Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

The <keyword id="19895876" type="General" weightage="20" keywordseo="Election-Commission-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Election Commission of India" meta.hostid="261" meta.entityid="Election Commission of India">Election Commission of India</keyword> (ECI) has officially announced the schedules for the upcoming Assembly elections in Maharashtra and Jharkhand, setting the stage for crucial state elections next month. Here’s what voters in these states can expect: <h2>Maharashtra: Single-phase voting on November 20</h2>Maharashtra will head to the polls in a single phase on November 20, with vote counting scheduled for November 23. This election will see a high-stakes contest between two major coalitions: the <keyword id="19924537" type="General" weightage="20" keywordseo="Maha-Vikas-Aghadi" source="keywords" meta.keywordsubtype="org" meta.entityname="Maha Vikas Aghadi" meta.hostid="261" meta.entityid="Maha Vikas Aghadi">Maha Vikas Aghadi</keyword> (MVA) and the <keyword id="21555670" type="General" weightage="20" keywordseo="Maha-Yuti-Alliance" source="keywords" meta.keywordsubtype="org" meta.entityname="Maha Yuti Alliance" meta.hostid="261" meta.entityid="Maha Yuti Alliance">Maha Yuti Alliance</keyword>. The MVA consists of <keyword id="19905331" type="General" weightage="20" keywordseo="Uddhav-Thackeray" source="keywords">Uddhav Thackeray</keyword>'s Shiv Sena (UBT), the <keyword id="19895371" type="General" weightage="20" keywordseo="Congress" source="keywords" meta.keywordsubtype="org" meta.entityname="Congress" meta.hostid="261" meta.entityid="Congress">Congress</keyword>, and the Nationalist Congress Party (NCP) under Sharad Pawar. Meanwhile, the Maha Yuti Alliance brings together the <keyword id="19931558" type="General" weightage="20" keywordseo="Bharatiya-Janata-Party" source="keywords" meta.keywordsubtype="org" meta.entityname="Bharatiya Janata Party" meta.hostid="261" meta.entityid="Bharatiya Janata Party">Bharatiya Janata Party</keyword> (BJP), Shiv Sena led by Eknath Shinde, and the Ajit Pawar faction of the NCP. This intense battle for control over the 288-seat Maharashtra Assembly follows the end of the current term on November 26. The model code of conduct has come into immediate effect in Maharashtra, guiding political parties on appropriate campaigning practices and ensuring fair elections. <h2>Jharkhand: Two-phase voting on November 13 and 20</h2>In Jharkhand, voting will occur in two phases: the first on November 13 and the second on November 20. The results will be declared on November 23, alongside Maharashtra’s. This election focuses on the 81-seat Assembly, with a fierce competition expected between the ruling <keyword id="20028356" type="General" weightage="20" keywordseo="Jharkhand-Mukti-Morcha" source="keywords" meta.keywordsubtype="org" meta.entityname="Jharkhand Mukti Morcha" meta.hostid="261" meta.entityid="Jharkhand Mukti Morcha">Jharkhand Mukti Morcha</keyword> (JMM)-Congress alliance and the National Democratic Alliance (NDA), which includes the BJP, All Jharkhand Students Union (AJSU), and Janata Dal (United). Jharkhand’s current Assembly term expires on January 5, 2025. The elections will feature 29,562 polling stations across urban and rural areas to accommodate the state’s 2.6 crore registered voters. This diverse electorate includes 66.84 lakh young voters and 11.84 lakh first-time voters, with special arrangements for 3.67 lakh persons with disabilities. <h2>Pre-election preparations</h2>The ECI’s preparations for the elections began in September, with teams visiting both states to assess readiness. Chief Election Commissioner Rajiv Kumar, alongside Election Commissioners Gyanesh Kumar and Sukhbir Singh Sandhu, met with local officials, district collectors, and political representatives to evaluate logistical arrangements and security measures. In Maharashtra, the Maha Yuti Alliance and the MVA have been ramping up their efforts to secure <keyword id="23060079" type="General" weightage="20" keywordseo="voter-support" source="keywords">voter support</keyword> in what is expected to be a dramatic electoral showdown. In Jharkhand, the ruling JMM, which is part of the INDIA bloc, is eyeing another term despite recent controversies surrounding Chief Minister Hemant Soren, who faced legal challenges earlier this year. The JMM-Congress-RJD alliance remains strong, as the party is expected to contest all 81 seats in the Assembly. (With inputs from agencies)

ECI Announces election schedules for Maharashtra and Jharkhand; both states to vote in November

India’s political landscape is increasingly being defined by the troubling nexus between crime and politics. A study has highlighted a startling correlation: the election of politicians with criminal records is directly linked to a rise in crime across the country, particularly in states with weaker institutional frameworks. As India's political system continues to grapple with this issue, the societal consequences are becoming clear. <h2>A history of <keyword id="23341122" type="General" weightage="100" keywordseo="criminal-politicians" source="keywords">criminal politicians</keyword></h2><keyword id="21026899" type="General" weightage="20" keywordseo="Pappu-Yadav" source="keywords">Pappu Yadav</keyword>, a veteran politician from Bihar, serves as a prime example of this disturbing trend. Having represented his constituency for nearly 25 years, Yadav has faced 41 criminal cases, including serious accusations of murder and kidnapping. Despite his conviction in 2008, Yadav was acquitted in 2013, and he continues to hold political influence. His case is not unique; the political scene in states like Bihar, Uttar Pradesh, and Madhya Pradesh is littered with politicians facing multiple criminal charges. Anant Singh, another prominent figure from Bihar, holds a political career shadowed by 38 criminal cases, including murder, kidnapping, and attempts to murder. These individuals represent a broader pattern where politicians accused of serious crimes continue to serve in public office despite their criminal backgrounds. "They are getting elected, and over time the number has only been going up," remarks lead author Nishith Prakash. "In some states, it could be as high as almost 40% of people who are representing the state have some kind of a criminal accusation." <h2>Crime begets crime</h2>The research delves into the ramifications of electing criminally accused politicians. The study found that states with a higher number of such politicians also experienced increased <keyword id="22044507" type="General" weightage="20" keywordseo="crime-rates" source="keywords">crime rates</keyword>. For example, states like Bihar, Madhya Pradesh, Rajasthan, Odisha, and Uttar Pradesh, known for their historically weak institutions, have seen crime rise by 4.3% annually with the election of criminal politicians. The number increases to 5.8% when the politicians are accused of serious crimes like murder and kidnapping. <div type="Article" hostid="261" msid="113692670" title="What will it take for Kangana Ranaut’s &amp;#39;Emergency&amp;#39; to finally hit theatres?" mstype="2" mssubtype="0"></div>Prakash notes that weak rule of law and institutional failure create fertile ground for such politicians to not only rise to power but also exacerbate the deteriorating law-and-order situation. When politicians themselves are involved in criminal activities, they often manipulate legal and administrative systems, further weakening law enforcement and emboldening criminal networks. The reign of <keyword id="20122630" type="General" weightage="20" keywordseo="lalu-prasad-yadav" source="keywords">Lalu Prasad Yadav</keyword>, president of the Rashtriya Janata Dal political party in Bihar, illustrates the adverse impact criminal politicians can have. Under his leadership, Bihar’s political environment devolved into what is now infamously known as "Jungle Raj," a period marked by rampant kidnappings for ransom, particularly targeting affluent individuals like doctors and schoolchildren. The researchers note that during this time, the kidnapping industry flourished as criminals enjoyed either direct or indirect support from the state. <h2><keyword id="22404298" type="General" weightage="20" keywordseo="impact-on-women" source="keywords">Impact on women</keyword> and <keyword id="19900794" type="General" weightage="20" keywordseo="economic-growth" source="keywords">economic growth</keyword></h2>Beyond the immediate rise in general crime rates, the study revealed alarming statistics regarding crimes against women. Electing criminally accused politicians was found to increase crimes against women by 12.6%. In states where such politicians held office, female labour force participation dropped by 10-11%, as women felt unsafe and chose not to engage in work outside their homes. The research also highlighted the economic toll criminal politicians take on their constituencies. Areas represented by politicians accused of serious crimes saw economic growth lag between 2.3% and 6.5% per year compared to other regions. These leaders often misappropriate public funds, divert resources for personal gain, and enable criminal enterprises, all of which stifle local development. <h2>Legal measures taken</h2>India has made strides in identifying and tracking criminally accused politicians. A landmark 2003 ruling by the <keyword id="19895345" type="General" weightage="20" keywordseo="Supreme-Court" source="keywords" meta.keywordsubtype="org" meta.entityname="Supreme Court" meta.hostid="261" meta.entityid="Supreme Court">Supreme Court</keyword> mandated that candidates for political office must disclose their criminal records, making it easier for voters and institutions to scrutinise their backgrounds. However, the law only disqualifies convicted individuals from running for office, allowing accused politicians to continue their political careers while facing serious charges. <div type="Article" hostid="261" msid="113446721" title="It&amp;#39;s not just the rhetoric — apathy and jokes could be fueling a spiral of retaliatory political violence, expert warns" mstype="2" mssubtype="0"></div>The research conducted by Prakash and his team has caught the attention of Indian courts and the Election Commission. While reform is slow, there is growing recognition that the quality of political leadership has a profound impact on societal outcomes, from crime rates to economic performance. "The quality of politicians matters," Prakash notes. "Who you elect has implications on outcomes that we care about. It could be economic growth, it could be crime against women, it could be labour force participation. These are very important outcomes for society and the economy." The findings of this research have been published in Journal of Law Economics and Organization and can be accessed <a href="https://docs.iza.org/dp15259.pdf">here</a>.

Not only does electing “criminal” politicians often lead to an increase in crime in India, it can also be terrible for the economy: study

New Delhi, Several political parties declined to share details of electoral bond donors citing various legal provisions, while others said they received the funding instruments through "drop box" or by post without any name. The DMK, which received most of its donations from a lottery firm, reached out to its donors to seek details of the electoral bonds as demanded by the <keyword id="19895345" type="General" weightage="20" keywordseo="supreme-court" source="keywords">Supreme Court</keyword> in 2019. The BJP cited the amendments to the Representation of People Act, 1951 and the relevant portions of the Reserve Bank of India Act and the Income Tax Act for not revealing its donors. "It is duly submitted that the electoral bonds were introduced with the aim of bringing only accounted for funds in political funding while protecting the donors from any consequences, therefrom," the BJP said in its letter to the <keyword id="19895782" type="General" weightage="20" keywordseo="election-commission" source="keywords">Election Commission</keyword>. The <keyword id="19895371" type="General" weightage="20" keywordseo="congress" source="keywords">Congress</keyword> shot off a letter to the <keyword id="19934368" type="General" weightage="20" keywordseo="state-bank-of-india" source="keywords">State Bank of India</keyword> (SBI) seeking details of donors of electoral bonds, the amount, the bank account in which it was credited and the date. The SBI responded to the Congress that the details of the electoral bonds were available with the political parties and shared the statement of the bank account which was shared with the Commission. The Samajwadi Party shared details of bonds of relatively smaller amounts of Rs 1 lakh and Rs 10 lakh, but merely mentioned that 10 bonds of Rs 1 crore each were received by post without any name. The DMK, which received almost 77 per cent of its funds from lottery king Santiago Martin's Future Gaming, said it had reached out to the donors of the party to get details of the donations they had made. "The scheme also does not require the details of the donor to be furnished to the donee. ... Be that as it may, following the directions of Hon'ble Supreme Court, we contacted our donors and we were able to collect the details from them," the DMK said. The <keyword id="19910625" type="General" weightage="20" keywordseo="telugu-desam-party" source="keywords">Telugu Desam Party</keyword> mentioned "not readily available" in the column for listing out the names of donors. The <keyword id="19968095" type="General" weightage="20" keywordseo="trinamool-congress" source="keywords">Trinamool Congress</keyword> said the electoral bonds were sent to the party office and were "dropped in the drop box". The party said some bonds were sent through messengers from various persons who wished to support the party, many of whom prefer to remain anonymous. The NCP, then led by Sharad Pawar, expressed inability to furnish details of donors against each bond as the party had not maintained details or issued any receipts. The letter by the NCP to the Election Commission said several of its office-bearers were busy with the election campaign. "Wherever possible we have indicated the name of the person through whom bonds were received by the party," the NCP said. The Goa unit of the Congress reached out to its donor V M Salgaonkar and Brothers to get details of the electoral bonds worth Rs 30 lakh given by them to the party. The RJD said the details about donations worth Rs 1.5 crore were not readily available. The Nitish Kumar-led Janata Dal (United) has told the Election Commission that someone delivered to its office an envelope with electoral bonds worth Rs 10 crore in 2019, which were redeemed by the party.

Electoral bonds dropped at office, received by post, say political parties

<ul class="summary-list"><li>Elon Musk is breaking ground as a pro-Trump megadonor.</li><li>While he may not donate the most money this cycle, Musk is behaving unlike any of the uber wealthy Americans before him.</li></ul>America has never seen a megadonor quite like <a target="_blank" class="" href="https://www.businessinsider.com/elon-musk-campaign-trail-pennsylvania-donald-trump-key-swing-state-2024-10">Elon Musk</a>.On Thursday, the world's richest man held a town hall event in Pennsylvania, the largest swing state in the 2024 race. The Tesla CEO has pledged to hold more events to promote former President Donald Trump's election. Musk has also seeded at least<a target="_blank" class="" href="https://www.businessinsider.com/elon-musk-trump-america-super-pac-2024-10"> $75 million</a> into a pro-Trump super PAC. His pro-Trump group, <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/elon-musk-trump-america-pac-targets-young-men-vote-2024-9">America PAC</a>, even offers to pay people $47 if they get supporters to sign a petition, which in turn gives the outside group valuable data on potential swing voters. On Friday, Musk upped the offer even further, pledging $100 for every Pennsylvania voter."Elon Musk is sort of a natural for Donald Trump, " journalist Roger Lowenstein, who wrote a biography about Warren Buffett, told Business Insider.Musk, despite his $247 billion estimated net worth, isn't the biggest donor this presidential election cycle. According to <a target="_blank" class="" href="https://www.opensecrets.org/outside-spending/top_donors">OpenSecrets</a>, among disclosed donors, that title belongs to banking heir <a target="_blank" class="" href="https://www.businessinsider.com/who-timothy-mellon-robert-kennedy-donald-trump-billionaire-2024-6">Timothy Mellon</a>, who has spent a staggering $165 million on boosting Trump and Robert F. Kennedy Jr. (We won't know the full extent of 2024 donations until after the election, and that excludes so-called "dark money" groups, which, unlike super PACs, do not have to disclose their donors.)But where Musk stands out is among the richest of the rich. While there have been plenty of wealthy mega-donors -- the Koch brothers, the Adelsons, Michael Bloomberg, and others have spent hundreds of millions on super PACs -- the men who recently preceded Musk as the wealthiest American and the world's richest person have not been nearly as involved. Musk is taking a far different tact than Bill Gates, Jeff Bezos, and Warren Buffett."The richest man in the world fluctuates over time but not all of them have been able or even wanted to spend money in politics in the past four presidential elections," Ciara Torres-Spelliscy, a law professor at Stetson University, who has studied big money in politics, told Business Insider.Lowenstein pointed out how even Musk's temperament differs exceptionally from someone like Buffett."Warren just couldn't be more different," Lowenstein said. "This isn't affected by the fact that Warren was measured to be the richest person in the world. He is very careful about what he says. He does not like personal confrontations. He has always been fascinated by the pragmatic issues of policy. He doesn't get out there and say, you know, so and so is running the country or all the name-calling that is the political system these days. It's just not his bag."Even Musk has changed. Before this cycle, the largest single political donation he had ever given was $75,000 to Californians for Clean Alternative Energy in 2006. His final 2024 total is already more than 1,000 times that.<div type="image" title="Elon Musk with former president Donald Trump" height="2633" width="3949" msid="114397395" hostid="261" sizebytes="148502"></div>It remains to be seen what the South African-born tech titan has in store, but already he is showing an openness to rely on his fortune and his businesses in distinct ways the other three have not.Just look at how Musk has shaped X, formerly known as Twitter. It begins with his own account, which has roughly 202 million followers.Musk, who once said he voted for Barack Obama, has pushed memes and misinformation on the platform as he's become increasingly vocal about his views. He also lifted bans on Trump and other right-wing voices. According to The New York Times, X blocked links to a report with hacked information about Sen. JD Vance, Trump's running mate, after the Trump campaign reached out. Recently, Musk's company seized the @America handle to boost his super PAC.In the post-<a target="_blank" class="" href="https://www.businessinsider.com/citizens-united-supreme-court-precedent-political-hypocricy-desantis-disney-feud-2023-4">Citizens United</a> world, the nation's billionaires have dug deep to support outside organizations whose ad spending blitzes can shape elections. Over time, the hard ban on campaigns coordinating with super PACs, a limit that always allowed for some creative loopholes, has been further eroded. Super PACs can now explicitly partner with the campaigns on get-out-the-vote efforts for the first time. Trump's campaign is relying on America PAC along with other outside groups to make up the difference for this once critical role for campaigns.<h2 id="254490b1-6509-4044-ae33-54464a618e95">Citizens United blew open the door to big money in politics.</h2>The Supreme Court's 2010 landmark decision and related lower court rulings opened the door to super PACs. There was almost immediate concern about how the nation's wealthiest would shape elections, especially presidential races. According to reporter Ken Vogel's 2012 book, "Big Money," President Barack Obama told a room that included Bill Gates, then-the wealthiest American and previously the world's richest person, that he and a small group of people now had outsize power."You now have the potential of 200 people deciding who ends up being elected president every single time," Obama told the room that also included Steve Ballmer, who later replaced Gates as Microsoft CEO.Around the same time, Buffett, who briefly replaced Gates as the world's richest person in 2008, made clear that he would stay out of the super PAC business."I don't want to see democracy go in that direction," Buffett told Berkshire Hathway shareholders during an open Q and A at the multinational's 2012 meeting in Omaha. "You have to take a stand some place."It wasn't that Buffett and Gates didn't have political power.The Oracle of Omaha was the face of the Obama administration's push to raise taxes on the wealthy, the so-called "Buffett rule." And during a 2008 presidential debate, both Obama and Republican presidential nominee John McCain floated the investor as a potential Treasury secretary. (Buffett never joined the Obama administration.)Buffett also publicly endorsed Hillary Clinton in 2016 and Joe Biden in 2020. He held a fundraiser for Obama in 2012. Thanks to Nebraska's way of awarding Electoral College votes, he's also lived through the era in which the <a target="_blank" class="" href="https://www.businessinsider.com/trump-nebraska-2nd-electoral-college-vote-omaha-harris-mcdonnell-2024-9">Nebraska 2nd Congressional Distric</a>t, which covers Omaha and some of the metro area, has become a fierce political battleground. The city's oracle has yet to make a 2024 endorsement.<div type="image" title="Warren Buffett speaks at a 2016 rally in Omaha where he talked about his support for Hillary Clinton" height="1472" width="2500" msid="114397396" hostid="261" sizebytes="124894"></div>Gates praised Harris after she replaced Biden earlier this summer. He has also been a more outspoken critic of Trump. Gates, through his and his now-ex-wife Melinda French Gates' foundation, played a major role in shaping the US response to the COVID-19 pandemic. He also arguably held the largest media presence of the American billionaires until Musk rocketed into the top slot.None of the other recent wealthiest men have come close to Musk's super PAC spending. Bezos made the biggest splash in 2018 when they donated <a target="_blank" class="" href="https://www.cnbc.com/2018/09/05/jeff-bezos-donates-10-million-to-super-pacwith-honor-fund.html">$10 million to With Honor</a>, a super PAC that supported veteran candidates. Unlike America PAC, though, With Honor was geared to support candidates from both parties.Both Buffett and Bezos also held or held stakes in media companies. Bezos still owns The Washington Post (which, full disclosure, previously employed me.) But neither man positioned those publications in the way Musk has harnessed X.Of the unofficial group, Buffett was arguably the best positioned for a career in politics. While he's most associated with Nebraska's largest city, he was born in the nation's capital, the son of an avowed anti-Communist congressman. Instead, he has pursued a much softer and less public power flexing."He's a pretty good listening post, and for those who want, a pretty good advice giver," Lowenstein said. "That way, he has a lot of influence. Obviously, that effectiveness wouldn't be there if it became public."

Elon Musk is flexing his wealth and political power unlike any of the richest men before him

With day temperatures in Malkangiri and Nabarangpur districts of Odisha hovering between 39 and 42 degrees Celsius, <keyword id="20013498" type="General" weightage="20" keywordseo="political-parties" source="keywords">political parties</keyword> are focusing more on <keyword id="21403450" type="General" weightage="20" keywordseo="evening-meetings" source="keywords">evening meetings</keyword> and small village gatherings while <keyword id="20013328" type="General" weightage="20" keywordseo="campaigning" source="keywords">campaigning</keyword> for the Lok Sabha and Assembly elections. Malkangiri district under Nabarangpur Lok Sabha seat recorded the highest temperature of 42 degrees Celsius recently. The India Meteorological Department (IMD) has forecast more heatwaves in the next few days in the state. Odisha's Chief Electoral Officer (CEO) Nikunj B Dhal has suggested that political parties and candidates undertake <keyword id="19895095" type="General" weightage="20" keywordseo="election" source="keywords">election</keyword> campaigning with adequate measures to beat the heat. BJP candidate for Nabarangpur Lok Sabha seat Balabhadra Majhi said, "I had prepared a chart for my campaigning soon after the declaration of the tickets but altered my campaigning itinerary due to the scorching temperature, focusing more on evening meetings and small village gatherings." Pradeep Majhi, BJD candidate for the Nabarangpur Lok Sabha seat acknowledged that <keyword id="19933152" type="General" weightage="20" keywordseo="heatwave" source="keywords">heatwave</keyword> has caused disruption in his election campaign but was optimistic about overcoming these challenges before the election date. Many candidates, including Kaliram Majhi, BJP's candidate for the Koraput Lok Sabha seat, emphasized the shift towards indoor campaigning due to the unbearable heat, limiting outdoor rallies and roadshows. "We are unable to take out roadshows and rallies because of the prevailing heat. Hence, I prefer indoor campaigning to outdoor meetings," said Tara Prasad Bahinipati, the Congress candidate for the Jeypore assembly seat under Koraput Lok Sabha seat. The incumbent Koraput MP and Congress candidate for the Koraput Lok Sabha seat Saptagiri Sankar Ulaka highlighted the importance of staying hydrated and taking afternoon breaks to combat the heat during campaigning. "Though I have planned for a few rallies in urban areas, seeing the heatwave has temporarily halted it. Presently, I am focusing on indoor meetings with the people of my constituency," said Ulaka. On Monday BJD Puri Lok Sabha constituency candidate Arup Patnaik was rushed to hospital after he fell down during campaigning near Pipili town in Puri district due to heatwave conditions. However, his health condition later improved after hospitalisation. SEE ALSO:<a href="https://www.businessinsider.in/tech/mobile/news/google-pixel-8a-may-be-more-expensive-than-its-predecessor-as-per-a-new-leak/articleshow/109499394.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/google-pixel-8a-may-be-more-expensive-than-its-predecessor-as-per-a-new-leak/articleshow/109499394.cms" target="_blank">Google Pixel 8a may be more expensive than its predecessor, as per a new leak</a><a href="https://www.businessinsider.in/tech/mobile/webstories/best-smartphones-under-25000-in-india/slidelist/109529634.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/webstories/best-smartphones-under-25000-in-india/slidelist/109529634.cms" target="_blank">Best smartphones under ₹25,000 in India</a><a href="https://www.businessinsider.in/sports/webstories/at-17-indian-chess-prodigy-d-gukesh-becomes-youngest-challenger-for-world-championship/slidelist/109492021.cms" target="_blank"></a> <a href="https://www.businessinsider.in/sports/webstories/at-17-indian-chess-prodigy-d-gukesh-becomes-youngest-challenger-for-world-championship/slidelist/109492021.cms" target="_blank">At 17, Indian chess prodigy D Gukesh becomes youngest challenger for World Championship</a>

Heatwave: Political parties focusing more on evening meetings, small gatherings

Donald Trump is running for president for the third time. Here's the lowdown on his personal life, career, and politics.

Imagine this. You have a younger sibling you’re mighty envious of. And why not? Unlike you, they seem to enjoy all the freedom and money in the world. They party like there’s no tomorrow, and here you are, stuck in a boring, ultra-disciplined but responsible routine that feels completely devoid of any independence, and mostly, funds. But of late, things are changing. This sibling is in massive trouble and just cannot escape the parent’s wrath anymore. Long story short, the party is over, and it is time to go back home. The rising defaults on this sibling’s part have now begun pulling the entire house down, thereby attracting the regulator’s ire. <h2>The Wild West of microfinance and unsecured loans</h2>It's hard to ignore the issues with microfinance and unsecured loans in India. Many saw them as a small gamble and ignored the rising defaults much like the younger siblings’ tantrums, and now they find themselves in hot waters. The skyrocketing instances of non-payments aren't a micro-issue anymore and are threatening the stability of the entire banking system. In the quarter ended September 30, 2024, 5 of India’s 8 largest private sector <keyword id="19934118" type="General" weightage="20" keywordseo="banks" source="keywords">banks</keyword> reported a steep rise in their bad loan book, mostly thanks to microfinance loans. Some banks, in a bid to strengthen their fortress against these <keyword id="142154" type="General" weightage="100" keywordseo="bad-loans" source="Orion">bad loans</keyword>, have significantly upped their provisions. For instance, <keyword id="46717" type="General" weightage="20" keywordseo="IndusInd-bank" source="Orion">IndusInd Bank</keyword> set aside Rs 525 crore during July and September 2024 to battle the menace of defaults on microfinance loans, which make up about 9% of its total loan book. See, banks rely heavily on their interest income, which they earn from advancing loans. Any loan where the borrower has not paid interest to the bank or defaulted for 90 days or more becomes bad, i.e., an <keyword id="79363" type="General" weightage="20" keywordseo="npa" source="Orion">NPA</keyword>, or non-performing asset for the bank. And who likes things going bad? Simply put, there has been a steep rise in three areas, much to the dislike of banks and MFIs (micro-finance institutions). But hey, it's mostly their doing! <ol><li>GNPA ratio (gross net performing assets): The quantum of non-performing assets a bank has in proportion to its total assets.</li><li>Provision: The amount banks set aside to take care of such NPAs.</li><li>Slippage ratio: The rate at which good girls go bad, or the speed at which good loans turn into NPAs</li></ol>But how are these plaguing the Indian banking sector? And what does the road ahead look like? We decode it for you. <h2> Microfinance: A not-so-micro-menace</h2>Microfinance loans were initially brought forth for low-income households and individuals, i.e. for those who might not generally have access to traditional ways of credit, like bank loans and more. They don’t require collateral or an asset to be pledged in lieu of the loan, making it a tad bit easier for borrowers. As of June 2024, the amount of outstanding loans in the microfinance industry stood at a staggering Rs 4,20,256 crore. Of this, NBFC-MFIs accounted for 40% and banks made for 33% of these. In 2022, <keyword id="30067" type="General" weightage="20" keywordseo="RBI" source="Orion">RBI</keyword>, in a bid to inspire some competition in this space, did something radical-they did away with the ceiling on how much interest MFIs could charge their customers. Previously, MFIs could add up to 12% to their cost of acquiring funds to determine the final interest rate chargeable to the consumer. So, assuming that Bank A incurs a 5% cost to acquire funds for further loaning, A could charge up to 17% interest from the end consumer. So, interest rates were in the hands of MFIs, and boy, did they have a gala time with it. Instead of spurring some healthy competition, as RBI expected, MFIs and banks went rogue and all guns blazing, competing for the title of “Who will charge the highest interest?” Recently, RBI banned 4 microfinance institutions (MFIs), namely Asirvad Micro Finance Limited, Arohan Financial Services Limited, DMI Finance Private Limited, and Navi Finserv, from disbursing loans effective October 21, 2024. Why? Because they were charging 14% extra interest over their original cost of funds. To maintain their loan books (and pockets), banks and NBFCs resorted to shady practices like netting off loans, which RBI has now advised MFIs against. Here, lenders allow borrowers to settle a previous outstanding loan by issuing them a new loan! As crazy as it sounds, it helped banks to report less of their total assets as NPAs, since the new credit would cover pending installments of the borrower’s previous loan. Then there was the issue of borrowers overleveraging, i.e. taking multiple loans using different IDs from various lenders and then failing to honor any of them. The consequence? Banks and NBFCs end up with massive NPAs. Data from credit bureaus suggests that over the last quarter, there was a 17.2% rise in the number of borrowers who had 5 or more active loans at the same time. <h2>Growth &gt; Caution</h2>It's an age-old tale unfolding yet again in India’s banking sector- Icarus flew too close to the sun and eventually, fell to its death. Between April and June 2024, NBFCs microfinance portfolio jumped by 2.7%. If you see this in terms of loan sources, microfinance loans issued by banks grew by 11.2% in Q1FY25. But the same portfolio in NBFCs swelled by almost double-23.9%. While most of these loans had an average ticket size between Rs 30,000-50,000, there was a sharp spike in the number of loans that had a ticket size of Rs 80,000 or more. Data suggests that as of March 2024, more than 12% of all microfinance borrowers had over 4 or more active loans. In dating parlance, this is a classic case of borrowers going polyamorous, minus the honesty and transparency. Not the best of situations, you'd agree! <h2>Will banks and NBFCs stand up to this stress?</h2>If their results for Q2FY25 are to be believed, NBFCs are not handling the pressure all that well. Or even slightly well. Only a few banks like Bank of Baroda (BoB), ICICI, and Indian Bank were up for the battle, even witnessing a decline in their loan delinquencies. Some others, like IndusInd Bank, saw their stock dip by a massive 16.2% over the last 5 days. Its slippages in the previous quarter burgeoned from Rs 15.3 billion in Q1FY25 to Rs 17.9 billion in Q2. As a result, the bank pushed a staggeringly high amount of money to create an NPA cushion for itself. While its management has highlighted its preference for secured lending, that was hardly reflected in its actions during the quarter, where growth in unsecured personal loans remained exceptionally high at over 7% on a QoQ basis. Turns out, only 44% of customers in IndusInd Banks’ microfinance loan portfolio were exclusive to it. The rest 47% were, you guessed it right-polyamorous! 27% had borrowed from another lender as well, apart from IndusInd Bank, while 20% were those who had outstanding loans with two other lenders, apart from IndusInd Bank. IndusInd Bank’s credit card segment did not miss the NPA bus and accounted for 7-8% of its GNPAs. Canara Bank’s total slippages during the previous quarter jumped to Rs 11.1 billion, up by 24.7% QoQ, and making up for 3.6% of its total loans. As for Bandhan Bank, its <keyword id="763994" type="General" weightage="20" keywordseo="Gross-NPA" source="Orion">gross NPA</keyword> for Q2FY25 inched up on a QoQ basis, up from 4.23% in Q1, to 4.68% in the second quarter. <keyword id="62152" type="General" weightage="20" keywordseo="IDFC-bank" source="Orion">IDFC Bank</keyword>’s heavy provisioning for its NPAs marred its profits significantly, causing its PAT (profit after tax) to dip by 73% on a YoY basis. Data from ICRA Analytics suggest that the AUM (asset under management) growth in microfinance loans and unsecured (personal and business) loans by the NBFCs will moderate to 10-12% and 19-21%, respectively, in FY2025 compared to 30% and 38%, in FY2024. Says A M Karthik, Senior Vice President &amp; Co-Group Head, Financial Sector Ratings, ICRA, “As bank funds constitute a larger share in the overall funding of NBFCs, a slower credit flow from banks to the NBFCs will compress their AUM growth. The NBFCs in unsecured and digital lending businesses shall face a higher squeeze in funding compared to others, and the unsecured lending space will continue to be a source of stress in the near term.” There has been uninhibited growth in unsecured loans, apart from just the microfinance segment. For instance, Axis Bank’s gross slippages jumped by Rs 4,443 crore, largely thanks to its unsecured business. The same is the case with Yes Bank, which saw 35–40% of its retail slippages emerging from the unsecured loan portfolio. Kotak Mahindra Bank was also quick to follow Yes Bank’s suit, with around 35%-40% of its slippages coming from credit cards. <h2>How is the road ahead?</h2>While RBI has just cracked its whip and served a warning at the moment, experts at Morgan Stanley believe that more changes (read regulatory lashes) are underway. Moreover, with both festive and wedding seasons underway in our country, unsecured lending might pick up momentum, much to the disdain of the calibrated approach banks have been taking towards it so far. But if the situation doesn't improve, RBI will not waste any time in becoming the typical tyrannical Bollywood headmaster who runs his dominion with an iron fist and takes things (and ceiling rates) into their own hands. However, that's a story for another day.

Is the lending party over? The dangerous tango of Indian banks with microfinance and unsecured loans

It is a momentous day for the country as we finally enter the vote-counting phase of the <keyword id="20181062" type="General" weightage="20" keywordseo="2024-Lok-Sabha-election" source="keywords">2024 Lok Sabha election</keyword> process on June 4. The 80-day, seven-phase-long process has been marred with a wide range of issues ranging from weather turmoil to vote tampering and reelections. As the final leg of counting concludes in a few hours, here’s what the vote tallying process looks like, and what is likely to happen after after the final results are announced. <cmsannotation type="cmsannotation" annotationid="Vote counting" comment="subhead" text="Vote counting"><keyword id="389062" type="General" weightage="100" keywordseo="vote-counting" source="Orion">Vote counting</keyword></cmsannotation> While the election process takes place in several stages, the vote tallying process is carried out simultaneously in all of the country’s 543 constituencies, with typically one counting centre in each. The tallying is done by a ‘Returning Officer’ and their assistants — officials appointed by the <keyword id="19895876" type="General" weightage="20" keywordseo="Election-Commission-of-India" source="keywords">Election Commission of India</keyword> — in several rounds, or ‘leads’. This year, the counting process began at 8 AM IST on June 4, and is expected to carry on till beyond the afternoon. It will start with the tallying of postal ballots — ballot papers distributed to some categories of people — followed by the <keyword id="21930663" type="General" weightage="20" keywordseo="EVM-count" source="keywords">EVM count</keyword>. Periodically, the results of the ongoing count are announced to the media and then televised, helping the nation learn of the current political trend. <cmsannotation type="cmsannotation" annotationid="The counting process for the Lok Sabha Election" comment="subhead" text="The counting process for the Lok Sabha Election">The counting process for the Lok Sabha Election</cmsannotation> Under Rule 54 A of the Conduct of Elections Rules 1961, the process for counting votes starts with postal ballots at the Returning Officer's (RO) table. Thirty minutes into postal ballot counting, Electronic Voting Machine (EVM) votes can be counted, or immediately if no postal ballots are present. Counting officials must ensure that the EVM's Control Unit (CU) seal is intact and that the total votes match Form 17C before counting. Results from the CU are recorded in Part-II of Form 17C, and verified by the counting supervisor, micro observer, and candidate agents. If the CU's display fails, <keyword id="20991106" type="General" weightage="20" keywordseo="VVPAT-slips" source="keywords">VVPAT slips</keyword> are counted post-CU counting. Results for each CU are documented and signed in Form 17C, which is then sent for compiling the final result in Form 20. VVPAT slip counting starts after CU votes are counted, with mandatory verification of VVPAT slips from five random polling stations per constituency. If the victory margin is less than the rejected postal ballots, those ballots are re-verified before declaring the result. In case of a tie, the winner is determined by a draw of lots. <cmsannotation type="cmsannotation" annotationid="Results are announced" comment="subhead" text="Results are announced">Results are announced</cmsannotation> The outcome for each constituency is announced as soon as counting concludes. As per <keyword id="3658" type="General" weightage="20" keywordseo="india" source="Orion">India</keyword>’s counting system, the candidate with the highest number of votes will win for a particular constituency, regardless of whether they are able to manage a majority. These results are generally televised throughout the day. After the <keyword id="19895782" type="General" weightage="20" keywordseo="election-commission" source="keywords">Election Commission</keyword> of India (ECI) has tallied all 64 crore votes that were cast this year, the constitutional body will announce the results for all 543 seats. Subsequently, if the winning party of the alliance has secured at least 272 seats, the institution’s president will call upon the leader of the winning party to form a government for the next five-year term. If no group is able to achieve a clear majority, political parties may form coalitions to reach the 272 magic number. If all negotiations fail and a “minority government” cannot be formed by the largest party, the President of India may dissolve the Lok Sabha (lower house of Parliament) and announce fresh elections. The next Lok Sabha must be announced before the current term ends on June 16. Most exit polls have indicated another landslide victory for the Bharatiya Janata Party-led National Democratic Alliance, with a third term for Prime Minister <keyword id="19895781" type="General" weightage="20" keywordseo="narendra-modi" source="keywords">Narendra Modi</keyword>. However, early trends suggest that the Congress-led INDIA bloc is performing far better than expected. Results are expected to be clearer by the afternoon.

You Searched For "banning political parties in India" and got 8 results

ECI Announces election schedules for Maharashtra and Jharkhand; both states to vote in November

BI India Bureau

Not only does electing “criminal” politicians often lead to an increase in crime in India, it can also be terrible for the economy: study

Ankush Banerjee

Electoral bonds dropped at office, received by post, say political parties

PTI

Elon Musk is flexing his wealth and political power unlike any of the richest men before him

Brent D. Griffiths

Heatwave: Political parties focusing more on evening meetings, small gatherings

PTI

Donald Trump is running for president for the third time. Here's the lowdown on his personal life, career, and politics.

Alice Tecotzky

Is the lending party over? The dangerous tango of Indian banks with microfinance and unsecured loans

Ira Alok Puranik

What will happen after the election commission finishes counting all Lok Sabha votes?

Ankush Banerjee

Popular Keywords

Buying Guides