Journal of Commerce and Management - … 2 Issue 3 December 2014.pdf · Children who are monitored more carefully by ... They need chances to reflect on what they have learnt,

Indian

Journal of Commerce and

Management

Volume 2 Issue 3 December 2014

Indexed in

Copyright © Indian Journal of Commerce and Management

No portion of the material published in the Indian Journal of Commerce and Management should be reproduced in any way form without the written permission of the editor.

Disclaimer

The views expressed by the authors do not necessarily represent those of the editor or publisher, or the management of IJOCAM. Though every care has been taken to avoid errors,

this journal is being published on the condition and understanding that all the information provided herein is merely for reference and must not take as having authority of or binding

in any way on the authors, editor and publishers who do not owe any responsibility for any damage or loss to any person, for the result of any action taken on the basis of this work.

The publisher shall be obliged if mistakes are brought to their notice.

Editor In Chief

Rama Bhadra Rao Maddu

Managing Editor

Dr.Jetti Pandu Ranga Rao

Executive Editor

R. Srinivasa Rao

Honorary Associate Editor

Dr. D. Thiruvengala Chary

Editorial Advisory Board

Prof. G. Kameswara rao,

Ph.d, (iit mad)

Rtd., professor of cbit, hyderabad

Dr. P. Veehraiah,

Professor, pss central institute of

ocational education, ncert, 131,

sone-ii, madya pradesh, bhopal-

462011

Dr. A. Narasimharao,

professor in commerce and

business management

Andhra university, ap

Prof. G.v.chalam

M.com., ll.m., m.b.a., ph.d.

dean, college development council

Department of commerce &

business administration

Acharya nagarjuna university

nagarjuna nagar - 522 510, andhra

pradesh, india.

Dr.k c biswal,

North estren hill university ,

Tura campus ,

Department of management ,

Tura - 794002,

Chandmari post ,

Megalaya

Mobile: +91 08414077901

Gouher ahmed,

ph.d; pmp

International management

consultant, north america, middle

east & south asia

Associate professor

Al ghurair university |

po box 37374 dubai | uae.

Tel: (+971 4) 4200223 ext: 323 |

fax: (+971 4) 4200224

Mobile: (+971 50) 836 7165

[email protected] |

[email protected]

Dr. K. Kanaka raju,

andhra university pg centre,

tadepallygudem

e-mail:

[email protected]

mobile: 0091 8125387145

Dr. Janaki rao rajana assistant professor,

department of social work

adikavi nannaya university,

rajahmundry – ap.

mailto:[email protected]


Contents

Article Title Author Name Pages

Learner Centered Education – Teacher Education Dr. Janaki rao rajana

1-5

Customers’ Choice Of Banks – A Factorial Analysis E. Hari prasad sharma ,

Prof. G.v. Bhavani prasad

6-15

Impact of Financial Inclusion Improvement Methods on Financial

Inclusion Network and Operations

Dr. K. Kanaka raju

Mr. B. Chellayya

16-23

Information Technology and Its Role in Indian Banking Sector Dr.p. Mohan

D.ch. Appa rao

24-32

Challenging dimensions of HRM in Globalized Era – the Role of

Employee Relations Management in Organizations

Dr. Kamjula neelima

Koppula narendar

33-43

Financial Inclusion Initiatives And Practices Of Public Sector Banks

In India

Kollu srinivasa rao

Dr. J. Chandra prasad

44-50

Tribal Development in Andhra Pradesh A.venkata swamy

51-56

Foreign Direct Investment In Retail Sector In India–Issues And

Challenges

A. Radhika

57-63

Human Rights and Empowerment of Women Dr.b.prabhakara rao

Bala nenavath

64-65

Crochet Lace Industry: Narsapur Dr.t.v.s.prasad

Dr. Gandham sri rama krishna

Dr.n.g.s.prasad

66-69

Scenario of Corporate Restructuring Sedembi veena

70-74

www.ijocam.in

1 Indian Journal of Commerce and management (IJOCAM) volume 2 issue 3 Dec-2014 , ISSN- 2348-4934(P), 2348-6325(O)

Learner Centered Education – Teacher Education

Dr. Janaki Rao Rajana

Assistant Professor, Department of Social Work

Adikavi Nannaya University, Rajahmundry – AP. 'Educated youth are the important a s s e t s of any nation. The whole

Process of

education is centered on them from elementary stage to higher stage of Education. A child is

influenced by many factors which surround him. One of the major socializing agents which

contribute a potent source of contact on him is his immediate family which one's personality is

shaped and character enlivened. The training provided at home is more practical than

theoretical. Children who are monitored more carefully by their parents tend to do better than

their peers. Learning environment is one in which resources and supports abound for learners

for the active creation of knowledge and construction of their own meaning. Authentic

assessments, when properly implernented are critical strategies for enabling people to

properly demonstrate learning. In this scenario the constructivist theory of learning and

knowledge will support teachers in creating a community of learners.

Every civilized society aims to educate every one of its children. This sworn commitment however should not be about just enacting well meaning legislations and

amendments to the constitution. Good intentions are a starting point but ultimately it is the

result that matters. We must look for creative and innovative ways of fulfilling our promise of

quality education to the next generation

The role of a teacher as an interventionist in imparting, reviving, re-designing and remodeling values by means of crystallization of facts and realities in terms of

life and reality is yet to be undertaken. The teachers alone can pave and prepare

avenues of learning by means of self-enquiry, self-appreciation and self-evaluation.

Education should pave the way for enhanced awareness, greater openness, ability and

courage to question, and toughness to search for solutions

What is learner centered education?

Learner cen te redness is a construct a n d philosophy b a s e d on the learner-

centered psychological principles. The perspective that couples a focus on individual

learners their heredity, experiences, perspectives, backgrounds, talents, interests,

capacities, and needs along with another focus on learning. The best available

knowledge about learning and how it occurs and about teaching practices, that are most

effective in promoting the highest levels of motivation, learning, and achievement for

all learners. This dual focus then informs and drives educational decision-making.

"Learner centered education can be viewed as a fundamental change in orientation from the traditional "content-centric' teaching and learning format in most

K-20 classrooms. The transition can be characterized along five dimensions" -

Weimer,[2002].

www.ijocam.in


"Learner Centered Education-Teacher Education"

Teacher-learner autonomy, by analogy with previous definitions of learner

autonomy, might be defined as the ability to develop appropriate skills, knowledge and attitudes

for oneself as a teacher, in cooperation with others

The learner is the beginning a n d the end point of the learning process. The learner

needs the focus of the course and he is in control of the learning experience. They are the

active partners i n the learning process. Learner centeredness is grounded i n

constructivist learning theory. Can t h i s h a p p e n in the case of teacher education

too. Of course is appears to be difficult i f not impossible.

But the educational administrator's now-a-days think, believe, and plan the whole process of teacher education in a centralized manner believing the way they

themselves did gain that area of knowledge holds good for this day too. But can we

say that is the reality? It does not seem to be. There are plans and plans, activities and

activities added. Record work, project work, community services and so on are added, edited,

cut and pasted. However, the general quality of teacher education does not seem to be going in

any way a forward and positive manner. How then the future teacher can influence children in

their endeavor to learn and develop and then apply them for sustainable development of

the nation they belong to. The answer to us seems to the ‘CONSTUCTIVISTIC’ approach.

What is constructivism?

Constructivism is a theory of how knowledge is created and how learning occurs. This

theory suggests that knowledge can in no way be treated as a liquid that can be poured

from the heads teacher to a student's head. As teachers or parents the best one can

do is to create environment that encourages children to construct their own knowledge and

understanding.

The original cone is attributed to Edgar Dale, 1949 and it indicates that we learn

best when we are involved in "Direct, Purposeful experiences"

Seven principles of good practice in undergraduate education have been

prepared by the Center for Learner Centered Education in the Arizona University,U.S.

Will these following good practices b e useful for us too in India? And for Teacher

Education? Why n o t we think, deliberate, prepare modules of it and experiment these

for the benefit of quality teacher education?

1. Student-faculty contact; frequent contact with faculty in and out of classes is the

most important factor in student motivation in involvement. Intellectual commitment encourages

them to think about their own values and future plans.

www.ijocam.in


2. Encourages co-operation among students working with others often increases

Involvement in learning. Sharing ones ideas and responding to others reactions

improves thinking and deepens understanding.

3. Active learning: Learning is not a spectator sport. Students do not learn much just

sitting in classes, listening to teachers, memorizing assignments and spitting classes, listening to

teachers, memorizing assignments and spitting out answers.

4. Prompt feed-back. Students need appropriate feed-back on performers to benefit

from courses. In classes, students need frequent opportunities to perform and receive

suggestions for improvement. They need chances to reflect on what they have learnt, what they

still need to know and how to assess themselves.

5. Emphasizes t i m e -on-task: Time and energy equals learning. Students need help in

learning effective time management for effective learning for students and effective teaching

for faculty. This can establish the basis for high performance for all.

6. Communicates high expectations: expect more a n d you will get it. High

10%

Read

20% Hear

30% See

50%See Both and Hear

70% Discuss With Others

80% Personal Experience

95% Through TEACHING Some One else

www.ijocam.in


Expectations are important for everyone. For poorly prepared, for those who are unwilling to

exert themselves and for the bright and well motivated. Teachers and institutions hold high

expectations for them and make extra efforts.

7. Respects diverse talents and ways of learning: students need the opportunity to

show their talents and learn in ways that work for them. Then they can be pushed to learn in new

ways that do not come so easily.

Recall, Comprehension, Application, Analysis, Synthesis and evaluation in one sense,

Bloom’s T a x o n o m y is upside-down. We remember information because we have worked

to use it in a meaningful way. Challenge a student to evaluate, and he will learn to synthesize,

analyze, apply, comprehend and utilize information. Much of the information he utilizes, he will

remember because of the context in which it was used. Challenge students to evaluate why an

apple falls from a tree and they will function in all classifications of Bloom's Taxonomy. Ifa

lesson is constructivist, it challenges students to apply each of these components of the

Taxonomy.

Teacher effectiveness is greatly dependant on teacher clientele. We often find

student-teacher to be more interested in practice than in theories in teaching. This

substantiates the point that the effectiveness of teaching and therefore the teachers

engaged in teaching are more concerned with practice than with

principles with teachers making through teacher education, a thriving proposition ..-.:- , .

both scientifically as-well-as psychologically.

Teacher education should therefore consider the following as essential features of teacher

effectiveness:

a) Proneness to development

b) Reciprocality c) Practicality

d) Contemporaneity e) Creativity

f) Aesthetic awareness

Teacher education, therefore, necessitates a re-orientation of the present poor environment

so that teachers become inspired in effective teaching. Admittedly, teacher education should pay

greater attention to cultivate creativity among teachers and teacher educators..

Suggestions: ,1-'\-.

1. The teachers as lifelong learners

www.ijocam.in


4. Diversified teacher education courses- regional need based -~ .... _. f • '. ", ..::-

3. Frequent supervisory activities m o r e as a feedback exercises

4. The heads of the institution invite new trends, and innovative practices

5. Student teachers carrying out action research projects

6. Freedom to student teachers to prepare teaching strategies on their

own.

References:

1. http://www.abor.asu.ed.ul4_special_programs/lce/ugprinciples_lce.htm

(Arizona University _

USA)

2. http://ll}ettleweb.unimelb.edu.aulguide/principles.html

3. Melbourne University - Australia http.Zwww.learnercentereded.org/

4. Methods for Quality Education-Prof.K.K. Vijayan Nambiar.

http://www.abor.asu.ed.ul4_special_programs/lce/ugprinciples_lce.htm

http://ll/

http://www.learnercentereded.org/

www.ijocam.in


Customers’ Choice Of Banks – A Factorial Analysis (A Study of Rural Bank Customers in Karimnagar District of Andhra Pradesh State in India)

E. HARI PRASAD SHARMA , Prof. G.V. BHAVANI PRASAD

Abstract:

Commercial Banking sector in India, after liberalization, had grown substantially in spite of its

social, political and economic problems. However, no study was made to find out the most

important factors that affect the customer a lot in selecting the bank. This study aims to determine

the most significant factors that rural customer thinks as important in his/her choice of bank.

Key Words: Commercial Banks, Public Sector Banks, Private Sector Banks, Rural Areas,

Influencing Factors.

Introduction:

Liberalization of Indian economy and introduction of financial sector reforms had changed the

financial system in general and banking system in particular. Many private and foreign banks are

entering into the Indian financial market and offering various innovative services to attract new

customers and to retain existing customers. This competition has a great challenge to all banking

institutions of all sizes. Customers are exposed to wider opportunities and in term lead to their focus

on value for their money. In this situation, (Sharma, 2010) the issue of how customers select their

banks has been given considerable attention by researchers. Exploring such information will help

banks to identify the appropriate marketing strategies needed to attract new customers and retain

existing ones.

Review of Literature

It is relevant to refer briefly to the previous studies and research in the related areas of the subject to

find out and to fill up the research gaps. The following are the some studies conducted by the

eminent authors and practitioners on the area of determinants of bank selection of a customer.

In Pakistan, (Saima, 2008), Another study in Pakistan, (AHMED*, 2008), In Tunisian (AZOUZI,

2009), (Kumar M, 2010), (Olawale Fatoki, 2011) In India, (VIRPARIA, 2013) a study made on

various selected factors and also analyzed as to which of these factors exercise the greatest,

moderate, and relatively lower influence as choice criteria in selection of a bank. 15 factors

identified, approximately in the order of their importance. General Group Impression as per the

Mean score technique was applied to elicit the results. According to the findings, based on the

empirical study, the three factors i.e. (1) Safety of Deposits (2) Security of Environment (3)

Cordiality of Staff exert the greatest influence, next six factors such as (1) Accuracy (2) Product

Packing (3) General Service Quality (4) Size and Strength (5) Advertisement and Publicity (6)

Friendship with Staff had the moderate importance and the rest six factors (1) Price and Service

Charges (2) Speed of Delivery (3) Peer Group Impression, (4) Face Lift, (5) Face lift (6) Proximity

had relatively lower influence in selection of a bank in India.

Need of the Study

Several studies have been made to investigate factors that affect customers’ choices in selecting a

bank. Among these studies include (Mokhlis S., 2010) who studied the determinants of bank

www.ijocam.in


selection criterion in Malaysia considering undergraduate students; while (Mokhlis S. S. H., 2009)

made an attempt to analyze gender-based choice decisions for selection of banks. Correspondingly,

in Bahrain (Almossawi, 2001), a case of college students and in Greek (Mylonakis, 2007), a

research task of customer preferences in the home loans market were done. Other studies are also

undertaken in Europe (Bosnia & Herzegovina) by (Cicic M., 2004) on the issue of bank selection

criteria in line with customers’ preference: what, why and how customers choose a particular bank

to be served. Although such studies have contributed substantially to the literature on bank

selection, their findings may not be applicable to other countries like India due to differences in

social, cultural, economic, political and legal environments.

Objectives of the Study

The research paper aims at identifying factors influencing customers’ choice of a bank. The

following are the main objectives of the present study:

To identify the influencing factors that affect customers’ choice of banking services.

To rank the factors affecting the choice of bank.

Methodology

In this paper an attempt has been undertaken to carry out a descriptive study regarding influence of

various factors in selection of a bank.

Data Collection

The study was conducted by taking three commercial banks, one from public sector (SBH), one

from private sector (HDFC) and one from Regional Rural Banks (RRBs).

The required data was collected from two sources namely Primary Data and Secondary Data.

Primary data was collected through structured questionnaire from the existing bank customers.

Secondary data was collected from the previous publications.

Sampling Unit

The sample unit consists of customers of the public sector, the private sector banks and RRBs of

rural areas in Karimnagar district of Andhra Pradesh in India. The respondents are farmers,

Employees, Business Persons and SHGs.

Size of the Sample

SAMPLE SIZE

Particulars No.

No. of Mandals Selected for the study (10% of the Total

57 Mandals in the District) 6

No. of Banks Selected (SBH, DGB & HDFC) 3

Target Groups (Farmers, Employees, Business People

and SHGs) 4

www.ijocam.in


No. of Respondents from each group 10

Total Sample Size (6*3*4*10) 720

Techniques of Analysis of Data

So, collected data was analyzed with the help of statistical tools such as averages, percentages, rank

correlation, F-test etc. The results are interpreted with the help of percentages in a meaningful

manner.

Data Analysis and Study Results

A. Demographical Analysis

To collect the required data, seven hundred and twenty questionnaires were distributed to

selected three (SBH, DGB and HDFC) bank customers in rural areas to know their preferences

in selection of bank in selected six mandals of Karimnagar district in Andhra Pradesh state in

India and six hundred and thirty returned. The response rate was 87.5 per cent. An average of

16.67 per cent of total respondents was responded from each mandal.

The results of demographic profile of the respondents under study revealed that gender was

almost evenly split in the proportions of 78.25 per cent males and 21.75 per cent females. 22.22

per cent of the respondents were below the age group of 30 years. 50% were in the age group of

21-25 years, 39.21 per cent in between 31 – 40 years, 23.49 per cent of respondents in between

the age group of 41 – 50 years, 10.16 per cent in between the age group of 51 – 60 and 4.44 per

cent respondents belonged to above 60 years. 94.76 per cent of respondents were married and

5.24 per cent respondents were unmarried.

The highest number of respondents i.e. 28.73 per cent of the total respondents possessed the

degree qualification, 19.68 per cent had 10th class qualification, 16.35 per cent respondents had

completed intermediate education 15.71 per cent of respondents had possessed only formal

education i.e. less than 10th class and 8.10 per cent possessed master degree qualification. The

remaining 8.73 per cent of the total respondents did not have any formal education. These were

illiterates and mostly belonged to farmers and SHGs categories.

Table - 1

Demographic Details of Respondents

Variable Category Bank Type Tota

l

Percentage

(%) SBH DGB HDFC

Mandal Areas

Siricilla 40 40 20 100 15.87

Huzurabad 40 40 22 102 16.19

Jagitial 40 40 30 110 17.46

Jammikunta 40 40 30 110 17.46

Sultanabad 40 40 30 110 17.46

Metpally 40 28 30 98 15.56

Total 240 228 162 630 100.00

Gender Male 173 161 159 493 78.25

www.ijocam.in


The data relating to occupation shows that 28.57 per cent of the total respondents belonged to

business category, 27.62 per cent belonged to employees category, 25.08 per cent belonged to

farmers category and the remaining 18.73 per cent of the total 118 in number belonged to self –

help groups (SHGs) category who spread to SBH and DGB bank only. The SHGs loan linkage

scheme was offered by these two public sector banks. SHGs were nil in HDFC bank as it was a

private sector and did not offer SHG linkage scheme.

B. Determinants of choice of commercial banks The determining factors or motivational factors are varying from customer to customer and bank to

bank. Selecting the bank and to open an account is mainly depend upon the need of the customer,

though, some factors like value added services, offering government benefits convenient location

of the bank and convenient business hours, quality services rendering by the bank, employee

behavior etc. will influence the customer greatly in selecting the bank to open an account. Some of

the most important influencing factors to open an account, in general, are selected and studied the

priorities given by the customers in choosing the bank for their financial needs.

The mean values and ranking based on priority of influencing factors for choosing a bank are

presented with the help of the table – 2.The data furnishes the details of ranks based on priority of determining factors for choosing a bank. The prompt and qualitative services had ranked first and

Female 67 67 3 137 21.75

Total 240 228 162 630 100.00

Age

Less than 30 56 37 50 140 22.22

31 - 40 83 96 68 247 39.21

41 - 50 51 62 35 148 23.49

51 - 60 33 22 9 64 10.16

More than 60 17 11 0 28 4.44

Total 240 228 162 630 100.00

Marital

Status

Married 229 220 148 597 94.76

single 11 8 14 33 5.24

Total 240 228 162 630 100.00

Educational

Qualifications

Master Degree 19 14 18 51 8.10

Graduation 71 48 62 181 28.73

Professional

Degree 5 2 10 17 2.70

Intermediate 34 40 29 103 16.35

SSC 43 48 33 124 19.68

Less Than SSC 46 44 9 99 15.71

No Formal

Education 22 32 1 55 8.73

Total 240 228 162 630 100.00

Occupation

Farmers 60 56 42 158 25.08

Business 60 60 60 180 28.57

Employees 60 54 60 174 27.62

SHGs 60 58 0 118 18.73

Total 240 228 162 630 100.00

www.ijocam.in


second. The third, fourth and fifth ranks had given to location of the bank branch, business timing

of the bank and behavioural attitude of the bank employees respectively.

Table – 2

Influencing Factors for Opening Bank Account

Sl.

No. Influencing Factors

Total

Mean Ranks

1 Place of the Bank Branch 7.34 3

2 Banking Business Hours 7.22 4

3 Employees Attitude/Behavior 6.69 5

4 Bank Advertisement in T.V.s/News Papers etc. 4.95 7

5 Mobile Messages alerts 4.94 8

6 References of friends/relatives 4.48 10

7 Prompt Services of Bank 7.82 1

8 Qualitative Services 7.72 2

9 Value Added Services 4.71 9

10 Less Transactions Cost. 5.72 6

11 Govt. Benefit/Others 4.14 11

Respondents, under the study, have been given less priority to the remaining factors such as

less transaction cost, advertisements of the particular bank, mobile messages, and value added

services. It is note that those factors, friends and relatives referrals and other factors are the

least prioritized by the respondents. With this, it is inferred that the rendering qualitative service

at prompt time is most significant factor to attract more number of customers to open their bank

account to meet their financial requirements.

Table – 3

Determining Factors for Opening Bank Account

Sl.


SBH

(Public Sector Bank) DGB

(Rural Bank)

HDFC

(Private Sector Bank) TOTAL

Mean Ranks Mean Rank Mean Rank Mean Ranks

1 Place of the Bank Branch 7.72 3 6.90 4 7.40 4 7.34 3

2 Banking Business Hours 7.41 4 7.05 2 7.18 5 7.22 4

3 Employees Attitude/Behavior 6.09 5 6.78 5 7.46 3 6.69 5

4 Bank Advertisement in

T.V.s/News Papers etc. 4.88 8 5.02 8 4.96 9 4.95 7

5 Mobile Messages alerts 4.71 9 4.59 9 5.76 7 4.94 8

6 References of friends/relatives 4.26 10 4.50 10 4.79 10 4.48 10

7 Prompt Services of Bank 7.98 2 7.87 1 7.52 2 7.82 1

8 Qualitative Services 8.17 1 6.94 3 8.17 1 7.72 2

9 Value Added Services 4.23 11 4.16 11 6.20 6 4.71 9

10 Less Transactions Cost. 5.34 6 6.23 6 5.57 8 5.72 6

11 Govt. Benefit/Others 5.21 7 5.96 7 0.00 11 4.14 11

www.ijocam.in


The table 3 presents the details about bank wise factors that are influencing for opening an account

in SBH, DGB and HDFC bank. In the case of SBH, qualitative services, prompt services provided

by the bank and place of the bank branch were the highly influencing factors to choose the bank for

opening an account. These factors ranked 1st, 2nd and 3rd by the customers. In the case of DGB

prompt services, business hours of the bank and qualitative services provided by the bank were

ranked as 1st, 2nd and 3rd respectively by its customers. Qualitative services and prompt services

provided by the bank were ranked 1st and 2nd respectively by the HDFC bank customers. Place of

the bank and business hours of the bank were ranked 3rd and 4th in this bank.

Table 4

Spearman Rank Correlation

In Between Co-efficient

SBH & DGB 0.95

SBH & HDFC 0.58

DGB & HDFC 0.48

The ranks of the various influencing factors given by the customers to the banks were tested with

the help of spearman rank correlation and proved that there was a positive correlation among the

ranks of the bank.

The high positive correlation was established between two public sector banks i.e. SBH and DGB because customers expressed similar opinions against many influencing factors such as employee

attitude and behaviour towards the customers of the bank (5th rank), less transaction cost (6th rank),

offering government benefit schemes such as SHG linkage loans and subsidized loans to farmers

(7th rank), bank advertisements (8th rank), mobile message alerts (9th rank), references of relatives

and friends (10th rank) and value added services (11th rank).

The positive correlation was observed between SBH and HDFC i.e. public and private sector banks

because customers expressed similar opinions against some influencing factors such as qualitative

services (1st rank), prompt services (2nd rank) providing by these two banks and references of

relatives and friends to open an account in these banks (10th rank).

In between DGB and HDFC banks also the positive correlation was found because customers

conveyed the similar view against the two influencing factors i.e. the location of the bank branch

(4th rank) and references of relatives and friends (10th rank) and very near opinions expressed

against some other factors.

Table – 5

Tests of Between-Subjects Effects

Dependent Variable: Bank Type

Source Type III Sum of

Squares df

Mean Square

F Sig.

Corrected Model 228.474a 104 2.197 7.038 .000

Intercept 18.988 1 18.988 60.834 .000

Place of Bank Branch 4.179 10 .418 1.339 .206

Business Hours 3.619 9 .402 1.288 .240

Employee Attitude and Behavior 8.891 10 .889 2.849 .002

Advertisements 5.817 10 .582 1.864 .048

www.ijocam.in


Mobile Message Alerts 5.677 10 .568 1.819 .055

References of Relatives and Friends 3.060 10 .306 .981 .459

Prompt Services 9.567 10 .957 3.065 .001

Qualitative Services 4.994 8 .624 2.000 .045

Value Added Services 5.089 10 .509 1.630 .095

Less Transactions Costs 4.397 10 .440 1.409 .173

Government Benefits 6.249 7 .893 2.860 .006

Error 163.869 525 .312

Total 2610.000 630

Corrected Total 392.343 629

a. R Squared = .582 (Adjusted R Squared = .500)

Factors in bold are influenced by type of bank ( sig value is less than 0.05 or 0.10)

The data also reviewed with help of SPSS and inferred that factors such as Prompt Service given by

the bank, Employee Attitude and Behaviour, Advertisements, Mobile Message Alerts, Government

Benefits Qualitative Services and Value Added Services were variable and differ from bank to bank

and mostly influence the customers in choosing the bank to open an account.

Table – 6

Influencing Factors for Opening Bank Account

Sl.


Farmers SHGs Business Employees Total

Mean Ranks Mean Rank Mean Rank Mean Ranks Mean Ranks

1 Place of the Bank Branch 6.38 5 8.00 2 8.03 3 8.45 1 7.72 3

2 Banking Business Hours 7.55 3 7.23 4 7.27 4 7.58 4 7.41 4

3 Employees Attitude/Behavior 6.17 6 5.98 6 6.38 5 5.82 5 6.09 5

4 Bank Advertisement in T.V.s/News

Papers etc. 4.95 8 4.60 7 4.73 8 5.25 8 4.88 8

5 Mobile Messages alerts 4.25 10 4.10 10 5.15 7 5.35 7 4.71 9

6 References of friends/relatives 4.78 9 4.18 9 4.00 10 4.08 10 4.26 10

7 Prompt Services of Bank 7.57 2 8.30 1 8.22 2 7.83 3 7.98 2

8 Qualitative Services 7.93 1 7.93 3 8.68 1 8.13 2 8.17 1

9 Value Added Services 4.05 11 4.08 11 4.53 9 4.25 9 4.23 11

10 Less Transactions Cost. 5.60 7 4.42 8 5.53 6 5.80 6 5.34 6

11 Govt. Benefit/Others 6.77 4 7.17 5 3.47 11 3.45 11 5.21 7

The table 6 presents the details about customer wise factors that are influencing for opening an

account in selected bank. In the case of Farmers, qualitative services, prompt services provided by

the bank and business hours of the bank branch were the highly influencing factors to choose the

bank for opening an account. These factors ranked 1st, 2nd and 3rd by the customers respectively. In

the case of SHGs prompt services, place of the bank branch and qualitative services provided by the

bank were ranked as 1st , 2nd and 3rd respectively by the its customers. Qualitative services and

prompt services provided by the bank were ranked 1st and 2nd respectively by business category

customers. Place of the bank qualitative services and prompt services provided by the bank and

business hours of the bank were ranked 1st, 2nd, 3rd and 4th ranks respectively by the employee type

of customers.

www.ijocam.in


Table – 7

Spearman Rank Correlation

In Between Co-efficient

Farmers & SHGs 0.93

Farmers & Business 0.63

Farmers & Employees 0.61

SHGs & Business 0.7

SHGs & Employees 0.7

Business & Employees 0.98

The ranks of the various influencing factors given by the selected customers to the banks were

tested with the help of spearman rank correlation and proved that there was a positive correlation

i.e. the similarity in opinions among the ranks given by various types of customers.

The high positive correlation was established in respect of views between business and employee

customers and farmer and SHG customers. Because of similar opinions expressed against many

influencing factors (8 factors i.e. Banking Business Hours, Employees Attitude/Behavior, Bank

Advertisement in T.V.s/News Papers etc., Mobile Messages alerts, References of friends/relatives,

Value Added Services, Less Transactions Cost, and Govt. Benefit/Others in the case of business

and employee customers and 4 factors i.e. Employees Attitude/Behavior, Mobile Messages alerts,

References of friends/relatives, Value Added Services in the case of farmer and SHG customers) by

these customers.

Similar opinions, in regarding influencing factors that caused for opening an account in the bank

were expressed by SHGs, Business and Employee customers. So the positive correlation was found

in between SHGs & Business and SHGs & Employees.

In the case of correlation between farmers and business customers, similar views were found in

respect of Bank Advertisement in T.V.s/News Papers etc., Prompt Services of Bank and Qualitative

Services. So, positive correlation was established in between these categories of customers.

Positive correlation was observed in the case of Farmers & Employees also. They also expressed

almost all similar opinions in respect of factors that are caused for opening an account in the banks

in rural areas

. Table – 8

Tests of Between-Subjects Effects

Dependent Variable: Customer

Source Type III Sum of

Squares df

Mean

Square F Sig.

Corrected Model 189.396a 104 1.821 1.861 .000

Intercept 57.975 1 57.975 59.238 .000

Place of the Bank Branch 38.038 10 3.804 3.887 .000

Business Hours 20.676 9 2.297 2.347 .013

Employee Attitude and Behavior 18.903 10 1.890 1.931 .039

Bank Advertisement in

T.V.s/News Papers etc. 31.675 10 3.167 3.237 .000

Mobile Message Alerts 28.031 10 2.803 2.864 .002

www.ijocam.in


Reference of Relatives and

Friends 30.140 10 3.014 3.080 .001

Prompt Services 14.004 10 1.400 1.431 .163

Qualitative Services 19.288 8 2.411 2.464 .013

Value Added Services 20.938 10 2.094 2.139 .020

Less Transaction Costs 25.600 10 2.560 2.616 .004

Govt. Benefit 10.606 7 1.515 1.548 .149

Error 513.804 525 .979

Total 4332.000 630

Corrected Total 703.200 629

a. R Squared = .269 (Adjusted R Squared = .125)

Factors in bold are influenced by type of bank ( sig value is less than 0.05 or 0.10

From the data it is inferred that factors such as Prompt Services and Govt. Benefit were the constant

factors and did not show any influence on the customers and remaining factors such as Place of

Bank Branch, Business hours, Employee Attitude and Behavior, Advertisements, Mobile Message

Alerts, Qualitative Services, Value Added Services and Less Transaction Costs have shown varied

influence from bank to bank in respect of customers.

Conclusions:

The present study considered 11 factors in order to examine the priority of the customers of Public

sector Banks (SBH), Regional Rural Bank (DGB) and Private sector Bank HDFC) in 6 selected

mandals of Karimnagar district.

The findings of the study revealed that, in the case of SBH, qualitative services, prompt services

provided by the bank and place of the bank branch were the highly influencing factors in the

selection of bank. In the case of DGB prompt services, business hours of the bank and qualitative

services provided by the bank were highly prioritized by its customers. Qualitative services prompt

services provided by the bank, Place of the bank and business hours of the bank were highly

influencing factors in the case of HDFC bank.

It is also inferred that factors such as Prompt Service given by the bank, Employee Attitude and

Behaviour, Advertisements, Mobile Message Alerts, Government Benefits Qualitative Services and

Value Added Services were variable and differ from bank to bank and mostly influence the

customers in selecting the bank.

On the other hand, customer wise determining factors in selected bank, in the case of Farmers,

qualitative services, prompt services provided by the bank and business hours of the bank branch

were the highly influencing factors to choose the bank. In the case of SHGs, prompt services, place

of the bank branch and qualitative services provided by the bank were more influential. Qualitative

services and prompt services provided by the bank were highly influencing the business category

customers. Place of the bank, qualitative services and prompt services provided by the bank and

business hours of the bank were highly prioritized factors in the case of employee type of

customers.

www.ijocam.in


The study also reviewed that factors such as Prompt Services and Govt. Benefit were the constant

factors and did not show any influence on the customers and remaining factors such as Place of

Bank Branch, Business hours, Employee Attitude and Behavior, Advertisements, Mobile Message

Alerts, Qualitative Services, Value Added Services and Less Transaction Costs were differed from

customer to customer and mostly influence the customers in choosing the bank.

Bibliography

AHMED*, H. U. (2008). AN EMPIRICAL ANALYSIS OF THE DETERMINANTS. Pakistan

Economic and Social Review , 46 (2), 147-160.

Almossawi, M. (2001). Bank Selection Criteria Employed by College Students in. International

Journal of Bank , 3 (19), 115-25,.

AZOUZI, D. (2009). The Adoption of Electronic Banking in Tunisia: An Exploratory Study.

Journal of Internet Banking and Commerce , 14 (3), 1-11.

Cicic M., B. N. (2004). Bank Selection Criteria Employed by.

Commercial Bank Selection:. (2009). European Journal of Economics, Finance and Administrative

Sciences , 1 (16), 263-73.

Dr.Mohmod Jasim Alsamydia, D. O. (2012). The factors Influencing consumers' satisfaction and

continuity to deal With E-Banking Services in Jordan. Global Journal of Managment and Business

research , 12 (14), 129-141.

Fatoki, C. C. (2011). Factors Influencing the Choice of Commercial Banks by. International Journal

of Business and Management , 6 (6), 66-76.

www.ijocam.in


Impact of Financial Inclusion Improvement Methods on Financial Inclusion

Network and Operations

Dr. K. Kanaka Raju,

Assistant Professor,

E-Mail: [email protected]

Mobile: 0091 8125387145

Mr. B. Chellayya,

Research Scholar,

E- Mail: [email protected]

Mobile: 0091 9491789332

Abstract

The data has been collected through the structured questionnaire from the 750 respondents. The

secondary data obtained from the existing literature and review. The study found that 23.5 per cent

of variation in Financial Inclusion Network and Operations (FINO) was explained by the

independent variables and state that there was a significant difference between each other. The

study also found that joint liability group was more favourable towards the Financial Inclusion

Network and Operations (FINO), founded by the Zero Balance accounts, Self-Help Groups (SHGs),

micro finance, business facilitators and business correspondents. Finally it is advised that improve

the degree of literacy level of our people to familiarize the financial literacy for well being of the

human kind.

Introduction:

Financial access provides an environment where the common people have access to the

formal financial institutional system and thereby are able to access various financial products such

as deposits, credit, micro-insurance/pensions; financial counselling and safe funds transfer at

affordable prices and with ease of access. The access could be to all or any of the formal financial

institutions, markets and payment systems with all or any financial instrument. Thus, financial

inclusion is the process of facilitating the access of those sectors/segments of the population which

are denied these facilities to become a part of the formal financial system, either as individuals or as

groups. The easiest way to ensure better financial inclusion is to open more branches of banks and

financial inclusions, removing various obstacles in accessing financial services from banks by very

poor people. Technological advances can only reduce transaction costs, of the clients and the

banks/financial institutions. Thus, financial inclusion should not add to the operational costs of

financial institutions so that these continue to render affordable services to the common customers.

Review of literature:

S.Mahendra Dev (2006) opined that required new regulatory procedures and devpoliticisation of

the financial system

S.Ramesh and Preeti Sahai (2007) OPinioned that notwithstanding the regulatory, operational and

other aspects in focus, financial inclusion is a complex issue which cannot be solved alone by any

actors in the system. Formal financial institutions such as, banks, insurance companies, mutual

funds, pension companies will have to join hands with small NGO-MFIs, larger NBFC- MFIs, and

technology providers to enable inclusion. The strengths of these institutions will have to be put

together through sound collaborations for financial inclusion. Local and national presence

organizations have to ensure that these partnerships look at both commercial and social aspects to

help achieve scale, sustainability, and impact.

Dr. J. Sadakkadulla (2009) concludes that, “Financial inclusion is not an option but a compulsion.

www.ijocam.in


Elaben Bhatt (2009) estimated that globally over two billion people are excluded from access to

financial services, of which one third is in India. The committee on financial inclusion (Rangarajan

Committee 2006) observed that in India 51.4 per cent of former households are financially excluded

from both formal and informal sources and 73 per cent of the farmer households do not access

formal sources of credit. To be specific, those excluded are marginal farmers who happen to be

women who are further excluded right from the first stage of perception.

M. Ramachandran (2009) explained that the government as a part of its initiative has setup a

Pooled Finance Development Fund (PFDF) to provide credit enhancement to the local bodies to

access funds from the capital market, based on their credit worthiness for funding bankable urban

infrastructure projects. This could enable the ULBs to achieve sustainability and eventually attain

financial inclusiveness.

C.B. Bhave (2009) proposed that the various ways in which people in remote areas can be brought

into the system. In this process of inclusion, the first inclusion that needs to be made, if we really

want them to be included into things, is including them in the power structure. Do we really want to

take choices to a person who is not a part of the power system is the issue that we need to answer. It

should not be our effort to say that this man who is outside the banking system must come into the

banking system because. We don’t know whether the banking system is good for him or not. So the

issue of inclusion becomes one of getting him into the banking system. The real issue is whether he

has the choice to decide whether he wants to get into the banking system or not, and are we offering

him a real choice or not.

CMA C. R. Shiv Kumaran (2010) stated that one of the most important challenges being faced

today with regard to Financial Inclusion is about establishing the identity and delivering efficiently

the financial products.

Nandan Nilekani (2010) emphasized that building services and products to cater to the poor -

accessible consumer goods, decentralized governance infrastructure, low-cost solutions in lighting,

water supply, transportation, and so on.

Ambreena Manji (2010) opined that, it was difficult to reconcile the promotion of financial

inclusion with the aim of international development to end poverty.

N. D. S. V. Nageswara Rao (2010) suggested that Banks / RBI should conduct awareness camps

about Financial Inclusion to the Bank staff.

D. Devandhiran and Sreehari R.(2011) attempts to explore now technological services which

are relevant to various strategies followed by banks to deliver banking technological services in

rural banking.

Sachin Joseph (2011) stated that Micro-credit and Micro-savings have great potential to alleviate

poverty in India. The success of small packaged products and one Rupee Sachets in FMCG sector

has shown how selling in small amounts and utilizing the principle of economies of scale can lead

to better profit margins. Through regulatory reforms in the field of Financial Inclusion small and

large financial institutions are free to expand their range of products and delivery channels in

partnership with other stakeholders, to reach the poorest of the poor and still make a profit. Thus

through the use of technology, innovation and marketing strategies, financial inclusion will prove

that “Small is Beautiful

Srinivas Vissapragada(2013) concludes that It is becoming increasingly apparent that addressing

financial exclusion will require a holistic approach on the part of the banks in creating awareness

about financial products, education, and advice on money management, debt counseling, savings

www.ijocam.in


and affordable credit. The various financial services include credit, savings, insurance and payments

and remittance facilities.

Manjunath(2013) strongly believe that financial inclusion plays a crucial role in development and

sustainable prosperity as is being increasingly recognized and acknowledged globally. Large

segments of populations need to be part of formal payment system and financial savings and lead to

higher economic development. It is clear from the study that, inclusive growth is very necessary for

sustainable development and equitable generation of wealth and prosperity. Thus, “financial

inclusion is no longer a policy choice today but a policy compulsion”.

Objectives of the study: after verifying the existing literature, the following objectives were found.

1. To examine the perceptions of respondents regarding various issues of financial inclusion.

2. To know the relationship between the FINO and the independent variables.

3. To offer a suitable suggestions to strengthen the financial inclusion.

Methodology of the study: The data obtained from the structured questionnaire through the 750

respondents, the secondary data obtained from the existing literature and review.

Analysis and interpretations of the study

Table 1. Gender of the respondents

Gender Frequency Percent

Male 480 64.0

Female 270 36.0

Total 750 100.0

In table.1: describes about the distribution of the respondents based on gender. The majority

of the respondents (64 per cent) belonged to the male category and rest of them confined to the 36

per cent. Hence, it can be concluded that majority of the respondents belonged to the male category.

Table .2 Ages of the respondents

Age(in years) Frequency Percent

18-25 108 14.4

25-35 222 29.6

35-45 244 32.5

45and above 176 23.5

Total 750 100.0

Table 2: This table reflects that the distribution of respondents based on the age. The 32.5 percent

of the respondents belong to the age group of the 35-45, followed by the 25-35 years, 45 and above,

and 18-25. Hence, it can be concluded that the more number of respondents belonged to the age

group of 35-45.

Table 3.Marital status of the respondents

Marital status Frequency Per cent

un married 24 3.2

married 596 79.5

widow/widower 108 14.4

divorced 22 2.9

Total 750 100.0

In table 3 explains the marital status of the respondents. The majority of the respondents (79.5 per

cent) belonged to the married group, followed by the widow/widower, unmarried and divorced.

Table.4 Religion of the respondents

Religion Frequency Percent

www.ijocam.in


Hindu 694 92.5

Muslim 26 3.5

Christian 30 4.0

Total 750 100.0

Table. 4 tells us that the distribution of respondents based on the religion. The majority of the

respondents (92.5 percent) belonged to the religion of the Hindu, followed by the Christian and

Muslim.

Table.5 Language of the respondents

Language Frequency Percent

Telugu 750 100.0

Table 5 indicates that 100 per cent of respondents belonged to the Telugu. Hence, it can be

concluded that all the respondents belonged to the Telugu.

Table.6 Literacy Level of the respondents

Literacy Level Frequency Percent

Illiterate 180 24.0

Signature capacity 84 11.2

Not completed SSC 140 18.7

SSC 82 10.9

Intermediate 76 10.1

Polytechnic 64 8.5

Bachelor degree 94 12.5

Master degree 30 4.0

Total 750 100.0

Table 6 reflects that the distribution of respondents based on the literacy level. The 24 per cent of

the respondents belonged to the illiterate, followed by the Non completion of SSC, Bachelor

degree, signature capacity, SSC, Intermediate, Polytechnic and MasterDegree.

Table .7Professions of respondents

Profession Frequency Percent

Farmer 132 17.6

agriculture labour 262 34.9

construction labour 48 6.4

industrial labour 42 5.6

rearing livestock 36 4.8

household industry 30 4.0

Business 38 5.1

government employee 68 9.1

private employee 94 12.5

Total 750 100.0

In table 7 narrates about the distribution of respondents based on their profession. The 34.9 per cent

of respondents belonged to the agriculture labour, followed by the farmer, private employee,

government employee, construction labour, business rearing livestock and household industry.

Table.8Income of the respondents

Income of the respondents Frequency Percent

Below 5000 106 14.1

5001 - 10000 424 56.5

www.ijocam.in


10001 - 15000 114 15.2

15001 -20000 42 5.6

20001 -25000 38 5.1

Above - 250001 26 3.5

Total 750 100.0

Table 8 furnishes the information regarding the distribution of respondents based on their level of

Income. The majority of the respondents (56.5 per cent) earn the income level between 5001-10000,

followed by the 10001-15000. Hence, it can be concluded that the majority of respondents belonged

to the income group of 5,001-10,000.

Table.9 Variables Entered/ Removed

Model Variables Entered Variables Removed Method

Zero Balance Accounts?

No Frills Account

business correspondents

Micro insurance

Self Help Groups (SHGs)

business Facilitators

Joint liability Groups

Micro Financea

a. All requested variables entered.

b. Dependent Variable: Financial inclusion improveMethods-Financial Inclusion Network and

Operations (FINO)

Analysis: Table 9 narrates about the entered as independent variations, Financial Inclusion

Network and Operation (FINO) considered as a dependent variables.

Table.10 Model summary

Model R R Square Adjusted R Square Std. Error of the

Estimate

1 .485a .235 .228 .967

a. Predictors: (Constant), Financial inclusion improves methods- Zero Balance Accounts? No

Frills Account, business correspondents, Micro insurance, Self Help Groups (SHGs),

business Facilitators, liability Groups, Micro Finance.

Analysis: The above regression table explains about 23.5 percent of variation in the Financial

Inclusion Network and Operation (FINO) was explained by the variables of independent

variables. The standard error of the estimate of this table is error of the estimate of this table is

0.976, it indicates that it is a fit for the regression model.

Table 11: ANOVAb

Model Sum of Squares Df Mean Square F Sig.

Regression 213.064 7 30.438 32.571 .000a

Residual 693.410 742 .935

Total 906.475 749

a. Predictors: (Constant), Financial inclusion improves methods- Zero Balance Accounts?

No Frills Account, Financial inclusion improve methods-business correspondents, Financial

inclusion improve methods- Micro insurance, Financial inclusion improve methods-Self Help

Groups (SHGs), Financial inclusion improve methods-business Facilitators, Financial inclusion

improve methods-Joint liability Groups, Financial inclusion improve methods- Micro Finance.

www.ijocam.in


b. Dependent Variable: Financial inclusion improve methods- Financial Inclusion Network

and Operation (FINO)

Hypothesis -1

Null Hypothesis (H0): There is no significant difference between the dependent variable of FINO

to the predictors of above.

Alternative Hypothesis (H1): There is a significant difference between the dependent variable of

FINO to the predictors of above.

Analysis: The sum of squares of the residual value was much more than the sum of square of the

regression, where df=749, F=32.571, P=0.000. Hence, it is observed that proposed null hypothesis

was rejected and inferred that there was a significant difference between the FINO to the predictors.

Table.12Coefficientsa

Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

B

Std.

Error Beta

(Constant) .853 .144 5.932 .000

business correspondents -.026 .036 -.024 -.722 .470

business Facilitators .076 .033 .080 2.288 .022

Joint liability Groups .223 .037 .217 6.002 .000

Self Help Groups (SHGs) .144 .037 .136 3.909 .000

Micro Finance .101 .041 .101 2.486 .013

Micro insurance .076 .034 .087 2.241 .025

Zero Balance Accounts? No Frills

Account .161 .041 .139 3.956 .000

a. Dependent Variable: Financial inclusions improve methods- Financial Inclusion Network

and operations (FINO).

Analysis: Table12: narrates about the coefficient of the various independent variables of the

financial inclusion. This table reflects that the financial inclusion improve methods, joint liability

was more favourable towards the dependent variable of the FINO, followed by the zero balance

accounts, Self-Help Groups (SHGs) microfinance, business facilitators and business

correspondents.

Table .13 Paired sample Statistics

Mean N Std. Deviation Std. Error Mean

Pair 1 Proximity of bank 2.48 750 1.074 .039

minimum balance 2.64 750 1.142 .042

Pair 2 employees behaviour 3.06 750 1.095 .040

getting introductory sign 3.10 750 1.168 .043

Pair 3 service delivery speed 3.27 750 1.167 .043

advisory services 2.97 750 1.034 .038

Pair 4 application process 2.93 750 1.094 .040

additional freebies 2.82 750 1.132 .041

Table 13: This table shows that the paired sample statistics of various pairs.

Table 14.Paired Samples Correlations

N Correlation Sig.

Pair 1 Proximity of bank & minimum balance 750 .513 .000

Pair 2 employees behaviour & getting introductory sign 750 .423 .000

www.ijocam.in


Pair 3 service delivery speed & advisory services 750 .444 .000

Pair 4 additional freebies 750 .267 .000

Analysis: Table 14: reflects that the information o the two variables, in pair, having of moderate

relationship between the variables of the balance and minimum balance in pair 2 as well as pair 3

also consist of a moderate relationship, but there was a weak relationship from the application

process to the additional freebies.

Table 15: Paired sample test

Paired Differences

Mean

Std.

Deviation

Std.

Error

Mean

95%

Confidence

Interval of the

Difference

t df

Sig.

(2-

tailed) Lower Upper

Pair

1

Proximity of bank

-minimum balance -.155 1.095 .040 -.233 -.076

-

3.868 749 .000

Pair

2

employees

behaviour - getting

introductory sign

-.045 1.217 .044 -.133 .042 -

1.021 749 .308

Pair

3

service delivery

speed - advisory

services

.304 1.166 .043 .220 .388 7.139 749 .000

Pair

4

application process

- additional

freebies

.107 1.347 .049 .010 .203 2.168 749 .030

Table 15: This table reflects that the there was a significant difference between the two variables in

each pair between the two variables in each pair except the pair of service delivery speed to the

advisory services.

Findings of the study:

After examining the analysis parts of the information, the following findings were observed

1. The study found that 23.5 per cent of variation in FINO was explained by the predictors.

2. The study revealed that there was a significant difference between the variable of FINO to

the other independent variables, zero balance accounts, no frills account, business

correspondents, micro finance, micro insurance, self help groups, business facilitators, joint

liability groups and micro finance.

3. the study found that joint liability groups was more favourable towards the Financial

Inclusion Network and Operation (FINO), followed by the zero balance accounts, self help

groups, micro finance, business facilitators and business correspondents.

Suggestions of the study:

It is suggested that improve the degree of literacy level of people to create awareness on

proposed financial literacy which is helpful to the uplift of their lives. There is a need of the

diversification o the profession instead of occupation of the primary sector.

References:

1.S. Mahendra Dev, “Financial Inclusion: Issues and Challenges”, Economic and Political Weekly, Vol. 41, No.

41, pp. 4310-4313, Oct. 14-20, 2006.

2.S.Ramesh and Preeti Sahai, “Universal Financial Inclusion in India: The Way Forward”, Cab Calling, Pp. 69

www.ijocam.in


– 73, July – September 2007.

3.Dr. J. Sadakkadulla, “Financial inclusion: the road ahead”, The Journal of Indian Institute of Banking &

Finance, Vol. 80, No. 1, pp. 70 – 72, January - March 2009.

4.Elaben Bhatt, “Financial Inclusion”, The Journal of Indian Institute of Banking & Finance, Vol. 80, No. 1,

pp. 73 – 75, January - March 2009.

5.M. Ramachandran, “Urban local bodies and Financial Inclusion”, Financial Inclusion, Edited by Sameer

Kochhar, R. ChandraShekhar, K.C. Chakrabarty and Deepak B. Phatak, pp. 33 – 38, 2009.

6.C.B. Bhave, “Is Technology Inclusive?”, Financial Inclusion, Edited by Sameer Kochhar, R.

ChandraShekhar, K.C. Chakrabarty and Deepak B. Phatak, pp. 39 – 42, 2009.

7.CMA C. R. Shiv Kumaran, “The Role of Telecom in Financial Inclusion - A Sunrise Opportunity for the

CMA in India”, The Management Accountant, Vol. 45, No. 12, December 2010 pp. 971 - 973, December

2010.

8.Nandan Nilekani, “Financial inclusion - have we reached the tipping point?”, The Journal of Indian

Institute of Banking & Finance, Vol. 81, No. 4, pp. 5 – 9, October - December 2010.

9.Ambreena Manji, “Eliminating Poverty? ‘Financial Inclusion’, Access to Land, and Gender Equality

in International Development”, The Modern Law Review Vol. 73, Issue 6, pp. 985 – 1004, November

2010.

10.N. D. S. V. Nageswara Rao, “Financial Inclusion - Banker's Perspective”, The Journal of Indian Institute

of Banking & Finance, Vol. 81, No. 4, pp. 20 – 26, October - December 2010.

11.D. Devandhiran and Sreehari .R, “Technological Services in Rural Banking: A study with reference to

bank branches in Tirunelveli district”, International journal

12. Sachin Joseph, “Financial Inclusion : Involving the Uninvolved through Product, Channel and Marketing

Innovations”, The Journal of Indian Institute of Banking & Finance, Vol. 82, No. 2, pp. 34 – 40, April – June

2011.

13.Srinivas Vissapragada, “Financial inclusion in India – Taking financial services to the rural masses”,

Financial inclusion in India – Challenges and strategies, edited by Dr. M. S. V. Prasad and Dr. G. V.

SatyaSekhar, Excel Books, pp. 281-289, 2013.

14. Manjunath, “Financial inclusion and rural cooperative banks in Hyderabad – Karnataka region: A

theoretical overview”, Financial inclusion in India – Challenges and strategies, edited by Dr. M. S. V. Prasad

and Dr. G. V. SatyaSekhar, Excel Books, pp. 209-218, 2013.

15.K.G. Karmakar,G.D.Benerjee, N.P.Mohapatra(2011) “Towards Financial Inclusion in India”, Sage

Publications, New Delhi, India. www.sagepub.in. Page no:3-18

http://onlinelibrary.wiley.com/doi/10.1111/mlr.2010.73.issue-6/issuetoc

www.ijocam.in


Information Technology and Its Role in Indian Banking Sector

Dr.P. Mohan 1Principal,

Manair College of Management,

Khammam.

[email protected]

D.CH. APPA RAO, Ph.D Scholer

Acharya Nagarjuna University & Lecturer in

Commerce

GDC, Buttaigudem-534447 (W.G.Dist)

[email protected]

Abstract

With the globalization trends world over it is difficult for any nation big or small, developed

or developing, to remain isolated from what is happening around. For a country like India, which is

one of the most promising emerging markets, such isolation is nearly impossible. More particularly

in the area of Information Technology, where India has definitely an edge over its competitors,

remaining away or uniformity of the world trends is untenable. Financial sector in general and

banking industry in particular is the largest spender and beneficiary from information technology.

This endeavours to relate the international trends in it with the Indian banking industry. An attempt

has been made in this paper to examine various innovative instruments that have been introduced

by Banks in recent times.

Keywords

Banking Sector, Information Technology, Automated Systems and Processes, Mobile

Banking and Knowledge Management.

Introduction:

Information technology refers to the acquisition, processing, storage and

dissemination of all types of information using computer technology and telecommunication

systems. Technology includes all maters concerned with the furtherance of computer science

and technology and with the design, development, installation and implementation of

information system and applications. Information technology architecture is an integrated

framework for acquiring and evolving IT to achieve strategic goals. It has both logical and

technical components. Computer hardware and software, voice, data, network, satellite, other

telecommunications technologies, multimedia are application development tools.

These technologies are used for the input, storage, processing and communication of information.

Information technology includes ancillary equipment, software, firmware and similar

procedures, services etc. Modern high throughput technologies are providing vast amounts of the

sequences, expressions and functional data for genes and protein. One of the most difficult

challenges is turning this enormous pool of information into useful scientific insight and novel therapeutic products.

Technology has brought a complete paradigm shift in the functioning of banks and

delivery of banking services. Gone are the days when every banking transaction required a visit

to the bank branch. Today, most of the transactions can be done from the home and customers need



www.ijocam.in


not visit the bank branch for anything. Technology is no longer an enabler, but a business driver.

The growth of the internet, mobiles and communication technology has added a different

dimension to banking. The information technology (IT) available today is being leveraged in

customer acquisitions, driving automation and process efficiency, delivering ease and efficiency to

customers.

The increased penetration and impact on the scale of business can be judged from metrics

such as deposit and credit per account, which according to the RBI data was INR 6,412 and INR

20, 757 in 1992 and INR 19, 898 and INR84, 618 in 2000—these metrics increased to INR59, 217

and INR258, 751 in 2009, respectively, approximately thrice the levels in 2000 and 10 times the

levels in 1992.

Many of the IT initiatives of banks started in the late 1990s or early 2000 with an

emphasis on the adoption of core banking solutions (CBS), automation of branches and

centralization of operations in the CBS. Over the last decade, most of the banks completed the

transformation to technology-driven organizations. Moving from a manual, scale-constrained

environment to a global presence with automated systems and processes, it is difficult to envisage

the adverse scenario, the sector was in the era before the reforms, when a simple deposit or

withdrawal of cash would require a day. ATMs, mobile banking and online bill payments faclities

to vendors and utility service providers have almost obviated the need for customers to visit a

branch. Branches are also transforming from operating as transaction processing points into

relationship management hubs. The change has been very productive for banks bringing in an

increase in productivity and operational efficiency to be more competitive. Better risk

management due to centralization of information and real time availability of critical data for

decision making.

With most of the banks being technology-enabled, the focus is shifting to computerizing

regional rural banks (RRBs). In addition, banks are moving toward decision making and business

intelligence software and trying to optimize the IT infrastructure created.

Growth and Expansion

Over the last Decade, the size of the banking industry has grown by 7.5 times. The

business per employee has increased from INR 27.6 million in 2007-08 to INR 62.7million

in 2011-12, while the profit per employee increased from INR 0.12 million in 2007-08 to

INR 0.39 million in 2011-12. Indian banks are also no longer constrained by geography as they

have worldwide operations. IT has been instrumental in the global expansion of banks. It is a

huge challenge for banks to maintain and keep the vast network operational. IT has helped banks

put in place alternate delivery channels such as internet and phone. Mobile banking and ATMs are

rapidly becoming the prime delivery channels. The consolidation and centralization of information

is also providing banks with accelerated decision making and risk management capabilities.

Electronic payments through credit and debit cards are also emerging as a fast-growing segment

providing ease of use and convenience to customers. The banking sector is projected to grow at a

strong pace over the next decade and will need to strongly leverage the IT infrastructure to acquire

and service the customer base and risk management.

Computerization in Banks

Technology has charged the face of the Indian banking sector through computation,

while new private sector banks and foreign banks have an edge in this regard. Among the total

number of public sector bank branches, 97.8 percent are fully computerized at end – March 2013

www.ijocam.in


whereas all branches of SBI are fully computerized.

Table 1: Computerization in Public Sector Banks

Category 2010 2011 2012 2013

Fully computerized

Branches (%) 85.6 93.7 95.0 97.8

Source: RBI, Annual Report 2012-13

Emerging Trends in Banking Technology Financial Inclusion

Mobile Banking

Electronic Payments

CRM Initiatives

IT Implementation and Management

IT for Internal Effectiveness

Managing IT Risk

IT for business innovation

I.T. in Banking:

Indian banking industry, today is in the midst of an IT revolution. A combination of

regulatory and competitive reasons has led to increasing importance of total banking automation in

the Indian Banking Industry. The bank which used the right technology to supply timely

information will see productivity increase and thereby gain a competitive edge. To compete in

an economy which is opening up, it is imperative for the Indian Banks to observe the latest

technology and modify it to suit their environment. Information technology offers a chance for

banks to build new systems that address a wide range of customer needs including many that

may not be imaginable today.

Following are the innovative services offered by the industry in the recent past:

Electronic Payment Services - E Cheques:

Nowadays we are hearing about e-governance, e-mail, e-cortunerce, e-tail etc. In the same

manner, a new technology is being developed in US for introduction of e-cheque, which will

eventually replace the conventional paper cheque. India, as harbinger to the introduction of e-

cheque, the Negotiable Instruments Act has already been amended to include; Truncated cheque

and E-cheque instruments.

Real Time. Gross Settlement (RTGS):

Real Time Gross Settlement system, introduced in India since March 2004, is a

Interlink Research Analysis system through which electronics instructions can be given by

banks to transfer funds from their account to the account of another bank. The (RTGS) Real

Time Gross Settlement system is maintained and operated by the RBI and provides a means of

efficient and faster funds transfer among banks facilitating their financial operations. As the name

suggests, funds transfer between banks takes place on a 'Real Time' basis. Therefore, money can

reach the beneficiary instantaneously and the beneficiary's bank has the responsibility to credit

www.ijocam.in


the beneficiary's account within two hours. As on November 30, 2013 there are more than

72000 RTGS enabled bank branches.

Table 2 Growth of RTGS in India

Item Volume (000's) Value (Rupees in Crores)

2010-11 2011-12 2012-13 2010-11 2011-12 2012-13

RTGS 5840 13,366 33.21 2,73,18,330 3,22,79,881 3,94,53,359

Electronic Funds Transfer (EFT):

Electronic Funds Transfer (EFT) is a system whereby anyone who wants to make

payment to another person/company etc. can approach his bank and make cash payment or give

instructions/ authorization to transfer funds directly from his own account to the bank account of

the receiver/beneficiary. Complete details such as the receiver's name, bank account number,

account type (savings or current account), bank name, city, branch name etc. should be furnished to

the bank at the time of requesting for such transfers so that the amount reaches the beneficiaries'

account correctly and faster.. RBI (Reserve Bank of India) is the service provider of Electronic

Funds Transfer (EFT).

Electronic Clearing Service (ECS):

Electronic Clearing Service is a retail payment system that can be used to make bulk

payments/receipts of a similar nature especially where each individual payment is of a repetitive

nature and of relatively smaller amount. This facility is meant for companies and government

departments to make/receive large volumes of payments rather than for funds transfers by

individuals.

Table 3: ECS transaction in Rs. Crores

Source: RBI, Annual Report 2012-13.

Item 2008-09 2009-10 2010-11 2011-12 2012-13

ECS

Credit 32,324 83,277 7,82,222 97,487 1,17,833

ECS

Debit 12,986 25,441 48,937 66,976 69,819

Automatic Teller Machine (ATM):

Automatic Teller Machine is the most popular devise in India, which enables the

customers to withdraw their money 24 hours a day 7 days a week. It is a device that allows

customer who has an Automatic Teller Machine (ATM) card to perform routine banking

transactions without interacting with a human teller. In addition to cash withdrawal, Automatic

www.ijocam.in


Teller Machines (ATMs) can be used for payment of utility bills, funds transfer between accounts,

deposit of cheques and cash into accounts, balance enquiry etc.

Point of Sale Terminal:

Point of Sale Terminal is a computer terminal that is linked online to the computerized

customer information files in a bank and magnetically encoded plastic transaction card that

identifies the customer to the computer. During a transaction, the customer's account is debited and

the retailer's account is credited by the computer for the amount of purchase.

Tele Banking:

Tele Banking facilitates the customer to do entire non-cash related banking on telephone.

Under this devise Automatic Voice Recorder is used for simpler queries and transactions. For

complicated queries and transactions, manned phone terminals are used.

Electronic Data Interchange (EDI):

Electronic Data Interchange is the electronic exchange of business documents like

purchase order, invoices, shipping notices, receiving advices etc. in a standard, computer

processed, universally accepted format between trading partners. Electronic Data Interchange (EDI)

can also be used to transmit financial information and payments in electronic form.

Implications:

The banks were quickly responded to the changes in the industry; especially the new

generation banks. The continuance of the trend has re-defined and re-engineered the banking

operations as whole with more customization through leveraging technology. As technology

makes banking convenient, customers can access banking services and do banking transactions any

time and from any ware. The importance of physical branches is going down. Thus, the changes

have the following implications:

Anywhere Anytime Anyplace Banking

Timeless and Placeless Banking

Banking at Convenience

Dismantling of Physical Structure

Goodbye to Traditional Instruments and Invitation to New Instruments

Disappearance of Conventional Risk and Arrival of New Risks

Leading to Currency-less Monetary system

Challenges in Implementation:

It is becoming increasingly imperative for banks to assess and ascertain the benefits of

technology implementation. The fruits of technology will certainly taste a lot sweeter when the

returns can be measured in absolute terms, but it needs precautions and the safety nets. The

increasing use of technology in banks has also brought up 'security' concerns. To avoid any

mishaps on this account, banks ought to have in place a well-documented security policy

including network security and internal security. The passing of the Information Technology

Act-2000 has come as a boon to the banking sector, and banks should now ensure to abide strictly

by its covenants. An effort should also be made to cover e-business in the country's consumer

laws. Some are investing in it to drive the business growth, while others are having no option

but to invest, to stay in business. The choice of right channel, justification of IT investment on ROI,

www.ijocam.in


e-governance, customer relationship management, security concerns, technological

Obsolescence, mergers and acquisitions, penetration of IT in rural areas, and outsourcing of IT

operations are the major challenges and issues in the use of IT in banking operations.

Future Trends:

Beyond Core Banking:

Increased adoption of e-payments and mobile banking are clearly the emerging

areas which are bound to strengthen in the near future. In addition, the focus is shifting

towards systems and processes needed in the maturity phase of the Technology needs curve.

Banks will need to increasingly focus on cost and profitability management, business

intelligence, dashboards/ executive information reports, data warehousing and analytics.

Improving internal effectiveness and efficiency with integrated data warehouse and real-time

access to all customer information will help the banks' decision making and ability to

deliver appropriate products and services to the customers.

Banks must see beyond applications that provide solutions to today's problems. They

need to develop a vision of a comprehensive infrastructure comprising internal and external

networks instantaneously moving information from data stores to users and back again. The

importance of the IT-business unit partnership cannot be overemphasized. The people and

processes are just as critical to success as hardware and software.

Undoubtedly, banks have made great technological advances in storing information.

However, the full power to use that information to be more productive and make better

decisions still goes unrealized. By continuing to emphasize only technology and the peripheral

business processes it affects, banks have seriously neglected their personal and enterprise-wide

intelligence.

The effectiveness of the infrastructure is measured in the value it brings to the customer.

That value is diminished by business units and individuals that are not networked. Therefore,

banks must provide access and training, to each member of the bank who directly or indirectly

serves customers. To make this possible, clear standards and expectations must be published,

so the information technology organization can bring individuals on-line in a consistent manner.

Increasing Interconnectivity and Ease of Payments through Different Form Factors:

The economic role of payment systems is connected intimately to the economic role of

money. Money is a unit of account, a store of value, .and a medium of exchange. Cash, checks,

electronic transfers, debit, credit and charge cards, as well as payment methods relying on mobile

phones and on the internet are based on different systems for exchanging value between economic

entities and on different form factors for engaging in this exchange. Anywhere anytime banking is

becoming the norm due to the implementation of core banking solution (CBS), additionally

increased efforts by the regulator in setting up Electronic Clearing Service (ECS), Real Time Gross

Settlement (RTGS) and NEFT systems is leading to interconnectivity and ease of inter and intra-

bank funds transfer. The increasing usage of credit/debit cards and mobile banking is facilitating

the ease of payments through different factors linked to vendors and service providers. The trend

is likely to strengthen with an increasing number of transactions moving online.

Presently, a technological development is closely related to computerization in banks

www.ijocam.in


branches for adoption of the core banking solution (CBS). An important development in the

percentage of branches of public sector banks implementing core banking solution (CBS). The

percentages of such branches increased by 79.4 % at end March 2011 to 90% at the end of March-

2013.

Table 4: Branches under Core Banking (in %)

Name of the Bank Branches under core banking solutions

Public Sector Banks 90%

Nationalized Banks 85.9%

State Bank Group 100%

Source: Report on Trend and Progress of Banking in India 2012-13.

Energy Management and Move Towards 'Green Technology:

Most of the banks are conscious of the carbon foot print generated and are working towards

energy management and use of 'Green Technology'. Some of the measures adopted are:

Adoption of Server Virtualization technologies to save on floor space, power & cooling

components,

Use of Data center enhancements and Best practices for

optimum usage of space, hot air/cool air pockets etc.,.

Adoption of Blade server technology to have higher computing power in smaller footprint.

Up-gradation of older power hungry Servers, Storage and Networking equipments.

Dynamic power capping of Servers, Desktops by employing newer power saving

Technologies like processor stepping

Solar powered ATMs

Use of windmill energy

Energy management and adoption of green technology will become increasingly

important in the future and banks will have to streamline efforts towards accurately monitoring,

measuring and optimizing the energy consumption.

Role of CRM Techniques:

Customers have grown to expect comprehensive financial services from a single point of

contact. They are attracted by many new products and services that non-banking institutions have

been offering. The challenge for banks is to package these products and services and deliver them

through convenient, user-friendly channels. Only by integrating people, processes, and technology

across business lines will banks be able to forge a portfolio of virtual banking services based on the

proclivities of specific customer market segments.

Consumer behavior is an important factor that will change the functioning and business plans

of banks in the next decade. The banking sector will increasingly move towards a CRM banking

model where the banks will have to develop and service products suited/ required at different phases of a

consumers life. Banks have already started moving towards catching the customers young by providing

school and college going students with bank accounts. As the youngster grows banks will have to

track and predict the financial needs using sophisticated analytical models and deliver focused

products and services.

www.ijocam.in


It has always been difficult for large institutions to compile information on a single customer

from multiple points of contact. Customers who choose services and products from multiple business

areas typically are treated as separate relationships within each area. Because a customer- centric

infrastructure does not exist at most banks, customer service representatives do not have the

infrastructure support or the incentive to pull the information together. Without clearly understanding

the strategic advantages of using a customer data warehouse, bank customer service representatives

will not change their behavior, and any competitive advantage will be short-lived. The bank will

gain minimal value from the significant investment required to develop the requisite technologies.

Knowledge Management treats the behavior of people as an equal and essential component

of effective information-sharing. Knowledge management also enables knowledge from similar

previous situations to inform current decisions. Both managers and service teams must play a role in

building a knowledge culture. Managers must codify relevant experiences, packaging them to

maximize their relevance and reusing them in new situations that create value. Once the knowledge

has been codified, it needs to be shared with appropriate individuals.

An integrated approach to knowledge management enables the bank to group its products to

serve specific market segments, such as lawyers, young professionals, retirees. The product groupings

would be based on customer feedback as to which products are in demand and on the bank's

assessment of each product's profitability. Once the bank identifies the product groupings, it can

provide high-quality service, with high-quality support from front and back offices, cross-functional

data bases, and customer service personnel.

For banks, information technology plays an important role in informed decision-making by

creating a means to collect and codify experiences and solutions from similar decisions in such areas

as financial management, customer service, or relationship development. The enabling technologies

include client/server technology, distributed computing, networking, and data warehousing.

Knowledge of what customers need most and are willing to pay a premium to get, should be frequently

updated and shared across the bank. Technology allows the bank to accomplish this enormously complex

task. Knowledge means more than just having information; it happens when information is put in

proper context and shared. For customers, valuable knowledge might be reflected in the performance of

their financial portfolio or in the ease and success of making transactions. The data warehouses and

graphical interfaces that support the customer's portfolio provide real-time access to all customer

accounts and present them in an integrated, seamless interface. For the bank, technology creates a tool

for gathering knowledge about customers' financial behaviors, purchasing proclivities, portfolio

performance, and market and competitive alternatives.

Profitability analysis is crucial to the bank's customer relationships, and it helps identify

alternatives for delivering value to customers. At present, customer profitability is being redefined as

customer relationship profitability. Customer relationship profitability includes not only a single

customer account but the full relationship, which might extend to personal checking, a business

account, an investment account, and more. For branch services to be mostly focused on marketing

and cross selling, customer-centric knowledge will need to be leveraged in a well-teamed, highly

automated branch platform.

Conclusion:

Indian public sector banks that hold around 75% of market share do have taken initiative in the

field of IT. They are moving towards the centralized database and decentralize decisions making

process. They possess enviable quality manpower. Awareness and appreciation of I.T. are very much

there. What is needed is a ‘big push’ the way it was given in the post nationalization period for

expansionary activities.

www.ijocam.in


From enabling banking services to driving transformation in the Industry, Information

Technology course do promise to change the pace of banking to the next few years. Mobile bank and

internet banking are going to make indoor in the banking sector in the near future. Even though IT

systems are complex and sophisticated but they are "energy guzzlers". Hence, the future for banking

sector is going to make rapid straights in near future.

References

[1] "ASB Bank Limited," Journal of Development Finance, June 1995, pp. 19.

[2] "Enhancing Competitiveness and Customer Service Through Innovative Banking Technology:

Bank Pertanian Malaysia's Experience," Journal of Development Finance, June 1995, pp. 41.

[3] "Competitiveness in Service Excellence: Best Practices in Korea," Journal of Development

Finance, June 1995, pp. 37

[4] "Computerization in Development Financial Institutions (DFIs) IDBI Experience", Journal

of Development Finance, June 1995, pp.26.

[5] "China's Flirtation with Customer Courtesy", Asian Business, Nov. 1995, pp. 90

[6] Mittal R.K, Dhingra Sanjay,"Technology in Banking Sector: Issues and Challenges", Vinimaya,

Vol. XXVII, No. 4, Jan-March, 2007, pp 14-22, 2007.

[7] Mariappan V,"Changing the Way of Baning in India Technology as a Driver – What is the

Trigger?", Vinimaya, Vol.XXVI, No. 2, July-September, pp. 26-34, 2005.

[8] NarayanTarun,"Banking onTechnology, Indian Management, Vol.43, Issue 8, August, 2004, pp.

18-28, 2004.

[9] Mohan Chandran.K,"Electronic Cheque - The Emerging Payment System", IBA Bulletin, Vol

XXV, No.7, July 2003, pp. 6-18, 2003.

[10] Arvind Sharma,"IT in Banking– Promise of More Benefits, The Hindu Survey of Indian

Industry-2007, pp.54-58.

[11] Sathish.D, Bala Bharathi. Y,"Indian Banking Industry: Challenging Times Ahead, Chartered

Financial Analyst, February 2007, pp.68-70.

www.ijocam.in


Challenging dimensions of HRM in Globalized Era – the Role of Employee

Relations Management in Organizations

Dr. Kamjula Neelima

Associate Professor, Sree Chaitanya College of

Email: [email protected]

Mobile: 9989765628

Koppula Narendar

Student, MBA, University P.G. College,

Kakatiya University, Warangal, State Telangana

Email: [email protected]

Mobile: 9989765626

Abstract

Human relations today gain attention of many management thinkers and researchers.

Managing Human Relations in today’s Globalized era is the backbone of Human Resource

Management (HRM). The process of HRM can be understood through the concept of

Employee-Employer relations in the organisation and hence, Employee Relations

Management (ERM) today has become as focal zone for many management thinkers at

domestic level Business operations. Further, this application has become major area in

implementation of Employee Relations Management strategies.

The Organizations which are following healthy Employee Relations realize that employees

are important stakeholders. Employees who are in contact with their employers contribute

more effectively towards the goals of the organization.

The present paper explains importance of ERM in organizations and organizational aspects

that govern employee relations in an organization. Further, it also explains how ERM is

influenced by organizational strategies, culture and other factors like employee commitment

and employee engagement. Managing organizational conflicts is also an important part of

ERM and the way HR information system tools are facilitating it.

Challenges of HRM in Globalized Era

“Human Resource Management is concerned with competing of Human Resources involves

developing, retaining and integrating personnel to achieve competitive advantage.”

“The total knowledge, skills, creative abilities, talents and aptitudes of an organizations

workforce as well as the value, attitudes and beliefs of the individuals involved.”

-Leon C. Megginson.

The challenges of HR Professionals today not to attract and retain the right employees but to innovatively make the job more interesting and reward the performance of

individuals in the organization. Companies should not wait for any event to occur, but

proactively innovate and tailor their processes so as to train their people to align with the

changing situations. The organizations today need to focus on the new “Competitive

Advantages” that promise infinite possibilities to people.

The highly educated knowledgeable workers, the most in demand, are hard to find and easy to lose. The winds of change have greater implications for the HR manager since

there is a paradigm shift in the HR’s role from a fire fighter administrator to a strategic

business partner. In the recent era, the HR Professional has to align the HR Functions

and processes with the organization’s Mission, objectives and philosophy moving at the



www.ijocam.in


speed of internet. Good economic times mean lower unemployment, increased

productivity and opportunities everywhere.

In the present scenario, HRM faces may challenges that have resulted from various organizational, cultural and environmental changes. Fluctuating social and political

trends and recent economic development around the world facilitated the growing

importance of HRM in an organization and at the same time posed some challenges.

The global challenges faced by HRM are organizational restructuring, economic

conditions and competition, quality of work life, technology, competitive advantage,

globalization, out sourcing, the bottom-line growth of the employee through training,

changing demographic life – styles and so on.

The role of HR Manager is evolving with the change in competitive market environment and the realization that HRM must play a more strategic role in the success of any

organization. Organizations that do not put their emphasis on attracting and retaining

talents may find themselves in adverse consequences, as their competitors may be

outplaying them in the strategic employment of their human resources.

With the increase in competition, locally or globally, organizations must become more adoptable, agile and customer-focused to succeed and within this change environment,

the HR Professional has to evolve to become a strategic partner, an employee sponsor or

advocate and a change mentor within the organization.

In order to succeed globally, Human Resource must be a business driven function with a

thorough understanding of the organization’s big picture and be able to influence key

decisions and policies. In general, the focus of today’s HR Manager is on strategic

personnel retention and talent development. HR Professionals will be coaches,

counsellors, mentors and succession planners to help motivate organization’s members

and their loyalty.

The HR Manager should further promote and fight for values, ethics, beliefs and spirituality within their organizations, especially in management of workplace diversity.

Now the challenge for today’s HR Manager is how he can meet the challenges of

workplace diversity, how to motivate employees through gain-sharing and executive

information system through proper planning, organizing, leading and controlling their

human resources.

Conclusion from the above review

The field of HRM is changing rapidly as it is facing a lot of challenges. In such situations, it

must be ready to face these multi-dimensional challenges with adequate foresight. The scope

of HRM has expanded considerably throughout the world. Over the years new techniques and

new styles of HRM has been developed as the result of researches and experiences in the

field. Managers attempt to outperform one another to reach the top. In this process the

modern organizations are facing the problems of managing employees to keep them happy

and retain the best talent in the organization. Therefore it is one of the prime duties of the

organization to maintain their employees.

Introduction to Employee Relations Management (ERM)

ERM is a term that refers to the relationship development and management between

employees and their employees. There are lot of different issues that can effect employee

satisfaction, which has direct result on employee productivity and overall corporate culture. It

plays a vital role business process that manages employer – employee and employee –

employee relations. It goes by the maximum that a satisfied employee is a productive

employee.

www.ijocam.in


An Overview of ERM

ERM is all about the management of relationships with employees in an organization. It

involves in providing required training to employees, maintaining clear communication,

ensuring timely redressal of grievances and providing them with a career growth path.

ERM ensures employee satisfaction, increases productivity, improves employee morale, it

enables employees to do their job in a better manner and employees to achieve both corporate

and personal goals.

Another concept which is related to employee relations is industrial relations. Industrial

relations can be traced back to the times of industrial revolution when many large scale

organizations that employed thousands of labourers were started. But the human treatment

met to the labourers resulted in strikes and huge labour turnover.

This necessitated the birth of Industrial Relations which deals with the relationship between

the management and the employees particularly the trade union relations. Industrial Relations

emphasized the labour legislations and fair treatment to employees.

The objectives of ERM include

Source: developed by author

Importance of Employee Relations Management in global era A good relationship is one in which there is equal contribution from the parties involved

towards making relation at work. The relationship between a company and its employees is

very complex. Efficient management in this relationship is necessary by managing

employees effectively; the organization can capitalize on their strengths and improve

productivity.

Employee Relations are managed in the MNCs for following critical reasons

It improves Overall productivity by improving employee morale, productivity, adoptability and communication.

Improves Job satisfaction and helps in retaining employees. Retaining existing employees is an easier and more cost effective task when compare

to recruiting new employees and training them.

Improves

employee

management

&communicatio

n

Objectives of

ERM Promotes

retention of

employees

Improves

effectiveness

in work force

Prevents

conflicts

among

employees

Ensures

employee

satisfaction

Gains & retains

employee

commitment

Gains & retains

employee

commitment

Ensures

employee

satisfaction

Prevents

conflicts

among

employees

Improves

effectiveness

in work force

Promotes

retention of

employees Objectives of

ERM

Improves

employee

management

&communicatio

n

www.ijocam.in


It improves the communication system within the organization.

It enhances employee involvement and commitment which are very important for the overall success of an organization.

Team work and change management can maintain motivation and

communication & it assures customer satisfaction.

It increases the synergy between the culture of organization and the expectations of the employees.

It positions the company as an ‘employer of choice’ and thus attracts new employees.

It increases employee loyalty. Confidential information can be kept more secured.

ERM Tools in Relation with HRM in the Globalized workforce

ERM can be driven by using employee’s survey to directly engage your employees in the

issues that are most important to them. Some of the core issues that can be controlled with

effective ERM include:

Source: Developed by Author

A study of ERM tools in Electric Loco Shed, Kazipet

Certain ERM tools are implemented in industry to develop and improve the employee

confidence levels, love and affection towards their company to meet the foreseen

circumstances. The railways working are particular one unlike other civil services. It is an

essential service in national interest.

People in electric Loco Shed are required to work with integrity and reliability. Technology

can be used to help, manage the employee relations in the organization. Automated

employee relations tools help employees to do their tasks in a better way.

The following are the different tools existing in organizations based on different

technologies:

Training

In Electric Loco Shed during training period employees improve their skills and knowledge

for doing particular job. During the training period employees establish a rapport among

Employee

Welfare

Measures

Grievance

Handling

Training

Workers

Participation in

Management

Job

Evaluation

Human

Relations

Communicati

on &

Cooperation

www.ijocam.in


them selves and with the management. Employers communicate and guide to the trainers

who are conducting the training programs to their employees.

The trainers act as mentors and help the employees based on the suggestions and guidelines

given by the employers. This helps the organization to maintain appropriate employer –

employee relations among themselves.

Employers also appreciate their employees for their efforts at work after training programs.

This appreciation helps and motivates them to achieve the desired targets of the

organization.

Further this will help the employees to work effectively in their job.

Thus training plays a major role in maintaining employee and employer relationships in the

organization.

The training objectives of the Organisation include

To prepare the employee both new and old to meet present as well the changing requirements of job and organisation

To prevent obsolescence

To prepare employees for higher level tasks

To impart new entrants the basic knowledge and skills they need for an intelligent performance of definite job.

Employee Welfare Measures

Employee Welfare implies setting up of minimum desirable standards and the provision of

facilities like health, food, clothing, housing, medical assistance, insurance, education, job

security, recreation and so on.

Railways established certain Welfare measures, which are extended to its employees apart

from statuary industrial legislature application.

Such facilities provided by the organization will help the employees to develop a healthy

work atmosphere and which leads to good work and family life balance. This helps to

maintain the healthy employee – employer relationships and thus leads to overall

organizational efficiency.

The organization’s employee Policies include the following

Central government Employee Group Insurance scheme(!980)

Deposit linked insurance scheme

Incentives provide for small families

Provision of Railway staff benefit found

Composite Appointments

Retired employees liberalized health schemes.

Diet changes

Ex-gratia lump sum compensation

Recreation facilities

Retirement benefits

The Women Welfare System & Safety and Health Measures

The women welfare system

include the following welfare

measures in the organization

The safety and health measures

include the following

Hospital Leave

Study Leave

Arrangement of Drinking water.

Health services, including

www.ijocam.in


Maternity Leave

Paternity Leave

Quarantine Leave

Children’s education Assistance

Pension

Scholarships for technical

education

occupational safety

Rest shelters and canteens

Crèches

Washing and bathing facilities

Latrines and urinals.

Arrangement of prevention of fatigue.

Administrative arrangement with in

a plant to look after Welfare.

Uniform and protective clothing.

Night duty allowance and so on.

Grievance Handling

Railways pay attention towards the general and individual welfare of workers with a view to

maintain and improve the mental and moral health of workers and to effect and all round

improvements in the employees working and living condition. The necessity of a proper

psychological approach in dealing with the staff matters is appreciated in Railways so that

even the humblest railways man is made to feel that his work is important.

None of the workers in railways is neglected and legitimate interests of each of them are

protected. All complaints and representations received at the office are registered and

acknowledgement of same is issued by a welfare inspector or other staff earmarked for this

purpose. Follow-up actions will immediately be taken by the inspector to set the right

reasons of complaints ad action taken will be maintained in a register.

The employees may also meet the officers in the office with the permission their immediate

superiors for respecting their grievances.

An individual may also get his grievance redressed by submitting representations through

proper channel or through staff complaint boxes, wherever these exist. The staff section or a

separate section functioning for this purpose will immediately to these representations and the staff are achieved of the action taken in the due course of time.

Employees are given chance of putting their grievance infront of management, this type of

facility employees to build a strong relationship with the management.

This is the mechanism of grievance in the organization through which employers can solve

the problems of employees and which helps to maintain the appropriate employee –

employer relations in the organization.

Workers Participation in Management (WPIM)

In Indian railways, workers participation in a limited form has been in practice for a long –

time by associating their representatives in different spheres as mentioned below:

Staff benefits fund committee for management of staff benefit fund.

Quarters Committee for fixing priority for construction of new staff

quarters.

Labour advising committee to discuss the annual preliminary works program for staff amenity items and for fixing priority of workers within the

funds sanctioned by the Railway Board.

Joint Committees or Councils at huge stations or yards or running sheds and so on to see all the matters especially where the question of efficiency

in service and safety to travelling public is involved and so on

www.ijocam.in


Participation of Railway Employees in Management (PREM) was started with a view to

make more effective and meaningful participation of the employees in management by

recognizing the corporate enterprise group functioning until then.

To ensure Workers Participation of Railway employees in management groups of

management and labour have been formed at three levels of Indian Railways include

Railway Board’s Level, Zonal Railway Level & Railway Divisional Level. These levels of

workers or employee groups involves the decision – making process in solving different

problems at their respective levels

Communication

Communication is heart of any organization. It refers to the sharing of ideas, facts, opinions,

information and understanding. It involves in transmission of some information and

understanding form one person to another. Communicating the information, ideas and

decisions is a basic necessity for any management. It is a tool of supervision which is in

constant use and must always be in good condition.

In Electric Loco Shed, the top management keeps the lower level supervisors and employees

well informed about ultimate objectives by having an effective communication. Effective

communication is an essential ingredient of Electric Loco Shed to manage employee

relations.

Appropriate communication the management brings leads to maximum production at the

low cost by maintaining good human relations in the organization, by encouraging

suggestions and implementing these suggestions when ever these are Feasible.

Cooperation

The cooperation indicates the association of individuals voluntarily intend for utilizing

reciprocally their forces, resources or both of these to secure common economic end through

the honest means.

The cooperation in Indian Railways is of different kinds under the patronage of

administration and these are as follows:

With a view to ensure steady flow of consumer goods of better quality and even distribution thereof to consumer – employees from exploitation by unscrupulous

traders, consumers cooperative stores were are being established at different selected

points in the railways as per the recommendations of the Grain shop enquiry

committee, 1948 and for their successful functioning the railways administrations

have granted the following facilities and the assistance:

Accommodations

The establishment charges

Administrative charges

The cooperative societies functioning in the Railways and production units are:

Labour Cooperative Society

Cooperation through Cooperative housing societies

Cooperation through Cooperative Credit Societies and Banks

Labour Cooperative societies

For successful functioning of the labour cooperative societies, the railways

administrations will give them different facilities like Provision of Accommodation,

Payments, Non-requirement of earnest money and Deduction of security deposit

Human Relations

www.ijocam.in


Human relations in an organization seek to emphasize ‘Employee’ aspects of work rather

than technical or economic aspects. It also seeks to make employment and working

conditions less in personal. It is behind that this is accompanied by increased employee

efficiency and reduction in employee unrest.

The Electric Loco Shed is not an exception to maintain healthy human relations with its

employees. The organization to maintain healthy human relations implementing the

following principles in the organization

Employees are given the facts, known things in advance.

Employees of Electric Loco Shed cooperate with each employee, superiors and do not dominate the employee and given proper respect.

The management treats the employees as human beings with sentiments

and social situations.

They provide the reasonable security and safety health conditions to their workers.

Further, they also promote the competitive spirit along the employees which bring the new talents hidden in them.

Management also helps the employees in making decisions as fairly as possible after considering the available facts and particularly objective in

making decisions.

Job Evaluation

Job evaluation measures the real worth of the work. Simply it deals with the money and

work. It determines the relative or money value of the job of an individual.

The International Labour Organization Defined Job evaluation as “an attempt to determine

and compare demands which the normal performance of a particular job makes on normal

workers without taking into account the individual abilities or performance of the workers

concerned.”

In Indian Railways also the job evaluation process focuses on the process of determining the

relative worth of jobs, ranking and grading them by comparing the duties, responsibilities,

requirements like skills, knowledge of a job with other jobs with a view to fix compensation

payable to concerned job holder.

The objectives of job evaluation process in the organization include

To gather the data and information relevant to the each job of the

organization and along with job specifications and descriptions and also

employee specifications of various jobs in the organization.

Second objective is to compare the duties, responsibilities and also the demands of a specific job with that of the other jobs.

Next is to determine the hierarchy and place of various jobs in the organizational chart.

To ensure the fair and equitable wages on the basis of relative worth or

value of the jobs.

That means in other words the equitable wages are fired to the jobs of equal worth or value.

Finally it also aims at minimizing wage discrimination based on sex, age, caste, region, religion and so on.

www.ijocam.in


Analysis of ERM variables of ERM with reference to Electric Loco Shed

A stratified Radom sample of 103 members was collected to analyse the levels of

satisfaction of ERM variables in the organisation.

Table – 1 Distribution of ERM variables

S.No Variables Yes% No%

1 Employees are proud to work for their

organization

95 05

2 Employee’s satisfaction with training provided

for their current job

90 10

3 Satisfaction about the training received from the

organization

91 09

4 Competence levels of supervisors to support

Employees at work

85 15

5 Supervisor is competent in maintaining human

Relations

81 19

6 Supervisors are Fair in judging to Employee

problems

78 22

7 Supervisor communicates in time to accomplish

any task

89 11

8 Employee receives equal cooperation from all the

departments

88 12

9 Communication system is very transparent 74 26

10 WPIM is highly motivated by the management 84 16

Source: primary data

The above data clearly shows that most of the ERM variables are effective in smooth

functioning of human resources in the organisation. The variables like communication

system and supervisors judgement about employee problems are the areas where

management has to focus more to make ERM most effective in the organization.

Further, ERM is a combination of different tools like training, employee welfare measures,

employee grievance and so on. Failure of any of this tools leads to a great loss in output

because dissatisfaction of the employees effects the organizational environment. Thus,

strategic perspective of ERM is to focus on all the elements for the better improvement of

the organization.

Table – 2 Distribution of different ERM variables

S.N

o

Variables Percentage

E G A P

1 Employee satisfaction with their well structured

department for work

57 31 11 01

2 Employee policies are well administered 7 74 17 02

3 Employees motivated to work as a team to

produce Quality services

15 70 15 00

4 Top management is committed to motivate

employees in producing quality products

21 70 07 01

5 Company recognizes employee work

accomplishments

10 81 08 01

6 Employee receives regular job performance 16 72 11 01

www.ijocam.in


feedback & appreciation from supervisors

7 Adequate safety & health standards are provided

to employees

50 43 04 03

8 Superior recognises employee’s competencies 14 62 23 01

9 Employee satisfaction with welfare measures

taken by the management

75 17 07 01

10 Employee Grievances are handled appropriately 88 8 04 01

Source: primary data

(E-Excellent, G-Good, A-Average, P-Poor)

The above analysis the management need to focus on the variables like Employee policies,

recognition of employee work accomplishments, recognition of employee’s competencies

by superiors and employee recognition based on work performance than other variables.

Measures to Improve ERM in Electric Loco Shed

Maintaining healthy employee relations in an organisation is a pre-requisite for

organisational success. Strong employee Relations are required with the management for

high productivity and human satisfaction. ERM generally deals with avoiding and resolving

issues concerning individuals which might arise out of or influence the work scenario.

ERM must be strengthened in Loco shed by activating the following steps

Employee has expectation of fair and just treatment by the management. Thus management must treat all the employees as individuals and must treat

them in a fair manner. Employee favouritism should be avoided.

Maintain continuous interaction with the employees, keep them updated about company’s policies, procedures and decisions.

Employees must be rewarded and appreciated for a well-done job or for achieving or over-meeting their targets.

Transparency in communication is of utmost improved for healthy

employee relations management.

Encouraging group activities at the work place

Assign challenging work to the team members so that they feel motivated to deliver their level best.

The concept of work stations and cubicles must be promoted rather than

closed cabins.

The employees must be motivated to avoid politics and blame games at work.

Conclusion

Employee Relations Management is a vast topic for discussion and however it is interesting

to note that every topic within the purview of employee relations itself is an ocean in itself.

Organizations around the globe are in constant search of what best they could do for their

employees in order to develop and maintain healthy relations so that they could retain

employees grown in the organization and maintain the best talent available with them.

In case study of At Electric Loco Shed the management is focusing on growth of its

employees and is constantly doing their best to ensure their employees satisfaction. The

employees when wake-up, they should feel like coming to work and that is an essence of the

www.ijocam.in


organizational needs fulfilment. This positive impact should be spread among their

employees to ensure the success of ERM functions.

The study is focused on eight important activities to maintain healthy employee – employer

relationships which include workers participation in management, training, welfare

measures, human relations, cooperation, communication, grievance handling and job

evaluation for the healthy employee relations management in the sample organisation

chosen for the study and the study focused on the above activities keep in view that these

variables as well play a crucial role in the diversified businesses around the globe.

Bibliography

Books:

V.S. P. Rao, ‘Human Resource Management’ text and cases, second edition, Excel Books.

Ashwathappa, ‘Human Resource Management’ text and cases, sixth edition, McGraw-Hill

publishers.

Greenberg and Baron, ‘Behaviour in Organizations’ eighth edition, Eastern Economic Edition,

Prentice hall of India Private limited, New Delhi.

Mamoria and Gankar, ‘Dynamics of Industrial Relations’, 16th edition, Himalaya Publishing

House.

Ashwathappa, ‘Human Relations and Personnel Management’ text and cases, 3rd edition, Tata

McGraw-Hill publishers.

P. Subba Rao, ‘Essentials of Human Resource Management and Industrial Relations’ text, cases

and games, third revised edition, Himalaya Publishing House.

HRM, Seema Sanghi, ‘Employee Relation and Union Management Relationships’, pg.no-206,

‘Terms and services’, pg.no-230, ‘Social Safety and Health’, pg.no-260.

A guide to Railwaymen on Establishment Rules and Labour Laws by N.B.BHATTACHARJEE,

GOVIND LAL

Journals:

HRD, News letter, Feb, 2011, HR system and Employee Relations

HRM Review, Jan, 2000, ‘Building Long-lasting Relationships’,

N.R. Aravamudhan.

Websites:

www.wikipedia.com

www.employeerelationsmanagement.com

www.indianrailways.com

http://www.wikipedia.com/

http://www.employeerelationsmanagement.com/

http://www.indianrailways.com/

www.ijocam.in


Financial Inclusion Initiatives And Practices Of Public Sector Banks In India

Kollu Srinivasa Rao Dr. J. Chandra Prasad M.Com., NET M.Com.,M.B.A., Ph. D.

Research Scholar Joint Research Director

Former Principal,

Lecturer in Commerce DNR College, Govt Degree College, Razole Bhimavaram., W.G.District.

Abstract

The Economic stability and development of the country depends on its strengthened financial

system. A well structured financial system should be able to channelize the poor in to the

mainstream of the economy and access them to participate and involve actively in the economy.

The Indian economic planning emphasis is laid on “Inclusive Growth” since the initiation of

Eleventh Five Year Plan. The Financial Inclusion is an off shoot of the concept of the inclusive

growth. Despite of the tremendous work exercised by the banking industry for past four decades

after nationalization of banks in India. There is a large gap between the tasks and results to

inclusion of excluded sections of the society. The wide extent of financial exclusion in India is

visible in the form of high population per bank branch and low proportion of the population have

access to basic financial services. The present study is focus on the Financial Inclusion

Initiatives and its implementation of Public Sector Banks in India.

Key Words: Inclusive Growth, KYC, No-Frills, Credit Cards, PMJDY

Introduction

The Economic stability and development of the country depends on its strengthened financial

system. Today a large segment of people are excluded from the financial services in the developing

countries like India. A well structured financial system should be able to channelize the poor in to

the mainstream of the economy and access them to participate and involve actively in the economy.

Since India is constitutionally proclaimed as a welfare state. The economic system accordingly

runs on the hub of socialistic pattern with the underlying philosophy of uplifting the poor. In this

direction the Indian economic planning emphasis is laid on “Inclusive Growth” since the initiation

of Eleventh Five Year Plan. The Financial Inclusion is an off shoot of the concept of the inclusive

growth.

Financial Inclusion

Financial Inclusion implies delivery of banking services and credit at an affordable cost to the vast

sections of disadvantaged and low income groups. The various financial services include savings,

loans, insurance, payments, remittance facilities and financial counseling / advisory services by the

formal financial system. Despite of the tremendous work exercised by the banking industry for past

four decades after nationalization of banks in India. There is a large gap between the tasks and

results to inclusion of excluded sections of the society. As per the RBI Statistics 2011, almost half

of the country is unbanked. Only 55 per cent of the population has deposit accounts and 9 per cent

have credit accounts with banks. India has the highest number of households (145million) excluded

from Banking. There was only one bank branch per 14,000 people. Of six lakhs villages in India,

rural branches of SCBs including RRBs number is 33,495. Only a little less than 20 percent of the

www.ijocam.in


population has any kind of life insurance and 9.6 percent of the population has non‐life insurance

coverage. Just 18 per cent had debit cards and less than 2 per cent had credit cards.

The history of financial inclusion in India is being initiated by the nationalization of banks in 1969

and 1980. Lead Bank Scheme, incorporation of Regional Rural Banks, - all these were initiatives

aimed at taking banking services to the masses. The brick and mortar infrastructure expanded the

number of bank branches from 8,000+ in 1969, when the first set of banks were nationalized, to

1,09,000+ today. Despite this wide network of bank branches spread across the country, banking

has still not reached a large section of the population. The extent of financial exclusion is

staggering. Out of the 6,00,000 habitations in the country, only about 33,000+ had a commercial bank branch.

Cross Country Analysis The progress of financial exclusion in India is found to be higher as compared with many

developed and some of the major emerging economies. The wide extent of financial exclusion in

India is visible in the form of high population per bank branch and low proportion of the

population have access to basic financial services like savings accounts, credit facilities, and

credit and debit cards.

Tabe-1: Select Indicators of Financial Inclusion –Cross Country Analysis

S.No Country

Number of

Bank

Branches

Number of

ATMs

Number

of Bank

Branches

Number

of ATMs

Bank

Deposits

Bank

Credit

Per 1000 KM Per 1 lakh as % to GDP

1 India 30.43 25.43 10.64 8.9 68.43 51.75

2 China 1428.98 2975.05 23.81 49.56 433.96 287.89

3 Brazil 7.93 20.55 46.15 119.63 53.26 40.28

4 Indonesia 8.23 15.91 8.52 16.47 43.36 34.25

5 Korea 79.07 NA 18.8 NA 80.82 90.65

6 Mauritius 104.93 210.84 21.29 42.78 170.7 77.82

7 Mexico 6.15 18.94 14.86 45.77 22.65 18.81

8 Philippines 16.29 35.75 8.07 17.7 41.93 21.39

9 South Africa 3.08 17.26 10.71 60.01 45.86 74.45

10 Sri Lanka 41.81 35.72 16.73 14.29 45.72 42.64

11 Thailand 12.14 83.8 11.29 77.95 78.79 95.37

12 Malaysia 6.32 33.98 10.49 56.43 130.82 104.23

13 UK 52.87 260.97 24.87 122.77 406.54 445.86

14 USA 9.58 NA 35.43 NA 57.78 46.83

www.ijocam.in


15 Switzerland 84.53 166.48 50.97 100.39 151.82 173.26

16 France 40.22 106.22 41.58 109.8 34.77 42.85

Source: Financial Access Survey, IMF; Figures in respect of UK are as on 2010

A bird’s eye view of the table clearly signifies that the position of Ind ia is not satisfactory in

terms of the select parameters like number of bank branches, number of ATMs, bank

deposits as well as bank credit. China is observed standing at the top with respect to almost

all the stated parameters followed by Mauritius and Switzerland and with respect to number

of branches and ATMs. United Kingdom, Mauritius and Switzerland with respect to bank

deposits. Switzerland, Malaysia, Thailand with respect to Bank Credit. The position of

India is at eighth place and tenth with respect to number of bank branches and ATMs per

1000 KM respectively and she is at the eighth and ninth place respectively with respect to

the bank deposits and bank credit as a percentage of Gross Domestic Product.

Expansion of Banking in India

Table-2: Expansion of Banking in India since Nationalization

(Figures in No’s)

Year

1969 2009 2010 2011 2012 2013

CARG

1969 -

2013

No. of Commercial

Banks

73 170 167 167 173 155 1.73

No. of Bank

Offices 8262 82,897 88,203 94,019 102377 109,811 6.06

Rural and semi-

urban branches

5172 50,935 53,551 57,167 62,061 68130 6.03

Population per

office 64000 15,000 14,000 13,000 13,000 12000 -3.73

Per capita Deposit

88 33,919 39,107 45,505 51,183 56380 15.82

Per capita Credit of

SCBs

68

24,617 28,431 34,187 38,874 44028 15.85

Source: Commercial Banks at a glance-RBI, Mumbai- different issues

The year 1969 is the landmark year of the nationalization of Indian Banking. It is evident from

the fact that the number of Commercial Banks in India which was 73 in 1969 went up to 155 by

2013 experiencing a growth rate of 1.73 percent. The number of bank offices stood at 109811 in

2013 as against 8262 in 1969 progressing at a growth rate of 6.06 percent. The similar trend of

6.03 percent growth rate is registered with regard to the rural and semi-urban bank offices which

increased from 5172 (1969) to 68130 (2013). During the period the per capita deposits and the

per capita credit of the schedule commercial banks experienced at the rightful growth rate of

www.ijocam.in


15.82 percent and 15.85 percent. Last but not the least, the population per bank office which was

at a high of 64000 during 1969 dwindled down and stood at 12000 per office by 2013. The

analysis clearly shows that since nationalization, the Indian Banking expanded by leaps and

bounds in the direction of enfolding the rural and semi-urban areas with an underlying philosophy

of Inclusion. Both per capita deposit and per capita credit have expanded about 600 times.

Even accounting for inflation, this is a significant expansion.

Initiatives towards Financial Inclusion

The Reserve Bank of India (RBI) set up the Khan Commission in 2004 to look into financial

inclusion and the recommendations of the commission were incorporated into the mid-term review

of the policy (2005–06). In India, Financial Inclusion First Featured In 2005, when it was

introduced by K.C. Chakraborthy, the chairman of Indian Bank. Mangalam became the first

village in India where all households were provided banking facilities.

No-Frills Accounts

In 2005-06, the RBI called upon Indian banks to design a “No Frills Account”, low “minimum

balance maintenance” account with simplified norms. As on June 2012, 1385 lakhs No-frills

accounts have been opened by banks with outstanding balance of Rs.12041 Crores. These figures,

respectively, were 734.5 lakhs and Rs 5502 Crores in March 2010. The number of No Frill

Accounts opened is increased from 734.5 lakhs as on March 2010 to 1820.6 lakhs in March 2013.

Relaxation on KYC Norms- A Boost to Inclusion Know Your Customer (KYC) requirements for opening bank accounts were earlier relaxed for

small accounts in August 2005, simplifying procedure by stipulating that introduction by an

account holder who has been subjected to full KYC drill would suffice for opening such accounts or

the bank can take any evidence as to the identity and address of the customer to the satisfaction of

the bank.

General Purpose Credit Card (GCC)

As per the guidelines of the RBI the banks have been providing General purpose Credit Card

facility at their rural and semi urban branches. The credit facility extended under the Scheme is in

the nature of revolving credit. The GCC-holder is entitled to draw cash from the specified branch of

bank up to the limit sanctioned. Banks have flexibility in fixing the limit based on the assessment of

income and cash flow of the entire household.

Kisan Credit Cards

A Kisan Credit Card is also a credit card which is introduced with a special motto of provide

affordable credit for farmers in India. It was started by the Government of India, Reserve Bank of

India (RBI), and National Bank for Agricultural and Rural Development (NABARD) in 1998-99 to

help farmers’ access timely and adequate credit.

As per the recent guidelines of the RBI "The repayment period fixed by banks as per the anticipated

harvesting and marketing period for the crops for which a loan has been granted," Also KCC is

used for making mandatory crop insurance, a facility which was not available earlier. Up to March

2013, the total number of KCCs issued to farmers remained at 33.79 million with a total

outstanding credit of Rs. 2622.98 billion.

www.ijocam.in


ATM

There is a greater concentration of ATMs in urban areas than in rural areas. However, the number

and percentage of ATMs in rural areas has been on a steady rise in recent years. The percentage of

ATMs located in rural areas accounted for 28.4 percent of the total ATMs in the country at end-

March 2009, which increased to 32.7 percent at end-March 2010 (RBI, 2010). The penetration

of ATMs across the country increased in 2012-13 with the total number of ATMs

crossing 1,00,000, clocking a double digit growth during the year.

Mobile Banking

There were 273.54 million mobile subscribers in Rural India, as on March 31, 2011 (TRAI, 2011).

Thus, mobile phones could be a major instrument for rapid up scaling of financial inclusion. RBI’s

operative guidelines on Mobile Banking issued in October 2008 were reviewed and relaxed in

December 2009 by enhancing the limits for mobile banking transactions up to INR 50,000 for both

ecommerce and money transfer transactions, and permitting the money transfer facility up to INR

5,000 from a bank account to beneficiaries not having a bank account (RBI, 2010). Mobile banking

presents banks with the lowest per-transaction cost.

Mobile Banking Vans

ICT-enabled Mobile Banking Vans (MBV) could provide efficient and cost-effective banking

services in the unbanked and remotest corners of the country. Bank of Baroda and Indian Bank

have introduced MBVs to provide banking services in the financially excluded regions. The MBVs

units have CBS connectivity to provide all banking services, including deposit and withdrawal of

money. The model has already been successfully tested by Bank of Baroda in Gujarat and Bihar.

Direct Benefit Transfer (DBT) Scheme

In order to facilitate smooth implementation of the Electronic Benefit Transfer scheme for

routing MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)

wages, other social security benefits including proposed cash transfers with respect to

subsidies on kerosene, LPG and fertilizers. Guidelines were issued on November 30,

2011 to all scheduled commercial banks to ensure opening of Adhaar-enabled bank accounts

of all the beneficiaries including those residing in villages with less than 2,000 populations.

National Rural Livelihood Mission (NRLM)

The Ministry of Rural Development, Government of India has restructured the

Swarnajayanti Gram Swarozgar Yojana (SGSY) as the National Rural Livelihood Mission

(NRLM) with effect from April 1, 2013. NRLM is implemented through scheduled

commercial banks (including RRBs). To begin with, NRLM will ensure that at least one

member from each identified rural poor household, preferably a woman, is brought under

the SHG network in a time bound manner.

Licenses to New Banks in the Private Sector

As per an announcement made in the Union Budget 2010-11, the Reserve Bank of India

put out draft guidelines on licensing of new banks in the private sector on August 29, 2011

www.ijocam.in


for public comments. The final guidelines were released on February 22, 2013 after

amendments to the Banking Regulation Act, 1949 were made in December 2012.

The Reserve Bank received 26 applications for new bank licenses. The applications are being

processed. A High Level Advisory Committee will screen the applicants. The committee will

make its recommendations to the Reserve Bank of India and the Reserve Bank’s decision in this

regard will be final.

Self Help Promotion Institutions (SHPI)

RRBs have not only provided financial services to the SHG-Bank Linkage Programme, but have

also played a significant role as SHPIs. As many as 104 RRBs (as on 31 March 2006) are also

functioning as SHPIs with grant assistance from NABARD. Non-availability of good NGOs is a

matter of concern especially in North-Eastern, Central and Eastern Regions. RRBs played a vital

role as SHPIs in such areas.

Bharatiya Mahila Bank Ltd.

In order to address gender related aspects of empowerment and financial inclusion, Union

Budget 2013-14 announced to set up India’s first Women’s Bank as a public sector bank with

`10 billion as initial capital. As a follow up, the Reserve Bank gave license to the Bharatiya

Mahila Bank Ltd. on September 25, 2013. It is proposed to open at least 25 per cent of its

branches in unbanked rural centers (population up to 9,999 as per the latest census). It

will also observe the priority sector lending norms as applicable to the domestic banks.

Pradhan Mantri Jan-Dhan Yojna

Pradhan Mantri Jan-Dhan Yojna (PMJDY), an ambitious programme on Financial Inclusion to

cover about 7.5 crores unbanked households in the country was launched here by the Prime

Minister on 28th August, 2014 from Vigyan Bhawan. PMJDY was launched with a target of

bringing in more than 7.5 crores un-banked families into India's banking system by opening more

than 15 crore bank accounts (two bank accounts per household) to be completed by 26th January,

2015. The bank accounts opened under the scheme come with added benefits such as zero balance

facility with RuPay debit card, an accidental insurance cover of Rs 1 lakh to those who open

accounts by January 26, 2015, and a life insurance cover of Rs 30,000 over and above the

accidental cover of Rs 1 lakh.

SUGGESTIONS

Banking exclusion will require a holistic approach on the part of the banks in creating

awareness about financial products, education, and advice on money management, debt

counseling, savings and affordable credit.

Banks should give wide publicity to the facility of no frills account. Technology can be a

very valuable tool in providing access to banking products in remote areas.

http://economictimes.indiatimes.com/topic/life%20insurance

www.ijocam.in


The use of IT also enables banks to handle the enormous increase in the volume of

transactions for millions of households for processing, credit scoring, credit record and

follow up.

An inclusive banking strategy requires a long-term commitment with matching human and

financial resources. Innovative approaches will necessarily require the disruption of

traditional ways of banking, and need leadership from the top to be implemented and

accepted.

Apart from formal banking institutions the role of the self-help group movement and

microfinance institutions (MFIs) is important to improve financial inclusion.

Moreover Financial Inclusion should be imbibed into the course curriculum in high schools

so that the students would understand the importance of financial inclusion for inclusive

growth in the economy which in turn would motivate them to automatically participate in

the financial system.

Banks need to redesign their business strategies to incorporate specific plans to promote

financial inclusion of low income group treating it both a business opportunity as well as a

corporate social responsibility.

References:

1. (www.rbi.org.in, www.Banknetindia.com, http://www.rbi.org.in/scripts/fun_urban.aspx)

2. ML Jhingan, Money, Banking, International trade and Public Finance 7th addition Page No

616, Vrinda Publications (p) Ltd.

3. Report on Financial Inclusion Committee headed by Dr. C.Rangarajan , RBI, 2008, Mumbai

4. Smt. Usha Thorat, Deputy Governor of the Reserve Bank of India at the 4th Programme on

Human Development and State Finances jointly organized by College of Agricultural Banking,

Reserve Bank of India, UNDP and the Planning Commission, at CAB, Pune on January 16,

2006

5. Guidelines on KYC Norms in Circular No. RBI/ 2013-14/31 UBD.BPD. (PCB).MC.No.16

/12.05.001/2013-14 July 1, 2013 RBI, Mumbai

6. Dr K C Chakrabarty, Deputy Governor of the Reserve Bank of India, at the FICCI (Federation

of Indian Chambers of Commerce & Industry) – UNDP (The United Nations Development

Programme) Seminar on “Financial Inclusion: Partnership between Banks, MFIs and

Communities”, New Delhi, 14 October 2011.

7. RBI Guidelines on KCC RBI/2012-13/162 RPCD.FSD.BC.No.23/05.05.09/2012-13 Dated August 7, 2012

8. Financial Inclusion in India Emerging Profitable Models Dr Debesh Roy Assistant General

Manager NABARD compendium 11:Layout 1 10/21/2011 5:47 PM Page 130 Bancon. 9. Annual Report for 2011-12 Published Ministry of Finance Government of India, New Delhi,

2012)

http://www.rbi.org.in/

www.ijocam.in


Tribal Development in Andhra Pradesh

A.Venkata Swamy

Assistant Professor,

Department of History, Govt. Degree College,

[email protected]

Abstract In India, seats are reserved for historically disadvantaged groups (Scheduled Castes (SC),

and Scheduled Tribes (ST)) in federal or state legislative assemblies and for both historically

disadvantaged groups at all levels of the Panchayat system, the system of decentralized decision

making. The tribal population in the State of Andhra Pradesh, and in the country as a whole, is the

most deprived and vulnerable community that faces severe economic exclusion. Although certain

constitutional safeguards are provided, no significant economic, social and political mobility has

taken place across this community. Contrary to Scheduled Castes and other Backward Castes who

witnessed certain degrees of progress because of protective discrimination policies of the

government, the Scheduled Tribes remain abysmally backward and socially excluded, still living in

harsh environs. Our paper on "Political Economy of Tribal Development: A Case Study of Andhra

Pradesh", delineates the situation of the Scheduled Tribes in the background of various policies of

the state during the successive plan periods and its impact on their socio-economic mobility.

Politically, this community is the most voiceless in the state.

Introduction The tribal population in the State of Andhra Pradesh and in the country as a whole isthe

most deprived and vulnerable community that faces severe economic exclusion.Although certain

constitutional safeguards are provided, there has been no economic,social and political mobility

across these communities. Contrary to Scheduled Castesand other Backward Castes who witnessed

certain degrees of progress because ofprotective discrimination policies of the government, the

Scheduled Tribes remainabysmally backward and socially excluded, still living in harsh environs.

The presentpaper “Political Economy of Tribal Development: A Case Study of Andhra

Pradesh”,delineates the situation of Scheduled Tribes in the background of various policies of

thestate during the successive plan periods and its impact on their socio-economic mobility.

The hilly areas cutting across the Coastal Andhra and Telangana regions are dominated by

tribal communities and can be considered as another region of the state, owing to itsunique set of

problems and underdevelopment. Coastal Andhra and Rayalaseema regions were part of the Madras

Presidency until 1953, when they were formed as a separatestate of Andhra. Telangana was part of

the erstwhile Hyderabad State ruled by the Nizams, and merged with Andhra state to form the

second state along linguistic lines (Orissa was the first) in the country. Physiographically, the state

can be divided into three zones, viz., Coastal Plains, Eastern Ghats and Peneplains. The state being

a part of peninsular India is seismically highlystable.

Coastal Plains: Towards the eastern side of the state the sea coast extends from Srikakulam

in the north to Nellore in the south. The length of the coastline running along the Bayof Bengal is

about 980 km. The coastal plains are bordered by the Eastern Ghats towards the landward

side.Peneplains: The topography of the Pen plain region consists of rounded with low hillsand the

Deccan Plateau. The Eastern Ghats slope towards the eastern border of thisarea. These Peneplains

are formed due to intense weathering and denudation over along period. Soils in this area are

generally red sandy loams. Black soil also exists in thecentral and north-eastern regions. The Pen

plains exist in districts of Anantapur, Kurnool and in all the districts of Telangana. The climate is

www.ijocam.in


generally hot and humid. The averagerainfall in the state is about 925 mm. The Krishna and the

Godavari are the major riversin the state. With a 970 km coastline, AP is the largest maritime state

in India.The 23 districts of Andhra Pradesh are further sub-divided into 1,104 revenue mandals for

administration, revenue collection and implementation of development programmes. The Mandals

in turn, constitute village Panchayats. There are no intermediateadministrative divisions between

the district and the development block as in mostother states. The demographic profile of the state

has one of the lowest urbanization rates amongst the southern states (second to Kerala) with

urbanisation being morepronounced during the 1971-1991 period. The annual growth rate of the

ruralpopulation has shown a steady decline and is currently estimated at 1.4 percent.

Andhra Pradesh is home to 35 communities officially designated as Scheduled Tribes (STs).

They numbered 50,24,104 in the 2001 Census. Out of the 35 STs, recently two communities,

namely, Nakkala/Kurvikaran, Dhulia/Paiko/Putiya (in the districts of Vishakhapatnam and

Vizianagaram) have been denotified in the state. Twelve tribes, namely, BodoGadaba,

GutobGadaba, BondoPoraja, KhondPoroja, Parangiperja, Chenchu, DongariaKhonds,

KuttiyaKhonds, Kolam, Kondareddis, KondaSavaras and Thoti have been recognized as Primitive

Tribal Groups (PTGs). Except Kondareddis and Thoti, the population statistics of other PTGs are

not available separately as these are notified as sub-groups/sections of main communities. The

population of KondaReddis and Thoti is 83,096 and 2,074 respectively, as per the 2001 Census.

Tribal Movements in Andhra Pradesh

Tribal revolts took place in British Andhra against colonialism as well as indigenous

privileged sections. Tribal movements happened because of the inherent contradictions between the

state and tribes; between tribal people and moneylenders; and tribal people and non-tribal land-

owning classes. The British introduced laws in favour of individual rights over land, forest acts,

courts of law, revenue, forest and excise machinery from the district level to the smallest village.

This process dismantled the collective structures and established individual rights over resources.

The Rampa Revolt of 1802-03 was inhumanely suppressed by the British and was projected as anti-

social. The tribal movements were not merely against moneylenders or migrants to tribal areas as

often portrayed by European Scholars but were against alien rule and were a quest for identity and

self-rule. Legal acts came into existence after every show ofresistance by the tribals in the country,

but were implemented inadequately. The movement led by KomaramBheem during 1938-41 in the

agency area of Hyderabad State was for rights over land and forest. The European anthropologist

Heimendorff brought forth the problems faced by the adivasis of this region to the attention of

Nizam Government. As a result, in 1946, the Gonds, Kolam, and Pardhanadivasi communities

gained legal land rights over their lands. In spite of this, the adivasis could not be at peace because

of encroachment on their land by non-tribals from neighbouring districts and states such as

Maharashtra and Madhya Pradesh. Progressive legislation like the Land Transfer Regulation Act

(LTRA) 1959 could not stop illegal encroachment on tribal land, which continued with the

connivance of political parties and forest

Bureaucracy, taking advantage of the ignorance and illiteracy of the tribals. The late 1960s was a

period of agrarian tensions. 1969-72 witnessed the Srikakulam tribal revolt and the Naxalite

movement. The tribal land issue came to be focused upon through the Srikakulam Revolt which

arose because of the oppressive social order in which social relations were dominated by local and

settler landlords, moneylenders, contractors and corrupt bureaucracy. The movement succeeded in

social liberation and was also economically effective. Active and politically conscious women

participated in small groups. The gains secured by the revolt were four-fold: relief from the power

of money lenders; regaining mortgaged lands and wastelands from landlords and government; relief

www.ijocam.in


from bonded labour, with a hike in wages; and elimination of restrictions and extractions imposed

by the forest officials. As a result of this movement, the government brought an amendment to the

LTRA in 1970, which is popularly called the “One of 1970” Act. According to this Act, land in the

Scheduled Area belongs to the tribals. The Srikakulam movement contributed significantly to the

struggles that took place in the subsequent decade of eighties, in terms of spirit and message.

The Godavari valley tribal struggles like Adilabad-IndervelliGond revolt in North

Telangana and also in the North Coast Agency region took place from 1976 onwards led by the

radical left (CPI ML group). The Scheduled Areas of Telangana Region witnessed mobilization of

tribes especially in the districts of Adilabad and Khammam. The Gonds of Adilabad were exploited

by the landlords and immigrant peasants from the plains. There was militant mobilization of tribals

on the issues of land and moneylending by non-tribal trader-cum-moneylenders. At the same time,

the tribals of Kondamodulu fought a heroic battle in the Papi hills against non-tribal landlords who

controlledthousands of acres of tribal land. When the GirijanaSanghamformed by the tribes

challenged the power of non-tribal landlords, the state machinery did not come to the rescue of

tribals, but took the side of landlords. Ultimately, the Girijana Sangham could forcibly take

possession of 2000-4000 acres. Land restoration by the state arising out of the 1970 Act was

considerable till 1979. However, in East Godavari District, the land which has been conferred on

non-tribals was the highest and much more than the land restored to tribals in the other tribal areas

of the state. The failure of the state in land restoration motivated tribals to organize themselves

under various social movements to get their lands back. By the mid-1970s the, Srikakulam uprising

had moved up the Godavari Valley into the plains of Telangana. Peasant struggles were organized

under the leadership of radical left and “Rytu coolie sanghams” (peasant and agricultural labour

organisations), which struggled against social oppression and feudal practices; for a hike in wages

and for land. “Social boycott” against the landlords was the popular form of struggle. Land is seen

as a livelihood for tribals. The process of transforming land into a commodity and acquiring

economic and political power over it has been the single agenda of the ruling class which made

possible the entry of non-tribals into tribal areas. Coal mining, paper industries, trade and

commerce were the major ventures in the forest areas and organs of the state like the revenue,

police, excise, development, and forest departments made inroads into tribal areas. Thus non-tribal

encroachment into tribal lands and forest has been the root cause for continuing tribal struggles. The

“Tudum Debba” movement from the mid-1990s has been agitating for categorization of tribals

according to their relative socio-economic status for the purpose of reservation within the

Scheduled Tribes. The tribals have been further marginalised by recent polices of Government of

India (Guha, 2007). Though legislations empowering the tribals such as the PESA (Panchayat

Extension to Scheduled Areas) and Land Acts (Recognitionof Forest Rights) 2006 have been

passed, their rights are not conceded. With economic reforms, commercialization has entered

through trade and industrial activity into tribal areas because of their rich mineral resources. This

process is making them lose their rights over land and resources. Besides, World Bank projects like

the JFM and CFM have not improved access to resources except for wage benefits. Tribal

development programmes have also created class differences among them.

Tribal Development Policies and Programmes

The greatest challenge that the Government of India has been facing since independence is

the proper provision of social justice to the Scheduled Tribe people, by ameliorating their socio-

economic conditions. Scheduled Tribes constitute the weakest section of India’s population, from

www.ijocam.in


the ecological, economic and educational angles. They constitute the matrix of India’s poverty.

Though the tribals are the sons of the same soil and the citizens of the same country, they are born

and grow as the children of the nature. From the historical point of view, they have been subjected

to the worst type of social exploitation. They are practically deprived of many civic facilities and

are subjected to isolation from modern and civilized way of living since so many centuries. By

British the Scheduled District Act of 1984 had initiated the tribals to keep most of these areas

administratively separate; the same situation was allowed to continue under the Government of

India Acts of 1919 and 1935.

However, after independence this policy was abandoned and new policy of tribal

development and integration was initiated. The Constitution of India made definite provisions for

the welfare and upliftment of the tribal people throughout the country. A review of the tribal

situation would indicate that the strategy for development would require an intensive approach to

the tribal problems in terms of their geographic and demographic concentration, if faster

development of the community is to take place. The community development efforts in the tribal

areas were therefore, taken up for supplementation by stating a few special in 1954. A number of

commissions and committees were appointed in the recent past to look into the problems of

developments in the tribal areas in the country and they have recommended a number of measures

to remove the socio-economic imbalances and also to break down their old psychological barrier,

which existed in the tribal areas. The special programmes for tribal development have been

implemented in our country and state to benefit the tribal population under the backward classes

sector from First Five Year Plan. Recognizing the special needs and problems of tribals, a special

niche was accorded to tribal development in the country and state development agenda from the

very beginning of the Plan Era. Some important landmark achievements in tribal development are

as follows: Special programmes for tribal development have been implemented in the country to

benefit the tribal population under backward classes sector from First Five Year Plan (1951-56)

which did not play any specific and special attention towards the development of tribal areas,

because only certain piecemeal attempts such as educational schemes and welfare schemes were

introduced. These schemes left concrete impact on tribal development. The Second Five Year Plan

(1956-61) envisaged welfare programmes of STs based on the understanding of their culture and

traditions, for their socio- economic upliftment. Forty-three Special Multi-Purpose Tribal Blocks

(SMPTBs) were created for about 25,000 people as against 65,000 in a normal block, which is an

important landmark during this plan. The Third Five Year Plan (1961-66) followed the approach of

equity of opportunity and to bring about reduction in disparities. The approach of the Fourth Five

Year Plan (1969-74) was to increase the standard of living of the STs. Special development projects

in the agency areas of AP, Bihar, MP and Orissa were set up for targeted development of tribal

areas, besides combating political unrest and left wing extremism. The Fifth Five Year Plan (1974-

78) marked a shift in the approach with the launching of Tribal Sub-Plan (TSP) for the

comprehensive development of the tribals. The TSP stipulated that the funds of the State and Centre

should be quantified on the ST population on a proportional basis, with budgetary mechanisms for

the welfare and development of the STs. For implementing the TSP strategy, Integrated Tribal

Development Projects (ITDPs) were delineated in the tribal concentrated States. Special Central

Assistance (SCA) to TSP and Grant-in-Aid under Article 275(1) of the Constitution were also

initiated in this plan to provide additional funds to TSP implementing states for income-generating

activities, infrastructure development and administrative reinforcement. During the Sixth Five Year

Plan (1980-85) emphasis was more on family-oriented economic activities rather than infrastructure

development schemes.

www.ijocam.in


A “Modified Area Development Approach” (MADA) was adopted for tribal concentrated

pockets of 10,000 populations with at least half of them being STs. Primitive Tribal Groups were

also given emphasis for their overall development. During the Seventh Five Year Plan (1985-90),

there was substantial increase in the flow of funds. Two national-level institutions - Tribal

Cooperative Marketing Development Federation (TRIFED) as an apex body for State Tribal

Development Cooperative Corporations, and National Scheduled Castes and Scheduled Tribes

Finance and Development Corporation (NSFDC) - were set up to provide remunerative price for the

Forest and Agriculture Produce of tribals and credit support for employment generation and skill

development. The Eighth Five Year Plan (1992-97) emphasized elimination of exploitation, land

alienation, non-payment of minimum wages and restrictions on right to collect minor forest

produce, etc., besides the socio-economic upliftment of the STs. The approach of the Ninth Five

Year Plan (1997-2002) envisaged advancement of STs through a process of: (i) Social

Empowerment; (ii) Economic Empowerment; and (iii) Social Justice for socio-economic

development. An exclusive Ministry of Tribal Affairs was set up in 1999 for a focused approach to

the development and welfare of the tribals in the country. The Tenth Plan (2002-07) continued the

approach of Ninth Plan of Social Empowerment through promotion of new educational

development schemes, Economic Empowerment through employment-cum-income generation

activities and Social Justice through elimination of all types of discrimination. These strategies have

been supported by the ongoing schemes of Central, Centrally Sponsored by the Ministry of Tribal

Affairs, and other Central Ministries and Departments. There was substantial increase in the outlays

for the STs’ development for various schemes in this plan period with emphasis on education,

minor irrigation and development of forest villages. The planning commission approved an

allocation of Rs.1,754 crores for the tenth plan. This allocation does notinclude grants for Special

Central Assistance (SCA) and TSP.

Suggestions

There is a need for periodical status reviews and evaluation of the impact of the schemesand

programmes. The ITDP project officers should be assigned a key role in planning,administration

and implementation of tribal development programmes and empoweredwith magisterial powers as

recommended. Sincethe socio-economic profiles of the tribals vary across districts, each district

must makean assessment of the deprivation of tribals in all the areas of social concern, and

adoptand appropriate principle for allocation on TSP funds across various sectors. In order

toimprove access to public education and medical facilities, the quality of socialinfrastructure needs

drastic improvement. The schools need quality teachers, teaching materials, and health centres

should comprise a number of doctors, para-medical staff and other facilities. Sufficient TSP funds

need to be allocated for this purpose in almostall the ITDAs. Active participation from the tribals is

very essential for theimplementation of the tribal development programme effectively. The tribal

land problemin AP has assumed new dimensions in relation to the traditional rights over “podu” in

particular and access to natural resources in general. Before the implementation of any act,

policy,programmes, and schemes, more time should be spent on creation of awareness so thatthey

reach very remote areas. It is imperative that dedicated officers who are fully trainedshould be

posted in ITDA areas. Moreover, special incentives need to be given toencourage them for working

in these areas.

www.ijocam.in


References

1. Andhra Pradesh Community Forest Management Project Tribal Development Strategy and

Action Plan, 2007.

2. APFD (1999c): Status Report of Andhra Pradesh Forestry Project, November,

www.ap.nic.in/apforest/APFP_STATUSnote.htm.

3. Basu, A.R. (1985): Tribal Development Programmes and Administration in India”, New

Delhi, National Book Organisation.

4. Census of India (2001): “Provisional Population Totals: Paper 1 of 2001”, Andhra Pradesh,

Director of Census Operations.

5. CESS (2007a): “Andhra Pradesh Human Development Report”, Begumpet, Hyderabad-

6. CESS (2007b): Report on Seminar Proceedings on ”Movements, Social Transformation and

making Modern Andhra Pradesh”, Submitted to ICSSR, Centre for Economic and Social

Studies, March, 2007.

7. Forest Survey of India (1999): State of Forest Report – Andhra Pradesh, Government of

India, Ministry of Environment and Forest, Forest Survey of India.

8. LaxmanRao. S, PriyaDeshingkar, John Farrington (2006): “Tribal Land Alienation in

Andhra Pradesh Processes, Impacts and Policy Concerns”, EPW, Vol. XLI, No.52,

December 30, 2006.

9. Papi Reddy, T.K. (1990): Agrarian Unrest in Andhra Pradesh, Sony Publishing

House,Warangal.

10. World Bank (2001): “India, Andhra Pradesh Community Forest Management”, Project

Information Document, The World Bank.

http://www.ap.nic.in/apforest/APFP_STATUSnote.htm

www.ijocam.in


Foreign Direct Investment In Retail Sector In India–Issues And Challenges

CRM in Retail sector and Effect of FDI on Retail Industry in India

A. Radhika

Asst.professor, MBA Dept

Hindu College of Management, GUNTUR

Ph:- 8977121348

ABSTRACT Customer relationship and Customer Relationship Management are in forefront of recent

business arena gaining prominence in management profession. Since long businessmen and

academicians relied on relationships for their success. Many organizations started paying attention

and spent lot of money on CRM and customer relationship programs. However, the results were not

as expected. This created a need to look back on expected advantages from CRM and customer

relationships by organizations. In this context, the real advantages of customer relationships and

their management i.e., CRM practices and their expected advantages like customer satisfaction,

customer loyalty, repurchases and positive references are required to be studied further. Studies are

needed to be made not only from organizations (strategic and functional) point of view but also

from customer's point of view, as they are the ones who make the organization's expectations

fulfilled. The present research study attempts to explore these areas.

This paper presents an overview of retail trade in India in the wake of the country’s new

policy that will allow foreign capital in multi-band retailing. It discusses various potential benefits

and costs of foreign direct investment (FDI) in the retail sector, particularly in terms of its effects on

traditional retailers, employment, consumers, farmers, and local manufacturers. It argues that given

somewhat slower growth projection for the Indian economy during the next decade, various

structural issues including inadequate infrastructure and a lack of affordable real estate, and the

prevalent structure of the agricultural markets, it is unlikely that all the potential benefits and costs

will be realized to their fullest extent, at least in the foreseeable future. The economic dynamics and

the political process will play an important role in determining the outcomes of this move to allow

FDI in the retail sector and will ultimately determine the effects on various stakeholders.

Introduction to Retailing and CRM

Retailing is an activity that involves buying goods or services and subsequently selling them

to the final consumer, usually in small quantities and without transformation. A retailer is a reseller,

i.e., obtains a product or service from someone in order to sell to others. Retail services encompass

a wide variety of forms, formats, products, legal structures and locations. The retail sector is vital to

the world economy, as it provides large scale employment to skilled and unskilled labor, casual,

full-time and part-time workers.

The Retail industry has made a paradigm shift in strategy from being product centric to

consumer centric in the past decade. Also, there is a rapid adoption of Internet technologies. A

major challenge that service providers face is to establish a robust Customer Relationship

Management (CRM) process that accurately collates related customer information for their

organization. The current generation of shoppers is getting savvier in its options. To compete

successfully in the present dynamic environment predictive sales, revenue forecasting, greater staff

productivity, sifting and organizing unstructured data and automating and streamlining processes

are the key requirements in any CRM solution offering. In addition, the technologic devolvement

observed in recent years enabled companies to keep databases with customer related data. This

allows the use of data mining techniques to extract knowledge from these databases in order to gain

www.ijocam.in


competitive advantage and remain at the leading edge. This thesis develops a methodology to

support CRM in the retail sector, by applying data mining techniques. The sales era ran from the

30s to the 50s and promoted the concept of transactional marketing. Due to the excess of supply

over demand, companies recognized the need of having salespeople to sell the products. The

marketing emphasis was placed on developing persuasive arguments to encourage customers to buy

the products. By the 1950s, and until the 1960s, this context evolved further into the marketing era,

when companies began to adopt a customer orientation and became aware of the importance of

following consumer preferences and motivations. Finally, the relationship era as well as the

marketing concept as it is known nowadays had its origin in 1980s. This was a period of

technological and scientific progresses which resulted in mass manufacturing. Therefore,

companies were no longer able to personally know their clients. There was practically no

interaction between customers and companies. The concept of relationship marketing (RM),

proposed by Berry (1983), arose as an attempt to minimize the gap between companies and their

customers.

Role of CRM in Retailing: Retail CRM is one solution that every retailer relies on because it is

directly linked to the customer and in turn results in better sales and Return on Investment (ROI).

The ROI depends on how retailers manage their customer relationship which in turn is based on

their ability to aggregate, analyze, and apply a range of data sources such as Point of Sales (POS),

social media sites, in-house customer information, and loyalty programs.

Analytical CRM:

There are 4 dimensions of CRM are

1. Customer identification: Customer identification includes mainly customer segmentation and

target customer analysis. Customer segmentation implies the subdivision of the set of all customers

into smaller segments including customers with similar characteristics. Target customer analysis

involves the definition of the most attractive segments for the company, based on customers’

www.ijocam.in


characteristics. The selection of the target groups requires the collection of quantitative and

qualitative data on these groups.

2. Customer attraction: This stage follows customers’ identification. Customer attraction involves

the use of an appropriate method of communication and the elimination of any sort of wasted effort.

Having identified the target groups, companies concentrate efforts and allocate resources to attract

these segments. Competitive advantages, such as price and other differentiation characteristics, can

be drivers of customers’ attraction. Another customer attraction driver is direct marketing (Ex:

direct mail or coupon distribution).

3. Customer development: The main focus of this dimension is to increase transaction intensity,

transaction value, and individual customer profitability. The main elements of customer

development are customer lifetime value analysis and up/cross selling. Customer lifetime value is

the total net income that a company can expect from a customer.

4. Customer retention: This dimension is one of the main concerns of CRM. Customer satisfaction

is the main issue regarding customers retention. Customer satisfaction can be defined as the

comparison of customers with the perceptions. Moreover, a high quality shopping experience leads

to a positive emotional feeling, which enables the company to achieve the desired customer loyalty.

Customer attraction and customer development are addressed by means of the design of

differentiated marketing actions, based on association data mining techniques. Customer retention

is approached by the development of models that determine the promptness of customers to leave

the company for the competition.

FDI in India’s Retail Trade:

Opponents of the entry of foreign direct investment (FDI) in retail trade generally point to

its adverse impact on employment. This is indeed an important issue, as around 40 million people

are engaged in retail trade in India, and even a small percentage loss of employment in this sector

amounts to lakhs of unemployed. At the same time, we need to take note of certain other issues as

well, in particular the nature of the relations which international retailing giants establish with their

suppliers, and their implications for workers and cultivators in countries like India.

Though FDI in retail trade is as yet restricted, the Government of India has a more liberal policy

towards wholesale trade, franchising, and commission agents’ services, thus preparing the ground

for FDI in retail as well.

Foreign retailers have already started operations in India through various routes:

joint ventures where the Indian firm is an export house;

Franchising (Eg. Kentucky Fried Chicken, Nike);

Sourcing of supplies from small-scale sector;

‘cash and carry’ operations (Giant in Hyderabad, Metro in Bangalore)

Non-store formats – direct marketing (Amway).

Large international retailers of home furnishing and apparels such as Pottery Barn, The Gap and

Ralph Lauren have made India one of their major sourcing hubs. Up to 100 per cent FDI is allowed

in ‘cash and carry’ operations. The Great Wholesaling Club Ltd is one such example.4 In February

2002, the world’s largest retailer, Wal-Mart, opened a global sourcing office in Bangalore. In

November 2006, it announced its entry under a joint venture with the Indian corporation Bharti. For

the time being, Bharti is to own the chain of front-end retail stores, while the two firms will have an

equal share in a firm that will engage in wholesale, logistics, supply chain and sourcing activities.

http://rupe-india.org/43/retail.html#note4

www.ijocam.in


This is seen as a preliminary step by Wal-Mart pending the removal of all restrictions on FDI in

retail trade.

Distinct characters of Indian retail trade:

The Indian trading sector, as it has developed over centuries, is very different from that of the

developed countries. In the developed countries, products and services normally reach consumers

from the manufacturer/producers through two different channels:

Via independent retailers (‘vertical separation’) and

Directly from the producer (‘vertical integration’).

In the latter case, the producers establish their own chains of retail outlets, or develop franchises.

In India, however, the above two modes of operation are not very common: For in India, today, less

than three per cent of the retail transactions are done in the organised sector; and this is projected to

increase to 15-20 per cent by 2010. To date, the organized sector is restricted to metropolises. The

second mode is found in a few national firms and some subsidiaries of global firms. Indian

wholesale trade too is not organised. The few government initiatives (such as the formation of

Boards for tea, coffee, and spices, and the State Trading Corporations) have largely become defunct

by now, and private initiatives have mostly remained localized.

Small and medium enterprises dominate the Indian retail scene

The trading sector is highly fragmented, with a large number of intermediaries. So also, wholesale

trade in India is marked by the presence of thousands of small commission agents, stockiest and

distributors who operate at a strictly local level. Apart from these, in many cases small producers

such as artisans and farmers sell their goods directly to end consumers (often one family member is

a producer and another sells the products). The existence of thousands of such individual producer-

cum-sellers is an example of ‘vertical integration’ as it is found in the Indian retail sector. There is

no ‘barrier to entry’, given the structure and scale of these operations.

‘Customer relationship management’ (to use the marketing jargon) is handled in India by numerous

small vendors locating themselves close to their customers – either by opening a tiny outlet in a

residential area or by hawking goods at the consumer’s doorstep. In this process, a personal

relationship develops, often extending beyond immediate business interests.

The retail sector acts as an important shock absorber for the present social system. Thus when a

factory shuts down rendering workers jobless; or peasants find themselves idle during part of the

year or get evicted from their land; or the stagnant manufacturing sector fails to absorb the fresh

entrants into the job market, the retail sector absorbs them all. A skilled labourer turns into a street

hawker, a farmer turns to delivering milk packets door to door, an educated unemployed youth

hawks newspapers and a better off unemployed person starts a telephone booth and retails telecom

cards as an ‘add on’ service.

Thus, after agriculture, the incidence of under-employment is probably highest in the Indian retail

sector. There are nearly 12 million retail outlets. Small retailers operating in the unorganized sector

dominate the trade. Those displaced as a result of FDI in retail may not show up as an increase

in visible unemployment. Only the extent of under-employment in the retail sector might increase.

Reasons for transnational retail giants are interested in entering India:

Over the past twenty years, fresh produce and food service industries have headed towards global

consolidation. In the food service industry, US-based Yum Brands has 33,000 restaurants –

including Taco Bell, Pizza Hut, and KFC – in over 100 countries, and is especially focusing on

expansion in China, Mexico, and South Korea. Supermarkets – grocery retailers with multiple

stores – dominate food sales in rich countries and are rapidly expanding their global presence.

www.ijocam.in


Possible impact on marginal producers and work force – the experiences of other

countries

Globalization has hugely strengthened the negotiating hand of retailers and brand companies

The wide food variety and rich heritage of textile and other handicrafts makes India a very

attractive source of supplies for retail giants.

The demands for ‘just-in-time’ delivery have typically cut production times in a few sectors by 30 per cent in five years.

Global supply chains have created new opportunities for labour-intensive exports from low-cost locations.

Since supermarkets increasingly control food retailing, the world’s farmers are competing for a

place in their supply chains. It can be good business, especially for farmers selling top-quality and

out-of-season produce. But fresh produce is a risky business. And the extreme imbalance in

negotiating power between a handful of supermarkets and the world’s farmers means that most of

the gains from trade are captured at the top. Supermarkets are pushing price and payment risks onto

farmers and growers, controlling packaging and delivery requirements, squeezing producers’

margins, and focusing on technical, not ethical standards.

Due to these changes small suppliers, unorganized workers and consumers are the major

losers as global retailers and brand owners consolidate their power through free movement of global

capital. Changes in labour laws are brought about in line with the requirements of supply chain

flexibility: easier hiring and firing, more short-term contracts, fewer benefits, and longer periods of

overtime. The Indian Government is trying to bring about such changes, both directly and

indirectly.

The source of the pressure for allowing FDI in retail Analysis of FDI flows in trade indicates that, over the 1990s, developed countries faced market

saturation and became relatively less attractive to foreign investors. Instead, developing countries

and Central and East European countries became increasingly attractive to foreign investors.

“Only a few global firms possess proprietary expertise in retail trade. They would not

transfer their expertise to local firms unless they were allowed to operate in the domestic

market.”

“The government needs FDI to meet its foreign exchange requirements.”

“Only global retailers can satisfy the rising and varied demands of Indian consumers.” Under such pressures, factory and farm managers typically pass on the costs and risks to the

weakest links in the chain: the workers they employ. For many producers, their labour strategy is

simple: make it flexible and make it cheap. Faced with fluctuating orders and falling prices, they

hire workers on short-term contracts, set excessive targets, and sub-contract to sub-standard unseen

producers. Pressured to meet tight turnaround times, they demand that workers put in long hours to

meet shipping deadlines. And to minimize resistance, they hire workers who are less likely to join

trade unions (young women, often migrants and immigrants), and they intimidate or sack those who

do stand up for their rights.

Trade liberalization and improvement in communication systems have increased opportunities for

retailers to buy their products from producers worldwide. Some of the factors that have contributed

to this trend are the reduction in tariff, incentives provided to foreign investment, cheaper real time

communications, and cheaper transport.

Retail CRM & Marketing

Retailers need an effective retail CRM and marketing solution to satisfy shoppers and compete in

today’s competitive retail market. Our CRM for retail delivers a complete 360° view of every

www.ijocam.in


customer in every channel, providing the insight you need to deliver personalized service, build

customer loyalty and increase revenue.

Benefits of FDI in Indian retail Industry

Growth in Economy

Job Opportunities

Benefits to Farmers

Benefits to consumers

Cheaper Production facilities

Availability of new technology

Long term cash liquidity

Infrastructure development

Conducive for the country’s economic growth

Allowing FDI might help India have better logistics and storage technologies

FDI will create a competition among the global investors

FDI opens up a new avenue for Franchising

And other benefits are as follows-----

Improves the foreign exchange position of the country

Will help in economic growth at the time of inadequate capital

Employment generation and increase in production

Help to transfer the technical, management and intellectual skills

Capital formation by bringing fresh capital

Build competition in the local market and thus leads in increasing the efficiency

Increase in exports and tax revenues

Helps in increasing the GDP rate and boost up the economy by reducing the CAD of our country

Yields better quality and there will be lot of varieties.

Losses:

The FDI also results on Indian Retail Industry and Customer Relationship management (CRM)

negative effects.

Local market tend to lose their ownership

Not able to compete with the advanced strategies and implementation that the foreign

companies will come over with

Outsiders tend to build the monopoly in the market and taking over the profitable sectors.

The government will not have much control on the wholly owned subsidiaries

Foreign companies emphasis more on investing in machinery and intellectual part rather

than paying wages to the persons.

So, to conclude this I would say it’s far better to have such policy in retail sector in India instead

of picking out the drawbacks as its has less bad effect and would not last long if executed

properly by our respected government.

www.ijocam.in


Recommendations:

1. Many CRM project “failures” are also related to data quality and availability.

2. Data cleaning is a major issue. If a company’s CRM strategy is to track life-cycle revenues,

costs, margins, and interactions between individual customers, this must be reflected in all

business processes.

3. A Successful implementation requires an executive an understanding of the expectations and

needs of the stakeholder’s involved.

4. An executive sponsor should also be obtained to provide high-level management

representation of the CRM project.

Conclusion:

Transformation by integrating customer facing front-end with back end systems and partners and

suppliers. This will effectively help in generating better filtered data sources from feedbacks

received. Also the feedbacks will be dealt with a much more careful and professional way. In the

age of information technology an effective IT planning on the CRM can help the organization

earn a lot of repute. This will help to filter and clean raw data received from feedbacks more

efficiently.

The stores and their customers can mutually benefit through the application of CRM. So at this

“era of customers”, the companies should project themselves as customer oriented as possible to

help them benefit in a long term survival plan for effective segmentation of customers and

enhancing the shopping solutions. And this is the age of innovation, especially in Indian markets;

low cost innovation is the ultimate tool to win the battle for the companies. Thus, the companies

need to be innovative with their ideas and always try to deliver the customer with some added

value for their retention.

References:

1. M. Guruswamy, K. Sharma, J.P. Mohanty, and T.Korah, “FDI in India’s Retail Sector –

More Bad than Good”, Economic and Political Weekly, 12/2/05.

2. A.Mukherjee, Distribution Services: India and the GATS 2000.

3. Business Standard, Economic Times, 28/11/06.

4. Indian Retailing – Birth Pangs, 2003, www.fitchratings.com.

5. HBS Working Knowledge, Readers Respond: Is Less Becoming More? November 14,

2005.

6. Hindu Business Line, November 15, 2003; May 13, 2005.

7. Hindu Business Line, October 29, 2005.

8. UNCTAD, World Investment Report 2004 – The Shift towards Services.

9. United Nations Economic and Social Commission for Asia and the Pacific

(ESCAP), Transnational Corporations and Primary Commodity Exports from Asia and

the Pacific, 1981

10. World Bank, Global Economic Prospects and the Developing Countries, 1994, p. 41.

http://www.fitchratings.com/

www.ijocam.in


Human Rights and Empowerment of Women

Dr.B.Prabhakara Rao

Lec.in Economics ,

GDC ,Jagampeta

Bala Nenavath

Lec.in Commerce,

GDC ,Jaggampeta

Abstract “Where Women is Worshiped There God is Pleased”.Human rights defined here as a group of

ethical principles having a legal dimension ,arise out of the need of each and every individual to

enjoy the conditions essential for a decent life. These rights have been structured through along

process of change over the last two centuries in recent years the concepts of human rights have

been developing that calls into question the universal validity of androcentrism and of the

empowerment of women “women is more than of the sky should be equal with men in enjoying

powers” .Therefore empowerment of women is the only remedy and prerequisite to transform

their condition. The women rights are conferred in the part-iii ,from article 14 to 32 of the Indian

constitution, and impact of the human rights are given to knowledge ,skills and self confidence

necessary to participate fully in the development process to empowerment of women

Introduction

In a globalising world, empowerment of women and human rights are vital tools –to

achieve sustainable developments of societies .Empowerment of any section the greatest honour

of Indian women was paid by enshrining the principle of equality in the constitution which end

over’s to efface the age-old bias of inferiority at once stroke. several development during the late

1970’s and early 1800 have set the stage for the size of a women’s movment.The thinkers of the

age of reason questioned the established political and religious authority and stressed the

importance of reason, equality and liberty .The new intellectual atmosphere healed justify

women’s rights to full citizenship .By the beginning of the 1900’s however the women’s

movement be was more aligned with nationalist political campaigning in India’s freedom. In

1929 Indian women earned right to property and inheritance equal to men’s rights on

independence in 1947, the Indian constitution gave equal rights to women in education,

employment, wages, property and marriage and etc.

OBJECTIVES

The main focus of this paper is laid on analyzing the education, empowerment of

women and human rights areas of India towards this end the specific objectives out lined are:

1. To assess the impact of education for women

2. To identify the human rights for empowerment of women

3. To examine the different factors influencing the empowerment of women

Main focus of the study

The study focus on gathering and the extent to which they are playing a role in gender-old

age, education .empowerment and human rights etc. Empowerment of women and human rights

is worth studying aspects as it invites the public attention in the recent fast. Empowerment is a

multi dimensional process, which should enable a group of individuals to realize their full

identity and power in all spheres of life.

Empowerment of women would mean equipping women to be economically

independent and personally self –reliant, with a positive self –esteem to enable them to face any

difficult situation .More over they should be able to contribute to the developmental activities of

www.ijocam.in


the country .The empowerment of women should be able to participate in the process of decision

-making .

Education is one factor that plays the most crucial role in empowering women

schools ,colleges and other professional bodies are persistently tiring to educate, motivate and

trained the women in their chosen areas of carrier through curriculum ,training,feild exposure and

other practical methods, research and publication in the areas of women’s problems , social evils

and their eradication and women empowerment are the heart topic of the present the constitution

provide more rights in this field.

But the gender- bias still seems in the society though the female population is almost

equal to the male population according to 2011 census. The ratio of men and women is 1000:940,

the article 14 says Indian constitution must provide social, political and economic opportunities

and rights for both men and women equally .But the position is not equal as per 2011 census ,the

female literacy rate in our country is very low then compare to men. The educational attainment

and economic participation are the key constituents in ensuring empowerment of women.

The relationship between education and women’s work with economic growth has

profound implications on development policy. And also generated from the human rights, the

constitution provide it often quotes regarding the women “she is more than half the sky should be

equal with men in enjoying powers” therefore empowerment of women is the only remedy and

pre requisite to transform their condition.

Conclusion

The response of the women to increase in wealth and education is an important factor in

public policy, for developing countries. Particularly it is important to understand how female

education has external benefits for families such as reduced fertility, improved child health,

expansion of the skilled labour force and participation of all activities. The result of the study

suggests that initiating female education, women participation increase in the economy. This

results in empowerment of women and conferring human rights to them leads development in all

wings.

Pandit Jawaharlal Nehru says that “You can tell the condition of a nation by looking at

the status of women”

Reference

1. Female human resource development growth and equity as priorities (LC/L.947) MAY 1997.

2. Mammen.K. & Paxson .C (2000) Women’s work and economic development the journal of

economic perspectives.

3. Mason, K.O (1993) “The impact of women’s position on demographic change during the

course of development

www.ijocam.in


Crochet Lace Industry: Narsapur

Dr.T.V.S.Prasad,

MA(Pub.)., M.A(Pol.).,

M.A(eco.)., Ph.D.,

Dr. Gandham Sri Rama Krishna, MA(IRPM)., M.B.A., BL., D.C.P., Ph.D.,

Associate Professor,

Department of Management

Studies, Dr.C.S.Rao P.G. Centre,

[email protected]

Dr.N.G.S.Prasad,MBA., Ph.D.,

Professor &

HOD of M.B.A. Department,

Swarnandhra Institute of

Engineering & Technology,

[email protected]

Introduction

Lace is an ornamental fabric made by looping, knotting, plaiting or twisting the thread

into definite patterns. Hence, lace making is the art of using the techniques mentioned above to

create beautifully woven lace in different patterns. The thread used is twisted mercerized cotton yarn made of superior grade of cotton. A variety of accessories can be made with lace which

includes bags, bed spreads, purses, clothing and many more varieties. These products are lovely

and attractive and help in creative very pleasing atmosphere in the homes and as well as in the

offices. The dining tables are decorated with round or square lunch on sets, the tea tables with

oval sets. There are also teapoy covers with centers to match for round tables which would be of

high decorative value. The callers, cuffs, petty coat lace, napkins, pillow cases, bed sheets, table

cloth, door curtains etc., are among other specialties with a special accent on utility aspect. The

specially of the lace product is its artistic value. It can be used as an accessory to any kind of

clothing to add elegance and style and hence highly preferred in the fashion technology and

fashion shows. There is no machinery involved in the manufacture of lace products except a

hooked needle. Another interesting fact is that all the tools it requires to make lace is only a

hooked needle which costs about 15 rupees but the products value is priceless.

The lace industry at Narsapur is a stable business which produces lace-goods for the

global market. Crochet lace industry is one of the important handicrafts with a highly artistic

appeal. Lace industry is one of the important handicrafts with a highly artistic appeal, providing

fruitful employment to nearly 2 lakhs poor middle class women artisans of Godavari Delta at

their homes.

The lace making is carried-out in putting-out system and workshop manufacturing. Under

the putting-out system women in the household prepare the lace items for the agent or

middlemen who in turn hands over the lace items to the exporters. In this system there is no

relationship between the exporter and worker and the entire relationship is carried-out between

the agent and the worker. Exporter employed several agents – who visited the artisans at certain

intervals gave them the thread and the designs their customers abroad had ordered and after a

certain time they came to collect the finished articles. Women sometimes also did the finishing

work-stretching, sorting out etc., of lace in the house of the exporters. The artisans were paid

piece rates. Agents were engaged on commission basis.

The another system of lace making is workshop manufacturing. Where the exporter

arranges the preparation of lace items with the men and women workers. There is a general

division of work between men and women in this system the lace making including Chethipani

(hand work), Athukupani ( joint or attachment work), Kajakuttu (bordering and lining) is done by

female workers. Where as checking, repairs, finishing, washing, ironing, packing and

www.ijocam.in


forwarding are performed by male workers. The average number of workers were 140 with each

employer on salary basis. The putting-out system and workshop of lace working employed in

different lace industries at Narsapur, West Godavari District, where the entire lace making

business is carried-out.

The Evolution of the Lace Industry

The history of the lace industry in and around Narsapur in the West Godavari District is

closely linked to the history of colonial penetration into this area. Already before the Dutch, East

India Company had opened a factory in Palakol and choose Narsapur as their port in the 17 th

century. Narsapur had been an important trading point, mainly for the export of excellent textiles

produced by the spinners and weavers in the hinterland. Narsapur seems to have reached the

zenith of its prosperity in the last quarter of the 17th century, under the English East India

Company and they provide part-time employment to the poverty stricken women of this area.

The origin of the lace industry is closely connected with the history of the mission in the

Godavari Delta. In 1837 George Bear and William Bowden came to Narsapur where they

founded the Godavari Delta Mission. They settled down in the abandoned “Dutch House” near

the Holland Wharf in Narsapur. Women seem to have been the first to learn the craft of lace

making. There are two versions about its origins. One version has it that ‘Irish Nuns’ introduced

the art of crocheting around 1860. According to another version, lace making was introduced in

1862 in this area by Mr. and Mrs. McCrae from Scotland who had joined the Godavari Delta

Mission.

It seems that, particularly during the famine years of 1877-78, lace making became a

means by which the missionaries tried to help the poor women to earn their livelihood. In the

early phase the missionaries gave thread to the women and taught them some patterns then they

collected the finished goods and sent them as gift parcels to friends and dignitaries in Scotland,

England and Ireland in order to collect donations from them for missionary work. Mrs. Cain had

started lace work in Dummagudem of West Godavari District in 1882, lace making become a

regular production process under the initiative of her.

In 1900 the brothers Jonah and Joseph started exporting lace on regular commercial lines.

They wanted to give work to the poor women, but at the same time they changed the production

of lace from a non-profit activity aimed at solicitation donations and aid for the poor women into

a value producing business. Messrs Jonah and Joseph organized the production of lace along the

classical and putting-out system. The lace industry at Narsapur seems to have been a fairly stable

business since Messrs Jonah and Josef stated to export lace. Later in 1908 K.Soma Raju started

exporting lace regularly on purely commercial lines, which gave a great boost to the growth of

lace export in West Godavari District.

Around that time, about 2,000 women in Narsapur were engaged this lace works. In the

course of time the women of the more respectable castes were also drawn into this lace industry.

Above all the Kapu women. The Kapus are a caste of agriculturists. The women of that

community stated that they had always been ‘goshami women’ , i.e., that they had observed a

kind of seclusion and that they had never worked in the agricultural fields. Later, these kapu

women also began to work for the lace exporters. Today, the majority of lace workers belongs to

this community. Christian, Settibalija and Agnikulashatriya women are concentrated in lace

making.

This lace industry proved to be a profitable undertaking, more people began to invest

their money in the lace business and became exporters. A new effort was made in 1952 to form

an exporters association. This time it was called the All India Crochet Lace Exporters

www.ijocam.in


Association, Narsapur. At the beginning it had 36 members. In 1960 there were 57 and in 1961,

66 members were registered. At present they are 200 members.

Role of Alankriti Lace Park

The State Government with an objective of overall development of Andhra Pradesh

economy is focusing on the development of labour-intensive and export oriented industry for

generating both sustainable employment and valuable foreign exchange. Creating a brand name

‘Alankriti’ and establishment of lace park in a cooperative setup with a corporate framework and

outlook at Narsapur to give a strong image to lace business. Establishment of Alankriti Lace Park

at Narsapur is the first step in this direction in the year 2004 by Sri Sanjaya Jaju IAS, District

Collector. This Lace Park has been conducting training programmes for women and given the

encouragement for women workers. West Godavari District in Andhra Pradesh is the centre

place for the handicraft crochet lace and especially Narsapur is the heart of this lace craft.

Narsapur is a remote place in West Godavari District of Andhra Pradesh. It is famous for the

crochet lace product. For many women at Narsapur area of West Godavari District, crochet lace

is the chief livelihood and has become the main craft in terms of employment generation. It is

estimated that around 2 lakh women are involved in this craft which is a major foreign exchange

earner for the country. The foreign exchange is expected to the tune of 42 to 50 crores ( U.S. $ 9

million) per annum in Indian currency.

The lace park came out of this dream. This organization brings the desperate, scattered

women groups into self-help groups under one umbrella, brings in experts from outside for

educating and training these groups, allows experiments in improving the designs and skills and

makes the groups self-sufficient to market their own produce and decide their own future. The

lace park’s vision is to have uncompromising attitude on quality, professionalism that sparks

discipline, hard work and adherence to schedule, something that was not known earlier in this

sector.

In a tiny corner on the South East of India lives a community of women whose fingers

spin magic. The art of lace work the women possesses here is a source of income to many poor

income groups. This income is very meager in comparison to the value of work due to the

exploitation by the middlemen in the business and also due to the ignorance and illiteracy of

these women. Another reason is the low productivity and quality which fetches lower wages. It

is here that an intervention was needed to lend a voice to these women by constructively

organizing them into groups, improving upon their skills and quality consciousness by imparting

intensive training and providing them the space, facilities and quality raw material with all the

moral support they needed.

Lace entered into the lives of the local poor women as a means of livelihood and to

mitigate their financial problems to some extent and to keep them away from the daily grind of

the bondages of life. Lace making came as a hobby but later on became a craft and now it is a

profession. Almost every household in the rural areas at least one pair of hands are always busy

knitting and knotting simple cotton thread into beautiful designs. Lace making became a part and

parcel of the cultural life of the rural women folk. For rich and middle class it may be hobby but

to the poor rural it is the chief means of livelihood. The craft spread to the neighbouring villages

with a radius of 50 kilometers around Narsapur. Lace making can be seen in Narsapur,

Sitarampuram, Palakol, Mogaltur, Elamanchili, Poduru, Achanta, Penugonda, Peravali,

Penumantra and Tanuku mandals and other parts of West Godavari and Razole, Tekisettipalem,

Antharvedi and Sakinatipalli of East Godavari District.

www.ijocam.in


Conclusion

The crochet lace industry has high potential for women employment and foreign

exchange earning. The women in their part time are pursuing this work and producing laces in

different design according to the orders of exporters and it is not a direct profession to earn their

livelihood, they are not aware of the actual cost of the raw material used for the lace making and

the value added after the lace is prepared and the rates at which the finished lace is sold in the

market. In other words, their work is totally restricted to their labour only. Therefore, artisans are

earn very less amount as a remuneration in this lace making process.

It is observed that the employment conditions of lace workers are not as expected due to

middlemen. As the workforce is predominantly female, the major reason for taking up the lace

making work is to supplement family income. The nature of work of female includes hand work,

joints, bordering and lining. In case of male workers the work includes checking, repairing,

finishing, washing, ironing, packing and forwarding. It can be stated that the lace making is

dominated by women workforce with a marginal number of male workers. The income of the

lace workers is less than their expenditure and hence they are indebted. The physical working

environment for the lace workers is congenial but they are not given the statutory leaves and

holidays. The Minimum Wages act, 1948 is applicable to the lace workers but the wages paid to

the workers are not as prescribed under the Act. There is lot of differences between male and

female workers wages. The social security legislations like Employees Provident Fund Act, 1952

are applicable to lace workers which is not implemented so far. The Factories Act, 1948 is

applicable to the lace making work shops to provide health, safety, welfare, paid holidays, leave

with wages. But in practice no employers is implementing the Acts for the benefit of the lace

workers.

Reference

1. Export Promotion Council for Handicrafts, Indian Handicrafts, New Delhi, 1995.

2. Government of India – All India Handicrafts Board Marketing Clinic on Andhra Pradesh

Handicrafts, February, 1976.

3. Government of Andhra Pradesh, Andhra Pradesh District Gazetteers, West Godavari

District, Hyderabad, 1992.

4. Government of India, Towards Equally- Report of the Committee on the States of

Women in India, Department of Social Welfare, New Delhi, 1974.

5. K.Paddi Raju, Lace Workers of Narsapur, Dissertation Submitted in Andhra University,

Visakhapatnam, 1996.

6. Miens, Maria, The Lace Makers of Narsapur, Indian Housewives Produce for the World

Market, Zed Press, London, 1982.

7. P.V.Rama Sastry, HRD in Narsapur Lace Park, Dissertation Submitted in Acharya

Nagarjuna University, Guntur, 2007

8. The Hindu Daily on Dt. 24-07-2009 Page. 4.

www.ijocam.in


Scenario of Corporate Restructuring

Sedembi Veena

Asst. Professor

Department of Management Studies

[email protected]

Sri Vishnu Engineering College For Women

Bhimavaram

Abstract

Corporate Debt Restructure is a timely and transparent mechanism for restructuring the corporate

debts of viable entities facing problems. These are those entities which are outside the purview of

Board of Industrial and Financial Restructure, Debt Recovery Tribunal and other legal

proceedings for the help of the needy. There has been an uproar in its utility since its inception in

the year 2001 in the form of both enthralling and lucrative in the financial sector which involves

in deleveraging the debt component. In the terms of the adoption of the scheme as a non statutory

mechanism its success and failure are both of prime importance to both the lenders and the

borrowers in the capital market. Thus, the present study is proposed with the following

objectives.

Objectives Of The Study

1. To understand the structure of the of the CDR system in India

2. To understand the Debtor Creditor Agreement and Inter Creditor Agreement

3. To analyze the position of foreign lenders in the aforesaid mechanism

4. To look for the parameters or the acceptable benchmarks

Research Methodology

This paper is wholly animated on the basis of secondary data sources and the literature available

on online. Therefore, it attempts to collect no primary data with respect to the topic. Also the

paper does not occasion to frame any sample size of the study.

Key words: Debt Recovery Tribunal, economic crisis, transparency

Introduction

The reorganization of a company's outstanding obligations, often achieved by reducing the

burden of the debts on the company by decreasing the rates paid and increasing the time the

company has to pay the obligation back. This allows a company to increase its ability to meet the

obligations. Also, some of the debt may be forgiven by creditors in exchange for an equity

position in the company.

Corporate Debt Restructuring (“CDR”) mechanism is a voluntary non statutory mechanism under

which financial institutions and banks come together to restructure the debt of companies facing

financial difficulties due to internal or external factors, in order to provide timely support to such

companies. The main aim of the CDR mechanism is revival, protection of the interest and also to


www.ijocam.in


restructure the debt in a speedy and transparent way beneficial to the lending financial

institutions and other stakeholders. This is available to those corporates who have the advantage

of tapping more than one institution

According to the guidelines issued by Reserve Bank of India the objectives of CDR mechanism

are:

1. To ensure timely and transparent mechanism for restructuring of corporate debts of

viable entities facing problems

2. To preserve viable corporations affected by certain internal and external factors

3. To minimize losses to creditors and other stakeholders through an orderly an

coordinated restructuring programme

The CDR system is a three tier structure consisting of:

1. CDR Standing form: A Self empowered representative general body consisting of banks

and other financial institutions. Its functions are of laying down the policy and guidelines,

monitoring the progress of CDR, provision of platform for the borrowers and creditors to

work out the plan in the best of interest of all.

2. CDR Empowered Group: The individual cases of CDR are decided. Based on the

preliminary report which is submitted by the empowered group the CDR Cell within the

ambit of the guidelines provided by the Standing Forum works out the detailed

restructuring package in conjunction with the lead financial institution. Such package is

subject to the approval of the empowered group within the specified time limits.

3. CDR Cell : The main function of this tier is (i) initial scrutiny of the health of the

company (ii) role of corporate governance (iii) scrutinizing of the proposals received

from borrowers or creditors etc

Who can make the reference?

Reference to the CDR Cell may be made by (i) one or more creditor who have minimum 20%

share in either the working capital or term finance of the company in respect of which the

reference is made, or (ii) by the concerned corporate if such corporate is supported by a bank or

financial institution having 20% stake as above.

CDR is a non-statutory mechanism and a voluntary system which is based on debtor creditor

agreement (“DCA”) and inter-creditor agreement (“ICA”). The lenders in foreign currency

outside the country are not part of the CDR mechanism. Such creditors and also creditors like

GIC, LIC, UTI etc., who have not joined the CDR mechanism, could join the same for a

particular companies debt restructuring by signing transaction to transaction ICA, wherever they

have credit exposure.

The CDR system favours the Indian Banks and aso the foreign lenders who may be having minor

exposure to the company might prefer to deal independently.

The asset classification under the CDR system is of :

Category 1 consisting of standard and sub standard assets

Category 2 consisting of doubtful and loss assets

www.ijocam.in


Apart from the standstill clause the most interesting feature of the CDR is the provision of

the additional finance to the entity and the concept of exit option. This additional finance is to be

provided as per the final package by all creditors of category 1 on a pro rata basis.

And if they do not agree they shall have an exit option. The exit option can be either of the two

forms:

Arrange for its share of additional finance to be provided by a new or existing creditor; or

Agree to the deferment of first years interest due to it after CDR package becomes effective.

There is however another option called as conversion option which provides for conversion into

equity investment.

The CDR Empowered Group shall decide on provision of financial package on a case to case

basis based on certain benchmark parameters like Return on Capital employed, Debt Service

Coverage Ratio and difference between the internal rate of return and the cost of capital etc

Evaluation of CDR mechanism

After the financial crisis of 2008 and the deep depression of 2009, as economic conditions

improve, a number of cash strapped corporate were in the path of recovery. According to the

recent statistics as many as 25 companies amounting to Rs.20,000 crores are in the process of the

CDR restructuring.

The entities under the CDR exercise include Gamuel India Ltd., Nitin Spinners, Nagarjuna

Fertilizers, India Cements, Gujarat Road and Infrastructure Company, Bharati Shippyard Ltd.

Also companies like Ind Swift Labs, Deccan Chronicle Holdings and Kamat Hotels have been

referred to CDR cell and are pending approval. Until 2013 a number of companies have been

nursed back to health, and most of them just needed to pay the recompense amount to the

bankers and exit the CDR cell. Thus, on observing Nitin Spinners have exited the CDR cell and

others are yet to pay the recompense amount. The reason for its exit was in terms of its improved

performance. There are companies like Essar Oil which have completed the exercise and have

exited the CDR cell. However, according to sources, there are companies like India cement,

which are making profits but are refusing to make the recompense amount and exit the CDR cell.

This could be due to the reason that they still wish to enjoy the benefits under the mechanism.

When we look at the finance package under CDR and its failure we can see for example

Bharati Shipyard Ltd, Hotel Leela Venture Ltd, Electrotherm (India) Ltd and SBQ Steels Ltd

almost to the tune of 14000crores of rupees have ended in failure in the previous years. Apart

from them last year there were six restructuring cases where it is seen KS Oils Ltd being the

biggest with Rs.2500 crores of CDR and Varun Industries Ltd wit Rs.1600 crores ( as one among

those 6) have seen debt resolution as a failure exercise. This could be due to reasons such as a

slump in economic growth almost to decade’s lows, high borrowing cost, stalled projects with

meager cash flows all of which have forced the borrowers to enter in CDR agreements with their

creditors. However the failure of CDR agreements may imply that creditors had been hasty in

agreeing to recast the debt and could be that they have failed to adequately assess the ability of

the borrowers to meet their restructuring commitments thereby only delaying and affecting their

www.ijocam.in


loans rather than solving the underlying problems. This again could be coupled with reason

where at times banker’s inability to release funds agreed upon in the restructuring agreement.

Also non compliance by borrowers with the terms of agreement such as for example: failure on

the part of the promoters to bring in the required equity leading to failure of the whole exercise

by the cell.

Issues Involved In The Cdr Mechanism

1. If the package is not implemented with a period of 4 months, then it would indicate that

the success of the package is uncertain

2. However, in the case of accounts where the existing facilities are classified as ‘sub-

standard’ and ‘doubtful’, interest income on the additional finance should be recognized

only on cash basis. If the restructured asset does not qualify for up gradation

3. At the end of the above specified one year period, the additional finance shall be placed in

the same asset classification category as the restructured debt.

4. The providers of additional finance, whether existing creditors or new creditors, shall

have a preferential claim, to be worked out under the restructuring package, over the

providers of existing finance with respect to the cash flows out of recoveries, in respect of

the additional exposure

5. The lenders who wish to exit from the package would have the option to sell their

existing share to either the existing lender s or fresh lenders, at an appropriate price,

which would be decided mutually between the exiting lender and the taking over lender.

The new lenders shall rank on par with the existing lenders for repayment and servicing

of the dues since they have taken over the existing dues to the exiting lender.

6. If an account with any creditor is subjected to One Time Settlement (OTS) by a borrower

before its reference to the CDR mechanism, any fulfilled commitments under such OTS

may not be reversed under the restructured package.

7. Equity acquired by way of conversion of debt / overdue interest under the CDR

mechanism is allowed to be taken up without seeking prior approval from RBI, even if by

such acquisition the prudential capital market exposure limit prescribed by the RBI is

breached, subject to reporting such holdings to RBI, Department of Banking Supervision

(DBS), every month along with the regular DSB Return on Asset Quality. However,

banks will have to comply with the provisions of Section 19(2) of the Banking Regulation

Act 1949.

8. Acquisition of non-SLR securities by way of conversion of debt is exempted from the

mandatory rating requirement and the prudential limit on investment in unlisted non-SLR

securities prescribed by the RBI, subject to periodical reporting to RBI in the aforesaid

DSB return.

9. Acquisition of non-SLR securities by way of conversion of debt is exempted from the

mandatory rating requirement and the prudential limit on investment in unlisted non-SLR

securities prescribed by the RBI, subject to periodical reporting to RBI in the aforesaid

DSB return. There have been instances where the projects have been found to be viable

by the creditors but the accounts could not be taken up for restructuring under the CDR

system as they fell under ‘doubtful’ category. Hence, a second category of CDR is

introduced for cases where the accounts have been classified as ‘doubtful’ in the books of

creditors, and if a minimum of 75% of creditors (by value) and 60% creditors (by

number) satisfy themselves of the viability of the account and consent for such

restructuring, subject to the following conditions:

www.ijocam.in


i. It will not be binding on the creditors to take up additional financing worked

out under the debt restructuring package and the decision to lend or not to lend

will depend on each creditor bank / FI separately. In other words, under the

proposed second category of the CDR mechanism, the existing loans will only

be restructured and it would be up to the promoter to firm up additional

financing arrangement with new or existing creditors individually.

.

ii. ii) All other norms under the CDR mechanism such as the standstill clause,

asset classification status during the pendency of restructuring under CDR, etc.,

will continue to be applicable to this category also.

10. No individual case should be referred to RBI. Core Group may take a final decision

whether a particular case falls under the CDR guidelines or it does not etc

Conclusion

Under the CDR exercise, companies that are unable to meet their interest payment obligations are

given a helping hand by way of reduced rates or extended repayment. Tenures. This is done on a

case to case basis and as such where the lending to the company involves more than one financial

institution ie lending via a consortium of bankers

Under the CDR exercise, companies that are unable to meet their interest repayment obligations

are given a helping hand by way of reduced rates or extended repayment tenures. This is done in

cases where companies have been lent to via a consortium of bankers.

Though norms for the CDR process were tightened corporates from seeking restructuring.

"Promoters now need to pay up to 25% of the lenders' sacrifice under CDR, but we are still

seeing a steady flow of requests for restructuring," said a banker from a large state-owned

bank.last quarter to include a higher sacrifice from the promoters, bankers say this hasn't deterred

The jury is still out on the efficacy and morality of the CDR process. While two deputy

governors of the Reserve Bank of India - KC Chakrabarty and Anand Sinha - have been openly

critical of the process, bankers defend the CDR process as one which is necessary and effective.

Speaking to ET NOW last week, RBI Deputy Governor Anand Sinha said that the central bank is

working on norms for CDR, and that it will come up with new norms in accordance with the

Mahapatra Committee Report on CDR

Any kind of restructuring has to be accompanied by prudence on the part of lenders and financial

discipline on the part of the borrowers – absence of which results in dead weight loss.

References

http://www.limvemint.co, RBI Guidelines and seminar reports on CDR

www.ijocam.in


Journal Subscription Form

Please fill in the form and send it back to us either by post or email.

Address: Rama Bhadra Rao Maddu, Editor – in Chief, 3-195, saripalli, West Godavari District , Ap , India – 534312

E-mail: [email protected], [email protected] , Phone: +91-9490730454

Subscriber Details

Name: ______________________________________________________________

(First Name) (Last Name)

Title: ________________________ Department: __________________________

Address: _____________________________________________________________

_____________________________________________________________________

Tel.: _________________________ Fax: _________________________

Email: ________________________________

Item India International

One Year Rs. 1500 $ 100

Two Years Rs. 2500 $ 200

I would like to subscribe the journal (Please put (√) Mark):

1.International journal of advances in arts, sciences and engineering (IJOAASE)

2.Indian Journal of Commerce and management (IJOCAM)(Commo‘N’Man)

Total copies of subscription: 1._______________2.________________

Total amount: _________________________

NEFT Transaction No: __________________________________________________

(Before processing payment contact Editor-in-Chief through email / mobile - bank account details will be

provided)

Date________________



Documents

Journal of Commerce and Management - … 2 Issue 3 December 2014.pdf · Children who are monitored more carefully by ... They need chances to reflect on what they have learnt,