by rakesh | Sep 5, 2006 | India News
The implementation over the years has highlighted the need for a statutory authority with legal backing to ensure tiger conservation. On the basis of the recommendations of National Board for Wild Life, a Task Force was set up to look into the problems of tiger conservation in the country. The recommendations of the Task Force, inter alia include strengthening of Project Tiger by giving it statutory and administrative powers, apart from creating the Wildlife Crime Control Bureau. It has also recommended that an annual report should be submitted to the Central Government for laying in Parliament, so that commitment to Project Tiger is reviewed from time to time, in addition to addressing the concerns of local people.
The National Tiger Conservation Authority would facilitate MoU with States within our federal set up for tiger conservation. It will provide for an oversight by Parliament as well. Further, it will address livelihood interests of local people in areas surrounding Tiger Reserves, apart from ensuring that the rights of Scheduled Tribes and such other people living nearby are not interfered or adversely affected. The core (critical) and buffer (peripheral) areas have been defined, while safeguarding the interests of Scheduled Tribes and such other forest dwellers.
The functions and powers of the Authority, inter alia include : approval of Tiger Conservation Plan prepared by States, laying down normative standards for tiger conservation, providing information on several aspects which include protection, tiger estimation, patrolling, etc., ensuring measures for addressing man-wild animal conflicts and fostering co-existence with local people, preparing annual report for laying before Parliament, constitution of Steering Committee by States, preparation of tiger protection and conservation plans by States, ensuring agricultural, livelihood interests of people living in and around Tiger Reserves, establishing the tiger conservation foundation by States for supporting their development.
The Notification of the National Tiger Conservation Authority has been issued on 4th September 2006, for a period of three years, with the Minister for Environment and Forests as its Chairperson and the Minister of State for Environment and Forests as the Vice-chairperson. The official members include Secretary, Ministry of Environment and Forests, Director General of Forests and Special Secretary, Ministry of Environment and Forests, Secretary, Ministry of Tribal Affairs, Secretary, Ministry of Social Justice and Empowerment, Chairperson, National Commission for the Scheduled Tribes, Chairperson National Commission for the Scheduled Castes, Secretary, Ministry of Panchayati Raj, Director, Wildlife Preservation, Ministry of Environment and Forests and six Chief Wildlife Wardens (in rotation from Tiger Reserve States) (Arunachal Pradesh, Madhya Pradesh, Orissa, Rajasthan, Tamil Nadu and Uttaranchal). Three Members of Parliament would be nominated by the Parliament. The Ministry of Law and Justice would also be nominating an officer. The Ministry of Environment and Forests is in the process of selecting the eight non-official experts or professionals having prescribed qualifications and experience, of which at least two shall be from the field of tribal development. The Inspector General of Forests in charge of Project Tiger shall be the Member Secretary of the Authority.
The Ministry is in the process of creating the Wildlife Crime Control Bureau, invoking the provisions created after the recent amendment. The Bureau would collate intelligence relating to wildlife crime, ensure coordination with State Governments and other Authorities through its set up, apart from developing infrastructure and capacity building for scientific and professional investigation into wildlife crimes and assist the State Governments in successful prosecution of such crimes.
The penalty for an offence relating to the core area of a tiger reserve or hunting in the reserve has been increased. The first conviction in such offence shall be punishable with imprisonment not less than three years but may extend to seven years, and also with fine not less than fifty thousand rupees but may extend to two lakh rupees. The second or subsequent conviction would lead to imprisonment not less than seven years, and also with fine not less than five lakh rupees, which may extend to fifty lakh rupees.
by rakesh | Sep 4, 2006 | India News
Under the Act, the Institute of Actuaries of India will be set up to conduct examinations for the profession of actuaries to regulate the profession. The Institute would look into professional misconduct and create necessary facilities for the growth and training of the members of the profession. As a result, the Actuarial Society of India would be dissolved and its assets and liabilities transferred to the proposed Institute of Actuaries of India.
The traditional responsibilities of actuaries in life and general insurance business include designing and pricing of policies, monitoring the adequacy of funds to provide the promised benefits, recommending fair rate of bonus where applicable, violation of insurance business, ensuring solvency margin and other insurance risks like legal liability and loss of profit. Actuaries also define the risk factors, advise on the premium to be charged and re-insurance to be purchased, calculate the reserve for outstanding claims and carry on financial modelling. An actuary works as a consultant either individually or in partnership with other actuaries in multi-disciplines like insurance, information technology, taxation, employees benefit, risk management and investment.
by rakesh | Sep 3, 2006 | India News
According to Diamond Management and Technology Consultants (NASDAQ:DTPI) , a retail banking system that serves more rural customers can be an attractive business proposition. The World Bank estimates that credit demand in rural areas is approximately Rs 1,330 billion and other studies put that figure as high as Rs 1,500 billion. Furthermore, a large market remains untapped in both the liability (approximately Rs 215 billion) and asset (approximately Rs 1,204 billion) sides of the banking business.
Diamond outlines the scope of the opportunity in a new whitepaper, “Building a More Inclusive Financial System in India,” available upon request via an e-mail to: RuralBanking@diamondconsultants.com.
Overcoming Problems of Access to Banking Services
“There are some 32,000 commercial bank branches in India but they cover less than seven percent of the total villages in the nation,” said Vijay Mulbagal, a consultant in Diamond’s financial services practice in India. “Operating branches in many villages is simply too expensive to warrant the investment, but there are alternatives that can serve the interests of both rural customers and the banks.”
Banks have traditionally viewed the higher cost of serving rural customers, their higher credit risk, and a lack of information about customer behavior as barriers to providing greater access. For banks to view rural India as a growth opportunity, a number of access issues must be addressed. Physical infrastructure (electricity, transportation, telecommunications) is a major stumbling block. Regulatory constraints imposed by the Reserve Bank of India, such as the rule prohibiting staffing anyone other than a security guard at an ATM, inadvertently undermine access to banking services.
“There’s no one ‘right’ channel or solution to improve access,” said Mulbagal. “But it is possible to come up with an innovative cost-effective approach that creates greater access for rural customers, while satisfying a bank’s financial goals.”
According to the Diamond report, a combination of banking channels might include:
— Business correspondents or other authorized groups who could assist
with loan applications, nurture self-help and joint liability groups,
collect small-value deposits, and deliver small-value remittances.
— Secure mobile bank branches that visit villages on specified days and
deliver many of the same services as more expensive satellite offices
or bank branches.
— Low-cost, custom-made ATMs, managed by business correspondents that
would provide a cost effective scalable solution for rural areas.
Encouraging Greater Usage of Banking Services is Possible
Diamond notes that even with access to formal banking services there is no guarantee that they will be used by rural customers. Banks that have succeeded in capturing significant market share in urban environments must rethink their customer service model to match the needs of rural customers.
“Rural customers in particular need the capability to establish micro- savings accounts and withdraw funds frequently. However, the costs of opening and operating an account are high, particularly when you also consider the expense of traveling to a branch, and the opportunity cost of lost wages,” said Andrew Sofield, a Mumbai-based Manager in Diamond’s financial services practice.
Sofield noted that while banks commonly offer personal loans and credit cards to urban customers, those services are significantly restricted in rural areas, forcing rural customers to raise loans through the informal financial system.
“Even though rural customers may have a good track record of repaying loans, excessive documentation and time-consuming processes discourage customers from going through commercial banking channels,” Sofield said.
In its whitepaper Diamond offers specific suggestions for improving the convenience of banking for rural customers. These include early morning or late evening banking hours at rural branches and the provision of signature- ready deposit and withdrawal slips which require thumb impressions.
In addition, Diamond recommends that banks clearly define eligibility criteria and create credit scoring systems that take into account the irregular cash flows of farmers and other rural customers.
Government, Reserve Bank Must Get Involved
Commercial banks can’t go it alone, the Diamond report contends. The Central and State governments and the Reserve Bank of India have important roles to play in building a more inclusive banking system. The Bharat Nirman plan to improve transportation and power infrastructure in rural communities is an important first step in improving access to banking services. Rigorously enforcing the Moneylenders Act and educating rural customers about the benefits of using formal banking channels are also necessary. As regulator of the formal banking system, The Reserve Bank of India may have to re-examine some of its regulations governing the licensing of new branches, operations of ATMs and the use of technology.
“Usage and access issues that prevent more than 150 million bankable adults in rural areas from using formal banking channels can be overcome,” said Vinod Nair, Managing Partner of Diamond’s practice in India. “It will take a collaborative effort by the banks, the government and the RBI to serve the rural market. We think there’s a win/win opportunity for rural customers and banks if the banks are willing to take the initiative now.”
