Now pay your utility bills online and get these advantages

The internet is a wonderful place offering consumers numerous advantages when it comes to making payments of various sorts. Be it your bills or purchases for a variety of purposes, online facilities offer great alternatives to standing in queues at the bank for the same. Utilities like DTH, gas, electricity and others can be paid with ease using online modes. Internet banking apps help further with the transactions by offering some amount of cashback. Utility bills can be paid one after the other using a safe e-banking app that lets you connect your bank account to make payments. Mobile internet banking saves you the trouble of moving a muscle, as you sift through your dues and pay them efficiently from the comforts of your home.

Electronic security ensures the safety of your identity and prevents theft or misuse of any confidential information to a large extent. You can pay your utility bills on time with a tap on your screen. You can also check out and make use of many other features in correspondence with your utility bill payments. Most banks offer this facility that does not require you to engage in unnecessary interactions or hassles for the most part of your day and if you are someone who likes to stay at home or does not have the time to run around the city, utility bill payments from your phone with a fast internet connection is the ideal option for you.

Listed below are the advantages of paying utility bills online:

1. Simple and easy to access - It is easy to make payments using your phone, laptop or desktop as it takes just a few clicks. Everything about the procedure is explained on the corresponding website in detail, and within a few minutes, you can check off your dues one after the other and save yourself a great deal of time and effort by availing the boundless opportunities online.

2. Security ensured by all means - Most transactions through mobile banking or e-banking apps require a verified OTP that is sent to your mobile phone linked to your bank account. This double safety measure ensures no sort of identity theft or misuse, giving you the ease of convenience and security of your information and money at all times.

3. Keep a tab on all your expenses - Online modes of payments let you keep yourself in check by displaying all your recent transactions, dues, expenses and other information in one frame. This lets you realise when to spend and when not to, how much to refund your account with to carry on with further payments, and how much money to transact to carry on with your day.

What are the advantages of online credit card bill payment?

It is a noticeable trend in which many apps and websites around the globe offer a mode of payment via net banking apps or credit cards. Credit cards are convenient to use and offer a secure and fast mode of transaction for a variety of purposes. With that also comes the headache of making credit card bill payments every time, especially when you are more used to carrying bundles of cash along with you instead. This ensues standing in queues to get through the payments or having to face bank officials who are overworked and tired.

But in today’s times, you can pay off these bills online from the comforts of your own home. Be it this or any kind of bill, all can be made easy with one click on your phone and a fast internet connection. You do not need to move a muscle and can avoid the hassle of interacting with people for the same. Even while you are travelling, you can pay credit card bills and dues with ease. You can also keep a track of how much is left in your card and issue some more cash to refill your card for future use.

Listed below are the advantages of using online modes to pay off your credit card bills,

1. Convenience by all means - Whether you are planning to stay at home or to go forward with a long vacation and your credit card bill is what's holding you back, you can be rest assured that it will get cleared with a tap on your mobile screen. This is the first and foremost advantage that guarantees ease of usage and convenience as it lets you clear off your dues wherever and whenever. You can pay your credit card bill through the net banking procedure and never have to worry about stepping out of your comfort zone for the same.

2. Go Green - Paying bills online saves your time, money and even paper. There is no need for you to fill up slips for the same as you can go online and do it to clear off your payments. Digitally trusted, credit card bills can be paid online, thus ensuring a better environment for you to live in.

3. Faster Processing - Paying bills online also ensures a faster mode of having your funds credited to your account with ease. Online procedures are generally quite fast and you can be assured of receiving or giving money within a few seconds, rather than having to wait in line at the bank for the same.

Did you know you can enjoy the convenience of bill payment online?

One of the revolutionizing steps being taken in today's times has to be the convenience of online banking facilities. Rather than keeping your cash at home, or making multiple trips to the nearest ATM or your bank, mobile banking apps provide users with the option to swipe through different accounts with one go. Accessing money becomes easier than ever and much more convenient and safer. Online bill payments, frequent transactions, money transfers and loan repayments can be made easy with the help of your phone and a fast internet connection.

If you have to pay some fees, or pay your electricity bill, DTH, metro and other bills, a bill payment app can be downloaded or the website pertaining to the specific organization can be accessed to make the bill payment. You do not have to worry about running to different places by virtue of this integrated interface. People are no longer hesitant regarding paying bills online. It is a safe procedure and ensures security against identity theft. Online payment does not overbill the consumer either and is a trusted method as more and more people today are shifting to this mode for their credit card, mortgages, utility rents and more.

Mentioned below is a list of reasons as to what makes the online process so convenient,

1. Speed and Safety - The ordinary check and stamp method is no longer appreciated by consumer who can do the same by a simple click on their bill payment apps. Monthly payments can be made through the online process, without missing any due date. You can also keep a track of the amount of money paid last month, or check if any payment is left unattended. Last minute payment is also made easy with online payment as it just takes a minute to finish all your tasks.

2. Link your credit card to pay bills - Credit card payments are easier for all your bills. Linking your credit card to a payment app ensures extra security as the transaction requires you to enter a verified OTP that is sent to your phone number to go further ahead with the transaction. The added security ensures the safety of your identity and also, in some cases, gives you a little cashback if the offer exists, depending upon your bank.

3. Benefit for the environment - The online procedures give the user as well as the society the benefit of saving the greens, as it does not require any paper. The process is digitally fit and saves money to buy stamps or issue slips.

Reasons why you need mobile banking now?

In this fast-paced world of technology, banking has become a revolutionary experience. Now more and more ways have come that make banking easier and one of them is the facility of mobile banking. These days’ consumers are opting for the easier method of mobile banking for bill payments, loans and other purchases. All you need to do is download a mobile banking app related to your bank account and avail all the facilities on the interface. Mobile banking apps also let you keep a track of your expenses or sift through multiple accounts, all at one time.

Some consumers however remain worried about theft of information or breakage of security by these online means. However, you can be assured about the safety through IMPS or other modes since most banking apps guarantee the same. The benefits of banking online have been in existence for years now and have crossed the hurdles of theft or misuse with ease. Following are the list of reasons as to how and why this facility is becoming more and more popular in today’s times.

1. Ease of Access - Accessing your account is easier than ever. From running errands to bill payments or purchasing any item online, you can avail your banking facilities on-the-go and avoid the hassle of staying glued to the ATM or bank. It is as easy as picking up your phone and accessing your account, whenever, wherever. Just a few simple clicks do the magic.

2. Convenience on the go - You can make use of your free time by doing other things instead of running to the ATM. With the ease of the internet, online banking offers convenience at your disposal. If you are someone who needs to perform transactions or money transfers on a daily basis or make online bill payments regularly, this facility would pose as a blessing for you!

3. Free of cost - Ever heard of the saying, ‘the best things in life come free to us?’ Online banking is free of cost and does not require any additional charge. Just download the app and link it to your bank account. Your phone provider charges might be applicable.

4. Decisions made instantly - Some banking apps offer you the facility to make decisions instantly, by offering approvals on the go. This means you do not have to wait for a few days more to get important information, pertaining to your account, approved. Thus, this service facilitates your business and lets you be at ease while making important decisions.

To avail these offers or acquire more information regarding the same, you can also get in touch with your bank.

How Can Internet Banking Benefit You Today?

Almost the entire world has shifted base to the virtual sphere for all their needs these days. With the internet at our disposal, nothing is impossible anymore- be it shopping, purchasing tickets, shopping for groceries, ordering for food, booking cabs or calling for home doctors. The internet has made our lives so much easier.

Added to this is internet banking; a blessing in disguise, internet banking has been one of the most beneficial aspects of internet services. However, the larger section of the society still prefers the traditional mode of banking where they physically go to the bank to get their needs sorted.  This is because, either they are technologically handicapped or if not, then they are sceptical. To this section of the audience who are yet to explore the wonders of internet banking, this article is for you.

To begin with, the bank services on the internet are divided into two categories namely;

• Transactional- Transfer of funds, payment of bills, loan application, loan transactions.
• Non-transactional- This involves activities such as requesting chequebooks, checking online statements, updating your details and stop payments.

The benefits of internet banking are numerous, some of them being;

• Opening an online account is easy-peasy and hassle-free.

• Avoid the hassle and discomfort of standing in long queues; avoid the headache of keeping track of truckloads of bills and other unnecessary pieces of paperwork.  Enjoy the benefit of viewing all your transactions online.

• Internet banking is available round the clock. You can use it whenever you want. If there is a sudden emergency and you immediately need a huge amount of cash, internet banking is your easy solution. Conventional banking is restrictive because banks remain closed on Sundays and other public holidays.

• Internet banking is super quick and super efficient. The transaction process from one bank account to the other happens at lightning speed. Also, managing more than one account had never been so easy before.

• Internet banking is highly beneficial in keeping a constant watch on your bank account. This all-time monitoring benefit helps to prevent the chances of any fraudulent activities.

• Internet banking also gives the banks a solid platform to recommend their best products and quality of service.

• Many senior citizens find it difficult to physically go to banks and sit or stand on a regular basis because of their various health ailments. For such customers, internet banking is a godsend facility.

As listed above the benefits of internet banking are many. There will be cons as there is to every situation but what you need to consider is if the pros outweigh the cons for you specifically. Internet banking has definitely lessened the degree of a hassle for many people, and more and more people are opting for online banking services as the years go by.

What are the benefits of applying for business loan online?

Business loans are indispensable to the growth of any establishment, big or small. A bank loan for business can be harnessed to boost up the inventories, to procure more business apparatus, to finance new ventures, to allow seamless administration and to fulfil a plethora of other miscellanies that an up and running business needs. Not only that, a business loan for new business could be of great advantage as it will help in giving the business a head start.

Business loans can help us in achieving our dreams and what more the process of acquiring a loan can become absolutely hassle-free if you could apply for it online. With this, you do not need to make an appointment with an agent. Instead, you get to know all the details pertaining to the loan on your mobile app or your device at one go. So, without much ado, let’s give you an overview of what are the benefits of applying for a business loan online.

1. Eligibility criteria: What are the criteria to apply for a bank loan? Know whether you fulfill the requirements, instantly by just filling up an online form. It will take only a few minutes and you are spared the pain of going through a gruelling interview with the bank representative to know whether you make the cut or not. And of course, that happens only after you have briefed him/her your thorough details, a lot of which would not go down with him/her on the first attempt.

2. Know the pros and cons: You probably would not want to apply for a business loan without knowing the pros and the cons. Now, different banks have different sets of features related to loans. After you apply for a business loan online, you can check the pros and cons and compare them with the benefits provided by other banks. Then you can choose a bank that best suits your requirements. By availing the services online, you can do all of these on your own and from one place. In short, get the details from various portals before you choose that single portal which fulfils your business needs.

3. Be self-dependent, get to know all the miscellanies:  What are the major things that you need to know about before applying for a bank loan? These include interest rates, processing fee, tenure, whether the bank is providing Dropline overdraft facility and other such miscellanies. Know everything by just applying online. The business loan app is just a breath away, just waiting there to serve your needs.

Two Wheeler Loan: Why you need to apply for a loan online

Are you planning to get a new two-wheeler? Does the cost of the bike or scooter seem just out of reach for you? Do not fret as you have the option of taking a two-wheeler loan from any good institution. This means that you can purchase the bike of your dreams quite easily without having to go beyond your budget.

While you can visit the lender’s office to get your two-wheeler loan sanctioned, this procedure takes quite long and you also end up wasting some of your money in the process. It is best to apply for the loan online, which would make the entire application process much smoother and streamlined.

Here is a look at some of the ways in which an online bike loan application will benefit you.

1. Saves time and money
With the online procedure, you do not need to manually visit the bank or the lender’s office for the application. This office may be at some distance from where you reside, which would mean you have to pay a hefty conveyance fee to get there in the first place. However, when you apply online, all you need is an internet connection and a smartphone or computer. You can apply for the bike loan quite easily, without experiencing any hassle.

2. Comparison of rates
When you manually visit the lender for a loan application, you are less likely to compare the rates offered by other lenders. This means that you may not get the best deal and may end up paying greater interest on your loan than you really need to. However, when you apply online, you have the opportunity to compare the interest charged by the various other organizations. You are free to choose the lender you like and make an informed decision regarding the same.

3. Calculating the exact EMIs
Two-wheeler loan calculators are specialized tools present online. These tools allow customers to determine how much they would have to pay each month, if they do decide to sign up for such a loan. To calculate the same, all you need to do is enter the principal loan amount, rate of interest charged and the tenure of the loan. The calculator will show you the exact EMI amount that needs to be paid.

Consider these factors while applying for a loan and you will understand why online application is the best option out there. Check the interest rates carefully before applying for any loan and have a talk with the representative from the lender’s company.

What are the advantages of applying for an education loan online?

An education loan is often vital in order to attend the best colleges and earn the best degrees. Since many courses are only offered in foreign institutes and universities, your children may need to go to these places, which can further increase the overall cost that you need to bear. Like all other loans, education loan applications can be made online. In fact, there are certain advantages in applying for the loan online.

Advantages of education loan application online

Here is a look at some of the benefits of online education loan application:

1. The entire process becomes absolutely hassle-free, as you do not need to visit the bank branch and stand in a queue to get the form. Instead, you can get the online form from the site of the bank itself, and then fill it up and submit along with all the other necessary documents. Apart from saving time, the online application also saves the conveyance money that you would need in order to visit the bank.

2. Due to the greater freedom offered by this online procedure, you are free to make your own decisions on the loan amount and you would not be goaded or forced by bank employees to take a greater education loan than what you really require. Apart from this, you can check out all of the loan options, so that you can determine which loan is best for your child’s education.

3. An important factor to consider before applying for any loan is the interest charged for the same. There can be a substantial difference in the education loan interest from one bank to the next. So, in order to get the best deal, you need to perform a distinct comparison of all the rates offered by the banks. In a manual education loan application, this is rarely possible and people neglect this step. However, for the online application, you can easily check out the rates of all institutions and take the loan accordingly.

4. Most banks and money lenders now ask for the credit score of the applicant. This is a scale of how good you are at repaying loans and paying off credit card bills. The higher the score, the easier it is to get a loan. In the online application, you can easily check your score using certain tools on the internet.

Do not forget to check the education loan interest in you do apply for the same online. Make sure you would be able to repay the same with ease.

Take advantage of these benefits of gold loan when you apply online

Gold loans have been quite popular in the country as a majority of Indian households owns this valuable metal that can be used as collateral. This is one of the many reasons why we consider gold to be such as an asset. Now, add to the gold loan the convenience provided by online banking and there you have a winner of a combination. Most of the major banks have come up with a plan in which you can apply for a gold loan online and thus enjoy the bst of both worlds.

Why should I take a Gold Loan?

The benefits of taking a gold loan are multifold:

 Transparency
The commercial houses which are entitled to give gold loans have a strict policy of Transparency. They don’t indulge in any hidden charges whatsoever. All the terms and conditions are straight forward and all the information is provided clearly.

 Low interest rates
The interests on gold loans are reasonable. The commercial houses uses gold loan EMI calculator. This calculator helps you find out how much EMI you would need to pay for the borrowed amount against the gold.

 Flexibility in repayment
Commercial houses have a policy of flexibility with the EMI schemes. A consumer can take an additional loan after a certain period of time simultaneously with the current loan amount and if they want to clear off their dues, there are no extra repayment charges.

 Doorstep services
The commercial houses aims at maximizing customer care facilities. With a sensitive asset like gold, the commercial banks/financial institutions offer doorstep services to ease out the trouble. 

Procedure:

 Meeting the eligibility criteria
The eligibility criterion of a gold loan is not stringent at all. If a person who is at least 21 years old with a valid identity proof can prove his/her claim of owning the gold, he/she will be eligible for a gold loan. 

 Reserve rates
Financial institutions have a flexible reserve rate against gold. This is the rate which deducts a certain amount from the value of the loan because of fluctuating market risks and incase if the consumer fails to pay the amount, the loss needs to be accounted for. 

 Quality inspection
Finally the loan is sanctioned when there is an approval by the authorities about the purity and weight of gold according to which the loan is sanctioned for.

Other advantages of gold loans:

 Security
Gold is an asset which can be stored for future use, it can be liquefied whenever the owner deems so. The rates are fluctuating and there’s a possibility that in the future the value of it might double. The gold that is mortgaged can be used over and over again for a long period of time.

 Low risk
Being emotionally attached to a gold ornament in a household, the borrowers end up either pre paying the amount or clear all EMIs on time which is an added advantage.

 Speedy sanction
Gold loans do not require days and months to get sanctioned. It’s only a few minutes job. No long procedures are required. The complete process of approval and sanction of the loan depends on the quality of the gold provided and its verification.

Car Loan: Why Applying A Car Loan Online Will Benefit You

Buying a car is one of those special occasions that call for a round of celebrations. It is a grand affair not only because it signifies a certain degree of stability in life but also because a lot of investment goes into it.

An investment that is just not just a one-time thing but something that is life-long. You can make the process of your car investment a little smoother by opting for a car loan. If you are only ‘thinking’ about taking the loan online, then let us tell you that there are many benefits of carrying out this process online. Some of these are;

• First and foremost, a car loan enables you to pay monthly instalments instead of making a one-time payment. Many banks will give you hundred percent financial help on the ex-showroom cost. Plus online loans give you the benefit of making a quick application. This means that you can buy your dream car right away.

• When you say online car loan application, the first thing that pops into your mind is ‘convenience’. The online process is simple and hassle-free; you don’t need to wait in long queues and go through hours and hours of paperwork. You can fill out the online car loan form while sitting comfortable on your couch or bed with a steaming cup of hot beverage beside you.

• When you apply for a car loan online, chances are that it will get approved faster, as most bank services that are online based are less nitpicky when it comes to the point about credit scores.

• When it comes to car loan interest rate, it is much simpler when the application process is carried out online. An online car loan interest rate will be lower and will also give you the chance of negotiation. And since online loan services tend to bother less about credit scores, the possibility of a low credit score affecting the interest rate will also be less.

• Online loan applications mean that there will be 24*7 hours service. So, in case you make an impulsive decision to get a car by the end of the week with the help of a car loan, you should ensure this happening online, as it will save time, save you hassles and will also end up getting the car you ‘actually’ want instead of settling for a compromise.
The points stated above are only a few of the benefits that have been mentioned that will act as your starter pack for applying for that car loan. The thought of a tricky car finance process shouldn’t deter you from buying something so important in your life.

Why investing in NRI accounts will benefit you

Non-residential Indians can invest in India just as easily as the residents do. Not only is the investment easy to manage, but it also offers a range of benefits. If you are an NRI, you should be aware of the benefits that non-residents get when it comes to investing in India. Here are some advantages-

1. No taxes levied on interest

If you are an NRI signed on to either a NRO or NRE account, you should start investing in mutual funds. Currently, most banks offer around 9% interest on these investments. While the rate of interest is attractive enough, the real bonus is that the Government of India does not levy any taxes on the interest earned from these investments. This means that you can keep the entire amount to yourself.

2.  Profit in the currency of your choice
 
If you have a repatriable NRE account or a non-repatriable NRO account, you can convert the income from your investment into the currency of your choice. For instance, if you are residing in the US and are investing in mutual funds in India, you can directly earn the profit in US Dollars, which makes the entire process much simpler and streamlined.
However, keep in mind that for mutual fund investments, the principal sum needs to be in Rupees and not in any other currency.

3. Equity investments

The Reserve Bank of India has noted that all NRI accounts can invest their money in Indian equities. However, to do the same, they need to operate either an NRO or an NRE account. You would also need to open a DEMAT account, along with a trading account from a SEBI registered brokerage.
While there are certain limitations for NRI equity investors, these investments still, provide a great method to earn quite a bit of profit.

4. Power of Attorney

After the initial investment capital is paid, you as an NRI account holder can grant Power of Attorney privileges to family members or relatives residing in India. The bank will contact this PoA holder in case of any requests or enquiries. This practice can severely reduce your stress of managing the investment from abroad. Your PoA contact can also make beneficial decisions in your stead in such cases.

Apart from these benefits, individual banks may sometimes offer special discounts or interest rates for NRI investors, which make the entire prospect more attractive. Make sure you compare the rates offered by the different banks and choose the one, which seems the best suited to your needs.

How can you benefit from the foreign currency account?

Foreign currency account is a type of account that allows the account holder to keep foreign currencies as well as currency from the home country. This account can be maintained in an off-shore country as well as in the home country. The foreign currency account can be pretty much maintained in the same way as any regular account. There are many benefits of a foreign currency account. These are:

• The foreign currency account does not levy any charges on the non-maintenance of the quarterly balance that needs to be managed on a minimum basis.
• The foreign exchange that is earned as a result of exporting goods, honorarium and royalty can be deposited in a foreign currency account.
• When someone who is not an Indian is visiting India and decides to gift someone in monetary value, the foreign currency can be of use at this time.
• One can make money transfers from their NRE account.
• The foreign currency account can be beneficial when presenting someone with gifts at the time he or she is making a visit to any country outside  India.
• The foreign currency account can be useful to carry out short-term requirements of cash-flow.

The permission to open, hold and maintain a foreign currency account was a very important step on the part of the Reserve bank of India. It allowed for liberalisation of facilities pertaining to foreign exchange matters.

The Foreign Currency Account puts up the following eligibility criteria:

• All those who are residents of India are eligible to open a foreign currency account.
• The money that the account holder wishes to keep in the account can be a form of the pension money or any other kind of monetary value received from the employer outside of India.
• When something is received as a gift or is inherited from someone who is outside of India.
• When money is obtained after converting assets from outside of India.
• If the proceeds of the concerned assets where in foreign currency value.

Foreign Currency accounts are especially useful for those people who are in business trade. It allows them to save money in different forms of currency. This makes conducting business with clients from different nationalities and backgrounds so much simpler and convenient. Perhaps one of the biggest perks of a foreign currency account is that it helps you to avoid the fees levied as a part of the conversion process. This saves money and cuts down on hassle.

What is the difference between telegraphic transfer and SWIFT?

You may have heard the terms SWIFT and telegraphic transfer from investment bankers and traders. However, you may not be aware of what these are and how the two differ. So, before listing out the differences between the two lets understand what SWIFT and telegraphic transfer mean.

What are SWIFT and Telegraphic Transfer?

Swift stands for Society for Worldwide Interbank Financial Telecommunication. This is a service offered to banks and other financial institutions all over the world. Through Swift these institutions can freely and securely send transaction information from one place to the other. It is essential to note that SWIFT is not a method of transferring the money itself, but the information regarding the funds.
Telegraphic Transfer or TT is a method through which interbank funds exchange takes place. Prior to the introduction of the telegraphic transfer, banks had to send a direct Telex message to the destination bank in case of fund transfers.

Differences between SWIFT and telegraphic transfer

• SWIFT is not a fund transfer system. It merely lets institutions send electronic information regarding transactions. Telegraphic transfer, however, facilitated the transfer of funds from one bank or institution to the other.

• SWIFT is an electronic process which does not require wireless connections between the two institutions. Therefore, it works similarly as mobile phones do. TT, on the other hand, required telegraphic wires and the use of Telex to function. Both the beneficiary bank and the sender institution needed to have the telex system handy.

• SWIFT is a handy tool at present, and most traders use it in case of transfers and transactions. This messaging service came into existence after the 1990s. Prior to 1990 however, banks relied on the Telex system, which involved telegraphic transfers. Therefore, telegraphic transfers have almost ceased these days, with more and more banks opting for simpler transfer methods.

• SWIFT is far more secure than the older telegraphic transfers. During the TT days, there was a higher risk to the institution's money than there is now after the introduction of the SWIFT procedure. This process does not transfer the funds, but instead sends the payment orders that must be settled.

SWIFT has quickly replaced the older Telex system and in just 25 years, most banks have stopped the telegraphic transfer of money. Simpler forms of transfer have taken its place, which are both more convenient and safer.

Redesignate your account to NRO account when leaving India

Are you thinking of relocating to a foreign country and becoming an NRI? Have you transformed your savings account to an NRO account? If you have not done it yet, you should.

What is an NRO account?

A Non-Residential Ordinary account or NRO is a savings account for people who are Indian nationals, currently categorised as a non-residential Indian. In such an account, you can keep money in the Indian and foreign denomination.  

Here are some reasons and features why you should switch out your accounts before leaving India.

1. NRIs are not allowed to keep normal savings account

You are designated as a non-residential Indian if you stay abroad for more than 182 days in a fiscal year. In such a case, you are not allowed to operate a savings account in India. So, it is best to change your savings account into an NRO savings account.

2. Making payments in India

If you are an NRI and operate and NRO account, you can easily make payments in India from your current place of residence. This feature is useful in case you have EMIs to pay back in India or other financial responsibilities to take care of. An NRO account will ensure that you can freely make these payments without having to transfer funds, which would act as an extra burden on you.

3. Essential in case of income source in India

You may have moved to a foreign country, but you may still have a source of income inside India. This can be a monthly rent or income from a business establishment. These funds can only be saved through an NRO account. This again saves a lot of hassle and lets you keep all of your earnings without needing to lose some of it in transfers.

While NRO accounts are quite advantageous if you have an income source in India, the same is not that beneficial for all. In fact, people who do not have any income or savings in their Indian accounts, they can transform their savings account into an NRE account. An NRE account only allows you to deposit foreign denomination.

There are several other financial matters, which you should handle prior to changing your status to NRI. These changes will make the transition process much simpler for you to handle.

After your status has been updated to NRI, remember that any savings in your NRO account will likely be taxed as per the standard. However, foreign currency kept in an NRE account cannot e taxed in India.

NRI Account: Which is the best?

“Which account should I open?” is the first question that crosses the mind of a NRI who wants to open an account in any of the Indian banks. There are specifically two kinds of accounts that NRIs can opt for in India – NRO (Non-Resident Ordinary) and NRE (Non-Resident External).

Both these accounts provide different features and facilities. The choice of opening either of these strictly depends on your need/purpose. All prominent banks across India offer the facility to open both these accounts as per your requirement.
A few prime differences between an NRE and NRO account are:

Mode of deposit – The initial difference between NRE and NRO account lies in the mode of deposit. You can only deposit foreign currency in an NRE account while only Indian rupees can be can be deposited in an NRO account.

The difference in taxation – An NRE account in India is tax-free. On the other hand, the credit balance, as well as the interest earned in a NRO account, falls both under the specific income tax bracket which is 30% as per the Income Tax Act 1961, as well as wealth and gift taxes as applicable.

Joint account holding – NRE accounts can jointly be held with another NRI, but you cannot hold one with a non-resident Indian. An NRO account can be held both with an Indian resident as well as an NRI as Section 6 of the Companies Act 1956 states.
Deposition of rupee fund generated in India – Earnings of an Indian like rent, salary, dividends etc. is strictly allowed to be deposited only in an NRO account. An NRE account does not permit the deposition of such income.

An NRE account is a rupee-denominated. You can only make a deposit in the can only be made through inward transfer of funds. Deposits are compulsorily made through foreign currencies, which get converted into Indian rupee during the deposition process. The rate of interest to be paid is determined by the bank itself.

In case of an NRO account, NRIs are free to convert their existing savings account into an NRO one, with just their status being changed from a resident to a non-resident.

If the bulk of your net income is accumulated in India and you wish to take care of it in the country itself, you can always choose to apply for an NRO account. Nonetheless, an NRE account is the best option when it comes to transferring foreign income to India and evading any kind of tax liabilities for the same.

Are you aware of these features about offshore banking?

Offshore banking refers to operating an account outside the operator’s country of residence. So, if you have a bank account in Switzerland while staying in India, it will be referred to as an offshore bank account. Generally, these offshore accounts offer greater privileges such as tax benefits and more savings. This is why several people prefer offshore banking to an account in their own country.
Here is a look at some of the features that are prevalent in case of a good offshore bank account.

Multiple currency savings

Some offshore banks allow you to operate separate accounts for different currencies. For instance, you may have an income source in Australian Dollar and another in US Dollar, you can operate two accounts to save these currencies. This saves you from converting the currencies and losing some of the money in the process. These accounts also offer you the ability to change the currencies whenever required or whenever the exchange rates seem preferable.

Accessing the account

Accessing an offshore bank account is much more difficult than a domestic one. This is because you actually have to be physically present at such a bank to access your account. Most offshore banks are quite squeamish about security protocols and do not allow for simple netbanking or online transfers. This can be quite a hassle for many clients.

To avoid this, try to find an international bank with a global presence. This will ensure that you can access your account from ATMs no matter where you are in the world.

Lack of trading

Most offshore banks lack the trading features available in other banking sectors. This is because a large majority of clients of these offshore accounts does not engage in trading or stocks. So if you are a trader, try looking for an offshore bank, which offers the tools needed to perform stock trading.

Free money transfers

Some offshore banking firms allow customers to transfer funds from the account without paying any additional fees. This can be quite useful in case you have a relative or a business abroad and need to transfer funds frequently for the same. However, not all offshore banks offer the same benefit to account holders.

Wealth management services

Not everyone has the means to open an offshore account. Those that do are comparatively wealthy and deposit large sums of money inside the account. So, a team of experts and management staff at the bank should aid you in reaching your financial goals. Ensure that you pick such a bank when trying to keep money offshore.

If you are looking to open an offshore account, ensure that you keep these features in mind.

What are the factors you will need to consider when sending money to India?

Sending money overseas always requires a good bit of know-how and research. If you are an Indian looking to wire money back home from a foreign country, you too need to be aware of quite a few things. This will help you determine the best method of transfer, so that you can send the maximum amount without having to clear exorbitant sums first.

Here are a few factors that you should keep in mind if you are sending money to India from a foreign country.

Exchange rates

Exchange rates are constantly fluctuating, which can greatly affect your money transfer. For instance, consider that you are residing in the United States and want to initiate a money transfer to India from there. On the day that you decide to transfer the funds, one US dollar may be worth Rs. 65, while the very next day, the exchange rate can change to Rs. 67 per US dollar. This means that if you transfer the funds on the second day, you will end up transferring more money than you would if you had initiated the transfer on the first day.

Transfer fees

Checking the foreign exchange rates alone will not suffice in you getting the best transfer deal. In case you are sending money to India, you need to keep an eye on the transfer fees posted by your bank. Each bank offers different transfer fee options, some high and some low. Check with your bank on this matter and try to get the lowest transfer fee possible.

Research

There are literally hundreds of options today when it comes to fund transfer. However, you need to conduct a research on your own to determine the best option for you. Some of the agency offers speedy transfer, while others allow you to transfer at lower fees.

Urgent transfers cost more

If you are looking to transfer the funds in a day or two, you would need to spend quite a bit on the transaction fees. However, if you can wait for 4-5 days for the transfer to get processed, then you may get away with a much lower transfer fee. So, try to delay the transfer itself if there is not an urgent need for the same.

Keep these pointers in mind for money transfers to India and you will likely be able to get the best deal for the same. Remember to keep the transfer details handy in order to check with the beneficiary whether they received the same amount or not.

Rural Finance: Current updates set for 2018

India is primarily an agricultural country. Most of the trade and income of the country depends on the produce that it sells to other nations. Therefore, India needs to have a strong financial presence in its rural areas, where agriculture takes place. This is why the government is taking steps to increase rural finance and improve the economic condition of the families living in these lands.

Currently, a number of schemes have been put in place to improve the rural finance. You should be aware of what these schemes are and how they can affect the entire country in the long run.

Digital India

The Digital India initiative was launched back in 2015, but its effects are being felt even now. Through this scheme, the government is trying to spread education and literacy by introducing the internet into even the remotest corners of the country. Most rural regions did not have internet connectivity before this plan was introduced, but since then thousands of farmers have been educated about the importance of the internet.

This program may not sound too important for the rural finance growth, but with the help of the internet, agriculture can improve vastly and increase the productivity of the country.

Unnat Bharat Abhiyan

One of the greatest obstacles in the way of financial growth across rural India is the absence of proper educational facilities there. Under the proposed Unnat Bharat Abhiyan, the IITs and NITs will come together and establish institutions in villages and other rural areas to increase the quality of education of India’s farmers. This is vital for the upliftment of the rural regions in India.

However, this scheme is yet to be made official. Hopefully, the same will come into effect with the 2018-19 budget.

Beti Bachao, Beti Padhao yojna

Most young girls in rural India are not educated properly and married off at a young age. However, with this initiative, the government will propagate the education of the girl child. When these girls grow up, they can contribute to the rural economy and in turn the Indian economy as a whole.

Easier Loans

The government is also planning to make the money lending procedure simple and affordable in villages and other rural areas. These loans will be managed by the government banks and will be given according to the income of the family in question. This will decrease the burden of paying huge interests in case of loans from microfinance and local moneylenders.

If you reside in the rural regions, keep your eyes on this year’s budget, to know more about the schemes and finance policies being introduced. This will help you assess how the Indian government is trying to propagate rural growth.

Why online payment services will be a popular option in the coming years?

Online payment services have been in vogue in the western countries for quite a few years now. However, it has recently started gaining traction in our country. Our government has been pushing for a digital and cashless economy ever since he has come to power. So, just over a period of 2-3 years, a number of payment services have come up that allows individuals to conduct business in a transparent and fluid manner. There is no doubt as such that online payment will become an indispensable part of our lives in the coming years.

The reasons why these services will be a popular option in the near future are:

• You can make payments easily and in a hassle-free manner. Whatever service you are paying for, you are able to do so from the comfort of your home and at any time of your convenience. You do not need to rush to a shop or to anyone to complete the transaction.

• Online payments are generally more secure than receiving or sending money via cheques or by demand drafts. The person who is liable to get paid gets his/her payment instantly and he/she do not have to face the inconvenience of going to a bank and getting the cheque encashed.

•  It is very convenient to set up an online payment service based on a debit/credit card system. A person can set it up by following a few easy steps and start sending or receiving money almost immediately. Service providers are also compet
ing with each other to offer affordable plans with almost negligible setup costs and equally low transaction rates.

• When a person runs a business that requires his/her customers to make payments at regular intervals, it will be prudent on his part to opt for online payment service. He/she will not have to go to the customers to collect the payments and also to remind them of their upcoming payments. So an online portal lets the person collect his/her dues electronically without facing any hassles as such.

• The availability of an online payment system at any shop or any other place increases the credibility of the place. A person who is buying anything or any service may not carry enough cash to make the payment. Hence, it is important to keep the online option open.

• Big corporations, as well as individual entrepreneurs, have understood the importance of displaying their products or services online. This will enable them to reach a wide range of customers and find a market for their products. Customers who otherwise could not have visited the store to purchase the services or product can now do so by making online payments.

India's top online platforms for prepaid mobile recharge

Remember the days when you used to stand in long queues for paying your monthly expenses such as landline bills, water bills, gas bills, electricity bills and mobile phone bills? Bid those days goodbye, because the new generation is all about speed and convenience. For making your payments or online mobile recharge, you just need to download an app, choose your service provider, put in the amount you wish to recharge and wait a few minutes. It is as simple as that!

By just clicking a few buttons on your phone you can save time and hassle of going to a store and recharging your phone. With smart phones becoming more important than luxury, recharging online is also a cheap option because you can often find many offers and discounts coupons on various apps. The best part about recharge applications and websites in India is that, it can be used for almost all service providers throughout the country. So even if you want to recharge several phones with different service providers such as Airtel, Vodafone, Aircel, Reliance, Idea or other providers, you can easily recharge at the comfort of your home.

Some of India’s best apps for prepaid mobile phone recharge includes:-

Paytm

This is a very popular e-commerce website which was launched in 2010. It operates under One97 Communications. Other than online mobile recharge, you can avail a lot of services such as paying electricity bills, paying DTH bills, booking cabs, booking air tickets, booking bus and movie tickets, etc. There is no dearth of customer friendly services offered by Paytm. This app boasts of a staggering number of 75 million application downloads and approximately 150 million wallets at present. Paytm is an acronym which reads ‘Pay Through Mobile’.

FreeCharge

FreeCharge is an application acquired by Snapdeal in 2015, which provides facilities such as online recharge of mobiles, data cards, DTH, postpaid mobile and prepaid mobile. It is by far an extremely successful e-commerce sector in India. FreeCharge even allows its users to receive and send money through WhatsApp and provides an online wallet too. The amount paid during recharge from this app can also be redeemed at times, as it provides shopping coupons of top retailers such as Puma, Croma, Cafe Coffee Day, Shoppers Stop, Barista and McDonalds.

 PayZapp

This application makes not only online recharge of mobiles easy, but also provides services to pay your bills, conduct mVisa payments, etc. This app by HDFC Bank is your one stop solution as it offers a variety of services with just a click of a button. You can also send or receive money to any contact of your phone, provided they too have PayZapp installed. This app is considered possibly the best online payment app for the new generation.

All you need to know about consumer durable loan

After all these years, your lifestyle could do with an upgrade and a consumer durable loan is the best way to get it done. With IPL season round the corner, you might want to cheer for your favourite team while watching it on a large screen LED TV. Or you might want to relieve yourself from the chore of washing clothes manually by purchasing a new washing machine. But not always do you have the extra cash required for such indulgences.

A consumer durable loan helps in financing purchases of household necessities, when you don’t have money to pay for it, at least for the short term.

The loan usually covers a range of products from luxury gadgets like smartphones to household products like a washing machine. A few products covered by the loan include:

• Cooking range
• Air conditioner
• Refrigerator
• Washing Machine
• Laptop, desktop, tablet
• TV
• Smartphone

Types of consumer durable loan

Consumer durable loans can be divided into 3 parts:

Digital Finance - This loan is used to finance laptops, smartphones and gaming consoles. The tenure such loan is set between 8-24 months. A digital finance can also be used in case of purchases through EMI.

Lifestyle Finance –Lifestyle finance covers the purchase of luxury products like utility appliances, fitness equipment and other products like furniture. The loan tenure is 8 – 24 months.

Durable Finance – This comprises of durable needs like LED TVs, washing machine, refrigerators, microwave oven etc.

Part and parcel of the deal

While purchasing a consumer deal loan, there are a few attributes that come along with it. Being aware of these can help you make your decision of purchasing the loan with ease.

Processing fee and down payment - Down payment is the money paid right after the approval of the loan application. Since financial institutions cater to about 80%-90% of the actual price, the down payment usually sums up to 5%-20% of the product price. Thus, before hopping onto a durable loan deal, be assured of the loan amount provided by the lender.

Documentation - Consumer durable loan is easy and fast to apply. They are in most cases instantly approved and require just the basic documentation:

1. Income proof
2. Address proof
3. Identity proof

The rate of Interest - The presence of the rate of interest in case of these loans is optional. There are stores that offer interest-free loans, which mean they are making use of their marketing budget to pay your interests. Today’s market offers you several interest-free schemes. Understanding the scheme of interest gives you clarity about the loan.

These loans are undoubtedly the best ways to get your necessary household requirements funded. Make sure that you explore all the options that you have and settle for the best.

What is the Difference between NEFT and RTGS transfer?

Perhaps one of the most widely used banking services is that of online transferring of money. It is one those services that people have to use, though not always frequently but from time to time.

The reasons for making use of this service is many and varied, some people use it for business purposes while others use it for personal reasons such as sending money to children who are studying abroad or grownups who are living and working in a different city or country. Mostly the kinds of money transfer services available at your disposal are; IMPS (Immediate Payment Service), RTGS (Real Time Gross Settlement) and NEFT (National Electronic Funds Transfer).

What is the difference between NEFT and RTGS transfer you ask?

It is as follows:

NEFT

• NEFT is available for use on all days excluding Sundays and bank holidays.

• NEFT money transfer works in batches. It works in settlement basis which means that the money can get transferred in 12 settlements between the bank timings of 8am and 7pm. Similarly, on Saturdays the transfer takes place in settlements of six between the time 8am and 1 pm.

• The value for a NEFT money transfer can be as nominal as one rupee.

• The processing fee for a NEFT money transfer is very nominal. If both the banks, i.e., the sender bank and the bank that receives the money are NEFT enabled then fee can be pretty standard.

• A NEFT money transfer has no maximum transfer limit. This feature makes NEFT very cost-effective and allows for larger usage by the public.

Well, that goes for the NEFT transfer, now we come to RTGS transfer system.

RTGS

• The RTGS system has a minimum transfer limit of two rupees.

• It also has a maximum transfer limit of ten lakhs.
• Both the banks need to be RTGS enabled in order to get this money transfer service in motion.

• The service is very fast-paced as the recipient can get the money in his or her account in a matter of 30 minutes of making the rtgs payment.

• The rtgs transfer service can be availed  between 9 am and 4:30 pm on a weekday and between 9 am a 2 pm on a Saturday.

These are some of the basic differences between a NEFT money transfer and a RTGS payment method. RTGS is, most of the times , favoured for its wider availability of scope and speed whereas others prefer NEFT for its cost-effectiveness and no-limitation freedom.

What are the available banking cards and their features?

With a humongous advance in modern methods, banking cards have proved to be an efficient means of the transaction for individuals. They don’t just spare you the hassle of running around for cash but also aids you at times of immediate purchases.

Bank cards are specifically classified on basis of their usage, issuance and the payments made by the cardholders. The cards are of three types:

• Credit Cards
• Debit  Cards
• Prepaid Card

Credit cards

You walk into a gadget store and lay eyes on a fascinating high-end smartphone. But to your agony, you are not carrying the amount of cash required to purchase it. Well, all you need to do is get your credit card swiped. A list of few basic features of a credit card will include:

1. Through credit cards, also known as plastic money, a person can withdraw amount beyond what they have in their account. However, there is a certain credit limit up to which the extra money can be withdrawn.

2. The cards can be used for transferring money to the debit card, bank accounts and prepaid cards within the country. They can also be used to make transactions through the ATM.

3. The amount of money withdrawn via a credit card must be paid back along with the necessary interest charges applied by the card issuer within a limited time span.

4. E-commerce/Point of Sale (POS) purchases can be made with credit cards through Interactive Voice Response (IVR) or Mail Order Telephone Order (MOTO). They can be used both internationally as well as domestically.

Debit Cards

Debit cards are a good alternative to paying cash or while shopping from your favourite online store.

Prominent features of a debit card include:

1. Debit cards are specifically linked to the customer’s bank account and are issued by the respective banks. Therefore, you can only withdraw money based on how much you have in your bank account.

2. You need to have sufficient balance in your account to make transactions using a debit card. They can be used for withdrawing cash, purchase of services and goods at E-commerce/Point of Sale (POS) both internationally and domestically.

3. Debit cards are useful for domestic fund transfers among individuals.

Prepaid Card

A prepaid card is the best plastic alternative to carrying around cash. Also called ‘everyday cards’ you can pre-load them with money and use as required. Once the amount gets exhausted you can opt for a top up. The basic features of a prepaid card are:

1. For getting a pre-paid card issued, one needs to pay the money in advance. Thus, these cards cannot be linked to your bank accounts.

2. Prepaid bank cards are issued by both banking and non-banking entities.

3. Prepaid cards issued by banks are called Open System Prepaid Cards and can be used to make withdrawals from ATM, purchase services and goods at E-commerce/POS and for domestic fund transfer.
Different types of cards have made life easy with their on-spot transactional features. Relieve yourself from the hassle of cash payments and get your bank card issued today!

Why Banking Services Are on the Rise?

Meeting financial responsibilities are a very important aspect of life. Whether it be saving money for long-term requirements or  transferring money from one account to the other either for professional or private purposes, bank services are extremely necessary, especially in this age of globalisation.
Many of you reading this article may be wondering what are the various banking services that people are opting and why are they slowly on the rise.

Here is a list of pointers telling you why:

• The digital revolution has brought about a sea of change in the world. Shopping is a necessary part of everyone’s lives. Whether it's grocery shopping or clothing, everything can be done at the click or tap of a button. Almost all of these online shopping websites give you the option of paying online with credit or debit cards or also pay cash on delivery; most of the times people pay online in order to avoid the hassle of keeping loose cash with them in order to pay after the items have been delivered.

• The ease of accessibility is stupendous these days. Accessing the internet has become easier and easier as now smaller devices such as smartphones and tablets come equipped with various applications that enable you to conduct banking services on the go. The ‘omni digital’ group of people are now turning to their devices more and more for numerous banking services instead of physically going to the banks. 

• Transferring money is more easy. Studying abroad is now no longer a far-off dream for many people. With the countless number of scholarships, grants and loans so easily available, more and more people go abroad to study. This makes it necessary for guardians to send money to their children from time to time. With various types of money transfer services- IMPS, RTGS and NEFT, transferring money are easy and fast.

• Similarly, when people go outside of their city or country, they often end up sending money to their family back at home from time to time. Easy transfer services are a huge relief especially if the need is a dire one.

As already mentioned above, in the wake of the digital revolution, there has been a massive paradigm shift in the world of bank services. There is a little requirement of physical presence nowadays as everything is shifting to the virtual sphere.

Banking has become not only easy but also fun with zero requirement of standing or waiting in long queues at the expense of time because digitalization in terms of banking services is rising at a breakneck speed.

What are the benefits of mobile bill pay?

Almost every individual on the planet owns a smartphone. With the rise in popularity of these devices, several companies have also devised methods of conducting monetary transactions through them. Now, paying bills from your phone has also become quite simple. Apps such as Paytm, MobiKwik and others have further increased the popularity of this mode of payment.

Here is a look at some of the benefits of paying bills through your mobile phone.

1. Saves time
Under normal circumstances, you are required to visit the service centre for which you are paying the bill. For instance, if you want to pay the electricity bill, you would have to visit the electric office to clear out the dues. However, with the emergence of mobile bill pay, you can choose to pay off the bill from within the confines of your home or your workplace.

It also saves you the effort of having to travel to the electricity office just so that the bill amount is cleared. In some cases, the office may be located at quite some distance from your home, which would make travelling there a hassle.

2. Saves paper
In the normal method of bill clearance, you would have to inspect the bill papers and then make out the payments in cash. It also involves keeping track of all the prior bills as well, which amounts to a lot of paper. Using the mobile bill pay option however does not involve any hard copies of the documents. Instead, you can check the bill online and clear it out online. The transaction is saved for future reference and you can check it out from your phone itself.

3. Secure payment option
You may feel that online transaction involves a lot of risk. However, in reality, paying the bill through your phone involves much lesser risk when compared to the dangers of carrying the cash amount to the bill clearance office. Online transactions these days are protected by SSL encryptions, which cannot be decrypted by anybody else, apart from the beneficiaries.

4. Much more organized
In mobile bill payments, bill clearance is much simpler. An email quotes the bill amount that needs to be paid. After the amount is cleared, the customer receives a confirmation by mail. The payment is almost instantaneous and can be made at any time. This means that you are free to make the bill payments on the last day as well, without having to worry about defaulting.

Mobile payment apps and methods are slowly replacing the cash payment system that was followed previously. Try out the different online bill payment options and you will surely notice the difference.

How to pay toll through the comfort of your phone

If you own a car and travel a lot through highways and expressways, you must have come across the toll booths. Here, you have to pay the toll fee, which is a type of tax you pay to the government of India.
For convenience, several newer procedures have come into effect through which you can pay toll online. Here is a look at some of the methods through which you can pay the toll through your phone.

FASTag

Several apps allow users to transfer money into a virtual wallet. While passing through a toll booth, the user needs to scan the QR tag from their smartphones. This will directly transfer the required amount of money from the virtual wallet to that of the toll company. Many banks offer this facility, so you should ask for the same. This method of payment is often known as FASTag payment.

ToneTag

Paying toll usually takes a lot of time. However, through a ToneTag app making toll payments has become easier. Through this app, you simply have to unlock your mobile phone to make the payment. Users need to sync the ToneTag account with that of their virtual wallets, payment bank and UPI apps.

Benefits of paying toll through phone

• Paying toll usually requires you to carry cash. However, with the emergence of online payment options, you can pay toll even if you are not carrying cash physically.

• Since, this cashless process is much faster, cars can move on without having to stop near the toll booth. This helps reduce fuel consumption.

• Recharging the FASTag is very easy, since users can transfer funds using debit card, credit card, RTGS, NEFT and net banking.

• Once you sign up to FASTag, you can avail the service for 5 years without needing to sign up again.

• Using this cashless method for toll payment, you can receive cashback and discounts up to 10%. This means that you have to pay less if you opt to pay highway toll online.

• Lastly, you can save a lot of your time if you pay toll online. This will cut down on travelling time and ensure you reach your destination sooner.

So, the next time you are on the expressway and you have to pay highway toll, be ready with your FASTag app.

PayZapp: Take advantage of instant and convenient online payments

HDFC Bank which is the best private sector lender launched additional payment platforms for is POS (Point-of-sale) terminals which can be used to perform transactions. One such popular payment app through which one can carry out transactions is the PayZapp application.

HDFC Bank has a staggering network of around 3 lakh merchants and 4 lakh POS machines all set to be converted to DigiPOS. Presently, HDFC accounts for 3/4th of the total transactions made through various POS terminals, which implies that every third monetary transaction is done by using an HDFC card or HDFC payment options. 14 crore transactions are done every month through HDFC Bank. PayZapp acts as customer acquisition strategy for the company and easy way of handling finances for the public. Moreover, HDFC is a very trusted bank, so this new app is a safe and efficient way of carrying out your finances.

PayZapp combines features of hundreds of e-commerce platforms as well as characteristics of a bank. It ensures the protection of a customer wallet and personal details and makes sure that HDFC retains its dominance over the retail segment. Customers who have an account in HDFC Bank no longer need to separately download apps from other companies like Expedia, Goibibo, MakeMyTrip, Cleartrip, BookMyShow, BigBasket and Flipkart. All these important apps will just be one click away if you download PayZapp. It also compares prices and shows you the best deals which suit your pocket and desires. It facilitates all the monetary transactions of thousands of merchants across the country. With loads of bright minds sitting in Silicon Valley and working hard to give us the best experience, physical banking is soon going to be obsolete. There is no need of standing in long queues outside the bank, your work can be done with just a click of a button.

Indian banking has reached its crossroads with apps like PayZapp shaking the behemoths of two hundred years of traditional banking. The best part about this app is that it is free and just a working internet plan on your phone is enough to help you with all your transactions. The PayZapp app will allow you to book airline tickets, movie tickets, do grocery shopping, book hotels, pay bills easily, recharge your phone and send money.  Within PayZapp, HDFC offers Smart Buy which is basically a virtual marketplace to suit all your needs. You can buy whatever you want at a discount; this will increase your savings at least 10% to 15% a month.  PayZapp is the future of internet banking as HDFC Bank ranks number one among all the private banks if we consider mobile payment apps.

What is the future for UPI 2.0?

The Unified Payment Interface or UPI came into existence in April, 2016. Ever since, millions of Indians have used this system for making and receiving payments. It is essentially an electronic mode of payment, which can be used to transfer funds straight from your bank account without the need to type out your debit card details or your net banking password.

However, in light of the success of the UPI, the government of India is now planning to launch the second version of the same, dubbed UPI 2.0. This version will include all the features of the previous one, but will also include one additional feature. This feature will allow the user the ability for a one-time authentication for repeat payments to beneficiaries, similar to the way post-dated cheques work. This new feature is known as eMandate.

Let’s take a look at what the introduction of eMandate can mean for you and what the future of UPI 2.0 looks like.

Easy EMI and loan payments

Since the eMandate feature allows for a one-time authentication procedure for repeat transactions, you would not have to keep authenticating the EMI payments each month. You can simply authenticate the transaction the first time and sit back. All of the other payments will be made each month automatically.

This will reduce the friction significantly and streamline the loan repayment procedure. The same applies for any repeat payments that you have to make. For instance, the house rent can also be authenticated once in a similar manner.

Collection costs for small loans will decrease

Currently, the collection costs for small loans are cumbersome, as they can increase the total expenditure. The loan repayment process includes either electronic clearance service (ECS) or post-dated cheques (PDC), both of which involves quite a bit of hassle. With the introduction of the eMandate through UPI payments, the collections costs will most likely go down.

Greater savings and insurance purchase

With the introduction of the UPI 2.0, there is a high chance that people will start saving more. This is because it will become simpler for people to sign up for saving products in the market. For the same reason, people are likely to purchase insurances as well. This will boost the financial growth of the entire country.

Therefore, it seems as if the UPI 2.0 introduction will shake up the Indian market. The eMandate will mostly have a positive effect on the economy as well as on the individuals. However, only the future will show how the new UPI affects people.

What are the features of private banking?

The concept of private banking goes beyond the concept of day to day banking transactions in order to address a person’s financial condition. It is a complete amalgamation of providing financial solutions, retirement planning and ways to pass on wealth to the future generation. The idea of private baking has been gaining ground in the recent times owing to the benefits provided to high-end consumers.

What is private banking?

Private banking can be defined as personalized banking and financial services, meted out to the bank’s HNWI (High Net worth Individual) clients. HNWIs are people who have potentially secured more wealth than the average person. Thus, they have in plenty of what is needed to make alternative and conventional investments. In such cases, private banks make an attempt to provide individuals with the most suitable types of investments.

Private Banking Personalised Services

1. Customers availing private banking services are entitled to highly personalised services. Each customer is assigned a relationship manager or an account to adopt a customised approach to asset management. Therefore, in case the need arises, the customer can directly communicate with the management.

2. Any private bank in India lends out discounted services to the HNWIs on the grounds of the substantial assets that they hold. For example, there might be a reduction in the foreign exchange rate for customers who are into export businesses.

3. These banks often provide investment returns that surpass the benchmark indices. HNWIs can easily influence the investments by using extensive resources in their possession. For example, an HNWI might gain access to a hedge fund that is performing par excellence in the market, via an affiliation with a private bank.

4. There is a large section of private banks that do not carry FDIC insurance. Therefore, an aggressive approach towards the management can usually prove to be quite beneficial for the investors. It can also lead to a great deal of profit for fund managers.

Almost every private bank in India is known to follow an open product platform, through which they claim their services to be unbiased. They firmly believe that the client is provided with the best of what they can avail in the field. Since the concept of a private bank revolves solely around understanding the needs of the clients and providing a relevant solution for the same, only a few banks define their proposition value as required.

Reason why investing in bike insurance will benefit you

A motor insurance policy is a part of general insurance products in India. Nevertheless, there are a number of motorbike consumers who are not aware of the benefits of a two-wheeler insurance plan. Bike insurance covers a bike owner against unforeseen damages to the automobile or any unfortunate accident.

More than a necessity, the Indian government has made it mandatory for every consumer to have a legal two wheeler policy. Almost every standard insurance plan provides coverage for both natural and man-made calamities.

Personal accident cover

A personal accident cover is the most important part of a two-wheeler insurance plan. In this case, apart from the vehicle, the owner or the individual is also covered against any injury sustained during dismounting, mounting or travelling. If you have an additional cover, you get coverage for your co-passenger as well. The maximum amount covered for a rider within the age limit of 18 to 65 years is Rs.1 lakh. With the current progress in technology, you can even spare yourself from the hassle and apply for bike insurance online.

A list of important benefits that you can avail by investing in bike insurance will include:

Protection against natural disasters- Surprising as it may be getting bike insurance online or otherwise saves you a great deal of expense due to damage caused by natural disasters - earthquakes, fires, storms etc. In such cases, the policy bears the entire repairing cost.

Coverage for human-made calamities – A two wheeler insurance policy covers damages caused due to acts of burglary, theft, war or strike. As per the demands of the situation, the policy covers replacement charges or service costs.

Safeguard of legal interest – As per the Motor Vehicle Act, 1961, third party insurance is mandatory. This ensures the fact that the concerned vehicle is free from any kind of third party liability in case the insured vehicle is party to an accident in the future.

A sense of security – At the end of it all, you have a sense of security every time you or any of your family members hit the road. In fact, these plans often save you from imposed traffic fines: not wearing a helmet.

Two wheeler insurance is a worthwhile investment of your savings. The legal necessity of the same has made the Indian streets a more secure place in the event of accidents. You can seek for relevant assistance while buying or renewing a bike insurance plan.

Personal Loan Repayment: How repayment can affect your tenure

When it comes to taking a loan, banks provide you with a number of options to choose from. However, taking a personal loan is the easiest way as it can help you get a number of things done without much hassle. From a vacation that you have been dreaming of to dealing with an urgent financial crisis, a personal loan can come to your rescue at any given time. But personal loans generally have a higher interest rate than any other loan. You also need to be fully aware of certain factors which determine how much you pay back and within what timeline, before taking a loan.

Taking a personal loan is as easy as it can get. However, repayment of this loan can be quite strenuous if you do not make the right choice. You need to be ready to pay a higher interest amount than any other loan when it comes to personal loans. For instance, you should be careful about picking your plan. Certain plans can help you repay comfortably, with lesser EMI amounts but with higher interest which will eventually make you pay more. On the other hand, there are various other plans which are high on the EMI amount but will have you pay a reasonable amount as the interest and that too, within a shorter period of time. These plans are often advised as the payment will be over soon and you will not have to pay a huge amount of interest. In order to get over the mental and financial stress, plans which have a high EMI amount are often advised. However, if you are dealing with a serious financial crisis, then applying for a personal loan with a lower EMI rate can be more comfortable, given the situation.

Personal loans can be quite helpful when you are in an urgent need of financial support and have nowhere to go. You can easily apply for a personal loan and get it approved within no time. Make sure to check various plans before choosing the one most suitable for you. Your payment, therefore, depends on the tenure you want to take up. A longer tenure means you have to pay a higher amount overall but in a longer period of time, more comfortably. But with a short tenure, you can get away with a lesser amount to pay, but with a higher EMI amount.

Why should health insurance be on your list of financial priorities?

Penning down a list of things that you want from life is easy, not just for you but for many. But you find yourself in a fix when asked to prioritize them. With limited income and a never-ending list of expenses, the investible surplus left behind is minuscule. As you try to distribute this available amount, investing on your health should not be missed out. For all you know, your necessary hospital bills can leave a deep hole in your savings pocket!

Speaking of health insurance, the first question that pops up on your mind is, “Why do I need one?”.  Well, a simple answer to this is it covers a part or almost the entire expense of a person that he/she may incur when faced with a medical emergency.

Why should you invest in health insurance?

Due to abrupt inflation, the best of healthcare has turned into an expensive affair. Prolonged hospitalizations usually require lakhs of rupees that can prove to be quite a deal for a person earning a moderate living. It is here that health insurances come in handy.

A health insurance plan is a yearly insurance policy which means it is renewed every year. The policy covers hospitalisation due to accidental injury, and sickness, though in certain cases there are waiting for periods and exclusions, which are mentioned specifically in the policy plan. There are two ways to claim health insurance:

• Reimbursement
• Cashless

The benefits of a health insurance

Apart from covering the important medical cost, your insurance offers several other benefits as well:

Get rid of hospitalization charges – You can always avail cashless health insurance at hospitals in the network of the insurance company. The insurance company takes care of the costs incurred, relieving you from the burden of having to arrange for money immediately.

Cover for critical illness – As a pre-defined benefit, insurance companies allow a specific amount for critical illnesses like kidney failure, cancer, stroke etc. Irrespective of the medical bills, a major portion of it is settled through his/her health insurance plan.

Avail tax benefits – You can take care of unplanned medical expenses without having to dig into your savings. By paying health insurance premiums, you can avail several tax benefits in the long run.

Benefit during the period of recovery – Certain health insurances provide daily allowances during one’s hospitalisation period. In other cases, you are given a lump sum amount if the stay exceeds a few days.

Relevant awareness about health insurance policies is on the rise in urban India. With people becoming more aware of its necessities, it has moved on to become a priority in the financial plans of an individual.

Travel Insurance: Investing in pocket friendly financial protection

Almost all of us dream about travelling to exotic places, witnessing breathtaking views and gorging on the best dishes that are available there. People tend to meticulously plan their vacation to the last minute detail. They book the best flight tickets, book rooms in the hotel that provides the most captivating views and even plan what they are going to eat when they visit a place.

They generally want to live a dream. But there is no guarantee that there would not be any roadblocks while you are trying to live the dream. This is where travel insurance becomes so very important. Such an insurance policy helps to make travelling easier and hassle-free. A travel insurance policy is such a policy that generally covers the medical expenses, lost luggage, any accident that may occur during conveyance, any cancellations and any other loss that a person may incur during travelling.

The benefits of investing in a travel insurance online are:

• You are safeguarded against a range of complex and different issues that may cause you to face while you are travelling to an unknown place. A good travel insurance policy provides ample support in situations when you have lost your passport or have encountered any medical emergency.

• A travel insurance policy will make sure that you do not have to spend from your own pocket if you are hospitalized or if you have to visit a doctor or if you have to purchase any medications that you may have to take. It is important for a person to get to know the details of the insurance policy that he/she is purchasing. This will help them to take advantage of the different provisions of the policy.

•  Travel insurance will also pay for the monetary loss that a person will experience if the trip gets cancelled or if there is any problem with the hotel, train or flight reservation. Such an insurance policy will help to compensate for some of the losses that a person may experience due to these misfortunes.

• A situation may arise where your baggage may get misplaced during conveyance or the baggage may not arrive on time. A person may need to spend his/her own money to purchase the necessary things till he/she receives the baggage. Travel insurance will cover these expenses and make sure that you do not have to overspend.

Some of the travel insurance policies may also cover any unexpected additional expenses and also cover the emergency medical expenses of your travelling companion. A travelling companion may fall ill or he/she may have met with some unforeseen circumstances that require immediate financial assistance. You can purchase travel insurance online which will ensure that a person who has suffered from a permanent disability will continue to receive a payment for a period of 12 months after he/she returns from the trip.

Factors to keep in mind when renewing your car insurance?

Why should a person get his/her car insurance renewed? To answer this question, first and foremost what has to be kept in mind is that is it is illegal to drive a car without a valid insurance policy. Car insurance protects your prized possession against any kind of physical damage caused due to any natural or man-made disaster. Do not worry about finding the right policy as you can check the different policies online and purchase car insurance online.

Different insurance companies provide different policies that are sure to meet the requirements of any individual. The process of renewing car insurance has become very easy and it can be done from the comfort of your drawing room as well. The factors that a person needs to keep in mind while renewing the car insurance are:

• There are different terms and conditions that govern the renewing of insurance policy. The conditions may differ from one insurer to the other. Grace period ranging from 3-30 days may be provided by some insurance companies to people so that they can pay the required amount and renew the policy.

• Some insurance companies may not even provide grace periods. The policy lapses in such a scenario.

• Companies offering grace periods may charge some fees from the person seeking renewal.

• A person who is has a habit of paying the car insurance premium during the grace period may be penalized by the insurance company.

• Furthermore, making late payments regularly may prove to be detrimental to both the insurer and also the person making the payments.

• Renewing a policy during the grace period requires a person to pay all the dues that are pending.

Not having a valid car insurance policy will make you ineligible to drive on the roads of India as it is it mandated by the law in our country. Some of the points that are to be kept in mind when you want to renew an expired car insurance policy are:

• You may have to pay the higher premium amount and may also miss out on some of the benefits that you had been previously enjoying when you renew a lapsed car insurance policy.

• You may not even be able to renew your policy if had lapsed for a considerable amount of time. The specific time-period may vary from insurer to insurer.

• A person who wants to renew a lapsed policy may have to pay fines for all the days that have gone by without the premium being paid.

• Even if an insurance provider lets you to renew the lapsed policy, it may demand vehicular inspection, and you may also lose the right to claim a bonus.
These are the factors that have to be kept in mind while renewing car insurance. So it is better to pay car insurance online instead of facing so many hassles.

How to transfer funds into your trading account?

Transferring funds to start the process of trading is not as difficult as it may seem to some people. Following certain steps carefully will allow you to transfer funds into your trading account without much hassle. You can choose to transfer funds into your account by using a couple of methods. Using an instant payment getaway method or using checks and NEFT/RTGS/IMPS facility can help you make the transfer. You can also pay via margin check or DD to your broker. In order to transfer your funds, you need to follow few simple steps and start trading.

Process of transferring through Payment Gateway

One of the most common methods of transferring funds, offered by brokers is through payment gateway. All large banks offer this facility. Payment gateway is the most popular method as it allows individuals to use their debit card or the facility of internet banking to conduct online trading in a hassle free manner. As soon as the transfer is done, the account reflects the credit and users can start trading immediately. Certain important factors like, using your debit card or using internet banking alone for transferring funds, and making a hefty payment to the broker when the funds keep increasing should be kept in mind about the payment gateway.

Adding in Funds via NEFT/RTGS/IMPS

The next best method for transferring funds is through NEFT, RTGS or even IMPS. NEFT or National Electronic Fund Transfer helps you transfer funds instantly to the trading account if you share the same bank as your broker. However, if the banks are different, an estimated period of 2-3 hours is required to make the transfer. The alternative method of Real Time Gross Settlement is also the same as NEFT; however, the one difference between the two is that RTGS is applicable on fund transfers above Rs 2 lakhs. On the other hand, IMPS is also quite similar, but the advantage with IMPS is that you do not have to follow the 10:00 am to 6:00 pm rule like that of NEFT or RTGS. You can make the transfers any time, and on NEFT holidays as well.

Transferring Funds via Check/DD to the Broker
Transferring funds can also be done by drawing a cheque in favour of the broker. But this method is used for offline trading alone. The process is a little longer as it takes 2-3 days for the account to reflect the credit. You also need to make sure that the cheque is signed properly and your account is funded as well. Following any of the aforementioned steps will help you transfer the funds to your trading account easily.

What are the key factors you need to look out for when investing in forex

Before investing in forex, it is essential to understand what exactly forex is. Forex or foreign exchange market is the largest financial market in the world and the average traded value every day is more than 4 trillion U.S dollars. The units of this market include commercial companies, central banks, investment firms, banks, retail investors and even hedge funds. People can buy, sell, speculate and exchange currencies in this market.

In simple words, it is a 24-hour cash market pairs of currencies are usually traded. What investors actually do is that they trade in pairs of currencies and they speculate the value of which of the currencies that they are betting on will go up and whose value will go down. The factors that a person needs to look out while investing in the foreign exchange market are as follows:

• Forex market is a 24-hour cash market where currencies are bought and sold at the current exchange rate or at the current price.

• When a future financial contract entails that an investor has to buy or sell a currency at a pre-determined date, the holder of foreign exchange has the may buy or sell a specified amount of a foreign currency before or on the specified date. This is due to the existence of the foreign currency options.
The main benefits of trading in the foreign exchange market are:

• Unlike trading in the stock market which requires depositing a lump sum of money so as to become eligible for trading, the foreign exchange market allows you to start trading with a minimal amount.

• Due to the constant supply and demand for money, the foreign exchange market is the most liquid market in the world. It is open for 24 hours per day and this implies that a person can trade at a time of his/her convenience.

• Forex brokers use some of the newest trading platforms that are available as desktop programs for a personal computer and these programs are also available to be used on Android and iOS devices. This technological advancement is perhaps the most important benefit of trading in the foreign exchange market.

• You are able to sell currencies without actually purchasing them. Foreign exchange markets allow you to sell high and buy low and this counters the traditional trading logic of buying first and selling later.

• Another important benefit of trading in the foreign exchange market is that an investor can employ leverage to buy or sell funds that are hundreds of times more than the funds that he/she actually holds. This may result in substantial gains or even losses for the individual concerned.

• A potential trader generally can gain access to an unrestricted demo account which lets the individual to trade with paper currency but under actual market conditions.

These are the key factors that a person needs to keep in mind while investing in the foreign exchange market.