All you need to know about RTGS transfer

Real Gross Time Settlement or RTGS is a mode of electronic transfer through which transfer of money happens on a real-time basis. In India, RTGS transfer is used for high-value transactions. The minimum amount that needs to be transferred is INR 2 Lakh. The beneficiary account receives the amount immediately i.e. in real time. RTGS payment is becoming very popular in India, because of its speed and convenience.

The chief difference between NEFT and RTGS is that in NEFT, the transaction takes place in batches whereas with RTGS the gross amount is transferred in one go. If you want to use RTGS, then you need an Indian Financial System Code (IFSC). Both the bank branches, the initiator and recipient, need to be RTGS enabled for the transaction to proceed.

If you have an online bank account, then you can utilize RTGS to make transactions by yourself.

Here is a breakdown of how RTGS works-

The whole process of RTGS transfer starts with you adding a beneficiary. If your transaction is online, then enable both Third Party Funds Transfer and internet banking facilities.

Here is how you add a beneficiary for RTGS payment-

1. Log in to your bank’s net banking website with your customer ID and password
2. Click on the Funds Transfer tab
3. Click on Add Beneficiary
4. Then click on Transfer to other Bank
5. Click on Beneficiary’s IFCS using the bank and branch names
6. Click on Add
7. Then Click on Confirm
8. After you authenticate yourself, you will receive a confirmation message

This is what you need to do to make a transfer through RTGS-

1. Click on the Funds Transfer tab and select Transfer to other Bank
2. Then select the account, your Beneficiary and enter all the relevant details
3. Click on ‘I accept the Terms and Conditions’
4. Go over the details of the transactions before you complete the transaction

Further information on RTGS transactions-

• Because of security reasons, The Beneficiary will be activated after 30 minutes. Your beneficiary will be displayed in the ‘View Beneficiary’ segment
• RTGS transactions will take place 24 hours after Beneficiary activation
• You can add or modify a maximum of 10 beneficiaries in the span of 24 hours

RTGS is a revolutionary technology that is immensely helpful in transferring a large consignment of money in real time with no hassles.

Documents required when you apply for a new car loan

You have decided to buy a new car. You have gone on multiple test drives, and you have finally zeroed in on the car that suits you.  Now you need a new car loan. With affordable EMIs, reasonable interest rates and hassle-free paperwork, more and more people are opting for a loan these days. With a car loan, the dream of having your own car is no longer far-fetched.

Before you head off to the bank to apply for a new car loan, you should know if you are eligible for a car loan and which documents you need to present to be granted a loan.

Are you eligible for a car loan?

Every bank has its own set of criteria through which they decide if you are worthy of being given a loan. They will want to look into-

• If you earn the minimum salary they stipulate to give a loan
• The yearly turnover of the company you work for
• The number of years for which you have been employed. If you are a salaried employee, you need to be employed for 2 years before you can apply for a loan.
• If you are self-employed, or in case of proprietorship partnership, your company should have a turnover of INR 300,000

Which documents do you need to produce to the bank authorities?

The documents that a bank will require depend on your source of income. You should consult your bank to get an exhaustive overview of the documents you might need. A bank wants to know if you have a good credit score to determine whether you would be able to repay the loan. Your income and your credit score also determine the interest rate that you will be charged.

Usually, these are the documents that you should have at hand if you are thinking of getting a new car loan-

• Proof of Identity (Aadhar, Telephone/Electricity bill, Passport)
• Proof of Address  (Aadhar, Telephone/Electricity bill, Passport)
• Proof of Income (Bank statement for the last 6 months, Salary slip and form 16, Income Tax Returns for self-employed people)
• Passport sized photograph
• Signature verification proof
• Pro forma invoice
Post-sanction paperwork and documents-
The paper trail does not end with the loan being granted. The follow-up paperwork includes-
• The loan agreement signed and sanctioned
• Margin money receipt
• Standing Instruction or SI, Post-dated Cheques, ECS Form, Security Cheques for SI and  ECS form etc

The documents that a bank needs proof that you are an Indian Citizen and that you are creditworthy enough to apply for a loan that you can pay back in due course. Do not hesitate to apply for a new car loan; it is about time you indulged in yourself and brought yourself that new car you had been longing for.

Features of NRO account you need to be aware of

If you are an Indian citizen living abroad on a permanent or long-term basis, you can still use banking facilities in this country. However, you will not be able to use the regular facilities available to resident Indians. There are special accounts that suit residents of India who live abroad better. An NRO account or Non-Resident Ordinary Rupee Account allows you to save your earnings or savings in India, in Indian currency. They are especially suitable form NRIs who have investments in stocks in India or another form of income where they earn Indian currency.

NRO Account Features

The key features of an NRO account are as follows-

• Deposits in denominations of Indian Rupee are allowed in this type of account
• You can open such an account jointly with a resident of India
• You can hold your NRO account in the form of savings account, current account, recurring deposits, and fixed deposits
• This account pays an attractive interest. The interest is not free from taxes, including all surcharge and educational cess
• You can convert your existing account in a bank to an NRO when you settle abroad. On returning to India, you can transfer the account back to a regular banking account
• The account allows nomination facility
• It is a non-repatriate account. Therefore, you cannot transfer money to or from this account to your NRE account. Neither can you transfer money to any account you hold abroad. However, you can transfer money to a different NRO account or a resident’s account.

Benefits of an NRO Bank Account

The benefits of an NRO bank account include the following-

• You are eligible for free chequebook and ATM card on opening the account
• Interest rates in an NRO account are higher than regular resident accounts
• Your existing investments in India can continue to reap returns as usual
• If you have a source of income in India, it can only be stored in an NRO account and not in any other type of NRI account
• You can keep your income in India and that abroad completely separate through an NRO account

Since it is illegal to hold a resident account if you are an NRI, an NRO bank account is compulsory to hold your income in Indian Rupees. With the advantages of jointly holding the account with a resident, you can ensure your loved ones in India have regular access to cash even when you are not in the country.

Most NRO accounts offer complimentary facilities and added benefits that you can enjoy all over the globe. It certainly makes banking simpler and convenient for Indians residing abroad.

5 best payment apps for easy money transaction

A Unified Payment Interface or UPI is a payment portal that allows easy money transfers almost instantaneously. It eliminates the need of visiting banks and saves time by saving your sensitive information. The regulation of the interface by the Reserve Bank of India makes it incredibly safe. More and more payment apps are being developed and improved to make payments simpler and convenient for people across the country. Here is a list of the best performing payment apps that make money transfer super easy and quick.

1. Paytm
This is the largest platform for payments. It has a digital wallet the lets you make payments quickly without having to input too many data. With Paytm, you can pay your bills, buy everyday utilities from shops, book tickets for travel, movies etc. You can also transfer money from one Paytm wallet to another Paytm wallet easily.

2. BHIM App
The BHIM App is among the simplest payment apps that suits a large population of people in India. Developed by the National Payments Corporation of India, it is available on Play Store free of cost. The attractive blue icons on a white background make the app simple to navigate and user-friendly.

3. PhonePe
When it comes to features, PhonePe has several attractive ones. You can pay using your UPI ID, mobile number or bank account details. You can use this app to make payments, recharge phone and buy tickets.  For, every transaction, you get cash backs and rewards. It has features that allow you to make payments, check balance, reset your UPI PIN, and even add as many bank accounts as you wish. The interface is very simple and first-time users can handle the app with ease.

4. HDFC Chillr
This app by HDFC Bank allows you to transfer money instantaneously. You can make payments or transfer money to anyone in your phone book, a feature unique to this app. This makes the payment process faster as you do not need to waste your time adding a beneficiary. Through this money sending app, you can make payments, send or request money, recharge and split bills. However, the services are available to the customers of HDFC Bank only.

5. Tezz App
This is Google’s take on payment apps and is becoming popular rapidly. The app is very simple to use and incredibly user-friendly. The app is very secure, with a fast payment. The reward program offered by Tezz attracts many people to use this app. You must link your bank account to the app to make payments and transfer money. The unique cash mode sets up a wireless connection, just like Bluetooth, so you can make payments to a beneficiary in the same location.

With these payment apps, you can easily transfer money and get rewards on every transaction. These money sending apps combine efficiency, security, and speed, which is perfect for luring several people.

The apps not only save your time but also money. They eliminate the need to carry cash that you may lose or that might be stolen. If you are considering shifting to digital modes of payment, you can well consider using one of these apps to make your payments.

Why you should use a gold loan calculator before applying for one

Gold is an essential part of almost all Indian families, big or small. Taking loan against gold has been an established practice even before formal banking was established. Until today, it is among the best options for taking a loan against collateral. It is easy to get approval and comes in handy during emergencies.

A lot of banks and non-banking financial companies offer gold loans at lower rate of interest compared to a personal loan. Other advantages include flexible tenure and minimal document requirements. However, you must always use a gold loan EMI calculator before applying for one.

How to Use a Gold Loan Calculator

• Since gold prices fluctuate, the value of your jewellery will determine the value of the loan you can get
• To get your jewellery back, you must be able to repay the principal amount as well as the interest in the form of Equated Monthly Instalments (EMIs)
• With data such as loan amount, the rate of interest and tenure, you can get an accurate idea of the EMI you will have to pay each month
• Instead of the amount, some calculators allow you to input the details of each of the gold jewellery you wish to use as collateral. You have to enter details such as the weight of the jewellery and the purity of the gold.

Why Should You Use a Gold Loan Calculator?

Here are some of the reasons why you should use a gold loan calculator before taking a loan against gold-

• It makes tedious calculations fast and free of human error
• With the calculator, you can play around with various combinations of the three (the principal, the rate of interest, and the tenure) until you find the EMI you can afford to pay without taking additional financial burden or risking defaults
• You can compare the EMI you have to pay for different lenders and choose the lender accordingly
• The gold loan EMI calculator uses the prevalent valuation of gold for the calculations
• You get an idea of the Loan to Value ratio (LTV ratio). The higher this ratio is, the more risk you are taking with your gold.
• The calculator gives you a break-up of the repayment structure of the loan
• By knowing the EMI before you take the loan, you can make necessary adjustments to your budget to accommodate the loan

Since the gold loan is a secured loan, it does not usually require income proofs or CIBIL score. However, you must be careful with the collateral otherwise, the chances of being duped are real. Do your research on the lender and check LTV ratio and EMI with the gold loan calculator. Making an informed decision helps you easily repay the loan by budgeting accordingly. So never skip the crucial step that can jeopardise your treasured gold jewellery.

Advantages of using RD interest calculator

A recurring deposit is a form of investment that enables investors to save money through monthly payments. This money reaps attractive interest and is generally more flexible in comparison to fixed deposits. If you want a safe investment that allows you to save money for rainy days, this proves very convenient. However, if you earn an interest of more than Rs. 10,000 in a year, you attract a 10% tax deduction at source.

How to Use an RD Interest Calculator

Here are the steps to use an RD Interest Calculator-

• You can calculate the amount you get on maturity, i.e. the sum of principal and interest you get at the end of the recurring deposit term
• You must input values such as deposits every month, tenure, and rate of interest to get an instantaneous result
• Recurring deposits are compounded on a quarterly basis. The rate of interest varies between 7% and 9%. The interest may be higher for senior citizens.
• The formula used for calculation is M = Rx[(1+i)^n-1]/[1-(1+i)^(-1/3)]. Here M stands for the amount you will receive on maturity. R is the instalment you pay every month and ‘n’ is the number of quarters. ‘i’ stands for the rate of interest.
• You can alter the values of the variables to come at a target maturity amount that meets your financial goals
• There is no restriction on the number of times you use the calculator
• The RD interest calculator will not show the TDS eligible for deduction

Advantages of Using an RD Interest Calculator

The multiple advantages of using an RD Interest calculator are-
• You can calculate the instalments you need to meet every month to fulfil any upcoming financial requirements
• You can calculate the time for which you need to open a recurring deposit to meet a short-term goal
• If you pay Income Tax, using an RD calculator helps you predict the changes in the amount of taxes you must pay
• You get an idea about how much you can grow your wealth with a recurring deposit
• You get to compare the recurring deposit schemes offered by various banks and can choose the one, which profits you the best

If you are saving for a financial goal such as annual education fees, a recurring deposit is a very suitable choice. Although your liquidity is limited, you get the opportunity to accumulate every month. Using the Recurring Deposit calculator, you can ensure that you meet the financial goal within the time constraint. An incredibly handy tool, you can use an RD calculator free of cost.  Since the calculation of maturity amount is the same irrespective of the bank in which you have your account, it has a universal application.

Process and benefits of using NEFT fund transfer

NEFT or National Electronic Fund Transfer is an easy and convenient process, which allows any individual or company to transfer money from a bank to another over the internet. It is relatively fast and on an average takes 1 hour for successful transfer.
Although there is no limit to the number of transactions you can do in a day, there is a maximum limit of Rs. 50,000 per transaction.

The transfers are extremely secure and take place in batches. The transfers take place in about 12 batches on a weekday between 8 am and 7 pm and around 6 to 8 batches between 8 am and 1 pm on a Saturday.

The process of NEFT Transfer

• Transactions through NEFT are only possible when both the remitting bank as well as the destination bank is a part of the NEFT network
• You must first ensure that you have net banking facility active on your bank account
• Log in and go to the relevant section of your profile that deals with NEFT transfer
• Enter the details of the beneficiary such as their name, account number, IFSC code, and address in the relevant fields
• On accepting the terms and conditions and confirming the data you just provided, a security password will be sent to your registered mobile number
• Once you enter the security password, a link between you and the beneficiary’s account gets active up to 16 hours
• Remember to select Inter Bank Transfer and NEFT as the type of fund transfer. Finally, enter the amount and confirm the transfer.
• You get intimation on the successful transaction

This process is also possible offline by filling up a NEFT form available at all banks within the NEFT network.

Benefits of NEFT Transfer

• It is a time-saving process
• It makes banking so much more efficient. No longer do you have to wait in long queues and count cash for doing a transaction.
• You can transfer a large sum over a secure network
• Since the process is paperless, there are fewer chances of fraud or theft. Moreover, it is environment-friendly.
• Money transfers can take place from the convenience of your home or office

NEFT is a system of fund transfer that has simplified banking. It has also revamped the image of banks from time-consuming to efficient. The high security of this process of fund transfer makes it all the more attractive. If you are in a hurry to make a payment or cannot go to the bank, NEFT is a blessing for you.