Social Studies Reference - Class 10 - Unit 8

Unit:8

                                                        Economic Activities

                                                                 Lesson:1

                                                        The Current plan- 15

Objectives of the unit

·         Define economic planning along with its all features,

·         Introduce the importance, possibilities, problems and the solutions of tourism of Nepal,

·         Highlight the water resource of Nepal,

·         Introduce the foreign employment along with possibilities, problems and their solutions,

·         Highlight the significance of cooperatives in Nepal,

·         Illustrate the need of financial education with its importance,

·         Introduce the financial instruments,

·         Highlight insurance along with its importance,

·         Define tax and revenue and taxation system of Nepal,

·         Introduce the consumer rights. 

The important points of the unit.

 

·         A detail plan or guideline prepared by an organization or a nation to achieve the desired goal being based on the available means and resource is said economic planning.

·         Economic plan helps to gain the aimed development activities of a nation.

·         The concept of periodic plan was brought by USSR in 1928 AD. It was the first five years plan introduced in world.

·         The concept of periodic plan was introduced in Nepal after end of Rana rule in 2013 BS.

·         These five years plan came up to 2063 BS. after the advent of Loktantra in 2063BS. interim period got started and three years interim plan was brought into the practice.

·         The present plan is the Fifteenth Plan. It is being operated from this year 2077 BS.

·         All the plans are prepared on the basis of Vision, Goals and Objectives.

·         People who visit from one place to another is called tourist.

·         People who visit within their own country is called internal tourist.

·         The business activities related to tourism activities and called tourism industry.

·         People who visit from one country to another country is called external tourist.

·         People visit with various purposes, like enjoying holidays, official works, trekking, pilgrimage, etc.

·         Tourism is a good economic activity which support in the economic development of a nation.

·         Nepal is well known for adventurous tourism in the world.

·         Mountains, fast flowing rivers, ancient art and cultures and well known heritages of Nepal are known in the world.

·         The government of Nepal has made a good plan for development of tourism sectors.

·         The government of Nepal has made plan to observe 2020 as Visit Nepal 2020 as tourism year but it was ill fortune of the nation that the spread of  Covid -19 and pandemic supported to postpone it.  

·         Nepal is very country in water resource.

·         There are three type rivers found in Nepal.

·          Rivers start from Himalaya are very big with enough water. They very famous for tourism activities.

·         They suitable for hydroelectricity.

·         The rivers starting Mahabharat range are little smaller in the comparison to perennial rivers.They are suitable for irrigation. Many irrigation projects are being run. They are Bagnati, Sikta, Kamala etc.

·         Going abroad for employment is foreign employment. Foreign employment is the back bone of the national economy of Nepal.

·         About fifty lakh youth of Nepal are working in abroad in the name of foreign employment.

·         Bakhan Cooperative is the first cooperative of Nepal. It was established in 2013 B.S.

·         The Cooperative Act was enforced in 2016 B.S.

·         The Cooperative Bank was established in 2020 B.S.

·         The act of working together and sharing the benefits together is said cooperative.

·         Guthi, Perma, Dhikuti, Dharma bhakari, Manka khala, etc are the historical base of cooperative.

·         There are seven principles of cooperative.

·         The money or the monetary resource is called finance.

·         A set of institutions which works for financial transaction is called finance system.

·         There are three types of bank account, they are current account, saving account and fixed account.

·         Automated Teller Machine facilities, Credit Card, SMS Banking Service are the modern banking facilities.

·         Saving in formal financial institution, saving in informal financial institution, saving in formal financial institution and khutruke saving are the various types of savings.

·         Bank Loan, Clean Note, Remittance, Foreign Exchange, Security Bonds are the financial instruments.

·         The type of share of a company provided to a shareholder with the voting right is called ordinary share.

·         A kind of compensation paid to an individual for damaging caused by various causes to an individual and property is said insurance.

·         Nepal Mal Chalani tatha Bitta Company is the first insurance company of Nepal established in 2004 B.S.

·         Rastriya Beema Sansthaan was established in 2025 B.S.

·         Life Insurance and Non-Life Insurance are the types of insurance. 

·         The tax levied upon the income of an individual or an organization in the income of them is said income tax.

·         Value Added Tax, Custom Tax, Excise Tax and Income Tax are the types of tax in  Nepal.

·         The tax which is directly paid by and individual or an organization to the government from the income is called direct tax.

·         The tax that is levied on goods and services rather than the income is said indirect tax.

·         The income made by the government from the sources other than the taxes  such as gift, donations, penalties, fees, fines, etc. is called non-revenue tax.

·         One who consumes the goods or services is called consumer.

·         The right of protection of consumer’s health while consuming the goods and services is said consumer right.

·         Every year,15^th March is observed as Consumers’ Day in the world.

·         UN-General Assembly has enforced the rights of consumers on 16^th April,1985.

·         The Consumer’s Act – 2054 is in the operation from 2055,1^st Baisakh.

·         The education of every individual as a consumer about the rights, duties and knowing about the goods and services available in the market is consumer’s right.

·         The consumers’ education aware every individual who wants to consume the goods and services available in the market.

Some Important Terms

# Plan is a scheduled idea or the strategy which is prepared to achieve the desired aims and goal with the help of available resources.

# Economic Plan is a systematic plan prepared by the government of a particular country for economic,social and infrastructural development utilizing the available resources in the country.
# The concept of periodic plan was first introduced by USSR in 1928 A.D. to rebuild the destroyed USSR in the World War 1st.
#The concept of periodic plan in Nepal was brought in 2023 B.S. with the establishment of National Planning Commission in the same year.

# Development Plan
Development plan is a detail document with the proper guidelines to execute any development plan.

# Economic holiday is the state of the absence of economic plan in the country due to unfavorable circumstances and natural disasters.

# The features of economic plan

a. The economic plans designed for certain period of time.
b. They consist of definite goals to be achieved by scheduled tenure.
c. They generally aim at promoting sustainable development, public welfare and environmental conservation.
d. They are implemented on the basis of principle of priority.

# Most of plans in Nepal don't get success because;

a. There is lack of skilled human resources to formulate the effective plans and policies as per the need of the country.
b. There is lack of proper researches on the available resources of Nepal.
c. There is lack of adequate amount of capital to mobilize development activities and a big problem of corruption.
d. The political instability or the frequent change of the government is the next problem.
e. The plans and policies were prepared in the hypothesis.

# The measures to overcome the problems.

a. First of all there should be stable political environment for proper and effective programs and policies and their implementation.
b. The government of Nepal should create proper environment and assure the  domestic and foreign investors of their investment.
c. The expertise or the able human resources should be recruited to for proper planing.
d. The plans and policies should be based  on the economic potentiality of the nation.
e. The programs and policies should be prepared after the study or researches. They shouldn't be based on hypothesis.
f. There need to be political commitment towards development and political stability in the country.

# The area to be added in the plan can be;

a. The modern and scientific education system as per the need of federal democratic Nepal.
b. An effective and applicable plans and policies to utilize locally available resources.
c. The appropriate programs to uplift the economic status of the people.
d. The suitable and applicable plans for modern and commercializing agricultural activities.
e. The provision of easy access of soft loan to the farmers in the supervision of local government.
f. Easy availability of pesticides, insecticides and chemical fertilizer  along with proper training to the farmers.
g. United farming policies should be given  high focus.

# The Importance of Economic Plan

The government makes the economic plan every year as the fiscal year plan and it even drafts the periodic plan in the form of five years plan. The importance of economic plan are;

a. It is planned to gain the sustainable economic economic growth in the country.

b. It prepared to minimize the problems of unemployment and poverty from the nation.

c. The economic plan drafted by the state helps to decrease the gap in between the rich and poor.

d. The economic plan helps to carry out the inclusive development in the all parts of the nation.

e. It helps to distribute the budget for development for the development on the basis of need of the people and geography.

f. These kinds of plan always support in the act of maintaining the balance in between the resources and the development works.   

The Features of Fifteenth Plan(2076/077 to 2080/81) 

The Long Term Goals;

* To upgrade Nepal from the list of least developed country to developing country by 2079 BS,

* To gain the goals made by the Sustainable Development Goals by the UNO,

* To materialize the aim of Prosperous Nepal, Happy Nepali by 2100 BS.

The National Goals;

* It is to prepare the base for uplifting the nation of high income being based on Socialism oriented welfare nation with prosperous economy, social justice, standard life style.

The Notional Objectives

* To prepare the base for the prosperous Nepal,

* To make the citizens able to gain the standard and dignified lifestyle, 

* To protect the self-respect, sovereignty and national unity.

The National Strategies;

* To gain rapid, stable and employment oriented economy,

* To ensure the qualitative health services and scientific and practical education,

* To develop the internal and international connectivity and sustainable urban life style,

* To increase the productivity of agricultural and industrial products, 

* To have the poverty less society with economic and social equality, 

* To conserve, mobilize and promote the natural resources in wise manner,

* To national integrity, provincial balance and develop the public services.

Lesson: 3

Water Resource as ...

* Nepal is one of the landlocked country in the world.

* Though Nepal is landlocked country, she is very potential land for hydro electricity with the capacity of 2.26% in the world.

* The total National Electricity has reached to 1142 MW by the fiscal year 2075/76.

* The survey says as there are a number of perennial rivers, Nepal is potential for the production of 83,000 MW.

It is said that it is feasible to produce about 43,500 MW.

# The Present situation;

* At present, Nepal is producing 1,142 MW.

* The Upper Tamakoshi Hydro Project is going to be completed with 456 MW very soon.

* It is the pure Nepali project with the Nepalese investment.

* The Nepal Government is planning to add 1007.8 MW by FY 2076/77 to national grid.

* The government of Nepal has declared 2075 BS to 2085 BS as the Energy and Water Resource Decade with the aim of materializing the campaign of Prosperous Nepal, Happy Nepali.

# The advantages of Hydro power in Nepal:

* The dependency on petroleum products and other energy will be reduced,

* The industrial development will be easily carried out,

* It helps to minimize the problem of deforestation,

* It helps to earn foreign currency exporting the hydro electricity in the neighbouring countries,

* It even helps to save the environment.

# The Plan on hydro electricity on 15th Plan:

The government of Nepal has planned to achieve goals of hydroelectricity development by FY 2021/22:

* Total production: 5000 MW 

* Starting of additional production: 4998 MW

* Development of new transmission line: above 400 K V per year,

* Controlling of leakage below: 19%

* Distribution of electricity to all the people through national transmission line:99%

# The challenges/problems in the production of Hydroelectricity in Nepal;

* As Nepal is financially weak nation, there is lack of capital to invest in the hydro power generation,

* Nepal has got very difficult land forms, so there is lack of hydroelectricity friendly infrastructural development,

* As there is lack of political stability, there is lack of political commitment and visionary leadership, 

* It is difficult to manage the land for hydro power station and the obstruction from the local people too.

# The general ways to minimize the energy crisis in Nepal:

* There should be political stability with a long term policies and they should come into the operation,

* The general public should be encouraged to invest in the hydro electricity,

* The government should allocate a large amount of budget in hydro electricity with  wise plans, 

* There should be access of basic infrastructures like transport and communication in hydro electricity sites,

* There need to be political commitment not interfere the construction of hydro station even the government gets changed, 

* The hydro electricity station and the government have to address the need of the local people around the power station.

There is no access of irrigation facilities in all parts of Nepal because:

* Nepal is mountainous country. The topography of Nepal is very difficult,

* It is very costly to conduct such projects in mountainous country like Nepal.

* The lands to be irrigated are at tops whereas the rivers are flowing at the bottom of the hills.

    Lesson:2           
                 
Tourism Industry and its Importance

1.  The tourists

The people who travel from place another place with various purposes are tourists. The people who travel to the different places within the same country are domestic tourists and in the same way who travel to the different countries are international tourists.

2. Why do people travel?

People travel from one place to another with the following reasons.
a.For business purpose
b.To spend the holidays.
c. For pilgrimage.
d. For research works
e. To escape from the sever climate. etc.

3.  The slogan of Visit Nepal 2020

It is  Life time experience.

4.  The importance of tourism

The importance tourism are as follow;
a. Tourism is the main source of foreign currencies.
b. Nepal gets advertised into the world.
c. It helps in the promotion of internal trade and commerce.
d. The cottage and small scale industries get developed.
e. The ancient art and heritages are preserved and promoted.
f. Transport, communication and other means of development get developed in rapid pace. etc.

5.  The prospects (possibilities) of tourism in Nepal

Nepal has been enlisted in the highest rank under the adventurous tourism in the world for several times. It means that Nepal is very potential for tourism in the world. As Nepal is blessed by the nature, it can make a good economic progress through tourism in all sectors.

The possibilities of tourism in Nepal are;
a. The tallest mountain of the world and other top taller mountains.
b. The Great Himalayan Trail.
c. The world famous religious and historical sites.
d. World famous adventurous tourism centers.
e. Captivating natural sites
f. Geographical and cultural diversity.
g. Peculiar games and sports.

h. Fast flowing rivers like Bhote Koshi, Trishuli, Kali Gandaki etc.

i. Diversified cultures and traditions of more than 125 castes.

6. The problems found in the field of tourism sectors of Nepal

There are various problems seen in the development of tourism industries in Nepal. The problems can be enlisted as follow.
a. The facilities of  road and air transport  have not reached in all the tourist destinations.
b. The facilities of internet, bank and security are still out reach of tourists in the remote tourist destinations.
c. The tourist oriented accommodations are not available in each tourist centers.
d. There is lack of enough number of air-buses which could go to the different part of the world  to get the tourists in Nepal.
e.  Nepal does not have the well facilitated big air ports to land the bigger wide bodies.
f. The tourist destinations of Nepal have not been advertised through different medias in the world.

7. The Mitigate Measures of the Problems found in the Tourism Sectors of Nepal

If the following suggestions are followed, the problems seen in the tourism sectors of Nepal can be minimized.

a. First of all, the number of the domestic and international air buses should be increased in large number.

b. The international air ports have to be built in each province with all sorts of facilities.

c. There should be good facilities of transportation and communication facilities in each and every tourist center.

d. There should be good facilities of the things the tourists needed such as the bank, security, restaurant, hotels and many more.

e. The Tourism Police Beat has to be established in each and every tourist center.

f. The tourist centers of Nepal have to be introduced throughout the world from the national and international medias.

g. The cultural and natural heritages of Nepal have to be maintained. 

h. The domestic and international entrepreneurs should be encouraged to invest in the tourism sectors of Nepal. 

i. There should be simple and easy way of getting Tourism-Visa of Nepal.

j. The various tourism fairs should be organized to attract the tourists from the different parts of the world

The Tourism Plan of thegovernment

With the motive of developing the tourism sector of Nepal, the Government of Nepal has made the provision of following plan to develop the tourim sector of Nepal.

Vision:

To develop Nepal as an attractive,safe and pleasant tourist destination.

Goal:

To establish Nepal at the top position in the tourism market of the world.

Objectives:

a. To develop Nepal as an attractive tourism center by safe, qualitative and  tourism friendly tourim destinations,

b. To increase the contribution of tourism sectors in the national economy by diversifying the tourism destinations and the outcimes of them  and

c. To extend the benifits achieved from the tourism sectors to the public level in rightful manner.

Strategies:

a. To carry out massive publicity and promotion of toursm of Nepal in the neighbouring countries and major tourism market,

b. To develop integratedtourism covering the various sectors like sports, health, education where there is prospects of tourim,

c. To focus on the development, marketization and promotion of modern tourim infrastructures according to the concept of public - private - cooperative collaboration by encourising domestoc and foreign investment,

d. To develop tourism sector as the driving force of economy. For it, the local level will collaberate with private sector in the identification, development and diversification of tourist destinations and

e. To distribute the out comes of the tourism upto Local levels.

   

Foreign Employment

The pre-plan before making the foreign employment:

a. The one who goes in the foreign employment should learn the language, need to know the laws of the land he wants go and the environment.

b. He needs to be mentally prepared for it 

c. He should learn the skillful training from the recognized institution as per the job he is seeking.

d. He has to get the passport as it is mandatory from district administration office of own district.

e. He has to contact the the Department of Foreign Employment of the Ministry of Labour and Employment.

f. He should directly visit the Manpower Company rather than trusting the its local agent.

g. He has to learn about the nature of the job he is going for and collect the required skills.

h. He needs to get medical report from the government authorized health center.

i He has to take the orientation training before he make a move for foreign employment.

The Positive Effects of Foreign Employment

* Nepal obtains remittance from the foreign employment,

* The unemployment problems of the state is temporarily solved,

* The people learn new skills and they can bring it in Nepal and implement here to upgrade the knowledge and the skills,

* The foreign employment has helped to eliminate the poverty from the nation,

* It has helped to increase the international relation,

* The people who have returned from the foreign employment have created the new jobs, etc.

Negative / Drawbacks of foreign employment;

* It has increased the Brain Drain, which is creating the lack of skilled human resources,

* As unskilled human resources are going abroad in the employment, they are forced to work in the throw price,

* They are forced to work in the risky jobs in the dangerous situation, 

* The Nepalese workers are doing the risky jobs without medical insurance.

* The resources of the country have not been utilized,

* The national economy of the state has become dependent,

* The feelings of patriotism and nationality has been decreasing day by day, etc.

 The Important Information for Foreign Employment issued by the Government of Nepal

* Age and description 

* Institutional Reccommendation

* Keeping Record of Important Documents/Papers

* Training and Security

* Pre Preparation 

* Contact and Coordination in the Foreignland 

* Labour Contract from the Ministry of Foreign Affairs

* Life Medical, and Accident Insurance

* Salary and Contract letter

* Medical Report, etc.

                    Lesson: 5 

Cooperatives and its economic importance

1. What cooperative is.

 An autonomous financial institution of people united voluntarily to meet the common economic, social and cultural needs and the aspirations thoroughly owned and democratically controlled is considered as cooperative. It is formed there in equal capital and shares based on one member one vote.

2. The pioneer figure in the field of cooperative

 Robert Owen, a social reformer is known as the pioneer figure in the field of cooperative.

3. According to International Co-operative Alliance, cooperative is "Cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise"

4. The Cooperatives in Nepal

a. In the ancient time, the cooperative was practiced in the form of Guthi, Bhakari, Manka Khala, Kala6yan, Dewali, Bheja and so on.

b. The Department of Cooperative was established in2010 BS.

c. The Bakhan Coopertive of Bakhanpur, Chitwan established in 2013 BS. is the pioneer (first) cooperative of Nepal.

d. The Cooperative Act was enforced in 2016 BS to for the development of cooperative in Nepal.

e. The Cooperative Regulation was introduced in 2018 BS.

f. The Cooperative Bank was established in 2020 BS.

g. The new Cooperative Act was drafted and enforced in 2048 BS and the rush of establishing the cooperative started throughout the country.

5. The Values of Cooperatives

 The cooperatives are established being based on the following values;

a. Self-help

b. Self- Responsibility

c. Democracy

d. Equality

e. Equity and 

f. Solidarity

The members of the cooperative believe in the ethical values, social responsibility and caring for others.

6. The Principles of Cooperatives

The principles of Cooperatives are the road map of the cooperatives on which they move ahead. The principles of cooperatives are;

a. Voluntary and Opened Membership

b. Democratic Member Control

c. Member Economic Participation

d. Autonomy and Independence

e. Education, Training  and  Information

f. Cooperation among the Cooperatives

g. Concern for Community

7. The types of cooperatives

There are various types cooperatives found in Nepal. The various types of cooperatives are;

a. Saving and Credit Cooperative,

b. Multipurpose Cooperative,

c. Agriculture Cooperative,

d. Fruits and Vegetables Cooperative,

d. Dairy Cooperative,

e. Energy Cooperative and so on.

  

8. The legal provision of opening a cooperative

According to Cooperative Act-2048, the following legal procedures are to fulfilled to form a cooperative in Nepal. 

a. At least, there should be twenty five members to start a cooperative.

b. The application should be tabled at the office of Registrar to register the cooperative,

c. Along with the application, the two copies of By-Law and Work-Plan should be submitted,

d. There need to be the description of shares of the members, and

e. The photo-copy of the certificate of citizenship, recent photographs, sample signatures of the members who are going to open a cooperative. 

9. The Importance of Cooperatives

The cooperatives can play a good role in the economic development of the members of a society. The importance of cooperatives are given below;

a. The cooperatives are such financial institutions which collect the scattered capital and creates the environment of investment,

b. They teach the members of the cooperative to economic and save for the future for a good future,

c. They have developed the environment of saving and investing in the productive sectors,

d. Because of the cooperative movement, the poverty of the nation has decreased,

e. The facilities provided by the various cooperatives, the life styles of the people are getting better,

f. They have helped to develop the access of the people in each and every sectors and the women and marginalized groups have been empowered.  

g. They help to form the cottage industries in the local level utilizing the locally available raw-materials,

h. They have developed the environment of collaboration and cooperation among the people who want to create employment opportunity in the villages and more.

i. They are seeking the various new areas of investment and supporting in alleviating the poverty from the society. 

10. The Problems found in the Cooperative sectors of Nepal

The cooperative sector of Nepal is not out of the problems. It is suffering of various problems. The problems found in the cooperative sector are; 

a. It is found that the executive members of the cooperatives are appointed/elected from the same family members or the relatives. It is suffering of kith and kin.

b. The collected fund is found to be abused.

c. Loan is generally provided to the relatives and the friends of the executive body. It also has been found that the loan is provided without collateral, physical properties of mortgage. 

d. The principles of cooperative are ignored and they run the cooperatives in the wills and aspiration of themselves..

e. The operators of the many cooperatives have fled away with the collected money of the general people.

f. A person has got the membership in many cooperatives.  

11. The mitigate measures to minimize the problems seen in the cooperative sector;

a. First of all, the principles and the values of the cooperative should be followed wisely.

b. The Cooperative Act-2048 should come into the operation in the effective way.

c. The investment out of the cooperatives should get discouraged.

d. It is only for its members thus the investment should be made among the members only.

e. The election for the formation of the Executive Body should be democratic.

f. The distribution of the share out of the scope should be discouraged.

g. There should be effective provision of monitoring of the cooperatives.  

12. The changes brought by cooperatives in the Nepalese society;

In general, a cooperative is a financial organization of individuals  of a society with the similar socio -economic and cultural backgrounds with the concept of volunteering for each others economic status. It has been playing a great roles in the act of alleviating the poverty from the nation and it is the great achievement of the cooperatives of Nepal. The some major changes brought by the cooperatives in the Nepalese society are as follow;

a. The scattered capital in the society is being collected and the collected capital is invested for the individual and organizational benefits.

b. It has created the environment for the society to join the cooperative for individual and the society based economic progress.

c. The cooperatives are encouraging the members to be self-employed and create the employment opportunity in the society.

d. The environment for wise utilizing of the locally available resources has been created with the establishment of cottage industries in the local levels.

e. Various types of cooperatives like agriculture, cottage industry have produced the goods and reduced the import of the goods in the society.

f. It has been helping the government  to minimize the poverty and reduce the percentage of unemployed number of people from the from the country.

g. The cooperative has been considered as the Third Pillar of the economic background of the nation.

h. The Ministry of Cooperative and Poverty Alleviation has been formed to promote the cooperative and reduce the poverty from the country. 

13. The Roles of the State in the Promotion of Cooperatives 

The cooperatives are the organizations of the people of low economic status, where the people collect the fund and utilize by the one who wants to introduce the economic activity of own. Such organization is called the cooperative. They are financial organization which are always moving ahead with the aim of better economic status in the society. These organizations need to be promoted by the state too. The roles of state to promote these financial organizations are;

a. First of all, the government has to formulate the strong and strict laws and the policies and they need to come into the operation against the one who breaches the laws.

b. Like the security of the depositors of the A, B and C graded financial institutions, there should be the provision of security of the funds of the members in the cooperatives by the state.

c. The provision of monitoring in the cooperatives should go on time and again to know whether the seven principles of cooperative have been adopted or not.

d. One of the principles of cooperative i.e. education about the cooperative should be given to the people by the cooperatives in the presence of the state authority to aware the people.

e. If any one is found breaching the values of the cooperative should come under the laws of the state.

 f. A separate authority should be there for controlling and monitoring these organizations under the central bank.

14. The ways to develop the right opinion towards the cooperative 

As cooperatives are the financial institutions of the society in the grass level. They are helping in the promotion of financial status of the people in the society. They are awaking the people about the ways of financial progress of each and every member of the society. They have become the backbone of the society for economic progress.

a. The cooperatives running in the society should make the investment among the members of the cooperatives only.

b. The promoters and officials of the cooperatives who are proved to be involved the forgery should be punished and they need to be taken back at any cost.

c. The act of continuous monitoring of the cooperatives should go regularly. 

d. The awareness programs from the cooperatives and the state authority should go time and again to aware the people or the members of the cooperatives.

e. The Annual General Meeting should go on every year with all the programs and the policies of the cooperatives.

f. The state has to establish the cooperative training center in every district to train the members of the cooperatives.

 

Lesson :6

 Financial Education

1.  Finance 

The activities concerned with the economic transaction is called finance. It is the money or other monetary resources like management of money, banking activities and acts of investment.

2.  Finance Literacy

The skill and knowledge which helps an individual to conduct financial activities and understand the importance of money or the finance. It assists in learning of the management of money and the investment. These types of activities are considered as finance literacy.

3. The importance of finance literacy

Finance literacy is very important. It teaches every individual the way of increasing the financial status. The given points highlight the importance of finance. 

a. The financial literacy aware every individual about the importance of it.

b. It aware people on utilization of money for social and economic security.

c. It encourages the individuals to save from the earning for future.

d. This education gives the skills for the proper utilization of remittance and gifts.

e. It teaches every individual to maintain the balance between the earning and the expenditure.

4.  The financial system in Nepal.

Nepal Rastra Bank works as the Central Bank of Nepal. It leads, guides and monsters the financial system of the nation. Under the guidance of this bank, there are Commercial Banks, Development Banks, Finance Company and Micro-Finance. The cooperatives are also come under it. Nepal Rastra Bank has categorized the financial companies in the following categories.

a. Commercial Bank ( A- graded bank)

They need to have paid up capital 8 billions as the capital.

The number of these companies- 28

b. Development Bank ( B- graded bank)

They need to have paid up capital 500 millions to 2.5 billions. 

The number of these companies- 33

c. Finance Companies ( C- graded bank)

They need to have paid up capital 400 to 800 millions. 

The number of these companies - 25

d. Micro Finance Development Bank ( D - graded bank)

They need to have paid up capital 100 millions

The number of these companies- 65

5.  Bank account and  the requirements to open a  account in the banks of Nepal

The details of an individuals or organizations registered in the banks for financial transactions following the terms and conditions made the banks being under the rules and regulation of the central bank is called bank account. It helps to make the financial activities of an individual and organization easier and comfortable. To open an account in the bank, the clients should go through the following steps. They are;

a. The xerox copy of certificate of citizenship or passport.

b. The recent passport sized photos.

c. K.Y.C. details with other supportive need to be completed.

d. The sample signature of the account holder.

e. Minimum balance as per the rules of the bank.

f. The xerox copy of the certificate of citizenship of parents or guardians in case of minors. etc.

6.  The different types accounts provided in Nepal

The types of bank accounts in Nepal are;

a. Current Account

b. Saving Account  and 

c. Fixed Account

a. Current Account

 Current account is a kind of account introduced in he banking system in which the customers can deposit and withdraw any amount of money any time in the banking hours. The customers aren't provided any interest in this account. It simply ensures the security of money and helps to maintain transparency in the transaction.

The benefits of current account are; 

* This type of account is very useful for business purpose.

* A number of the act of transactions can be conducted even in a day.

* It gives the security of the fund.

b. Saving Account

Saving Account is a kind of account in the financial institutions where the customers deposit the money with the purpose of saving in which the financial institutions provide certain percent of interest.The customers can deposit according to their wish but they can withdraw being based on the rules and regulations of the financial institutions. This types of account is suitable for small savers.

The advantages of saving account are;

* The befits of this type of account the money can be deposited as many times required.

* The money can be saved in any amount the customer desires.

* It is very useful for the people who work in different organizations.

c. Fixed Account

Fixed Account is such type of account introduced by financial institutions in which the customers deposit their money for a specified term. It is the account in which the customers get highest rate of interest according capacity of financial institutions. The money deposited in this account can not be withdrawn until the date of maturity gets completed.

Advantages of Fixed account are;

* This is the account which provides the highest rate of interest.

7.  E-Banking

A kind of banking system in which the financial institutions use electronic devices to conduct banking activities via internet, such banking activities is termed as E-Banking. E-Banking has made the banking services easier, faster and safer. In this system, the account holders can conduct all the banking activities without  visiting the financial institutions.

8.ATM Card

An Automated Teller Machine (ATM) card is a payment card issued by a financial companies which enables  a customer to access to perform financial transactions. It helps to withdraw and deposit the cash and obtain the transaction information. It is also called debit card because we can withdraw the sum only up-to we have deposited in the banks.

9.Credit Card

Credit card is a kind of card issued by a bank to its customers with an option to borrow the funds for personal use. It is also said that the credit card can be used for balance transfer and  withdrawing funds from the ATM too. Here the financial institutions provide this service and make service charge and interest. The card holders have to gain the faith of the financial organizations.

10. The difference between Debit Card and Credit Card

                               Debit Card (ATM Card)

a. A special type of card issued by the financial institution to its members providing the authority to withdraw money (cash) from its authorized ATM booth is termed as Debit or ATM Card.

b. The account holder of a particular bank or financial institution can check and withdraw the amount of cash as per the rules and regulation of the financial institution.

c. The ATM Card is provided to all the account holders of the financial institutions as it is demanded by the customers.

d. The customer can withdraw the amount from the available balance deposited in the bank.

                                                  (Credit Card)

a. Credit Card is kind of payment card which one is issued by the bank or any other financial institution to its account holders to purchase goods and services even in credit.

b. Here the credit card holders pay the amount to the sellers through the banking system.

c. As the credit card holders can withdraw the amount or pay to the sellers, although there is zero balance in the account, it is provided to the trustworthy customers only.

d. The amount provided by the bank or the financial institution need to be used on time and the financial institutions make the service charge on it.  

  

11.Mobile Banking.

Mobile Banking system is a modern banking system of post modern era. It is such banking system in which the financial institutions allow the customers to conduct the financial transaction through a mobile phone. It is also termed as SMS Banking system.

12.. Security

A financing or investment instrument instrument used by a  private company or government agency which ownership interest and provides an evidence for debt, a right to share in the earning of users or  a right in the distribution of property is termed as security. The Security Board of Nepal was established on 7th June, 1993.

13. The ways to make the financial education more effective in the context of Nepal

Financial education is one of the requirements for the economical development of a nation. The people of a nation should financially be literate. The financial literacy should reach in the access of every citizen. The following steps are to be followed to make financial education more effective.
a. The government of Nepal should start the financial education from school level education including the subject matter in the school curriculum.
b. The people should be aware about the importance of finance and provide the ways of increasing the financial status.
c. There should be interactive programs among the people about financial activities with the expertise and the policy makers.
d. The government of Nepal should launch the Non-Formal education on financial education in the every nook and corner of the country.
e. The people should be provided the training regarding  the financial activities.
f. The schools and colleges should have the interactive programs with the bankers and the financial experts. and so on.

14. Stock Market,  Foreign Exchange, Stock Exchange, etc.

a. Stock Market

Stock market is a place where the shares of the public listed companies are traded. Here, in the stock market the public listed companies float shares to the general people in an Initial Public Offering ( IPO) to raise the capital for the extension and strong economic status of the public companies.

b. Foreign Exchange

 The act of exchanging the currency of a country with the currency of other countries is termed as Foreign Exchange. Foreign Exchange is a big source of financial management of a nation because it makes international exchange rate of goods and services possible. For all these works a country needs to have globally accepted currency.

c. Stock Exchange

The organized and regulated financial market where the securities ( currency, remittance, bonds.....) bought and sold at the price governed by the forces of demand and supply is said stock exchange.
Stock Exchange basically serve as:
i. Primary market
 Primary market is the place where corporations, governments, municipalities and other incorporated bodies can raise the capital by channeling savings of the investors into productive ventures.

ii. The Secondary Market

The Secondary Market the place where the investors can sell their securities to the other investors for cash. Thus it helps to reduce the risk of the investors' investments helping in maintaining the liquidity in the system.

d. Remittance and proper utilization of it

Remittance is a transfer of money often by a foreign worker to an individual in their home country. These days remittance has become one of the major source economic development of a nation. About 30% of our GNP is covered by remittance.
The suggestions for proper utilization of remittance in the country are;

a. The remittance send by the workers in the foreign land should be utilized in the productive sectors.
b. The big investors should also be assured about the security of the investment they make.
c. There should be easy procedure to get the permission and license to invest in the productive sectors by the government.
d. The investors should identify the new areas and they should be encouraged to invest in them.
e. The new and small investors should be provided the training and orientation.
f.  The big investors can also be encouraged to invest in the education, health and transport sectors. etc.

 15.  The difference between Bank Loan and Security Bond 

The differences between Bank Loan and Security Bond are:

 Bank Loan

a. A sum of money borrowing from the bank or any financial institution with the conditions that can be returned or repaid at a later date with interest is bank loan.
b. The loan taken from the bank or any financial institutions has to be returned on scheduled date or tenure with interest.
c. If the loan taken from the financial institutions is not returned on scheduled time, the borrower has to pay fine along with interest.
d. The loan is provided on different topics. They can be as follow ; purchasing loan, investment loan, working loan, consumption loan, education loan etc.

Security Bond.

a. Security Bond is one of the financial instruments to be used by the government or any company to raise required capital (amount of money).
b. It is a certificate issued by the Security Bond users promising to pay back the borrowed amount of money with the interest of specified rate on scheduled time.
c. A share holders has his/her share over loss of profit of the company in proportion to the number of the shares.
 d. Government bond, debenture bond, shares are the examples of security bond.

 The requirements to apply for share

If an individual desires to buy the shares of a company he/she needs the following documents.
 a.  A photocopy of the certificate of citizenship.
 b.Name of father and grand father, address, contact number, mailing address.
 c. Bank account number.
 d. D. Mat account number.
 e. Authorized signature of the applicant.
 f.  Recently snapped photos.

16. The different categories of finance
The different categories of finance are:
a. Public Finance
b. Corporate ( company) Finance
c.  Personal Finance

Lesson : 7
FINANCIAL INSTRUMENTS
1.  Financial instruments
The assets which are created to operate the financial system of a country and the world is termed as financial instruments. These assets are valued by the financial system of the state to conduct the commercial activities. They are traded, used and accepted through out the country. Currency, bank loan, remittance, foreign exchange security etc. are the examples of financial instruments.  

नेपाली नोटको प्रयोग गर्दा अपनाउनु पर्ने सावधानी सम्बन्धमा नेपाल राष्ट्र बैंक मुद्रा ब्य्वस्थापन बिभागको अनुरोध:

* नोटको जतन गर्नको लागि अनिवार्य रुपमा मनि ब्याग प्रयोग गर्ने बानी बसालौ।

* नोटमा जथाभावी केरमेट नगरौ।

* समान दरका नयाँ  अथवा सुकिला नोटको प्रयोग गर्ने बानी बसालौ।

* नयाँ नोट छपाई गर्न ठुलो मात्रामा सम्पति खर्चिनु पर्ने भएकाले नोटको जतन गरि देशको सम्पत्ति जोगाअौ।

* नोटलाई माटो, धमिरा, आगो र पानीबाट जोगाऔ।

* नोटलाई गाड्ने, धेरै  समयसम्म पोको पारेर राख्ने गर्नाले नोट सड्ने डर हुने हुँदा यस्तो कार्यलाई निरुत्साहित गरौं ।

* नोटको हिफाजत गर्ने कुरा आफुले पनि मनन गरौं  र अरुलाई पनि सिकाऔ।

* नोटको कारोबार गर्दा फोहर गर्ने प्रवृत्तिलाई त्यागौ।

* पुजा आजा गर्दा अथवा कुनै काम गर्दा मैलिएका हातले सकेसम्म नोट नछोऔ।

* टाचाँ र स्टिच लगाउदा नोट च्यातिने र निकाल्न गार्हो हुने तथा नोटको आयु घट्ने हूदाँ यतो कार्यलाई निरुत्साहित गरौ।

* कारोबारको क्रममा सङ्कास्पद नोटहरु पाइएमा नजिकैको नेपाल राष्ट्र बैंकको कार्यालय वा अन्य बैंक तथा बितिय संस्थाका लागि दाखिल गरौं।

* नोटलाई मठ-मदिर वा पुजा पाठ आदि धार्मिक कार्यमा प्रयोग गर्दा नोटमा रङ, अबिर, पानी, दूध, रगत आदि नपारौ, बरु दान पेटिकामा हाल्ने वा संबंधित धार्मिक अनुष्ठानको रशिद काटी चन्दा प्रदान गर्ने चलन चलाऔ।

 lesson:8
INSURANCE
1.  Insurance
A plan or policy made by an individual ( insured) for the financial security to be safe from the loss due to death, accident or any disaster with an financial institution is termed as insurance. There are two types of insurance policy. They are as follow.
a. Life Insurance and
b. Non-Life Insurance.
a.  Life Insurance:
Life Insurance is a kind of contract made by the insured ( one who wants insurance) with the insurance company ( insurer) with the specified sum of money to be returned on specified tenure which protects the insured from the unexpected loss during the life is termed as Life Insurance.
There are three types of life insurance;
i. Term Based Life-Insurance
ii. Endowment Insurance
iii. Whole Life Insurance
b. Non-Life Insurance:
Non-Life insurance is a kind of insurance policy made by an individual with the insurer to be secured from the damage of the property of any nature with an insured is termed as Non-Life insurance. Non-Life insurance is the insurance for the loss or damage of vehicles, buildings, factory,agriculture and so on. In such situation the Non- Life insurance bears the risk of loss or damage of the property as premium is paid based on the contract signed.
Important Terms for Insurance
Insured: The party ( public or organizations) who wants the insurance for the financial security for the future is said insured.
Insurer: The party or organization who wants take the responsibility of the financial protection of the public who wants the financial protection in the future.
Insured Amount:  The insured amount is the total sum for which the risk of compensation is insured by insurer.
Premium : The sum of the money which one is to be paid by insured to the insurer in the specified amount is termed as premium
Insurance Policy: The written agreement made between the insured and insurer to be followed during the tenure of the insurance is called insurance policy.

Importance of Non-Life Insurance in the context of Nepal.

* Nepal is agricultural country, if the corps get damaged because of disastres, the farmers get 90% compensation to be recovered,

* The farmers even get the compensations against the death of their livestock from the security deposit they have made,

* The farmers get compensations if the corps are damaged by the insects,

* They also get compensation if the corps get destroyed by draught or stroms or hailstones.

*They can be secured from any type of damages with the compensations made by insurance companies.
2. The first insurance company of Nepal
The first insurance company of Nepal was called Nepal Mal Chalani taha Bita Company. It was established on 8th Ashwin, 2004. 

3.  The government insurance company providing service at present

It is called National Insurance Corporation. It was established in 2024 BS.

4.  The condition of insurance company in Nepal at present

At present, there are 34 insurance companies. Among them 16 companies are providing the service of Non-Life insurance whereas 16 are providing the service of Life-Insurance and one is giving the service of Re insurance. The National Insurance Corporation is providing the both services of Lie-Insurance and Non-Life Insurance.

  The advantages of insurance policy

 As insurance is becoming a part of life to handle the risk, it has got great importance. The importance of insurance are as follow;

 * Insurance helps to minimize risk that may come in the life.

 * As it is a kind of saving, it helps to have a secured future.

 * It minimizes the taxes in our income.

 * It provides the dividend and bonus to the       insured.

 * One can take loan from it and run the business of our own.

 * It makes our future safe and secured.

6.  The things to be considered while buying  insurance policy

 

 * The objectives of the insurance done should be clear.

 * The authenticity of the  insurance company 

 * The insurance policy and  premium

 * Receiving of the receipt after each payment of the premium.

 * Deliberation of information of information to the family members.

 * The due date of payment and timely payment

 * Safety of agreement paper.

  

               9. Tax and Revenue
1.  Tax

Tax is a financial charge made by the government upon its people from their earning in certain percent on the basis of earning they make.
2.  Tax revenue

The government makes the income from the different sources of taxation,excise duties,custom or any other sources which is appropriate to the payment of public expenses is tax revenue.
3. Define custom duty.
The tax levied on import and export of goods and services by the custom authority of a nation to raise the revenue is custom duty.

4.Excise duty.

The tax charged on the production of goods and services produced within the country is called excise duty.

5.  Value Added Tax (VAT).

The tax levied on the domestic consumption of goods and services. It is the tax to be paid by the consumers who buy them from retailers not by the producers and the distributors.

6. Income tax

Income tax is a kind of tax which is levied on the income of an individual or any corporate organization by the government. It is ancient type of tax system. It is said that this tax system was introduced in Britian in 12th century. It is tax which can be levied by local body of a nation.

7.  Non-tax revenue

Non-tax revenue is the income of the government from the other sources of taxation than the sources of tax. They include gifts, donation,fees, fine,penalties, properties with no heirs, public properties etc.

8. Introduce direct tax.

a. Direct tax is a type of tax which is levied upon the income of an individual or any organization. The amount of the tax depends upon the earning.
b. It is transferable tax and flexible in nature as it follows the principle of high earning high tax.
c. Direct tax helps to control economic inflation in the country.
d. This type tax is paid by only the one who makes earning.

  Unit: 8.5

9. Indirect tax

a. The tax impose on the use of goods and services consumed by the consumers.
b. Indirect tax is transformable tax in nature. It isn't transformable as it works under the principle of VAT.
c. This type doesn't play any role to control the economic inflation in the country and it is un evadable in nature.
d.This type of tax is paid by the chain of tax payer like manufacturer, whole seller, retailer and finally by buyer.

The type of tax based on rate:

* Progressive tax 

* Proportional tax

*Digressive tax

* Subjective tax 

* Price based tax

# The features of income tax:

* The income tax is specified by the government,

* Here the tax payers do not have any advantages,

* The act of paying tax is the moral duty of every citizen,

* Income tax is prime source of income the state,

* The collect revenue help in the development of a state, and so on.

         10. CONSUMER RIGHTS

1.  Consumers right

  First of all the consumers means the people, organization or company who buy and consume the goods and services produced. It means that we all are consumers. Right means the legal authority to enjoy the goods and services for safety.

Now, consumer right means, the right granted to the consumers by the state for their safety while consuming the goods and services. The consumer rights.includes the right to safety, right to make a choice, right to consumer education etc. 

2. The international organization regarding consumer right

 Yes, there is. It is called Consumer International ( CI ). There are 240 member organizations associated with it. It is successful to extend its services in more than120 countries.

3. The consumers rights introduced by UNO

 UNO, the world`s biggest organization has also introduced eight consumer rights in favour of customers. These rights are;

a. Right to satisfaction of basic needs.

b. Right to safety.

c. Right to be informed 

d. Right to make a choice.

e. Right to be heard.

f. Right to redress.

g. Right to consumers education.

h. Right to have a healthy environment.

4. The consumers rights granted by the Consumer Protection Act 2054 

The rights granted to all the citizens of Nepal by Consumer Protection Act 2054 are;

 a. Right to be safe from the harmful goods and services.

b. Right to be informed about the price, manufacturing and expiring date, quality, quantity and so on.

 c. Right to have goods and services of own choice from the competitive market.

d. Right to be assured about the legal action aganst the wrong doers.

e. Right to file the case and get redress.

 f. Right to get consumer education. t

etc.

5. The information to be mentioned in the products

According to Consumer Protection Act-2054, the following information are to be mentioned in the products of Nepal.

a. Name, address and the registration number of the producer.

b. Ingredients, quality and weight of the products.

c. The sign of Nepal Standard,if obtained.

d. The way of using the products and possible impacts.

e. Price, date of production and expiry along with batch number.

f. Warranty period, test mark and other information in electronic goods.

 g. Protection and safety measures in required goods and services.
6. The legal protection of the Consumer Protection Act-2054 
According to Consumer Protection Act-2054, a consumer can file a case if he/she feels that he/she feels that he/she was cheated. He/she can register the case either in the District Police Office, Department of Consumer Right or District Administration Office. The government of Nepal has made the provision of Inspections Officers to inspect the violation of consumer right.
They have got the authority to take action against the one who violates the rights of consumers.
7. The consumer education and  the advantages of consumer education
The education given to the people on the right of consumers in formal or non-formal way is said consumer right. Here, the public, the consumers learn about the right to quality products which are suitable for there life to run. The constitution of Nepal 2072. part:3 article: 44 assures the right of the consumers.
The advantages of consumer right are:
a. First of all, they all get aware about their right for quality goods and services.
b. The consumers can make a choice from large market to fulfill his/her needs.
c. The consumers learn about the products and their producers.
d. The consumers can register or file the case if he/she is harmed by the products. and so on.