Search Results

The Reserve Bank of India agreed on Friday to allow all banks to adopt card-less cash withdrawals through ATMs in an effort to combat fraud. Currently, cardless cash withdrawals using ATMs are an allowed form of transaction offered on a case-by-case basis by a few institutions in the nation (for their customers at their own ATMs). Customers will be able to authorise transactions through the Unified Payments Interface (UPI), with settlement taking place through ATM networks, according to a statement on Developmental and Regulatory Policies. Separate instructions will be sent to NPCI, ATM networks, and banks in the near future, according to the statement. RBI Governor explained that the Bharat Bill Payment System (BBPS) is an interoperable bill payment network that has experienced a growth in the number of bill payments and billers over time. It is proposed to reduce the net worth requirement of non-bank Bharat Bill Payment Operating Units from Rs 100 crore to Rs 25 crore in order to facilitate greater bill payment penetration through the BBPS and to encourage the participation of a greater number of non-bank Bharat Bill Payment Operating Units in the BBPS. The essential regulatory changes will be implemented as soon as possible. Standardized bill payment experience, centralized customer grievance resolution process, mandated customer convenience fee, and other perks are available to BBPS users. BBPS is an interoperable bill payment platform with a scope and coverage that includes all types of billers that raise recurring invoices. The number of non-bank Bharat Bill Payment Operating Units has not increased in lockstep with the number of non-bank Bharat Bill Payment Operating Units (BBPOUs). Maintaining the safety and security of payment systems is a fundamental RBI aim, according to the statement, because they play a catalytic role in encouraging financial inclusion and fostering financial stability. It is critical to guarantee that payment system infrastructures are not only efficient and effective, but also resilient to traditional and emerging risks, particularly those related to cyber security, as the use of digital payment modalities grows.

The Central Board of Direct Taxes (CBDT) has pushed out the deadline for linking the PAN Card with Aadhaar from March 31, 2022 to March 31, 2023, providing significant relief to individuals. However, on April 1, 2022, anyone who links the two documents will be fined. The CBDT announced this in a notification dated March 29, 2022. To complete the PAN-Aadhaar linkage system for detecting false PANs, the Finance Act of 2021 inserted a new section 234H to the Act. If a person who is required to intimate his Aadhaar under subsection (2) of section 139 AA fails to do so on or before a notified date, he will be liable to pay a fee of not more than Rs 1,000, as may be prescribed, at the time of making intimation under subsection (2) of section 139AA after the notified date, according to this new section. The CBDT has announced that attaching a PAN to an Aadhaar number will result in a punishment of Rs 500 for the first three months (until June 2022) and a fee of Rs 1,000 after that. "Further, rule 114AAA of the Income-tax Rules specifies that if a person's PAN has become inoperative, he will not be able to give, intimate, or cite his PAN and shall be liable to all the consequences under the Act for such failure," according to a CBDT circular dated March 30, 2022. If a person's PAN becomes invalid, it will have the following consequences: I The person is not permitted to file a return with an invalid PAN. (ii) There will be no processing of pending returns. (iii) Inactive PANs are not eligible for pending reimbursements. (iv) Once the PAN is inactive, pending processes, such as defective returns, cannot be completed. (v) As PAN becomes inoperative, tax will have to be deducted at a higher rate. Because PAN is a crucial KYC criterion for many types of financial transactions, the taxpayer may have problems filling out other forms.

If you're a member of the Employees' Provident Fund Organisation (EPFO), you should be aware of certain vital information. Beginning April 1, investors will be required to pay tax on interest on provident fund (PF) payments due to recent rule changes. The following are the five most significant items subscribers should be aware of regarding the new EPF rules: 1. The new rule will not effect all subscribers. 2. Investors who save more than Rs 2.5 lakh per year would have to pay tax on the interest on their PF funds, according to new guidelines. 3. If employee contributions to the PF account do not exceed Rs 2.5 lakh in a year, all interest credited to the account would be tax-free. 4. Experts believe that the new rule change will mostly affect high-income workers with a bigger PF deduction. 5. Prior to Budget 2021, EPF interest was completely tax-free, which meant that investors could put as much money into PF schemes as they wanted without worrying about the taxes. 6. Subscribers will have to pay taxes on interest on savings of more than Rs 5 lakh every year if their employers do not contribute to their PF account. 7. The interest on PF accounts would be taxed every year after the deposits reach Rs 2.5 lakh. 8. The Central Board of Direct Taxes (CBDT) has inserted a new section 9D to the IT rules to implement the new adjustment. 9. Within existing PF accounts, two distinct accounts will be formed to simplify computing taxes on EPF savings easier. 10. One account would hold savings up to Rs 2.5 lakh and the other will hold investments worth more than Rs 2.5 lakh.

The expense of hospitalisation and subsequent treatment is growing. As a result, it is necessary to look for additional benefits in exchange for a somewhat higher premium. For clients who want to customise their insurance coverage, this fills in the gap. 'Riders', which are included in most insurance plans, are not widely understood by the general public. For an additional fee, you can obtain additional perks such as ridership. Accepting riders on your health insurance policy permits you to additional coverage at a significantly reduced cost. Maternity coverage, accidental disability coverage, and more can be added to your health insurance policy with these add-ons. Riders that can be included into a health insurance policy are: Rider for Critical Illness If you have health insurance, your hospitalisation and subsequent treatment will be covered by the insurance company. In the event that a life-altering illness renders you unable to work or support yourself financially, what recourse do you have? In the event that you develop any of the critical diseases specified in your policy, you can count on your insurance company to make good on its promise to pay you the agreed-upon benefit amount if you purchase a critical illness rider. For instance, if you've paid for a critical illness rider of 5 lakhs on a health insurance policy worth 10 lakhs. If you are diagnosed with a critical illness, you will receive a lump sum payment of 5 lakh as part of your critical illness insurance. Rider for Maternity Cover For those who intend to start a family in the future and wish to have the costs of childbirth covered by this policy, this is an option. Once you've done that, you can see if your health insurance carrier offers coverage for expecting mothers as well. Maternity insurance can help you pay for the costs of giving birth, however some policies limit the payout to only covering the costs of giving birth, not the costs associated with labour or the expenses incurred after the delivery of your kid. However, you may not be able to use this rider to cover the costs of post-delivery care and vaccines. Check to see if this rider has a waiting period before it can be used. 24 months in most circumstances, however some plans allow for three years. Rider for Accidental Disability A long-term disability after an accident may be a cause for concern. This rider serves as a safety net in the event of an accident-related disability. When a person is injured in an accident, their insurance company is obligated to pay the amount specified in the policy's rider. To be eligible for compensation, the policyholder must have suffered a total loss of function owing to the accident, such as blindness or paralysis. However, if the insured person loses an eye or a limb, they will only receive half of the amount they were guaranteed to receive. Rider for Hospital Cash Hospitalization means that the insured will not be able to go to work for that time period. The family that relies on the insured's income will suffer a financial loss as a result of this. The insured receives a monetary sum equal to the number of days he or she was absent from work as a result of the treatment. The amount varies from policy to policy and is used to make up for lost wages while you're in the hospital. Waiver of Room Rent A room rental cap is a common feature of many insurance contracts. This indicates that the insurance company is only obligated to pay a portion of the room rent if the insured is hospitalised, and not the full amount. While this rider is included in a standard insurance, it doesn't mean that the insured is requesting a suite or a VIP-styled accommodation when he or she pays for it. You can select a room of your choosing if you pay an additional fee for the waiver. It may appear costly to add riders to your health insurance policy, but doing so increases the coverage you receive. Despite the fact that it may appear to be a burden on premiums, its long-term effect demonstrates that it is worth having given the current fragility of life.

Regardless of one's stage of life, whether it's arranging a steady income for retirement, managing children's education, or developing a health-care fund, identifying one's ambitions and goals and then working toward them is always a top priority. The PNB MetLife Guaranteed Goal Plan is a savings plan that allows you to put money aside on a regular basis while receiving guaranteed returns. The PNB MetLife Guaranteed Goal Plan safeguards your goals from unforeseeable life events while giving you complete control and flexibility over how you save. It was made with the intention of allowing you to enjoy your independence while simultaneously assuaging your fears about the future. Customers can personalize their plan by choosing from a single premium payment period to a 12-year premium payment period. The new plan offers built-in life insurance coverage till maturity, premium waivers in the case of death or a critical illness diagnosis, and accidental death and critical illness coverage. PNB MetLife Guaranteed Goal Plan in a nutshell Secure future with Guaranteed Benefits Flexibility to receive benefits as Lumpsum or Guaranteed Income Boost corpus with Guaranteed Additions & Wealth Additions Higher benefits for higher premium payment Flexibility to accumulate survival benefits & receive payouts on date of your choice Life cover for entire policy term What you don’t get Suicide Exclusion If the Life Assured’s death is due to suicide within twelve months from the date of commencement of the risk or from the Date of Revival of the Policy as applicable, the Nominee of beneficiary of the Policyholder shall be entitled to 80% of the total Premium paid under the Policy till the date of death or Surrender Value available as on the date of death, whichever is higher, provided the Policy is in Inforce status Waiting Period if Health Care Benefit is opted A waiting period of 90 days is applicable from inception of the policy or from any subsequent revival, whichever is later. If a claim related to Health Care Benefit occurs during Waiting period, total premiums paid shall be refunded and the policy will terminate. If a Critical Illness is contracted during the Waiting Period, then total premiums paid shall be refunded and the policy will terminate. Exclusions for Critical Illness if Health Care Benefit is opted No waiver of premium benefit will be payable if the Critical Illness is caused or aggravated directly or indirectly by any of the mentioned conditions under Exclusions section in Term & Conditions of the policy. Please refer complete Sales Brochure/Policy document for details of the exclusions.

The Jeevan Tarun money-back plan from LIC was created exclusively for India's youthful population, to support their educational and other needs as they grow. From the ages of 20 to 24, they will be eligible for annual Survival Benefit payments, and Maturity Benefits will be paid at the age of 25. This post has described LIC's money-back scheme, as well as a benefit calculation, so you can have a rough estimate of how much you'll get out of a specific amount of investment. The minimum age for entry for the LIC's Jeevan Tarun plan is 90 days, and the maximum age at entry is 12 years, so a parent can choose this plan on behalf of a kid. Age of Maturity (Minimum or Maximum): 25 years. The minimum Sum Assured is Rs. 75,000, while the maximum Sum Assured is unlimited. From Rs. 75,000 to Rs. 100,000, the Sum Assured shall be in multiples of Rs. 5,000, and from Rs. 100,000 to Rs. 10,000, the Sum Assured shall be in multiples of Rs. 10,000. The Jeevan Tarun policy has a 25-year policy term and a 20-year Premium Paying Term (PPT). This is a non-linked, child-specific life assurance savings plan that provides both protection and savings. Maturity benefits are quite lucrative for the LIC's Jeevan Tarun plan. It has been mentioned before, that the Maturity Age under the policy is 25 years. The "Sum Assured on Maturity" along with vested Simple Reversionary Bonuses (and Final Additional Bonus, if any) will be paid by LIC under maturity benefits to the policyholder. The Sum Assured for the maturity benefits varies upon the 4 different options. Under option 1 the maturity benefits will be 100% of the Sum Assured, under option 2 the maturity benefits will be 75% of the Sum Assured, under option 3 the maturity benefits will be 50% of the Sum Assured, and under option 4, the maturity benefits will be 25% of the Sum Assured. There are also few settlement options for receiving the Maturity Benefit in installments. You can receive the benefits over the chosen period of 5 or 10 or 15 years, instead of lumpsum. One can exercise this option during the minority of the Life Assured or by Life Assured aged 18 years and above. LIC will pay a refund of premium(s) paid, except taxes, additional premium, and rider premium, if any, without interest, if you die before the risk begins. The Sum Assured on Death of LIC Jeevan Tarun is the Death Benefits. The Sum Assured on Death, according to the organisation, is the greater of 7 times the annualised premium or 125 percent of the Sum Assured. This Death Benefit will be at least 105 percent of the total premiums paid up until the date of death. Instead of a lump payment, the policyholder's family can choose to receive the death benefit in instalments over 5, 10, or 15 years. It will cost Rs. 5,000 for a monthly term, Rs. 15,000 for a quarterly time, Rs. 25,000 for a half-yearlong period, and Rs. 50,000 for a yearly period. You have four options for how much Survival Benefits you want to receive during the policy's duration. There is no survivor benefit in Option 1, and the Maturity Benefit is 100 percent of the Sum Assured. Option 2 provides a Survival Benefit of 5% of the Sum Assured every year for 5 years, and a Maturity Benefit of 75% of the Sum Assured. Option 3 provides a Survival Benefit of 10% of the Sum Assured every year for 5 years, and a Maturity Benefit of 50% of the Sum Assured. Option 4 provides a Survival Benefit of 15% of the Sum Assured every year for 5 years, and a Maturity Benefit of 25% of the Sum Assured. On each policy anniversary corresponding with or immediately succeeding the completion of 20 years of age, and thereafter on each of the next four policy anniversaries, a specified percentage of the Sum Assured will be paid. These set percentages, according to LIC, will be determined by the alternatives selected.

A Mutual Fund tool that allows investor to periodically transfer a certain amount from one scheme to another scheme at a predefined frequency. Systematic Transfer Plan or STP is a method in which an investor transfers a defined amount of money from the Source scheme to the Target scheme (usually from a debt fund to an equity fund). It is a mutual fund investment strategy. An investor who uses the Systematic Transfer Plan (STP) technique of investing transfers a set amount of money from one fund type to another at a set interval, typically from a debt fund to an equity fund. STP is a useful strategy in mutual funds for averaging your investments over time. The decision to undertake a STP or lump-sum is based on three factors: 1, The investor's current equity allocation 2. Risk profile 3. Market outlook A Systematic Transfer Plan (STP) allows you to invest a lump sum amount in one scheme and then transfer a pre-determined amount from that scheme into another scheme on a pre-determined date. STPs are a sensible solution for long-term risk management because they provide the convenience of systematic, automatic, and periodic transfers without the need for additional action. How does a STP work? An STP is a method of transferring money from one mutual fund to another. The first fund's balance is reduced, while the second fund's balance is boosted. This occurs automatically, and you are not required to do anything to receive the funds. The investor must choose a fund from which the transfer should be made and a fund to which it should be made. Depending on the STP selected and the options available with the AMC, transfers can be made daily, weekly, monthly, or quarterly. Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP), two other common mutual fund investing approaches, are closely related. A SIP invests a predetermined amount in a mutual fund at predetermined intervals, while an SWP withdraws a predetermined amount from a mutual fund at predetermined intervals. Furthermore, investors might deposit a flat sum in an equities fund and expect a regular withdrawal. The systematic withdrawal plan SWP is another way to withdraw money from a mutual fund scheme. SWP is the polar opposite of SIP. After depositing a lump sum payment in a mutual fund plan, investors can withdraw a specified amount of money at regular periods. For many people, this withdrawal serves as a reliable source of income (E.g., senior citizens) STP can also be useful while planning some of your significant financial goals, such as buying your dream home, getting married, children's schooling, marriage, retirement, and so on, because it allows you to progressively transition from equity to debt as you come closer to your financial goals. Features of Systematic Transfer Plan ? Minimum Investment STP does not need a minimum investment. However, some AMCs might have an additional requirement of minimum payment. Load at the Entry and Exit Six capital transfers from one mutual fund to another are necessary to apply for a STP. Once investors are free of entrance charges, SEBI permits fund companies to levy an exit charge. Tax Sweeping funds out of an equity or debt fund is considered as a sale and is taxed appropriately. If you are transferring money from debt/liquid funds to equity funds, any sale made before three years would be considered short-term capital gains (STCG) and will be taxed at your slab rate. While you transfer your investments from a mutual fund scheme to another, the Income Tax Act, 1961 construes it to be sale transaction, and thus the provisions of the Act apply as well. Likewise, a Securities Transaction Tax (STT) will be levied at the time of exit i.e. from one equity oriented fund to a debt scheme, or even another equity mutual fund scheme (of the same fund house) Disciplined STP permits controlled fund transfers, and in most circumstances, it is possible to establish a systematic transfer plan from a debt fund to an equity fund. Pros of a Systematic Transfer Plan Managing your Financial Resources: Redistributing investments between debt and equity, STP aids in portfolio rebalancing. Cost-Averaging: Systematic Investment Plan (SIP) characteristics are incorporated into STP (SIP). The source of investment is a major distinction between STP and SIP. Money is often transferred from a debt fund in the first situation, and from the investor's bank account in the second. STP, like SIP, aids in rupee cost averaging because of its similarity to SIP. Aiming for Increased Profitability: In most cases, money invested in a debt fund earns interest until it is transferred to an equity fund for further growth and development. Debt funds often offer larger returns than savings accounts and are designed to provide a higher level of risk-adjusted returns. Types of STPs Fixed STP-Investors move a specific sum from one investment fund and transfer it to another fund. In capital appreciation STP, the investors take out the profit that they have gained on one investment and invest in another investment fund. Flexi STP- Investors might opt to transfer a variable amount. The fixed amount would be the minimum amount and the variable amount depends on the volatility of the market. Capital STP-Investors reinvest the complete profits generated by a fund's market appreciation in another prospective scheme with a strong development potential. Conclusion : Even though you must make an initial lump-sum investment, Systematic Transfer Plans are regarded safer. The key reason for this is that you have the option of transferring regular amounts from your source fund to other target funds. This is an excellent approach to not only increase your wealth but also to maximize your investment returns. You can profit from the flexibility of shifting out to debt or equity-oriented funds at any point in the market cycle. Furthermore, your source fund is still producing returns. This means that your money is always growing and compounding. These programmes allow you to rebalance your portfolio according to your financial objectives. When you need to attain short-term goals, you can transfer out to equity-oriented funds, and when you require long-term savings, you can move out to debt. STP is a very effective approach for reducing market risk. However, it is important to realize that it does not eliminate the danger of market losses. Simultaneously, reducing risk exposure means that the investor may miss out on possible gains when the market performs very well. In the long run, however, this method can be utilized to limit losses and boost portfolio returns. Want to know more about STP vs SIP- Read here - https://www.myrupaya.in/post/difference-between-sip-and-stp

The Employees Provident Fund Organization (EPFO) has lowered the return on workers retirement savings to 8.1 percent from the 8.5 percent rate given to EPF members accounts in the last two years. The previous time yearly returns on EPF savings were this low were in 1977-78, when the rate was 8%, although that was the highest rate on EPF savings at the time since the EPFO's founding in 1952. Since then, the EPF rate has been less than 8.5 percent just three times – in 1979-80, 1980-81, and 2011-12 — when balances earned an 8.25 percent return. At meeting in Guwahati on Saturday, the EPFO's Central Board of Trustees (CBT), led by Labour and Employment Minister Bhupender Yadav, proposed 8.1 percent. The Finance Ministry must approve the rate before it is informed and credited to members' accounts. The reduction in the EPF rate, at a time when inflation is resurgent, attracted condemnation from the board's primary trade union representatives, who argued for the retention of the 8.5 percent return. Employee representatives also criticised the most recent rate drop on EPF savings from 8.65 percent to 8.5 percent in 2018-19 to 2019-20. Mr. Yadav attempted to ease fears, stating that he is pleased to announce 8.1 percent at a time when a 10-year fixed deposit with the State Bank of India earns little over 5.4 percent and savings products such as the Public Provident Fund yield between 6.8 and 7.1 percent. The EPFO's investment revenue increased to Rs. 76,768 crore this year, up from around Rs. 70,000 crore in 2020-21, when it had paid out 8.5 percent to EPF accounts. The EPF corpus increased from 8.29 lakh crore to 9.42 lakh crore over the year. Since 2015-16, the EPFO has invested at least 5% of additional EPF inflows into members' accounts in the equities markets. A minimum of 45% of fresh accounting is invested in government securities, with a maximum of 65%.

One of the most awe-inspiring moment in a woman's life is becoming a mother. There are several health concerns that might place a strain on your finances and need hospitalisation expenses around the time of delivery, which can be expensive. Pregnancy insurance can shield you from financial ruin in such a situation. Pregnancy Insurance- The term "pregnancy insurance" refers to a specific type of policy that covers you financially when you're expecting a child. It provides financial security in the event of a miscarriage while also covering the costs of hospitalisation following a natural or surgical birth. When a baby is born, it is covered for a certain period of time afterward, rather than only the day of birth. Adding this policy to your current health insurance plan is a cost-effective option that provides appropriate financial protection for hospitalisation and delivery fees. The following are some of the advantages of purchasing a generic pregnancy insurance policy Coverage prior to and following Childbirth- Pregnant women are routinely seen by their doctors for routine care. Health checks and medications will be necessary even before the baby is born. After she gives birth, these medical checkups and treatments will normally continue. From 30 days before the due date to 30 to 60 days following delivery, pregnancy insurance covers all medical expenditures for both the mother and the baby. Cost of Delivery- With the aid of trained doctors, delivering a healthy baby may be extremely pricey. If the birthing is natural or by c-section, this sum will be covered by pregnancy insurance, subject to certain sub-limits that may change. When natural childbirth is not safe for the woman or the baby, a surgical delivery may be necessary. A substantial  operation is necessary to deliver the baby in this case. Many insurance policies will cover the expense of a caesarean section, even though it is substantially more expensive than giving birth by C-section. Coverage of vaccinations for Child's Welfare- Pregnancy insurance coverage may even cover the baby's required vaccines, depending on the health plan. Under the maternity insurance blanket, polio, diphtheria, hepatitis B, whooping cough, hepatitis C, and measles vaccinations are often covered. There are many expenses associated with childbirth, prenatal care, and the first year of a child's life that are covered by pregnancy insurance. Between Rs. 50,000 and Rs. 1 lakh, several Indian states charge for maternity care. The experience of the medical personnel, the hospital's brand name, and the quality of the healthcare facilities all play a role in determining these rates. Because it assures that the woman will have greater access to health care, pre-purchasing pregnancy insurance is a wise decision.