Buy Sovereign Gold Bonds from January 18 to 22, 2016

Government of India will be launched the Sovereign Gold Bonds Scheme from January 18 to 22, 2016. As investors will get returns that are linked to gold price, the scheme is expected to offer the same benefits as physical gold. They can be used as collateral for loans and can be sold or traded on stock exchanges.
Sovereign Gold Bonds will be issued on payment of rupees and denominated in grams of gold. Minimum investment in the bond shall be 2 grams. The bonds can be bought by Indian residents or entities and is capped at 500 grams.

The Sovereign Gold Bonds will be available both in demat and paper form.

The tenor of the bond is for a minimum of 8 years with option to exit in 5th, 6th and 7th years.

They will carry sovereign guarantee both on the capital invested and the interest.

Bonds can be used as collateral for loans.

Bonds would be allowed to be traded on exchanges to allow early exits for investors who may so desire.

Further, bonds would be allowed to be traded on exchanges to allow early exits for investors who may so desire.

In Sovereign Gold Bonds, capital gains tax treatment will be the same as for physical gold for an ‘individual’ investor. The department of revenue has said that they will consider indexation benefit if bond is transferred before maturity and complete capital gains tax exemption at the time of redemption.

Investors can apply for the bonds through scheduled commercial banks and designated post offices. NBFCs, National Saving Certificate (NSC) agents and others, can act as agents. They would be authorised to collect the application form and submit in banks and post offices.

The Bonds are issued by the Reserve Bank of India on behalf of the Government of India. The bonds are distributed through banks and designated post offices. This should make subscribing to the bonds an easy affair. During redemption, “the price of gold may be taken from the reference rate, as decided, and the Rupee equivalent amount may be converted at the RBI Reference rate on issue and redemption”.For more detail refer RBI page

PAN mandatory for Transaction of Rs 2 Lakh

In wake to prevent use of  black money and widening of tax base ,today goverment has ammendede use of  Permanent Account Number (PAN)  where the transactions exceed a specified limit.
As per finance minister last budget speech  quoting of PAN number is  mandatory for all sales and purchases of goods and services where the payment exceeds Rs.1 lakh.Further in this regard it has been decided that quoting of PAN will be required for transactions of an amount exceeding Rs.2 lakh regardless of the mode of payment(either Cash or Cheque)

1.) All Transactions Over Rs 2 Lakh Will Have To Quote PAN Number

2.) Will Give Some Breathing Time To Taxpayers

3.) Other Than PNJDY Accounts, PAN Is Mandatory For Opening Any Bank A/c

4.) For Any Term Deposit Of Rs 50,000, PAN Will Now Be Mandatory

5.) PAN Is Mandatory For Restaurant Bills Over Rs 50,000

5.) PAN Requirement To Buy Immovable Asset Is Being Hiked To Rs 10 Lakh from Rs 5 Lakh

11 Companies get node to open Payment Bank

In wake of spreading Financial inclusion RBI has given licence to 11 companies to start Payment Bank. This payment will reach out far flugh area without physical cash.This Bank will help to reach out lower income Group and help cashless transaction.RBI is in mood to encourage CASH less transaction .
Let’s understand what this payment bank will do.
1) Saving Account facility with Intrest
2) Send and Receive money for Migrant Labour
3) Transaction up to 1 lack
4) ATM -cum-Debit card
5) No credit Card facility
6) No Account for NRI
7) Mutual Fund and Insurance.
8) internet Banking

These New company have got Licence to act as Mini Bank,with this it will be a challenge to existing universal bank. Existing Bank have to look into there service and performance to attract their existing customer
List of Companies got Payment Bank Licence

Aditya Birla Nuvo Ltd.
Airtel M Commerce Services Ltd.
Cholamandalam Distribution Services Ltd.
Department of Posts
Fino PayTech Ltd.
National Securities Depository Ltd.
Reliance Industries Ltd.
Dilip Shanghvi, IDFC, Uninor.
Vijay Shekhar Sharma (Promoter of Paytm)
Tech Mahindra Ltd.
Vodafone mPesa Ltd.

Send Money to someone without Knowing Beneficiary Account number :SBI mCASH

To make banking transaction much more simplify ,SBI has start a new feature to transfer Money to someone account without knowing beneficiary bank account detail. This facility is currently available on Internet banking of SBI. and SBI mobile apps.
Under this transaction Send need to fill amount to send ,Email ID or Mobile number of Beneficiary. This.This option is available on Internet banking platform under PAYMENT and Transfer menu. Sender need to have Internet banking facility to avail this feature.
Once the sender submit the request Beneficiary get a PASSCODE on their Mobile number or email.
Beneficiary need to visit https://retail.onlinesbi.com/retail/login.htm and Click on State Bank mCASH-Claim Money on Horizontal menu.Beneficiary need to fill his account number in which he want to get money with IFSC code and Passcode.
Once these detail are filled correctly beneficiary need to submit it.

Feature of mCASH

1) Transaction limit Rs.1000/- per transaction. Day limit Rs.2000/-. However, the maximum limit of fund transfer should not exceed Rs.5000/- in a month, per user.
2) The customer would be charged at Rs.2.50 per request.
3) Redemption is subject to availability of funds in sender’s account at the time of claim.
4) No charges for redemption.
5) In case of wrong entry of account number or beneficiary details, the same will be rejected by the system and amount will be reversed in sender’s account within the stipulated time frame.
6) The Passcode entered should be valid. Passcode expiry period is 5 days from the date of creation.
7) Please note, as per RBI instructions, credit will be effected solely based on the beneficiary account information. Bank will not be liable for any wrong information given by the claimant.
8) Credit to the other bank accounts will be done through IMPS only.
9) The Bank shall not be responsible if the customer has mentioned a wrong mobile number/email address and the money has been transferred to the holder/receiver of the said wrong number/email by debiting customer’s account.
10) The Bank shall not be responsible in any way if the passcode is shared by the beneficiary and /or misused by any third party due to any negligence act of the beneficiary or lost/theft of cell phone of the beneficiary.
11) The beneficiary must have smart phone &/or email ID and should be conversant with the use of internet based applications.

Accidental and Life Insurance at Minimum Premium: Pradhan Mantri Suraksha Bima Yojana & Pradhan Mantri Jeevan Jyoti Bima

Pradhan Mantri Suraksha Bima Yojana

The scheme will be a one year cover, renewable from year to year, Accident Insurance Scheme offering accidental death and disability cover for death or disability on account of an accident. The scheme would be offered / administered through Public Sector
General Insurance Companies (PSGICs) and other General Insurance companies willing to offer the product on similar terms with necessary approvals and tie up with Banks for this purpose.
This scheme is applicable to bank account holder

Major Point of  Accidental Insurance

*For all Bank account holders whose age is between 18 to 70 years.
*Insurance amount can also be availed if in a handicapped state.
*Accident insurance worth Rs. 2 lacs at just Rs. 12 per annum as annual premium.
*Period of Insurance  Annual : 1st June – 31st May
*The premium will be deducted from the account holder’s saving bank account through ‘auto debit’ facility.
*The person would be eligible to join the scheme through one saving bank account only.

Insurance Claim Benefits

 * For Death Rs. 2 Lakh
 *For Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot Rs. 2 Lakh
*For Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot  is  Rs. 1 Lakh

Pradhan Mantri Jeevan Jyoti Bima

The scheme will be a one year cover, renewable from year to year, Insurance Scheme offering life insurance cover for death due to any reason. The scheme would be offered/ administered through LIC and other Life Insurance companies willing to offer the product on similar terms with necessary approvals and tie ups with Banks for this purpose. Participating banks will be free to engage any such life insurance company for implementing the scheme for their subscribers.
Major Points of this Life Insurance

*For all Bank account holders whose age is between 18 to 50 years.
*Life Insurance amount for your family, in your absence.
*Life insurance worth Rs. 2 lacs at just Rs. 330 per annum.
*Period of Insurance Annual : 1st June – 31st May
*The premium will be deducted from the account holder’s saving bank account through ‘auto debit’ facility.
*The person would be eligible to join the scheme through one saving bank account only.

For more information on this Insurance Scheme please visit http://www.pmjdy.gov.in/ or http://www.jansuraksha.gov.in/

No need to send IT-Return acknowledgement by Post: Use Aadhar card to authenticate

Now Income Tax has  aimed at easing taxpayer Return Filing process. I-T returns online will no longer have to send the paper acknowledgement by post .
 Aadhaar-based electronic verification code has been launched to authenticate this document.
In the ITRs for 2015-16  e-filer can provide his Aadhaar number which will have to be authenticated on the official website of the department via a One Time Password (OTP).
 The person who file the return  no longer need to send the ITR-V paper document to the CPC in Bengaluru.Tax payer will require the e-filer to register his Aadhaar number in the ITR after which the UIDAI database will send an OTP to the registered mobile number of the taxpayer which subsequently will have to be authenticated on the e-filing website.
As per present rules, a person who files his or her tax return online has to send a copy of the ITR-V to CPC within 120 days for processing of the return.
Now with this process he/she just authticate then and there and no need to do paper work. This will again a step to fasten the Return filing proces
This will also reduce the post office work load reduced the problem of mis-placed or non delevery of achknowlgemnt at CPC ,Bangalore

All that Glitter is Not Gold : Know about BIS Hallmark

Hallmarking is the accurate determination and official recording of the proportionate content of precious metal in precious metal (gold or silver) articles. Hallmarks are thus official marks used in many countries as a guarantee of purity or fineness of precious metal (gold or silver) articles

Provide third party assurance and satisfaction that customer gets right purity of gold (or silver) for the given price (value for money)

Gold Hallmark consists of following

a) BIS mark

b) Purity grades/fineness

 958 Corresponds to 23 Carat

 916 Corresponds to 22 Carat

 875 Corresponds to 21 Carat

 750  Corresponds to 18 Carat

 708  Corresponds to 17 Carat

 585 Corresponds to 14 Carat

 375  Corresponds to 9 Carat 

c)Assaying/Hallmarking Centre’s Identification Mark (one of the logos as

displayed on BIS website)

d) Year of Marking – denoted by a code letter e.g.

‘A’ for year 2000 ‘B’ for year 2001

‘C’ for year 2002 ‘D’ for year 2003

‘E’ for year 2004 ‘F’ for year 2005

‘G’ for year 2006 ‘H’ for year 2007

‘J’ for year 2008

‘P’ for year 2012

‘Q’ for year 2013

‘R’ for year 2014

‘S’ for year 2015 and so on

e) Jeweler’s Identification Mark 

 How much does it cost to get an gold article hallmarked?

 BIS recognized Assaying and hallmarking Centres have been advised to follow the

following hallmarking charges for Gold:

1) Rs. 18/- per article

2)  Minimum charges for a consignment shall be Rs. 100/- .

 (Services Tax and other levies as applicable shall be extra). 

How much does it cost to get an silver article hallmarked?

A. BIS recognized Assaying and hallmarking Centres have been advised to follow the

following hallmarking charges for Silver:

1) Rs. 10.00 per article upto 100 g

2) Rs 50.00 per article from 100 -500g

3) Rs 100.00 per article more than 500g

4) Minimum charges per consignment is Rs 150.00

 (Services Tax and other levies as applicable shall be extra)

mRUPEE lanuched Prepaid card for Payment

Tata group company  launched a  VISA-powered prepaid card in partnership with Ratnakar Bank (RBL).
with this  PaySmart card, mRUPEE customers will be able to withdraw money from VISA-licensed ATMs and also pay for goods and services at all merchants that accept VISA debit or credit cards nationally, the company in a statement said.

This service would offer convenience to those who do not have a bank account and hence are not able to participate in the mainstream economy.The minimum money value the PAY Smart card will hold is Rs 200 rupees while the maximum value is kept at Rs 1-lakh at any point in time.

What is mRupee?

MMP Mobi Wallet Payment Systems Limited (MMPL) is a fully owned subsidiary of Tata Teleservices Limited. MMPL’s flagship product is Mobile Money Order and Semi Closed Wallet – launched under the brand name “mRupee”.Mobile Money Order is a money transfer service which allows a customer to send money to the beneficiary’s bank account anywhere in India.
MMPL is authorized by the Reserve Bank of India (RBI) to set up a semi closed wallet.
List of Server Offered by mRupee
1) Fund transfer to Bank account.
2) Payment service for Online Shopping /Bill/Mobile Recharge/Travel

Watch this video Know more about mRupee

How to to get mRupee card?

1. Customer can visit into an mRUPEE Retailer outlet & requests for the PaySmart card to the retailer. The MMPL Retailer initiates the customer registration and card issuance process. The card kit with an inactive card would be issued to the customer, who can walk out in a few minutes.
2. Customer will share the duly signed CAF & furnish self-attested supporting KYC documents to mRUPEE Retailer.
3. After successful verification of the documents, RBL Bank will approve the request, The card would then be successfully activated.
4. The customer can now load money in the card at the mRUPEE outlet and start using it.

Soon Revolution in Banking from Mobile Store

Modi government has strives towards providing banking facilities to all sections of society, especially the poor and disadvantaged sections. Under this effort, the government launched the country’s public-funding scheme, now mobile shops, petrol pumps and shops located on the corners of the streets, helping people reach the door is banking.

The name of the new payment system of banking is PAYMENT BANK which is away from traditional financial institutions.Under this scheme Mobile stores, fuel centers and corner stores will permit you to provide banking services.

RBI’s move shows that the traditional bank PM Narendra Modi alone can not meet the objective of financial inclusion. 11 million new bank accounts were opened under Jan Dhan yojana, However, the concern is that these out of 11 million account , 8 million accounts is not having money in the accounts.

Payment Bank  will cater India’s 600,000 villages supporters say that this may be linked to the banking facilities where such facilities are not. Payment via bank to send money home, achieve economic benefits arising from the government or the business will be easier.
Payment bank will help to provide service different from traditional banks.Most important change is that the payment bank will accept only cash, but they will also have option to take  cash.

To provide banking services to people before the government started a system which was named prepaid payment instrument system. The biggest drawback of this system was that it could only be taken. There was no provision for payment to depositors lack the new banking system has been completed.

Payment bank  will help to put a stop to the use of cash in the economy. In 10 of the 9 transactions in India still have cash transactions only. The banking system and pre-paid mobile operator service providers play a key role. Retailers are also interested in it. Present in over 100 cities in India such as Future Group is a retail company said that it would apply for permits  Telecom service provider companies like Airtel, Vodafone and others want to be second in this case.

ICICI bank customer can send Money by Twitter account

Customers of ICICI Bank can use their Twitter account for real-time fund transfers, prepaid mobile recharges and to check bank balance.ICICI Bank has launched a facility which allows account-holders to transfer funds through Twitter.The user will have to subscribe (follow) the bank’s Twitter handle and register for the facility.
For fund transfer, the sender needs to know the beneficiary’s Twitter handle. The sender will get an SMS with a unique code after the transfer; the beneficiary would need to enter it on the special webpage where he/she would be directed, to complete the transaction.
It uses NEFT (National Electronic Funds Transfer) or RTGS (Real Time Gross Settlement) for the transfer and will soon be integrating IMPS (Immediate Payment Service) mode too.
Sender will have to pay the fees as applicable for a NEFT or RTGS transaction.

Beneficiaries who have account with another bank will have to put in that bank’s IFSC code to receive the payment.