How to survive the collapse of a Bank in India

Lakshmi Vilas Bank is the fifth financial firm to collapse in India within the last 30 months. In these five banks, most were sending out message far in advance that they are about to fall. Is there any method for common people to survive in such failures?

Methods or tricks to survive:

Banking is a difficult business. In India it is a more difficult due to corruption and many legal problems. While there is repeated reforms in the recovery part of bad loans, the disbursement of loan is anything but transparent. The Banks have SOP on disbursement of loans but it collapses after every two decades. Last time there was a similar problem in 1996-99.

The high interest rates on credit is only a reflection of this problem of bad loans. The difference of 3-7% between the prime deposit rate and lending rate is unusually high to cover the cost of money wasted on bad loans. But that is another problem. So how does a common person survive such falling banks?

Few Survival tricks:

There are many simple rules which have to be followed. But this guide is for those who have funds below ten million (one Crore) in cash to handle. For sum more than that, these rules may help but may not be sufficient. First is Post Office Bank.

Post Office Bank

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The Prime Minister level summit between India and Luxembourg.

If Luxembourg is compared to with Indian Railways, it would be just one railway station out of the more than seven thousand five hundred of Railway Stations it has. Luxembourg has population of less than 7 lakh, which is the daily traffic on some of the stations of the Indian Railway. But Luxembourg is the second richest country in the word with per capita income of about 80 thousand USD on PPP basis. In terms of territory it is twice the size of tiny state of Goa in India. But despite it’s size, Luxembourg is one of the four Capitals of European Union and is seat of Justice in EU.

So what is so important that in this pandemic, both countries could not postpone the summit and decided to be across the table through the virtual video conference.

Luxembourg on FATF Grey List:

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Insects to be tracked by their sounds.

The chirp of the cricket may soon be used to monitor their species diversity.

Scientists are establishing an acoustic signal library that can help track the diversity of these insects.

Morphology-based traditional taxonomy has gone a long way to recognise and establish species diversity. But it is often not sufficient in delimiting cryptic species– a group of two or more morphologically indistinguishable species (hidden under one species) or individuals of the same species expressing diverse morphological features (which are often classified into multiple species). Therefore, identification solely based on morphological features leads to underestimation or overestimation of species diversity.

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This is what Ex President Obama said about Rahul Gandhi in his book Promised Land

There is a furore over what Ex President of USA Barak Obama has written about Rahul Gandhi in his book, Promised Land. Actually the way he has written, is very dismissive of India. Here is an extract from Chapter 24 of the Book

Most of all, India’s politics still revolved around religion, clan, and caste. In that sense, Singh’s elevation as prime minister, sometimes heralded as a hallmark of the country’s progress in overcoming sectarian divides, was somewhat deceiving. He hadn’t originally become prime minister as a result of his own popularity. In fact, he owed his position to Sonia Gandhi—the Italian-born widow of former prime minister Rajiv Gandhi and the head of the Congress Party, who’d declined to take the job herself after leading her party coalition to victory and had instead anointed Singh. More than one political observer believed that she’d chosen Singh precisely because as an elderly Sikh with no national political base, he posed no threat to her forty-year-old son, Rahul, whom she was grooming to take over the Congress Party.

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