CULTIVATION THEORY

CULTIVATION THEORY was propagated by George Gerbner.

According to him ‘television audiences (unlike those of other media) view largely non selectively and by the clock rather by the program. Television viewing is a ritual, almost like a religion, except that it is attended to more regularly’. This view of the audience is that of the heavy viewer defined by Gerbner as one who watches TV for more than four hours a day. Thus TV is the media tool most relied upon by such an audience to get their information from.  

 

The study showed that events and characters shown on TV were significantly at variance with real people and actual situations. For e.g. criminals, doctors and the police were glamorized in TV serials while in real life they hardly get any publicity. Not only that, TV has perpetuated stereotyped images of women as always young, beautiful and docile while men are shown as young, macho and assertive. Parents are usually depicted as old, tradition-bound and dependent, physically, financially and emotionally. (This type of analysis did not explain everything, but stimulated the team to probe further and find the answer to the question as to how the audience reacted to the content served to them by TV.) 

 

The main point of the theory is that people who are addicted to television adapt their lives to the value systems and views that are brought to them by this media tool. For e.g. couch potatoes watching comedy shows most of the time believe that life is hunky dory and those who watch programs in which there is a predominance of violence think the world is essentially violent. In short the theory says that those who watch TV extensively cultivate a worldview fashioned by the programs they view. 

 

Gerber said that American households had become so influenced by TV that they accepted whatever it conveyed to them without any questioning. The audiences, especially those who watched television heavily, did not suspect that the picture of society that TV showed was not based on facts and what it called social reality hardly matched the actuality that characterized the prevailing societal setup. He argued that this world view, perpetuated by television usually through soap operas, if allowed to persist would create a parallel social setup which had its own rules and value system and its own adherents. He said as television was a cultural tool it was expected to promote enculturation by stabilizing what was already there and not by introducing change. 

According to Gerbner there are three types of viewers – heavy, medium and light – they are categorized on the basis of time they devote to TV watching every day. 

 

Gerbner asked four questions to the respondents comprising of heavy and light viewers.  

1. Were they ever involved in violence? 

2. How many people did they think worked in the government security agencies? 

3. What was the percentage of violent crimes? 

4. Was murder more common among strangers or among people who were known to one another? 

 

The questions were put to two sample groups, adults and adolescents. Their answers revealed that heavy watchers exaggerated the presence of violence in society. 

 

The theory argued that not only did extensive exposure to television result in exaggerating one’s idea of violence in society, it also made a viewer see himself as a potential victim of crime and violence. Creating a world of one’s own, which is closely modeled on the fictional one of television, is going to affect a person’s response to perceived danger. Gerbner's team obtained responses which showed that watching TV was likely to make the watcher afraid of violence which could involve his own person. 

ERA OF MASS SOCIETY | MASS SOCIETY THEORY

ERA OF MASS SOCIETY AND MASS CULTURE 

 

These ideas developed in the latter half of the 19th century as new media technologies were invented and popularized. Although some theories were optimistic about new technology most were extremely pessimistic. They blamed new industrial technology for disrupting peaceful rural communities and forcing people to live in urban areas to serve as a convenient work force in large factories, mines or bureaucracies. Theorists were fearful of cities because of their crime, cultural diversity and unstable political systems. 

 

For many social thinkers, mass media symbolized everything that was wrong with 19th century urban life. Media were singled out for criticism and charged with interfering with lower class tastes, causing political unrest, violating important cultural norms.  

 

MASS SOCIETY THEORY 

 

This theory (the first of its kind) was based on the belief that man lives in a society, which is his identity, and thus the media do not affect individuals but social formations, which are comprised of masses. This idea was facilitated by the availability of such mass media as newspapers, magazines, radio and movies on a massive scale. As more and more people availed themselves of these media facilities the idea of a mass society was born. 

 

The theorists believed that the media had corrupting influences on average people. To them ‘average’ people were those who did not have superior tastes. They believed that the media functioned like a ‘magic bullet’ or a ‘hypodermic needle’ – both penetrate a human being’s personality and leave their effects deep down inside. Baran calls this theory a ‘grand theory’. 

 

Not all people considered the effect of media bad. Most people remained stoic as they were not swayed by the fare media offered. They made careful selection and instead of being corrupted were enlightened by media. 

 

The essential argument of mass society theory is that media undermines the traditional social order. To cope with this disruption, steps must be take to either restore the old order or institute a new one.  

 

Media has an influence and the influence is negative. The negative impact of the Industrial Revolution was the division of society on the basis of class. People thought that media was for the elite. With the printing press, people wanted to learn about different media. Elite were educated and informed and they did not want the people in the lower strata to be educated because if they were, they would refuse to be treated like dust. 

 

 

JURGEN HABERMAS - PUBLIC SPHERE

Jurgen Habermas is a German philosopher and sociologist and is best known for his work on the concept of public sphere.

Jurgen Habermas is considered as the most influential thinker in Germany. He has mastered and creatively articulated an extraordinary range of specialized literature in social sciences, social theory and the history of ideas in the development of critical theory of knowledge and human interests. 

Jurgen Habermas claims "We call events and occasions 'public' when they are open to all, in contrast to closed or exclusive affairs". This 'public sphere' is a realm of our social life in which something approaching public opinion can be formed. Access is guaranteed to all citizens. 

Habermas established a conceptual ideal space where all citizens would be able to gather and discuss matters of common interest in an 'unrestricted fashion'. (Said to be theoretical as a truly equitable society has not yet been established). 

According to Habermas, there are several necessary conditions for the public sphere to function in a way that meaningfully serves a wide section of population. It needs to be open to all citizens who assemble freely to express their opinions in public discussions (not on behalf of a business or private interest but as individuals dealing with common matters of general interest).

Public sphere may be divided into smaller and more cohesive conversations which focus on specific issues. e.g. Green public sphere - enables individuals to discuss the interest of a range of stakeholders - from activists to experts to corporates, elected officials as individuals. 

Public sphere is a realm in which public opinion is formed, it mediates between the state and society. 

The Habermasian model of a public sphere holds a normative claim, that is, he describes a space which can only exist in an ideal democratic state, where equal participation and consideration are available to everyone. 

Habermas and Twitter as a public sphere:

Today's public sphere is highly influenced by digitalization. 

Habermas pointed to 18th century cafes, salons and bares as places for democratic debate and the rise of public opinion. Mass media first changed the public sphere, and digitalization has made it more accessible to all. 

Social media makes it easier for activists to express themselves. Twitter is advertised as a public space in that its users can access tweets and read them whether or not they have an account. Creating an account and joining in on the public discussion only requires internet access and an email address. This notion of public space and the value of social activism on twitter is complicated by the idea that public spaces often exclude huge sections of the population. There are public spaces that are only accessible by some. 

PRADHAN MANTRI MUDRA YOJANA

Pradhan Mantri Mudra Yojana (PMMY), also known as Mudra Loan, is a scheme started by the Government of India. 

The scheme was first introduced on April 8, 2015, by the Prime Minister of India. 

The Mudra loan scheme aims to provide financial assistance to those who run or plan to start their own micro, small, or medium enterprises. This initiated scheme offers a loan amount of up to ₹ 10 lakhs. 

The scheme has categorized the loans into three, which are Shishu, Kishore, and Tarun.

Shishu - Loan amount up to ₹ 50,000 can be availed under this Mudra Yojana scheme with a nominal interest rate ranging between 10% to 12%.

Tarun - Loan amount up to ₹ 5,00,000 can be vailed under this category of the Yojana. It is an unsecured loan with a nominal interest rate ranging from 14% to 17%.

Kishore - Loan amount up to ₹ 10,00,000 can be availed under this category. Being an unsecured loan, the nominal interest is charged from 16% and varies depending upon the lending institution.

Features of Mudra Loan

Mudra Loan is one of the best Government Schemes for business entrepreneurs in India with the below-mentioned features:

• Mudra loan can be term loan, working capital loan, or overdraft facility loan.
• It offers three kinds of loans: Shishu, Kishore, and Tarun.
• The maximum loan amount that one can avail of for their business is ₹ ten lakhs.
• The interest rate applied on the loan amount depends upon the nature of the business, requirements, and the borrower’s profile.
• The processing fees are either zero or 0.50% of the total loan amount.
• Collateral is not a requirement to apply and avail of the benefits of Mudra Yojana.
• The repayment tenure offered is flexible and can be extended to a maximum of 5 years.
• A nominal fee is charged on the Mudra Loan Yojana.

PRADHAN MANTRI JAN DHAN YOJNA

The Pradhan Mantri Jan Dhan Yojana  is a financial inclusion program of the Government of India open to Indian citizens (minors of age 10 and older can also open an account with a guardian to manage it), that aims to expand affordable access to financial services such as bank accounts, remittances, credit, insurance and pensions. 

This financial inclusion campaign was launched by the Prime Minister of India Narendra Modi on 28 August 2014. He had announced this scheme on his first Independence Day speech on 15 August 2014.

All accounts opened under the Pradhan Mantri Jan Dhan Yojaa will be zero balance accounts and shall be linked to RuPay debit cards. In order to open these accounts, the account holder has to only provide a photograph and a signature / thumb impression specimen. 

In a bank account opened under the scheme the total deposits must not exceed Rs.100000 in a year. The total withdrawals may not be over Rs. 10000 a month and the account balance shoudl not exceed Rs. 50000. The account shall remain active for a period of 12 months within which the account holder must furnish proof of application for a valid identificaiton document such as an Aadhaar Card or a Pan Card. In such a case the account will be allowed to exist for another year. 

ADDITIONAL INFO:

Under this scheme 15 million bank accounts were opened on inauguration day. This achievement was recorded by the Guinness Book of World Records!

The slogan of the scheme is "Mera Khaata, Bhagya Vidhata" (meaning "My account, fortune maker")

COMMERCIAL BANKS

Commercial bank is a financial institution that accepts deposits for the purpose of lending. 

Commercial Bank act as intermediaries because they accept deposits from savers and lend these funds to borrowers. In other words, commercial banks provide services such as accepting deposits, giving business loans and also allow for variety of deposit accounts. They collect money from those who have it to spare and lend to those who require it. Commercial bank is a banker to the general public. 

Commercial banks are registered under Indian Companies Act, 1956 and are also governed by the Indian Banking Regulation Act, 1949. 

Structure of Commercial Banks: Commercial banks are basically of two types: 1.Scheduled banks 2.Non-scheduled bank 

Scheduled banks are those which have been in II Schedule of RBI Act, 1934 and following criteria should be satisfied. 

- Minimum paid up capital Rs.5 lakh 

- It must be a corporation as cooperative society 

- Any activity of bank will not adversely affect the interest of depositors. 

Scheduled banks consist of public sector banks, private sector banks, foreign banks and regional rural banks. 

 Public Sector Banks: Public sector banks are those in which 50% of their capital is provided by Central Government, 15% by concerned State Government and 35% by sponsored commercial banks. In India, there are 27 public sector banks. 

They include the State Bank of India and its 6 associated banks such as State Bank of Hyderabad, State Bank of Mysore, etc. and 19 nationalised banks and IDBI banks ltd.

Private Sector Banks: Private sector banks are those in which majority of share capital kept by business house and individual. After the nationalization, entry of private sector banks is restricted. But some of private banks continued to operate such as Jammu & Kashmir bank ltd. To increase the competition spirit and improve the working of public sector banks, RBI permitted the entry of private sector banks in July, 1993.

Foreign Banks: Foreign banks are those which incorporated outside India and open their branches in India. Foreign banks performed all the function like other commercial banks in India. Foreign banks are superior in technology and management than Indian banks. They offer different types of products and services such as offshore banking, online banking, personal banking, etc. They provide loans for automobiles, small and large businesses. Foreign banks also provide special types of credit card which are nationally and internationally accepted. These banks earn lots of profit and create new ways of investments in the country. 

 Regional Rural Banks: The regional rural banks are banks set up to increase the flow of credit to smaller borrowers in the rural areas. These banks were established on realizing that the benefits of the co-operative banking system were not reaching all the farmers in rural areas.  

Functions of a Commercial Bank can be classified into three.

 I.Principal/ Primary/ Fundamental functions 

II.Subsidiary/ Secondary/ Supplementary functions 

III.Innovative functions. 

Principal functions: Commercial banks perform many functions. They satisfy the financial needs of the sectors such as agriculture, industry, trade, communication, so they play very significant role in a process of economic social needs. The functions performed by banks, since recently, are becoming customer-centred and are widening their functions. Generally, the functions of commercial banks are divided into two categories; primary functions and the secondary functions. Two ‘acid test’ functions of commercial banks are Accepting deposits and Lending loans. These functions along with credit creation, promotion of cheque system and investment in Government securities form basic functions of commercial banks. The secondary functions of commercial banks include agency services, general utility services and innovative services. 

Receiving deposits: Most important function of a commercial bank is to accept deposit from those who can save but cannot profitably utilise this savings themselves. By making deposits in bank, savers can earn something in the form of interest and avoid the danger of theft. To attract savings from all sorts of customers, banks maintain different types of accounts such as current account, Savings bank account, Fixed Deposit account, Recurring deposit account and Derivative Deposit account. 

Lending of funds: The second important function of commercial banks is to advance loans to its customers. Banks charge interest from the borrowers and this is the main source of their income. Modern banks give mostly secured loans for productive purposes. In other words, at the time of advancing loans, they demand proper security or collateral. Generally, the value of security or collateral is equal to the amount of loan. This is done mainly with a view to recover the loan money by selling the security in the event of non-refund of the loan. Commercial banks lend money to the needy people in the form of Cash credits, Term loans, Overdrafts (OD), Discounting of bills, Money at call or short notice etc. 

Cash Credit: In this type of credit scheme, banks advance loans to its customers on the basis of bonds, inventories and other approved securities. Under this scheme, banks enter into an agreement with its customers to which money can be withdrawn many times during a year. Under this set up banks open accounts of their customers and deposit the loan money. With this type of loan, credit is created. 

Term loans: A term loan is a monetary loan that is repaid in regular payments over a set period of time. In other words, a loan from a bank for a specific amount that has a specified repayment schedule and a floating interest rate is called Term loan. Term loans usually last between one and ten years, but may last as long as 30 years in some cases. It may be classified as short term, medium term and long term loans. 

Over-Drafts: It is the extension of credit from a bank when the account balance reaches zero level. Banks advance loans to its customer’s up to a certain amount through over-drafts, if there are no deposits in the current account. For this, banks demand a security from the customers and charge very high rate of interest. Overdraft facility will be allowed only for current account holders. 

Discounting of Bills of Exchange: This is the most prevalent and important method of advancing loans to the traders for short-term purposes. Under this system, banks advance loans to the traders and business firms by discounting their bills. While discounting a bill, the Bank buys the bill (i.e. Bill of Exchange or Promissory Note) before it is due and credits the value of the bill after a discount charge to the customer's account. The transaction is practically an advance against the security of the bill and the discount represents the interest on the advance from the date of purchase of the bill until it is due for payment. In this way, businessmen get loans on the basis of their bills of exchange before the time of their maturity. 

Money at Call and Short notice: Money at call and short notice is a very short-term loan that does not have a set repayment schedule, but is payable immediately and in full upon demand. Money at-call loans give banks a way to earn interest while retaining liquidity. These are generally lent to other institutions such as discount houses, money brokers, the stock exchange, bullion brokers, corporate customers, and increasingly to other banks. ‘At call’ means the money is repayable on demand whereas ‘At short notice’ implies the money is to be repayable on a short notice up to 14 days. 

Investment of funds in securities: Banks invest a considerable amount of their funds in government and industrial securities. In India, commercial banks are required by statute to invest a good portion of their funds in government and other approved securities. The banks invest their funds in three types of securities—Government securities, other approved securities and other securities. Government securities include both, central and state governments, such as treasury bills, national savings certificate etc. Other securities include securities of state associated bodies like electricity boards, housing boards, debentures of Land Development Banks, units of UTI, shares of Regional Rural banks etc. 

Credit Creation: When a bank advances a loan, it does not lend cash but opens an account in the borrower’s name and credits the amount of loan to this account. Thus a loan creates an equal amount of deposit. Creation of such deposit is called credit creation. Banks have the ability to create credit many times more than their actual deposit.  

Promoting cheque system: Banks also render a very useful medium of exchange in the form of cheques. Through a cheque, the depositor directs the banker to make payment to the payee. In the modern business transactions by cheques have become much more convenient method of settling debts than the use of cash. Through promoting cheque system, the banks ensure the exchange of accounted cash. At present, CTS (Cheque Truncation System) cheques are used by Indian Banks to ensure speedy settlement of transactions in between banks. In contrast to the declining importance of cheques, the use of electronic payment instruments at the retail level has been growing rapidly. 

Subsidiary functions: 

Agency services: Banks act as an agent on behalf of the individual or organizations. Banks, as an agent can work for people, businesses, and other banks, providing a variety of services depending on the nature of the agreement they make with their clients. 

Following are the important agency services provided by commercial banks in India. 

- Commercial Banks collect cheques, drafts, Bill of Exchange, interest and dividend on securities, rents etc. on behalf of customers and credit the proceeds to the customer’s account. 

- Pay LIC premium, rent, newspaper bills, telephone bills etc

- Buying and selling of securities 

- Advise on right type of investment 

- Act as trustees (undertake management of money and property), executors (carry out the wishes of deceased customers according to will) & attorneys (collect interest & dividend and issue valid receipt) of their customers. 

- Serve as correspondents and representatives of their customers. In this capacity, banks prepare Income Tax returns of their customers, correspond with Income Tax authorities and pay Income Tax of their customers. 

General Utility Services: In addition to agency services, modern banks perform many general utility services for the community. 

- Locker facility: Bank provides locker facility to their customers. The customers can keep their valuables such as gold, silver, important documents, securities etc. in these lockers for safe custody. 

- Issue travelers’ cheques: Banks issue traveler’s cheques to help their customers to travel without the fear of theft or loss of money. It enables tourists to get fund in all places they visit without carrying actual cash with them. 

- Issue Letter of Credits: Banks issue letter of credit for importers certifying their credit worthiness. It is a letter issued by importer’s banker in favour of exporter informing him that issuing banker undertakes to accept the bills drawn in respect of exports made to the importer specified therein. 

-Act as referee: Banks act as referees and supply information about the financial standing of their customers on enquiries made by other businessmen. 

- Collect information: Banks collect information about other businessmen through the fellow bankers and supply information to their customers. 

- Collection of statistics: Banks collect statistics for giving important information about industry, trade and commerce, money and banking. They also publish journals and bulletins containing research articles on economic and financial matters. 

- Underwriting securities: Banks underwrite securities issued by government, public or private bodies. 

- Merchant banking: Some bank provides merchant banking services such as capital to companies, advice on corporate matters, underwriting etc. 

Innovative Functions: The adoption of Information and Communication technology enables banks to provide many innovative services to the customers such as; 

ATM services: Automated Teller Machine (ATM) is an electronic telecommunications device that enables the clients of banks to perform financial transactions by using a plastic card. Automated Teller Machines are established by banks to enable its customers to have anytime money. It is used to withdraw money, check balance, transfer funds, get mini statement, make payments etc. It is available at 24 hours a day and 7 days a week. 

Debit card and credit card facility: Debit card is an electronic card issued by a bank which allows bank clients access to their account to withdraw cash or pay for goods and services. It can be used in ATMs, Point of Sale terminals, e-commerce sites etc. Debit card removes the need for cheques as it immediately transfers money from the client's account to the business account. Credit card is a card issued by a financial institution giving the holder an option to borrow funds, usually at point of sale. Credit cards charge interest and are primarily used for short- term financing. 

Tele-banking: Telephone banking is a service provided by a bank or other financial institution that enables customers to perform financial transactions over the telephone, without the need to visit a bank branch or automated teller machine. 4.Internet Banking: Online banking (or Internet banking or E-banking) is a facility that allows customers of a financial institution to conduct financial transactions on a secured website operated by the 29institution. To access a financial institution's online banking facility, a customer must register with the institution for the service, and set up some password for customer verification. Online banking can be used to check balances, transfer money, shop online, pay bills etc. 

Bancassurance: It means the delivery of insurance products through banking channels. It can be done by making an arrangement in which a bank and an insurance company form a partnership so that the insurance company can sell its products to the bank's client base. Banks can earn additional revenue by selling the insurance products, while insurance companies are able to expand their customer base without having to expand their sales forces. 

Mobile Banking: Mobile banking is a system that allows customers of a financial institution to conduct a number of financial transactions through a mobile device such as a mobile phone or personal digital assistant. It allows the customers to bank anytime anywhere through their mobile phone. Customers can access their banking information and make transactions on Savings Accounts, Demat Accounts, Loan Accounts and Credit Cards at absolutely no cost. 

Electronic Clearing Services: It is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax etc. 

Electronic Fund Transfer/National Electronic Fund Transfer (NEFT): National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and corporate can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme. In NEFT, the funds are 30transferred based on a deferred net settlement in which there are 11 settlements in week days and 5 settlements in Saturdays. 

Real Time Gross Settlement System (RTGS): It can be defined as the continuous (real-time) settlement of funds transfers individually on an order by order basis. 'Real Time' means the processing of instructions at the time they are received rather than at some later time. It is the fastest possible money transfer system in the country.