Historical Background of Banking system

 

Historical Background of Banking System

 

The banking system is considered as the backbone of a nation’s economy. Modern banking in India originated in the last decade of the 18^th century. We have come up with the history of banking, before and after independence.

History of Banking in India in Brief

Phases of Indian Banking System

The advancement in the Indian banking system is classified into 3 distinct phases:

1.    The Pre-Independence Phase i.e. before 1947

2.    Second Phase from 1947 to 1991

3.    Third Phase 1991 and beyond

The Pre-Independence Phase of Banking i.e. before 1947

The first bank of India was the “Bank of Hindustan”, established in 1770 and located in the then Indian capital, Calcutta. However, this bank failed to work and ceased operations in 1832.

 

During the Pre Independence period over 600 banks had been registered in the country, but only a few managed to survive.

 

Following the path of Bank of Hindustan, various other banks were established in India. They were:

 

The General Bank of India (1786-1791)

Oudh Commercial Bank (1881-1958)

Bank of Bengal (1809)     

Bank of Bombay (1840)   

Bank of Madras (1843)  

During the British rule in India, The East India Company had established three banks: Bank of Bengal, Bank of Bombay and Bank of Madras and called them the Presidential Banks. These three banks were later merged into one single bank in 1921, which was called the “Imperial Bank of India.”

The Imperial Bank of India was later nationalised in 1955 and was named The State Bank of India, which is currently the largest Public sector Bank.

Post-Independence Period (1947-1991)

During the post-independence period, Indian banks saw a lot of changes.

Many banks in India were handled by private individuals, creating a problem for the government to handle and regulate the banks.

The government nationalised many banks under the Bank Regulation Act 1949.

The Reserve Bank of India was nationalised in 1949.

The Imperial Bank was nationalised in 1955.

There were a total of 20 banks with a lot of wealth that were nationalised in this phase.

Seven subsidiaries of the SBI banks were also nationalised in 1959. These banks were merged with the State Bank of India. 2017. The State Bank of Saurashtra and Indore merged in 2008 and 2010.

The government established the Regional Rural Banks in 1975 for rural sector people as they were primarily dependent on money lenders to get loans and other banking services. They were exploited

Evolution of Banking in India (1947-1991)

Allahabad Bank              

Bank of India                         

Bank of Baroda

Bank of Maharashtra        

Central Bank of India

Canara Bank        

Dena Bank

Indian Overseas Bank

Indian Bank

Punjab National Bank                        

Syndicate Bank            

Union Bank of India

United Bank

UCO Bank

Andhra Bank

Corporation Bank

New Bank of India

Oriental Bank of Commerce

Punjab & Sind Bank

Vijaya Bank

State Bank of Patiala

State Bank of Hyderabad

State Bank of Bikaner & Jaipur

State Bank of Mysore

State Bank of Travancore

State Bank of Saurashtra

State Bank of Indore

In 1975, the Government of India recognised that several groups were financially excluded. Between 1982 and 1990, it created banking institutions with specialised functions in line with the evolution of financial services in India.

Meanwhile, on the recommendation of the Narasimham Committee, Regional Rural Banks (RRBs) were formed on Oct 2, 1975. The objective behind the formation of RRBs was to serve the large unserved population of rural areas and promoting financial inclusion.

With a view to meet the specific requirement from the different sector (i.e. agriculture, housing, foreign trade, industry) some apex level banking institutions were also set up likeLa) NABARD (est. 1982)

NABARD (1982) – to support agricultural activities

EXIM (1982) – to promote export and import

National Housing Board – to finance housing projects

SIDBI –  to fund small-scale industries

Liberalisation Period (1991-Till Date)

Once the banks were established in the country, regular monitoring and regulations need to be followed to continue the profits provided by the banking sector. The last phase or the ongoing phase of the banking sector development plays a hugely significant role.

 

To provide stability and profitability to the Nationalised Public sector Banks, the Government decided to set up a committee under the leadership of Shri. M Narasimham to manage the various reforms in the Indian banking industry.

 

The biggest developm’nt was the introduction of Private sector banks in India. RBI gave license to 10 Private sector banks to establish themselves in the country. These banks included:

 

Global Trust Bank

ICICI Bank

HDFC Bank

Axis Bank

Bank of Punjab

IndusInd Bank

Centurion Bank

IDBI Bank

Times Bank

Development Credit Bank

The other measures taken include:

 

Setting up of branches of the various Foreign Banks in India

No more nationalisation of Banks could be done

The committee announced that RBI and Government would treat both public and private sector banks equally

Any Foreign Bank could start joint ventures with Indian Banks

Payments banks were introduced with the development in the field of banking and technology

Small Finance Banks were allowed to set their branches across India

A major part of Indian banking moved online with internet banking and apps available for fund transfer

Thus, the history of banking in India shows that with time and the needs of people, major developments have been brought about in the banking sector with an aim to prosper it.

 

 

Prostitution is legal in India

 

Prostitution is derived from the Latin word prostituere, which means to expose publicly. Prostitution is defined as providing sexual favours in exchange for money.The Supreme Court of India recently recognised sex work as a profession and issued a slew of directives to protect sex workers' dignity. This order was not only historic, but it was also necessary because sex work is not uncommon in India. It has historically been a popular occupation.

In 2022, a three-judge bench of the Supreme Court issued a landmark decision that recognised sex work as a profession and stated that sex workers are entitled to dignity and equal protection under the law. The Supreme Court clarified that 'voluntary' sex work was not prohibited.

According to the Supreme Court bench of Justices L Nageswara Rao, BR Gavai, and AS Bopanna, sex workers and their children are protected by Article 21 of the Indian Constitution, just like any other profession or person.

Sources

www.legal service.com

Https.theprint.in

Doctrine of Vicarious Liability

Hello readers

Vicarious liability or master and servant relationship 

 Before going to know about vicarious liability, we should know what is liability?

Liability is nothing but violation of law or legal norms which may be in civil or criminal nature and Therefore it can give rises to civil liability and criminal liability.

Civil liability are civil wrongs or private infringement of rights and whoever breaches civil wrongs then they are liable under remedial liability like damages and compensation whereas criminal liability are public wrongs committed against state and whoever breaches criminal wrongs then they are liability for penal liability such as punishment or fine.

Now come back to vicarious liability 

Generally a person is liable for his own wrongful or unlawful acts and that person is held liable for committing such offences. In certain cases, however, vicarious liability, deals with the cases where one person is liable for the acts of others.

The common example of vicarious liability are

1. Master and servant relationship 

2. Principal and agent 

3.partners relationship 

Master and servant relationship 

A master is the one who employs a servant to do certain acts under his direction and control and if that servant breaches law or breaks law then master is liable but not the servant.

To constitute the liability of the master, then following essential ingredients should be fulfilled

1. The wrong committed by servant 

2. The wrong committed by the servant during the course of employment.

Example:if a master driver hits a car and injured someone badly during the course of employment, then master is liable but not servant.

Therefore the whole doctrine of vicarious liability is based on 2 maxims i.e

1. Qui facit per alium facit per se:

It means if a person does an act through another shall be deemed to do an act by himself.

2.Respondant superior:

It means that the superior or master should be held responsible for the acts done by others or servant..

Inter state council

 The Inter-State Council is a non-permanent constitutional body established by presidential order in accordance with Article 263 of the Indian Constitution. On the proposal of the Sarkaria Commission, the body was established by presidential order dated 28 May 1990. The Council was set up to examine or investigate policies, topics of common interest, and to resolve the disputes among states.
The Inter-State Council is established under Article 263 of the Indian constitution. This will help the Center and States work together more effectively. It is the most dynamic platform for discussing policy, strengthening Centre-State relations, and serving as a bridge between the Center and the States' trust deficits. 
Article 263 states: If the President deems it necessary in the public interest to do so by forming a Council to: Investigate and advise on potential disputes between States; Or to inquire into and discuss matters of common interest to some or all States or Union to one or more States; or to make recommendations on any such issue, particularly recommendations for better coordination.

Definition

The Inter-State Council is a recommendation body that studies and discusses matters of common interest to one or more states in order to improve policy and action coordination on those subjects.

Aims 

Decentralization of power to the states to the greatest extent practicable. 
More financial resources will be transferred to the states. 
Devolution arrangements that allow states to meet their obligations. 
Loan advances to governments should be referred to as "the productive principle.

Composition

The Inter-State Council composes of the following members:
Prime Minister, Chairman.
Chief Ministers of all states.
Chief Ministers of the union territories having legislative assemblies.
Administrators of the union territories not having legislative assemblies.
6 Union Cabinet Ministers, including Home Minister, to be nominated by the Prime Minister.
Governors of the states being administered under President's rule.
Standing Committee
Home Minister, Chairman
5 Union Cabinet Ministers
9 Chief Ministers.
The nation can progress only if the Union and State Governments work hand in hand. There are many challenges to maintain a federation. For a soothing functioning of the system, it is necessary to conduct periodic debates and discussions.

Functions of inter state council 

Inquiring into and advising on potential inter-state disputes: 
Investigating and debating issues that are of common concern to the states or the union. 
Making suggestions on any such subject for better policy and action coordination on that subject.
Powers
The powers of the Interstate Council are outlined in Article 263 of the Indian Constitution: 
Interest and advise in the event of a potential state-to-state conflict: 
To investigate and debate issues of common concern to the states of the Union. 
Make suggestions on any topic to better coordinate policy and action.
The Inter-State Council serves as a vehicle for collaboration, coordination, and the development of common policies. The interstate council will convene three times a year, according to the proposal. However, it has only convened 11 times in 26 years. After a ten-year hiatus, the most recent gathering was held in Delhi in July 2016.

Criminal Law

                      DRUG ABUSE AND CRIME

                                                                        

          Pixabay.com              

Drug addiction has developed into an international epidemic .Drugs are in essence, addictive. its addiction is seen as a severe disease of the brain. Despite its adverse effects, drug use is known to be compulsive. Drug addiction is characterized as a condition in which the desire to use drugs cannot be regulated by an individual. A long term effect on life can be induced by opioid addiction. Acute Symptoms may occur, such as shaking, exhaustion , anxiety, depression ,insomnia, headache ,sweating, chills, behavioral changes, poor balance problems, nausea etc.

Risk Factors for Drugs Abuse

1. Genetics:

if you have someone in your family who has in the past been addicted to drugs or alcohol, it does not indicate that you would also inevitably become addicted. Nevertheless, Since an alcoholic was your family member, if you want to use drugs, you would have a greater tendency to become addicted.

2. Environment:

Your risk of addiction can also be increased by environmental factors. Lack of parental involvement may lead to greater risk taking or experimenting with alcohol and other substances for kids and teens. In order to cope with their feelings, young people who encounter violence or neglect from parents may use drugs or alcohol.

3. Mental Disorder:

For a range of reasons, people with a variety of mental disorders are more likely to use and misuse drugs .Drugs may be able to give them a feeling of euphoria and a sense of well being.

Classifications of Drugs

The main categories are: 

1 Depressants 

2 Opiates and Opiodes

3 Hallucinogens

4 Marijuana

5 Cocaine

Narcotic Drugs Law

                                                        

                                                                Pixabay.com

The Narcotic Drugs and Psychotropic Substances Act, 1985, commonly known as NDPS Act .The NDPS act came into force on 14th November 1985.Under the NDPS Act, it is illegal for a person to produce, manufacture, Cultivation, Possession, Transport, Consumption of any Narcotic Drugs.

Under the Provisions of the Act, The Narcotics Control Bureau was set up with effect from March 1986. The Main Aim of the Act was to Fulfill Treaty obligations under single Convention on Narcotics Drugs, United Nations Conventions against illicit Traffic in Narcotics Drugs and Psychotropic substances. The Act has been amended 3 times (1988, 2001, 2014 ).

The 2014 Amendment acknowledge as an essential responsibility of the Government for pain relief. It produces a class of Medicines called Essential Narcotics Drugs(END).Control for END Legislation has shifted from state Government to Central Government, so that the entire Nation can now have a Standardized Law Covering these Medicines required for pain relief.

The Primary Function of Narcotics Control Bureau is to fight Drug Trafficking on All India Level. Apart from that, it will also monitors India 's Frontiers to track down points where Smuggling activities take place.

Punishment

The NDPS Act considers drug offences to be  very serious and extreme in nature, So  therefore sentences are very strict for drug abuse. Offences are Cognizable and non bailable under this act.

Drugs and Bollywood

    Kangana Ranaut recently said that 99% of Bollywood celebrities indulge in drugs. "On September2, she also took to twitter and wrote, " I ask Ranveer singh, Ranbir Kapoor, Ayan Mukerji, Vicky Kaushal to give their blood sample for drug testing, there are rumors that they are addicted to cocaine, I want them to smash these rumors his young men will inspire millions if they present clean cocaine addicts".

Sources

1. en.m.wikipedia.com                                                                                                              2.The Narcotic Drugs and Psychotropic substances Act,1985        

    

COMPANY LAW

PROCEDURE FOR INCORPORATING A COMPANY 

                               sources: Pixabay.com                                                    

A company's Memorandum of Association or MOA specifies the company's constitution and the extent of powers. The MOA is, in simple words, the base on which the business is constructed. We will look at the laws and regulations that regulate the MOA in this article. Often, we can understand the contents of a company's Memorandum of Association.

 Section 4 companies act 2013 deals with Fundamental Clauses of MOA, which includes

1. Name clause

2. Registered office clause

3. Objects clause

4. Liability clause

5. Capital clause

6. Association clause

1. Name Clause: The first clause of this chapter deals with suggesting a company's name. A corporation is an autonomous entity, an artificial person, with the right to sue and be punished, and for all of this, they need a name to be carried in the course of business, the name would be the representation of the company concerned.

2. Registered Office Clause: An address is a way to reach someone similarly. A company must also have a registered office where it is possible to send all legal documents and notices. The company must mention the name of the state where it establishes its business and reestablishes its business within 30 days of incorporation.

3.Object Clause: The goal for which the business is founded must be referred to in the association memorandum It is one of the essential clauses and should be carefully written to list all forms of companies that might be involved in the future by the corporation.

4. Liability Clause: The Corporation must state the course of liability, whether limited or unlimited. The limited shares of the company's MOA must declare that the liability of the company's members is limited.

5. Capital Clause: This is only true for companies which have share capital. The amount of approved capital divided into shares in fixed quantities must be specified by these companies. In addition, the names of each member and the number of shares against their names must be specified.

6. Association Clause: The association clause confirms the willingness of shareholders bound by the MOA to associate and form a company. You need seven members to sign a MOA for a public corporation and not less than two individuals for a private company's MOA. In the presence of a witness, who may also add his signature, you must perform the signing.

TYPE OF INSURANCE

 

TYPES OF INSURANCE

1. Life Insurance: Life insurance is a policy which, in the event of death or disability, provides financial compensation. Upon retirement or a certain period of time, some life insurance plans even provide financial compensation. Life insurance, therefore, lets you protect the financial stability of your family even in your absence. Life insurance is distinct from other insurance here. The life of a human being is the subject of insurance. At the time of death or at the expiry of a certain term, the insurer will pay the fixed insurance amount. Life insurance currently has full scope because life is a person's most precious property. Each and every individual needs insurance and offers protection.

2. General Insurance: A general insurance policy is an arrangement which provides financial coverage for any loss other than death. Apart from life, it insures everything. General insurance compensates you for financial damages due to home, vehicle, bike, fitness, travel, etc.-related liabilities. The insurance provider agrees to pay you an amount guaranteed to cover your car damage, medical services to cure health problems or even financial problems during travel.

3. Property Insurance: No company should take the opportunity to leave its premises, permanent fixtures, equipment, and inventory, and so on unprotected. Different property policies require harm or injury to the property of a business or to the property of those stored on the premises.

4. Marine Insurance: The concept of marine insurance refers to insurance for products dispatched to the country of destination from the country of origin. The term is derived from the fact that, historically, products intended for foreign trade were transported by sea. Despite what the name means, maritime insurance is available to all forms of transportation of goods.

5. Health Insurance: For costly treatments, health insurance is obtained to cover medical expenses. A variety of illnesses and conditions are covered by various forms of health insurance plans. As well as policies for individual illnesses, you can buy a standardized health insurance policy. Generally, the premium charged by a health care policy covers the cost of surgery, hospitalization and medication.

6. Insurance for Cars: Perhaps the most common form of insurance is car insurance. Automotive policies are necessary in all states in at least minimum quantities. The standard car policy requires responsibility in the event of a case for personal injuries and collateral harm, medical payments, damage to or loss of the car itself, and attorneys' fees.

7. Insurance for Travel: The priority for frequent travelers could be travel insurance. But, for all, it might not be appropriate. Depending on the specific needs of each person, the need for insurance can differ. For instance, if you plan a domestic trip and your comprehensive health insurance plan protects you for any medical emergencies around the country, travel plans might not only be required for you.

7. Senior Citizen Health Care: All citizens over 60 years of age are covered by these forms of insurance policies.

8. Health Insurance Group: Provided by the employer to the employee.

9. Maternal Health Insurance: Covers medical costs for prenatal, post-natal, and delivery stage, providing protection to both the mother and the newborn.