So I'm Writing a Thing Part 4- The Library
1 year ago
Thursday, May 25, 2006
An alternative to reservation
The idea of helping the backward classes is admirable and must be followed. But rReservation is a bad way of putting it. If the incentivisation is done bsed upon the perceived weightage of backwardness, it might help. But reserving the seats totally may not. Let me explain.
The reservation means dividing the seats in parts, wherein select candidates from General Category (GC) can not compete for specific seats. So, it is reverse discrimination. The discrimination becomes anti democratric when the seats remain unavailable even if the candidates from other than GC are found unsuitable for the reserved seats. The seats will go vacant, but won't be filled in by any other.
Now, consider an alternative. The reservation is not given on seats. Instead, the candidates will be given additional marks based upon their social (Caste and religion), economic (economic status), geographical (accessible and inaccessible areas), physical (physically challenged), gender (girl/ boy) and cultural background (tribes). Everyone competes for each seat, with few who belong to backward community getting additional marks for their backwardness. The main examination may carry 80% weightage, with 20% coming from the background.
So, if I am a well-to-do physically-fit brahmin boy from Delhi I will get zero additional marks. If I am a poor physically challenged tribal girl from Bastar I will get 20 marks (other will lie in between). If the boy gets 61 out of 80 marks in main exam, and the girl gets 42 marks, the girl qualifies. If girl gets 40 marks, the boy qualifies. There is no reservation of seats, just an incentive provided for cross-nullifying the effect of reductory factors in one's background.
Another argument is- If reservation is brought to 50%, does it mean that rest 50% goes to GC. NO, it is not so. The moment a non GC candidate gets qualifying marks equal to a GC candidate, he/ she moves on to occupy a non-reserved seat. This is nothing else but punishing the talent.
More on reservation in next blog.
The reservation means dividing the seats in parts, wherein select candidates from General Category (GC) can not compete for specific seats. So, it is reverse discrimination. The discrimination becomes anti democratric when the seats remain unavailable even if the candidates from other than GC are found unsuitable for the reserved seats. The seats will go vacant, but won't be filled in by any other.
Now, consider an alternative. The reservation is not given on seats. Instead, the candidates will be given additional marks based upon their social (Caste and religion), economic (economic status), geographical (accessible and inaccessible areas), physical (physically challenged), gender (girl/ boy) and cultural background (tribes). Everyone competes for each seat, with few who belong to backward community getting additional marks for their backwardness. The main examination may carry 80% weightage, with 20% coming from the background.
So, if I am a well-to-do physically-fit brahmin boy from Delhi I will get zero additional marks. If I am a poor physically challenged tribal girl from Bastar I will get 20 marks (other will lie in between). If the boy gets 61 out of 80 marks in main exam, and the girl gets 42 marks, the girl qualifies. If girl gets 40 marks, the boy qualifies. There is no reservation of seats, just an incentive provided for cross-nullifying the effect of reductory factors in one's background.
Another argument is- If reservation is brought to 50%, does it mean that rest 50% goes to GC. NO, it is not so. The moment a non GC candidate gets qualifying marks equal to a GC candidate, he/ she moves on to occupy a non-reserved seat. This is nothing else but punishing the talent.
More on reservation in next blog.
How Banks do credit? Ahmedabad
Banking, and specially credit is a specialised function. After having worked on around 15 proposals in last 40 days I can say with confidence that when the non-bankers find it hard to grasp what banking is all about, we must sympathise with them. I mean, Banking has been made so jargon led and regulated that a lay man will get in to the trap.
For example, a person undertands simple interest rate and compounding interest rate. One can also make sense of flat interest rate. But what is "interest rate at monthly rests"? It is a mix of simple interest rate and compounding interest rate. In otherwords, it is the simple interest rate compounded monthly.
Another example- There is something called processing fee and file charge. The borrower bears one or both in each case (in case of term loans, there may not be such income for bank in case of cash credit proposals, but that depends on client's profile). So, customer pays 1-2% as processing fees/ file charges. Then comes the valuation report and title clearance expenses, which may be anywhere between Rs. 20,000/- to Rs. 50,000/-. This is also borne by the borrower. Last one is the mortgage registratioon charges, which fluctuate between 0.25% to 1.50%, depending upon the state statutes.
If the loan is disbursed (i have doubts, and keep the reservation intact till the time payment reaches the borrower), there will be Pre-EMI generated by the SYSTEM. Then there will be late charges on registration fee, the cheque bounce charges if something goes wrong (like, if there is an extra dot in the signature, if account is under funded, etc etc - please note that ETC means end of thinking capacity). God forbid if the borrower is late in repaying installment, there will be penal interest charged @36% per month. There is generally a pre-payment charge also, charged @ 3% of the prepaid amount so that the borrower is discouraged to repay in advance.
So, Banks take care of every way that the borrower can default and have put some restrictions by way of financial charges.
Will write more on the way I am being modeled in looking at credi proposals in next blog. On the personal front, I am working with Kotak mahindra Bank, Ahmedabad. I came to this city on 10th April 2006 and I am staying with Harsh and Gandhiji.
For example, a person undertands simple interest rate and compounding interest rate. One can also make sense of flat interest rate. But what is "interest rate at monthly rests"? It is a mix of simple interest rate and compounding interest rate. In otherwords, it is the simple interest rate compounded monthly.
Another example- There is something called processing fee and file charge. The borrower bears one or both in each case (in case of term loans, there may not be such income for bank in case of cash credit proposals, but that depends on client's profile). So, customer pays 1-2% as processing fees/ file charges. Then comes the valuation report and title clearance expenses, which may be anywhere between Rs. 20,000/- to Rs. 50,000/-. This is also borne by the borrower. Last one is the mortgage registratioon charges, which fluctuate between 0.25% to 1.50%, depending upon the state statutes.
If the loan is disbursed (i have doubts, and keep the reservation intact till the time payment reaches the borrower), there will be Pre-EMI generated by the SYSTEM. Then there will be late charges on registration fee, the cheque bounce charges if something goes wrong (like, if there is an extra dot in the signature, if account is under funded, etc etc - please note that ETC means end of thinking capacity). God forbid if the borrower is late in repaying installment, there will be penal interest charged @36% per month. There is generally a pre-payment charge also, charged @ 3% of the prepaid amount so that the borrower is discouraged to repay in advance.
So, Banks take care of every way that the borrower can default and have put some restrictions by way of financial charges.
Will write more on the way I am being modeled in looking at credi proposals in next blog. On the personal front, I am working with Kotak mahindra Bank, Ahmedabad. I came to this city on 10th April 2006 and I am staying with Harsh and Gandhiji.
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