How to make the most of RTGS transfer

RTGS or Real Time Gross Settlement is an online fund transfer method that is overseen by the Reserve Bank of India. Through this method, people can transfer funds from one account to another in a real-time basis. Usually, RTGS payment involves a large amount of money and the minimum transaction should include more than Rs. 2 Lakhs. This is why RTGS transfer is reserved for business transactions and transfer of funds from one bank to the next.
RTGS is often considered to be a better option for fund transfer than the NEFT mode, where the clearance does not happen on a real-time basis. Here is a look at some of the ways in which you can take advantage of the RTGS method of payment.

1. Real-time settlement
RTGS transfer is the only option that involves real-time clearance. This means that as soon as you initiate the transfer, the beneficiary accounts will receive the funds instantaneously, without having to wait for the transfer. This is quite beneficial and is different from the NEFT method. In NEFT, the fund transfer is cleared in hourly batches. This means that there is a delay of a few hours from the time that you initiate the transfer till the time that it clears.

2. Online and offline method
RTGS payment can be made online and offline as well. If you are unsure whether you should proceed with the transfer online, you can do the same through the offline procedure as well. This will involve visiting the bank branch, filling out a remittance form and submitting it. However, the online procedure is much simpler, as you will not have to drop by the bank and the entire transfer can be conducted using the internet.

3. No added costs
All other means of fund transfer usually involve an additional cost, known as the processing fee. For instance, in case of fund transfer using demand draft, you would need to first pay for the draft to be created. This is an added cost that you would not have to bear if you choose the RTGS transfer method.

4. No upper limit to transfer
While you cannot transfer an amount lower than Rs. 2 Lakhs using the RTGS payment, the RBI has not imposed any upper limit to the amount that you can transfer. This is very useful for business purposes, as many large companies need a safe and secure way to transfer Crores of Rupees. RTGS offers this option to businesses, unlike all other modes of transfer.
You should take advantage of the RTGS method if you have a business and need transfer funds from one account to another instantaneously. The method can also be used to payy off the salaries of your employees.

Wholesale Banking: What do you know about it?

Wholesale banking refers to the financial system of monetary transaction between two big institutions. Under wholesale banking, services are provided only to government agencies, funds for pension, corporations having strong financials, and institutional customers. These services include cash management, leasing of equipment, big loans, merchant banking as well as trust services. Wholesale banking between two institutional banks takes place on the internet market which often involve huge amount of money.

In addition to traditional retail banking services, many standard banks offer wholesale banking and function as merchant banks. This basically implies that an individual in search of wholesale banking could join in the same bank where he controls his very own retail banking instead of going to a special institution. Modern wholesale banks engage in the following:

• Underwriting
Large specialist monetary organizations like banks and insurance houses offer these services whereby payment in case of any financial loss is guaranteed and they accept the monetary risk for accountability that may arise from such guarantee. An underwriting settlement is usually created in situations like insurance, issues related to securities in primary markets. 

• Wholesale financing
Banks usually rely on customer deposit to offer money that it can give away as loans to its borrowers. With the help of wholesale financing banks borrow additional money that can later be used to expand the business of lending funds above the level of deposits and accelerate interest earnings.

• Market making
A market maker, often termed as a liquidity provider, is an individual or a company that cites both buying price and selling price in a financial instrument in order to make profit on the turn.

• Mergers and Acquisitions (M&A)
These are transactions which combine the ownership of companies, business organizations, or their operating units. M&A allow an enterprise to grow, shrink, and change the nature of their business or competitive position.

• Fund management
Fund management basically means any system that monitors and maintains valuable things to an entity or group.

An easy way to think of wholesale banking is to consider it as a discount store that deals in such huge sum of money that it can present special prices or lowered fees. Large organizations, institutions with huge amount of asset, or business agreements usually benefit more from wholesale banking than from retail banking.

How can you benefit from the education loan in India?

Education is an important aspect for your child’s development and growth. A school helps him be a better human being and choose a career path that suits his personality. However, with the cost of education increasing day by day, parents are finding it difficult to make ends meet.

The problem of educational expense becomes more acute when we enter higher education where there is fierce competition among students and few colleges and universities providing good education.

Therefore, the solution for educational cost is taking an educational loan to fulfill your dreams and desires. However, educational loans can be overwhelming to a student thinking about higher education either a MBA or post graduate studies abroad. To help budding students pick the correct educational loan, here are some pointers to guide you:

 Covers the Cost of your Education- When you take an educational loan from a bank, it will not help you financially but cover 90 per cent of your educational expenses. They cover not only tuition fees and exam and library fees but other incidental costs like your hostel expenses, book charges and travelling expenses.

 Parents are Relieved of the High Educational Cost- Higher education has become an expensive affair. For students opting for higher education like MBA in India, the expenses become a burden on the parents. Moreover, some parents may not have the capacity to sponsor their child’s education dreams. The solution to such problem lies in getting an educational loan.
  
 Tax Benefits- Educational loans in India are eligible for tax benefits. Under section 80C, the interest payable on your educational loan can be claimed as tax deductions by the student taking the educational loan.

 Happy Period- The educational loan that you have taken from the bank will start to add an interest rate once you get a job after your higher studies. The student is given a period of 6 months to 1 year depending on the bank to repay the loan amount after he or she has got a job. This period is termed as happy period.

 Helps you More Responsible- An educational loan will make you more responsible as an adult and towards your finances. It makes you aware of monetary matters and makes you focus on your studies so that you get a good job and is able to repay your loan.

 Female Advantage- There is a rule that states 0.05 per cent discount on educational loans for girls.
There are numerous educational loans for Indian students from various banking institutes.So, if you have been contemplating studying MBA or postgraduate study and are worried about finances, then an educational loan is the way to go.

Tricks to keep your bank account safe

Technology has many boons as well as demerits. While we laud technology for making our life easier, there are some loopholes in it that can make our life difficult as well. Scamming is one of them. Often we hear about so and so losing a significant amount of cash to the vicious hands of scammers. Remember you can also fall prey to such duplicitous activities and lose your hard-earned money. But how can you prevent that from happening? All it takes is a little bit of alertness on your side. Going cashless sounds cool and it is also very convenient in an urban setting, but becoming literally cashless can take a toll on your life. Therefore, follow these tips when you are conducting monetary transaction and keep your bank account safe.

1. Look for skimmers on the ATM machine: You can access all types of bank accounts using an ATM machine, a quality that makes ATMs a go-to option. But did you know that scammers can install a sinister device called skimmer in an ATM machine that is designed to collect all your bank accountdetails as soon as you enter the card in the card reader slot? Yes, skimmers are real and so should be your alacrity. If you find something off about an ATM machine, like mismatched colors around the card reader, scratches on the ATM machine, immediately talk to the bank. You should also address the financial institution if you find something unusual while inserting the card inside the slot.

2. Do not divulge bank details over call: A scammer might call you in the guise of a representative of a telecommunication company, a bank or any such institutions. These calls are meant to sound plausible, and often, the scammer will try to extract the bank details from you. But never let yourself be duped. If you get such scam calls, do inform the police.

3. Hide your ATM pin: The skimmers usually have cameras installed on them. The device uses the camera to capture the details. But, while you enter the pin, if cover the screen with your other hand the camera will fail to capture the image.

4. Use your card yourself: Remember all types of bank accounts are prone to getting hacked anywhere and by anyone. Therefore, if you are paying online, swipe the card yourself. Because, often the attendants in restaurants, bars and retail shops run your card through a skimmer when you are not looking. Therefore, always be vigilant.

5. Check your balance: You should keep record of your account balance from time to time. If you observe any unexplainable depletion, address the issue to the bank immediately and take legal actions if need be.

Keep your guards up 24x7 to save yourself from unnecessary harassments.

How to revive lapsed life insurance policy?

Life insurance serves as a form of security for your loved ones, in the case of your death. As life is unpredictable at times, it is always better to stay prepared against any eventuality rather than take any risk. However, a life insurance plan needs to be renewed after specific periods, for it to stay in effect.
Reviving such a policy can be difficult, especially if you are not aware of the intricacies of the same. Here is a look at some of the ways in which you can renew a life insurance policy even after it has lapsed.


Ordinary revival
This is the simplest form of revival for a life insurance plan. To do this, you will have to pay off all the unpaid premiums and the interest at once. However, the company may ask you to provide a proof for good health and medical report. So, keep these documents ready if you are planning to follow this route.


Specialized revival
This particular revival allows you to pay just one outstanding premium in order to renew the policy, depending on your age. Such a revival is only possible for people who do not have the financial backing to clear all of the unpaid premiums at one go. However, even in case of the special revival, you may be asked to provide proof of health.


Instalment revival
If a person is unable to clear premiums under the ordinary and special revivals, he/she can also opt for an instalment revival. This revival allows the insured to clear the payments in a yearly, half-yearly and quarterly instalments. Under such a revival, you can take advantage of a hassle free premium payment.
Here are some things to consider before you opt for a revival of the life insurance policy.


1. You can only revive a life insurance policy if a long time has not passed since its lapse.
2. Aside from having to pay off the outstanding premiums, you will also have to pay a penalty fee, based on the time that has passed since the lapse of the plan.
3. If you are suffering from a medical condition, a proper medical report detailing the seriousness of the condition may be required while you apply for a revival.


Even though you would need to pay off all the premiums with interest, it is always better to revive a life insurance policy. However, try to avoid a lapse in the first place and pay your premiums regularly, so that you do not have to undergo the hassle of reviving the plan.

What are the benefits of IMPS and why you should take advantage of them?

With growing popularity of mobile banking and IMPS transfer, it has become easy and convenient for common man to transfer funds whenever they feel like. Even if you’re low on cash or do not have time to withdraw money from your bank  at the need of an hour, you can transfer money from your cell phone using IMPS service and save some time!

IMPS or Immediate Payment services is electronic interbank instant mobile money transfer service which can be done using the user’s cell phone. It is the most simplified and trending money transfer facility in the today’s world. Let’s take a look the vast benefits of IMPS and mobile banking which we should definitely take advantage from:

• 24x7 Real time money transfer
While National Electronic Fund Transfer (NEFT) takes up to 3-4 hours to transfer money depending on bank to bank, IMPS is real time money transfer service which means using IMPS you can instantly transfer funds to other accounts. You can transfer fund using IMPS 24x7 even when the banks remain closed on national holidays or Sundays. This is probably the most crucial advantage of IMPS.

• Transaction limit
Although different banks hold different transaction limits depending on the customer profile, Real Time Gross Settlement (RTGS) allows you a minimum transfer of Rs.2 lakh and a maximum amount of Rs.10 lakh while transaction limit for IMPS is Re.1 to Rs.2 lakh.

• Available through multiple channels
IMPS provides you options of transferring funds through multiple channels like ATM, Net banking, SMS, USSD, Mobile application. You don’t need to step out and stand in long queues in the bank. Just one click and you’re done with paying your bills- be it utility bills, travel tickets, online shopping, movie tickets, grocery shopping etc. In fact e-commerce companies largely promote mobile apps and offer heavy discounts, for which IMPS can be used to make payment through mobile application.

• Mobile banking
In order to transfer funds via IMPS, a 7-digit MMID pin is required for which all you need to do is go to ‘mobile banking’ option on your phone, select your desired bank account, select IMPS and click on MMID. As soon as the details of your account are validated, the money will be debited from your account and a SMS alert showing the transfer status will be sent to your phone.

• NRI customers
IMPS  allows NRI customers to transfer funds from their account to the account of those residing in India.

With these key features, IMPS has gained immense popularity over the years and has benefitted common man like never before. It is time-saving, user-friendly, and has brought the commercial banks at our doorstep.

How to take gold loan against gold

Acquiring loan against gold is the quickest and safest possible way. It is a simple, hassle-free procedure and it can be used to avail of a loan to meet any kind of emergency, like higher education for your wards, expansion of your business inventory, paying EMI bills for any of your recent purchases, or for confronting medical crisis. Here is how you can get loan against gold.

1. Value of the gold: The loan that the bank provides you is directly related to the value of the gold. The loan will be given also on the basis of your income, because the bank needs to look into your repayment capability. Instead of gold jewelleries, if you secure other gold items like a gold bar or a gold coin, you will reap the benefits of a better valuation.

2.  Documents: Like all other bank-related procedures, a gold loan also calls for documentations. You can either fill in the application online or you can submit your personal details with the bank. You will probably have to provide PAN/Aadhar card details, address proof, identity proof etcetera to get a gold loan.

3. Signing of Agreement: Once the value of the gold is evaluated the bank takes the gold from you and keeps it in a secured vault. It remains that way until you have cleared the loan. The clearance of gold loan in India can be done over a period of 12 to 18 months depending on the bank.

4. Interest: Most of the banks in India, charges nominal loan interest rates against goal.
  
5. Extra payments: You might have to make extra payments other than the complete loan with the interest, which pertains to loan processing charges and gold valuation fares.

6. It is a very quick procedure: Like other types of loans you do not need to wait for long to get a gold loan. You receive it usually on the day you deposit the gold with the bank.

7. In case of default: In case you fail to repay the loan within the tenure the bank keeps the gold and uses it in whichever way it finds fit. And if you do clear the loan on time, the gold is given back to you in the same condition.