Anshul's Diary: An alternative to reservation

Anshul's Diary: An alternative to reservation

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.

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.

At KMBL Mumbai

Back at Mumbai after two years. Three weeks since joined Kotak. Will be posted at Ahmedabad after a month's time. Til then, at mumbai- learning the ropes.......

Kiran was here when i joined. He is presently at Kottayam. Prannoy has joined as a colleague too.

I am staying at Chummery (company managed bachelor accomodation).

Finidng the work environment good. Feel at ease.

Lerning credit at fast pace. Just did a CC case of AL Traders. Majedaar hote hain yeh financial management ke tarike- there are two firms running from the same premises, and the proprietor is same. Based upon the mood, availability of book, and bank funding, the sales are booked into one or the other.

Today the KMBL team has gone for campus recruitment at IRMA. Expected to pick two-three.

Last week at CINI, kolkata

Today is a very busy day, and i have fixed a lot fo work for myself. Have to organise files and folders, have to settle the accounts with ARC accountant, and have to collect CA material, and then have to go and attend a meeting with Philips at 3 pm at CCRC. Chandreyee wants me to take some cash and drop it at CINI Reception counter. So. lets see how much of it can be done.

Lost My Mobile- Nokia 6030- at Kolkata

I have lost my Nokia 6030 mobile four days ago (in a bus). As soon as i come to know of it, I called my number from a co-passenger's mobile, but no body picked up, and i couldn't hear the ringtone also. That meant that the instrument was not in the bus, and I have lost it while getting in to the bus.

I quickly registered the case with the nearest police station at Behala (kolkata). I also tried calling my number, but the call went blank. There was a ray of hope when some one on the other side picked up, but only to put it off. I contacted my service provider and got the calls blocked.

One of my colleagues said that the Nokia phones come with an insuarnce cover, but on enquiry i found that the insurance was offered in 2004, and the heavy rush of demand made nokia withdraw the offer.

Now, I am buying a new one again, and the service provider (AIRTEL) is giving me the SIM (for same number) free of cost.

Resignation accepted at CINI Kolkata

Today i received the acceptance of my resignation from CINI. Also had a meeting with Priya from HR Department of ICICI Bank. She has sent me an URL where i am supposed to take a pshychometric test. Once that is done, she said she will complete the formalities within a week.

I am thinking which one to choose between Kotak Mahindra Bank and ICICI.