An online portal which offer daily lecture series on Cooperative affairs with additional static facts and useful information relevant for all Cooperative examinations.
Tuesday, 31 March 2020
Primary deposit and derivative deposit
Saturday, 28 March 2020
Modern functions of commercial banks & The principles of commercial banking
Modern
functions of commercial banks:
·
Phone
banking
·
Issue
of debit/credit cards
·
Bancassurance
which is selling of insurance using banking channels.
·
Offering
the ATM facility
·
SMS
alerts
·
Rail
and air ticket reservation
The principles of
commercial banking are the principles of:
·
Liquidity
·
Profitability
·
Solvency
·
Safety
·
Collection
of Savings
·
Loans
and Investment Policy
·
Economy
·
Providing
services
·
Secrecy
·
Modernization
·
Specialization
·
Location
·
Relations
·
Publicity
Friday, 27 March 2020
Functions of commercial banking
Functions of commercial
banking
Functions of commercial
banking
§ Principal
/ Primary / Basic / Fundamental functions
§ Receiving
of deposits:-
o
Current accounts / Demand deposits /
Demand liabilities
o
Saving bank account
o
Fixed deposit account / Time deposits /
Time liability
o
Recurring deposit account
o
Home safe account / Money box Scheme
§ Lending
of funds
o
Loans
o
Cash credits
o
Overdrafts
o
Discounting of bills
§ Investment
of funds on securities
§ Credit
Creation
§ Subsidiary
/ Secondary / Supplementary / Ancillary functions
§ Agency
services
o
Collection of money on behalf of
customers
o
Making
Payment on behalf of customers
o
Purchase and sale of securities on
behalf of customers
o
Advising customers regarding stock
exchange investment
o
Acting as Trustee, Executer or Attorney
of customers
o
Serving as correspondents and
representative of customers
§ Miscellaneous
/ General utility services
o
Safe custody of valuables
o
Issuing of Travelers ‘letter of credit,
and Travelers Cheques
o
Acting as a Referee
o
Collection of statistics and Data.
§ Principal
/ Primary / Basic / Fundamental functions
§ Receiving
of deposits:-
o
Current accounts / Demand deposits /
Demand liabilities
o
Saving bank account
o
Fixed deposit account / Time deposits /
Time liability
o
Recurring deposit account
o
Home safe account / Money box Scheme
§ Lending
of funds
o
Loans
o
Cash credits
o
Overdrafts
o
Discounting of bills
§ Investment
of funds on securities
§ Credit
Creation
§ Subsidiary
/ Secondary / Supplementary / Ancillary functions
§ Agency
services
o
Collection of money on behalf of
customers
o
Making
Payment on behalf of customers
o
Purchase and sale of securities on
behalf of customers
o
Advising customers regarding stock
exchange investment
o
Acting as Trustee, Executer or Attorney
of customers
o
Serving as correspondents and
representative of customers
§ Miscellaneous
/ General utility services
o
Safe custody of valuables
o
Issuing of Travelers ‘letter of credit,
and Travelers Cheques
o
Acting as a Referee
o
Collection of statistics and Data.
Thursday, 26 March 2020
structure of commercial banking / Commercial banking system:
Origin of the Term
‘Bank’
The English term ‘Bank’
is derived from-
|
The Italian word ‘banco’
The Latin word ‘bancus’
The Greek word ‘banque’ or
The French word ‘banque’
|
Which means a bench
|
|
The German word ‘banc’ / ‘banck’
|
Which means a joint stock / common
fund (heap of money)
|
Classification of
commercial banking on the basis of structure of commercial banking
/ Commercial banking system:
§ Group
banking / Holding company banking:- Group
banking is a system under which a
group of banks separately incorporated are bought under the control of a
holding company.
§ Chain
banking:- it is a
system under which a number of
separately incorporated banks are brought under common control by a device
other than holding company, say, through a group of persons purchasing share
and controlling a number of independent banks or through inter-locking of
directors.
§ Correspondent
banking system:- it is a system under which units banks
are linked with big correspondent banks.
§ Branch
Banking / Delocalized banking:- an individual bank
carries on banking business with a network of branches spread all over the
country.
§ Unit
banking / Localized banking:- it is a system under
which an individual bank carries on banking business through a single office.
§ Mixed
banking:- Commercial banks provide both short term and long
term loans. Here bank plays the dual role of commercial banking and industrial
banking.
COOPERATIVE COMMON WEALTH
COOPERATIVE COMMON WEALTH
Prof
DR Gadgil
Book: “Towards
Co-operative Commonwealth”
Economic. Political & Social brotherhood among the
co-operatives of the various countries of the world.
Wednesday, 25 March 2020
INTRODUCTION TO CO-OPERATION
MEANING AND
DEFINITION CO-OPERATION
Co-operation is derived from the Latin word “Co-operari”, ‘Co’ means
“with” and ‘operari’ means “to work”. Hence co-operation means Working Together with others for
a common purpose.
The basic idea behind Co-operation is “Self Help and Mutual Help” and “Mutual Aid”
and “Each for all and all for each”.
FEATURES OF CO-OPERATIVES
1.
An Association of Persons
2.
An Enterprise or Undertaking
3.
Voluntary Association
4.
Service Objective
5.
Democratic Management
6.
Equity
7.
Norms of Social Justice
8.
A part of Socio-economic Movement
9.
It is based on proportionality or equality
10.
It is a Universal Movement found in all
countries of the world.
VALUES OF CO-OPERATION
Cooperatives are typically based on the cooperative values
of "self-help, self-
responsibility, democracy and equality, equity and solidarity"
SEVEN COOPERATIVE PRINCIPLES.
1. Voluntary and open membership
2. Democratic member control
3. Economic participation by members
4. Autonomy and independence
5. Education, training and information
6. Cooperation among cooperatives
7. Concern for community
OBJECTIVES OF CO-OPERATION
1.
Elimination of Middlemen
2.
Raising economic status of the poor
3.
Removal of the ills of capitalism
4.
Increasing the prosperity of the whole
community.
5.
Abolition of Social Inequalities
6.
Political and Religious Neutrality
7.
Development of Corporate Life
BENEFITS OF CO-OPERATION
The benefits of co-operation are
studied under three broad categories viz.,
1. Economic Benefits
2. Social and Political Benefits
3. Educational Benefits
1. Economic Benefits
v
The substitution of profit incentive in business
by that of service to the community.
v
A more equitable distribution of wealth.
v A
break up of monopolistic tendencies.
v
Increase in purchasing power and real wages to
individuals.
v
Reduction in cost of distribution system by
elimination of unnecessary middlemen.
v
The more accurate correlation of demand and
supply.
v
Stabilization of employment.
v
General improvement in employer, employee
relationships.
v
Cheap marketing and processing of farm products
at reasonable prices.
2. Social and Political Benefits
v
To provide a unique education in democracy,
responsibility and toleration.
v
To train for political power.
v
To evolve an industrial relationship among all.
v
To preserve a strong friendly or family spirit
and sense of pride and power which is impersonal.
v
To secure rational construction and unifying
approaches to social and economic problems.
v
To prevent underemployment and unemployment
v
To secure moral as well as physical satisfaction
of pure quality, correct weight and fair dealings.
v
To prevent exploitation of man by man.
IIIEDUCATIONAL BENEFITS
v
The individuals learn by experience gained in
practical work of co-operation.
v
Co-operation also sponsors education. There are
many co-operative schools and colleges formed to provide affordable education
and also employment to educated unemployed youths
IV ETHICAL BENEFITS
v
The policy of honesty is a necessity in
co-operation
v
Cooperation returns money value for honesty and
other virtues.
v
The motto of co-operation is “ each for all and
all for each”
v
Co-operation aims at the production of fine
human beings.
The United Nations had declared 2012 to be the International
Year of Cooperatives (IYC).
Friday, 13 March 2020
ജൂനിയർ കോ ഓപ്പറേറ്റീവ് ഇൻസ്പെക്ടർ (കാറ്റഗറി നമ്പർ 237/2018)- അന്തിമ ഉത്തര സൂചിക സംപതിച്ച പരാതിയുടെ മാത്രക
സാർ
ഞങ്ങൾ കേരള പി എസ് സി യുടെ ജൂനിയർ കോ ഓപ്പറേറ്റീവ് ഇൻസ്പെക്ടർ പരീക്ഷ എഴുതിയ ഉദ്യോഗാർത്ഥികളാണ്( ചോദ്യപേപ്പർ കോഡ് 008 / 2020 ,പരീക്ഷ നടത്തിയ തിയ്യതി 01.02.2020, Gazette : 29/12/2018, കാറ്റഗറി നമ്പർ 237/2018 ).
പരീക്ഷക്ക് ശേഷം പി എസ് സി പ്രൊവിഷണൽ ആൻസർ കീ പബ്ലിഷ് ചെയ്തിരുന്നു.അതിൽ ആൻസറുകളിൽ വന്ന തെറ്റുകൾ ഓൺലൈൻ വഴിതന്നെ പി എസ് സി യെ അറിയിച്ചിരുന്നു. അതെല്ലാം ഫൈനൽ ആൻസർ കീ വരുന്ന സമയത്തു തിരുത്തപ്പെടും എന്നാണ് ഉദ്യോഗാർത്ഥികൾ വിചാരിച്ചിരുന്നത്.എന്നാൽ ഫൈനൽ കീ വന്നപ്പോൾ ആൻസർ കീയിൽ കൂടുതൽ തെറ്റുകൾ സംഭവിക്കുകയാണ് ഉണ്ടായിട്ടുള്ളത്.കോ ഓപ്പറേറ്റീവ് ലോ ഭാഗത്തുനിന്ന് സെക്ഷൻസ് നമ്പറുകൾ വരെ ഉത്തരങ്ങളായി വരുന്ന ചോദ്യങ്ങൾക്കുവരെ തെറ്റായ ഉത്തരമാണ് ഫൈനൽ കീയിൽ ഉള്ളത് (ശരിയായ ഉത്തരം ഓപ്ഷനിൽ ഉണ്ടായിട്ടാണ് ഈ രീതിയിലുള്ള അനാസ്ഥ).
ഓരോ മാർക്കും ഓരോ ഉദ്യോഗാര്ഥിയുടെയും ജീവിതമാണ് അതുവെച്ചാണ് ഉത്തരവാദിത്തപെട്ടവർ ഈ രീതിയിൽ ചെയുന്നത്.കഷ്ട്ടപെട്ടു പഠിച്ചു ശരിയുത്തരം എഴുതിയ ഉദ്യോഗാർത്ഥികൾക്ക് അർഹതപ്പെട്ട മാർക്കു ലഭിച്ചേപറ്റൂ.ആയതിനാൽ ഈ കാര്യത്തിൽ ഉദ്യോഗാർത്ഥികൾക്ക് നീതി ലഭിക്കുന്നതിനുവേണ്ടി ഇടപെടണമെന്ന് അപേക്ഷിക്കുന്നു.
ഫൈനൽ കീയിലെ തെറ്റുകൾ താഴെ നൽകിയിരിക്കുന്നു. (ഈ ചോദ്യങ്ങൾ എല്ലാം റെഫെറൻസ് വെച്ചുകൊണ്ട് പി എസ് സി യെ അറിയിച്ചിരുന്നതാണ്)
ആൽഫ കോഡ് A പ്രകാരമാണ് ചോദ്യ നമ്പർ കൊടുത്തിട്ടുള്ളത്.
17. The Registrar shall make an order for the cancellation of the registration of the society
under :
(A) Section 73 (B) Section 74
(C) Section 72 (D) Section 75
( ശരിയായ ഉത്തരം ഓപ്ഷൻ "B" Section 74 എന്നത് ഫൈനൽ കീയിൽ കൊടുത്തിട്ടുള്ളത് ഓപ്ഷൻ "D" എന്നാണ്).
30. ————– is an officer/person appointed under section 68 A of Kerala Cooperative Societies
Act.
(A) Registrar (B) Arbitrator
(C) Vigilance Officer (D) Liquidator
(ശരിയായ ഉത്തരം "C" എന്നത് തെറ്റുത്തരമായ "B" എന്നാണ് കീ യിൽ നൽകിയിട്ടുള്ളത്)
39. All India Rural Credit Review Committee was established by Reserve Bank of India in :
(A) 1951 (B) 1954
(C) 1970 (D) 1963
(ഈ ചോദ്യത്തിന്റെ ശരിയായ ഉത്തരം തന്നിട്ടുള്ള ഓപ്ഷനിൽ ഇല്ല , ഈ ചോദ്യം ക്യാൻസൽ ചെയ്യാതെ ഉത്തരമായിട്ടു നൽകിയിട്ടുള്ളത് ഓപ്ഷൻ "C" എന്നാണ്).
76. The relationship between the customer and the banker in case of deposit :
(A) Principal and agent (B) Debtor and creditor
(C) Lessee and lesser (D) None of these
(തന്നിരിക്കുന്ന ഓപ്ഷനിൽ "D" യാണ് ശരിയായ ഉത്തരം ,ഫൈനൽ കീ പ്രകാരം "B" എന്നാണ്)
96. A device which is used to boost the signal between two cable segments or wireless access
points is :
(A) Booster (B) Repeater
(C) Switch (D) Router
(ശരിയുത്തരമായ ഓപ്ഷൻ "B", തന്നിരിക്കുന്ന ഓപ്ഷനിൽ ഉണ്ടായിട്ടും ഈ ചോദ്യം ക്യാൻസൽ ചെയ്തു)
തെറ്റായ ഉത്തരങ്ങൾ നൽകിയ ചോദ്യങ്ങൾക്കു റെഫെറൻസ് വെച്ചുകൊണ്ട് തന്നെ പി എസ് സി യെ അറിയിച്ചിരുന്നു, പരീക്ഷ കഴിഞ്ഞു അഞ്ചു ദിവസത്തിനകം ഓൺലൈൻ ആയികൊണ്ടു തന്നെ പി എസ് സി യെ അറിയിച്ചിരുന്നതാണ്,ഇതിനുള്ള അവസരം പി എസ് സി നൽകുകയും ചെയ്തിരുന്നു. അതിൽ നിന്നും നീതി ലഭിക്കാത്തതുകൊണ്ടാണ് ഈ രീതിയിൽ ഒരു അപേക്ഷ നൽകുന്നത്.
എന്ന് ഒരുകൂട്ടം ഉദ്യോഗാർത്ഥികൾ
Letter to be posted to
Controller of Examination
Kerala Public Service Commission
Pattom, Thiruvananthapuram
PIN 695004 , Kerala
Saturday, 22 February 2020
Cooperation and other economic systems- Capitalism, socialism and communism
I
- Cooperation and other economic systems- Capitalism, socialism and communism
Capitalism
Capitalism is a system
wherein the entire means of production and distribution of goods and services
are vested in the hands of the private individuals.
Capitalism is a system of economic
organization in which business and industries are organized and carried on for profit by private
individuals and enterprise with a minimum of Government interference.
Features of Capitalism:
1. Private ownership of means of production or factors.
2. Management of means
of production for private
gain
3. Freedom of contract and
enterprise
4. Class conflict between labour
and capital
5. Non-intervention of government
in the economic matters
6. Exploitation of man, by
man
7. Class conflict and
resultant Class struggle
8. Competition in the market
as the regulator of price and business activities
9. Wide gap between ‘haves’ and ‘have not’s’
Thus capitalism as a system depends for its existence on
certain fundamental points such as:
1. Right of inheritance
2. Right of free
enterprise
3. Right of contract
4. Right of private
gain and personal freedom
5. Free competition and
guaranteed privileges.
Advantages of Capitalism:
a. The reward is apportioned on
merits.
b. The individual
initiative and personal
freedom is the best motivation for advancement of business.
c. As production is
carried on according to the wishes of Consumers, the consumers are happy.
d. Capitalism has
survived many crisis and it is flexible in the sense that it is easy to adapt to changing
economic conditions.
e. It is also open to a
certain amount of
regulation by the State
Disadvantages of Capitalism:
a. Permitting private
individuals to exploit
every situation.
b. Capitalism fosters
too much of individualistic outlook and operates without any definite plans as
to production, resulting in mal adjustments of supply and demand.
c. Individuals or the
capitalists obtain all private gain at the cost of the community to its great
detriment. d. The centralization of power in a few hands in regard to
production of goods leads to accumulation of power with few elite people.
e. In capitalism there
is unfair, unequal
distribution of income and wealth.
f. There exists cut throat competition
which result in waste of resources and manpower resulting in overproduction of
certain classes of goods. Sometimes there is underproduction to create artificial scarcity
and increase price and profit. g. Human values and ethics are not at all taken
care of.
h. The workers are merely
treated as a part of factor
of production.
i. Capitalism leads to a division of society into
working class and the capitalist.
DIFFERENCE BETWEEN CAPITALISM AND
CO-OPERATION
1. In capitalism capital has a pivotal
role to play in the business whereas in co-operation, it has a secondary role.
2. The capitalistic
economy is dominated by profit
motive whereas service is the motto of co-operatives.
3. In capitalism there is union
of capital and in co-operatives there is union of persons.
4. Share capital determines the
voting rights in capitalism whereas in co-operation, one man has one vote irrespective of
their capital contribution.
5. Capital owns men in a
capitalistic economy while in a co-operative society, men own capital.
6. In capitalistic
system business tends to concentrate
wealth in the hands of a few capitalist whereas in the co-operative
system wealth is
decentralized.
7. In capitalism there
is cut throat competition
whereas there is no such
competition in co-operation.
SOCIALISM
Socialism is a system
wherein all means of production and distribution is owned and controlled by the state. It is a
socio economic system in which material means of production are owned by public
authority or the community and operates not for profit but for the services of
the community at large. Socialists are of different types and they are Marxism socialism or scientific socialism State
socialism Guild socialism; and Evolutionary and revolutionary socialism
The principles common to all socialist are substitution of collective ownership
for private property in all instruments of production which permit exploitation
of labour and the substitution of a central authority controlling production in place of the
present competitive environment.
FEATURES OF A SOCIALISTIC ECONOMY
1. State alone has the power
to organize and conduct production.
2. Nationalization of all
the means or instruments of production ie., land, factories, mines, railways
and their ownership to be transferred to the state.
3. Controlling Boards
would be established in each industry and the state would pay wages fixed by such boards.
4. State would provide work for everyone.
5. The state itself would be
capitalist, the landlord and the organizer of industry and thus interest
and rent would disappear.
6. Remuneration for work would vary
according to one’s ability and everybody is assured of an equal
opportunity to rise in life, irrespective of rank.
7. The state would undertake production
and distribution and pay costs of production and annex profits as well.
Profits arising out of production would be spent by the state on education, medical
relief, recreation and entertainment of the poor.
8. Private property in
capital goods like residential house, furniture and fixtures and other consumer
goods would be allowed.
9. Private ownership of means of
production is prohibited.
10. Each individual is
assured of fixed income.
11. The entire surplus or profits
belongs to the state.
12. There is no class difference or class struggle; and
13. Balanced Economic development
MERITS OF SOCIALISM
1. As the State runs the entire operations,
considerable fund is
accumulated with the State which can be used for amenities like
education, medical facilities, free milk for children and for entertainments.
2. The productive resources are
utilized in an effective manner.
3. Jobs neglected by
people would be given to machinery and they would be free to pursue higher aims
in life.
4. As equality of opportunity
is afforded to all to rise to higher positions in life, considerable uplift of
uplift of the masses is brought under a socialistic state
SIMILARITIES BETWEEN CO-OPERATION AND
SOCIALISM
1.
Both aim at the abolition of class struggle, profit economy and
poverty in the midst of plenty, which militate against the norms of a
welfare state.
2.
Both maintain economic equality and offer no opportunity for the
development of glaring inequalities of income and wealth.
3.
In both the forms, actions are directed
towards the elimination of
competitive forces and their substitution by the principles of
co-operation.
4.
Both aims at the welfare of the community and the promotion
of social justice and progress.
5.
Both oppose individualism and seek to replace
it by collective ownership
and collective action.
6.
Both lay emphasis on distribution of wealth.
7.
The aims of both are rendering of service rather than earning
profit.
8.
Both the systems are based on moral foundation and believe in
human brotherhood.
9.
Both try for eliminating the evil effects of competition.
DIFFERENCE BETWEEN SOCIALISM AND
CO-OPERATION
1.
System
Socialism is a system of government
which seeks to move towards its objectives by changing the prevalent economic
order. But co-operation is a system of thought which is compatible with all
forms of economic and political systems. A better philosophy is enunciated
within the system itself to help the common man to gain strength.
2.
Type
of Remedy
Socialism is a political remedy for economic
evils and it is effective through the active involvement of the Government. On
the other hand, co-operation is a non-political alternative to the economic
problems.
3.
Supremacy
Under socialism, the state is supreme
for it participates in and exercises control over production and distribution.
The state interferes in all matters and the individual freedom cannot be exercised.
Under co-operation, the individual is supreme, he enjoys freedom of action. The
members direct the activities of the organization.
4.
Capital
Socialism is against the idea of the
accumulation of capital by individuals. The co- operatives do not discourage
accumulation of capital by its members. But in co- operation takes care to
ensure that they are not controlled by it.
5.
Role of
the State
Socialism operates under state domination,
which is both the deciding authority and the directing agency. But
co-operatives seek to avoid state control
6.
Type
of Property
Socialism is associated with State
Ownership. All the means are owned collectively by the community. On the other
hand, co-operation is characterized by, the co-existence of private and
collective ownership.
7.
Politics
Politics in socialism, finds a top place
in socialism, but the creed of co-operation is free from politics or it is
politically neutral.
8.
Control
In socialism, economy is controlled by the
State while co-operative organizations are managed democratically.
9.
Surplus
In socialist economy the surplus goes to the
state. But in co-operatives it goes to the members on the basis of patronage
dividend.
10. Object
The objective of socialist economy is to
protect the welfare of the people where as in co-operation the basic objective
is service to members.
COMMUNISM
Communism is mainly the product of Marxian philosophy contained in
the book Communist Manifesto, which was published in 1848 in collaboration with
Engles.
Communism is a term which is used “to
denote a system of social organization based upon common property, or an equal
distribution of income and wealth”.
Communism as a form of socialism in
which, the evils of capitalism are mitigated by resorting to revolutionary methods.
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