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.