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Showing posts with the label Finance

Rupee Note & Coin Trivia

With withdrawal of ₹500 and ₹1000 Rupee notes , while we all post views regarding demonetization, here is an interesting trivia about currency in India. Currency notes are issued by the Reserve Bank of India but Coins are issued by the Government of India.   As a result. coins in possession of RBI are considered assets of RBI compared to Notes which are liabilities. And the distribution of Coins is undertaken by RBI only as an agent of the Government.  Another ramification of this is that when you hold a Currency Note, you merely hold the RBI Governor's promise to pay you, but when you hold a coin, you actually hold an asset just like Gold or equity.   Last, while you can use Re. 1 coins to pay any value i.e. if you had 1 crore coins, you could buy a house by using them, but Coins up to 50 paisa are called “small coins” and can only be used to pay up to a maximum value of Rs 10. So much for the 'chillar' (loose change) in our kiddie 'gullaks' (piggy bank)!

Vishram: विश्राम (Arthvyavastha - Part V)

Continued from here: Viraam: विराम (Arthvyavastha - Part IV ). "Guruji!", Saakshaat called out to Kalpakji, his teacher (Guru) as they walked towards the Banyan tree in front of the Panchayat Bhavan, "You remember there used to be days when you would announce a test only to make us study the whole night, and then announce a cancellation the next day when everyone came ready for it?" Kalpakji smiled, he knew what Saakshaat was hinting at. "Yes, I do. But remember when the same exam was announced two weeks later, you all were better prepared for it! Do you agree Aanglesh?", Kalpakji had deliberately asked Aanglesh, noticing that he had been quiet all along after the meeting. "Yes Guruji, but you know - one thing that always made me study harder for every exam?" Kalpakji could not guess where this was going, he looked questioningly towards Saakshaat, but he too was clueless. Aanglesh replied on his own - "the fact that I knew I will be jud

Viraam: विराम (Arthvyavastha - Part IV)

Continued from here  (Vinimay: Arthvyavastha - Part III) When Saakshaat informed Aanglesh that his father Seth Pramanikji would also accompany Pramukhji, colour drained from Aanglesh's face. Aanglesh told Saakshaat that his father was a staunch disciple of Pramukhji and was as much in doubt of the tamrapatrak schemes as Pramukhji himself. This was a jolt to Saaskshaat, he had never expected that Pramanikji, a trader himself and whose son was the first and the largest beneficiary of the tamrapatrak vyvastha would be against the novel concept. He had expected Pramanikji's presence to bolster their position, but now on the contrary he felt even more vulnerable. Saakshaat and Aanglesh had spent the whole night preparing for meeting Pramukhji and Pramanikji. They talked to Anugam about any positives of tamrapatraks which he could identify to impress the village elders with. Anugam mentioned that the tamrapatrak scheme had benefited the society in two major ways - first that b

Vinimay (Arthvyavastha - Part III)

Continued from here: Tamrapatrak Vyavastha (Arthvyavastha - Part II ) Anugam's tamrapatrak scheme received a phenomenal response - also because Anugam had offered his tamrapatraks at a discount to all the workmen whom he employed or bought his wares from. Saakshaat became the official scheme operator for Anugam also, and soon many more traders wanted to float their tamrapatraks. By the end of the year, two more traders had started tamrapatrak schemes, and many more were planning to launch in the next year. Saakshaat then started training more and more young pundits on managing tamrapatrak schemes - he realized that this would be a huge business and efficient and skilled handling of  tamrapatraks would make them even more popular. With more than one tamrapatrak schemes in the market, people often came to Saakshaat looking for advice on which scheme to put their money in. Some even wanted to surrender tamrapatraks from one trader  and buy someone else's in exchange. During

Tamrapatrak Vyavastha (Arthvyavastha - Part II)

Read Arthvyavastha (अर्थव्यवस्था)  Part I here. Saakshaat was the first 'tamrapatradhari' or shareholder of Aanglesh's trade - but many Saamanyas followed soon - it started with Aanglesh and Saakshaat's friends, then their acquaintances, some of whom were good friends of Aanglesh's father also. People saw Aanglesh's firm prospering, making more and more money with the growing number of tamrapatrakdhari's. Most of the community's elders saw this scheme as a devious one - it was helping people earn money from money, without actually requiring people to work to earn their bread. This included everyone including Aanglesh's father who was a devout disciple of Pramukhji. But the younger and middle aged Saamanyas loved the scheme, they put in every small bit of savings they could into Aanglesh's company. Aanglesh's was able to grow his trade beyond foodgrains using the money gathered from the sale of tamrapatraks. But as more people bought

Arthvyavastha (अर्थव्यवस्था)

In a sleepy town, in ancient India named Arthvyaap (अर्थ्व्याप) lived a community of people called the Samaanyas (सामान्य). Arthvyaap was a typical setting, an elder was considered the head of the community - Pramukh, a group of traders, an elite crowd of intellectual pundits, and other  workmen like farmers, cobblers, blacksmiths etc. One of the young pundits was an extremely sharp mind called Saakshaat (साक्षात) who had such a sharp mathematical brain that even though he was just 17, everyone from the Pramukh to the traders consulted him in matters relating to finance and numbers. Saakshaat was also good friends with his childhood buddy name Aanglesh(आंग्लेश) who was the son of a not so rich but well to do trader. Aanglesh's father managed a large trade of fruits and vegetables in the town market and to ensure an early start for Aanglesh had allowed Aanglesh to start a foodgrain store alongside his shop in the town. The economy of Arthvyaap worked quite homogeneous with ever