CTI IMES

An ISO 9001-2015 certified Institute.

from Director’s desk….

!!

F riends !! It is very disquieting that for millions and millions of individuals, worldwide, the year 2020 was

filled with series of unpalatable and disastrous events throughout - be it from coronavirus to heavy cyclones, from high alert and tension at Indian borders to unprece-dented economic disruptions. Fanning the flames, unprece-dented protests and political face-offs dominated the news in the recent past, heavily disrupting our country’s peace, law and order.

It is quite unfortunate that the agitation against Farmers’ bills entered the fifth week and its traces of being called off in the near future appears to be remote in its natural way. The borders of the Capital City have been witnessing a huge stir, carried out by numerous farmers, mostly from Punjab and Haryana States, against mainly three Farm Bills that were passed recently. The agitation goes on as formal talks between the Union Government and representatives of Farmers' unions were not successful as the protestors refuse to accept anything less than the very repeal of the newly enacted Bills. Hon’ble Union Minister for Agriculture expressed a hope of resolving the issue in the dawn of the New Year, 2021. Let us whole-heartedly wish so in larger interests of the farmers and our nation as well.

With folded hands, the Hon’ble Prime Minister of India, appealed to the farmers to come forward for discussions in order to dispel any misunderstandings and speculations about the bills. All of us know that it is not advisable to push the agricultural sector, the backbone of our country’s economy, into such a crisis. It is easy to start any agitation but wisdom should prevail in deciding as to where and how to stop it. The Government could very well implement the SC’s suggestion for formation of a Committee of experts to address the farmers’ grievances. Only through talks such contentious issues can be resolved. Farmers should also realise that it would be something illogical in asking first to withdraw the bills passed by the all-powerful Parliament and then come up for discussions. Even world wars could be ended through talks. It is earnestly felt that all appre-hensions on the farm bills can also be sorted out only through amenable and amicable discussions in an apolitical ambience, by all means.

लोकास्सस्समस्स्ााः सुखिनो भवन््ु !!

M R Srinivasa Rao Director

01 January 2021.

NAFSCOB Awards for ST Co-op. credit Structure in Telangana for 2018-19

— Apex Bank was awarded special prize for its overall

performance among 19 StCBs in three-tier structure. Shri K Ravinder Rao, Chairman, Apex Bank was awarded

“Plaque of appreciation” for his contribution to Demo-cratic Management & Governance.

Dr. N Muralidhar, MD., Apex Bank was awarded “Plaque of appreciation” in recognition of his concern for enhanc-ing governance systems in STCCS in Telangana.

Karimnagar DCCB was adjudged as the best performing DCCB among 393 DCCBs.

Choppadandi PACS in Karimnagar District was adjudged as the second best performing PACS in the country amongst 93,000 PACS.

The awards were given away by Dr. G R Chintala, Chairman, NABARD and

Shri Chandra Pal Singh, Chairman, KRIBHCO in the NAFSCOB’s meeting held on 29 Dec 2020 in Mumbai.

CTI’s best wishes and congratulations to them all.

Co- operation is the thorough conviction that nobody can get there unless everybody gets there.

Oct — Dec 2020 - Vol.- 3 - Issue - 3

for internal circulation only

A quarterly newsletter published by TSCAB-CTI, Rajendranagar, Hyderabad -500030.

Our TSCAB-CTI was adjudged by NAFSCOB as the third Best Performing CTI in the country (successively for the

second time) for the year 2018-19. Our Director Shri M R Srinivasa Rao is seen receiving the award at the hands

of Dr. G R Chintala, Chairman, NABARD & Shri Chandra Pal Singh, Chairman, KRIBHCO

in the NAFSCOB meeting held in Mumbai on 29 December 2020. The team of TSCAB-CTI is proud of the achievement and

continue to strive hard to improve its performance further.

to Shri Konduru Ravinder Rao garu,

Chairman of our Apex Bank & Chairman of Karimnagar DCCB

for being elected unanimously as the Chairman of National Federation of

State Co-operative Banks (NAFSCOB)

for a period of five years from 2021.

CTI IMES

Co- operation is always more powerful than competi-

Answers in the next page.. Banquiz 1. In India, on what basis of economic index, inflation is

calculated ?

2. Obligation of a “Banker” to maintain secrecy is not applicable to closed accounts. (Yes/No).

3. What is the “temporary financial accommodation” granted by RBI to State Governments called?

4. As per Sec.31 of RBI Act, 1934, who can issue & accept promissory notes payable to bearer on demand ?

5. Which is the first Indian Insurance Company, that introduced “Cyber Crime Insurance” ?

6. Which State has enacted a law on contract farming? 7. Which type of ATMs authenticate transactions by

thumb impressions instead of PIN ?

8. Which of the following is most liquid measure of money supply in India? (a) M1 (b) M2 (c) M3 (d) M4

9. What is the per-day transaction limit in BHIM UPI app ? 10. What is the meaning of ‘Real time” in the context of

RTGS ?

Particulars of training Programs / workshops

Programs No. of f Partici-pants

Total Trainee

days Pro-

posed Condu-

cted

1 CHANNEL-I (TSCAB & DCCBs)

(a) Standardized 17 12 237 711

(b) As per Calendar 12 11 220 714

2 CHANNEL - II (Staff of PACS)

(a) Standardized 06 03 27 81

(b) As per Calendar 09 06 62 186

3 Workshops

(a) Channel - I 03 02 43 86

(b) Channel - II 20 10 259 259

Sub-Total 67 44 848 2037

4 Others 09 09 220 614

Grand Total 76 53 1068 2651

Abstract of programs conducted by TSCAB - CTI during the academic year 2020-21. (upto 31 December 2020)

Virtual Programs scheduled for the ensuing quarter, i.e.,, 01 Jan 2021 to 31 March 2021.

A. Channel - I (Staff of TSCAB & DCCBs)

Particulars of training Programs / workshops

Dura-tion

Jan 2021

Feb 2021

Mar 2021

1

Induction - I Program for newly selected Staff (Venue: TSCAB, HO - Tim-ings as slotted by them) (No. of programs: ONE)

04 days

18 - 21 - -

2 Induction - II Program (03.00 p.m. to 05.00 p.m) (No. of programs: NINE)

05 days

04-08; 11-16* ; 18-22

& 25-30**

01-05; 08-12; 15-19; 22-26

01 - 05

3

Loan appraisal & loan documentation (FS & NFS) - (11.00 a.m. to 1.00 p.m.) (No. of Programs: THREE)

04 days

04 - 07 08 - 11 15 - 18 -

4

Leadership Develop-ment for the Directors TSCAB & DCCBs (11.00 a.m. to 1.00 p.m) (No. of programs: ONE)

03 days

- - 01 - 03

* 14th January holiday. ** 26 January holiday

B. Channel - II (Staff of PACS)

Particulars of training Programs / workshops

Dura-tion

Jan 2021

Feb 2021

Mar 2021

1

CAS /MIS & generation of financial statements in PACS (11.00 a.m. to 01.00 p.m.) (Total No. of programs: THREE)

03 days

11 - 13 28 - 30 22 - 24 -

2

Developing PACS into Multi-Purpose Societies (MPS) - (11.00 a.m. to 01.00 p.m) (No. of pro-grams: TWO)

03 days

18 - 20 01 - 03 -

An article, authored by Shri S Satyanarayana & Shri G Eswara Rao, FMs of our TSCAB -CTI,

with the caption, “Impact of COVID-19—Finding new avenues for business continuity in DCCBs in Telangana”

was published in the September issues of two National level magazines, viz., “Banking Finance” and

“Co-operator”. We are proud of you Sirs !!!

CTI’s publications during Oct - Dec 2020

1. ఆర్ధకి విజ్ఞానము - విశేషాంశాలు - A handbook in Telugu. TSCAB - CTI’s Academic wing translated a book, originally published by RBI under the caption, “Financial Aware-ness Messages (FAME) into Telugu, as a reading and teaching material with a sincere purpose of making the reader financially literate. The book contains various mes-sages on ‘Financial competencies’; ‘Basic Banking’; ‘Digital Financial literacy’; and ‘Consumer Protection.

2. “POWER OF CO-OPERATION” - A Case study. Pursuant to the decision taken by C-PEC, BIRD to conduct “Case Documentation Competition” on the theme “PACS as Multi Service Centers (MSCs)”, our FMs conducted a case study on the “Success of Pothangal PACS in Nizama-bad District”. Various positive factors responsible for the success of the Society were documented in the report.

to Mr. G Jagadish, Manager, TSCAB-CTI on his successful completion of

CAIIB in December 2020. Without hard work a dream is just but a dream.

Kudos Mr. Jagadish ! for making the dream a reality.

CTI IMES

We cannot accomplish all that we need to do without working together.

RBI excluded six PSBs from its Second Sched-ule, owing to their merger with other banks. These six banks were Oriental Bank of Com-merce (OBC), Syndicate Bank, United Bank of India, Corporation Bank, Andhra Bank and

Allahabad Bank ( 01 October 2020)

India Post Payment Bank, even amid COVID-19 pandemic, attained 3.6 crores of customers. Till September 15, 2020, the bank had completed 38,500 crores of

financial transactions. The top three circles that per-formed well were - UP, Bihar and Gujarat. (02 October 2020)

Kerala became the first Indian State to fix MSP for sixteen agricultural items, including vegetables, fruits and tubers. The scheme is to support the farmers with a remunerative

price. Base Price will be 20% more than production cost of vegetables. The crops will be procured from Farmers through Vegetable and Fruits Promotion Councils - “Keralam” and “Horticrop”. (29 October 2020)

NITI Aayog released “Draft Model Act and Rules for States” on land titling, which will empower the State Governments to estab-lish, administer and manage proper system of title registration of immovable proper-

ties. It will reduce large number of land related litigations and help improve land acquisitions. (30 Oct 2020)

Brief list of important circulars issued by RBI & NABARD to SCBs/CCBs during Oct-Dec 2020

(for full details, visit their websites, viz., rbi.org.in & nabard.org.in)

News of relevance in Indian economy & banking

during Oct - Dec 2020. (Source: various websites)

RBI/2020-21/48 - DOR (PCB).BPD.Cir No.3/13.05.001, dated 07 October 2020 - addressed to StCBs, DCCBs and PCBs - Interest Subvention Scheme for MSMEs – Co-operative banks were also made eligible institutions.

RBI/2020-21/61 - DOR.No.BP.BC.26/21.04.048/2020-21, dated 26 October 2020 - addressed to StCBs & DCCBs also on “Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020)”.

RBI/2020-21/70 - DPSS (CO) RTGS No.750/04.04.016/2020-21, dated 04 December 2020 - addressed to all par-ticipating banks in RTGS - RBI made RTGS available round the clock on all days of the year with effect from 00:30 hours of December 14, 2020.

RBI/2020-21/80 - DOR.AML.BC.No.31/14.01.001/2020-21, dated 18 December 2020 - addressed to all Regulat-ed Entities of RBI - Amendment to Master Direction (MD) on KYC – Centralized KYC Registry – Roll out of Legal Entity Template & other changes. (Very important circular - should go through)

NB. DoS. Pol./2566/Policy /J-1/ 2020-21, dated 12 Oct 2020 - addressed to all StCBs & DCCBs - Violation of Sec. 19 of the B R Act, 1949 (AACS) - Holding of shares in other co-operatives.

NB. DoS. HO. ENSURE/ 3109 /P-177/2020-21, dated 11 December 2020 - Launch of ENQUIRE (ENsure QUeries and Issues REsolutionl Module) to handle all complaints/issues/queries related to creation and updation of User IDs, submission of returns, generation of reports etc. (Important Circular)

NPCI approved the ‘Facebook owned mes-saging Application - WhatsApp” to “Go Live” on UPI through "WhatsApp Pay”. WhatsApp partnered with five banks, viz., ICICI Bank,

Indian Bank, Axis Bank, HDFC Bank and SBI. Now, money can be sent to any other user using the UPI supported applica-tion in WhatsApp. ( 06 November 2020)

RBI, in its recently held Monetary Policy Com-mittee meet, kept the repo rate unchanged at 4% and Reverse Repo Rate is to continue at 3.35%. Other key decisions included - bank rate & MSF kept unchanged at 4.25%; limit of

contactless card transaction raised from Rs 2,000 to Rs 5,000 from Jan 2021 & RTGS to be made 24/7. (04 December 2020)

A project worth $400 million was signed be-tween GoI and World Bank to protect India’s poor and vulnerable population affected by the adverse economic crisis caused by the

pandemic. The credit is from the International Development Association of the World Bank. (18 December 2020)

RBI is to introduce “Positive Pay System” from Jan 01, 2021 for cheque transactions more than ₹ 50,000, to eliminate frauds. This system is a process of reconfirming the key details of large-value cheques, i.e., above ₹ 50,000/-.

While it is at the discretion of account holder, banks were asked by RBI to make it mandatory in case of cheques for ₹ 5.00 lakh and above. (22 December 2020)

Banquiz (Answers)

1. Consumer Price Index (CPI) 2. No. 3. Ways & means advances. 4. GoI & RBI. 5. Bajaj Allianz 6. Tamil Nadu 7. Bio-metric ATMs 8. M1 ( Cash with the Public + demand deposits with banks + other deposits with

RBI) 9. Rs.40,000/- 10. Processing of instructions at the time they are received

CTI IMES

On Shri K. Ravinder Rao, Chairman Apex Bank being unanimously elected as the new President of NAFSCOB - 29 Dec 2020.

Quick Response (QR) Codes

RBI recently, in the month of October 2020, ordered payment system operators (PSO) for launching new pro-prietor QR code for their transactions. The apex Bank asked the PSOs to switch over to at least one inter-operable QR code. This is to use the same QR code across multiple payment applications. This is being done to improve digital payment infrastructure in the country.

What are QR codes?

They are two dimensional machine-readable barcodes. Their usage is increasing day by day to facilitate mobile payments at point of sale. The QR codes can store large amount of data. It was invented by the Japanese compa-ny called Denso Wave in 1990s.

Need

QR code accepts payment from mobile application of its deployer. This is against interoperability agreement signed between banks governing unified payment inter-face ecosystem and third party payment application.

QR codes in India

In Sep 2016, RBI launched Bharat QR, which was devel-oped by NPCI along with American Express, MasterCard, Visa Card. The Bharat QR had the capability of accepting payments on unified payments interface platform.

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How is the minimum support prices of crops fixed?

Every year the Commission for Agricultural Costs and Prices operating under the Ministry of Agriculture will recommend minimum support prices for 23 crops. These include 14 crops that are grown during Kharif season and six crops in Rabi season. While fixing the prices, the Commission considers several factors such as market price trends, supply and demand of the commodity, in-flation, terms of trade between non-agricultural sectors and agricultural sectors, environment (soil and water) and cost of cultivation. During the Union budget for FY 2018-19, it was announced that the minimum support prices would be fixed at one-and-a-half times of the pro-duction costs of the crops.

How is the production cost calculated?

The Commission projects three kinds of production cost for every crop. They are A2, C2 and A2+FL. A2 covers all the costs incurred by the farmer. This includes fertilizers, seeds, pesticides, lease, labour charges, irrigation. The A2+FL includes all the costs incurred under A2 and the value of unpaid family labour. C2 is a comprehensive cost that includes rental, interest foregone on own land and fixed capital assets along with the A2+FL cost. (The agitating farmers fear that the new laws will do away with the minimum support price being offered by GoI. )

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Editorial Board: : Shri M R Srinivasa Rao, Director, TSCAB CTI , Shri S Satyanarayana, Faculty Member & Head of Academic wing, TSCAB CTI. &

Shri G Eswara Rao, Faculty Member, TSCAB, CTI.

One-day Orientation program for newly elected Presidents of PACS - Hyderabad DCCB in CTI’s premises on 22 November 2020.

One-day Orientation program for newly elected Presidents of PACS - Medak DCCB conducted by CTI on 14 December 2020.

Dr. N Muralidhar, MD, Apex Bank receiving the plaque of appreciation in recognition of his concern for enhancing

“Governing Systems in STCCS in Telangana” .