SAVINGS SAVE MONEY FOR LIFE CYCLE NEEDS DO NOT LOOSE YOUR HARD EARNED MONEY, ALWAYS SAVE IN A BANK ACCOUNT SAVING ACCOUNT IN A BANK IS THE KEY TO ALL OTHER SERVICES BANK IS NOW AVAILABLE AT YOUR DOOR STEP Safety , liquidity and profitability should be the investment mantras.

1. SAVINGS, INVESTMENT, BANKS
CAPITAL MARKET, MICRO -INSURANCE
INVESTOR GRIEVANCE REDRESSAL
D.MISHRA
R E S O U R C E P E R S O N
( U N D E R T H E A E G I S O F I N V E S T O R
E D U C A T I O N & P R O T E C T I O N F U N D
M I N I S T R Y O F C O R P O R A T E A F F A I R S )
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ICAI-MCA
Investor Awareness PROGRAM

2. FINANCIAL LITERACY – SIGNIFICANCE
Investor Awareness Program
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Financial literacy plays a crucial role in
financial inclusion, inclusive growth
and sustainable prosperity.
Financial literacy has been accorded
National Priority under Pradhan
Mantri Jan Dhan Yojana( PMJDY).

3. FINANCIAL LITERACY : THE NEED
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Benefits : According to National Strategy for Financial
Education ( NSFE):
 Knowledge and skill: Individuals can take an
informed decision.
 Avoidance of over indebtedness.
 Promoting entrepreneurship.
Financial literacy : to be part of curriculum in
Class VI- XII: Karnataka first state to start in
2009-10.

4. FINANCIAL PLANNING & SAVING
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CARDINAL PRINCIPLES
 Understand Your Expenses
 Do not spend more than your Income
 Plug Non –essential expenditure & Increase your
Savings
 Achieve your Goal with Financial Planning
 Think twice before spending
 The less you spend the more you save
 Save Money for Life-cycle needs
 Save your money in bank accounts

5. WHY SAVINGS
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 SAVINGS SAVE MONEY FOR LIFE CYCLE NEEDS
 DO NOT LOOSE YOUR HARD EARNED MONEY,
ALWAYS SAVE IN A BANK ACCOUNT SAVING
ACCOUNT IN A BANK IS THE KEY TO ALL OTHER
SERVICES
 BANK IS NOW AVAILABLE AT YOUR DOOR STEP

6. Why is Investment Necessary
ABHYUTTHANA FINANCIAL LEARNING
CENTRE , BHUBANESWAR
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Investment helps our money to grow.
 Cushion against inflation
Provides a steady source of income in old age.
Helps us achieve and maintain a certain standard of
living
Helps us to achieve all short term and long term
goals.
 It is all the more necessary with increasing
longevity.

7. Investment Mantras
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 Money Grows with time ( understand
time value of money)
 Reap the benefits of compounding
 Start early and stay invested longer
 Don’t borrow to invest
 Deal with registered intermediaries

8. Investment Mantras
ABHYUTTHANA FINANCIAL LEARNING
CENTRE , BHUBANESWAR
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Follow life-cycle investing
 Read carefully and take informed decisions
Consider investing in IPOs
 PSU IPOs deserve special attention
Invest in Mutual funds, but select the right fund and
scheme
 Don’t invest in dubious schemes

9. Where Not to Invest
ABHYUTTHANA FINANCIAL LEARNING
CENTRE , BHUBANESWAR
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 Chit Funds : Governed by Chit Funds Act, 1982
However there are many such schemes which are
not floated by registered Chit Fund Companies.
 Many times founders running a PONZI SCHEME
and absconding with money.
Multi Level Marketing scheme ( MLM )
Plantation companies

10. Borrowings
Investor Awareness Program
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 MANAGE YOUR DEBT OTHERWISE DEBT WILL
DAMAGE YOU
 BORROW TO UNDERTAKE AN ACTIVITY WHICH
ENHANCES YOUR INCOME
 BANKS ARE TRANSPARENT AND CHARGE LESS
INTEREST A BANK MEETS ALL YOUR
REQUIREMENTS

11. Formal Financial System
Investor Awareness Program
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 Reserve Bank of India
 APEX Banks:
NABARD, SIDBI, National Housing Bank
 Banking system: Commercial banks, Co-operative
banks, RRBs , Payment Banks, Small Finance Banks.
 NBFCs : NBFCs registered with RBI
 Capital Market
 Insurance Sector

12. INDIAN BANKING SYSTEM
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PUBLIC SECTOR BANKS : 27
NATIONALISED BANKS : 19
STATE BANK OF INDIA and ASSOCIATES : 6
OTHER NATIONALISED BANKS : 2
PRIVATE SECTOR BANKS : 13
NEW PRIVATE SECTOR Banks : 8
FOREIGN BANKS : 43
REGIONAL RURAL BANKS : 56
LOCAL AREA BANKS : 4

13. NEW TYPE OF BANKS
ABHYUTTHANA FINANCIAL LEARNING
CENTRE , BHUBANESWAR
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 SMALL FINANCE BANKS : RBI has given “ in
principle” approval to 10 entities in September 2015
( The first such bank : Capital Small Finance Bank Ltd
opened on April 24, 2016)
 PAYMENT BANKS : RBI given “ in principle”
approval to 11 entities in September 2015.
 MUDRA BANK : Launched by Hon’ble Prime
Minister on April 8, 2015

14. SMALL BUSINESS AND MUDRA
ABHYUTTHANA FINANCIAL LEARNING
CENTRE , BHUBANESWAR
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 Small businesses are often unable to avail loans from
banks because of lack of collateral and insufficient
funds to pay off the interest.
 There are almost 577 crore small businesses
currently functioning in India. Helping these
businesses grow would in turn lead to the
development of the Indian economy.
 MUDRA is still not a fully fledged bank and is in its
initial stages.

15. MUDRA BANK
Investor Awareness Program
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 Micro Units Development & Refinance Agency Ltd
 Objective : To “fund the unfunded”
 Set up by Government of India: Subsidiary of
SIDBI: Registered as NBFC with RBI
 PM Mudra YOJANA: ( PMMY): Products /
Schemes created

16. What is the MUDRA Yojana?
ABHYUTTHANA FINANCIAL LEARNING
CENTRE , BHUBANESWAR
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 This is a scheme to provide loans to small businesses and
micro institutions. For now, it will just refinance these
institutions.
 This scheme would intervene in providing finance to
these micro institutions in three stages:
 Shishu:
 Under the Shishu stage, MUDRA will provide a loan up
to Rs.50, 000 to small businesses.
 Kishor: Under this stage, MUDRA will provide loans of
an amount ranging from RS.50, 000 up to Rs.5 lakh.
 Tarun: Under this stage, loans of amounts ranging from
Rs.5 lakh to Rs.10 lakh will be provided.

17. Loan under MUDRA Yojana
ABHYUTTHANA FINANCIAL LEARNING
CENTRE , BHUBANESWAR
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All Scheduled Commercial Banks in public and private
sector.
Regional Rural Banks
All Micro Finance Institutions (MFI), small business
finance companies and NBFCs
Scheduled urban and state co-operative banks
These institutions have to pass the eligibility criteria laid
down by MUDRA yojana and are then eligible to
provide loans to suitable candidates as per the common
parameters, under the PM MUDRA Yojana. When the
loan is passed, one will get a MUDRA card, similar to a
credit card with limit up to 10% of loan amount to
purchase working capital.

18. MUDRA BANK -Status
Investor Awareness Program
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Status for Odisha As on May 06.05.2016
No of Accounts : Amount ( Rs crore)
Sishu 3,73,704 692.77
Kishor 2,971 43.43
Tarun 501 29.95
TOTAL : 377,176 766.15

19. Why to deal with Banks
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 Banks are regulated by Reserve Bank of
India.
 Deposit Insurance of Deposit Insurance &
Credit Guarantee Corporation of India
( DICGCI) available to bank accounts.
Grievance Redressal System : BANKING
OMBUDSMAN
STEP INTO THE BANK
STEP OUT OF POVERTY

20. MOBILE BANKING
Investor Awareness Program
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
MOBILE BANKING

21. Important Measures for Bank Customers
Investor Awareness Program
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 Opening of Bank Accounts by Minors
 Business Correspondents (BCs) : More
Liberalisation
: NBFC as BC and Distance Criteria
 Liberalisation of KYC Norms
 ATM Use: Rationalisation of number of free
transactions
 Introduction of White Label ATMs:
Example: Tata Communications Payment Solutions
Srei Infrastructure Finance Ltd.

22. Force of Compounding
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23. Milestone Schemes of Government of India
Investor Awareness Program
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 PRADHAN MANTRI JAN DHAN YOJANA
 PRADHAN MANTRI JEEVAN JYOTI BIMA
YOJANA
 PRADHAN MANTRI SURAKSHA BIMA YOJANA
 ATAL PENSION YOJANA

24. ATAL PENSION YOJANA (APY)
ABHYUTTHANA FINANCIAL LEARNING
CENTRE , BHUBANESWAR
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The Scheme is named after the ex-Prime Minister Atal
Behari Bajpayee : launched on May 9, 2015: to bring
those unemployed in rural and unorganised sector
under the ambit of pension scheme.
 Any Indian national of age group 18-40 years is
eligible to join the scheme. Should have a savings
bank account with a bank.
 Pension is paid on completion of 60 years: ₹ 1,000
₹ 2,000, ₹ 3000, ₹ 4000, ₹ 5000.
 Premium payable : Age 18 years (₹ 1,000 ) : ₹ 42

25. Pradhan Mantri Jeevan Jyoti Bima Yojana
ABHYUTTHANA FINANCIAL LEARNING
CENTRE , BHUBANESWAR
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 Savings bank holder : Age between 18-50 years.
 Aadhaar would be primary KYC for the bank
account.
 Life Insurance cover : ₹ 2,00,000 payable on death
of the member .
 Premium ₹ 330 per year . Auto debit is permitted.
Members can give one-time mandate for auto-debit
every year.
 Scheme is administered through LIC or other life
insurance companies.

26. Pradhan Mantri Suraksha Bima Yojana
ABHYUTTHANA FINANCIAL LEARNING
CENTRE , BHUBANESWAR
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Savings bank holder : Age between 18-70 years.
 Aadhaar would be primary KYC for the bank account.
 Insurance cover : ₹ 1,00,000 on loss of one limb or eye
₹ 2,00,000 on loss of two limbs or two eyes payable to
the member .
 Premium ₹ 12 per year . Auto debit is permitted.
Members can give one-time mandate for auto-debit every
year.
 Scheme is administered through a GIC, for period of one
year ( June –May).

27. SEBI-REGULATORS: Capital Market
ABHYUTTHANA FINANCIAL LEARNING
CENTRE , BHUBANESWAR
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ESTABLISHMENT OF SEBI
 The Securities and Exchange Board of India was established
on April 12, 1992 in accordance with the provisions of the
Securities and Exchange Board of India Act, 1992.
PREAMBLE
 The Preamble of the Securities and Exchange Board of India
describes the basic functions of the Securities and Exchange
Board of India as
"...to protect the interests of investors in securities
and to promote the development of, and to regulate
the securities market and for matters connected
therewith or incidental thereto"

28. Investors Grievance Redressal System
ABHYUTTHANA FINANCIAL LEARNING
CENTRE , BHUBANESWAR
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SCORE ( Sebi Complaints Redressal system)- Online
 Aggrieved Investors can lodge complaint against
listed companies and various intermediaries
registered with SEBI.
 Investors can lodge complaint on line on SEBI site
after registering with it.
 Toll free Investor Helpline system is availble.
1800 266 7575
1800 22 7575 ( 9.00 am to 6.00pm)

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THANK YOU