FLAME Newsletter - 27 March 2013


“You don’t need a sting operation to show that in this country, people have black money. Some black money remains in bank accounts, for that do you require to have a sting operation? We don’t make it as a systemic issue” — KC Chakrabarty, Deputy Governor, RBI


Govt cuts interest rates on PPF & small savings by 0.1%

The government on 25 March 2013 has reduced the rate on other small savings schemes with maturity of two years or more by 10 basis points or 0.1% (100 bps is equal to 1%). This includes fixed deposits (FDs), recurring deposits (RDs) and National Savings Certificates (NSCs). The new rate will be effective from 1 April 2013.

An FD with tenure of 1 year will now provide an interest rate of 8.2% per annum against 8.3% earlier. Five-year NSC and 10-year NSC will offer rate of return of 8.5% and 8.9%, respectively from 8.6% and 8.9%. Senior Citizens Savings Scheme (SCSS) will now offer the highest rate of interest at 9.2%... Read more

PPF withdrawal calculator

No long queues...PPF scheme now available online

Little known facts about EPF & EPS

Employees’ Provident Fund—commonly called PF—is a retirement benefit scheme that is available to all salaried employees. It is a very important tool of retirement planning. The tax-free interest (compounding) and the maturity ensures a good growth of our money.

Both employees and the employer contribute to PF at the ‘rate of 12%’ of the basic wages and dearness allowance (if any) per month. Thus, the total contribution to PF is 24% per month. PF provides retirement benefit to us to secure a better standard of living at retirement.

However, there are many things about EPF which most of us are unaware of. The below article provides you more information about EPF such as how the contributions are calculated based on basic salary and DA, what are the EPF interest rates, what is pension scheme, etc… Read more

PF subscribers to get 8.5% interest rate for FY13

Check your EPF balance online with e-passbook

Now, you can check your EPF balance online using the new e-passbook facility available on EPFO (Employees Provident Fund Organisation) website. EPFO (Employees Provident Fund Organisation, India) has launched the e-passbook facility for EPF (Employees’ Provident Fund) subscribers—which will include their updated PF account status online. The new concept called EPF Account Passbook allows members to download their e-passbook multiple times in a month. The PF department no longer provides hard copy of the annual PF statement… Read more 

The need for EPF

Claiming benefits under EPF & EPS


Fiscal deficit: The money borrowed by the government is eventually a burden on the people of India, and is, therefore, called public debt. It is split into two heads: internal debt (money borrowed within the country) and external debt (funds borrowed from non-Indian sources). Usually the government spends more than what it earns through various sources. This shortfall, which is met with borrowed funds, is called fiscal deficit. Technically, it is the excess of government expenditure over ‘non-borrowed receipts’ — revenue receipts plus loan repayments received by the government plus miscellaneous capital receipts.

Quote, Unquote

“One of the problems with our financial sector at a conceptual level has always been the multiple hats that RBI has been wearing. If you try to play two roles where there is conflict built into those roles, no matter what your intentions are there will be some element of conflict” - Meleveetil Damodaran, former SEBI chief, on CNBC TV18


What is a commercial paper?

Commercial paper is a short-term debt instrument issued by companies to raise funds for up to a year… Read more


Imparting education is necessary: SEBI

Rate cut on small savings will not hit collections: C Rangarajan

SEBI to set up effective surveillance system in FY13-14

IRDA to investigate money laundering allegations

Life insurers to adopt standard proposal form for policyholders


FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.

In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.

Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.

This portal is but one of the various IIFL initiatives that would be part of FLAME.

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