Okay, here's a detailed summary of the video content:
The last video discussed some development programs of the Third Five-Year Plan, including: SLR (Statutory Liquidity Ratio): A ratio of liquid assets that commercial banks must maintain, introduced by the RBI.NCDC (National Cooperative Development Corporation): An organization to develop the cooperative sector.ARDC (Agricultural Refinance and Development Corporation): An institution that performed functions similar to NABARD before NABARD's establishment.
UTI (Unit Trust of India) - Established in 1964 Full Form: Unit Trust of India.Nature: A mutual or cooperative support organization.Purpose: To serve two groups:Low-income individuals who want to invest. Small companies listed on the stock market that may not attract large investments directly.
The Problem it Solved: Investors' Dilemma: Small investors often lack the capital for large stock market investments and the expertise to choose profitable companies.Companies' Dilemma: Not all listed companies, especially smaller ones, receive adequate investment, as investors tend to focus on well-known, highly profitable companies.
How UTI Worked: Collected small savings from the public. Invested these pooled funds into the shares of various companies. Converted these shares into "units" (e.g., 1 unit = ₹10). Sold these units to small investors (minimum investment, e.g., 100 units = ₹1000).
Benefits: Provided an avenue for low-income groups to participate in the stock market and potentially earn higher returns than bank deposits. Provided capital to companies for expansion. Aimed to boost national production and employment.
Risk vs. Return: UTI investments (mutual funds) are subject to market risks. Higher risk can potentially yield higher returns compared to safer options like bank deposits (connected to James Tobin's "Nasta Bhaya Siddhantam" - Risk Aversion Theory).Evolution of UTI: 1964: UTI established.1994: UTI transformed into UTI Bank (a government bank).2006: UTI Bank was privatized and becameAxis Bank .
Key Exam Dates: UTI (1964), UTI Bank (1994), Privatization into Axis Bank (2006).
IDBI (Industrial Development Bank of India) - Established in 1964 Telugu Name: Bharata Parisramika Abhivrudhi Banku.Purpose: To promote industrial development by providing long-term loans to industries.Evolution: 1964: Established as a subsidiary of RBI.1976: Granted autonomy from RBI.2004: Transformed into IDBI Bank, a government-owned commercial bank (shifting from RBI's ownership to direct government ownership). It was then registered under the Banking Regulation Act, 1949.2019: LIC (Life Insurance Corporation of India) acquired a majority stake (over 51%) in IDBI Bank. Consequently, IDBI Bank came under LIC's management and was reclassified by RBI as aPrivate Sector Bank .Although LIC is a government entity, its operational structure and the majority stake led to this reclassification. The government's direct share in LIC itself is minimal (e.g., 5%).
Current Status: IDBI Bank operates as a private sector bank under LIC's control.
FCI (Food Corporation of India) - Established in 1965 Purpose: Acts as an agent of the Government of India to:Procure and store excess food grains. Manage the Public Distribution System (PDS) by supplying essential commodities to ration shops. Distribute food grains at subsidized prices through fair price shops.
IAAP (Intensive Agricultural Area Programme) - Established in 1965 Telugu Name: Saandra Vyavasaya Pranthala Abhivrudhi Karyakramamu.Nature: An expansion of the earlier IADP (Intensive Agricultural District Programme, started in 1960 in 7 districts).Coverage: IAAP was implemented in 114 districts across India.In undivided Andhra Pradesh, 7 districts were covered: Telangana region (3): Warangal, Karimnagar, Mahbubnagar. Andhra region (4): East Godavari, West Godavari, Krishna, Guntur.
Objective: To increase food grain production through intensive farming methods. It led to an average increase of over 20% in food grain production in these areas.
Agricultural Prices Policy (Vyavasaya Dharala Vidhanamu) - 1965 Recommendation: Based on the L.K. Jha Committee's suggestions.Key Institution Established: Agricultural Prices Commission (APC).Evolution of APC: In 1985, APC was renamedCACP (Commission for Agricultural Costs and Prices) – "Vyavasaya Veyalu Mariyu Dharala Commission."Purpose of the Policy & CACP: To ensure remunerative prices for farmers and manage food grain availability.Key Price Mechanisms Determined/Recommended by CACP: MSP (Minimum Support Price / Kaneesa Maddatu Dhara): Announced by the government before the sowing season for major crops (currently around 22-23 crops).Acts as a safety net; if market prices fall below MSP, the government procures the produce at MSP.
Procurement Price (Sweekarana Dhara): The price at which government agencies (like FCI) purchase food grains from farmers/millers for the PDS buffer stock. This is generally equal to or slightly higher than MSP.
Issue Price (Jaari Dhara): The price at which the central government releases food grains from its buffer stock to state governments for distribution through PDS. Typically, Issue Price > Procurement Price (to cover handling, storage costs), but the difference is subsidized. States would then distribute this, often at further subsidized rates (e.g., ₹1/kg or ₹2/kg rice schemes).
Administered Price (Paalita Dhara): Prices set for products of Public Sector Undertakings (PSUs).
Decision-Making Process for Prices (especially MSP): Recommendation: CACP.Approval: CCEA (Cabinet Committee on Economic Affairs).Announcement: Central Government.
PDS Subsidy: The difference between the economic cost (procurement, storage, transport) and the issue price to states constitutes the central government's food subsidy.Recent Context: The video mentions the PM Garib Kalyan Anna Yojana, under which the central government is providing food grains to states almost free of cost, significantly altering the older PDS subsidy model.
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