How to do Career Planning?

Career Planning after High school Education:

The vertical and horizontal growth of opportunities for a lucrative career has added a new facet of commercial considerations for choosing a particular path of education. Plethora of knowledge resources within  the fist, awareness of educational avenues, aspirations of the students and the expectations of the parents have built of a huge pressure on the tender mind of the children now a days. 

Importance of education is well accepted in regards to broadening the perspective to life, securing a better job in homeland or overseas countries, increasing the resourcefulness but the rankers are not necessarily so bright or lucky when it comes to “becoming rich”. Nonetheless, importance of good education cannot be underestimated as much as it provides a guarantee to better career prospects. Few years back, parents were not active in career planning of their children. 

This was a blessing in disguise for the children as they could decide, without any pressure from the parents, what career they want to pursue as per their ability and aptitude. They were less prone to stress and more willingly pursued their goal as the decision was their own – children cannot shift the blame to their parents if they fail to achieve the goal. Now the scenario is changed. Parents have ceased to be a mere advisor or supporter. They have become active and some time aggressive to thrust upon the children an education course to see the children in a position which they have been dreaming of all the years the child travelled from the cradle to a college. Parents have a legitimate right to dream about the career of their wards as they are deploying their hard earned money and still willing to sacrifice necessities of life for costly education. However, it would be better if the parents appreciate that “You can lead a horse to the water but you cannot make it drink”. 

Choosing a right career has become an important subject in itself and extracurricular activities for the students and has made the parents to keep abreast of educational options and job market. Suggesting specific courses for a particular stream, its eligibility criterion, education providers, fee structure, course duration, etc will be out of scope of the present blog for want of canvas. The blog focuses on general principles to be guided by while planning the career path by the students and parents. 

(I) Tips to students for choosing a career plan: 

  1.     Consider your inherent strength and aptitude in particular subjects and build on these strengths and aptitude. Lend thy ears to all, rake up the omniscient Google, attend the workshops and fair on career planning but nobody knows you better than you yourself. Be an informed and independent decision maker.

 

  2.     Do not get carried away by “Me Too” phenomenon. Each student has different strengths and financial support from the family. 

  3.     If you choose a career, though less lucrative,  which revolves around your strength and aptitude, you will achieve more at the end of your career if other achievements are also factored into, apart from pecuniary gains.

  4.     You would be a passionate professional if you practice a profession which is very close to your heart. 

  5.     Each stream (Science, Commerce and Arts) can open the avenues for a remunerative career, the only caveat is that you must have consistent bright performance in whatever course you are pursuing. 

  6.     Discussing the data on GDP may sound out of context to some of the readers but it is very germane to the issue of career planning when the outcome of your today’s decision is to be tested on the anvil of job market after 5 to 10 years. Ours is a huge country which needs not only good doctors, programmers and engineers bit also needs good teachers, bureaucrats,  accountants, designers, retailers, etc. Our economy has already moved from Primary Sector (Agriculture, Forestry, Fishery, Mining, etc) to Secondary Sector (industries) and now entered in to thriving Service Sector with 53.80% contribution in GDP (2016-17) with a growth rate of 8.90% (2016-17) – the highest among the three sectors of economy. The booming service sector in our country assures a decent job to aspiring youth who have equipped themselves with market oriented skills. 

  7.     If you are lucky to be a child of rich parents, getting admission, now a days, is a family matter of money and not that of your Mark sheet. As a student, you have to decide whether you are capable enough to run the academic race lasting for half a decade. If you do not withstand the arduous test, your parents will lose the money and more importantly, you will lose some valuable years which is a big loss one can never make good. 

  8.     All things said and done, “Man proposes, God disposes”. Keep your “Plan B” ready, in case your “Plan A” fails. If it happens, do not lose your heart, though easier said than done. The outcome of Plan B will not be less rewarding if you work on Plan B with same enthusiasm and perseverance which you have intended to apply for achieving your Plan A. 

  9.     “Earn while you learn“is very popular path in developed countries. No doubt, the concept is very useful in terms of financial support and gaining on-hand experience. However, practically all the followers of the concept gradually lose the focus on their education and drops out before reaching the Finish Line. Beware of this pitfall before you tread on this path. Money has greater attraction power than that education has.

(II) Tips to parents for choosing a career plan for their children: 

  1.     If your child has not performed well in the exam, choosing a good career plan will be difficult and costly too. However, do not scold your child. Bear in mind that you have no moral right to do so if you have not monitored the progress all the early years while the poor performance was brewing up - a very bitter statement for the parents to swallow. Under such scenario, not to give a vent to your feeling as a parent will be more prudent. If you do so, issue may flare up -locking the stable gate is of no use once the horse has run away.

  2.     Choosing a career plan is a ticklish job. Your child is already under pressure, particularly when the mark sheet is not so impressive. Discuss with him his choices and various options available as per his scores in exam. Spare time to consult other parents, students, relatives, and colleagues and gather information and share with your child. Spare time from you work to visit colleges along with the child, at least two – three colleges. Emotional support is as important as financial support. 

  3.     Give more weightage to the views and choice of your child than those of yours. 

  4.     Shed your parent ego. Advise him as a friend, not as an elder.  

 5.     Though higher education has become an industry where money as a factor of production is a means to get into it but may not give the outcome as you expect. Outcome depends on calibre and hard work of the children. 

  6.     Do not thrust your choice on your children even though you have sacrificed a lot and have great stake in their further progress. 

  7.     Do not get carried away by the fairy dreams of good career being shown by the advisors and sometimes, by the family members. Consider what is required for materialising the dream. Consider: Have you got the financial resources as a parent? And: Has your child got the mettle for the strenuous race as student.

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NOMINATION IN BANK ACCOUNTS

INTRODUCTION:

Vertical and horizontal growth of banks in India is a matter of pride not only for the bank employees but also for any Indian, given the fact that the landscape of banking is predominantly occupied by public sector banks facing systemic and non-systemic issues. This success story simply put, while in 2011 only 58.70% of the households have atleast one or more bank account/s, in 2016 this ratio is increased to 99%. 

While opening a bank account, making nomination is very important aspect to avoid difficulty in claiming the balance/articles in case of unfortunate death of the account holder/all joint account holders. Though nomination facility is available for various purposes, this write up is confined to bank accounts only considering the audience and the medium. In case of joint account, appropriate operational instructions can mitigate the hardship to some extent but still it is advisable to make nomination in any of the accounts held jointly or singly. Considering the importance of making nomination, Reserve Bank of India has instructed all the banks to advise the depositors to avail the nomination facility and in case, if the depositor is not willing to avail the facility, to record the facts to this effect. Further, RBI has also instructed the Banks to put a legend (indicative statement), in the passbook/ Statement of Account/Fixed / Short Deposit Receipt, viz. “Nomination Registered” with the name of the nominee if the depositor has given the consent to also add, in the legend, the name of the nominee. 

The procedure for making nomination and settlement of claims by the nomination are governed by The Banking Companies (Nomination) Rules 1985 together with Clause 45(ZA) to 45(ZF) of Baking Regulations Act 1949. 

It is ironic that though the facility of nomination in bank deposit accounts/ locker facility is widely used, it is also generally misunderstood. The depositors in general understand that the nominee nominated by them will receive the balance amount (or articles, in case of Safe Custody Facility or Safety Locker Facility) and he/she will become the “sole owner” of the same. This perception is incorrect. The nominee receives the same as a trustee and  is responsible to hand over the same to the heir/s of the nominator if he/she (nominee) is not the sole heir of nominator/s or not the sole beneficiary of the will left by the sole account holder.  However, bank is discharged from its liability once the payment is made in due course to the duly nominated nominee. Nominee is required to produce his KYC Documents and the Death Certificate of the Nominator. It is to be noted that the nomination facility and settlement of claims under the facility is codified by RBI to facilitate the timely release of the fund/articles belonging to the nominator and it cannot override the Succession Law as applicable to the nominator/s.

WHAT IS A NOMINATION:

It is a codified procedure of appointing the individual/s by an account holder / by a lesser (hirer of locker) / by a bailer (safe custody of articles) for receiving the balance amount/articles in the locker/articles bailed with the bank by the person so appointed.

TYPES OF ACCOUNTS IN WHICH NOMINATION FACILITY IS AVAILABLE: 

All types of deposit a/cs, Safe Custody Facility and Safety Locker Hire Facility

WHO CAN NOMINATE: 

The individual/s who has/have opened the account in the personal capacity can nominate a nominee.

Nomination facility cannot be availed in accounts opened in fiduciary (representative) capacity e.g.  Body Corporate, Partnership Firm, Trust, HUF, Trust, Society, Co-Op Society, etc.

Note: Sole Proprietor can avail the facility of nomination in the account of the Sole Proprietor Firm. 

WHO CAN BE THE NOMINEE: 

Only an INDIVIDUAL can be nominated as a nominee.

Note:

1. A minor can also be nominated as nominee provided that the nominator has to appoint another person who is not a minor to act on behalf of the minor.

2. Nominee may or may not be a relative of the nominator.

3. An NRI can also be nominated but the repatriation of fund will be subject to RBI norms.

HOW MANY INDIVIDUALS CAN BE NOMINATED AS NOMINEE: 

In deposit accounts, only one individual can be nominated irrespective of the numbers of individuals in joint account.

In Safety Locker Hire Facility in the name two or more individuals where the operational instruction is JOINTLY, the hirers can nominate one or more individuals as nominee.

OTHER IMPORTANT FEATURES OF THE FACILITY: 

     1.  Nomination can be made at the time of opening the account or any time after opening the account.

     2.      In case of Joint Account, irrespective of the operational instructions, nomination is to be made by the joint signature of all the account holders.

     3.      Nomination is to be witnessed by a person other than the nominee. If the nominator is illiterate (authenticates the nomination form by putting thumb impression), it is to be witnessed by two witnesses.

     4.      Nomination can be canceled/ modified at any time by the nominator. In case of Joint A/c, all the account holders have to sign for the purpose.

     5.      Prescribed forms are to be used for respective purpose.

     6.      KYC Documents of the witness are not required.

     7.    Where a single individual is nominated as a nominee, the Nomination takes effect only after, in the case of sole account holder, the death of the sole account holder and in the case of joint account holders, death of all the joint a/c holders.

     8.      Nominee can give valid discharge in respect of the claim lodged against the bank. Bank is discharged once the nominee’s claim is settled. In case of dispute with the nominee, the legal heir/s has/have no recourse against the bank. However, he/she/they can proceed against the nominee. If the heir/s issue/s order from the court to bank for preventing the bank from entertaining nominee’s claim, the bank has to act as per the order of the court if the nominee’s claim is not settled before receipt of the court order.

    9.      If there are more than one heirs, nomination cannot prevent the other heir/s from claiming the share from the nominee and hence, under such circumstances, nomination cannot serve the purpose of a will if the nominator intends to make the nominee “the sole owner” of the subject fund/articles merely on the strength of nomination. To repeat, nomination can not prevent  the heir/s from claiming his/her rightful share from nominee. One’s wish to make an individual “the sole owner” of the fund/articles with a bank, can be fulfilled by a valid will.

   10.  Give nominee’s correct details (Name, Age, Relation (if any), Address etc) in the nomination form to avoid any problem in future. 

   11.  Bank has to prepare the list of inventory of the articles before the nominee removes or in the case of joint operations, nominee and the surviving hirer remove the articles. The list of the inventory is to be signed by all the claimants.

                                                      

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Disclaimer: This write up is for general information only. Please refer to RBI/Bank website or consult a legal expert before acting upon the information given in the write up. The writer or his employer is not responsible for any liability which may result from any action or omission of the person based on the information given hereinabove.