Mar 30, 2011

[Economy Q] Difference between Tax and Cess

explain the difference between 'Tax' & 'Cess'

Tax is self-explanatory, you've to pay a portion of money to the Government on the income /profit you make or the products you purchase etc.

Cess means Tax on that tax.

For example if there is 10% income Tax and 3% Educational-Cess on it.
Your income is 1 lakh Rupees, so you have to pay 10% income tax on it =Rs. 10000.
And Cess = tax on the tax. So 3% cess on Rs.10000 income Tax = Rs.300

Generally Cess is temporary in nature. e.g. Education cess on income tax is taken, and after Government get sufficient money to open new schools, then cess is removed.

Food for thought

The tax itself is taken in pretext of running the administration and doing the Development work so If Cess (tax on tax) is demanded that means something is not right in the system.

Mar 23, 2011

[CSAT App Q] Your hands are not tied with optional subject choice in prelim form

I have a doubt regarding the application form, though I have send the offline application form through post, I have one query which is eating my mind from past few days, I have mentioned in the FORM-E (offline application form) my mains optional and centre of the exam, because of some conditions I had to change one of the optional , though I should have thought this before filling the form, but I could not do so. Suppose I qualify the prelims can I put changed optional in the DETAILED APPLICATION FORM of the mains, or I will be bound to use the same optional I have marked in form-e, kindly help me in this regards, I have called UPSC facilitation counter many times during weekdays they are not lifting, and even those of my friends who have qualified the exam are unable to answer my query.

Ans:
Don't worry, the notification says

"This column, i.e. 21(III) [Mains subject choice] is optional and is only for statistical purposes.
Candidates who qualify the Civil Services (Preliminary) examination 2011 will be required to provide this information at the time of filling up of the Detailed Application Form (DAF) for the Civil Services (Main) Examination 2011]. "

So, Yes you can change your optionals later in detailed application form.
So, Forget about it and concentrate on your studies.

[Q]One deaf and One normal ear, Handicapped for IAS job or not?

i have hearing impairment in one ear. another ear is normal. can i get a reservation in upsc posts.

Your normal ear is your better ear.
And "hearing impairment" for UPSC means
"loss of sixty decibels or more in the better ear in the conversational range of frequencies"
So if your better ear is normal then you are not 'handicapped'

for more, refer to this,
http://mrunal-exam.blogspot.com/2010/07/explained-deafness-blindness-hearing.html

[CSAT App Q] Didnot get online application confirmation email, don't worry

I have sent my UPSC application through online.
and received the following reply, after that i did not receive any mail, does it mean that i am yet to receive confirmation from them.

Lot of people are having same issue. The answer is,
if you can see your finished registration on following page

http://www.upsconline.nic.in/viewapplication.php

Then you have nothing to worry about, no matter whether you got the email or not.
By the way, check your spam or junk-folder in email account, it may be there.

[Q] OBC certificate, should I get latest or 10 year old certificate will do?

I belong to the OBC category and I have the certificate which was issued 10 years back, which I feel it's not valid and I need to renew it...but I have a doubt, Sir, Is it compulsory in the case of UPSC Civil Service for the OBC certificate to be issued before the last date of Prelims application form fill-up (some exams like SSC mentioned it should be before last date of any exam) or we can get it issued anytime as long as we can provide it in the time of Mains application form fill-up?

OBC list gets revised at regular interval.
10 year is kinda way too old, you should get a new one (and in English.)
And non-creamy layer certificate has validity of only one year.
So yes you should get both of them, latest.

You don't have to send any documents with your prelims form, but with your mains form You will be required to attach a photocopy of your category certificate, marksheets etc.

Mar 19, 2011

[Q] Some Technical question on CSAT & magz subscription

There are no optional subjects in prelims any more

plz tell me, Randomly , what are the weightage of differnt subjects like history, geography, sociologe etc.. in prelim of IAS.

It is not relevent anymore. They've scrapped down the optional subject system from prelims. Optional subjects now exist only in the mains exam. Seach google for 'CSAT'

No minimum passing marks in Prelims

Is Geting 50% marks in prelim is essntial to attempt mains.

It is a competitive exam, so one can clear prelims even with barely 10 marks, Provided that other competitiors have 9 marks. There is no 'minimum passing marks' required in prelims, it's not like a school or college exam.

Subscription problem for Yojana Kurukshetra

on 18 feb i had subcribed yojna and kurukshetra via e money order, but i had not recieved the magzines yet wht shold i do?

I read somewhere in their subscription coupen that it'd take 6 weeks before the subscription starts. Anyways, here is their helpdesk number:26100207

BTW, did you mention specific thing like "Yojana (English) on my xyz address" in the e-money order?

Mar 18, 2011

[CSAT App Q] More troubleshoot again

Doubt in signature-size

I think even for the signature the dimensions are same as for the photograph. I am on the uploading page right now...and they are asking for 110 pixels width x 140 pixels height even for the signature. I just triple checked. Am I making a mistake please? Kindly guide...!!!

UPSC's official FAQ says
http://www.upsconline.nic.in/faq.php
Each of the scanned images of the photograph/signature should not exceed 40 KB in size (for photograph, the pixel size is 140 pixels height x110 pixels width and for sign it should be 110 pixels height x140 pixels width)

UPSC official notification link

can you please forward the full notice by upsc published in employment
news of 19.02.2011 or at least quote a link?

right click Save as
http://upsc.gov.in/exams/notifications/2011/CS2011/cs2011_eng.pdf

acknowledge-card, haven't got it yet

Secondly,after filling the form, i have not got any confirmation mail from UPSC. Is it the matter of concern for me?? Please let me know.

It doesn't matter. It generally takes many weeks before that acknowledge-card comes home, and many times it doesn't come. But people do recieve hall-tickets on time. So don't worry about it. Acknowledge-card only 'acknowledges' that your mail is recieved. it doesn't acknowledge that your application is 'accepted'. So don't worry about it.

Yes you need to answer question related to mains in the paper form

if at all if we do not fill the column 21(V), is it ok or we must fill it?

ofcourse you need to write some code in that column 21(V) for language. otherwise computer will reject the application form while scanning it.

But It is clearly given that coloumns 21 belongs to CS(MAIN)...

My answer still remains the same.

With similar logic you can skip ticking everything in 'mains optionals, mains exam centre' etc.
Well You're supposed to write something in it because they're asking and because they've given codes and because they've not said candidate 'may' answer this.
21(V) is asking for medium for mains exam, so you've to pick a code, because they've given codes.

Mar 17, 2011

[Economy Q] Effect of Coal prices on WPI (Whole sale price index)

how increase in price of coal by Coal India affected the WPI?

When coal becomes expensive, the electricity by thermal power stations becomes expensive. And freight railway charges also increase.
That has snowballing effect on everything because

Now factory owners have to pay more electricity-bill while producing same amount of stuff,
They've to pay more money to trains while getting same amount of items transported.
Steel, aluminum, cement, glass etc industries also require coal during manufacturing process.
So, they've to increase their product-price to keep the profit margin same.

And coal price itself is counted in WPI, with about 1.7% weightage.
Thus Whole sale price (WPI) increases when coal becomes expensive.

[Economy Q] Operating ratio in Railway budget

What exactly is meant by the operating ratio w.r.t the raliways budget?

Operating ratio is the amount of rupees spent to earn 100 Rupees.

If its less than 100 = you're making profit.
If more than 100 =you're making losses.

For railways, Operating ratio for passenger trains used to be about Rs.75 earlier but now it is almost Rs.125. That means Railway is not making profit in passenger trains.

Mar 16, 2011

[CSAT App Q] Code for English is 20

in offline application form, in 21(5) for medium for written exam in mains,there is no english option.what we have to do?pls help me.

Copy pasting from UPSC's website
http://upsc.gov.in/exams/notifications/2011/CS2011/corrigendum_CSP2011.htm

Reference is invited to this Commission's Notification for Civil Services (Preliminary) Examination, 2011 published in the Employment News/Rozgar Samachar dated 19.02.2011.

The candidates, who are applying for the above Examination through Offline mode, i.e. through Paper Application and are opting for 'English' as a medium for the written part of the Civil Services (Main) Examination, 2011 are advised to use Code 20 in Column 21(V) of the Application Form-E. This Code has, inadvertently, not been indicated in the Table under APPENDIX-II (B) at Page 65 of the said Examination Notification appearing in the above issue of the Employment News/Rozgar Samachar.

Mar 15, 2011

[Economy Q] How Foreign Direct Investment (FDI) would influence the Economy

Tell me how FDI would influence the Economy in a simple language as I am new to Economics Please.

Suppose Foreign Direct Investment (FDI) is allowed in multi-brand retail sector then Wall mart can come to India and start a big mall in every city.

So lot of laborers, contractors, cement suppliers, masons, electricians etc get work for mall-construction.
After mall starts running: people get jobs as salesmen, accountant, manager, security guard and sweeper in it.
Since competition increases, consumers get more choices and attractive price offers by competing malls & small vendors.
All these people who got job because of this mall, now they've money in their hands so they go take home and bike loans, so it increases the demand and thus people in those automobile-real estate sectors also get more orders.
new houses are built so more laborers get jobs and that goes on and on...

Thus it helps economy.

[Economy Q] Badlaa system or Carry forward transaction

Archana asked,

What is Badla system?

Badlaa = In Hindi movies it means ‘revenge’ but for Stock market it means “on your behalf”

BASIC CONCEPT OF BADLAA

There is a lottery ticket costing Rs.50, first price is 1 crore rupees. You don’t have a single penny to buy it, so you talk to your friend and he buys it for you on your behalf.
If you win, you don’t have to pay that friend any share from the 1 crore you won.
You only have to give him Rs. 50 after winners are declared and in the meantime interest on that 50 rupees as long as the result doesn’t come.
That’s how Badlaa system rolls.

HOW DOES IT WORK IN REAL LIFE?

Suppose you purchase 10 shares of Reliance Power for Rs. 3000, and at the end of the day, the stock closes at Rs.3300.
You speculate that this Reliance power share price will go even further up and you can make a handsome profit out of this. But you don’t have the money to pay to the broker and take delivery of these shares!
To solve this problem, you enter into a badlaa transaction, so your broker will carry out the money payment on your behalf. You’ve to keep paying him the interest rate for it (as long as you ‘hold’ these shares and donot sell them to someone else).
Badla transactions are settled on Saturday session each week.
The interest rate on Badlaa transaction is determined by market forces of supply and demand.
i.e. if lot people entering into Badlaa contract that means money is in high demand = Interest rate on Badlaa increases. If broker believes that xyz share prices will go really high then he’ll demand more interest for financing it because the customer will be making big profit. And so on…
In English this is called “Carry forward transaction” because you’re carrying forward the payment date for those shares you’ve purchased.

PROBLEMS

As you can see, any no0b without sufficient money can enter in this speculating game as long as he has some money to pay interest rates on Badlaa transactions. And if luck favors him, he can walk away with a decent profit.
So lot of people doing speculative share-trading like this = speculation + volatility
but it may happen that share prices don’t work out as they had speculated and then they refuse to pay money or go bankrupt or suicide = not good for economy.
After ‘92s Harsha Mehta scam, badla system was banned in the county for a while.
As such Baldaa is not bad because it allows you to arrange money. And it also allows the brokers-financiers to lend you money and earn interest on it.
Pitfalls in Badlaa system are same as in overspending with credit card or buying way too much stuff on loans to an extend where 70% of your monthly salary goes in EMI payments!

HOW IS BADLAA SYSTEM DIFFERENT FROM OPTION CONTRACT OR WAAYDAA BAZAAR

In Badlaa you’ve to regularly keep paying interest-rate to the broker as long as you ‘hold’ the shares. So your hands are ‘tied’
In options (or Vaada/Waayda) contract, there is only one time premium to be paid. So your hands are not ‘tied’ in interest payment.
More on option contracts given on this page http://mrunal-exam.blogspot.com/2011/02/economy-q-future-options-call-option.html

Mar 14, 2011

[Economy Q] Greece crisis and Sovereign Default

Ankit Agarwal asked,

I want to know about Europe crisis in 2010 and its effect??

ans-

Greece Government was giving pension benefits, social security and welfare schemes (NREGA Mid-Day meal like stuff), mega PSUs to give jobs for wooing the voters, without realizing that money doesn't flow from sky.
Ultimately, the Expenditure became way tooooo higher than Government's income. (Deficit).
So Greece started borrowing from market, by issuing bonds.

Adding insult to the injury, 2008's American recession had snowballing effect on Greece : fall in exports, tourists stop coming and more. So Government's tax collection falls down.
In this scenario, a seasoned player would not like to buy such Government bonds.
So Government of Greece was misreporting its official economic statistics as well as its borrowing status to make the country's economic foundation appear strong on paper.
But later that was found out, and lead to a speculation that Greece is on a verge of bankruptcy and will default on all its loans and borrowed money. (=Sovereign default)
Such speculation makes share-market collapse, foreign players pulling out their money from Greece.

This is Greece Crisis.
It is originating from the fact that Government was spending way to more than its income (=Deficit) until they came on the verge of bankruptcy.
Similarly Portugal, Spain, Ireland, Italy & UK also have huge deficits compared to their GDP.
Together it makes the Europe crisis of 2010 also known as Sovereign Debt crisis.

European Union's response to Greece

EU had two options:
1. kick Greece out of their team. or
2. Give it the money to recover.

Since #1 was not easily workable so EU had to do #2.

But unlike the Bollywood movies, EU cannot simply print suitcase full of Euros and give it to Greece to solve its debt problems. (recall my earlier example: PM asking RBI to print more money to buy fight-jets, will lead to heavy-inflation when broker buys stuff from that extra-printed money.)

So when EU gives financial relief to Greece, it actually goes from other team-members' wallets. (Germany, France.) So they're not happy, especially Germany.

Effect of crisis on the nation itself

Monetary help from EU, IMF etc. comes with riders attached, like Greece would have to stop its welfare schemes, reduce salary of Government employees, close down their inefficient PSUs etc. that again leads to more strikes and anti-Government riots in Greece = further deterioration in tourism and trade.

Looking at such a grim picture of Greece, foreign players prefer to invest their money in some other nations and the vicious cycle continues.

Effect of crisis on the world (From Indian Point of view)

Big players start pulling out their money from these troubled nations, and look for opportunities to invest that money somewhere else with better returns. Since American market is also still recovering, they narrow down their investment-choice to emerging economies such as India.
European Union Is India's largest trading partner, accounting for 20% of India trade. So Downturn in EU means Indian exporters dealing in chemicals, textiles etc. get low orders from those EU nations [Portugal,Spain,Greece etc.] + Non-EU nations of Europe (UK). Means European crisis is not good for Indian export industry.

[CSAT App Q] More troubleshoots

Debit card works well

As you know online application payment (for General and OBC) is Rs.50
you can pay it in three ways

SBI challan slip
Visa/master debit or credit card issued by any bank/institution
Directly via SBI account's internet banking faciliy.

Akhil Rana said

we can also use any Debit card that has a master-card or visa facility on it. I used an HDFC debit (master) card and the payment was accepted.

Given the infinite waiting lines at SBI branches that is certainly a good option :D

You can use someone else's Debit/Credit card for paying Application fees

Mahendra Desai said

Payment for application fees can be made through someone other's account using his debit card. But it is necessary to have someone who has used his debit card for such purpose in past.

I was using my debit card for my application. At the very first time, it needed lots of processes like going to ATM, registering your mobile number, getting password etc etc. But once I finished those formalities ( of-course for my account safety only), I could use my debit card for successful payment of my 3 friends.

How to enter SBI payslip digits in part-II

do we have to discard zeroes too before the last 7 to 8 digits in id no.?can we apply both online and offline form? Can we fill part-1 and
part-2 at different times? For eg.part1 today and part2 tomorrow. Will our part1 application be active if we do like that?

Copy pasting the UPSC's FAQ. you can download it from the registration site itself...

Considering the All India spread of the SBI there is a possibility of writing of
Transaction ID on the Pay-in-slip by the bank staff variously as TId -
0012121212 OR J – 0012121212 OR 0012121212 etc. if in eight digits OR AS
TId - 001212121 OR J – 001212121 OR 001212121 etc if in seven digits.
CANDIDATES ARE REQUESTED TO FILL IN ONLY THE LAST 7 OR
8 DIGITS AS THE CASE MAY BE, DROPPING OUT ANY ALPHABET,
SPECIAL CHARACTER OR PREFIXED ZEROES. In above two cases fill
in Transaction Id as 12121212 OR 1212121.

Read this PDF contining all guideline by UPSC regarding online application (right click SAve as)
http://upsconline.nic.in/INSTR_CSP2011.pdf

Application part-I and II: you can finish them on different days

shall we fill part-1 registration and part-2 registration at different times? For eg.part-1 today and part-2 tomorrow.because,we have to pay money in sbi after filling part-1.will our part-1 application be active until we fill part-2 application?

yes you can fill up part2 at later time.
In fact I filled part1 on 1st march, paid money in SBI on 2nd march and filled part-II on 3rd march and UPSC still accepted it. Part-I remains in its server memory till last date of application is over.

Online+offline application form by same person doesn't create any problem.

can we apply in both online and offline form?

Online+offline application form by same person doesn't create any problem, since many people have faced glitches in online form they send offline form again, similarly many got one or more problem in paper-form like name-DOB on photo, so they might send online form again. It doesn't create problem but leads to multiple halltickets send to same person.

If you've sent one form properly then you can just sleep easy, there is no need to worry. There is no need to send two form for some kind of 'safety measure' or 'backup', I've never sent double application forms just to be 'safe', and yet I've always received hall tickets in time.

Never use whitener to erase mistakes, buy a new form

Another question from email

My DOB is 18.06)-In the Day column i accidentally circled Zero thinking it was the months column instead of 1 and immediately realised the error and circled 1 and 8. To rectify the Zero error i tried to erase that part, nothing happened but the zero's and the column has become out of shape. I will put whitener on it.
Please let me know if this will create any issues for my hall ticket and exam?

the paper applications are scanned and processed by computer so if there is any white-ink or hard-erasing with blade etc, then it'll not scan it properly and will enter wrong information about you.
That's why you better buy a new application form and fill it again without mistakes.
Same reason you shouldn't use any white-ink the OMR answersheets in prelims.

Sir, thanks for ur valuable information. multiple application from the SAME PERSON MAY CREATE REJECTION OR THEY WILL SEND ADMIT CARD FOR EACH APPLICATION??

Multiple application doesn't mean rejection

multiple forms doesn't lead to your rejection, but you've to be careful read this...

http://mrunal-exam.blogspot.com/2011/03/warning-multiple-prelim-applications-by.html

I also want to know how to get prevent from negative marking in this prelims. please give me some guidance in that.

Well it is already posted long time back.
http://mrunal-exam.blogspot.com/2009/08/negative-marking-in-prelims-most.html

Mar 13, 2011

[CSAT App Q] Living in remote town, help with online payment

Charan asked,

will u plesase tell me how to remit money in sbi bank.i want the whole process of paying and writing transaction number in ONLINE application form. how do we get hall ticket?

After you fill up part-I of online application, Log in to part-II of application,
If you're in general category, you'll get a window. it'll give you option to do any of the following three things...

print the SBI pay-in slip and pay it to the nearest branch. or
use credit card or we can also use any Debit card that has a mastercard or visa facility on it. I used an HDFC debit (master)card and the payment was accepted. (Thanks Akhil Rana for this update)
online SBI account facility.

if you're without credit card or SBI online account (like me) and since you're living in some remote down without SBI branch...so what to do?

No problem, click on print the SBI pay-in slip. It gives you a page, you save it then you e-mail it to some friend or relative in big town, who prints it out and goes to pay the 50 Rs. in SBI.

After that clerk will write a transection id number, the friend/relative sends SMS to you : giving that transection id number and you finish the remaining application part-II using that number.

you don't need to have the physical possession of SBI-pay slip while filling up the part-II, all you need is the transection id written in it, by the clerk.
you also don't need to personally visit SBI to fill up the payslip.

similarly (as far as I'm aware of), you can pay online UPSC fees using someone else's credit card or SBI online-account.

*update* Mahendra Desai confirms it

Yes Mrunal, you are absolutely right. Payment for application fees can be made through someone other's account using his debit card. But it is necessary to have someone who has used his debit card for such purpose in past.

I was using my debit card for my application. At the very first time, it needed lots of processes like going to ATM, registering your mobile number, getting password etc etc. But once I finished those formalities ( of-course for my account safety only), I could use my debit card for successful payment of my 3 friends.

How to enter SBI payslip digits in part-II

How we have to discard zeroes too before the last 7 to 8 digits in id no.?can we apply both online and offline form? Can we fill part-1 and
part-2 at different times? For eg.part1 today and part2 tomorrow. Will our part1 application be active if we do like that?

how do we get hall ticket?

UPSC will send it to your address, about 20 days before the exam.

[CSAT App Q] OMR circles marked with pencil & not with black pen

Priya asked,

"I have shaded the circles in OMR sheet using pencil..with all right details(instead of ball point pen which they have mentioned this time) and posted last week...will this make any difference ,if so should i need to re apply?"

Till 2010, the (old) red application form's heading clearly said "use blue/black ballpen to write in boxes and HB pencils to darken the circles." I used to fill up with blue ballpen.

New notification 2011 says Important: Only black ball-point pen shall be used for filling up this form.
Though I've not seen the paper application form myself :what does the form's heading say? whether OMR circling is allowed with pencil or not?

I think UPSC requires you to mark circles with pen so it remains 'permanent' unlike the pencil markings. That saves your application from getting tempered or modified by anybody at subsequent stage.

Now that I've mentioned blue ball pen and black ball pen, some other friends may inquire that

I sent form filled with blue ball pen, what to do now?

Well in my opinion, They generally don't reject applications on trivial grounds like these

Stamp cancellation was done outside the space provided (happened to me, but it was accepted year ago)
pen/pencil
blue/black color in signature

They don't the time or manpower to manually do such trivial checking.
But if it's giving you sleepless nights and preventing you from concentrating in the studies then apply again. Peace of mind is most important.

[CSAT App Q] A candidate within 21-30 cannot claim age relaxation

Abhishek asked,

what should i write in the age relaxation column if i am not claiming any age relaxation.i am 21 years old and obc non creamy layer candidate.

Quoting the UPSC notificate, Point#3 (II) Age limit
(a) A candidate must have attained the age of 21 years and must not have attained the age of 30 years on 1st August, 2011.
(b) The upper age limit prescribed above will be relaxable.

Means, you can claim age relaxation only after 30 years.
So as long as you're in 21-30 you don't (and cannot) claim age relaxation.

It doesn't matter whether you're SC/ST/OBC, you cannot claim age-relaxation as long as you're in 21-30.

So if you're applying via offline (Paper application) then...

Column 12: Age Relaxation Code
(i) If claiming age relaxation, choose the appropriate category code from the table
given below and darken the appropriate circles applicable in your case.

So you keep that box blank, if you're in 21-30

Mar 11, 2011

WHY CSAT Offline application form requires photo with Name and Date of Birth printed on it?

Some friend unfortunately sent the Offline (paper) application with photos that didn't have name and DoB printed on it.

Why did UPSC ask for name and DOB printed on photo for paper application?

Because there are some candidates who don't properly paste the photo in application with enough glue. So when the forms are sorted out in bulk, and put into scanner, the photo detaches and then it becomes very difficult for the staff to identify which photo belonged to which application. UPSC staff has to go through this torturous situation every year. So UPSC came up with this new solution : asking everyone (Who's filling offline/paper form) to use a photo that has name and DoB printed on it.

(Btw if you're using online application, then you don't need name-Dob printed on it, because it doesn't have that problem.)

From the IOforum I heard this...

People living in Delhi can directly goto UPSC's office and submit the form personally. So, on the first day (after notification) the clerks at UPSC's office did accept application form having photos without name-Dob printed. But Afterward, they stopped accepting it, asking the applicants to get a proper photo pasted on it.

Moral of the story is

Read the notification carefully before applying anywhere.
offline paper application = need photo with DoB, Name printed on it. if you don't have such photo, get a new photo
online application doesn't require name-Dob printed on it.
if you sent an offline paper application with a faulty photo (without name-DOB printed), it is totally upto UPSC's mood whether they want to accept it or reject it. So if that gives you sleepless night then apply again with proper photo.

Mar 10, 2011

[Q] No fly zone over Libya: What does that mean?

Question by Ramkrishna in comment,

Newspapers are talking about "No fly zone in Libya" : Write something about it.

Answer:

What is No fly zone issue?

Col. Muammar Gaddafi is using fighter jets to attack rebels and civilian crowd opposing him.
Air-attack gives him tremendous advantage because rebels cannot fight back, They don't have that kind of sophisticated weaponry.
So America, France and other nations are in opinion of declaring a No Fly zone over Libya.
If America declares "No fly zone" over Libya that will mean that if any Libyan fight-jets fly over Libyan air-space, Americans will shoot it down.

What is India's stand on No-fly zone issue?

India opposed this idea in UN security council. India also opposes any use of force against Gaddafi.
***updates from Krapesh Bhatt***

Col. Gaddafi never supported India as for the issue of Kashmir, but he supported the theory that Kashmir must be an independent state separate from india and pakistan also he has always been supporting pakistan and this reminds me of a cricket stadium called "gadaffi stadium" in pakistan.
India objects the no fly zone also india is silent because a lot of indians are working in libya and still to be evacuated. Also the crude is also imported form that same country.
Also India fears that what if the rebellion uprising fails??? if Col. Gadaffi gets back in power, then the people working there might be kicked back and further deterioration in the relations between India And Libya.
We also have more serious issues in our backyard than poking nose like the Americans And rest of NATO.
our Policy regarding this is safe sailing and correct according to me.

besides if the rebels don't succeed, who knows may be that half loony Gaddafi would stop oil supply to India for supporting the 'no fly zone'!
Because of defunct NAM and unsolved Kashmir issue, Government of India always fears this :

"If we agree on any international intervention in any trouble area, then Pakistanis and Chinese will also demand and justify the international intervention in Kashmir and Arunanchal Pradesh. So better treat any troubled issue (Myanmar, Egypt, Libya) as their domestic-problem, and not get very enthusiastic about it.

This is the same reason, why many experts are (and were) afraid that India will never be able to utilize its (non permanent or permanent) UN security council seat to provide a World leadership. Because India always runs away from taking a stand due to Kashmir and Arunanchal Pradesh.

Yogesh Joshi

if India acquiesces to a Western intervention in Libya, it will lose all moral and legal authority to keep the Kashmir issue away from international scrutiny.

This is the basic pillar of Indian foreign policy regarding Middle eastern crisis

"We support the rise and demand of democracy in every corner of the world, but without making enemies with the Dictators ruling those countries."

China: Opposes the use of force or no-fly-zone against Libyan dictator Gaddafi. We can understand because same Jasmine revolution is brewing on their backyard.

Saddened by India and China's move, President Barak Obama requested Saudi Arabia to supply arms to rebel forces in Libya so that they can retaliate and succeed in the fighting. But Saudi put a condition on America that if Saudi helps Libyan uprising, then America will not intervene in the Bahrain uprising, because Gaddafi hates Saudi Arabia's king but Bahrain is Saudi's close-ally.

Operation Safe Homecoming

An operation launched by India to evacuate its nationals, who were fleeing from the 2011 Libyan uprising

[Economy Q] Capital and Current Account Convertibility brief explanation

QUESTIONS

1. Current account & capital account : What does that mean?
2. Current & capital account convertibility.
3. Which account is permanent & which is reversible & why?
4. Full capital account convertibility : Pros and cons
5. On which account government needs to keep close eye?

I composed the post in MS Word, but this blog-spot is not preserving the text-format, charts and tables properly. So Elaborate answer is in the PDF : CLICK ME TO DOWNLOAD (700kb)

#1: WHAT IS CURRENT AND CAPITAL ACCOUNT?

• In an open economy, we buy stuff from abroad (Import), We sell stuff to abroad.(export)
• Similarly Indians invest abroad, foreigners invest in India.
• So lot of money incoming and outgoing.
• Current and Capital accounts are nothing but method of classifying that incoming and outgoing money.
As you know, Balance of Payment (bop) = Import – Export.
This BoP is calculated under two heads: Current Account and Capital Account.

Current Account and Capital Account meaning in table

*more in pdf*

#2. CURRENT AND CAPITAL ACCOUNT CONVERTIBILITY ?

• Convertibility = converting one currency into another. Like rupee to dollar, yen to pound…anything.
• Since money is incoming and outgoing. People will need to convert the money into different currencies based on their requirements.
• We classified the incoming and outgoing money into Current and Capital account.
• Similarly we classify the procedure involved in converting that money. In brief
CURRENT AND CAPITAL ACCOUNT CONVERTIBILITY chart

CURRENT AND CAPITAL ACCOUNT CONVERTIBILITY chart

CURRENT AND CAPITAL ACCOUNT CONVERTIBILITY table

*more in pdf*

#3. Which account is permanent & which is reversible & why?

• Current account =Money sent and received during import and export
• You sold something (exported) and received the money, so that money is yours forever (until you spend it on something else!) So Current account is permanent and irreversible.
• Capital account = Money sent and received during investment and borrowing.
• Suppose Japanese guy buys factory in India (capital account), sells it after 5 years and takes back the money. So Capital account inflow is NOT PERMANENT and hence reversible (because he took back the money he invested in India).

#4. FULL CAPITAL ACCOUNT CONVERTIBILITY PRO AND CONS

As we saw above, we don’t have full capital account convertibility in India.

ARGUMENT IN FAVOR OF FULL CAPITAL ACCOUNT CONVERTIBILITY

• It facilitates foreign investments and borrowing. So competition is increased = more factories = more jobs = more product choices for consumers = good for economy. :)

ARGUMENTS AGAINST OF FULL CAPITAL ACCOUNT CONVERTIBILITY

Local producers have to compete with International giants. So they lose market and customers :(

(Counter-argument#1: Business is about survival of the fittest, so perform or perish, ain’t no need to get sentimental about Swadeshi. Why should consumer pay for ‘not-so-good’ quality yet expensive product from a local man, if a foreigner is offering better stuff at cheaper quality?)
(Counter argument#2: If a few Indians lose the customers, many more Indians get jobs in those new factories started by foreigners.

What if foreigners buy lot of factories in India and suddenly they find that investing money in France is better than in India. So they immediately sell all those factories, get their Rupees converted into Euro and run away! That’ll lead to huge job loss and collapse in Indian economy!

(Counter argument#1: It’s a two way street: if Foreigners can do that, Indians can also do it while investing abroad.
(Counter argument#2: Sudden outflow of money happens only when governing institutions have weak foundations and policies. [For example, when Government is busy firefighting Sugar-Onion prices without any long-term vision, it makes cronies get involved in speculative business] If every country has sound economic policies, then it’ll be attractive to invest in every country. Then there will be no sudden outflow or inflow of money in any country and hence no-one will be misusing the full capital account convertibility.

#5.On which account government needs to keep close eye?

Sorry I don’t know that exact answer. Government needs to keep an eye on both accounts to make changes in trade policies, tax rates etc. But since Capital account inflows come with a risk (of sudden outflow collapsing the economy), so Government should keep a close eye on Capital account.

Related to this,
Balance of Payment (BoP)

Mar 9, 2011

[Economy Q] Difference between NBFC MFI CEPA CECA Current and Capital account

Question from Ashish

What is the difference between NBFC and MFI(micro financial institution)?

What is difference between CEPA(Comprehensive Economic Partnership Agreement) and CECA(Comprehensive Economic Cooperation Agreement)?

What is current and capital account?

Current Account & Capital Account

Balance of Payment (BoP) = Export minus Import.
BoP is counted in two sections: Current account and Capital account

see this chart, it shows the difference between them

NBFC and MFI(micro financial institution)

Although many of their functions overlap. But difference is in motive, scale of operations and consumer base.
Micro-finance =Their aim is to give small loans like 10-20000 rupees to poor people and self-help groups.
NBFC= big loans like 50,000 and upwards, target customers = middle class people, businessmen etc.

CEPA(Comprehensive Economic Partnership Agreement) and CECA(Comprehensive Economic Cooperation Agreement)

Well I don't know the exact answer but,

The CECA, is much more than a Free Trade Agreement (FTA). It includes more stuff like a bilateral investment promotion treaty, a double taxation avoidance agreement in addition to an FTA.

CEPA= free trade. No duties on each other's traded-items.

[Economy Q] Non-Banking Financial Company (NBFC)

Mr.Mukesh asked,

Please help me to understand NBFC

Answer

Non-Banking Financial Company (NBFC) is a type of company and not a bank.
So NBFC cannot accept or give demand deposits, fixed deposit, demand drafts, credit cards, ATM cards or cheques like a normal bank.
NBFC is mainly involved in giving loans.
It's more like a sophisticated moneylender for example Mannapuram gold loans, it gives you loan when you deposit your gold with them.
Manapuram finance is an NBFC and not a bank.

[Economy Q] If we've Trade deficit why RBI has so much Forex?

Got question from email :

Q: Every year we do some import and some export and usually we have some deficit every year so how do we overcome that deficit, for exp- we import 300Billion USD and we export 200 Billion USD so we have deficit of 100 Billion USD almost every year so how do we balance this margin

a)- Do we use our Forex Assets , a very stupid option as we have around 270 Billion USD and that will get exhaust very soon.

b)- Does RBI print this much of amount every year.

When we say "we are importing more and exporting less"... That is not same as "we are spending more and earning less" So forex doesn't get depleted. Because RBI is not importing, it's the businessmen who import. And when they've to import, they get their rupee converted into Dollars in the forex market or go through a barter system (like give me 1 iphone and i'll send you 30 kilo Basmati rice).

RBI has 270 bn USD that doesn't mean whole India has only 270 bn USD, you've to see the amount of money the Indian businessman have (which they can get converted into dollars at forex market, whenever they've to import something).

RBI has 270 billion dollar$ that doesn't mean whole India has only 270 bn USD or that whole India's capacity to import is only 270 bn USD, you've to see the amount of money (in Rs,$,Yen,Pound) the Indian businessman have.

Ofcourse RBI does print new currency regularly, but it's not to meet the trade-deficit, if RBI does so, that'll lead to huge inflation as explained earlier

Mar 8, 2011

[Economy Q] Micro finance and its problems

nforninad asked,

explain in detail about microfinance

Sketchy details about micro-finance are as following.
Poor people want to start some small business, but don't have money and banks are not interested in doing lengthy paper-work to lend them small amount of money.
So poor people end up going to moneylenders, who charge 36% interest rate and then poors remain indebted forever.

To fix the problem, Government came up with a microfinance solution.
Basically Government gives money to NABARD (National Bank for Agriculture and Rural Development).
NABARD supplies it to local cooperative banks etc.
Poor ladies from village gather up and make 'self-help groups'.(SHG)
They pool some money lets say 5000/- And NABARD gives them 20000/- on very low interest rate, so they can start some small business like wafer-chips, embroidary, greeting cards, soaps, detergent etc. As they start earning profit, they slowly start repaying the debt in small amounts like 100-200 Rs.
Since they've formed a group, they're less vulnerable and more likely to repay the money back.
All sounds good on paper. Mohd.Yunus even got a Noble for this, with his Gramin bank in Bangladesh. And you can read all rosy-feel-good stories about it in The Frontline, Yojana and Kurukshetra.

But when you add corrupt politicians, indifferent-bureaucrates, crony NGOs and agents to this Microfinance equation, everything changes.

Problems in Micro-finance

Compare potato chips business between some poor self-help group vs. giant companies like Lays, Kurkure etc. SHG can never match in the supply-line, package quality, advertizement and retail distribution agents like them. Same about soap giants like Lifebouy or Nirma. So ultimately only a few SHG survive the competition and make some money [Generally those with traditional-handicraft stuff exporting to America]. Rest of them get disbanded after initial enthusiasm and so cannot pay back the loans. Although NABARD generally doesn't go on tough loan recovery like those moneylenders or banks do (because that'd cost votes in elections)
Whatever alleged '2 week-business-training' they're given by Government is all those namesake powerpoint dudes stuff. While you know that to compete your product against some big company like Lays, Kurkure, Nirma or Lifebouy you need lot more exhaustive and rigorous training, exposure and a mentor.
Sometimes before elections, big Loan-melas are held on the instance of local politicians, so every villager ends up getting some loan of small amount, but most cannot payback.
There are some good for nothing crony NGOs, who create ghost SHGs, get the loans sanctioned, give a share to the officers and everybody enjoys life.
Microfinance gives only a 'small' amount of loan, while for starting a business you need a little big. For example, they give 20000/- for your one project, while you need 1 lakh rupees, so either you put 4 new flimsy-projects under different categories to make up the money or go to moneylender to get the rest amount on higher interest rate.
the lack of entrepreneurial culture at rural level means whatever little money they make is wasted in wedding ceremony or repaying previous loans to money-lenders, instead of investing it back in their business. So money made, doesn't bring more money.
In Andhra pradesh there are more than 10,000 SHGs (highest in the country), it accounts for about 40 per cent of MFI lending across the country of about Rs 30,000 crore, and is currently facing a crisis due to bad loans and MFIs using coercion to recover loans, even leading to suicides.

[Economy Q] Deregulation of Petrol prices : Pros, Cons, consequences

nforninad asked

pros and cons of "Deregulation of petrol"

Ans

Pros

As petrol becomes expensive, the college kids waste less of it, loitering around on their bikes.
Middle-class people start using public transport systems instead of their private vehicles = less air & noise pollution and traffic congestion during peak hours.
Less subsidy burden on tax-payers, who are not using petro-vehicles otherwise.(theoretically)
People switch to CNG based vehicles = less pollution.

Cons

As petrol becomes expensive, rickshaw fares increase. So you end up wasting lot of time waiting for the bus or wasting more money on rickshaw.
Cost of everything that is transported by petro-vehicles, also increases.
Erratic public transport system (buses and railways) creates problem in reaching at office / school /college on time = negative-effect on nation's productivity.
Deregulation of petrol doesn't directly mean that Government will reduce taxes, they'll simply start diverting that subsidy-money to something else like NREGA where again their cronies loot it via ghost muster rolls and fake ration cards. So better you and me misuse the subsidized petrol then let them enjoy the subsidy money!
If petrol becomes expensive People start preferring to buy diesel vehicles. So recession in petro-vehicle sector and boom in diesel vehicle sector.
People start buying electricity-based cars and scooters but where does that electricity come from?? if from coal based thermal power plant, then again it'll lead to more pollution.
Petrolpump owners will start adulterating more kerosene in petrol, to increase their profit margin, while vehicle-engine efficiency decreases.
The theoretical assumption that as petrol becomes expensive, businessmen will start investing in clean energy: doesn't hold much water in India, as the required infrastructure and Government support for research in clean energy technology is bare minimum, compared to USA etc.

Can you add any more..well do post them in comments!

Related to this,

[Economy 4 Newbie] Petrol-Diesel-LPG Subsidy- The Parikh Solution

[Q] Creamy layer OBC also gets 7 trials and 3 years age relief

Praveen asked in comments

"is there different no.of chances for obc(in creamy layer)and obc(out of creamy layer)?

Answer

No difference.

Every OBC gets 7 trials, irrespective of his creamy layer status.

Every OBC also gets +3 years age relief (i.e. upper age 33 years)

Creamy layer OBC doesn't mean General category in age or attempt limit.

Anymore doubts refer to

www.OBCguru.com

He is indeed 'the OBCguru' because he knows about every court judgment, rule and gazette notification related to OBCs, and has provided his mobile number and email id so you can contact him anytime.

Mar 7, 2011

[Economy Q] RBI prints more money when and its implication on gold and forex reserves

Tanvir Khan asked

1.)What are the situations at which rbi print notes?

RBI prints new notes to replace the old torn-out notes and to meet the money demands of a rising economy.

As you know, if people have x amount of money but there are not sufficient items in market to purchase, then there will be inflation (price-rise).

So RBI's job is to maintain the money supply (liquidity) in the market, to prevent inflation.

If there is shortage of money in the market, RBI generally alters its SLR,CRR,Repo,Reverse-repo to increase the money supply.

Lets imagine,
We need to buy new F16 fighter-plane from America, they ask for 1 billion dollar$.
So Prime minister Manmohan Singh asks the RBI to print new notes of 50 billion rupees and pack them in a big suitcase. Then he takes it to Forex market, gets the Rupee converted into dollars and buys the fighter-jet. But the same broker at Forex market, will use those 50 billion rupees to buy all the tea,Basmati rice, onion, potato and everything in India and then export it to other countries!! So shortage of items for Indian consumers = price rise=inflation.
So RBI cannot print notes indiscriminately.

However an expanding economy like us, requires more money so people can take loans and start business etc. Even after altering SLR,CRR,Repo,Reverse repo, there will be still demand for money So RBI must be printing more money after looking at the indicators like IIP, GDP etc. Besides printing money also costs money. So I think there will be some complex formula, but I'm not aware about it.

2.)Sufficient gold or forex reserves is necessary to print notes by the rbi but please explain me what happens to the forex or gold reserve as soon as the indian notes are printed. i.e., if the rbi has 4000 u.s. dollars as forex reserve and a situation occur to print 100000 rupee notes (2000 us dollars=100000)(so after printing the notes, will the forex reserve of india become as 2000 us dollars or will it remain at 4000 us dollars itself.
Please explain.....

Nothing happens to forex or gold reserve. It remains as it is.
Prior to World war-II era, nations used to print only as much currency as the gold-reserve they had. Nowadays currencies are not linked with gold.

However, RBI uses special printing-machines, papers and inks imported from Switzerland etc. to print the new currency notes. so obviously RBI has to pay in dollar$$ while buying the raw material. So in that sense some of its forex re$erve will deplete.

RBI can never link the money-printing to gold or forex reserve because that'll sevearly limit its capacity to meet the money-demands of a rising economy.

Sidenote:
you can get brand-new fresh notes and coins from RBI branch, but before you have to wait in long queue while the RBI staff sells it to the agents from the backdoor (Rs.10 Commission on Coins worth Rs.500). And those agents sell it to merchents, but merchants never use it and insist on you to buy toffees worth Rs.1,2,3 instead of returning the change. (as seen on sting-operation by E-TV) So, in that sense, artificially created shortage of 'change' also boosts economy!

Mar 6, 2011

[Demo] UPSC CSAT prelim application form 2011

[Demo] UPSC’s CSAT prelim application form 2011, because

SILLY MISTAKES WILL COST YOU DEARLY.

Noone likes to read instruction manuals be it mobile phone or UPSC application. But still ….

CONTENTS

Important details
Fees (General and OBC only)
Paper-application (offline)
Online application and infinite SBI Line
Photo
Signature
MUST DO
Paper application
Online application
*CAUTION* Multiple applications by same person
Application lost during postal transfer
DONT be a Lord Curzon and get a photocopy of finished application form

IMPORTANT DETAILS

Question	Explanation
Name:	Your name in 10^th standard certificate. (i.e. Matriculation, secondary or highschool whatever you call that thing.) Different names in college and school certificates 1. In college degree, your name is Abhishek Bacchan , but your 10^th marksheet says its Bacchan Abhishek Amitabhbhai, then you write what 10^th marksheet says. Name change after marriage 2. your 10^th marksheet says “Jaya Bhaduri ” but after marriage your name is changed to “Jaya Bacchan” then you write what 10^th marksheet says. Name changed after college, with court affidavit Your name in 10^th was Yatin Khanna but later you changed it to Rajesh Khanna in order to become a film-star (or whatever) again you write the name given in 10^th. DONOT write prefix like Mr.,Mrs., Shri, Kumar, SMT.,Dr.,Cpt., Etc
Gender	Male/female
Date of Birth:	Be very careful about this, and again what your 10^th std. (matriculation) certificate says is final. If there is difference between DOB in your 10^th and college degree, then 10^th will be final. If your 10^th std certificate doesn’t mention DOB, then whatever your school leaving certificate says is final. Lower age limit is : you must be AT Least 21 years old on 1^st august 2011 Upper age limit: varies with category. More explanation on http://j.mp/fGn8cF
Father's Name:	As it is in School Leaving Certificate
Mother's Name:	As it is in School Leaving Certificate
Nationality:	Indian just like Sunny Deol.
Marital Status	Married/unmarried/Widow
Physically Challenged	Yes/No. UPSC guidelines regarding deafness, blindness are very vogue, but I’ve tried my best to compile them on following pages Main page : http://j.mp/gSB3OR Related questions - I've glasses, Can I be IPS, IRTS,RPF OR Group 'B' Police-service not? - I've only one eye, Am I physically handicap or not? - Am I blind-candidate or not with 6/60? or - What are the criteria for blindness? - Color Vision standards in UPSC? - Night-blindness standards for UPSC? - What is partially blind and Low vision ? - Squint (Abnormal alignment of one or both eyes) ? Still you’ve doubts, then keep in mind: according to UPSC, eligibility for availing reservation against vacancies reserved for physically disabled person shall be the same as prescribed in ''persons with disability (equal opportunities, protection of rights and full participapation) Act 1995" That means refer to following act http://socialjustice.nic.in/pwdact1995.php?format=print Still no answer, then file an RTI application to UPSC.
Community	General/SC/ST/OBC Be VERY CAREFul about this, you must make sure you’ve the required documents. E.g. some people come in State’s backward list, but their caste is not in Central OBC list. Prelim form doesn’t require any documents but in mains form, UPSC will ask you to give photocopies of every document and you’ll be in trouble, if you don’t have them.
If you belong to Minority	Yes/No.
Fee Remission Claimed	General category and OBC have to pay fees. [Rs.100 for paper application and Rs.50 for online] SC/ST/Physically challenged and Women don’t have to pay fees.
Address:	Suppose your address is changed later on, don’t worry just call the helpdesk and they’ll send you ticket to your new address after asking you some questions like date of birth etc.
Phone/Mobile	Do I need to explain this?
E-Mail:	Compulsory for online application
Age Relaxation Claimed:	Elaborate explanations on following page http://j.mp/fGn8cF Need codes for offline form then see page number 31 of following pdf http://upsc.gov.in/exams/notifications/2011/CS2011/cs2011_eng.pdf
No of Attempts Already Made:	Examples 1. If you filled up prelim forms in 2009, but did not appear in the exam then that attempt doesn’t count. So you write 00 2. You appeared in 2009,2010, then you write 02 attempts. (whether you passed prelim or failed in the exam that doesn’t matter) Number of attempts allowed, General= 4 OBC=7 SC/ST= infinite till they reach upper age limit. Physically handicapped and Ex-servicemen = complex rules, for more info see this link http://j.mp/fGn8cF
Educational Qualification:	1. If regular college degree, make sure its recognized by UGC 2. If distant education degree, it must be recognized by ( Distant Education council) 3. American or any foreign degree, you must get certificate from Association of Indian Universities. Their building is next to Maulana Azad Medical College, New Delhi. 4. If You’re in last year or last semester in your college, you can still appear IF you’ll get your final degree (or mark sheet) before August-end 2011.
Are you claiming exemption from appearing in Indian Language paper:	MOST IMPORTANT. They ask asking about compulsory regional language paper in mains (its marks are not counted in final merit list, but still you’ve to pass this paper) But candidates from North-Eastern States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Sikkim are exempted from this paper. Got it? In simple words, if you’re not from North-east, you CANNOT claim exemption in this paper, and have to pick one language paper like Gujarati,Marathi,Hindi,Urduwhatever applies. (Again its marks are not counted in merit list)
Language:	Its continuation of above question, if you don’t claim exemption, then you pick up one language, like I took Gujarati.
Optional Subject 1:	This is only for statistical purpose; you can change your optionals after prelims are over. So, if you’re still undecided about subjects, don’t worry just write anything for filling up the form. Only keep in mind that following combos are not allowed (a) Political Science & International Relations and Public Administration; (b) Commerce & Accountancy and Management; (c) Anthropology and Sociology; (d) Mathematics and Statistics; (e) Agriculture and Animal Husbandry & Veterinary Science. (f) Management and Public Administration; (g) Of the Engineering subjects, viz., Civil Engineering, Electrical Engineering and Mechanical Engineering–not more than one subject. (h) Animal Husbandry & Veterinary Science and Medical Science.
Optional Subject 2:
Centre for CSM Examination:	Mains exam is held in every city, where prelim exam is held. So pick up any center according to your convenience. Keep in mind Mains are held normally in October-end. So if you’re changing job or hostel, think about where will you be at that time.
Medium of written	VERY IMPORNTAT. So pay attention. This is only for mains Suppose you take English then, following papers 1. GS I,II, must be written in English 2. Essay must be written in English 3. Optional-I and II must be written in English. 4. Compulsory English paper = obviously in English 5. Compulsory regional paper (like Hindi,Gujarati,Marathi)= ofcourse not in English but in that particular regional language! Suppose one of your optional subject is literature of Urdu,Marathi,Gujarati whatever THEN you must write that optional in its script, even if you’ve English medium. e.g. Candidate took English language, his 1^st optional Public Administration = he’ll write in English and his 2^nd optional is Literature of Gujrati then he must write it in Gujarati. You cannot change language for Essay and GS, e.g. if you took English then you write essay in English and CANNOT write it in Hindi or Oriya. INTERVIEW Language For interview, if you wrote mains exam in English, you must talk in English in the interview. (as per the rule) If you wrote mains exam in non-english language (Gujarati,Hindi,etc) then you’ll be given two options for interview medium: either talk in that regional language or talk in English.

FEES (GENERAL AND OBC ONLY)

Like I said ago, women,SC,ST and physically challenged people DONOT need to pay fees.

PAPER-APPLICATION (OFFLINE)

- Goto post office, get a Rs.100 Central recruitment stamp (NOT Regular or court stamp, mind it)

- After you paste it on your form, give your form to the clerk and he’ll put the post-office’s stamp on it. This procedure is called ‘getting your stamp cancelled’. You must do this.

- You also need to get Rs.6 Postal ticket, and paste it on your acknowledgement card.

ONLINE APPLICATION AND INFINITE SBI LINE

- After completing part-I of registration, they’ll give you 2 options, either pay online via credit card or print the SBI challan slip and goto nearest SBI branch. Pay the money, the clerk will write a number on your slip, come back home and write that number in part-II of application.

- Given the long queues in SBI, its not advised to visit it between 1 PM-3.30 PM (like you’re 20^th number in line at 1PM, by the time your number comes, its 2 PM and clerk goes on recess and comes at 3PM, in the mean time you too go somewhere and when you come back @3PM you’re again 30^th number in the line and everyone in front of you has transections of 5 lakh rupees (j/k) so each take 20 minutes, and by the time your number comes, the branch is closed.so you end up wasting your whole day in this vicious cycle.

PHOTO

Postal paper application

Online application

Must have name and Date of birth printed on it

So you go to photographer, get a new photo and ask him to print name-DOB on it.

Size limit:

3.5 cm. x 4.5 cm

- Scanned Photo doesn’t need name or DOB printed on it.

- Don’t take photo with webcam or cellphone like you do in facebook or orkut. You need to have a proper passport sized photo and then get it scanned. BECAUSE you’ll have to paste the same photo in your mains application form.

Size limit :

1. Height 140px and

2. width 110 px and

3. 40 kilobytes.

You must meet these three conditions, but it’s very easy just use the tutorial given in http://j.mp/ejoYtt

SIGNATURE

Merely writing your name in capital like “MRUNAL PATEL” doesn’t make it signature. UPSC will not allow it.

Postal Paper application	Online application
Some people use 3 different signatures, one for official use, one in bank and one for signing couriers. You MUST remember your signature in prelim form, because you’ll have to do the same signature in exam-hall. So better get a Xerox of filled up application form.	White paper, black ball pen. Sign and get it scanned. Size limit for scanned signature 1. Height 110 px 2. Width 140 px 3. 40 kilobytes. Again three conditions same tutorial http://j.mp/ejoYtt Btw, unhappy with scanned signature quality or want to know what is acceptable signature in UPSC form, then visit http://j.mp/hxeExJ

MUST DO

PAPER APPLICATION

1. After filling up the form, get it Xeroxed. And only then you send it via post.

2. The application form number is very very important. You save it in your mobile as a ‘contact’

3. Rs.6/- postal ticket on acknowledge-card (for everyone)

4. In case of missing application form, Speed post’s receipt comes handy to get admitted at later stage.

5. I’m told by my seniors, that clerks at UPSC don’t like to sign anything, so they don’t take applications sent via Registered post or courier. So better send it via normal or speed post.

ONLINE APPLICATION

1. Registration number very important, save it in your mobile as a ‘contact’

2. Print down the final completed application form.

3. If you don’t have print then goto File>Save as>Save as complete webpage> to anywhere in your harddisk. And get it printed later on.

Last but not the least

CAUTION MULTIPLE APPLICATIONS BY SAME PERSON

1. UPSC says they’ll accept only one application and reject the duplicate applications by same person

2. But in reality they send admit-card to everyone. So if you apply twice, you get two hall-tickets. Simple use any one and discard the other one. But you need to check which hall-ticket is allotted to which application-form??

- Suppose in first form you mistakenly wrote your Date of birth as 1-1-1985 and sent it but then you realized the mistake, so you filled up a new form with correct date of birth like 1-1-1986.

- Now if you get two admit cards, you’ll be in trouble if you use the hall-ticket allotted to first application (because it has wrong Date of birth).

- So to fix this, once you get your hall-ticket, goto UPSC website enter your application form number (or registration number) and it’ll show you the roll number allotted to it.

- Since online application has been started for the first time, UPSC is unlikely to reject your application on trivial issues like low quality photo/signature so don’t worry.

APPLICATION LOST DURING POSTAL TRANSFER

· If that happens, you can still get admitted if you’ve docs to prove that you indeed applied. That’s why speed post receipt comes in help.

· I’m told by my seniors, that clerks at UPSC don’t like to sign anything, so they don’t take applications sent via Registered post or courier.

DONT BE A LORD CURZON AND GET A PHOTOCOPY OF FINISHED APPLICATION FORM

· Whether you're applying for single time or multiple times, ALWAYS get a photocopy of finished paper-application form, before sending it.

· I've seen careless people, who never take photocopy of finished form and after a week or two they start doubting whether they filled up the form right or not, so they send a new form.

· Sometimes they don't receive hallticket on time and don't even know their stupid application form number so even the UPSC helpdesk can't help them.
So always get a photocopy, before sending a Government job application.

· same thing for online application, do take a printout or save the whole webpage

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Mar 30, 2011

Cess means Tax on that tax.

Food for thought

Mar 23, 2011

Mar 19, 2011

There are no optional subjects in prelims any more

No minimum passing marks in Prelims

Subscription problem for Yojana Kurukshetra

Mar 18, 2011

Doubt in signature-size

UPSC official notification link

acknowledge-card, haven't got it yet

Yes you need to answer question related to mains in the paper form

Mar 17, 2011

Mar 16, 2011

Mar 15, 2011

BASIC CONCEPT OF BADLAA

HOW DOES IT WORK IN REAL LIFE?

PROBLEMS

HOW IS BADLAA SYSTEM DIFFERENT FROM OPTION CONTRACT OR WAAYDAA BAZAAR

Mar 14, 2011

European Union's response to Greece

Effect of crisis on the nation itself

Effect of crisis on the world (From Indian Point of view)

Debit card works well

You can use someone else's Debit/Credit card for paying Application fees

How to enter SBI payslip digits in part-II

Application part-I and II: you can finish them on different days

Online+offline application form by same person doesn't create any problem.

Never use whitener to erase mistakes, buy a new form

Multiple application doesn't mean rejection

Mar 13, 2011

How to enter SBI payslip digits in part-II

Mar 11, 2011

Why did UPSC ask for name and DOB printed on photo for paper application?

Moral of the story is

Mar 10, 2011

What is No fly zone issue?

What is India's stand on No-fly zone issue?

Operation Safe Homecoming

QUESTIONS

#1: WHAT IS CURRENT AND CAPITAL ACCOUNT?

#2. CURRENT AND CAPITAL ACCOUNT CONVERTIBILITY ?

#3. Which account is permanent & which is reversible & why?

#4. FULL CAPITAL ACCOUNT CONVERTIBILITY PRO AND CONS

ARGUMENT IN FAVOR OF FULL CAPITAL ACCOUNT CONVERTIBILITY

ARGUMENTS AGAINST OF FULL CAPITAL ACCOUNT CONVERTIBILITY

#5.On which account government needs to keep close eye?

Mar 9, 2011

Current Account & Capital Account

NBFC and MFI(micro financial institution)

CEPA(Comprehensive Economic Partnership Agreement) and CECA(Comprehensive Economic Cooperation Agreement)

Mar 8, 2011

Problems in Micro-finance

Mar 7, 2011

Mar 6, 2011

IMPORTANT DETAILS

FEES (GENERAL AND OBC ONLY)

PAPER-APPLICATION (OFFLINE)

ONLINE APPLICATION AND INFINITE SBI LINE

PHOTO

SIGNATURE

MUST DO

PAPER APPLICATION

ONLINE APPLICATION

*CAUTION* MULTIPLE APPLICATIONS BY SAME PERSON

APPLICATION LOST DURING POSTAL TRANSFER

DONT BE A LORD CURZON AND GET A PHOTOCOPY OF FINISHED APPLICATION FORM

What is New?

CSAT analysis

CSAT

Trend Analysis

Advice

Economy 4 GS

Economy Concepts made Easy

Search b4 asking Question

CAUTION MULTIPLE APPLICATIONS BY SAME PERSON