Social Interaction and Relationships Research Paper

Social Interaction and Relationships - Research Paper Example A Closer Analysis on Child Abuse The welfare of children has been the primary concern of social scientists through time. The penultimate objectives of parents, teachers, social workers through local communities and state agencies globally acknowledge the need to promote and safeguard the well-being of each and every child. Sad to say, there are some relationships between parents and children that result in maltreatment and abuse due to various factors. Children have been found to be highly susceptible to abusive relationship and behavior by adults due to their tender age, naivety, immaturity, and incompetence to fully decide for themselves without realizing the effects and repercussions of actions imposed upon them. In this regard, the essay aims to proffer issues pertinent to social interaction focusing on child abuse, as one type of relationship between a child and his or her parents, as studied through the eyes of a social psychologist. ... ience, direct or indirect, coincide with the conclusions made through social science research; and finally, (4) if one could study the same behavior, how could it be done differently and how would one’s method ensure a higher level of accuracy. The Study of Child Abuse The Commission on Behavioral and Social Sciences and Education (CBSSE) published a report entitled Understanding Child Abuse and Neglect in 1993 delving into the critical issues pervading child abuse including its identification and definitions, the scope of the problem, etiology of maltreatment, prevention, consequences, and treatment, among others. As indicated, it was only in 1976 that the first relevant statistics on child maltreatment was revealed and covered by the National Child Abuse and Neglect Data System (CBSSE, 1993, 78). The incidence and prevalence of child abuse and maltreatment were revealed to be sourced from â€Å"congressionally mandated maltreatment reports, population-based surveys of speci fic types of maltreatment, surveys of maltreatment in special population subgroups (e.g., disabled children), and cross-national data† (CBSSE, 1993, 79). Current statistics from the National Child Abuse agency show a continually increasing trend of abuse and maltreatment from 1995 until 2007 (Child Help, 2011). The figures reveal an alarming number of approximately â€Å"5.8 million children were involved in an estimated 3.2 million child abuse reports and allegations†¦ (of which) 90% of child sexual abuse victims know the perpetrator in some way; 68% are abused by family members† (Child Help, 2011, 1). The mandatory reporting of child abuse and neglect has been expounded by Smith (2009) to indicate that â€Å"all states require certain professionals and institutions to report suspected child abuse,

Synthesis Paper Essay Example for Free

Synthesis Paper Essay According to the course syllabus we were introduced to the techniques of psychological research. This course was able to provide an understanding of how research is done, and what methods we can use to do so. By having a clear understanding of research and techniques used, it allows us to communicate effectively in regards to ideas behind the research process. In this paper, I will use myself as the case study to examine exactly what I learned about research. In the field of mental health, professionals must be constantly looking for ways to help their patients. (Cozby Bates 2012). When dealing with research, it allows us to explore valuable information that has been researched before. By understanding the value of research or ways to interpret, it helps you decide the legitimacy of your research and how to apply it while other methods may rely on personal experiences or feelings. By knowing the value of the scientific method, this allows us to hold our information to possibly a higher standard. Ideas are looked at logically and others, to ensure validity, interpret conclusions. (Cozby Bates 2012). Ethical Research After gaining a clear understanding in regards to research, I’ve learned that it’s not necessarily what we find out from research but, where we gathered the information. We always need to be concerned with how we went about finding the information. With all information gathered, we must also gather participants. It is important to gather all participants to find the most accurate results, as well as ensuring equal treatment of all participants. One major step to ensure proper treatment is to gather informed consent. By doing so, this allows all participants to understand all parts of research that may affect their decision in participating. This obviously doesn’t indicate that we have given full disclosure, so that it doesn’t affect our end results. A safeguard is put in place to protect participants which is called the Institutional Review Board. This board is put in place to protect  the participants’ privacy and confidentiality. This can be achieved through anonymous questionnaire, or coding of answers to protect privacy. (Cozby Bates, 2012). Not only is this board put in place for the protection of people, but also for animals. Another major ethical portion of research is to understand fraud and plagiarism. Some may falsify their findings to indicate a result completely different from their research which is fraud. One thing to consider that may be beneficial is peer review, which can help prevent fraud. The findings should be replicated by others to ensure the results are valid. As long as credit is given when using someone else’s research, it is not considered fraud or plagiarism. Fundamental Research Issues and Measure Concepts In research, there are several variables that can change depending on the circumstances. Coming up with an operational definition of those variables ensures that all reading the research understand â€Å"the procedures used to measure or manipulate† them. (Cozby Bates, 2012). When we’re looking at more than one variable, we must be concerned with how the variables relate to each other. These relationships can be defined as negative linear, positive linear, curvilinear, or no relationship. The two ways we can study these relationships are through non experimental and experimental methods. Non experimental does not involve any direct manipulation of the variables as opposed to experimental which involves direct manipulation to see results. Reliability is so important because it ensures the most accurate results as possible. You can then use a test-retest, you can give the test twice and judge based on the similarity of results. (Cozby Bates, 2012) Once a method can be determined and results are attained, we must look for the internal and external validity. Internal validity will occur when we are certain that the changes seen directly the result of the relationship between variables. The certainty is greater when care has been taken to exclude any other possible causes for the changes in variables. (Cozby Bates, 2012). If the research can be repeated in a different setting and the same results still apply, the external validity is high. (Cozby Bates, 2012) When working with research, we must be sure that our methods are accurate in order to trust our results. Observational Methods and Survey Research When referring to research, no matter what research method you chose, an observation will take place. When focusing on quantitative research, quantitative research allows many participants to be involved. When using this type of research, it allows the results to effect a greater population. Qualitative involves a broader investigation with fewer subjects in a natural setting, more of an observational method. (Cozby Bates, 2012). One method that I have learned during this course is a case study. This begins with an observational method that provides a description of an individual. (Cozby Bates, 2012). Experimental Design and Conducting Experiments After doing my own testing and observation, I have found that cofounding variables are something we want to eliminate. Cofounding variables can alter your results and undermine all of your research. A way to eliminate this would be random assignment of participants. Using the pre-test-post-test design helps to ensure the introduction of the independent variable is responsible for any change to the dependent variable. (Cozby Bates, 2012). Self-reports are definitely some ways to measure the variable and are done by the participants. Research can cost a sufficient amount of money and may require a lot of your time; therefore a case study may be beneficial before beginning an entire research study. Biblical Perspective Now all has been heard: here is the conclusion of the matter: Fear God and keep his commandment for this is the duty of all mankind. (Ecclesiastes 12:13). By doing so, we follow Gods plan and his word. Sometimes we may not always understand all things, but that definitely doesn’t mean God has the information concealed. I believe that discovery is more of a reward for those who seek him. This course has allowed me to understand the importance of research, how to accurately interpret research and how to protect the individuals that are involved. â€Å"It is the glory of God to conceal things, but the glory of kings to search things out†. (Proverbs 25:2) This verse is definitely an example in reference to research and whether or not scripture supports it. My understanding of the verse is that it is important to research a topic biblically as opposed to the secular world, if we refer to scripture with every issue we can find the true meaning and validity to  daily living as Christians we are looking for. Overall this course has allowed me to gain clear knowledge of research as well as determine the validity. I have learned that research may have potential holes and cofounding variables so understanding research is extremely important to understand. I have learned different research methods and what methods are best for each individual situation. I have been able to understand research and the ethically aspect of research, but most importantly an understanding of research from a biblical standpoint. Research is important, and we all need research when it is done appropriately. As long as we put God first and refer to scripture for daily living, it will make the research process a lot easier. References Cozby, Paul. C., Bates, Scott. C. (2012). Methods in Behavioral Research (11th ed). New York, NY:McHraw-Hill The Holy Bible: New King James Version. (2010). McLeod, S. A. (2008) Case Study Method. Retrieved from http://www.simplypsychology.org/case-study.html

Vodafone And Airtel And Customer Satisfation Marketing Essay

Vodafone And Airtel And Customer Satisfation Marketing Essay The Indian Telecommunications network with 110.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, is expected to reach 250 million in 2007. According to Broadband Policy 2004, Government of India aims at 9 million broadband connections and 18 million internet connections by 2007. The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY2004- 2005. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected to bypass 2.5 million new subscribers per month by 2007. The wireless technologies currently i n use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country. Vodafone Group plc is a global telecommunications company headquartered in Newbury, United Kingdom. It is the worlds largest mobile telecommunications company measured by revenues and the worlds second-largest measured by subscribers (behind China Mobile), with around 332 million proportionate subscribers as at 30 September 2010. It operates networks in over 30 countries and has partner networks in over 40 additional countries. It owns 45% of Verizon Wireless, the largest mobile telecommunications company in the United States measured by subscriber The name Vodafone comes from voice data fone, chosen by the company to reflect the provision of voice and data services over mobile phones Its primary listing is on the London Stock Exchange and it is a constituent of the FTSE 100 Index. It had a market capitalization of approximately  £92 billion as of November 2010, making it the third largest company on the London Stock Exchange. It has a secondary listing on NASDAQ.In 1980, Sir Ernes t Harrison OBE, chairman of Racal Electronics plcs, the UKs largest maker of military radio technology, agreed a deal with Lord Weinstocks of General Electric Company plc to allow Racal to access some of GECs tactical battlefield radio technology. Briefing the head of Racals military radio division Gerry Whent to drive the company into commercial mobile radio, Whent visited GEs factory in Virginia USA in 1980. In 1982, Racals newly formed subsidiary Racal Strategic Radio Ltd under CEO When, won one of two UK cellular telephone network licenses; the other going to British Telecom The network, known as Racal Vodafone was 80% owned by Racal, Millicom with 15% and Hambros Technology Trust 5% respectively. Vodafone was launched on 1 January 1985Racal Strategic Radio was renamed Racal Telecommunications Group Limited in 1985. On 29 December 1986, Racal Electronics bought out the minority shareholders of Vodafone for GB £110 million. Under stock market pressure to realize full value for shareholders (the mobile unit was being valued at the same amount as the whole Racal group), in September 1988, the company was again renamed Racal Telecom, and on 26 October 1988, Racal Electronics floated 20% of the company. The flotation valued Racal Telecom at GB £1.7 billion. On 16 September 1991, Racal Telecom was demerged from Racal Electronics as Vodafone Group. In July 1996, Vodafone acquired the two thirds of Talk land it did not already own for  £30.6 million. On 19 November 1996, in a defensive move, Vodafone purchased Peoples Phone for  £77 million, a 181 store chain whose customers were overwhelmingly using Vodafones network. In a similar move the company acquired the 80% of Astec Communications that it did not own, a service provider with 21 stores. In 1997, Vodafone introduced its Speech mark logo, as it is a quotation mark in a circle; the Os in the Vodafone logotype are opening and closing quotation marks, suggesting conversation. untitled.bmp Bharathi Airtel Sunil Bharti Mittal founded the Bharti Group. In 1983, Sunil Mittal was into an agreement with Germanys Siemens to manufacture the companys push-button telephone models for the Indian market. In 1986, Sunil Bharti Mittal incorporated Bharti Telecom Limited (BTL) and his company became the first in India to offer push-button telephones, establishing the basis of Bharti Enterprises. This first-mover advantage allowed Sunil Mittal to expand his manufacturing capacity elsewhere in the telecommunications market. By the early 1990s, Sunil Mittal had also launched the countrys first fax machines and its first cordless telephones. In 1992, Sunil Mittal won a bid to build a cellular phone network in Delhi. In 1995, Sunil Mittal incorporated the cellular operations as Bharti Tele-Ventures and launched service in Delhi. In 1996, cellular service was extended to Himachal Pradesh. In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular operations to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of Skycell Communications, in Chennai. In 2001, the company acquired control of Spice Cell in Calcutta. Bharti Enterprises went public in 2002, and the company was listed on Mumbai Stock Exchange and National Stock Exchange of India. In 2003, the cellular phone operations were rebranded under the single Airtel brand. In 2004, Bharti acquired control of Hexacom and entered Rajasthan. In 2005, Bharti extended its network to Andaman and Nicobar. In 2009, Airtel launched its first international mobile network in Sri Lanka. In 2010, Airtel began operating in Bangladesh and 16 African countries. Today, Airtel is the largest cellular service provider in India and fifth largest in the world. Aims and objectives: To see whether the customer of Vodafone and airtel are satisfied or not? To find out which telecom company have good plans of value added service and what type of plans subscriber like. Methodology: A survey was conducted on the customers of Vodafone and airtel . Personal interaction was made while conducting the survey. The primary data source includes that Final questionnaire filled by 100 customers. The Questioners include following: Close ended questions. Open ended questions. Suggestions of the customers. All the respondents were asked their own suggestions and they are mentioned after the responses. The secondary data sources were Internet, Broachers, gallery etcà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ Problem Statement: There was a need to know the present position of the Vodafone and airtel telecommunication service provider and to know the level of the customer satisfaction. This will help out to both telecommunication service provider companies to improve their customers next visit and to retain in the Business Research Objective: Customer Satisfaction for Vodafone and Airtel Background: The report is based on the data collected from the customers, who are the users of Vodafone and Airtel also. Pilot Sampling: A Pilot Survey was conducted on 20 Respondents of customers of Vodafone and airtel. The aim of this Pilot Survey to get an idea of the question that can be asked in main questionnaire Survey and It also help out me in creating the options in the main questionnaire survey. Sampling Size: The Sample size was 100Respondents, who the users of both Vodafone and Airtel and are students of my college. The survey was conducted in my college premises only. Target Audience: Students who are using Vodafone as well as airtel service. Analysis Sms pack Which telecommunication service do you use? Conclusion: Above Pie-chart speaks about both customers are using airtel as well as Vodafone. 2) Do you use SMS pack service on your cell phone? Conclusion: Above pie chart speak about most of the 95% customer are using sms pack and 5% are not using sms pack. 3) Which companys SMS packing service do you use? Conclusion: Above Pie-chart speaks about both customers are using airtel as well as Vodafone. What influenced you to activate SMS service on: Conclusion :(Airtel) Above pie chat speak about that 77% customer come to know from the friend,12% come to know from the schemes,8% come to know from the advertisement and 3% come to know from the any other (brochers,banner etc) Conclusion :(Vodafone) Above pie chat speak about that 70% customer come to know from the friend,15% come to know from the schemes,11% come to know from the advertisement and 4% come to know from the any other (brochers,banner etc) 5)Which SMS pack service have you experienced using on: Airtel Vodafone Rs 9 (40 all loc sms) 1 day Rs 4( 100locnat sms) 1day Rs 24(5000 all loc+std sms) 10day Rs 10(50loc%nat sms) 10day Rs 67(15000 all loc+td sms)30 day Rs15 (75 loc%nat sms) 15day Rs 26(5000loc%nat sms) 10day Rs 36(1000loc%nat sms) 30day Rs 66(15000loc%nat sms) 30day Conclusion: Above table speak about list of sms pack service that airtel and Vodafone customer have experience before. 6)Which SMS pack schemes do you use currently on: Airtel Vodafone Rs 67(15000 all loc+std sms)30 day Rs 66(15000loc%nat sms) 30day Conclusion: Above table speak about most of airtel customer are currently using Rs 67(15000 all loc+std sms)30 day and most of the Vodafone customer are currently using Rs66(15000loc%nat sms) 30day . 7) How often do you activate SMS schemes on your mobile? Conclusion: Above line graph speak about 63% of customer are often are using activate SMS schemes on mobile,19% of customer are frequently activate SMS schemes on mobile,6% of customer are once a month activate SMS schemes on mobile,7% of customer are once 3 month activate SMS schemes on mobile and ,5% of customer are once a 6 months activate SMS schemes on mobile. 8) What do you think about the pricing of these SMS packs? Airtel: ok Vodafone: very good and excellent. Do you think that SMS pack service of Airtel is better than that of Vodafone? Conclusion: Above pie chart speak about 15% customers has said that sms pack service of airtel is better then of Vodafone and 85% said that sms pack service of Vodafone is better then airtel. How satisfied are you with the SMS pack service provided by Airtel? Conclusion: Above line graph speak about 15% customers of airtel are highly satisfied on sms pack service,25% customers of airtel are satisfied on sms pack,10% customers of airtel are neither satisfied nor dissatisfied on sms pack , 20%customers of airtel are dissatisfied on sms packand 30%customers of airtel are highly dissatisfied on sms pack service. How satisfied are you with the SMS pack service provided by Vodafone? Conclusion: Above line graph speak about 50% customers of airtel are highly satisfied,40% customers of airtel are satisfied,5% customers of airtel are neither satisfied nor dissatisfied , 3%customers of airtel are dissatisfied and 2%customers of airtel are highly dissatisfied. 12) According to you SMS pack service of which telecom service provider is better? Conclusion: Above line graph speak about 75% customer are said that Vodafone is better then airtel and 25% of airtel customer said that airtel is better then Vodafone. 13) Do you have any complaints? Airtel: No proper range High price Less awareness Messages pending mostly Vodafone: Increase validity of sms pack 14) Which service providers SMS pack service will you recommend to others in future? Conclusion: Above pie chart speak about that 71% of customers will recommend to Vodafone only in future, 24%% of customers will recommend to airtel only in future, and 5% for the both. Night calling Do you use Night calling service on your cell phone? Conclusion: Above pie chart speak about most of the 61% customer are using night calling pack and 39% are not using night calling pack. If yes then, which companys Night calling service do you use? Conclusion: Above pie chart speak about 5% of customers are using airtel only, 10% of customers are using Vodafone, and 85% of customers are using both. What influenced you to activate Night calling service on: Conclusion :(Airtel) Above pie chat speak about that 78% customer come to know from the friend,15% come to know from the schemes,5% come to know from the advertisement and 2% come to know from the any other (brochers,banner etc) Conclusion :(Vodafone) Above pie chat speak about that 70% customer come to know from the friend,15% come to know from the schemes,11% come to know from the advertisement and 4% come to know from the any other (brochers,banner etc) Which Night calling schemes do you use currently on: Airtel Vodafone Rs 28(300 night loc airtel min) 5 day Rs 22(175 loc Vodafone night min) 15 day Conclusion: Above table speak about most of airtel customer are currently using Rs 28(300 night loc airtel min) 5 day and most of the Vodafone customer are currently using Rs 22(175 loc Vodafone night min) 15 day. How often do you activate Night calling scheme on your mobile? Conclusion: Above line graph speak about 41% of customer are often are using activate night calling pack on mobile,52% of customer are frequently activate night calling pack on mobile,3% of customer are once a month activate night calling pack on mobile,2% of customer are once 3 month activate night calling pack on mobile and ,1% of customer are once a 6 months activate night calling pack on mobile. What do you think about the pricing of these Nights calling scheme? Ok satisfied Good Very good Attractive Do you think that Night calling scheme of Airtel is better than that of Vodafone? Conclusion: Above pie chart speak about 8% customers has said that night calling pack of airtel is better then of Vodafone and 92% said that night calling pack of Vodafone is better then airtel. How satisfied are you with the Night calling service provided by Airtel? Conclusion: Above line graph speak about 2% customers of airtel are highly satisfied with night calling service,10% customers of airtel are satisfied with night calling service ,26% customers of airtel are neither satisfied nor dissatisfied with night calling service , 57%customers of airtel are dissatisfied and 5%customers of airtel are highly dissatisfied with night calling service. How satisfied are you with the Night calling service provided by Vodafone? Conclusion: Above line graph speak about 64% customers of Vodafone are highly satisfied with night calling service,27% customers of Vodafone are satisfied with night calling service ,4% customers of Vodafone are neither satisfied nor dissatisfied with night calling service , 3%customers of Vodafone are dissatisfied and 2%customers of Vodafone are highly dissatisfied with night calling service. According to you Night calling service of which telecom service provider is better? Conclusion: Above line graph speak about 78% customer are said that night calling service of Vodafone is better then airtel and 22% of customer said that night calling service of airtel is better then Vodafone. Do you have any complaints: Airtel: no range, no clarity, price Vodafone: no. its ok and excellent. Which service providers Night calling pack service will you recommend to others in future? Conclusion: Above line graph speak about 3% of customer will recommended to airtel night calling pack service provider , 89% of customer will recommended to Vodafone as a night calling pack service provider and 8% of customers will recommended to both service providers. 13) Your suggestions to: Airtel :__________________________________________________________ __________________________________________________________ Vodafone : __________________________________________________________ __________________________________________________________ CONCLUSION AND LEARNING To end my project report, I would like to say that it was a really great experience working with Vodafone and airtel telecom industry Through this Internship I gained a lot of knowledge in this Project. It was a great experience to interact with the customers of Vodafone and airtel. Finally I want say thanks to the Vodafone and Airtel executive officer for allowing me to gain valuable information, for giving me an opportunity to conduct this study. From the above research I have done I can conclude that Vodafone is much better than airtel and hence airtel needs to work hard and get better. Specially about the sms packs, the pending messages which irritate the customers and the range at night. RECOMMENDATIONS/SUGGESTIONS Sms pack For Vodafone The validity for the sms pack should be increased as the customers those who are sending sms regularly are facing problem. More messages should be offer to customers for less money For Airtel Messages pending Slow delivery is there. So try to increase the speed. Easy service More messages should be offer to customers for less money More advertising should be done in order attract the customers. Night calling Vodafone:- Increase timings hours from (10.00pm to 8.00am) firstly it was (11.00pm to 8.00am) Reduce the price Validity should be increase. Should improve the scheme for night calling Airtel: Range problem. So set up a good range towers Promote your services to maximum end customers More advertising /promotion should be done in order attract the customers. Increase timings hours from (10.00pm to 8.00am) first it was (11.00pm to 6.00am) Bibliography Website: www.vodafone.in www.airtel.com www.google.com

Progressivism Essays -- essays research papers

Progressivism implies a philosophy which welcomes innovations and reforms in the political, economic, and social order. The Progressive movement, 1901 to 1917, was ultimately the triumph of conservatism rather than a victory for liberalism. In a general sense, the conservative goals of this period justified the Liberal reforms enacted by Progressive leaders. Deviating from the â€Å"traditional† definition of conservatism (a resistance to change and a disposition of hostility to innovations in the political, social, and economic order), the Conservatist triumph was in the sense that there was an effort to maintain basic social and economic relations vital to a capitalist society. The Progressive leaders essentially wanted to perpetuate Liberal reform in order to bring upon general conservatism. Expansion of the federal government’s powers, competition and economic distribution of wealth, and the social welfare of American citizens concerned the many leaders of this era. The business influence on politics was quite significant of the Progressive Era. Not only did the three leading Progressive political figures, Roosevelt, Taft, and Wilson, bring upon new heights to government regulation, but also the great business leaders of this era defined the units of political intervention. With political capitalism rising to fame, Progressive politics experienced new themes and areas. The inevitability of federal regulation policies, reformation of social welfare, conservation, and various innovations with banking led to one conservative effort: the preservation of existing powers and economic/social relations. The political leaders of this ear were conservative in that they all believed in the fundamentals of basic capitalism. The various forms of anti-trust legislation presented by each president made the nation one step closer to providing a stable, predictable, and secure, therefore, conservative capitalist society. Theodore Roosevelt’s statist tendencies brought new meaning to government regulation. Roosevelt’s Anti-Trust policy of 1902 pledged government intervention to break up illegal monopolies and regulate corporations for the public good. Roosevelt felt that â€Å"bad† trusts threatened competition and markets. in order to restore free competition, President Roosevelt ordered the Justice department to prosecute corporations pursing monopolistic pr... ...ed and are Liberal indeed. However, the Liberal reforms reinforced the original conservative goals. Business and political leaders accepted the growing competition. Laissez faire, complete Liberalism, hardly ever existed and will not appear in the near future. Political capitalism, by definition from Gabriel Kolko (author of â€Å"The Triumph of Conservatism), is the utilization of political outlets to attain conditions of stability, predictability, and security in the economy. The fact that federal regulation of the economy was conservative in its effect in preserving existing power and economic relations in society shows that federal regulation in the economy was conservative as well. Through the many antitrust acts and various economic and social policies, the Progressive Era ultimately operated on the assumption that the general welfare of the community could be best served by satisfying the concrete needs of business. The big business and business leaders influenced the regulation and the government worked for the people, promoting competition and decentralization. Hence, the Progressive movement served to preserve original goals, not reform society with Liberalism.

Contemporary Issue on Chit Funds -“The Invincible”

An contemporary issue report on CHIT FUNDS â€Å"THE INVICIBLE† 2013-2014 Made by : Fakhruddin Badshah PREFACE This document sketches the the meaning, introduction, overview,its working,online chit funds, I threw some light on latest news about this sector and also tried to cover the latest upsteram and downsteam aspects of this sector (chit fund companies). My aim of writing on this issue is who will going to stop the fraudulant activities being done by this companies. I chose this segemnt for my contemporay because this is going very common among the people in today’s time.So I thought lets give away the the detail of this segment to the people. With the help of this document people will come to know what exactly going on in this domain. This sector is expanding rapidly like anything. This developments has become a catalyst for the growth of vigourous chit fund companies in all over India. So what provisions should be made to curb the alleged false practices done by t hese companies or segment. Thus it is the to think and act on it to protect the interest of small investors and their hard earned incomes. Index Introduction| 5-7| Overview of chit fund| 8|How chit fund works| 9-11| 2012-2013 Highlighted News about chit-fund| 12-13| Who will stop chit funds? | 14-18| Report of MCA| 18-21| Benefits| 21-22| Drawbacks| 23| Safety from Chit funds| 24| CHIT FUNDS – â€Å"The Invincible† Introduction: A chit fund is a type of savings scheme practiced in India, besides other forms of savings scheme offered by various public and private sector banks, post offices, insurance corporations etc. Chit Funds are indigenous financial institutions in India that cater to the financial needs of the low-income households, which have been excluded from the formal financial system. Chit†, in the legal purview, means a transaction whether called chit, chit fund, chitty, kuri or by any other name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money (or a certain quantity of grain instead in the case of villages) by way of periodical installments over a definite period and that each such subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to the prize amount.In simple words, A chit fund is a savings-borrowing scheme, in which a group of people enter into an agreement to contribute fixed amounts periodically, for a specified period of time. The amount so collected (or the chit value) is distributed among each of the persons in turns, which is determined by way of lots or an auction. Chit funds provide an opportunity to save excess cash on a daily, weekly or monthly basis, and give an easy access to it in case of emergency. Chit funds are the Indian equivalent of the Rotating Savings and Credit Associations (ROSCA) that are famous thr oughout the world.ROSCAs are a means to â€Å"save and borrow† simultaneously. It is considered one of the best instruments to cater to the needs of the poor. It enables poor people to convert their small savings into lump sums. The concept of chit funds originated more than 1000 years ago. Initially it was in the form of an informal association of traders and households within communities, wherein the members contributed some money in return for an accumulated sum at the end of the tenure. Participation in Chit funds was mainly for the purpose of purchasing some property or, in other words, for â€Å"consumption† purposes.However, in recent times, there have been tremendous alterations in the constitution and functioning of Chit funds. While in most places ROSCAs are user-owned and organized informally, in India, chit funds have been formally institutionalized as well. Legally recognized firms provide a variety of chit schemes. A Chit Fund can either be legally regist ered or unregistered. Registered Chit Funds, as the name suggests are being regulated under the various Chit Fund acts. While unregistered Chit Funds are unorganized and mostly run by the close friends, relatives or family members of the investor.Unregistered Chit Funds which exceed 100 ($2) in value are illegal in India, although it is very well known that unregistered Chit Fund industry is very popular in India, mainly in the rural and semi-urban area, where people have very little access to the banking services and where financial illiteracy is more. The regulation of the Chit Fund industry was put in place by the Government of India to address the problem of misuse of informal Chit Funds by unscrupulous promoters and founders running away with the participant’s funds, leaving the members with little recourse to retrieve their money back.Chit funds in India are governed by various state or central laws. Organized chit fund schemes are required to register with the Registra r or Firms, Societies and Chits. Various Chit Fund Acts governing the industry in India are as under: * Union Government – Chit Funds Act 1982 (Except the State of Jammu and Kashmir) * Kerala – Kerala Chitties Act 1975 * Tamil Nadu – Tamil Nadu Chit Funds Act, 1961 * Karnataka: The Chit Funds (Karnataka) Rules, 1983 * Andhra Pradesh – The Andhra Pradesh Chit Funds Act, 1971 * New Delhi- The Chit Funds Act,1982 and Delhi Chit Funds Rules, 2007 * Maharashtra – Maharashtra Chit Fund Act 1975 Uttar Pradesh: Uttar Pradesh Chit Funds Act, 1975 * Goa, Daman & Diu: The Goa, Daman and Diu Chit Funds Act, 1973 * Pudducherry/Pondicherry: The Pondicherry Chit Funds Act, 1966. An overview of chit funds: The economic development of a country depends upon the availability of resources. The main activities that contribute to the growth are production and employment. Production depends upon the inputs of the factors such as finance, raw materials, labor etc. The mo st important here bring finance, which is the chief mobilized of all the factors of production.In a money economy, finance for development initially comes from private savings. These private savings give to the secondary deposits; this is where the financial institutions come into picture. Financial institutions occupy a central place in mobilizing savings from the people and make it available to the trade, commerce and industries either as a capital or loans. The non banking sector comprises of money lenders, indigenous bankers, pawn brokers, nidhis, â€Å"chit funds† etc.The origin of chit funds can be traced way back to the 17th century when the economic wizards of state of Malabar (now known as the state of Kerala) started this activity. Those were the people who actually founded this financial institution. It became so popular and numerous that people started adopting this activity as a profession by the 18th century all over. As the chit industry grew the number of peop le involved in this industry also grew. This gave rise to many misconceptions, frauds, mismanagement etc. , in this industry.To prevent this State Government of Travancore took the first initiative and introduced the first Chit Fund Regulation being the Chit Fund Act 1914. One important regulation introduced by this act was that of a commission payable to the foreman. The Act brought about a ceiling limit on the commission payable to the foreman that is 5% maximum which is still the same even to this date. How chit funds works: Chit funds which are popular from a very long time but still some people don’t know how exactly this chit fund works and invest their money illogically.This can be understood by the following procedure: Let’s say there are 20 people who come together and form a group. Each one will contribute Rs 1,000 per month and this will continue for next 20 months (equal to number of people in the group). In this group there will be one organizer, who will take the pain of fixing the meetings, collecting money from each other and then doing other procedures. So each month all these 20 people will meet on a particular day and deposit Rs 1,000 each. That will make a total of Rs 20,000 every month.Now there will be a bid on who will take this money. Naturally there will be few people who are in need of big amount because of some reason like some big expenses, liquidity crunch, business problem, Beti ki Shaadi etc etc Out of all the people who are in need of money, someone will bid the lowest amount, depending on how desperate he is for this money. The person who bids for the lowest amount wins the bid. Suppose out of total 3 people who bid for 18,000, 17,000 and Rs 16,000, the one who bids the lowest will win.In this case it’s the person who has bid Rs 16,000. There will also be â€Å"organizer charges† which are around 5% (standard) of the total amount, so in this case its 5% of Rs 20,000, which is Rs 1,000. So out of the total 16,000 which this winner was going to get, Rs 1,000 will be deducted and the winner will get only Rs 15,000, Rs 1,000 will be organizer charges and Rs 4,000 is the profit, which will be shared by each and every member (all 20 people), it comes out to be Rs 200 per person, and it will be given back to all 20 members.So here you can see that the main winner took a big loss because of his desperate need of getting the money and others benefitted by it. So each person actually paid just 800, not 1,000 in this case (they got 200 back). Note that when a person takes the money after bidding, he can’t bid from next time, only 19 people will be eligible for bidding. Now next month the same thing happens and suppose the best bid was Rs 18,000 , then winner will get 17,000 (after deducting the organizer fees) and the rest 2,000 will be divided back to people (Rs 100 each) . So each person is paying effectively Rs 900.This way each month all the people contribute the money, someone takes the money by bidding lowest, organizer gets his charges and the rest money is divided back to members. You will realize that the person who takes the money at the end will get all the money except organizer fee, as there is no one else to bid now. So the person will get around Rs 19,000 in the end, if you try to find out the returns which he got out of the whole deal, it will depend on two things, how much lower bids were each month and the fees paid to organizer, if bids and charges are very low, then a person will make more money at the cost of other situations.So this is pretty much how a chit fund works, there are various versions of chit funds and how they work , but the idea was to communicate the basic model and how it works. | Online Chit Funds is also running with pace of E-commerce With the advent of ecommerce in India, Chit funds have also started going online. Online chit funds conduct auctions online and subscribers can pay their monthly dues and receive prize am ount online through online transactions including electronic fund transfers. Each member will have an online account through which they can manage their chit funds. 2012-2013 Highlighted News about chit-fund: . Cunning strict approaches adopted by RBI to protect the investors from delusive acts of chit fund companies. 2. Last year in the month of December, The Reserve Bank of India (RBI) warned all the state governments about the mushrooming of chit funds and also written to them to take appropriate actions against them for duping depositors. 3. RBI Governor Duvvuri Subbarao said, â€Å"The responsibility for checking the chit funds and for prosecuting the violation of law is of the state government. We have written to all the state governments to be vigilant about this and to take appropriate action†. . D Subbarao also called for greater awareness among police and the general public for checking the proliferation of the chit funds in the country. 5. On 6th December 2012, Min ister of State for Corporate Affairs RPN Singh said that 87 companies have come under the scanner for alleged irregularities related to chit fund schemes and money circulation in the garb of multi-level marketing. The Registrar of Companies (RoC) and its Regional Directors have been asked to scrutinize the balance sheets and inspect the books of accounts and other records of these 87 companies. . India's market regulator, Securities and Exchange Board of India (Sebi) had banned companies such as Rose Valley and MPS Greenery Developers from accepting deposits from the public. 7. The former chief minister also pointed it out that small savings through post offices and co-operatives has suffered a lot as many people are depositing their money to these chit funds expecting huge return. 8. In Bhubneshwar, The crime branch told that they are making a short documentary to sensitize people about illegal non-banking financial companies (NBFCs).The film will feature a host of financial manage ment companies like Seashore, Ashore and Saffex, whose irregularities were exposed recently. The Economic offences wing (EOW) of the Crime Branch has registered at least 30 cases against several fraud companies in the past six months for embezzling public deposits after giving them false promise of high return. Senior functionaries (Head) of the companies were arrested and their bank accounts being ceased. 9. EOW also making plan to start a toll free number to protect people from fraudulent activities done by chit fund companies. 10.Government making steps towards the projection of model; rules to check chit fund and MLM (Multi-level Marketing) frauds. The central government will soon make stringent provisions in place, like hefty financial penalty, jail terms, de-listing from the registrar of companies (RoC) roster, among others. Who will stop chit funds In October 2012, a women and her elder daughter were running a chit fund, committed suicide by consuming acid in Puthur in Trichy as they were unable to repay their investors. These women had started a Diwali chit fund in the year 2011 and attracted around 300 investors in the area.They had collected around `9lakh from the investors. As per norms, the chit fund company should have repaid the money with interest or given assured gifts to the investors before Diwali of the year 2012. When the investors pressurize the women, they decided to end their lives and consumed poison. Investors are helpless. This is not the only case there are numerous. Most chit fund investors are the rural poor and or small investors. Neither the victimized investors nor the police bring to book the persons responsible. Only the poor agents remain in place from whom the money cannot be recovered.According to Ministry of Corporate Affairs (MCA), there are 4256 listed or registered chit fund companies which are running their business in the country while India chit-fund association estimates that the country has in total 15000 (register ed and unregistered) companies which manage billions of rupees worth of funds. ShriRam Capital, one of the largest players, operates in four southern states and manages over USD 800 million. Some hope that recent hiccups in India’s once-booming microfinance sector, whose rise was led by microcredit, could bring even more business their way.One can imagine how big the business is all over India. Too many regulators could not stop irregularities in chit funds. Everybody agrees that irregularities need to be stopped because these are causing harm to a lot of small investors. But the question is; who will stop it? In 1978, when the RBI banned chit funds, it came under the ministry of corporate affairs as a collective investment scheme. Another way these companies work is through private placement of the non-convertible debentures or collective investment scheme. In this case, SEBI has the power to regulate it.Sahara and many other big names are in on it. Any debenture or private placement cannot be done by more than 50 people. In contrast, these kinds of companies collect money from thousands of investors. If the number of investors of share and debenture is more than 50, it needs to be registered in the market and the SEBI would control it. RBI wants the state government to take steps: In this context, RBI has a different take. Subbarao, Governor, RBI, has advised the state governments to make their law stronger to save common investors from the chit fund trap.It has written letters to the states to develop a definite action plan to take step against these multi levels marketing player. Subbarao explained that RBI has no power to regulate chit funds. So, it has asked state government to take the initiative to prevent the mushrooming of money market agencies. RBI can train police and other legal bodies about chit funds but cannot instruct the police to do so. It is a state subject to plan and executes the prevention process of chit funds. Corporate Affairs ministry looking into it:Union corporate Affairs Minister Sachin Pilot has said that the central government is looking into the issue of some chit funds and the Ponzi scheme that allegedly dupe small investors by using legal loopholes. It would also encourage state government to take necessary action against these firms. These firms are now misusing the loopholes, pilot added. Furthermore he added, â€Å"Our main objective is to protect small investors from these companies, who are taking their (investors) hard earned money. † As many as 87 companies have come under the scanner for alleged irregularities related to chit fund schemes and money circulations.Minister of State for corporate Affairs R. P. N. Singh has informed the Rajya Sabha that the directions have been issued on the basis of specific complaints received by the ministry against these companies, which are â€Å"alleged to be carrying on activities related to prize chit fund and money circulation in the garb of m ulti-level marketing. Legislative hodgepodge: Singh further said that SFIO (Serious Fraud Investigation Office) has recommended setting up of a specific central regulatory agency for the implementation of the prize chit and money circulation scheme (Banning) act, 1978.The act is administered by the Department of Financial services (DFS) which has constituted an Inter-Ministerial Group consisting of representatives from DFS, Ministry of Corporate Affairs (MCA), RBI, Security and Exchange Board of India (SEBI), Department of Consumer Affairs and Central. Report of Ministry of Corporate Affairs: List of Companies not registered but found doing Chit Business Beware of these Companies. Never join them. M/s. P. V. R. Chits (P) Ltd. , B-50, Flatted Factories, Okhla Phase-III, N. Delhi-20. | M/s. Narmal Chits (P) Ltd. , 1427, Gurudwara Road, Kotla Mubarakpur,N.Delhi-3. | M/s. Sahara Chits (P) Ltd. , WZ/A-49, Krishna Park Extension, N. Delhi-18. | M/s. Twenty Second Century Chit Fund (P) Ltd . , 4205-4206, Sant Nagar, Main Road, Rani Bagh, Delhi-34. | M/s. Skylla Chits (P) Ltd. , D-223/115, Laxmi Chambers, Laxmi Nagar, Delhi-92. | M/s. Hari Vimal Chits (P) Ltd. , Shop No. 8, M. R. Market, Rangpuri, N. Delhi-70. | M/s. Merchant Chits (P) Ltd. , CA-24/2, Tagore Garden, N. Delhi-27. | M/s. Mehar Chits (P) Ltd. , IIIrd Floor, 528, Krishna Gali, Katra Neel, Chandni Chowk, Delhi-6| M/s. Vinamar Chits (P) Ltd. , 170-E, Kamla Nagar, Delhi-7. | M/s.Vinamar Chits (P) Ltd. , 272, Hakikat Nagar, Mall Road, Delhi-9. | M/s. Well King Chits (P) Ltd. , C-47, Acharya Niketan, Mayur Vihar, Phase-I,Delhi-91. | M/s. Aegis Chit Fund (P) Ltd. , E-484, Greater Kailash-II, New Delhi-48. | List of Companies which have been debarred from doing any Chit Fund business in Delhi   NAME| ADDRESS| A. G. CHIT FUND PVT. LTD. |    | ARJIT CHITS PVT. LTD. | | BHAGMAL CHITS PVT. LTD. | | CHOJI PRITAM CHITS PVT. LTD. | | DISHTI CHIT FUND PVT. LTD. | DIRECTOR: Sh. Ajay Pandon| DISHTI CHIT FUND PVT. LTD. | DIRECTOR: Sh. Sudarshan Kapoor| EK-ONKAAR CHIT FUND PVT.LTD. | | EROS FIN. ; CHIT FUND PVT. LTD. | | GIRDHAR CHITS PVT. LTD. | | GOLDEN BENEFIT CHITS PVT. LTD. | | J. KRISHNA CHIT FUND PVT. LTD. | | J. V. CHITS PVT. LTD. | | KADS CHIT FUND PVT. LTD. | | KHAJANA CHITSPVT. LTD. | | LEAN CHITS PVT. LTD. | | MINCO CHITS PVT. LTD. | | NIKETAN CHIT FUND PVT. LTD. | | PARVATI CHIT FUND PVT. LTD. | | PARVEEN CHIT FUND PVT. LTD. | | POMA CHIT FUND PVT. LTD. | | PROSPER CHIT FUND PVT. LTD. | | RITESH CHIT FUND PVT. LTD. | | ROHTGI CHIT FUND PVT. LTD. | | ROYAL CHIT FUND PVT. LTD. | | RUHANI CHIT FUND PVT. LTD. | | S. T. S. CHIT FUND PVT.LTD. | | SAFAL CHIT FUND PVT. LTD. | | SATSANGI CHIT FUND PVT. LTD. | | SIMPLICITY CHIT FUND PVT. LTD. | | SUBHASH NAGAR CHIT FUND PVT. LTD. | | TRI NAGAR CHIT FUND PVT. LTD. | | VEDANTA CHIT FUND PVT. LTD. |    | YOG MAYA CHIT FUND PVT. LTD. |    | PARVARISH LEASING ; FIN. (P) LTD| Shop No. 6, Mafare Garden, New Delhi| M. V. A. CHIT FUND (P) LTD. | Shop No. 10, Krishna Mkt. ,Lajpat Nagar,N. Delhi. | HONOUR CHITS (P) LTD. | 2352, Sevak Bhawan,IIIrd Floor, Shop No. 9,Beadon Pura,Karol Bagh, N. Delhi. | * Source Ministry of corporate AffairsBenefits of Chit funds: Chit Fund is an attractive Investment Option which caters to people from all walks of life. It is specifically beneficial to the Salaried Class, Professionals, Businessmen and Self Employed. The uniqueness of Chit Fund as a method of Financial Planning stems from the fact that, it is both a tool for saving and borrowing. In other words, it serves the dual purpose of being an investment for your savings and in times of need the Subscriber can bid for the Prize Amount in order to meet any unexpected expenditure. The benefits of Investing in Chit Fund are numerous. You can choose how much you want to save per month. Chit funds companies offers chits of various denominations and monthly subscriptions amount ranges from Rs 2500/=(Chit value Rs 1 lakh) to monthly subscription of Rs 1,25,000. * The rate of return is very high compared to other Investment Options and it is also secure form of Investment. * Your Monthly payments will be the Chit Subscription Amount minus the Dividend. The details of the Dividend entitled for Deduction and the Balance Amount payable shall be informed every month, which is mandatory. It inculcates the habit of saving and setting apart a particular amount every month towards investment for a rainy day. * It is good for the Housewife to keep or save their small savings in Chit funds as they will get the money at the time of utmost financial need for household purposes. * It is generally used by housewives, employees of same company, peer groups, friends, and family members or some associations. * If it is used in proper or genuine way then it is makes a worth to invest in chit funds (Organized or unorganized). Drawbacks: Chit-funds do not offer any pre-determined or fixed returns. * Higher returns are earned when there are more nu mber of members in the group or if the duration of the scheme is longer. * One would earn more, when more members need emergency funds. Thus returns cannot be calculated and decided when one joins the scheme. * No security in unregistered chit fund companies. So there are more chances of getting hoax by these fraud companies. * Organizer gets benefited more from your savings. * No guarantee if fixed returns. * In chits interest earnings are lower than Fixed deposits (FD). High degree of risk is associated with chits, so relying on chit funds for saving could be more dangerous. * Chit does not make money; it is just a mechanism for liquidity and emergency funds. * Many chit fund owners are collecting huge volume of money from the common people by making false promises to them. Many poor people of our state are being allured by these chit fund owners and depositing their hard-earned money. But the people are not getting back returns for their investments How to be a Safe investor in C hit Funds:With the plethora of chit fund companies around, the safety of a chit fund lies in choosing the right one. In a registered chit fund company, under legal binding, the activities are regulated and institutionalized by the Chit Fund Act. And hence could be considered safe. However, other unregistered companies operating informally do exist. It has been also seen that depositors are being lured by chit funds companies or firms with higher returns than what banks offer them. These companies are also flourishing in the rural belts where banking penetration is low.One should carefully analyze the pros and cons before making investment in chit funds. Therefore one needs to exercise caution while choosing where he desires to invest. Chit funds definitely are an attractive option for regular saving. It inculcates a disciplined approach to financial planning. It has the added advantage of bringing a combination of savings as well as hassle free borrowing. This dual purpose investmen t tool could be a friend in need at times of unexpected financial emergencies. Thence BE SAFE AND BE SELECTIVE while going for any chit fund schemes. Contemporary Issue on Chit Funds -â€Å"The Invincible† An contemporary issue report on CHIT FUNDS â€Å"THE INVICIBLE† 2013-2014 Made by : Fakhruddin Badshah PREFACE This document sketches the the meaning, introduction, overview,its working,online chit funds, I threw some light on latest news about this sector and also tried to cover the latest upsteram and downsteam aspects of this sector (chit fund companies). My aim of writing on this issue is who will going to stop the fraudulant activities being done by this companies. I chose this segemnt for my contemporay because this is going very common among the people in today’s time.So I thought lets give away the the detail of this segment to the people. With the help of this document people will come to know what exactly going on in this domain. This sector is expanding rapidly like anything. This developments has become a catalyst for the growth of vigourous chit fund companies in all over India. So what provisions should be made to curb the alleged false practices done by t hese companies or segment. Thus it is the to think and act on it to protect the interest of small investors and their hard earned incomes. Index Introduction| 5-7| Overview of chit fund| 8|How chit fund works| 9-11| 2012-2013 Highlighted News about chit-fund| 12-13| Who will stop chit funds? | 14-18| Report of MCA| 18-21| Benefits| 21-22| Drawbacks| 23| Safety from Chit funds| 24| CHIT FUNDS – â€Å"The Invincible† Introduction: A chit fund is a type of savings scheme practiced in India, besides other forms of savings scheme offered by various public and private sector banks, post offices, insurance corporations etc. Chit Funds are indigenous financial institutions in India that cater to the financial needs of the low-income households, which have been excluded from the formal financial system. Chit†, in the legal purview, means a transaction whether called chit, chit fund, chitty, kuri or by any other name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money (or a certain quantity of grain instead in the case of villages) by way of periodical installments over a definite period and that each such subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to the prize amount.In simple words, A chit fund is a savings-borrowing scheme, in which a group of people enter into an agreement to contribute fixed amounts periodically, for a specified period of time. The amount so collected (or the chit value) is distributed among each of the persons in turns, which is determined by way of lots or an auction. Chit funds provide an opportunity to save excess cash on a daily, weekly or monthly basis, and give an easy access to it in case of emergency. Chit funds are the Indian equivalent of the Rotating Savings and Credit Associations (ROSCA) that are famous thr oughout the world.ROSCAs are a means to â€Å"save and borrow† simultaneously. It is considered one of the best instruments to cater to the needs of the poor. It enables poor people to convert their small savings into lump sums. The concept of chit funds originated more than 1000 years ago. Initially it was in the form of an informal association of traders and households within communities, wherein the members contributed some money in return for an accumulated sum at the end of the tenure. Participation in Chit funds was mainly for the purpose of purchasing some property or, in other words, for â€Å"consumption† purposes.However, in recent times, there have been tremendous alterations in the constitution and functioning of Chit funds. While in most places ROSCAs are user-owned and organized informally, in India, chit funds have been formally institutionalized as well. Legally recognized firms provide a variety of chit schemes. A Chit Fund can either be legally regist ered or unregistered. Registered Chit Funds, as the name suggests are being regulated under the various Chit Fund acts. While unregistered Chit Funds are unorganized and mostly run by the close friends, relatives or family members of the investor.Unregistered Chit Funds which exceed 100 ($2) in value are illegal in India, although it is very well known that unregistered Chit Fund industry is very popular in India, mainly in the rural and semi-urban area, where people have very little access to the banking services and where financial illiteracy is more. The regulation of the Chit Fund industry was put in place by the Government of India to address the problem of misuse of informal Chit Funds by unscrupulous promoters and founders running away with the participant’s funds, leaving the members with little recourse to retrieve their money back.Chit funds in India are governed by various state or central laws. Organized chit fund schemes are required to register with the Registra r or Firms, Societies and Chits. Various Chit Fund Acts governing the industry in India are as under: * Union Government – Chit Funds Act 1982 (Except the State of Jammu and Kashmir) * Kerala – Kerala Chitties Act 1975 * Tamil Nadu – Tamil Nadu Chit Funds Act, 1961 * Karnataka: The Chit Funds (Karnataka) Rules, 1983 * Andhra Pradesh – The Andhra Pradesh Chit Funds Act, 1971 * New Delhi- The Chit Funds Act,1982 and Delhi Chit Funds Rules, 2007 * Maharashtra – Maharashtra Chit Fund Act 1975 Uttar Pradesh: Uttar Pradesh Chit Funds Act, 1975 * Goa, Daman & Diu: The Goa, Daman and Diu Chit Funds Act, 1973 * Pudducherry/Pondicherry: The Pondicherry Chit Funds Act, 1966. An overview of chit funds: The economic development of a country depends upon the availability of resources. The main activities that contribute to the growth are production and employment. Production depends upon the inputs of the factors such as finance, raw materials, labor etc. The mo st important here bring finance, which is the chief mobilized of all the factors of production.In a money economy, finance for development initially comes from private savings. These private savings give to the secondary deposits; this is where the financial institutions come into picture. Financial institutions occupy a central place in mobilizing savings from the people and make it available to the trade, commerce and industries either as a capital or loans. The non banking sector comprises of money lenders, indigenous bankers, pawn brokers, nidhis, â€Å"chit funds† etc.The origin of chit funds can be traced way back to the 17th century when the economic wizards of state of Malabar (now known as the state of Kerala) started this activity. Those were the people who actually founded this financial institution. It became so popular and numerous that people started adopting this activity as a profession by the 18th century all over. As the chit industry grew the number of peop le involved in this industry also grew. This gave rise to many misconceptions, frauds, mismanagement etc. , in this industry.To prevent this State Government of Travancore took the first initiative and introduced the first Chit Fund Regulation being the Chit Fund Act 1914. One important regulation introduced by this act was that of a commission payable to the foreman. The Act brought about a ceiling limit on the commission payable to the foreman that is 5% maximum which is still the same even to this date. How chit funds works: Chit funds which are popular from a very long time but still some people don’t know how exactly this chit fund works and invest their money illogically.This can be understood by the following procedure: Let’s say there are 20 people who come together and form a group. Each one will contribute Rs 1,000 per month and this will continue for next 20 months (equal to number of people in the group). In this group there will be one organizer, who will take the pain of fixing the meetings, collecting money from each other and then doing other procedures. So each month all these 20 people will meet on a particular day and deposit Rs 1,000 each. That will make a total of Rs 20,000 every month.Now there will be a bid on who will take this money. Naturally there will be few people who are in need of big amount because of some reason like some big expenses, liquidity crunch, business problem, Beti ki Shaadi etc etc Out of all the people who are in need of money, someone will bid the lowest amount, depending on how desperate he is for this money. The person who bids for the lowest amount wins the bid. Suppose out of total 3 people who bid for 18,000, 17,000 and Rs 16,000, the one who bids the lowest will win.In this case it’s the person who has bid Rs 16,000. There will also be â€Å"organizer charges† which are around 5% (standard) of the total amount, so in this case its 5% of Rs 20,000, which is Rs 1,000. So out of the total 16,000 which this winner was going to get, Rs 1,000 will be deducted and the winner will get only Rs 15,000, Rs 1,000 will be organizer charges and Rs 4,000 is the profit, which will be shared by each and every member (all 20 people), it comes out to be Rs 200 per person, and it will be given back to all 20 members.So here you can see that the main winner took a big loss because of his desperate need of getting the money and others benefitted by it. So each person actually paid just 800, not 1,000 in this case (they got 200 back). Note that when a person takes the money after bidding, he can’t bid from next time, only 19 people will be eligible for bidding. Now next month the same thing happens and suppose the best bid was Rs 18,000 , then winner will get 17,000 (after deducting the organizer fees) and the rest 2,000 will be divided back to people (Rs 100 each) . So each person is paying effectively Rs 900.This way each month all the people contribute the money, someone takes the money by bidding lowest, organizer gets his charges and the rest money is divided back to members. You will realize that the person who takes the money at the end will get all the money except organizer fee, as there is no one else to bid now. So the person will get around Rs 19,000 in the end, if you try to find out the returns which he got out of the whole deal, it will depend on two things, how much lower bids were each month and the fees paid to organizer, if bids and charges are very low, then a person will make more money at the cost of other situations.So this is pretty much how a chit fund works, there are various versions of chit funds and how they work , but the idea was to communicate the basic model and how it works. | Online Chit Funds is also running with pace of E-commerce With the advent of ecommerce in India, Chit funds have also started going online. Online chit funds conduct auctions online and subscribers can pay their monthly dues and receive prize am ount online through online transactions including electronic fund transfers. Each member will have an online account through which they can manage their chit funds. 2012-2013 Highlighted News about chit-fund: . Cunning strict approaches adopted by RBI to protect the investors from delusive acts of chit fund companies. 2. Last year in the month of December, The Reserve Bank of India (RBI) warned all the state governments about the mushrooming of chit funds and also written to them to take appropriate actions against them for duping depositors. 3. RBI Governor Duvvuri Subbarao said, â€Å"The responsibility for checking the chit funds and for prosecuting the violation of law is of the state government. We have written to all the state governments to be vigilant about this and to take appropriate action†. . D Subbarao also called for greater awareness among police and the general public for checking the proliferation of the chit funds in the country. 5. On 6th December 2012, Min ister of State for Corporate Affairs RPN Singh said that 87 companies have come under the scanner for alleged irregularities related to chit fund schemes and money circulation in the garb of multi-level marketing. The Registrar of Companies (RoC) and its Regional Directors have been asked to scrutinize the balance sheets and inspect the books of accounts and other records of these 87 companies. . India's market regulator, Securities and Exchange Board of India (Sebi) had banned companies such as Rose Valley and MPS Greenery Developers from accepting deposits from the public. 7. The former chief minister also pointed it out that small savings through post offices and co-operatives has suffered a lot as many people are depositing their money to these chit funds expecting huge return. 8. In Bhubneshwar, The crime branch told that they are making a short documentary to sensitize people about illegal non-banking financial companies (NBFCs).The film will feature a host of financial manage ment companies like Seashore, Ashore and Saffex, whose irregularities were exposed recently. The Economic offences wing (EOW) of the Crime Branch has registered at least 30 cases against several fraud companies in the past six months for embezzling public deposits after giving them false promise of high return. Senior functionaries (Head) of the companies were arrested and their bank accounts being ceased. 9. EOW also making plan to start a toll free number to protect people from fraudulent activities done by chit fund companies. 10.Government making steps towards the projection of model; rules to check chit fund and MLM (Multi-level Marketing) frauds. The central government will soon make stringent provisions in place, like hefty financial penalty, jail terms, de-listing from the registrar of companies (RoC) roster, among others. Who will stop chit funds In October 2012, a women and her elder daughter were running a chit fund, committed suicide by consuming acid in Puthur in Trichy as they were unable to repay their investors. These women had started a Diwali chit fund in the year 2011 and attracted around 300 investors in the area.They had collected around `9lakh from the investors. As per norms, the chit fund company should have repaid the money with interest or given assured gifts to the investors before Diwali of the year 2012. When the investors pressurize the women, they decided to end their lives and consumed poison. Investors are helpless. This is not the only case there are numerous. Most chit fund investors are the rural poor and or small investors. Neither the victimized investors nor the police bring to book the persons responsible. Only the poor agents remain in place from whom the money cannot be recovered.According to Ministry of Corporate Affairs (MCA), there are 4256 listed or registered chit fund companies which are running their business in the country while India chit-fund association estimates that the country has in total 15000 (register ed and unregistered) companies which manage billions of rupees worth of funds. ShriRam Capital, one of the largest players, operates in four southern states and manages over USD 800 million. Some hope that recent hiccups in India’s once-booming microfinance sector, whose rise was led by microcredit, could bring even more business their way.One can imagine how big the business is all over India. Too many regulators could not stop irregularities in chit funds. Everybody agrees that irregularities need to be stopped because these are causing harm to a lot of small investors. But the question is; who will stop it? In 1978, when the RBI banned chit funds, it came under the ministry of corporate affairs as a collective investment scheme. Another way these companies work is through private placement of the non-convertible debentures or collective investment scheme. In this case, SEBI has the power to regulate it.Sahara and many other big names are in on it. Any debenture or private placement cannot be done by more than 50 people. In contrast, these kinds of companies collect money from thousands of investors. If the number of investors of share and debenture is more than 50, it needs to be registered in the market and the SEBI would control it. RBI wants the state government to take steps: In this context, RBI has a different take. Subbarao, Governor, RBI, has advised the state governments to make their law stronger to save common investors from the chit fund trap.It has written letters to the states to develop a definite action plan to take step against these multi levels marketing player. Subbarao explained that RBI has no power to regulate chit funds. So, it has asked state government to take the initiative to prevent the mushrooming of money market agencies. RBI can train police and other legal bodies about chit funds but cannot instruct the police to do so. It is a state subject to plan and executes the prevention process of chit funds. Corporate Affairs ministry looking into it:Union corporate Affairs Minister Sachin Pilot has said that the central government is looking into the issue of some chit funds and the Ponzi scheme that allegedly dupe small investors by using legal loopholes. It would also encourage state government to take necessary action against these firms. These firms are now misusing the loopholes, pilot added. Furthermore he added, â€Å"Our main objective is to protect small investors from these companies, who are taking their (investors) hard earned money. † As many as 87 companies have come under the scanner for alleged irregularities related to chit fund schemes and money circulations.Minister of State for corporate Affairs R. P. N. Singh has informed the Rajya Sabha that the directions have been issued on the basis of specific complaints received by the ministry against these companies, which are â€Å"alleged to be carrying on activities related to prize chit fund and money circulation in the garb of m ulti-level marketing. Legislative hodgepodge: Singh further said that SFIO (Serious Fraud Investigation Office) has recommended setting up of a specific central regulatory agency for the implementation of the prize chit and money circulation scheme (Banning) act, 1978.The act is administered by the Department of Financial services (DFS) which has constituted an Inter-Ministerial Group consisting of representatives from DFS, Ministry of Corporate Affairs (MCA), RBI, Security and Exchange Board of India (SEBI), Department of Consumer Affairs and Central. Report of Ministry of Corporate Affairs: List of Companies not registered but found doing Chit Business Beware of these Companies. Never join them. M/s. P. V. R. Chits (P) Ltd. , B-50, Flatted Factories, Okhla Phase-III, N. Delhi-20. | M/s. Narmal Chits (P) Ltd. , 1427, Gurudwara Road, Kotla Mubarakpur,N.Delhi-3. | M/s. Sahara Chits (P) Ltd. , WZ/A-49, Krishna Park Extension, N. Delhi-18. | M/s. Twenty Second Century Chit Fund (P) Ltd . , 4205-4206, Sant Nagar, Main Road, Rani Bagh, Delhi-34. | M/s. Skylla Chits (P) Ltd. , D-223/115, Laxmi Chambers, Laxmi Nagar, Delhi-92. | M/s. Hari Vimal Chits (P) Ltd. , Shop No. 8, M. R. Market, Rangpuri, N. Delhi-70. | M/s. Merchant Chits (P) Ltd. , CA-24/2, Tagore Garden, N. Delhi-27. | M/s. Mehar Chits (P) Ltd. , IIIrd Floor, 528, Krishna Gali, Katra Neel, Chandni Chowk, Delhi-6| M/s. Vinamar Chits (P) Ltd. , 170-E, Kamla Nagar, Delhi-7. | M/s.Vinamar Chits (P) Ltd. , 272, Hakikat Nagar, Mall Road, Delhi-9. | M/s. Well King Chits (P) Ltd. , C-47, Acharya Niketan, Mayur Vihar, Phase-I,Delhi-91. | M/s. Aegis Chit Fund (P) Ltd. , E-484, Greater Kailash-II, New Delhi-48. | List of Companies which have been debarred from doing any Chit Fund business in Delhi   NAME| ADDRESS| A. G. CHIT FUND PVT. LTD. |    | ARJIT CHITS PVT. LTD. | | BHAGMAL CHITS PVT. LTD. | | CHOJI PRITAM CHITS PVT. LTD. | | DISHTI CHIT FUND PVT. LTD. | DIRECTOR: Sh. Ajay Pandon| DISHTI CHIT FUND PVT. LTD. | DIRECTOR: Sh. Sudarshan Kapoor| EK-ONKAAR CHIT FUND PVT.LTD. | | EROS FIN. ; CHIT FUND PVT. LTD. | | GIRDHAR CHITS PVT. LTD. | | GOLDEN BENEFIT CHITS PVT. LTD. | | J. KRISHNA CHIT FUND PVT. LTD. | | J. V. CHITS PVT. LTD. | | KADS CHIT FUND PVT. LTD. | | KHAJANA CHITSPVT. LTD. | | LEAN CHITS PVT. LTD. | | MINCO CHITS PVT. LTD. | | NIKETAN CHIT FUND PVT. LTD. | | PARVATI CHIT FUND PVT. LTD. | | PARVEEN CHIT FUND PVT. LTD. | | POMA CHIT FUND PVT. LTD. | | PROSPER CHIT FUND PVT. LTD. | | RITESH CHIT FUND PVT. LTD. | | ROHTGI CHIT FUND PVT. LTD. | | ROYAL CHIT FUND PVT. LTD. | | RUHANI CHIT FUND PVT. LTD. | | S. T. S. CHIT FUND PVT.LTD. | | SAFAL CHIT FUND PVT. LTD. | | SATSANGI CHIT FUND PVT. LTD. | | SIMPLICITY CHIT FUND PVT. LTD. | | SUBHASH NAGAR CHIT FUND PVT. LTD. | | TRI NAGAR CHIT FUND PVT. LTD. | | VEDANTA CHIT FUND PVT. LTD. |    | YOG MAYA CHIT FUND PVT. LTD. |    | PARVARISH LEASING ; FIN. (P) LTD| Shop No. 6, Mafare Garden, New Delhi| M. V. A. CHIT FUND (P) LTD. | Shop No. 10, Krishna Mkt. ,Lajpat Nagar,N. Delhi. | HONOUR CHITS (P) LTD. | 2352, Sevak Bhawan,IIIrd Floor, Shop No. 9,Beadon Pura,Karol Bagh, N. Delhi. | * Source Ministry of corporate AffairsBenefits of Chit funds: Chit Fund is an attractive Investment Option which caters to people from all walks of life. It is specifically beneficial to the Salaried Class, Professionals, Businessmen and Self Employed. The uniqueness of Chit Fund as a method of Financial Planning stems from the fact that, it is both a tool for saving and borrowing. In other words, it serves the dual purpose of being an investment for your savings and in times of need the Subscriber can bid for the Prize Amount in order to meet any unexpected expenditure. The benefits of Investing in Chit Fund are numerous. You can choose how much you want to save per month. Chit funds companies offers chits of various denominations and monthly subscriptions amount ranges from Rs 2500/=(Chit value Rs 1 lakh) to monthly subscription of Rs 1,25,000. * The rate of return is very high compared to other Investment Options and it is also secure form of Investment. * Your Monthly payments will be the Chit Subscription Amount minus the Dividend. The details of the Dividend entitled for Deduction and the Balance Amount payable shall be informed every month, which is mandatory. It inculcates the habit of saving and setting apart a particular amount every month towards investment for a rainy day. * It is good for the Housewife to keep or save their small savings in Chit funds as they will get the money at the time of utmost financial need for household purposes. * It is generally used by housewives, employees of same company, peer groups, friends, and family members or some associations. * If it is used in proper or genuine way then it is makes a worth to invest in chit funds (Organized or unorganized). Drawbacks: Chit-funds do not offer any pre-determined or fixed returns. * Higher returns are earned when there are more nu mber of members in the group or if the duration of the scheme is longer. * One would earn more, when more members need emergency funds. Thus returns cannot be calculated and decided when one joins the scheme. * No security in unregistered chit fund companies. So there are more chances of getting hoax by these fraud companies. * Organizer gets benefited more from your savings. * No guarantee if fixed returns. * In chits interest earnings are lower than Fixed deposits (FD). High degree of risk is associated with chits, so relying on chit funds for saving could be more dangerous. * Chit does not make money; it is just a mechanism for liquidity and emergency funds. * Many chit fund owners are collecting huge volume of money from the common people by making false promises to them. Many poor people of our state are being allured by these chit fund owners and depositing their hard-earned money. But the people are not getting back returns for their investments How to be a Safe investor in C hit Funds:With the plethora of chit fund companies around, the safety of a chit fund lies in choosing the right one. In a registered chit fund company, under legal binding, the activities are regulated and institutionalized by the Chit Fund Act. And hence could be considered safe. However, other unregistered companies operating informally do exist. It has been also seen that depositors are being lured by chit funds companies or firms with higher returns than what banks offer them. These companies are also flourishing in the rural belts where banking penetration is low.One should carefully analyze the pros and cons before making investment in chit funds. Therefore one needs to exercise caution while choosing where he desires to invest. Chit funds definitely are an attractive option for regular saving. It inculcates a disciplined approach to financial planning. It has the added advantage of bringing a combination of savings as well as hassle free borrowing. This dual purpose investmen t tool could be a friend in need at times of unexpected financial emergencies. Thence BE SAFE AND BE SELECTIVE while going for any chit fund schemes.

Walt Whitman and the Civil War

Walt Whitman and the Civil War The poet Walt Whitman wrote about the Civil War extensively.  His heartfelt observation of life in wartime Washington made its way into poems, and he also wrote articles for newspapers and a number of notebook entries only published decades later. He had worked for years as a journalist, yet Whitman did not cover  the conflict as a regular newspaper correspondent. His role as an eyewitness to the conflict was unplanned. When a newspaper casualty list indicated that his brother serving in a New York regiment had been wounded in late 1862, Whitman traveled to Virginia to find him. Whitmans brother George had only been slightly wounded. But the experience of seeing army hospitals made a deep impression, and Whitman felt compelled to move from Brooklyn to Washington to become involved with the Union war effort as a hospital volunteer. After securing a job as a government clerk, Whitman spent his off-duty hours visiting hospital wards filled with soldiers, comforting the wounded and the sick. In Washington, Whitman was also perfectly positioned to observe the workings of the government, movements of troops, and the daily comings and goings of a man he greatly admired, President Abraham Lincoln. At times Whitman would contribute articles to newspapers, such as a detailed report of the scene at Lincoln’s second inaugural address. But Whitman’s experience as a witness to the war was mostly important as an inspiration for poetry. A collection of poems titled Drum Taps, was published after the war as a book. The poems contained in it ultimately appeared as an appendix to later editions of Whitmans masterpiece, Leaves of Grass. Family Ties to the War During the 1840s and 1850s, Whitman had been following politics in America closely. Working as a journalist in New York City, he no doubt followed the national debate over the greatest issue of the time, slavery. Whitman became a supporter of Lincoln during the 1860 presidential campaign. He also saw Lincoln speak from a hotel window in early 1861, when the president-elect passed through New York City on the way to his first inauguration. When Fort Sumter was attacked in April 1861 Whitman was outraged. In 1861, when Lincoln called for volunteers to defend the Union, Whitman’s brother George enlisted in the 51st New York Volunteer Infantry. He would serve for the entire war, eventually earning an officer’s rank, and would fight at Antietam, Fredericksburg, and other battles. Following the slaughter at Fredericksburg, Walt Whitman was reading casualty reports in the New York Tribune and saw what he believed to be a misspelled rendering of his brother’s name. Fearing that George had been wounded, Whitman traveled southward to Washington. Unable to find his brother at military hospitals where he inquired, he traveled to the front in Virginia, where he discovered that George had only been very slightly wounded. While at Falmouth, Virginia, Walt Whitman saw a horrifying sight beside a field hospital, a pile of amputated limbs. He came to empathize with the intense suffering of wounded soldiers, and during two weeks in December 1862, he spent visiting his brother he resolved to begin helping in military hospitals. Work as a Civil War Nurse Wartime Washington contained a number of military hospitals which took in thousands of wounded and ill soldiers. Whitman moved to the city in early 1863, taking a job as a government clerk. He began making the rounds in hospitals, consoling the patients and distributing writing paper, newspapers, and treats such as fruits and candy. From 1863 to the spring of 1865 Whitman spent time with hundreds, if not thousands, of soldiers. He helped them write letters home. And he wrote many letters to his friends and relatives about his experiences. Whitman later said that being around the suffering soldiers had been beneficial to him, as it somehow restored his own faith in humanity. Many of the ideas in his poetry, about the nobility of common people, and the democratic ideals of America, he saw reflected in the wounded soldiers who had been farmers and factory workers. Mentions in Poetry The poetry Whitman wrote had always been inspired by the changing world around him, and so his eyewitness experience of the Civil War naturally began to infuse new poems. Before the war, he had issued three editions of Leaves of Grass. But he saw fit to issue an entirely new book of poems, which he called Drum Taps. The printing of Drum Taps began in New York City in the spring of 1865, as the war was winding down. But then the assassination  of Abraham Lincoln prompted Whitman to postpone publication so he could include material about Lincoln and his passing. In the summer of 1865, after the war’s end, he wrote two poems inspired by Lincoln’s death, â€Å"When Lilacs Last in the Dooryard Bloom’d† and â€Å"O Captain! My Captain!† Both poems were included in Drum Taps, which was published in the fall of 1865. The entirety of Drum Taps was added to later editions of Leaves of Grass.