What is IMPS – Immediate Payment Service?


In my opinion, IMPS is path breaking technology for Money Transfer. In last 10 years, the overall experience of money transfer has changed drastically. I remember standing in long queue for an hour or so to transfer money. To be very honest with you, i started this post as a Social Media Money Transfer but mid-way i changed the topic to IMPS (Immediate Payment Service). To understand social media money transfer, it is critical to understand IMPS (Immediate Payment Service) first. I tried to squeeze both IMPS and¬†Social Media Money Transfer in the single post, but i was not able to do justice to IMPS. I decided to dedicate this post to IMPS and next post will be dedicated to¬†Social Media Money Transfer. Let's check what is IMPS or Immediate Payment Service. IMPS (Immediate Payment Service) IMPS (Immediate Payment Service) is most simplified money transfer facility as on date. It is started by NPCI i.e. National Payments Corporation of India. Though it projected as Mobile Money … [Read more...]

Why You Should Opt Out of LPG Subsidy?

LPG Subsidy

LPG Subsidy, as the name suggests, is the financial aid extended to an individual for promoting economic or social agenda. In short, product / service is offered below the cost price. The difference / Subsidy i.e. Cost price minus Sale Price is borne by the Govt. Which in turn put the strain on Govt finances because Govt is spending more compared to its earning. As the subsidy is financial aid therefore it should be need based rather blanket offering. Financial aid is always provided to those who need it. Sometime back i wrote a post, How to link Aadhaar to LPG Connection Online. It gave me an opportunity to understand the LPG subsidy in a more pragmatic way. LPG Subsidy is the perfect example, how we are exploiting the govt resources. The basic psychic of average Indian is to get for FREE whatever max he / she can get. It is irrespective of the fact whether we need it or not. No offense to anyone but its a fact of life. I have seen well-off people fighting to waive off Rs 15 parking … [Read more...]

8 Ques You Should Ask Home Loan Provider

Home Loan Provider

Home Loan Provider in India is normally finalized based on the reference or word of mouth. There is no harm in taking references or feedback from friends and family members. It helps in better decision-making. In most of the cases, it is the builder who decides Home Loan Provider of a buyer. He has vested interest in this entire process as builder receive cut or commission to promote particular Home Loan Provider. Secondly, he doesn't want you to initiate Title Search or Legal Check Process again. Some of the common tactics of the builder to pressurize buyer are Documentation, Payment Deadlines or everyone else is availing Home Loan from same¬†Home Loan Provider.¬†In the financial world, Trust and Pressure are 2 biggest enemies of an investor. I am not saying that you should not trust anyone. But, the final decision should be yours and after your own due diligence. If you will allow someone else to take decisions on your behalf or take any decision under pressure then you will end up … [Read more...]

Secured Credit Cards – Repair CIBIL Score

Secured Credit Card

Secured Credit Card is a Blessing in Disguise. Why i said this because Life is unforgiving and so as Poor CIBIL Score / Credit Score. Once an individual is in this sad situation, it is very difficult to come out. A borrower is at the mercy of a lender for CIBIL Score. There is no place for human emotions in the mortgage industry. In many cases, i observed that there was "No" intent of a borrower to default on payment. Such a default is also known as non-willful default. The irony is that both willful and non-willful defaulters are being beaten with same the stick. In case of non-willful default, the intention of a borrower is to clear the dues but he just need a little support to put his financials back on track. Banks and financial institutions treat him like a criminal. In such cases, CIBIL Score can be easily spoiled but it may take years to repair the CIBIL Score. It reminded me of my childhood days. We used to spend hours to build a house from clay, mud etc, but some "bully" kid … [Read more...]

Why you should buy Long Term Debt Funds?

Debt Funds

Long Term Debt Funds will deliver Double Digit Returns reads the headline on popular finance portal. This is one of the examples, In last 3-4 months, you must have come across similar headlines multiple times if you are a regular investor. I read almost all such articles, but none of the articles answered Why i should buy Long Term Debt Funds?. At max, the reason given was that with the drop in Interest rates, Bond yield will drop which will increase the Bond Prices. In short, Drop in Interest Rate will benefit the Long Term Debt Funds the most as they invest in Government of India Bonds and Corporate Bonds of long term maturity. Though there is no standard definition of Long Term Debt Funds but in my opinion any debt fund with Average Maturity of more than 10 years can be safely termed as¬†Long Term Debt Funds. These funds are normally benchmarked against the G-Sec yield of 10 years or Govt of India Bonds. As of today, the yield of 10 year G-Sec / Bond is 7.799%. Movement of Average … [Read more...]

7 Advantages of Availing DigiLocker Service


DigiLocker,¬†as the name suggests, is the Digital Locker launched by the Department of Electronics & Information Technology (DietY), under the Ministry of Communications & IT. DigiLocker is a cloud storage and is one step forward towards dream of Digital India. Now you must be wondering, we already have cloud storage services like Dropbox etc then why we need 1 more. The answer is very simple,¬†DigiLocker is a cloud service to avail Govt Services, which can be used for personal storage also. I am not going to discuss signup process in this post as it is very simple and DIY. You may CLICK HERE to sign up for DigiLocker. Other 2 links to access DigiLocker are¬†http://elocker.gov.in/ and¬†http://digilocker.gov.in/ DigiLocker - Imp Points for Sign Up 1.¬†DigiLocker can be accessed only if you have Aadhaar Card. 2. Registration is only possible through Mobile No and Email linked to Aadhaar Database. If your email and mobile no have changed then you should get it changed in Aadhaar … [Read more...]

Impact of Base Rate Cut on Home Loans

Base Rate

Impact of Base Rate Cut on Home Loans¬†is the hot topic these days. RBI surprised twice by out of cycle Repo Rate cuts of 25 basis points each or 0.25%, Banks were reluctant to cut Base Rate. Despite the public displeasure of both RBI and the Govt, Banks stood firm on their stand. As i highlighted in my post that RBI is King without Kingdom, a very little can be done by RBI in this regard. Rather i will say, its a cartelization similar to that of Telecom and Airline Companies. Only 2 banks i.e. Union Bank of India and United Bank of India cut the base rate to benefit customers. As these banks are minnows in Home Loan segment, therefore, there was no impact in Home Loan Segment. The big question is when there was an increase in Repo Rate, Banks were proactive to increase the Base Rate. If the increase in cost of funds is almost in proportion to an increase in Repo Rate then why it is not decreasing in same proportion. "Banks bow to RBI Pressure" reads the headline of one of the leading … [Read more...]

Gift Cards – A Perfect Alternative to Gifts

Gift Card

Gift Cards, as the name suggest is cool and new age alternative to Physical Gifts and Cash. Cash was favorite mode of gifting during my childhood days. In fact, every household had 1 secret diary in which cash gift records were maintained, not for income tax purpose :). What to gift was dependent on What we received as a gift...It was more of a business transaction :). In India, gifting is not need based but linked to social reputation. Even the 1st thought which run through recipients mind is what is the value of the gift received. As per Human Psychology, Perceived value of Cash is much higher compared to other Gifts. Perceived Value is directly proportional to the utility. Cash has high utility therefore perceived value is high. According to some studies, In non-cash segment perceived value of Books as a gift is lowest among all the gifts. On the other hand, Kitchen appliances have very high perceived value. Reason being, even if the kitchen is full of appliances you always need … [Read more...]

How to Link Aadhaar Card to Voter Id Online?

link aadhaar card to voter id

Recently, an imp news article which went unnoticed was Election Commission's guidelines on "To¬†Link Aadhaar Card to Voter Id". After Aadhaar is linked to LPG Connection, It is next important milestone. I do agree that there were glitches in online seeding of Aadhaar to LPG Connection. But we have to understand that projects of this scale and in the geographically vast country like India, it is very difficult to execute. Moreover, we cannot blame Govt for operational issues. The govt employees who were responsible for execution can be blamed. Though i was the 1st one to seed my Aadhaar with LPG but after waiting for one year, finally i submitted physical documents to the distributor :). No complaints, It was brave and honest attempt. This time it seems election commission has learned lessons from LPG experience. The process to¬†Link Aadhaar Card to Voter Id aka Aadhaar Seeding 2.0 seems to be more robust and convenient. This drive to Link Aadhaar Card to Voter Id¬†is named as National … [Read more...]