NRI Banking Scams: How to protect your foreign banking transactions?

What is a scam?

A scam refers to an illegal act, generally put forth by an entity or entities with the intention to earn money or other valuable possessions. However, banking scams have been a common occurrence, not only in India but also other countries. Innocent customers have been deceived by scammers, improving on their methods day to day. However, with the government and private banks raising awareness on the issue and providing guidelines to safeguard your account, we have observe lesser of such cases.

Current Scenario

NRI banking and its security measures’ demands have marked up over the past decade. Fraudsters have victimized many account holders, especially NRIs. Their techniques to entice you have also improved over time and so has their operational level. A few bank managers have also been involved in scams recently, associated with unusual channeling of money in NRI held bank accounts. These accounts are mostly handled by individuals in India, although each financial institution undertakes personal monitoring of the account themselves. This is because even if your Indian associate handling the account is not involved in perpetrating a scam, they might be the victim of one.

Banks have identified such schemes on their websites and blogs on social media are full of information on how to adhere to precautionary measures in order to safeguard your bank accounts and monetary possessions from such fraudulent schemes.

Types of Scams

The fact that we have identified and understood how to tackle them signifies our progress. Two typical banking scams prevalent in today’s world include:-

Phishing – This type of swindling involves customers receiving emails from accounts that seem to be originally from their banks, because they direct them to similar web pages and beguile them to expel sensitive information. They allure customers who do not have a keen eye to detect minor differences from emails belonging to their bank. Those customers who give out information such as their passwords, usernames, atm pins, etc. end up falling prey to these scammers. The only way to protect yourself would be to observe the differences in these mails and the original ones from your bank. Before spelling out personal information, it is suggested to confirm the scheme from the bank.

Malware - Trojans, viruses and other web associated platforms can be downloaded on your computer with minimal requirements from your end. All it takes from your end is to open an email and on the other hand your computer downloads the virus which provides a hacker with all your personal information saved. Regularly checking your device and its functions and monitoring whose emails you receive can help you tackle this menace.

NRI services in India have provided efficient knowledge on other such schemes which include:- money mules, card cloning, SIM frauds etc.

The ideal guide on sending money to India

Transferring money

Transferring money from one to any other part of the world is no more a boisterous task. Indian banks accept various kinds of money transfers and has equipped its banks to receive currencies from all parts of the world. As we march towards a global digital economy, cashless payments are becoming a frequent practice. With such digitization, a lot of options are available for households to send money to India.

Depending upon your requirements you may choose from many mediums to send money. Each medium comes with its own unique procedure; although the ultimate objective is the same.

Means of Transfer

Out of all options, the most common ones include:-

 Bank transfer - the traditional way of electronically paying a merchant or transferring funds from your bank account to another.
 Wire transfer - international transfer of monetary value between banks.
 FX transfers - you can use forex brokers to help you transfer funds. This proves beneficial for big amounts.
 Money transfer agencies - Agencies like the Western Union, take a surcharge and transfer funds from one entity to the other, in different places.
 Online Transfer - you can choose amongst a number of digital arbitrators and compare currency rates to choose the best possible options available.
Therefore, it does not matter where you are in the world, transferring money to India can be done with sheer convenience.

Taking into account the features of each medium, you can analyze and then decide the best option for you. Each medium or agency that is associated with money transfer to India, has established their own norms and as such users are required to read them carefully. This is because the transfer of cashless money involves a lot of risks. Cashless transactions are accurate but are subjected to strict policies and regulations, with each medium functioning based on their own established guidelines.

Which is the right credit card you should apply for?

What is a credit card?
A card issued to someone (cardholder) on the basis of a line of credit and a supervised account, to grant access to the cardholder for payments to any merchant is called a credit card. Depending on the line of credit, the cardholder borrows this money for the payments being made for which he/she agrees to pay back the issuer along with interest for the transaction(s).

A credit card differs from a cash card. Since it is not necessary for the holder to clear the amount due at the end of the month; he/she can extend it as a recurring debt and clear it later, subject to a sum of interest.

Applying for a Credit card

When applying for credit cards in India or international banks one should adhere to the prescribed ‘Dos and Don’ts. For digitization of currency comes with great benefits but also a few setbacks. Therefore, one should form an analysis of the payments that he/she would be making using the card which will allow the user to apply for a particular category of credit cards. In today’s world, banks provide you with a variety of credit card options to choose from and as a rational customer you should apply for the category which provides you with the maximum utility.

Types of Credit card

The most common types of credit cards in India have been categorized based on a particular area of expenditure. A few common categories in practice are on the basis of:

1) Lifestyle - if you use the card mainly for shopping, dining out, etc. Lifestyle credit cards offer maximum utility as they are designed to reward you with bonuses and cash back.

2) Travel - credit cards providing you access to airport lounge facilities and other rewards on your tours and expeditions.

Customized cards for each Individual

Presently credit cards are personalized for an individual and while applying for one, do look up the benefits in store for you and whether or not it entails benefits that makes using the credit card more feasible. However, your credit score plays an important role here. The card you get is based on your credit score which is estimated by the bank.

A bank or the card issuing body forms a revolving account for the subscriber and associates it with a credit score which estimates the borrowing power of the cardholder. This procedure is the reason most people apply for a credit card in the same bank they have an account in. However, this puts you in a tricky spot as the bank might hold you liable in case of abnormal activities by your card (even when you are not involved in it). Such incidents have occurred with various clients in the past. This is why just applying for a credit card from the same bank might not always be the best option.

What are the different types of EMI calculator available in the financial market?

Loans offer a great financial benefit for those who can afford it and yet may not have the means to invest a large amount at one time. Furthermore, the variety of loans available in the market makes it easier for consumers to utilise this financial aid to its full potential. Take, for example; the personal loan can be utilised for several miscellaneous requirements, whereas the car loan can be used for the purchase of a car.

However, with the application of any loan, comes the responsibility to repay the loan. While you may be able to repay the borrowed amount, you will also need to keep track of the interest rate charged on the overall amount, and how much you will be paying for it on each EMI. Moreover, you will also need to ensure that you can afford the long tenure, or ensure that your disposable income is not completely diverted to the payments of the EMI.

These are plenty of factors to consider, and yet they play an influential role in affecting your loan application decision. So how can you take all these factors into consideration when calculating the ideal loan rates and factors? The EMI calculator is one tool that can benefit you. But for the right loan, you will need to use the right calculator to calculate EMI. To ensure that you are getting an affordable and convenient EMI for the loan you will apply for; you can use any of the following EMI calculators:

Home Loan EMI calculator: One of the most popular loan applications is the home loan. As plenty of individuals purchase a home as an investment or necessity, home loan EMI calculators will go a long way to ensuring you get the best of rates. With this tool, you can calculate EMI in terms of tenure, interest rate, principal amount and even get an amortisation table of the calculated result.

Car Loan EMI calculator: After the home loan, the car loan is the next popular loan choice. The car loan can differ on various points such as the status of the car, the inclusion of ad – on, which will be calculated on the loan amount and consequently into the EMIs, not including the down payment. By using the car loan EMI calculator, you can calculate the EMI’s in terms of the principal amount, interest amount and the ideal tenure that will take to repay the borrowed amount along with the additional funds.

Personal Loan EMI calculator: The personal loan can be used for several personal uses, such as financing a wedding, a trip or even something as small as purchasing a gadget. Like the other EMI loan calculators, it can be used to calculate the ideal borrowed amount, the best interest rate suited to your needs, and the tenure which is affordable for your repayment. 

While the loan options may differ in accordance with your requirements, it is best to use this tool to ensure that you are well aware of the affordability of the loan. Furthermore, you can use these loan calculators to ensure that you safe sufficient funds on a month to month basis.

Never ever make a late credit card payment with these tips

Credit cards are a great way to manage your funds, especially when it comes to making expenditures on a regular basis, or from a single outlet. However, when it comes to the credit card payment you may face an instance of delayed payment, or even keep track of the due date payment. In either case, you will incur an additional payment, which you can easily avoid. Furthermore, you can avoid the possibility of impacting your credit score, with these incidences.

Here are a few steps you can follow to avoid making any late credit card payments in the near future:

Set up auto payment: This is one of the most convenient and advantageous feature any credit card holder has. This is especially beneficial for those who are well aware of the expenditures made in each month. If the expenditures are fixed, then the card holder can assign this amount to be paid before the due date arrives. To make this step, the account holder would need to contact the lending bank, and opt for the automatic payment option. If you opt for this option, ensure you track the payments after a few months so that you ensure that your account is not misused in any way.

Pay off the bills before the due dates: Delays and penalty payments occur only because the card holder is not aware of the due date. Plenty of distractions or even incidences may distract you, causing your to lose track of the due date. To avoid this credit card payment, the trick here is to pay the credit card payment well before the due date. Ideally, it is best to make the payments at least three to five days after you have made a purchase on the card. If you must have to make multiple payments, do so, as in the long run, it will help you avoid a late payment or delay.

Change your due date: Very often the due date of your credit card payment will be lost amongst the other bill payments. In this way, you lose track of the dues to be paid, and then incur a penalty or added charges. This is normally the cause if your credit card payment is due at the end of the month, the same time where every other bill payment is due. To avoid this situation, you should shift your card payment due date to the first few weeks of the month. The best time to do so is when your salary gets deposited so as to make the payment immediately and avoid any chances of missing it. Furthermore, avoid keeping the due date in the last week of the month.

Sign up for alerts: Signing up for alerts is an ideal choice if you are constantly on your emails or on your phone. You can easily set up a calendar alert or an email alert to make the payment. Furthermore, you can easily track if you have made a payment or not in the previous month.

What are the key steps to getting a small business loan?

Starting a business is as tricky as maintaining one. For one, you need to ensure that your business gets the financial start to move ahead. Furthermore, it would require additional funds to keep your business running, especially during times of expansion, or a new launch of another product.

But while there are several financial products available in the market, business loans make for an ideal choice of financial investment. Not only are they custom made to suit the requirements of your business, they also offer a flexible repayment tenure in accordance with your business’s functioning. Furthermore, they are easily to avail, if you approach the right financial institute or bank.

Here are the different steps you need to follow in order to get small business loan:

Step 1: Understanding the different business loans available

In the financial market, there are multiple types of business loans available. These variety of loans will vary on factors such as your business needs, tenure of the loan, and specific terms of the loan. Through this business loan, you can access a small business line of credit or opt for working capital to finance fluctuations in revenues and expenses depending on seasonality fluctuations. You can even opt for a loan amount that will suit your businesses requirements, and only pay an interest and repayment for that which you use only.

Step 2: Look out for available lenders

Plenty of lenders offer business loans, to businesses both small and big. They are available both online as well as at an institute near you. Some of these lenders include the direct online lenders which cater to small businesses, local community banks that offer a business loan to local businesses.

Step 3: Anticipate how the lender will view your profile.

Normally lenders normally make the ultimate judgement call on whether they should approve a business loan’s application based. This decision is normally based on the borrower’s credit and risk profile. In addition to this, lenders will normally consider additional factors such as the credit score, outstanding loans, cash flows, assets in the business and time in the business amongst many others. Keeping these factors in mind, you can get a vague idea of what you can expect when it comes to your financial profile and thus improve it in the relevant factor.

Step 4: Keep your financial statements in order

Depending on the size of the loan you will be applying for, the lender will consider your financial statements and accounting records. Under this, factors such as your business’s cash flow, gross margin, debt – to – equity ratio and accounts payable amongst many others. You must ensure that it is complete, correct and thorough, and be well aware to answer any question asked by the lender on any of the topics.

Travel card: Know the benefits of cashless travelling

A travel trip abroad will require immense planning, especially in terms of financial expenditures. The first step you need to take is to opt for the best financial instrument that you can utilise during your holiday. While the most obvious option here is to carry physical currency, it may not be the best one. Even traditional options such as the travellers cheques are now outdated.

Nowadays, individuals are now opting to use the travel card for trips abroad. These travel cards, also known as forex cards, are the most recommended financial instruments. These cards function like a normal prepaid banking card. However, unlike other banking cards, you can access the funds on the card through multiple foreign currencies.

In addition to these factors, there are several other benefits you can gain from this travel card, such as:
Portability and convenience: One of the most important profits of the forex travel cards is arguable, the convenience and portability it offers as opposed to physical cash. This card also offers the ideal substation for those who would like to avoid the confusion regarding various denominations in foreign currency. Furthermore, this card can also be used to withdraw foreign currency from ATM’s at a substantial amount, as compared to other banking cards.

Access to a large amount of funds: One of the drawbacks of travelling with cash, is the restricted amount you can carry. You are eligible to carry cash equivalent to only US$25,00 abroad as per the government travel regulations. While this may seem like an immense amount, to others it is a restriction, especially for business travels. In this case, opting for a travel card would prove to be a better option. You can store a lot of funds on the card, with the option to reload the card whenever the funds run out. All you need is to contact your bank, and request for the specific amount to be transferred to your card.

Safety: All travel cards come equipped with a magnetic strip, in order to access the data on your card and hence the accounts. Additionally, a unique PIN must also be inputted in order to access the funds. However, these features alone do not offer the ideal protection. Nowadays, in addition to these features, most of the travel cards also comes equipped with the embedded chip which decrypts each transaction you make, preventing any outside access from decrypting it.

Global acceptance: The usage of credit or debit cards would incur heavy fees, especially with high conversion charges. However, the travel card offers the ideal protection against these conversion rates, making them a popular option for both users and merchant outlets. Furthermore, plenty of outlets does not accept banking cards. In this case, one would only need to approach an ATM and withdraw the required physical cash to make the payments.