QUOTE OF THE WEEK:
“There is a proverb that markets go up by the stairs, and down by the lift; sometimes banking systems and economies do the same thing”
Charles Littrell, Executive General Manager, Australian Prudential Regulation Authority
YOUR FINANCE DEMYSTIFIED:
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.
Basic savings bank deposit account is a saving bank account with NIL balance. Banks will not charge fee for deposit of money any number of times. In addition, banks will not charge for four withdrawals during a month. We will also get a passbook and an ATM/smart card without any fee. We can use this account for our day to day needs like deposit, withdrawal, remittances, direct credit of social benefits, etc… Read more
All you need to know about “CTS-2010 Standard” for cheques
Basic things to check before opening bank savings account
The purpose of a savings account is to develop the habit of saving. At the same time, a savings account allows us to use our money whenever we want. Savings bank account is safe and highly liquid. Besides, we also earn nominal interest on the money saved in our account. The interest rate is compounded on a half-yearly basis.
Savings account can be opened and operated by an individual. These accounts can also be opened in joint names. Minors over the age of 10 years can open an account in their name. In case of HUF (Hindu Undivided Family), the savings account can be opened in the name of the head of the family i.e. karta—provided that the HUF is not engaged in any business activity. However, we are often careless while opening a savings account. We just open an account to keep our money without knowing the pros & cons of opening a saving account with the bank… Read more
Legends used in bank account statement
Difference between income and credit
Every credit or a loan needs to be paid back. It is not to be treated as money earned or income. When we earn the money from salary or wages, etc, it is our income whereas credit or loan is not our income. On the other hand, repayment of the installments of credit is the expense.
We borrow money when our expenditure is more than our income or when there are emergencies. We also borrow when we need money for undertaking some business activities… Read more
How to manage your finance
DID YOU KNOW?
What is CRR, repo and reverse repo rate?
Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. If the central bank decides to increase the CRR, the available amount with the banks comes down. The RBI uses the CRR to drain out excessive money from the system… Read more
TERM OF THE WEEK
Annuity Plans: These plans provide for a ‘pension’ (or a mix of a lumpsum amount and a pension) to be paid to the policyholder or his spouse. In the event of death of both of them during the policy period, a lumpsum amount is provided for the next of kin.
IN THE NEWS THIS WEEK
SEBI resolves 27 lakh complaints in FY11-12
SEBI to increase manpower, focus on staff training
PFRDA expected to provide more tax benefits in NPS
Life insurers’ new business premium fell 6.3% in FY13
Life insurance policy sales decline in last 3 yrs
General insurers, reinsurer to set up TPA by Sept
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.