Benefits of Public Provident Fund (PPF) Account

Well well, those who visit this blog regularly would be wondering since when Genie got into all this investment fundamentals and all that jazz. Well, I was kinda made to but damn it felt good at the end. The scene is that I am currently posted in a battalion as Assistant Commandant somewhere near Nainital in Uttarakhand and as an officer the most important thing for you would be the welfare of the Jawaans.

As most of us are aware that the Government has ended the Pension Scheme even in the paramilitary forces and that has been replaced by the New Pension Scheme (NPS) since the year 2004. Although this works as a makeshift arrangement for the jawaans and other employees but the leadership felt that they need to be made aware of other long term saving instruments like the PPF scheme. As it turned out, none of the jawaans had a PPF account. They were even not aware what it was. Ergo, I was given the task to motivate and educate them about the PPF scheme. And hence researched a bit into it as what I already knew were the basics and something more was required to encourage them. I came up with all these points after talking to bank people and little research over the internet.

It was a good session. They seemed interested and inquisitive. They had a lot of questions and fortunately I had all the answers. It felt good at the end.  And then i thought I might as well share it on my blog. And hence....

1.  This scheme has a lock-in period of 15 years. Now this may seem risky but think about it for a while. In savings account, do we really ever save anything. The ability to withdraw anytime you want never really lets us save anything there. So this compulsion works for us eventually. Moreover after this 15 year period, one can extend in every 5 years as per convenience.

2. The interest rate is quite high and normally is the highest among other saving tools and intruments.

3. The interest you get is not taxable and the amount you get upon maturity is also not taxable.

4. This sum is also exempted from wealth tax.

5. The maximum annual submission can be of 1,00,000 INR and minimum can be as low as 500 INR. Plus, whatever sum you want to deposit in an year can be made in as many as 12 installments.

6.  The entire amount can be used for tax exemption under section 80C.

7.  You can open this account in SBI, post offices or in any other nationalized bank. You need not have a SBI savings account to have a PPF account.

8. You can open this account by a initial deposit of 100 INR only.

9.  Most people do not know that if you submit your deposit between the 1st and 5th day of the month, the interest you will get would be the maximum!

10. Premature closure is only in case of death.

11. Most of us need loans to make homes or educate children. Here you can get loans against your PPF deposit.

12. If because of some reason, you did not deposit anything in an year, the account can be reactivated later after paying a fees of just 50 INR.

Hope this helps some confused souls!

[Book Review] The Accidental Prime Minister * *

Author: Sanjaya Baru
My Rating: 2/5

Some books tell a story which grips you to such an extent that you just drown in it's grandeur. Some books use beautiful language which creates a symphony of it's own and you just like to sing along. Some others present to you an entirely different landscape which is so beyond your own imagination. This book matches none of the above mentioned categories. In fact it solely relies on the perfect launch time planned by the author. Other than that, one might be interested given the fact that it gives you a sneak-peak into the PMO and the associated dealings with the making and unmaking of Dr. Manmohan  Singh as the Prime Minister of India. Oh Sorry, accidental PM i meant!

The issue is that given the immense editorial background of the author, the reader would have a lot of expectations from this book. The added thrill of coming across privileged information makes it a more intriguing prospect. But one would be disappointed to see not much literary magic and the ultra-plain description of the events happening in the PMO as seen from the eyes of the former Media adviser to the former PM Dr. Singh.

It is more like a personal diary of a hot-shot editor who got a chance to work with the Prime Minister. But at the same time one must applaud the reasons behind the origins of this book. All of us are aware that how there were two power centers in the UPA government and Dr Singh was more like a puppet whose strings were in the hands of you know who. This book tries to present the ugly truth which we partially know but find it hard to believe. Dr. Singh, the great economist of the 90s who liberated the Indian economy, was chosen by the leadership as he was the best combination of competence and compliance available with the UPA. They could not risk putting in front dominating personalities like Pranob Mukherjee and others for obvious reasons. It brings out the positive contributions, the energy and the determination of the accidental PM that we hardly know.

This books makes us aware about the great vision of Dr. Singh and his loyalty towards Congress because of which he never took credit for all good decisions he had taken but certainly took the fall for all those which went terribly wrong so as to save face of you know who. Most of those who are aware are disgusted by the fact that a brilliant economist was ridiculed by the masses because of ugly political game played by the Congress leadership. He might have been the accidental PM in UPA I but there is no doubt that he was responsible to gather an enhanced mandate in UPA II. His greatest contribution would remain as the controversial US-Indo nuke deal which provides some cushion for the energy security of our country.

But at the same time one cannot deny the fact that by being a proxy PM, he had betrayed the mandate that the people gave to him. By not acting against the corrupt members of his cabinet, he has certainly wronged. We have no doubt about his integrity but allowing such corrupt elements under your umbrella is also corruption. Anyways, the books deals with the making and unmaking of the PM where the author was appointed as his media adviser and by the virtue of his position he knows things that an Aam Aadmi won't. So, I would recommend this only if you are keenly interested in the politics of the nation and love to know how things work inside the government. As far as Baru is concerned, you should stick to editing!

Quotes from the book....

"I do not know everything that happened in the PMO. Not only do i not know all sides of the truth, I do not even know how many sides the truth has."

"It was a popular saying that in India's power structure only three institutions mattered- the PM, the CM and the DM."

"Public offices offer the opportunity for private education at public expense." - Dr. Singh

"For someone whose favorite aphorism was 'money does not grow on trees', Dr. Singh presided over a government that had begun to spend money as if it was growing on trees."

"He was not a popular leader like Vajpayee, nor an experienced politician like Narsimha Rao. Yet, he showed the country that an ordinary, honest Indian, an aam aadmi, to use the current buzzword in politics , could become Prime Minister through sheer hard work and professional commitment."

Open letter to Narendra Modi

Mr. Prime Minister,

Congratulations and Best Wishes for having succeeded with flying colors in the world's largest electoral exercise. We, the People of India, have voted for change. We saw hope for resurrection in you. In your hands, we see India Shinning. We really do. This letter may not reach you but at this historic moment of Indian Democracy, I felt even the voice of a simple citizen has value and we need to put forward some points which need your urgent attention. I have enlisted 10 most pressing issues which in my opinion should be addressed in mission mode. They are not in any particular order.

1. Food Security. Yes, we have enacted a legislation to this effect but the ground realities are pathetic. And the irony is that there is no dearth of food grains. We are producing record level food grains every year so much so that we have exhausted our storage capacities and the rats are getting obese with the daily feasts they enjoy. The rains are destroying whatever these rats leave. I feel that we need to provide this cover only to the most vulnerable sections and to others we should rather provide work. That way we would be controlling the hunger deaths and food subsidy inflation at the same time. Through your speeches, I gather that you have similar plans. I look forward to see that in action.

2. Primary Healthcare. When the urban population visits hospitals like Apollo, Max Healthcare and other big private chains, they feel that the Indian healthcare has transformed itself providing all kinds of rare medical treatment with the element of hospitality. But the moment you step into a government one, you get that much needed reality check. I happened to visit one such institution. After spending almost an entire day there, I observed that the doctors are really talented and affectionate towards the masses. The biggest problem is that the workload being humongous, they have to compromise at various ends. The problems multiply in rural setups where the necessary basic resources are also missing. According to the last years economic survey, India only spends about 4.1 % on healthcare which is way less than the double digit figure for most nations. As Winston Churchill said,"Healthy citizens are the greatest asset any country can have". Yes, we enjoy the demographic dividend over countries like China and Japan but it would prove futile if its not healthy enough to carry India forward. Almost half of Indians are indulging in open defecation which again leads to health issues. You once said "पहले  शौचालय ,  फिर देवालय ". Let's do that.

3. Left Wing Extremism. This is the biggest threat to the internal security of our country and which also has the potential to derail the development and nation-building process. Yes we have dedicated paramilitary forces like CRPF, ITBP etc who are constantly involved in Anti Naxal Operations (ANO) and various State Police Forces are also experimenting successfully by introducing special forces like the Greyhounds. Integrated Action Plan(IAP) and Saranda Development Plan have shown success but we need stricter police action and more inclusive development to end this battle once and for all. Andhra Pradesh has taken great strides in this direction. The other states can too. What lacks is the political will, something which we see a great deal in you.

4. North East Region. While drawing the Indian map, we take pride in encircling the seven sisters and showcase it to the world with all fanfare. When it comes to everything else, why do we forget them? Why are they treated as aliens? Why are they exploited when they migrate to inner regions of the country? Why do they become a subject of mockery? Why are we not able to give them law and order, governance and a sense of involvement in the national agenda. They are as much Indian as the people of Delhi, Mumbai and Varanasi. We created a Vision 2020, a separate Ministry and what not but only on paper. Time is here to make it a reality.What you did for a western state of India, must be replicated for these eastern states!

5. Police Reforms. Since 1977, there have been numerous commissions in this regard and the compilation of all recommendation would surely need all the paper in the world. Even the Supreme Court has listed 7 principles asserting the importance of these reforms. But not even a single step has been taken. Why would the political class provide the police to act independently and transparently. It would be suicidal for them. It is a perfect arrangement. This needs to change. Now. Give them security of tenure, separate investigation agencies, complaints authority to protect people from abuse. That will do. On the eve of independence, we christened the Police 'Force' to Police 'Service'. But do they really serve?

6. Corruption. Cliched yes, but does that make it irrelevant? Any developing nation would have pilferage and leakages but we need to make the whole government-citizen interface more accountable and transparent. And we need to start at the highest of levels as the losses are maximum there and also it has a tendency to flow downwards. The problem is not the absence of a mechanism. The problem is the dependence of these mechanisms on the culprits. Corruption is more of an environmental problem. We need to change the attitude of the people. That would change a lot. Lokpal is not the panacea, promoting integrity is.

7. Tourism. Frankly speaking I cannot think of any other country which has so many geographical variations. Snow clad mountains, picturesque deserts, meandering rivers, glittering coastlines, beautiful ghats and rich cultural heritage in the the forms of forts, palaces and temples. You name it, we have it. But I have just one question. Why still we have a lowly share of 0.64% in world tourism? We need to mend it. It will give us employment, revenue and soft power. Lets open the gates of Incredible India to the world and welcome them with a warm embrace. Help them, guide them and show them love. Don't rape them.

8. Research & Development. The future would be with the nation which has the technology. The patent war is a proof of that. If we do not invest in R&D, we would be always depending on others. But unfortunately the compulsions of being a prismatic society mean that we don't even spend even 1 % of our GDP into R&D. We need to change this. We need to promote innovation and higher education. Our HRD policy should be overhauled to promote higher education. We can think of infusing private funds into this in form of some PPP arrangements. But if we want India to rise among the comity of nations, we need to promote R&D.

9. Rivers of India. They are no doubt the lifeline of any civilization. Even in this post-modern world. But religious fundamentalism and industrial greediness have spoiled them and reduced them into dark streams of diseases. The black Yamuna flowing in our capital is a national shame. And so are the other rivers with declining life forms and increasing pollutants. They affect millions of people indirectly and also have a great influence on their health. Such unpleasant scenes of the Ganges also pollute the touristic portrait of India. The Save Yamuna and Ganga action plans have not yielded much action. We need newer, more vigorous initiatives.

10. Foreign Policy. Peace keeping Missions, among the largest economies, largest democracy, no first use nuclear doctrine and blah blah. Yes, we make a legible claim to be among the world leaders. But we lack the most important parameter. The ability to take stands. We have mostly played safe when it comes to UNSC resolutions or have abstained from voting. The co-founders of NAM should not back out when the time comes to support justice and human rights. We should not indulge in favoratism for petty gains. We should stand by the principles we preach to the world. We need to resurrect NAM and implement the Gujral's doctrine more vehemently to gain local support. We need to rethink our foreign policy.

The day you got the mandate of the people, you delivered a great speech. "We did not get a chance to die, but let us live for our country". You are the PM we have been wanting. One who talks to us. One who only sees public service as his goal. We now eagerly await your moves. And we are ready for all the support you need. And lastly this letter would not be complete without saying, "Ab ki baar, Modi sarkar".

All the very best!

Jail Reforms: Resurrection of the fallen

The largest democracy of the world has lately become the center of attraction and along with us, all the nations and their citizens are looking up to the completion of the largest electoral exercise. More than 800 million voters, 100 millions new voters and the gigantic election plan spread over 9 phases just takes your breath away. It is the time when people resume their quinquennial exercise of talking about reforms that the country needs and then eventually casting their votes before going into hibernation till the next general election. The limelight is often on electoral reforms, police reforms and economic reforms. But seldom do we talk about the much needed jail reforms.

Our judicial system is reformative and not punitive, at least on paper. Our jails which are ridiculously overpopulated by prisoners, which are even more unhygienic than the defecated open fields of our country, where prisoners are treated like unproductive cattle on whose fodder the hard earned tax money of Indian citizens is being wasted in vain, these very jails, are suppose to reform them. But it is high time to take a reality check. The inhumane, aggressive and offensive treatment given to these incumbents will only magnify the evil in them. Violence only breeds violence. Yes, they made a mistake. But that should not mean that they be treated with prejudices and biases for eternity. That will only mean they come out more hollow and emotionless ready to bring down the Policing system of the country.

A large section of Indian population wants India to let go the cruel capital punishment. It is not in sync with the principles and values of our society. Yes Yes, and putting them in a small dingy cell with ten other criminals where they cannot even keep a count of getting sodomized is so in sync with our ideals. We must understand that in order to completely get rid of capital punishment, we must have the capacity to reform those who have fallen. If we cannot provide that, the repercussions would be catastrophic. And that way we would only be breeding criminals in the jails. Today we are a prismatic society where our institutions are developing and conflicts are bound to happen. The inequalities are glaring and some proletariat sections might rebel breaking the law and order and living the Marxian dream and the bourgeoisie nightmare. In the absence of a proper reformatory system, we just cannot afford to keep the dangerous criminals with the other lot.

Recently I came across a ray of hope in this direction when i got my hands on the Annual Review of the Delhi Prisons which proudly highlights the various projects taken up in Tihar Jail which makes it one of the most unique jails in the whole world. We all know that "an empty mind is a devil's workshop" but Tihar Jail Authorities have taken this too seriously. They have come up with so many initiatives and projects to keep the inmates engaged in one chore or the other that they feel as busy and occupied as the Wall Street professionals.

To start, they have this system of providing smart cards to the prisoners in which their wages gets credited and they can use this smart card to buy various items and to avail the services being provided to them. Then the jail authorities through their efforts have set up various small scale commodity manufacturing units that impart skills to the various unskilled criminals and of course are a good source of earning wages. All the products manufactured here are then sold through various wholesalers and in there various TJ (Tihar jail) outlets in the pipelines. Moreover, these products are also sold in various fairs and trade melas all over the country. Go Brand TJ!

The jail authorities have also initiated some innovative moves. They have carved out a separate space for a music room in every building and encouraged the inmates to form their own bands and one of them called 'Flying Souls' has really been making waves, soothing waves. The healing powers of Music at play.They have also experimented with increasing the unlocking hours of the inmates which has shown promising results and a positive change in the attitudes of the workers. They have modified the nomenclature inside the bars wherein the tag 'sewadar' is no more used. Small steps, gigantic moves.

On the educational front as well, Tihar has made great strides. They have collaborated with the Indira Gandhi National Open University (IGNOU) and the National Institute of Open Schooling (NIOS) whereby they have agreed to open study centres in Tihar. Great number of inmates are completing their abandoned education dreams and are moving forward to achieve higher education. Tihar also has started a "Padho and Padho" initiative to further provide the necessary funding for the education of the inmates. This is the first ICT (Information and Communication Technology) enabled literacy drive ever launched in an Indian jail.

The jail authorities deserve a huge round of applause for the assertive actions taken in this regard. And what is even more promising is the ever-increasing spirit of welfare and reforming which is evident in their work ethics. They arrange a regular meeting of all the officers where they discuss and share new ideas by which they can take the Tihar phenomenon to another level. They also appreciate and encourage feedback from the inmates themselves. In the pipelines we have the idea of a semi-open jail where a section of the criminals would be able to go out in the designated area and would be able to pursue their desired profession. But this facility would only be provided to those who have an extremely good record and those who have completed a major part of their sentences. This is a great initiative in the sense that before getting released they would be gradually reinstated in the society and would be setting a great example for the rest of the criminals who would be looking forward to the same route.

In light of the rising crimes in the country especially against women, we need to take the jail reforms very seriously. The need to replicate this Tihar Model is more than ever. But first and foremost we need to increase the number of jails so that those atoning their actions are not suffocated to the brink of irreversible criminality. And also, we need to change the way we look at them. To err is human. They are human, one of us. They deserve a chance to amend their wrong. We as a society are failing with our inability to provide the same. We owe it to them. We must resurrect the fallen!