Debit Card payment or ATM cash withdrawal is very common these days. Trust me the payment systems in India is one of the securest in the world. Thanks to the Govt and RBI for the steps taken. In India, we have two step authentication for online payment, unlike outside India therefore it is more secure. As i shared in previous posts that the payment through debit card is same as a cash payment from your savings account. There is a big debate whether to use a credit card or debit card for online transactions. I discussed the same in my post, Why I Prefer Credit Card Payment over Debit ... Read More
NRI Property Investment – 11 Important Guidelines to Follow
NRI Property Investment is the most discussed but least understood topic. The reason being, it is perceived to be too complex. The rules and regulations governing NRI Property Investment are different. In this post, a reference to NRI includes PIO (Person of Indian Origin) and OCI (Overseas Citizenship of India) until unless specified. Till date, i have observed two key reasons for NRI Property Investment. The primary reason is NRI's would like to settle in India after retirement. Secondly, they still feel safe and secure to invest their hard earned money in India compared to the country of ... Read More
Financial Fraud – Beware of 5 New Tricks from Tricksters
Financial Fraud is now an organized sector. In past, i wrote various posts on how to avoid credit card frauds and safety of banking transactions. Daily the tricksters are finding new ways of financial fraud. The victim is caught unaware. The biggest problem is that victim does not know what to do in case of financial fraud. In a recent case, one of my clients became a victim of financial fraud through net banking. He went to local police station to register FIR. The police official refused to register his complaint/FIR. When the victim insisted, the police registered NC. The police told him to ... Read More
New Lending Rate – Five Loopholes RBI Should Have Fixed
The new lending rate regime based on Marginal Cost of Funds will be implemented from April 01, 2016. There is a lot of anxiety among both potential and existing borrowers. It is because of uncertainty about the new lending rate. The key concern of a borrower is that we should not miss the bus. The new borrowers are postponing the home loan in anticipation of much lower interest rates. On the other hand existing borrowers are worried that banks may charge hefty conversion fees to shift them from Base Rate to new lending rate i.e. MCLR. This kind of anxiety was last seen when base rate replaced ... Read More
Home Loan Myths – Top 7 Myths Every Borrower Should Know
Home Loan Myths as the name suggests are the misconceptions about Home Loan. I tried to found out who all are responsible for home loan myths. My conclusion is that primarily three factors are responsible. The first one is a lack of knowledge of Bank/HFC (Housing Finance Company) employees. Secondly, the people around us who pass half baked information thus responsible for the viral effect of home loan myths. Till date, i have not come across a single person in my acquaintances who told me "I don't know". You can discuss anything and everything on this planet with people around you. They will ... Read More
Marginal Cost of Funds based Lending Rate – MCLR
The final guidelines on Marginal Cost of Funds based Lending Rate is released by the RBI on Dec 17, 2015. The Marginal Cost of Funds based Lending Rate will be implemented w.e.f April 01, 2016. There was strong opposition from banks to implement Marginal Cost of Funds based Lending Rate. The objective of RBI is to pass the benefit of REPO Rate cut to borrowers. As i mentioned in my other posts that in last one year, RBI has cut REPO Rate by 125 basis point. On the other hand, an average base rate cut by banks is only 70 basis point. Technically, the Repo rate cut is not fully transmitted to ... Read More