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11 Apr 2019

Banking in India

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  • Banking
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Introduction

Reserve Bank of India (RBI) states that India’s banking sector have been well-regulated and adequately capitalised.  Market, credit and liquidity risk studies propose that Indian banks are generally flexible and have withstood the global downturn well.

Recently the Indian banking industry has witnessed the roll-out new banking modules like small finance and payments banks. RBI’s current measures may go a long way in helping the restructuring of the domestic banking industry.

The Indian banking system consists of public sector banks, private sector banks, foreign banks, regional rural banks, urban cooperative banks, and rural cooperative banks, in addition to cooperative credit institutions.

Government Initiatives

Indian banks are continuously focusing on adopting an integrated approach to risk management. Banks have already embraced international banking supervision. 

Reserve Bank of India (RBI) has decided to set up the Public Credit Registry (PCR) an extensive database of credit information which is accessible to all stakeholders. 

Recently, the Indian banking industry has witnessed a historical decision of demonetization which has to lead to an excellent liquidity crunch. The impact of this liquidity shock on India’s GDP is still questionable and is under the evaluation of experts, but it is certain that all monetary transactions will come under the banking system which will lead to the next big step in the expansion of Indian Banking system.

The objectives of this research articles are to show the growth in the banking sector, technological development and computerisation in the Indian Banking sector. Technology enhances choices, create new markets and improves productivity and efficiency. Rising incomes are expected to increase the need for banking services in rural areas and therefore drive the growth of the sector. As of September 2018, Department of Financial Services (DFS), Ministry of Finance and National Informatics Centre (NIC) launched Jan Dhan Darshak as a part of financial inclusion initiative. It is a mobile app to help people locate financial services in India.


Demonetization

Demonetization has raised the deposit funds in the Indian Banks. It led the banks to keep a significant part of deposits in the form of cash deposits.  Sizes of deposits have gone up as the unaccounted money in the way of Rs.500, and Rs.1000 were flowing to the Banks. Post demonetization, several banks lowered their domestic term deposit rates and lending rates. Surplus liquidity conditions have helped facilitate the transmission of monetary policy to market interest rates.
  
Demonetization has pushed the public to digital banking. A cashless economy is one in the flow of cash within an economy is insubstantial, and all transactions have to be via electronic channels such as, credit, direct debit and debit cards, electronic clearing, payment systems such as Immediate Payment Service (IMPS), National Electronic Funds Transfer and Real Time Gross Settlement in India. Demonetization has led to an increase in the use of plastic cards, line Banking, an opening of new accounts, the number of customers in the branches and the use of ATM.


Note: To learn more about the laws and procedures involved, you can contact us at 'Legatoapp' where we help you in connecting with experienced lawyers who can assist you with the documentation and procedural aspects.

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12 Apr 2019

Marketing of Business in India

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  • Business Lawyers
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India is said to be one of the largest consumer markets in the world, with its range of the vast population of middle-class consumers. India is a complex and diverse consumer market, and it is essential to develop marketing strategies and products as per the preferences of Consumer. As there is a massive competition from both small and large local retailers and international companies, it is necessary to consider the diversity of cultural backgrounds, differing levels of wealth and the sheer size of both the land mass and the population.

The best way to tackle the complexities of the Indian market for advertising purposes and marketing is to fund in and hire local knowledge. A complete marketing plan that considers core elements such as brand, stakeholder management, public relations, media, and the product or brand value proposition is essential. However, you will need to re-evaluate your marketing strategy and plan accordingly continually. The Indian socio-economic environment is continuously changing and evolving, which in turn impacts on consumer choices.

Awareness of Brand 

Indian economic-class consumers place strong importance on brands, particularly on luxury brands. Status is a crucial factor – particular people will purchase luxury goods only to show their achievement. You should have a specific strategy focusing on brand localisation, brand building, and awareness creation. 

Price Consciousness

For everyday commodities, the price is an important consideration for consumers, particularly at the lower-economical category and lower-income levels. As opposed to status items on which economically strong Indian buyers are willing to shell out more, non-status products are likely to be chosen based on price. 

Demographic Dynamics

India’s middle and upper-middle income households in major cities are needing quality across a wide range of services and products, especially those that focus on health and wellness, as well as education. The rural consumer market in India, is mainly underserviced at the moment for health and welfare of goods and services, education and other consumer goods and services, leaving ample opportunity for growth. 

Logistics

India is still a developing country which has a few highly developed logistics supply chain than in Australia and many of Australia’s traditional, more developed export markets. Less-developed infrastructure in some poorer regions, this may cause delays in getting goods to consumers and markets. 

Product and Service Adaptations

You might need to change your product to meet Indian requirements or preferences. Changing to regional regulations, tastes and cultural preferences mainly increases your chances of success.

Brand Marketing and Advertising

Language, symbolism and culture need to be studied when marketing and advertising in India. Advertising is subject to some regulation in India. Implementation of these regulations is not as strict as in some other countries unless an advertisement incites public outrage.

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12 Apr 2019

Child Custody Under Muslim Law

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  • Child Custody
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The right to a child’s custody is given solely to a mother till she is as fit guardian under Muslim personal law, this is called the power of Hizanat also it can be enforced against any person including the father.

One thing that must be taken under consideration is that the mother’s right to child custody is not absolute and exists only if such power is in the interest and benefit of her children. Thus, the welfare of the children is at the forefront of Muslim law. The first and foremost right to have the custody of children belongs to the mother, and she cannot be deprived of her liberty so long as she is not found guilty of misconduct. Mother has the right to custody so long as she is qualified. This right is known as the right of Hizanat, and it can carry out against the father or any other person. The mother's power of Hizanat was recognised in the interest of the children and no sense; it is an absolute right.''

Son: Among the Hanafis, it is an established rule that the mother's right of Hizanat over her son ends following her son completes the age of 7 years. The Shias hold the view that the mother is entitled to the custody of her son untill he is accustom. Among the Malikis, the mother's right of Hizanat over her son continues until the child has attained the age of puberty. The rule among the Shafiis and the Hanabalis remains the same.''

Daughter:  Among the Hanafis, the mother is entitled to take custody of her daughters till the age of puberty, and among the Malikis, Shafiis and the Hanabalis the mother's right of custody over her daughters continues till they are married. Under the Ithna Ashari Law, the mother is entitled to the custody of her daughters until they attain the age of 7. The mother has the right of custody of her children up to the periods specified in each school, irrespective of the fact whether the child is legitimate or illegitimate. Mother cannot surrender her right to any person including her husband, the father of the child. Under the Shia school after the mother, Hizanat belongs to the father. In the absence of both the parents or on their not being qualified the grandfather is qualified to custody. Among the Malikis following females are allowed to take charge in the absence of mother: 
- Maternal grandmother
- Maternal great grandmother
- Maternal aunt and great aunt
- Full sister
- Uterine sister
- Consanguine sister
- Paternal aunt

Father's right of Hizanat-
 All the schools of Muslim law recognise the father's power of Hizanat under two conditions that are:
• On the completion of the age by the child up to which mother or other females are qualified to custody.
• In the absence of a mother or other females who have the right to Hizanat of minor children. Father undoubtedly has the powers of selecting a testamentary guardian and entrusting him with the custody of his children. Other male relations entitled to Hizanat are 
- Nearest Paternal Grandfather
- Full Brother
- Consanguine Brother
- Full Brother's Son
- Consanguine Brother's Father
- Full Brother of the Father
- Consanguine Brother of the Father
- Father's Full Brother's Son
- Father's Consanguine Brother's Son

Among the Shias, Hizanat belongs to the grandfather in the absence of the father.''

The Shia law is very definite and lays down that a person who has ceased to be Muslim is not entitled to the custody of the child. Also, having who marries a person not related to the child within the degrees of prohibited relationship forfeits her right of Hizanat. The cardinal principle of Hizanat in Muslim law is the “welfare of the child”. The rights of Hizanat cannot be taken away on account of her insufficiency or want of money to maintain the child. Also, neither the father nor the mother has the right to remove the child from the marital home.

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16 Apr 2019

Rafale Deal And All About The Controversy

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What is Rafale?
Dassault Aviation built a series of a twin-engine fighter jet by name Rafale. They are one of the best combat jets. 

Controversy, How It started?

UPA Deal: India under the UPA government began the process to buy a fleet of 126 Medium Multi-Role Combat Aircraft (MMRCA) in 2007 under the then Defence Minister, A.K. Antony.

Lockheed Martin's F-16s, Boeing's F/A-18s, Eurofighter Typhoon, Russia's MiG-35, Sweden's Gripen, and Dassault Aviation's Rafale were the contenders for the deal.
After a long process, Dassault Aviation emerged as the lowest bidder in December 2012, the original proposal was manufacturing 18 planes in France and other 108 in collaboration with the Hindustan Aeronautics Ltd. at India. Lengthy negotiations took place between the then UPA government and Dassault on prices and transfer of technology. The negotiations continued till 2014 but the deal could not go through.

NDA Deal: Prime Minister Narendra Modi during his visit to France, announced India will purchase 36 Rafale jets in a government-to-government agreement. On April 10, 2015, a joint statement was issued after talks between Modi and the then French President Franois Hollande, which said they agreed to conclude an Inter-Governmental Agreement for the supply of 36 Rafale.

The statement said the Inter-Governmental Agreement for  supply of the aircraft in terms of agreement and  the delivery would be in such time-frame that it would be compatible with the operational terms of IAF; and that the aircraft and  related systems and weapons would be delivered as the same configuration which was tested and approved by Indian Air Force, and longer maintenance responsibility by France.

Chronological order of whole Rafale deal:

- 30th December 2002: Defence Procurement Procedures (DPP) adopted to streamline procurement procedures.

- 28th August 2007: Ministry of Defence issues Request for Proposal for procurement of 126 MMRCA (medium multi-role combat aircraft) fighters.

- 4th September 2008: Reliance Aerospace Technologies Ltd (RATL) incorporated by Reliance group.

- May 2011: Rafale and Eurofighter jets shortlisted by Air Force.

- 30th January 2012: Dassault Aviation’s Rafale aircraft comes up with the lowest bid.

- 13th March 2014: HAL and Dassault Aviation signed a Work Share agreement which made them accountable for the 70 per cent and 30 per cent of the work, respectively, for 108 aircraft.

- 8th August 2014: Arun Jaitley, the then defence minister tells Parliament that 18 direct ‘fly-away’ aircraft expected to be delivered in 3-4 years and remaining 108 aircraft to be delivered in the next seven years from signing of the contract.

- 8th April 2015: The then foreign secretary says detailed discussions underway between Dassault, MoD and HAL.

- 10th April 2015: New deal for the acquisition of 36 direct ‘fly-away’ aircraft from France announced 2016.

- 26th January 2015: India and France sign MoU for 36 Rafale aircraft.

- 23rd September 2015: Inter-governmental agreement signed.

- 18th November 2015: Government states in Parliament that all aircraft will be delivered by April 2022 and the cost of each aircraft to be approximately Rs 670 crore.

- 31st December 2015: Dassault Aviation’s Annual Report shows the actual price paid for the 36 aircraft at about Rs 60,000 crore, more than double the government’s stated price in Parliament.

- 13th March 2018: PIL in SC seeks independent inquiry into Centre’s decision to procure 36 Rafale fighter jets from France and revealing of the cost involved in the deal before Parliament.

- 5th September 2018: SC agrees to hear PIL seeking a stay on Rafale fighter jet deal.

- 18th September 2018: SC adjourns hearing on PIL seeking a stay on Rafale fighter jet deal to October 10.

- 8th October 2018: SC agrees to hear on October 10 fresh PIL seeking direction to Centre to file in “sealed cover” the details of the agreement for buying 36 Rafale fighter Jets.

- 10th October 2018: SC asks Centre to provide details of the decision-making process in the Rafale fighter jet deal in a sealed cover.

- 24th October 2018: Former Union ministers Yashwant Sinha and Arun Shourie and activist-lawyer Prashant Bhushan moves SC and seeks for filing of FIR into Rafale fighter jet deal.

- 31st October 2018: SC asks Centre to give pricing details of 36 Rafale fighter jets within 10 days in a sealed cover.

- 12th November 2018: Centre provides the price details of 36 Rafale fighter jets in a sealed cover to SC. Along with details of steps that led to finalisation of the Rafale deal.

- 14th November 2018: SC reserves order on pleas seeking court-monitored probe in Rafale deal.

- 14th December 2018: SC says there is no occasion to doubt the decision-making process of the Modi government and dismisses all the petitions seeking direction to the CBI to register an FIR for alleged irregularities in the jet deal.

- 15th December 2018: Government moves SC and seeks correction in para which makes reference to CAG report and PAC.

- 2nd January 2019: Former Union ministers Yashwant Sinha and Arun Shourie and activist-lawyer Prashant Bhushan moves SC and seeks for review of Rafale verdict.

- 14th January 2019: Sanjay Singh, AAP MP, moves SC seeking review of Rafale verdict.

- 21st February 2019: Activist-lawyer Prashant Bhushan seeks to hear on a plea seeking perjury prosecution of some officials for misleading court.

- 26th February 2019: SC decides to hear pleas seeking review of Rafale verdict in open court.

- 6th March 2019: Documents related to Rafale deal stolen from Defence Ministry, Centre tells SC, threatens The Hindu newspaper for publishing articles against them.

-8th March 2019: K.K. Venugopal, Attorney General explains that Rafale documents not stolen, petitioners used photocopies.

- 13th March 2019: Centre tells SC, review plea based on leaked secret documents endangers national security.

- 14th March 2019: SC says, Will first decide preliminary objection raised by Centre and reserves verdict.

- 10th April 2019: SC dismisses Centre’s objections claiming privilege and allows use of leaked documents.

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