Issue : 37th
Volume : IV
Month & Year : August 2010
 
   
   
   
   
   
   
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Today, combating inflation is the key concern of the Indian economy. “The dominant concern that has shaped monetary policy stance in this review is inflation,” said Duvvuri Subbarao, RBI governor. RBI in a bid to bring down the inflation rate raised the repo rate by 25 basic points.
 
In the First Quarter Review of Monetary Policy 2010-11, the central bank increased repo rate from 5.5 per cent to 5.75 per cent. However, to everybody’s surprise, the cash reserve ratio (CRR) remains unchanged at 6 per cent.
 
 
 
Repo rate is the rate at which banks borrow from RBI. Reverse repo rate is the rate at which the central bank borrows money from banks and cash reserve ratio (reserve requirements) is a state bank regulation that sets the minimum reserve that each bank must hold to customer deposits and notes. It is usually in the form of fiat currency stored either in the bank vault or with central bank.
 
According to RBI’s policy review, the monetary actions aims to moderate inflation by reigning in demand pressures and inflationary expectations, maintain financial conditions conducive to sustaining growth, generate liquidity conditions consistent with more effective transmission of policy actions and reduce the volatility of short-term rates in a narrower corridor.
 
The present banking system is called a ‘fractional reserve banking system,’ as the banks are required to keep only a fraction of their deposit liabilities in the form of liquid cash with the central bank for ensuring safety and liquidity of deposits. The Cash Reserve Ratio (CRR) refers to this liquid cash that banks have to maintain with the Reserve Bank of India (RBI) as a certain percentage of their demand and time liabilities.
 
This reserve ratio is often used as a tool in the monetary policy, influencing the countries economy. Any fluctuation in this reserve ration causes liquidity problems for banks.
 
CRR was introduced in 1950, primarily as a measure to ensure safety and liquidity of bank deposits. However over the years it has become an important and effective tool for directly regulating the lending capacity of banks and controlling the money supply in the economy.
 
When the RBI feels that the money supply is increasing and causing an upward pressure on inflation, the RBI has the option of increasing the CRR thereby reducing the deposits available with banks to make loans and hence reducing the money supply and inflation.
 
Currently CRR is marked at 6 per cent. Earlier there was a floor of 3 per cent and ceiling of 20 percent on the CRR that could be imposed by the RBI. However since 2006 there is no minimum or maximum level of CRR that needs to be fixed by the central bank of India.
 
General Features
 
 
What’s behind the names?
 
Have you ever thought how all the big brands got their names? All the big brands have a history and story behind its name. Let’s look at some of the well known brands…
 
Adidas
Adidas, the well known brand for athletic shoes got its name from its founder – Adolf Dassler. ‘Adi’ from Adolf and ‘Das’ from Dassler were joined to coin the name, Adidas.
 
Adolf Dassler lived in Herzogenaurach, a small town in Germany. After returning from World War I, he and his brother, Rudolph Dassler started making their own sports shoes. Their business came to be known as Gebrüder Dassler Schuhfabrik (Dassler Brothers Shoe Factory). The two brothers started manufacturing shoes at their mother’s laundry. Because of unreliable electricity supply, they often restored to pedal power from a stationary bicycle to run their equipments.
 
In due course of time, the brothers parted ways. Adolf built up Adidas and Rudolph built PUMAS.
 
Though there is a general belief that Adidas is the acronym for ‘Athletes Die Ignoble Deaths After Steroids’ its authenticity is often questioned.
 
Reebok
 
Reebok is a subsidiary of Adidas, the giant manufacturer of athletic footware, apparels and accessories. Reebok derives its name from rhebok. Rhebok is a type of African antelope or gazelle. Having discovered the name in a South African dictionary, Mercury Sports (founded by Joe and Jeff Foster in 1960) renamed it as Reebok. The word ‘Reebok’ means roebuck, The Afrikaan word for roe male deer.
 
Hewlett Packard:
 
Bill Hewlett and Dave Packard, the joint founders of Hewlett Packard tossed a coin to decide whether their company would be called Hewlett-Packard or Packard-Hewlett. Commonly known as HP, it is an American multinational company, founded in 1939.
 
The company originated in a garage in Palo Alto, California during a fellowship both of them had with a part professor, Frederick Terman at Stanford. Terman was considered a mentor to them in forming the company. Packard and Hewlett established Hewlett-Packard in Packard's garage with an initial capital investment of US $538.
 
Sony
 
Unlike the Japanese companies that are often named after their founders, Akio Morita, the founder of Sony decided to give customer friendly name – a name that would sound familiar to the American consumers. Thus he derived a name from the Latin word, Sonus (meaning sound) and thus the name Sony.
 
Tokyo Teletech was another possible name that Morita thought of, but he later learned that there was already an American company using Teletech as a brand name.
 
In the 1950s the word ‘sonny boy’ was used for smart, presentable young men, which Morita considered himself to be. Thus he was happy to name his company, Sony.
 
Google
 
Larry Page and Sergey Brin, the founders of Google wanted to come up with a billion dollar name. They decided to name their after an enormously big number called Googol – which is the number followed by hundred zeros. With a great product and a pretty smart name, they went out in search of investors. One of the first investor they met loved the product and the name so much that he decided to write a check on the spot. However, he misspelled it. Instead of Googol, he penned down the name Google.
 
Apple
 
It is said that Steve Jobs was late in filing for the name and trademark. There are many versions of the story behind the name Apple. However, the best known version says that during the summer vacations, Steve Jobs used to work at an apple farm in California. He was very fond of the red round fruit. Thus, in the last minute rush, he couldn’t think of anything better than Apple.
 
Yahoo
 
Stanford graduates Jeery Yang and David Filo decided to name their company Yahoo! In 1994, they picked the word from a dictionary. According to Yang it is an acronym for ‘Yet Another Hierarical Officious Oracle Exclamation.’
 
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Watch out for the online threats!
 
You must have come across mails waiting for you in your inbox that offer you a new job, often overseas with an exceptionally high salary. What do you think… in this tough job market you would get a call from somewhere without even applying for it?
 
Yes, you are right; these are one of those hundreds of fake mails that spam your mailbox. You must be  wondering   what  is  the  motive   behind  sending  such fake mails. If you happen to have read the
whole mail, you would know that they ask for a huge amount of money to be transferred into an account. As soon as you are lured by the nature of the job offered and transfer the amount into the given account, the account is seized and there is no trace of the sender. Evidently, you are the new catch of yet another online internet fraud.
 
As mails have become the most common method of communication, criminals are using it for their illicit activities.
 
Fake job offers are a part of the very famous Nigerian scam that has hit the net world. Named after the Nigerian criminal code, it is also called 419 scam. There are many other versions of the scam, all of the same nature. The fraudulent sends out unsolicited messages that masquerade as some manner of business proposition, request for assistance, notice for a potential inheritance or an opportunity to help a charity.
 
All the Nigerian scam messages entangle you in deals involving a huge amount of money. But in reality these deals do not exist.
 
The dangers on the internet do not stop here. Let’s take a look at some of the dangers lurking over the internet.
 
The social networking sites such as Facebook and Orkut is the in thing among the young adults. Children of ten years to adults of 30 years – all are addicted to online networking. With help of personal details available on these sites, the user’s profiles are faked by criminals with a cheap level of mind.
 
Most of the adult users are aware about the possible dangers and act accordingly. Some choose not to upload their personal pictures on public profiles; others make use of the available security options.
 
However, kids are unaware of the threats of the online world. Thus it the duty of every parent and grown up to safeguard them against all odds.
 
 What should a parent do?
 
• Keep a check on the sites your kids are visiting.
 
• If they use any social networking sites, make sure that all privacy settings are enabled.
 
• Do not encourage them to upload their pictures.
 
• Frequently check the history of the computer. If you feel there is any site that your child should not visit, be frank and tell them.
 
• There is nothing to hide. Talk to them and tell them about the potential dangers of using the net.
 
• Getting into a chat room is a strict no.
 
• Install security software like Net Nanny to prevent access to adult sites.
 
Many new tools have been launched that can make life much simpler for parents. Norton has launched a service called OnlineFamily.Norton to enable parents to monitor their child’s online activities. With the help of this software, the user’s activities like search keywords, websites visited and details about social networking are all registered into a web account.
 
Thus parents would aware of everything that their children do on the net, even while at work. They can also get email alerts and take necessary actions to adjust he settings from any web browser. In today’s age and times, it is important to keep an eye on what our children do – not to interfere in their privacy but to keep them safe from all potential dangers that they may be unaware of!
 
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Indian Rupee Gets An Identity
 
The Indian rupee has finally acquired an identity of its own. With the launch of the new rupee symbol, Indian rupee has joined the elite currency club. The other currencies having a unique identity are the US dollar, euro, British pound and the Japanese yen.
 
The   new   unique   symbol   is   a  well  thought  amalgamation  of  the  Devanagari  ‘Ra’   and  Roman  ‘R.’  The  symbol   was  designed  by  D.  Udaya  Kumar,  a  post  graduate  from  IIT  Mumbai
and  later  approved  by  the  cabinet.
 
Launching a new symbol would make the presence of the Indian currency felt in the international economy. Though the symbol will not be printed or embossed on currency notes and coins, it would be included in the 'Unicode Standard' so that it can be easily displayed and printed in the electronic and print media.
 
Unicode is an international standard that allows text data to be interchanged globally without conflict. After incorporation in the global and Indian codes, the symbol would be used by all individuals and entities within and outside the country.
 
The symbol will be adopted in a span of six months in the country and within two months globally.
 
How to type the new symbol?
 
Though the government had announced that it would take more than a year for the symbol to become commercially available, many companies already started using it.
 
Mangalore based Foradian Technologies Pvt Ltd has created a new font called Rupee_Foradian that can be downloaded from their blog - http://blog.foradian.com. This font can be used to type the new symbol by hitting (`) symbol. This symbol is just above the tab key of the keyboard.
 
The Indian currency has come a long way, indeed!
 
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Saina Nehwal: The young genius!
 
The new name in the field of sports to make news is none other than Saina Nehwal. The nineteen years old young Indian sports icon is a Khel Ratna winning badminton player who has been awarded the second world ranking by Badminton World Federation. Saina is the first Indian woman to reach the singles quarterfinals at the Olympics and the first Indian to win the World Junior Badminton Championship.
 
Saina Nehwal made history on 21 June, 2009 by becoming the first Indian to win a Super Series tournament (which stands equivalent to a Grand Slam in tennis) by winning the Indonesia Open with a stunning victory over Wang Lin in Jakarta.
 
Saina won the second career Super Series title by winning the Singapore Open title on 20 June, 2010. She made a hat trick in the same year by winning the Indonesian Open on 27 June, 2010.
 
Saina has been previously coached by S. M. Arif, a Dronacharya Award winner. Her present coach is the Indonesian badminton legend, Atik Jauhari. He has been coaching her since August 2008.
 
Important milestones in her career:
 
• Saina is the reigning under-19 national champion.
 
• She is the first Indian woman to win a 4-star tournament – the Philippines Open.
 
• She is the first Indian to win the World Junior Badminton Championship by defeating Sayaka Sato 21-9 and 21-18.
 
• Saina became the first Indian woman to reach the quarter finals at the Olympics Games.
 
• She also became the first Indian woman to reach the semi-finals of the All England and Asian championships.
 
• Saina became the first Indian to win a BWF Super Series title, the most prominent badminton series of the world by winning the    Indonesia Open.
 
• She was rewarded with Arjuna Award in August, 2009 and her coach Gopichand was also rewarded with Dronacharya Award at    the same time.
 
• Saina has been signed up by Olympic Gold Quest. It’s her dream to win the Olympic gold medal.
 
• Saina has been awarded with Padma Shri award in January 2010.
 
In addition to her stellar achievements, she has been signed as the brand ambassador of Deccan Chargers and Indian Premier League team. Her name has also been proposed for the upcoming Commonwealth Games.
 
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Statutory Compliance Calendar
 
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BIBLIOGRAPHY OR WORKS CITED
 
There is no one specific reference for these set of articles. Multiple sources were looked at, but content has been written by the Writer himself.
 
 
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