Should Indian government ban cock and other foreign retail products in India?

Few days back I got a forward email from one of my classmate stating “Stop buying foreign products to Save Indian Rupee”. I was totally curious to see many are recommending and appreciating her for forwarding such email. I would have done the same if I was a fresher and doesn’t know about the gr8 world “Economy”. Now many are working in software industry and would have got enough opportunity to get to explore/know about the Economy.

I have copied here my email response to my class mates. You can comment on my thoughts if I have written anything wrong.

Hmm.. Nice to see few social activists who really care about India and it’s economy despite many of us happy to settle in aboard.

Reply to AAA, who forward the email, I think you have stroked very broad topic. It is tightly coupled with many other complex issue which we known/unknown. Regarding your thoughts on Cold drink, what are you say? Suddenly all Indians started drinking cold drinks instead of water? OR people of India started using foreign products only from last four months?

As a bank staff, let me put my thoughts.

If you guys have a look at the historical Exchange rates graph, you could realise the Indian rupee started weakening rapidly from August 5 (You can refer at http://www.x-rates.com/d/INR/USD/graph120.html ). So what happed on August 5? As you all aware RBI hiked banks interest rates 12 (I believe..) times from last 16 months believing that it could control inflation. Please be aware that when whenever central bank RBI hikes interest rates it means for Banks. Not for an individuals. Whenever RBI Increases Repo rate (Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive) andCRR (Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI. If RBI decides to increase the percent of this, the available amount with the banks comes down. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks) Banks are really nuisance to manage their Liquidities. So banks are forced to increate the Interest rates to their customers (Running Banks in India is not really easy as all we think! and also banks should not be a loser at any point of time!!). Also Banks cannot get the required amount only from RBI OR Customers through deposits (Bank should pay interest for those amounts.). In early August, banks started converting foreign currencies to maintain their CRR. Again it was just a start. After a month the Euro zone (Greece was about to default in early Sep 2011 followed by Italy and Spain) crises bombed and almost all the corporate started converting Forex to INR expecting double dip. INR started weakening that time and our NRI also used that opportunity which caused historic low.

If you see few currencies like Israeli Currency Shekel and New Zealand Dollar, graph is still flat (You can see by changing the base currency). This clearly shows these currencies were not traded compare to USD, GBP and EUR etc.

We are in Globalize world and we can’t live without global products like mobile, computer etc (As Viswa rightly pointed out India/Indians makes more money on globalize products. I don’t want to touch that again.). We need more governance and policies to really make stronger Rupee like CRR in FX possibly. It is up to the RBS, Finance Ministry, Govt of India and commerce Ministry, Govt of India. As individuals, we can just feel for it. Nothing more..

@ChanraMohan my dear chutty friend,

What kind of back up plan you are expecting sir? As you know, it is not like a project where one can give backup for others. We are creating more service oriented organization (to solve others problem) targeting shorter profits instead of creating our own products. It will work for long run. We need more product oriented IT companies for longer sustain in the IT market and other Market areas like automobile, textile etc.

@Phalgun, my dear first yea roomee,

The current exchange prices are not results of globalization for above mentioned reasons. Probably it might influence in few percentages. If you remember we came across recession in 2008, even that time FX was not that bad comparing now. Hope you will agree.

Cheers,

-NJN

India payment processing suggestions.

This is the article to provide few suggestions to improve our payment processing and take our payment processing modules in to next level. Please leave a comment if you want to add anything.

1. It will be good if we have 24*7 internet banking support like other International banks
2. Why don’t we extend the branch banking time to support our customer
3. We don’t we have inter account fund transfer is not supported in our Indian banks. For Eg. If we want to transfer money from SBI to ICICI bank beneficiary, it is not possible in branch banking.
4. We are we not offering cross border payments including Foreign Payment and Foreign draft solution in branch/internet banking.

fivepointsomeone

Yes Guys,Yet another good story to share with you.

Usually you can find many books near my bed (Both technical and non technical). But i will start technical only when i gets bhored. Last weekend one of my best friend recommended me to read "fivepointsome" story book and he has given the book.At that time i felt like it will be bhore to read some 270 pages of english story book.
I started reading around 11. PM on 10/03/2009. It's very interesting... It's 3 Am still goes on.., It's 6. AM.it goes on...... and morning 9.AM. (eppadi ellam college la padiche irrutha engiyo poyirukalam)I had completed only 200 pages.I could felt i was dull. So i had a breakfast and started after an hour. It's noon 2.PM while completing the book.
Hope you also enjoy while reading.

Synopsis of "fivepointsomeone"Five Point Someone is a story about three friends in IIT who are unable to cope.
The book starts with a disclaimer, "This is not a book to teach you how to get into IIT or even how to live in college. In fact, it describes how screwed up things can get if you don't think straight."
Three hostelmates - Alok, Hari and Ryan get off to a bad start in IIT - they screw up the first class quiz. And while they try to make amends, things only get worse. It takes them a while to realize: If you try and screw with the IIT system, it comes back to double screw you. Before they know it, they are at the lowest echelons of IIT society. They have a five-point-something GPA out of ten, ranking near the end of their class. This GPA is a tattoo that will remain with them, and come in the way of anything elsethat matters - their friendship, their future, their love life. While the world expects IITians to conquer the world, these guys are struggling to survive.
Will they make it? Do underperformers have a right to live? Can they show that they are not just a five-point-somebody but a five-point-someone?
Happy reading...