Skip to main content

Land utilisation

  LAND UTILIZATION  Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of physical and
Post a Comment

MEANING OF COMMERCIAL BANKS

MEANING OF COMMERCIAL BANKS
Commercial banks are those banks which perform all kinds of banking business and generally finance trade and commerce are called commercial banks . These banks normally advance short term loans to the businessmen and traders .Lately , the commercial banks have extended their areas of operation to medium term and long term finance . Majority of commercial banks are in the public sector.

FUNCTIONS of commercial banks
a)Accepting deposits : Banks accept deposits from those who can save but cannot profitably utilise these savings themselves. People consider it more deposit their Savings in a bank because of doing so they,on the one hand earns interest and on the other hand avoid the danger of theft .

Different types of accounts 
-Fixed deposit account
-Current deposit account
-Saving deposit account
-Recurring deposit account
-Home safe account

b)Advancing of loans :Banks advances loans to the public. After keeping certain cash reserves,the banks lend their deposits to needy borrowers.

Types of loans 
-Money at call are very short period loans and can be called by bank at very short notice (14days).
-Cash credit is given to borrowers against his current assets such as bonds ,shares etc.Interest is charged only on amount withdrawn.
-Overdraft facilities are provided to its customers though which they are allowed to withdraw more than their deposits.Interest is charged from the customers.
-Discounting of bills of exchange means the debtor accepts the bill drawn upon him by the creditor and agrees to pay amount mentioned on maturity. When these matures,the Bank gets its payment.
-Term loans starts advancing medium term and long term loans . Maturity period is more than one year.

c)Credit creation : Credit creation is natural outcome of process of advancing loan as adopted by the banks. Whenever a bank grants a loan ,it creates an equal amount of Bank deposit .This is called credit creation which results in net increase in money stock .

d)Cheque system : Bank also renders useful medium of exchange in the form of cheques. Through cheque ,depositor directs the bankers to make payment to payee. It is most developed credit instrument in money market. 

e)  Agency functions : The following are the agency functions performed by the commercial banks behalf of their customers :-

- Banks help their customers in transferring funds from one place to another through cheques,drafts etc.
-Banks collect and pay various credit instrument like cheques ,bills of exchange etc.
- Banks execute standing instruction of their customers for making various periodic payments by paying subscription,rents,insurances etc.
- Banks undertake purchase and sale of various securities like shares,stocks,bonds etc 
- Banks collect dividends,interest on shares and debentures.
- Bank may employ income tax experts to prepare income tax returns and help to get refund of income tax.
- Banks preserve wills of customers and execute them after their death.
- Banks acts as representative and get passports, traveller's tickets ,book vehicles etc.

f) General utility functions : The general utility functions of commercial banks are given as follows :-

-Banks provide locker facility to their customers where they can keep their valuables.
- Bank issues traveller's cheques to help customers to travel without feal of theft.
-Banks issues letters of credit certifying their creditworthiness which is important in foreign trade .
-Banks collect statistics giving important information relating to industry,trade and commerce ,money and banking.
-Banks underwrite the securities issued by government,public or private bodies. 
-Some banks issue cheques of various denominations to be used on auspicious occasion.
-Banks may be referred for seeking information regarding financial position,business reputation.
-Banks also deal in business of foreign currencies.They nay finance foreign trade by discounting foreign exchange bills.

Comments

Post a Comment

Popular posts from this blog

MAJOR ISSUES IN INDIAN ECONOMY

Major issue facing Indian economy Introduction - After independence, India made progess in political, economic, social fields but many problems like poverty, unemployment and inflation are yet to be solved. Meaning - Economy means a money framework in which all economic activities of a country are explained. Indian economy is a mix economy whereby both private and public sector plays its role. The root cause of the 3 problems namely poverty , unemployment and inflation is population explosion that is increasing at very fast speed. These three problems are major challenges for Indian economy. Poverty Poverty has attracted attention of economists, sociologists and educationists . It exists when one is not able to get the basic necessities of life - food ,clothes and shelter. It is condition of lower standard of living, inability of an individual to get minimum requirement of food , education and health. It further indicates 3 direction  a) Economic inequality b) Economic dependence c) E
1 comment
Read more

Agricultural productivity

AGRICULTURAL PRODUCTIVITY   Agricultural Productivity of both land and labour is low in India. There are variations in productivity within the country and it is also low if compared to other countries of the world . It also provides that what measures should be adopted to improve the productivity of food and non-food crops and what measures are being adopted by the govt. to improve the productivity. CAUSES OF LOW PRODUCTIVITY IN AGRICULTURE   Millions of people still suffer from malnutrition and under nutrition which leads to starvation. There is no single reason for low productivity in agriculture in India. The causes of low productivity are as follows : (A) General Causes 1.Excessive Pressure of population on land . The heavy pressure of population on land is caused by the limited growth of employment opportunities in the non-agricultural sector for rural people and rapid growth of rural population. In 2011, about 52 percent of the population were employed in the agriculture-sector.
Post a Comment
Read more

Minimum support price scheme

MINIMUM SUPPORT PRICE SCHEME The best way to support agriculture is to invest in agri -R&D,agricultural-extension systems and connect farmers to lucrative markets,domestic and external, by building efficient value chains.  Giving farmers their right to choose technologies and best market is fundamental to the functioning of agri-system.  Minimum support prices (MSP) need to be made as legal instrument.  [It means that no one is allowed to buy crop below its MSP. But if it is accepted, it will turn out to be anti-farmer. ] Reasons  •It ignores that prices are decided by demand and supply.  •In case of surplus, which happens during harvest, prices fall to clear market.  •If MSP is above market clearing price, no one from private sector will buy.  •In this case, govt. Has to buy the farmers's produce otherwise farmers will turn to be worse off.  The govt. Declare MSP for 23 crops where the procurement happens largely to rice and wheat.  Why MSP crops and why not other agri prod
Post a Comment
Read more