FLAME Newsletter - February 13, 2013


“We want to ensure that the system is working, if there is an offence there is somebody to look into it, the rules are uniform for everybody and grievances can be redressed immediately and promptly” — UK Sinha, SEBI Chairman


Important lessons to know when you start the financial life

The power of compounding can be understood well if you start your investments earlier in life. However, the newcomers who have joined companies fresh out of the college will not be enthusiastic about investments. Most of them will not have any knowledge on this aspect. Of course, they will go mad when their seniors advise them to start investing right from their first month.

Rule 1: The newcomers are fully entitled to spend their salary in accomplishing their dreams. Let them buy a new bike, cool mobile stuff, laptop and go on tours. No one will be interested to start saving right from the first month onwards. It will take at least six months to start thinking about making investments… Read more

Know the difference between income and credit

Essential expenses vs non essential items

How to open a savings bank account

People in India can open a savings bank account by filling up the account opening form with a latest photograph and submitting documents to comply the “know your customer” (KYC) norms, i.e., proof of our identity and residence.

Now, we do not require money to open an account. The Reserve Bank of India has advised all banks to open saving accounts with “NIL” balance. It is called a Basic Savings Bank Deposit Account which can be opened by any person without the requirement of maintaining a minimum balance… Read more

Why save in a bank?

How to manage your finance

Our finance is like a pitcher with a tap for outflow at the bottom of it. The water flowing into the pitcher is our income and the water flowing out of the pitcher are our expenses.

Money earned from various sources like salary, wages, earnings from farming or business etc. is our income. Money spent by us on various items is our expenditure. It includes spending money on essential as well as non essential items… Read more

Good habits to manage your finances

Power of compounding… A motivating story


“Who prohibits banks from opening everybody’s bank accounts or from giving credit to everyone… Nobody does. However, the price is such that it makes it prohibitive. Take for instance flying by a plane – everyone who can afford to buy a ticket can fly in a plane as a matter of right, but how many are able to exercise that right?” - Dr KC Chakrabarty, RBI Deputy Governor

“A service cannot be called to have an effect of a fundamental right unless it is accessible to all. For instance, we cannot say that healthcare is a fundamental right if people have to travel to the district headquarters from the village to take treatment. The same applies to banking also - it must be available at the doorsteps” - Dr KC Chakrabarty, RBI Deputy Governor


Damaged notes can be exchanged at banks

Soiled, mutilated and imperfect notes can be exchanged at any bank. In fact, banks are expected to provide the facility of exchange of soiled notes even if you are not a customer. While soiled notes can be exchanged for full value, mutilated and imperfect notes may not be exchanged for full value, depending on their condition.



The process of removing the quotation of the price of a listed company’s share on the Exchange on which it trades, thereby preventing the purchase or sale of that stock through the Exchange. Delisting normally occurs if a company declares bankruptcy, following a merger, acquisition or other Succession Event, or if the company ceases to satisfy the listing rules of the relevant Exchange.


Inflation expectations for Q4 edged up marginally: RBI

RBI alerts against increasing CAD

Banks can open A/cs for Bangladeshi nationals without RBI nod

Affordable housing may get infra status

AMFI relaxes ARN process for new distributors

SEBI allows liquidity enhancement schemes in equity cash market

MF month-end AUM of Rs. 8.26 trillion an all-time high

Increase in FII debt limit for government & corporate debt category


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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