BY: Precious Kashmir Desk
Srinagar: With both public and private sector banks not giving loans after the outbreak of COVID-19 pandemic has led to the surfacing of private finance companies offering loans at higher interest rates.
However, recent incidents of customers being driven to suicide after being unable to repay loans from financial technology (fintech) companies have raised concerns about their operations.
Experts are asking why are people, including small enterprises, seeking these quick but high-interest loans that can be availed of without any verification instead of seeking bank loans at more affordable rates?
Describing Fintech or app loans as ‘paperless banking’, senior bankers claim that their activities are in contravention of the Negotiable Instruments Act, 1881, which requires that loans cannot be given without verification. Fintech companies, some of which are being probed for alleged fraudulent practices, have been giving out loans without any collateral/identity verification, unlike banks, which go through due diligence before offering loans. So far, the RBI has not laid guidelines or ensured supervision of fintech players.
Despite criticism of app loans, experts and bankers agree that fintech companies are here to stay as they serve a fast-growing market need. Most are, however, reluctant to state that these sources of easy credit are bridging the gaps in services not being fulfilled by banks, particularly when people are still trying to cope with job losses and wage cuts. Government efforts to ease the burden of EMIs and loan repayments though a moratorium on repayment for a few months have not been enough for most borrowers too.
Thomas Franco, general secretary, All India Bank Officers Confederation, feels that if the banking system had risen to the challenges thrown up by the pandemic and provided adequate credit, people would not have used “these loan apps which are using dubious methods for recovery and also charge huge interest and service charges”. He adds, “Today, small credit for the common man is not available from the regular banking system, including public sector banks.”
Franco, however, concedes that given the high cost of giving small loans in view of inadequate manpower, banks generally favour giving larger loans to fewer entities.
The government push towards merger of banks to create large banking entities like SBI, which has 18,000 branches, along with inadequate recruitment after lakhs of employees availed of voluntary retirement scheme (VRS) offers, have left banks ill-equipped to meet the challenges of newer forms of money transactions. Linking of Aadhar and PAN with bank accounts has made it easy for the loan apps by Fintechs to access customers, says Franco.
S. Nagarajan, general secretary, All India Bank Officers’ Association, also admits that the banking system is inadequate to the meet the challenges due to the pandemic, not because of lack of intention but due to Covid protocols, in addition to problems created by the merger of banks. These mergers, he says, has “landed banks in a sorry mess” due to the erosion of one-to-one relations or focused customer services some banks took pride in. The added problem of incomplete technical integration of merged banks has led to customers not getting services like quick approval of loans they had come to expect, with bank officials being aware of their credit worthiness and track record.
Experts and bankers say Fintech firms serve a fast-growing market need that banks are unable to meet. For pandemic-hit companies, app-based loans were an easy way out of the crisis.
“During Covid lockdown, in the name of stimulation of the economy, government made many announcements without consultations with banks, which had to carry out their tasks without adequate manpower, movement restrictions and other precautions that prevented bankers from attending to their regular work, particularly if they were not able to work from their assigned branches,” says Nagarajan.
Strongly opposed to the merger of banks to create mega entities, AIBOA has been upset over the closure of around 7,500 branches after mergers, mostly in rural areas.
Public, private sector banks fail to give loans; fintech companies call shots
BJP wins DDC chairman’s post in Udhampur, Doda
Udhampur: The members of District Development Council (DDC) Udhampur Monday elected Chairperson and the vice chairperson of the District Council here at a meeting chaired by the District Panchayat Election Officer Piyush Singla.
The election process commenced with the filing of nomination for chairperson and vice chairperson by the DDC members.
After scrutiny of the nomination paper, BJP’s Lal Chand -the DDC member from Udhampur –II constituency was declared elected unopposed for the post of chairperson, while Juhi Manhas – DDC member 5- Khoon Constituency was declared Vice Chairperson by District Election Officer Udhampur.
In Udhampur DDC, BJP has won 11 seats, JKNPP 2 and independents one seat.
The DPEO congratulated the newly elected Chairperson and Vice Chairperson of District Udhampur.
The Chairperson and the Vice Chairperson of the District Development Council (DDC) Doda were elected today.
The BJP’s Dhananter Singh Kotwal with nine votes was elected as Chairperson while Sangeeta Rani Bhagat with nine votes was elected as the Vice Chairperson.
DEO Doda said that all 14 elected DDC members participated in the meeting.
Nadeem Sharief with five votes and Mehraj Din Malik with five votes were the runners-up in the Chairperson and Vice Chairperson elections respectively.
Lt Governor launches livelihood generation training program in BFSI Sector
Govt opening new employment avenues for youth in banking, financial services sector: Sinha
Calls upon pioneers in BFSI sector to train young talent pool of JK for skill development related to Financial Education
Jammu: Lieutenant Governor, Manoj Sinha Monday launched Livelihood Generation Training Program in Banking, Financial Services and Insurance (BFSI) Sector envisaged under the MoU signed between Bombay Stock Exchange (BSE) and Mission Youth, J&K.
Speaking on the occasion, the Lt Governor said that the UT Government is opening up new employment avenues for J&K’s youth in Banking & Financial Services sector.
He observed that the Banking, Financial Services and Insurance (BFSI) Sector has received a major boost due to consumers becoming more aware about various investment options. This has unleashed the vast potential of this sector for different sections of the society in J&K and elsewhere, he added.
Underscoring the significant opportunities being offered by the banking sector, the Lt Governor said that various reforms have created an investor friendly environment and transformed the Banking sector into a critical part of the economy. Our youth needs to develop skills in Banking and Financial Sector to capitalize on vast opportunities, the Lt Governor added.
Addressing the shortlisted candidates for the Mutual Fund Advisors’ Capsule course, the Lt Governor said that the short term training programme will help them to begin their journey as entrepreneurs, thereby creating wealth for themselves and opportunities for many more youth.
“This is a lifetime opportunity for your career. Like a qualified professional, you need to understand the fund’s purpose and specifics and know which fund matches the interest of the investor. Later on, the certificate required from the National Securities Markets Institute (NISM) will also help you in that”, observed the Lt Governor.
The Lt Governor lauded the enthusiasm of some of the candidates who walked miles in minus seven degree cold to appear in the interview.
He asked the training partners that after a week of training, they should also focus on apprenticeship for the youth of Jammu and Kashmir, so that the transition of Training-to-Jobs can be completed easily.
Terming the training program as a golden opportunity for youth to realize their dreams and be part of Sustainable Livelihood Campaign to achieve peace, prosperity and profits, the Lt Governor said, “Today is a historic day for the youth of Jammu and Kashmir. For the first time, a program of employment oriented training is being started in the Banking and Financial services sector, which itself is sufficient to reflect the multi-dimensional transformation happening in J&K”.
Our objective is to create a strong environment for professional and technical skill development in J&K by encouraging entrepreneurship with progress, expansion and fulfilling the aspirations of the youth, the Lt Governor maintained.
Calling upon the pioneers in BFSI sector, the Lt Governor said that “70% of the population of Jammu and Kashmir is below 35 years of age. Our very large talent pool is ready for skill development related to Financial Education. You train them and provide them job according to their skill level. My focus is clear that the entire process of skill development should culminate into Jobs, not just limited to training and I want it to be embodied from the beginning of this first batch”.
Sharing some major highlights of the budget of 2021, the Lt Governor said that reforms have been recommended in the financial sector, which is going to give a tremendous boost to Job opportunities. FDI limit in Insurance Sector has been increased from 49% to 74%, Bond Market will be promoted by creating a permanent Institutional Framework, Tax Incentives have been arranged for Investment Funds, Cooperative Banks have been given the facility to convert as Banking Company under RBI rules. Apart from this, according to the report of Economic Survey 2021, there has been a noticeable improvement in the banking sector and the NPA of Commercial Banks has come down from 8.2% to 7.5%.
The Lt Governor observed that the government will continue to run institutional and employment oriented training programs in the UT through ‘Mission Youth’ to empower the new generation of J&K and prepare them for the future.
The Training Program is aimed to re-skill and up-skill the youth for sustainable job opportunities through a multi-pronged strategy involving all necessary systematic interventions. J&K’s young workforce will play a key role in economic growth and transformation of the UT, the Lt Governor said.
In the changing global market after COVID-19, a special skill framework is now required to work with advanced technologies and properly exploit the diverse opportunities available under the ‘New Collar Job’. We have brought a new Industrial Scheme to revive the economy of Jammu and Kashmir. By bridging the gap between demand and supply of skilled workforce and strengthening the skill development ecosystem, we will provide employment opportunities to 80 percent of the youth in the next five years, concluded the Lt Governor.
DP Singh, Chief Business Officer, SBI Mutual Fund delivered the welcome address and spoke on the huge potential and opportunities for youth to become wealth creators.
Ashishkumar Chauhan, MD & CEO, BSE Ltd. explained the process and details of the training program.
Ambarish Datta, MD & CEO, BSEI Ltd., during his Vote of Thanks informed that after seeing a tweet by the Lt Governor on Mission Youth, SBI Mutual Fund decided to come on board for the training program.
RS passes bill to include JK in UT cadre for bureaucracy
Development in J&K progressing at fast pace: MoS Home
New Delhi: The Rajya Sabha on Monday passed Jammu and Kashmir Reorganisation (Amendment) Bill, 2021 which seeks to replace an ordinance on merging the cadre of J&K with the UT cadre for administration.
After Article 370 was read down, the State of Jammu and Kashmir was bifurcated into two Union Territories. As per cadre rules for Indian Administrative Services, Indian Police Services and Indian Forest Services (All India Services) Union Territories fall under AGMUT cadre (Arunachal Pradesh, Goa, Mizoram and UTs).
To this effect, President Ram Nath Kovind had promulgated the Ordinance last month.
Initiating the debate, Leader of Opposition (LoP) Ghulam Nabi Azad questioned the move saying the bill shows the government’s intentions to keep Jammu and Kashmir as Union Territory.
He said the government’s repeated assurance of bringing the status of J&K back to “State”.
Criticising the government’s move, he alleged that over seven thousand industries have shut in J&K since the abrogation.
The former chief minister urged the government to restore the “state” status and hold Assembly polls.
Replying to the debate, Minister of State for Home G Kishan Reddy claimed development in J&K is progressing at a fast pace level.
Reddy mentioned about Block Development Council polls conducted last year and stated that for the first time polling was peaceful with almost 98 per cent voting.
He stated that Kashmir Valley will be connected by railways by 2022.
The Minister of State also mentioned Chenab bridge, the world’s highest bridge and elevated light railway system, which are to be completed in the next four years.
Bharatiya Janata Party member Samsher Singh Manhas said J&K now has three All India Institutes of Medical Sciences (AIIMS) and new campuses of Indian Institute of Technology (IIT) and Indian Institute of Management (IIM) are coming to the new UT.
Aam Aadmi Party Sushil Kumar Gupta (AAP) asked the distribution of officers across the all UTs while Manoj Jha of Rashtriya Janata Dal questioned whether the re-organisation is permanent or temporary.
He also raised the case of two PhD students of Bihar who are still waiting to join their college in J&K.
Questioning the restoration of normalcy, he asked why Members of Parliaments were not allowed to visit the Valley.
People Democratic Party’s Mohammad Mir Fayaz questioned if normalcy has been restored as per the government then why there is no bill of restoring the status of “State”.
A Navneethakrishnan of AIADMK supported the government and stated that keeping geographical locations in mind, it is better if J&K is under the direct rule of the Centre.
Ashok Siddharth of Bahujan Samaj Party supported the bill saying everyone wants to visit the valley but no one wants to work there.
But, he raised an objection that the bill might affect the local officers in promotions and needed to be corrected.
Centre plans to keep J&K UT permanently: Azad
Srinagar: The former chief minister of Jammu and Kashmir and Leader of Opposition in Rajya Sabha, Ghulam Nabi Azad Monday said that the merging of UT cadre with AGMUT indicates central government’s plan to keep it as UT permanently and there is need to restore statehood as no industry post bifurcation has come up.
Azad was addressing the house for the very last time as his tenure ended today. He was talking in response to the 2021 reorganization (Amendment) bill introduced in parliament last week by MoS Home GK Reddy.
Azad said Jammu and Kashmir in the past three years remained under Governor rule and now Lieutenant Governor ever since it became a UT and J&K cadre was operational. “When the J&K cadre was already operational what is the need to merge this if the government want to restore the statehood in the next few months. It indicates that GOI wants J&K to be a UT permanently,” he said.
He said at the time of abrogation of Article- 370, some reasons were given including no development, lack of industries, and land to the business class who don’t visit the region but with the UT development will take place.
The senior Congress leader said that the industries don’t go to Kashmir given the winter for six months and being a remote place. “Seven out of 10 districts in Jammu have no industry. No new industry is coming up while the 60 percent of the industries are closed and the development is on TV only,” he said.
He said that Roads are dilapidated. “National highway is in worse condition remaining shut for four months (in a year). There is an increase in ceasefire violation during which people suffer huge losses,” he said.
The former chief minister said that the employed have become unemployed while the unemployment graph has increased but if the elected government was there, situation would have been better. “It is important to restore the statehood of Jammu and Kashmir”, he said.
He said that nothing was left in Article-370 other than no job for the outsider and no one could land in Jammu and Kashmir and these provisions existed since Maharaja Hari Singh back in 1925, years before the Indian independence. “In Jammu and Kashmir, there are only mountains and forests only having very little land”, he said.
He further said that due to the uncertainty, no industry has come up in J&K other than the small scale that results in unemployment. “Give statehood to J&K. Conduct elections. J&K is a border area where tension looms large”, Azad said.
“Don’t make Kashmir guinea pig for experiments”, he said and ended his speech with an Urdu verse hoping and hoped that in the next budget session statehood bill for Jammu and Kashmir is introduced”—(KNO)
46 killed in 5133 ceasefire violations by Pak in 2020: Rajnath
New Delhi: Pakistan resorted to 5,133 incidents of ceasefire violations last year in which 46 people were killed, Defence Minister Rajnath Singh said on Monday.
In replying to a question in Rajya Sabha, the defence minister said there were 5133 ceasefire violations by Pakistani troops in J&K in 2020.
“There have been a total 46 fatal casualties in 2020. This year 1 fatal casualty of
Army personnel has been reported till 01 February,” he said.
The defence minister said “appropriate retaliation” to the ceasefire violations, as required, has been carried out by the forces.
“In addition, all violations of ceasefire are taken up with Pakistan authorities at the appropriate level through the established mechanism of hotlines, flag meeting as well as weekly talks between the director generals of military operations of the two countries,” Singh said.
“Diplomatically, India has repeatedly emphasised at the highest level, the need for Pakistan to uphold the sanctity of the Line of Control and the International Border as its obligations emanating from the understanding in vogue,” he said.
The defence minister said 299 incidents of ceasefire violations were reported till January 28 this year.
According to official data, the number of ceasefire violations by Pakistan in 2019 was 3,233.
Stone-pelting, infiltration attempts in JK reduced in 2020: MHA
Srinagar: The Union Minister of State Home Affairs G Kishan Reddy on Monday said the number of stone-pelting incidents in Jammu and Kashmir have reduced drastically in 2020 in comparison to 2019.
Speaking in the Rajya Sabha, Reddy said 27 people were injured in ceasefire violations by Pakistan in 2019 while the number came down to 71 in 2020.
He said the infiltration attempts also dropped to 99 in 2020 from 216 in 2019.
“A total of 157 militants were killed in 2019 and 221 in 2020. There were 594 cases of militant violence in 2019, which reduced to 244 in 2020. There were 327 stone pelting incidents in 2020 as compared to 2,009 such incidents in 2019,” he said.
“127 people were injured in ceasefire violations by Pakistan in 2019, in 2020 only 71 people were injured. In 2019 there were 216 attempts of infiltration and in 2020 there were 99 such attempts,” the Union Minister added.
On August 5, 2019, centre scrapped J&K’s special status and bifurcated the erstwhile J&K state into two Union Territories – Jammu and Kashmir (with legislature) and Ladakh (without legislature). (KINS)
Areeb of DPS Srinagar wins top performer India 2021 award
DPS chairman congratulates Areeb
Srinagar: Areeb Imran of DPS Srinagar has received the award for top performer India 2021.
As part of the new College Board India Global Alliance initiative, the award recognizes students in India who earned a total SAT score of more than 1300.
Areeb scored 1540 out of 1600 in his first attempt.
Based on his performance, he has been offered full scholarships by best Universities in India and abroad.
Delhi Public School is the first school in Jammu and Kashmir, which offers free SAT guidance to all the students.
Commenting on student’s achievement, Chairman DPS Srinagar, Vijay Dhar congratulated Areeb.
“It is a matter of great pride for us. Conducting SAT examinations has opened doors of opportunities for J&K children and will help them to excel in every field and our young students are making a mark for themselves in the world,” he said.
Fighting Covid pandemic victory of nation, not Govt: PM
New Delhi: Coming down heavily on opposition parties for criticising the Centre’s handling of the COVID-19 pandemic, Prime Minister Narendra Modi on Monday said in Rajya Sabha that the credit for fighting the Covid-19 pandemic goes to “citizens and not the government.”
“India has come up with more than one vaccine for the novel coronavirus within a year and the country proved wrong all those who raised apprehensions,” Mr Modi said.
While hitting out at opposition parties, the PM said criticism is fine but don’t indulge in acts that can break confidence of the country, adding that corona warriors should be respected.
“India has seen days when there was a large threat of polio, smallpox. Nobody knew whether the country will get a vaccine or how many people will get it. From those days, we’re now here, when our nation is making vaccines for world. This increases our self-confidence,” Modi said, adding that the country was once called a “third-world” nation.
“India emerged as pharmacy of world during pandemic, delivered medicines to 150 countries,” he added.
Hailing the corona fight of the country, he said, today, world appreciates India’s efforts in saving humanity; credit goes to India and we should be proud of it.”
“The COVID-19 period has added new strength to our federal structure and the spirit of cooperative federalism. Worldwide, people have accepted that India played a crucial role in battling the pandemic,” he added.
Covid-19: 43 test positive in JK
Srinagar: Jammu and Kashmir on Monday reported 43 fresh cases of Covid-19, taking the tally of total positive cases to 124,952, however, no death was reported in the last 24 hours.
Of the exact number of 124,952 cases, 73,295 are from Kashmir and 51,657 from Jammu division.
Officials said among 43 new cases, 36 belong to Kashmir division while as 07 are from Jammu division, adding that the total number of positive cases in Kashmir division have reached to 73,295 including 71,589 recoveries and 1,222 deaths while as total number of positive cases in Jammu division have reached to 51,657 including 50,826 recoveries and 722 deaths.
They said the total number of active cases in Jammu and Kashmir are 593 including 484 from Kashmir division and 109 from Jammu division.
With 80 more recoveries, the tally of total recoveries in Jammu and Kashmir has reached 122,415 which is 97.97 percent of the total cases.
“Cases tested positive in J&K include 20 from Srinagar, 01 from Baramulla, 02 from Budgam, 05 from Pulwama, 00 from Kupwara, 04 from Anantnag, 00 from Bandipora, 03 from Ganderbal, 01 from Kulgam and 02 from Shopian in Kashmir division while as 07 from Jammu division include 07 from Jammu, 00 from Udhampur, 00 from Rajouri, 00 from Doda, 00 from Kathua, 00 from Samba, 00 from Kishtwar, 00 from Poonch, 00 from Ramban and 00 from Reasi,” officials said.
As per officials figures, 26,377 positive cases including 458 deaths and 25,714 recoveries are from Srinagar, 8,131 including 174 deaths and 7,939 recoveries are from Baramulla, 7,796 including 7,645 recoveries and 118 deaths are from Budgam, 5,761 including 5,619 recoveries and 88 deaths are from Pulwama, 5,666 including 96 deaths and 5,556 recoveries are from Kupwara, 4,940 including 4,798 recoveries and 86 deaths are from Anantnag, 4,698 cases including 4,618 and 61 deaths are from Bandipora, 4,647 including 4,547 recoveries and 47 deaths are from Ganderbal, 2,702 including 2,629 recoveries and 54 deaths are from Kulgam and 2,577 including 2,524 recoveries and 40 deaths are from Shopian.
In Jammu division, 25,029 including 24,617 recoveries and 371 deaths are from Jammu district, 4,219 including 4,143 recoveries and 57 deaths are from Udhampur, 3,869 including 3,813 recoveries and 55 deaths are from Rajouri, 3,433 including 3,364 recoveries and 64 deaths are from Doda, 3,256 including 3,200 recoveries and 53 deaths are from Kathua, 2,832 including 2,785 recoveries and 40 deaths are from Samba, 2,732 including 2,709 recoveries and 22 deaths are from Kishtwar, 2,507 including 2,462 recoveries and 24 deaths are from Poonch, 2,135 including 2,110 recoveries and 21 deaths are from Ramban and 1,645 including 1,623 recoveries and 15 deaths are from Reasi.
As per the daily information bulletin 1,176,908 persons in Jammu and Kashmir are under observation while 33,819 persons have been kept under home quarantine besides that 593 persons are in isolation.
