DSpace Collection:http://dspace.library.iitb.ac.in/xmlui/handle/100/138032018-04-18T21:12:17Z2018-04-18T21:12:17ZFault Lines in Implementation of Minimum Balance Rule for Savings Bank Accounts in IndiaDas, Ashishhttp://dspace.library.iitb.ac.in/xmlui/handle/100/221272017-12-28T09:49:08Z2017-01-01T00:00:00ZTitle: Fault Lines in Implementation of Minimum Balance Rule for Savings Bank Accounts in India
Authors: Das, Ashish
Abstract: The objective of this note is to highlight the true features of a significant regulation put in place by RBI on levy of penal charges for non-maintenance of minimum balance in savings bank accounts. Banks have been given freedom to prescribe their minimum balance requirements in normal savings bank accounts. However, there are certain far reaching guidelines that banks need to follow when it comes to levy of charges for non-maintenance of the same. While arriving at the charges for non-maintenance of minimum balance, banks are required to ensure that (i) the penal charges are a fixed percentage levied on the shortfall, i.e., the amount of difference between the actual balance maintained and the minimum balance prescribed by bank, and (ii) the penal charges are reasonable and not out of line with the average cost of providing the services.
While giving some freedom to banks on the quantum of charges, the spirit and suitability of the regulation hinges on RBI’s fundamental policy, wherein it tried to judiciously link methods like (a) banks paying interest, in percentage terms, on the amount held under deposits, (b) banks charging interest, in percentage terms, on loan balances in accounts, and (c) savings deposit account holders paying a penal fee for non-maintenance of minimum balance, in percentage terms, on the shortfall amount.
This note shows that banks have set their penal charges in violation to the spirit behind the regulation by not framing the charges as a fixed percentage of shortfalls. It is observed that most of the banks have set some slab structure in a manner that vitiates the fundamental principle of charges being a fixed percentage of the shortfall. Furthermore, for most of the banks, the charges when considered as a percentage of shortfalls work out to an average rate of 6.5% of every month's shortfall, which is equivalent to a penal rate of 78% per annum. This high rate of penalty appears to have no correlation with the costs for arranging such funds at, say, the call money market rate. The present charges for the cost of shortfall funds are camouflaged in a manner which doesn’t look exploitative but are actually so. RBI may like to see if it is fair for the banks to let their charges remain as is, disregarding the underlying and intended spirit of the regulation.
This report has been prepared to facilitate the regulator and the banks to come out with meaningful supervisory steps and corrections, while taking forward normal savings bank accounts in the right perspective and thus supporting the country’s financial inclusion drive.2017-01-01T00:00:00ZEfficient algorithms using subiterative convergence for Kemeny ranking problemBadal, Prakash SDas, Ashishhttp://dspace.library.iitb.ac.in/xmlui/handle/100/184342017-12-02T07:17:54Z2017-10-24T00:00:00ZTitle: Efficient algorithms using subiterative convergence for Kemeny ranking problem
Authors: Badal, Prakash S; Das, Ashish
Abstract: Multidimensional ranking is useful to practitioners in political science,
computer science, social science, medical science, and allied fields. The
objective is to identify a consensus ranking of n objects that best fi ts independent rankings given by k different judges. The Kemeny distance is
used as a metric to obtain consensus ranking. For large n, under present
computing powers, it is not feasible to identify a consensus ranking. To
address the problem, researchers have proposed several algorithms. These
algorithms are able to handle datasets with n up to 200 in a reasonable
amount of time. However, run-time increases very quickly as n increases. In
the present paper, we propose two basic algorithms - Subiterative Convergence and Greedy Algorithm. Using these basic algorithms, two advanced
algorithms - FUR and SIgFUR are developed. We show that our results are
superior both in terms of Kemeny distance, as a performance measure, and
run-time to existing algorithms. The proposed algorithms, even for large n,
runs in few minutes.2017-10-24T00:00:00ZBasic Savings Bank Deposit Account - Complex Design, Faulty ImplementationDas, Ashishhttp://dspace.library.iitb.ac.in/xmlui/handle/100/184332017-12-03T13:48:16Z2017-06-26T00:00:00ZTitle: Basic Savings Bank Deposit Account - Complex Design, Faulty Implementation
Authors: Das, Ashish
Abstract: This work is a culmination of in-length correspondence with RBI and select banks, regarding how banks had been handling the RBI mandated savings product, the Basic Savings Bank Deposit Account (BSBDA). With about one-third of the savings bank accounts opened (or currently in place) being BSBDAs, the banks have done a remarkable job, at least on paper, for opening BSBDAs. Nevertheless, there are certain issues, both technical and commercial in nature, which are not taking forward this zero balance savings account product in the right perspective. Based on the queries posed to RBI and four of the study banks and inputs received therefrom, this report has been prepared to facilitate the regulator and the banks come out with meaningful corrections, while taking forward BSBDAs.
In the report, (i) we provide the regulatory backdrop in the form of a historical perspective of BSBDA and thereafter understand BSBDA through communications with RBI and banks, (ii) we present findings of a designed survey of bank branches conducted to study the awareness towards BSBDA by bank staff and ease of opening such accounts by citizens, (iii) we study the banks’ websites where we look into service charge for BSBDA and disclosures made by them in this regard, (iv) we discuss the service charge regulations and supervisory requirement for ensuring compliance by banks, and (v) we suggest a simple and implementable design changes in BSBDAs.2017-06-26T00:00:00ZPSEUDO GENERALIZED YOUDEN DESIGNSDas, AshishHorsley, DanielRakhi, Singhhttp://dspace.library.iitb.ac.in/xmlui/handle/100/184322017-12-03T13:48:37Z2017-04-19T00:00:00ZTitle: PSEUDO GENERALIZED YOUDEN DESIGNS
Authors: Das, Ashish; Horsley, Daniel; Rakhi, Singh
Abstract: Sixty years ago, Kiefer (1958) introduced generalized Youden designs (GYDs) for eliminating heterogeneity in two directions. A GYD is a row-column design whose k rows form a balanced block design
(BBD) and whose b columns do likewise. Later Cheng (1981a) introduced pseudo Youden designs (PYDs) in which k = b and where the k rows and the b columns, considered together as blocks, form a
BBD. Kiefer (1975a) proved a number of results on the optimality of GYDs. A PYD has the same optimality properties as a GYD. In the present paper, we introduce and investigate pseudo generalized Youden designs (PGYDs) which generalise both GYDs and PYDs. A PGYD is a row-column design where the k rows and b columns, considered together as blocks, form an equireplicate generalized binary variance balanced design. Every GYD is a PGYD and a PYD is
exactly a PGYD with k = b. We show, however, that there are situations where a PGYD exists but neither a GYD nor a PYD does. We obtain necessary conditions, in terms of v, k and b, for the existence
of a PGYD. Using these conditions, we provide an exhaustive list of parameter sets satisfying v \leq 25; k \leq 50; b \leq 50 for which a PGYD exists. We construct families of PGYDs using patchwork methods based on affine planes.2017-04-19T00:00:00Z