Way 2 Money Transfer with in minute!!

What is IMPS?

Immediate Payment Service (IMPS) is an instant, interbank (similar to NEFT) electronic fund transfer service that can be initiated only through mobile phones or online banking or SMS

All domestic bank account holders who have registered mobile numbers can send and receive money using IMPS. Money can be sent via SMS channels or Mobile or Online

Beneficiary details required are:
a. Beneficiary’s mobile number as registered with his/her bank
b. Beneficiary’s Mobile Money Identifier (MMID)
or
a. Beneficiary’s Account number
b. Beneficiary’s IFSC code

What is MMID or Mobile Money Identifier?

Mobile Money Identifier (MMID) is a random seven digit number issued by banks to their customers. If you wish to send money using IMPS, you should have the mobile number and MMID of the beneficiary (person whom you wish to send money to). If you wish to receive funds using IMPS, you should generate an MMID for your account and share this with the remitter (person whom you wish to receive money from). You can generate only one MMID per account. 

All IMPS transactions executed through Mobile or Online or SMS using Mobile number and MMID or Account number and IFSC code have a combined daily limit of Rs.50,000/-. One-time fund transfers through IMPS via SMS or Mobile have a daily limit of Rs.1000/-.

While sending money using IMPS, how do I come to know that my account is debited and funds have been credited in the beneficiary’s account? 

You will get a confirmation SMS on your registered mobile number which informs you of the debit in your account.

While receiving money using IMPS, how do I come to know that funds have been credited to my account and the remitter’s account has been debited?

You will get a confirmation SMS on your registered mobile number which informs you of the credit in your account.

What happens in case a wrong beneficiary mobile or beneficiary account number is input during a transaction?

Immediate Payment Service (IMPS) is an instant, interbank (similar to NEFT) electronic Fund transfer service that can be initiated through mobile phones or online or SMS. The beneficiary details required for sending money are mobile number and MMID or Account number and IFSC code. The transaction will get declined in case any one of these two numbers is erroneous and the transaction will get reversed instantly. 

What are the timings for initiating and receiving IMPS remittances?

IMPS is a 24x7 service. IMPS transactions can be sent and received at any time and any day. There are no timing or holiday restrictions on IMPS remittances.

If the transaction is not completed successfully when will the money be returned?

The funds will be returned immediately for unsuccessful transactions. There might be cases where status of the transaction cannot be determined immediately. In such a scenario, the reversal of funds will happen on the next working day.

When can I use the funds received through IMPS?
The funds received through IMPS can be used immediately upon credit.

Can I withdraw and / or deposit money using IMPS?
No. Deposit and withdrawal of money cannot be done using IMPS.

What are the charges for sending and receiving funds using IMPS?
There are no charges for sending or receiving funds using IMPS.

Are there any subscription charges to avail of the IMPS facility?
There are no subscription charges. IMPS can be availed free of charge. SMS and GPRS charges for using the service via the mobile phone apply. 

How can customers get MMIDs for their accounts?
Customers can do this way:-
SMS: Customers need to send MMID XXXX to 52484 to generate MMIDs for their accounts. XXXX denotes the last 4 digits of your Debit Card Number.
 

If MMID is already generated then this will retrieve the existing MMID.

How can customer delete the MMID for their accounts?
Modified - Customer can do this way:-
SMS:
Send MMIDCANCEL <7-digit mmid=""> to 52484 to delete the MMID

If mobile number gets updated what needs to be done to receive funds?
Customers need to share the new mobile number and the existing MMID with remitters in order to receive funds. Customers can also alternately use the account number and IFSC code combination of the beneficiary to transfer funds using IMPS.

For more information, please refer to below links
http://www.npci.org.in/aboutimps.aspx 
http://en.wikipedia.org/wiki/Immediate_Payment_Service

RGESS Tax Saving Scheme – Too Complicated !

RGESS or Rajiv Gandhi Equity Saving Scheme is the new tax saving scheme, for saving taxes. This is mainly  for first time equity investors in securities market. The whole idea for introducing the RGESS scheme is to promote an ‘equity culture’ in India as well as widen the  retail investor base in the Indian securities markets. Look at the below video where a discussion is going on RGESS.

Lets us look at some major points which defines RGESS

1. Maximum Investment Limit and Tax Saving

RGESS scheme is available only to those investors whose taxable limit is less than 10 lacs per year; and the maximum limit of investment is Rs 50,000 per year. The tax advantage will be available on only 50% of the amount invested –  which means that tax saving can be done only on upto Rs 25,000. Which means, if you invest Rs 50,000 and belong to 20% tax slab , you will be able to save 20% money on 25,000 (50% of 50,000) – a Rs 5,000/- tax saving.

2. Applies to new Investors

OnlyThe RGESS Scheme is available only for “new investors”; defined as those whose PAN numbers don’t have equity transactions, which means either a person has not opened a demat account ever, or has opened a demat account, but have never invested in equity before the scheme came into effect. The investment can be done throughout the year, and not restricted to a one time investment, so investing Rs 50,000 in one shot or investing Rs 10,000 in 5 shots , both are eligible. But the big confusion is for those investors who already have equity investments through mutual funds, but do not have demat account ?

3. Lock In period of 3 years

This rule is a little messy. There will be 3 year lock in period for this investment. However if an investor wants to, he can collect “profit” part after a year of investment.  So for the entire first year, you cant sell your shares! And after the first year of investment, he can take out the profits if he so chooses. He can sell all his shares if he wants, but he will have to bring back the same amount through some other stock.  After first year, 2 more years of lock in will apply, and in this period, you have to maintain your balance at the end of first year, which should be minimum of the amount on which you claimed income tax or the balance at the end of the 1st year .So if a person invests Rs 50,00 , and in next one year

Case 1 : His worth is Rs 55,000 , then he can take out 5,000 and after that he has to keep his balance minimum 50,000 (the amount on which tax exemption is claimed), if a person wants, he can sell off his shares totally, but then again has to come back with 50,000 investment in some other or same stock. He can take out the profits part (above 50,000) if he wants in these next 2 yrs

Case 2 : His worth is Rs 25,000 , then in this case, he has to maintain this 25,000 balance in next 2 years. If you are still unclear, Deepak Shenoy has done a better job in explaining this lock in part, in his article on RGESS.

4. Where can you invest for RGESS Scheme?

You can invest in stocks which belong to
CNX 100
BSE 100
IPOs of PSUs whose annual turnover is not less than Rs. 4000 Crore for each of the immediate past three years
Large Listed PSU’s
And any ETF , Mutual fund which are listed and traded in stock exchange and whose portfolio includes stocks which are eligible under RGESS

Should you invest in RGESS ?

Personally, I feel that RGESS has too many terms and conditions to follow, and is not that easy to understand for a common man. Especially a new investor who is anyways afraid of markets and his money being lost. The restriction of “can’t not sell at all in first year” is kind of scary, especially for those who are too risk averse.

Another bad point about RGESS is that it’s a once in a life time investment scheme. Once you become eligible for this scheme, for next year you will not be a “new investor” and hence wont be eligible, so its only for the fresh batch of new investors each year. The only positive point is that for those who were anyways going to take plunge in stock markets will get extra benefit of some tax saving and might instill some compulsory discipline of investing (lock in period).

Let us know what do you think about this RGESS Scheme (Rajiv Gandhi Equity Saving Scheme) , and if it interests you. Will it be a hit tax saving scheme or a flop one? What do you think?

Yes! - You can withdraw your EPF without Employer Signature

Do you know how to withdraw your EPF without Employer Signature? Do you think if it’s possible at all? Is your previous employer not signing your EPF Withdrawal documents? Have you left your company long back and now you cannot take your past employer signatures? Or is your EPF Company stuck because your employer is not supporting you or helping you in withdrawal procedure? Or it might happen that your employer relations with you mess up for some reason and now they are not ready to cooperate in the EPF withdrawal procedure and threatening you?

Here are 2 real life examples of this kind of situation

Case 1 : Priyanka was also stuck with a company which was shut down and her PF was stuck

The last company i was working with has been shut down. Now I need to withdraw my EPF, however I am not getting any help from the company. I have tried to contact the GM – HR and the CA but no response. As the sum is huge, I am worried if I will be able to withdraw the amount without company’s approval or authorized signature. The full and final settlement has been closed and relieving letter has been issued by the company. Please advise how I should go about in this case.

Case 2: Ram was also facing similar issue but here employer was not supporting the employee for EPF withdrawal

One of my friends was in a similar situation few months back. I have pay slip but no relieving letter. When contacted with the finance dept., I was told that I cannot get the epf amount as I have not got the relieving letter. The amount will not be released by them even though an epf amount is mentioned in pay slip. He was asked to pay the amount for serving period of two months and then get relieving certificate and later only will they release the funds for epf account.

Now the question. Can one withdraw his EPF without the support of his past employer signatures or support? Yes ! - There is a solution!.

Today we will discuss, how you can withdraw your Employee Provident Fund money without your past employer’s help. A lot of people feel that it’s not possible without employer involvement, but it’s not true! Let me start by sharing a bit about this.

Employer cannot control EPF money

Each month employer takes the EPF part, out of your salary and along with their contribution, deposit it into your EPF account with the EPFO organisation. Once they deposit it with EPF office, then it’s just your money and no one else’s. Your employer can not control it. However note that your employer’s signatures are required on the EPF withdrawal form, to certify that you are not employed with them anymore and now you can withdraw the EPF.

A lot of people leave their jobs without serving the notice period or because of some other issue and employers do not help them to claim their Provident Fund money.

I worked in a company in 2009 for few months. I had some issues with them and resigned from that company. I did not get any relieving order. All I have is my salary slip which has PF account no. Is it possible to get back the PF amount without the permission/notice to the previous employer which I worked ?

3 steps to withdraw your EPF without Employer Signature

Here are 3 steps you need to do to successfully withdraw your EPF without previous employer signatures.

Step 1
First download and fill up Form 10C (for EPF Withdrawal) and Form 19 (for EPS withdrawal)

Step 2
Get it attested by any one of the following

• Manager of a bank (PSU preferred)
• By any gazetted officer.
• Magistrate / Post / Sub Post Master / Notary

Step 3
Write down a letter addressing the regional PF commissioner, stating the reason why you have to get it attested and how you are facing issues with your employer. In case you have any proof of unsupportive behavior from your employer, better attach it. (This step is optional and not mandatory)

Step 4
If you are unemployed, you will have to make an affidavit that proves that you are unemployed. Download this Affidavit Sample and get it printed on a Rs. 100 stamp paper with a notary or any gazetted officer signature on it  . This is required because you need to be unemployed if you want to withdraw your EPF . If you are employed, you can transfer your EPF to your new employer.

Step 5
Send these forms to your regional EPF office and wait for next few months for some kind of action.

Step 6
Once your application is processed, the EPF withdrawal request will be honored and you will be paid. If you still don’t see any action or response, then its time to file an RTI application to EPF Department for finding out the exact Status.

Legal Action against your past employer

Note that Employee provident fund money is totally yours and no matter what the situation, your past employer should be helping you in withdrawing it. It can be some issue your employer or you might have.., your employer cannot say that they will not give signatures and create issues in your EPF Withdrawal.

If that’s the case, it might be time to teach them a lesson.

If you are 100% sure that you are correct and it’s a case of harassment, just collect all the documents which proves the harassment and then inform your regional Provided Fund officer about this. He will carry out an enquiry, contact the employer and if he finds them guilty, there can be legal action against the company and might even amount to imprisonment. It’s the Employer’s duty to keep records as per the law and also maintain the terms and conditions, failing which employer can get a notice under a section 7A, which lays the guidelines of strict actions against the employer. I got this from one of the RTI related websites

Normally, the EPFO which maintained your EPF account should have settled the claim based on the signature of the Bank Manager since you find it difficult to get the form attested by your previous employer. They should not have sent it back to you telling to get the signature of the previous employer. The fact appears to be that the employer is not willing to sign the form for some reason or the other. (I presume the establishment is not closed but is still working). It is the duty of the employer to sign the settlement form. If he fails to do so the Regional Provident Fund Commissioner (RPFC) concerned can take action against him. You can make a complaint to the RPFC pointing this out and urging him to either settle the claim as it is or to get the claim signed by the employer and in case the employer declines to sign to take appropriate action against him instead of harassing you by not settling the claim. Please send this complaint by registered post and keep copy. After about a month if no action is taken file an application under RTI and ask what action has been taken on your complaint, people responsible for not taking action etc. Your claim will automatically be settled.

Conclusion

It’s possible to withdraw your EPF money without the help of your past employer. You just need to know the right steps and should also have the energy and motivation to follow up on the matter. Let us know what you learned out of this article. Do you think this is something useful for you? From this article, did you understand properly how you can withdraw your EPF without Employer Signature?

Your Cheques will become Invalid from Jan 1, 2013 – Find out WHY?

It might happen that your Cheques start bouncing and do not get accepted from Jan 1, 2013. There is a new standard in banking called as Cheque Truncation System or CTS 2010, which all the banks have to follow now. RBI has issued a circular telling all banks that they should only process and accept those Cheques which follow CTS guidelines.

What is Cheque Truncation System or CTS?

It’s just a new improved structure for Cheques and a set of guidelines which will change the way Cheques are being processed and cleared. Right now, all the Cheques are sent directly physical to the other bank for clearance, but with this new Cheque Truncation System guidelines, the banks will send the digital version of Cheques (read scanned image) to the other bank and the clearance will happen almost same day or very fast.

Some of the features of CTS Cheques would be

1. It would have the wordings “please sign above this line” at right bottom
2. All CTS-2010 Cheques will have a watermark with the words “CTS INDIA”, which can be seen against a light
3. A bank logo will be on cheque with an Ultra Violet Ink, which can be seen only under UV Scanners.
4. The CTS 2010 enabled Cheques will not allow any alterations. If there is any mistakes, the cheque will be invalid
5. “payable at par at all branches of the bank in India” text will be at the bottom of all the Cheques
6. There will be IFSC and MICR code on the cheque
7. You will have to sign the cheque will a darker ink, so that your signatures are valid for scanning.

If you look at these features, you can simply see that these are required for digital processing and once this Cheque Truncation System enabled Cheques arrive; the whole banking system will start clearing the Cheques in a must faster time. This will improve banking and save paper. Below is a sample of cheque which fulfills CTS criteria’s.

SBI has already told all its customers to get new Cheques because all the old Cheques will become invalid, in the same way HDFC bank and ICICI bank have also told their customers to get new cheque books.

What you must do?

1. Replace your Post Dated ChequesIf you have given any post dated Cheques to someone like for your home loan payment or for some other kind of payment, then its the time to replace them with fresh Cheques else it will just bounce and you might have to pay the bounce charges

Deposit any Old Cheque now

At times, we accumulate old Cheques and deposit them for clearing only after many days or weeks. If you have any cheque which is to be cleared, better deposit it and encash!A lot of banks have also asked its customers to give return back the old invalid Cheques at their branch and collect new Cheques, not sure why they need old Cheques, why can’t they issue the new cheques directly? Also note that the cheques will be sent to the last updated address only. Learn more about CTS here . I hope you are clear about Cheque Truncation System (CTS) and how your cheques will become invalid from Jan 1, 2013

10 sure-shot ways to save money & improve your finances

One of the quickest ways to improve your finances is to reduce your spending and find more ways to save money. Unfortunately, there are still many people around who find it difficult to save, most of the times putting the blame on their 'insufficient' income. This is, however, not true as various studies have already proved that how much you save has little to do with how much you make.

If you are also among those who usually find it hard to save, there are some innovative and sure-shot ways which can help you save more and also improve your financial health in line with your goals.

Here we take a look at some of them:

1. Stick to the budget: One of the surest ways to cut your spending and save more is sticking to the monthly budget and resorting to forced savings. This system always works, regardless of the kind of job you have or your income.

Giving an example, Lovaii Navlakhi, MD & chief financial planner, International Money Matters Pvt Ltd, says that he knows of a client who segregates her monthly expenses in envelopes, for example, for groceries, eating out, fuel costs for two wheelers, etc. If the family decides to go out at the end of the month, the venue is dependent on what amount is left in the 'eating out' envelope. Similarly, the children may resort to travelling by bus if the 'fuel costs' have run out. This way they are able to budget their expenses and save as per their goals.

2. Take a 'no buy' day or week: Another important way to help with saving money and keeping a quality budget is 'spending freezes'. This means for the entire time of the 'no buy' break, you aren't allowed to buy anything new, or to go shopping. Exceptions to the 'no buy' time might include paying for medicines, food and emergencies that come up like a car breaking down. "Save the money you would have normally spent during the day or week you are on the 'no buy' break and invest that amount by the end of the month," says Navlakhi.

3. Avoid buying on impulse: Do you often purchase something and then get it home to find you aren't excited about it any longer? It happens with most of us. Therefore, if you are in the habit of spending on impulse, make an effort to have a moment of reflection before buying anything. "If you see something you would like to buy, try waiting a day or two before actually committing yourself to buying. If you really want it, you will come back. This will not only help you save more money, but also give you the chance to find other things that may be better," says Atul Surana, certified financial planner and MD of Mangalore-based Catalyst Financial Planning.

4. Avoid spending by habit: Quite often a lot of our spending is a daily habit. However, this spending could easily be unnecessary. For example, if you buy a takeaway coffee every day for your office staff / visitors, why not invest in a coffee machine? "Just because you spend Rs 200 a day on lunch, doesn't mean this habit has to continue forever. Try taking your own lunch. Re-evaluate all your habitual spending patterns and decide whether it is necessary," says Surana. This will help you cut your unnecessary spending and save more.

5. Pay yourself first: This may sound strange, but 'paying yourself first' - a phrase originally coined by George S. Clason in his book 'Richest Man in Babylon' -- is also one of the best ways to save more. Although many of us might have heard of it, only a few of us actually do it. For those who are still not aware of this phrase, paying yourself first means the first bill you pay each month should be to yourself, simply because you have worked for it and deserves it the most. Thus, before you pay your bills, before you buy groceries, before you do anything else; set aside a portion of your paycheck or income to save - say, 5 or 10% or whatever you decide. Then deposit the amount into a savings account before paying your monthly bills. A great way to do this is to set up a savings, investment or retirement account that will directly route it from your salary account every month.

6. Pay your bills on time: You can also end up with a substantial chunk of extra cash every month just by paying your bills, particularly credit card bills, on time. To take an example, if you have six credits cards and you are delaying their payments, then you may have to fork out close to Rs 5,000 every month in late fees alone. However, if you save Rs 5,000 every month and invest it in an absolutely safe instrument, which gives 8% return compounded annually, you will amass over Rs 1 crore in just 35 years. Now assume how much you would be able to save just by taking care of such 'little' things!

7. Cut out junk food from your diet: Junk food is expensive and eliminating it can save a lot of money. Start with small things like potato chips, soft drinks or sugary cereals and then move onto pastries & pizzas/burgers etc. "None of these things are very healthy for you and you'll be saving a lot of money each month. Keep a track of the amount you spend on junk food. Consciously keep aside that amount and invest it at the end of the month," says Navlakhi. This way you can ensure that you become healthy and also have savings to show for it.

8. Quit smoking: If you are a smoker and are looking to quit, then you should keep aside the money for every cigarette that you do not smoke. If 1 cigarette costs Rs 5, then keep aside Rs 10 as a reward for not smoking. If you usually smoke 1 pack a day, then you would effectively set aside Rs 6,000 in a month if you successfully manage to quit smoking completely. You will feel really good about yourself when you see the amount that you have saved by not smoking.

9. Watch movies at home: It is very expensive these days to watch movies outside. If you are a regular movie goer, then you would be spending quite a bit each month watching the movies outside. These days even blockbusters are shown on TV just some time after their release or you could buy a DVD. But keep aside the money that you save by watching it at home and invest that amount at the end of the month.

10. Avoid having unused memberships: You might be a member of that elite club, but do you also have enough time and resources to go there and enjoy your life as some spendthrifts do? Or are you getting your money's worth out of that costly gym membership? If not, then why to join such clubs or become a gym member at all?

Thus, there are lots of such things which look very simple and people generally don't care about them as they think resorting to such small things may result into vary small savings and are thus avoidable. That is, however, not true. We can, in fact, end up with a substantial chunk of extra cash every month and over years just by following these simple tips!

LAW'S OF MONEY !!!

THE FIRST LAW OF MONEY
Money comes gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.

THE SECOND LAW OF MONEY
Money labors diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.


THE THIRD LAW OF MONEY
Money clings to the protection of the cautious owner who invests it under the advice of men wise in its handling.


THE FOURTH LAW OF MONEY
Money slips away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.


THE FIFTH LAW OF MONEY
Money flees the man who would force it to impossible earnings or who follows the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.