in respective journals, government both central state, industries and annual reports, newspapers and magazines, consumers. According to Dr. Mahesh Daru, research papers published by eminent research introduction of GST is only the next stage of scholars. reform. One should keep expectations at a Literature Review: realistic level. Monika Sherawa and Upasana Girish Garg (2014) says GST will create a Pande (2015) mention that consumption and single unified Indian market to make the production of goods and services is economy stronger. GST is set to integrate undoubtedly increasing and because of state economies and boost overall growth. multiplicity of taxes in current tax regime According to Lourdunathan F. (2017) GST administration complexities and compliance
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 cost is also accelerating. A simplified, user The GST shall have two components: one friendly and transparent tax system was levied by the Centre (referred to as Central required which can be fulfilled by GST), and the other levied by the States implementation of GST. GST will give India a (referred to as State GST). Rates for world class tax system by grabbing different Central GST and State GST would be treatment to manufacturing sector. According approved appropriately, reflecting revenue Dr.Atul Bansal, under GST, the taxation considerations and acceptability. burden will be divided equally between Integrated Goods and Service Tax (IGST) manufacturing and services, through a lower is a tax levied on all inter state supplies of tax rate by iccreasing the tax base and goods and / or services. IGST will be minimizing competition. S. Muthupandi and applicable in both cases of import into Dr. A Joseph Xavier undertook a study of India and export from India. awareness of GST among college students. The three types of tax structure is They concluded that providing adequate and implemented to help tax payers take the relevant fundamental information about GST credit against each other, thus ensuring is necessary to make them better understand ‗One Nation, One Tax‘. the general principle of GST and also conform Input tax Credit is available which reduces to regulation. the taxes paid on inputs from taxes to be paid on output. When any supply of Goods and Service Tax services or goods are supplied to a taxable The Goods and Services Tax is meant person, the GST charged is called as Input to be a unified indirect tax across the country Tax. on products and services. In the current There are four slabs of GST. Goods and system in India, tax is levied at each stage services are taxed at 5 percent, 12 percent, separately, by the Centre and the State, at 18 percent and 28 percent. varying rates, on the full value of the goods. But under the Goods and Services Tax system Benefits of GST : that is set to be introduced, tax will be levied Easy compliance: only on the value added at each stage. It is a A robust and comprehensive IT system is the single tax (collected at multiple points) with a foundation of the GST regime in India. All full set-off for taxes paid earlier in the value services such as registrations, returns, and chain. Thus, the final consumer will bear only payments would be available to the taxpayers the GST charged by the last dealer in the online, which will make compliance easy and supply chain with set-off benefits at all the transparent. GST is introduced to ensure previous stages. indirect tax rates and structures to remain common across the country. This will result in Features of GST: increasing certainty and ease of doing This tax is a multi- stage and destination business. Thus, GST would make doing based tax that will be levied on every value business in the country tax-neutral, addition. irrespective of the choice of place of doing The GST has a system called input tax business. credit, by which sellers can claim the tax that Removal of cascading: has already paid. This will reduce the final The system of input tax-credits liability at the consumers‘ end. This step is throughout the value-chain, and across taken to overcome cascading effect of boundaries of States, would ensure that there CENVAT. is minimal cascading of taxes. This would
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AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018 reduce hidden costs of doing business. This computer literacy and unavailability of expert will automatically result in improving chartered accountants. competitiveness among the business. Possibility of Tax Evasion: The threshold of GST is businesses Boost to manufacturers and exporters: with more than Rs. 20 lakh annual turnover. The subsuming of major Central and This means businesses with less than Rs. 20 State taxes in GST, complete and lakhs turnover are exempted from GST. It comprehensive set-off of input goods and creates a loophole which may result in a services, and phasing out of Central Sales Tax possibility for mushrooming of dummy small (CST) would reduce the cost of locally scale companies that remain outside the tax manufactured goods and services. This will system. So a possibility of tax evasion cannot increase the competitiveness of Indian goods be ruled out. and services in the international market and Goods and Services beyond the scope of give boost to Indian exports. It‘s a better GST: opportunity to Indian exporters to compete There are certain services and goods globally. which are not covered under GST. To name a few, petroleum products, liquor, Services of Ultimate benefit to Consumers: employee to his employer, court or tribunal The multiple indirect taxes levied by services, duties performed by Members of Central and the state governments are Parliament, State Legislatures, Panchayats, abolished and single tax rate throughout the Municipal or other local authorities, services country is introduced in the form of GST. of funeral, burial or crematorium, sale of land Cascading effect has come to an end. It will and building, actionable claims (other than result in reduction of the prices of goods and lottery, betting and gambling). services at the hands of the consumers. There Six Months of Implementation of GST: will be only one tax from the manufacturer to The new GST tax regime came to the consumer which will improve force on JULY 1, 2017. Since then it has been transparency and reduce overall tax burden. one of the most rigorously discussed subject across the country. The implementation of Limitations of GST GST regime involved merging of all indirect Too many Tax Rates: taxes into a single tax. It involved a conscious Most of the countries which have effort to not hurt any sector that falls under the implemented GST have single GST rate. Only ambit of GST. However the implementation a few have two. In India there are four slabs of was not smooth. It gave rise to certain issues GST 5 percent, 12 percent, 18 percent and 28 which are as follows. percent. 12 percent GST imposed on sanitary Compliance becoming Costly and Tedious: napkins. Medical professionals and women The returns of GST are to be filed across the country protested against this online. There seems to be lot of confusion in decision. filing such returns. The question arises GST of 28 percent was imposed on all because of limited computer literacy, handicraft products. Earlier it was just 12 availability of internet connection, and poor percent before GST. The handicraft workers idea about filing returns. Small scale business agitated that it was not possible for them to enterprises may suffer due to poor or procure raw material at such a high tax rate interrupted internet connectivity, limited and still keep their business profitable.
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A lot of confusion was there in filing GST federalism in the pursuit of reforms. After tax returns. Even the qualified, experienced ratification by a majority of states and assent chartered accountants were in trouble. It of the President, it was enacted as Constitution resulted in fall in government‘s tax revenue (One Hundred and First Amendment) Act, for the month of October, 2017 which was 2016. Any change comes with positive and near about Rs. 86,346 crore. negative reactions. GST being a major tax In October 2017, the GST Council revised reform in India is not exception to this. GST the rates of 27 products. A group of will definitely have a positive impact on ministers were appointed to look into the various sectors and industry. GST is likely to issues faced by these businesses. improve tax collections and boost India‘s The council further slashed rates of GST on economic development by breaking tax 178 products in November 2017. It barriers between states and integrate India significantly brought down the burden on through a uniform tax rate. Speaking on the th various sectors. Daily consumption units concluding day of the 11 Global Doctors‘ like chocolates, chewing gums, beauty Summit at Kolkata, India‘s Vice President products became cheaper. Restaurants also Venkaiah Naidu said, ― The Goods and became cheaper to go. Service Tax (GST) is going to change India‘s The Government also extended the economy though initially it might have caused deadlines for filing tax returns so that tax pain. As rightly put up by the finance minister payers are able to file their returns on time Arun Jaitley ‗The introduction of the Goods and without confusion. The GST council and Service Tax has provided a significant announced in November 2017 and had opportunity to improve growth momentum by allowed businesses with turnover of up to reducing barriers to trade, business and related Rs. 1.5 crore to file final returns GSTR-1 economic activities‘. quarterly. Recently GST council has announced that References: businesses with turnover of more than Rs. https:// www.ndtv.com/business/economic- 1.5 crore, GSTR-1 has to be filed for the growth- slow- downin 2016-17-says-arun- period of July – November by January jaitely-1793526 10,2018. Earlier it was December 31, 2017. https://www.google.co.in/amp/s/www.forbe The GST provision requiring transporters to s.co carry on an electronic way bill (e-way bill) www.deccanchronicle.com when moving goods between states will be https://economictimes.indiatimes.com implemented from February 1 to check https://timesofindia.indiatimes.com rampant tax evasion and boost revenues by http://www.taxmanagementindia.com/visito up to 20 percent. r/detail_rss_feed.asp?ID=1226 http://www.gstindia.com/ Conclusion: http://www.thehindubusinessline.com/toda Due to complexities involved like yspaper/tp-others/tp- negotiations between 29 states, 2 Union taxation/article2286103.ece Territories with legislature and the Central http://www.moneycontrol.com/newstopic/g Government, it took considerable time to st/ finalize the structure and operational aspects Garg, Girish (2014), ―Basic Concepts and of the tax. The goods and services tax (GST) Features of Good and Service Tax in Bill was passed unanimously in the Parliament India‖, in August, 2016 reflecting cooperative fiscal
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International Journal of Scientific Research Arpit Shailesh, Dr. Taruna, (2016), ―A and Management, volume 2, issue 2. study on impact of goods and services tax on Indian economy: A key tax reform‖, Nitin Kumar (2014), ―Goods and Service International Journal of Commerce and Tax in India-A Way Forward‖, ―Global Management Research, Volume 2. Journal of Multidisciplinary Studies‖, Vol 3, Issue6, May 2014. Sakharam Mujalde , Avi Vani (2017), ―Goods and Service Tax (GST) and its Pinki, Supriya Kamna, Richa Verma(2014), outcome in India‖, Journal of Madhya ―Good and Service Tax – Panacea For Pradesh Economic Association, Vol. Indirect Tax System In India‖, ―Tactful XXVII , No. 1 Management Research Journal‖,Vol2, Issue 10, July2014 Dr Mahesh.U.Daru, (2016), ― A critical Appraisal of GST in India‖, International Lourdunathan F and Xavier P (2017), ―A Journal of IT and Management, volume 6 study on implementation of goods and services tax (GST) in India: Prospectus and challenges‖, International Journal of Applied Research, 3(1)
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