Banks can make the Poor to Rich :- Governemnt has to enable this legally

Respected All,

We do not have enough instruments in the Banking segment to make a poor to Rich.

But we can design systems so that Individuals will take care of themselves.

By Legal and Administration we can fix the problem of Economy in India once and for ALL.
The problems of India is mostly legal and less of Economical / Finance in Nature.

Legal and administration has to support Economy/Finance in India.

India does not have social security like the US and invests heavily on the Pensions.

But, if the government comes out with clear instruments people can take care of the pension and Social Security.

GOVERNMENT DOES NOT HAVE TO SPEND FOR PENSION AND SOCIAL SECURITY.

According to the Standards defined and terms prevailing as of now,

People are said to be below poverty line if their income is less than $2 per head in India
And according to US it is $20,650 per year for a family of four persons.

IF in that Below poverty line a person decides to save Rs10 per day ( which is doable ) from his savings,
IF the saving is done for 60 years with 9% interest and compounded quarterly, The amount is 71 lakh or 7.1 millions.
( I have attached the Spread sheet to see the actual working ).

That is why I say that we need to have one account in all government banks which has
1.100% insured money for all deposits and interest earnings
2.No tax at the time of deposit and at the time of withdrawing from one account.
3.There should be no upper limit for investing money in that account ( for people may come in at any time/age).

The current PPF account is somewhat closer to this Ideology and for this account to work for India
1.The upper limit on the deposit on PPF account Must be removed completely.

THIS IS THE ONLY WAY THAT A POOR CAN BE RICH ( AT LEAST HE WILL BE ABLE TO LIVE WITH HIS OWN SAVINGS
WITHOUT GOVERNMENT HELPING IN IN THE FORM OF PENSION AND SOCIAL SECURITY )

IF you ask a person who is able to save Rs 10 a day is rich or poor, ( HE IS IN FACT RICH )
ALL INDIANS AND ALL THE WORLD IS RICH, WE ARE BEING LOOTED BY OUR GOVERNMENT AND IN FACT THE RICH.

We need to fix this for once and for all.

Our current system of defining the Below Poverty line is wrong from the above discussion.
We just needs to have government instruments to save money and to take care of ourselves in the future/old age.

With the current system of stock market and dumping all our savings and pension and pf etc into this stock
market, poor is becoming poor, A few Rich is becoming Rich and most Rich is also becoming poor due to inflation.

This has to be avoided for the future of India and we have to set the Indian Financial Institutions correct.

I do not know why government is always looking for taxation from the people of the country.
When you open up these systems, The money from the people is going to flow into the government as Principal
( Why do you need to collect tax ) You can invest the money into right products / projects and let the people of
India share the wealth with the growth of the country.

stock Market cannot grow indefinitely. With most of the products has been stabilized in the market,
The prices will continue to fall with all the man made products. This means, most of the companies will not
earn profit and constant merging of companies to cut cost will happen.

As the price keeps dropping many big and small companies which cannot compete will lose business and ultimately
need to close. Then we need to protect the National companies to protect against global competition.

IF finance of every Indian is fixed at least about 50% of problems of India is fixed.
We need to have a system where every poor is able to become rich ( just by saving Rs 10 ( ten rupee a day ).

This is possible only when government allows people to open a account completely without tax.
( with assured returns and Insurance for both deposit and interest )
Government will be getting enough deposits from this account.
Even if government has to mint money to pay for Interest, still it is fine.
The money is still with the government.

Government has to give options for the people to secure their lives.
First we need to migrate from WPI to Consumer Price index to measure Inflation
Then we need to control Inflation by addressing the core of the cost.

Then only we can see real growth in India.

Today the farmer is not benefited by the rise in price.
We need to declare the price of commodities on a weekly basis and that should be the only price
for commodities sold in India.
Today, all the middle men is getting the money. They are only rising the price of the commodity.
They are not contributing to the growth of the Nation or GDP.

India Government and Corporate India is not focussing on the actual problems of India.
The following projects has to be driven as national projects and I am not seeing any involvement of government
or corporate involvement in the same. They are
1.Solar power rural and urban
2.Solar plug in electric vehicle for urban and rural transport
3.Solar Water heater ( saves more than 60 to 70% of electricity produced in India)
to be made mandatory to all Indian houses.
4.Moving to LED and CFL based lighting since LED only consumes 10% as that of incandescent bulbs.
5.Creating electric hot plates and Induction stoves and cook ware ( since LPG will be extinct in next 10 years)
6.completely getting rid of Air conditioners in future to save power.

All these needs many companies and more investment.
once the Oil is exhausted,
about 98% of transport will be in peril. They cannot move.
By then we need to migrate to Electric.
( As it is we cannot even cook and eat, once the LPG is gone)

We have more projects of these kind which needs funding.
Government has to fund these projects ( which has to be obviously done by different companies )

So, Create one account for every Indian ( or convert PPF without any upper limit ) to save India.

For US, if a person Below poverty line can save $10 a day in 60years he will have US$7.1 million.
Is he poor or rich?
Who made him poor?
Why Not the government make every one rich by investing in such money for every citizen?
At least the government should create a account so that each citizen can use that account and be benefited by it.