In India government on its level has been making efforts to encourage parents of the girls belonging to lower strata of the society to send them to school. Working on this line BMS in order to encourage girl students complete their primary school will be providing a fixed amount of Rs 1,000 and would double the amount on completion of the education.
Till now the civic body was giving an allowance of Re 1 per girl child for attending the class every day. But now it has suggested a fixed amount scheme. In civic-run schools mostly students are from lower strata of the society or slum areas that often do not complete their primary education resulting in high dropout rate. In a hope that financial incentive will be able to lure parents and children to complete their primary education the civic administration has suggested a fixed amount scheme.
Instead of attendance allowance under the new scheme at the time of enrollment in class I, a fixed deposits of Rs 1,000 will be made in Indian Bank which will get doubled when the girl student completes her primary education till class VII. In the scheduled bank savings account will be created in the name of the student in which the money will be deposited.
This scheme will be started from financial year 2009-2010 and approximately 42,750 girls who enrolled in the first standard for this academic year will be benefited from the scheme. The proposal has been approved by the education committee and an amount of Rs 4.27 crore has been sanctioned. While in the on going scheme the BMC used to give Re 1 to girl students for a day’s attendance and by the end of each academic year a maximum of Rs 210 (for 210 working days) was credited in their account.
Friday, July 31, 2009
Thursday, July 2, 2009
Short-term FD has lower interest rate than savings a/c
Almost all the banks have slashed their fixed deposit rates. After this revision the interest banks are offering on the tenure between a month and 45 days is lower than the 3.5% minimum savings bank rate and some of the banks are not even giving any interest on short-term maturities.
Therefore at this time it is better to keep money in the savings bank account rather than investing in fixed deposits.
For instance amongst the private sector banks HDFC Bank is giving a 2.25% interest on deposits below Rs15 lakh for 15 to 29 days and only a 3% interest on deposits kept for 30 days to 45 days.
While the ICICI Bank is not giving any interest on deposits for 7 days to 14 days and offers only a 3.25% interest for deposits maturing between 15 and 45 days.
Whereas amongst the public sector banks State Bank of India (SBI) is offering only a 3% interest on deposits maturing in 15-45 days.
The savings bank account rate is fixed by the government therefore it can not be changed by the banks whereas it’s not the case with deposit rates.
Anindya Mitra, senior vice-president, retail liabilities, HDFC Bank explained, "We may think that the savings rate has to come down but we can't tinker with it and why should we pay more than 3.5% for short-term money when we can borrow one day funds from the inter-bank call market at 3%". Mitra added that companies, funds and high net worth individuals having huge amount generally invest funds in these tenures.
He stated, "For companies, it's still the better option to keeping huge chunks of money in current accounts at 0%. Some companies which do not even have a bank account open an FD".
On the minimum maturity period if you invest more money the banks give less interest. For instance ICICI Bank, offers only 1.5% interest on deposits from Rs15 lakh to Rs1 crore in the 7-45 days' tenure. While Canara Bank offers 1% for deposits of more than Rs1 crore for seven to 14 days and only 2% for deposits kept for 15 to 30 days.
Regarding offering very low interest rate on minimum tenure bankers say that there is enough liquidity in the system therefore they don't need short-term cash. According to SBI official, "These funds were used to give short-term bridge loans for companies just before their actual loans were being passed. These loans were in demand, particularly when the economic growth was brisk, but now that's not the case".
Therefore at this time it is better to keep money in the savings bank account rather than investing in fixed deposits.
For instance amongst the private sector banks HDFC Bank is giving a 2.25% interest on deposits below Rs15 lakh for 15 to 29 days and only a 3% interest on deposits kept for 30 days to 45 days.
While the ICICI Bank is not giving any interest on deposits for 7 days to 14 days and offers only a 3.25% interest for deposits maturing between 15 and 45 days.
Whereas amongst the public sector banks State Bank of India (SBI) is offering only a 3% interest on deposits maturing in 15-45 days.
The savings bank account rate is fixed by the government therefore it can not be changed by the banks whereas it’s not the case with deposit rates.
Anindya Mitra, senior vice-president, retail liabilities, HDFC Bank explained, "We may think that the savings rate has to come down but we can't tinker with it and why should we pay more than 3.5% for short-term money when we can borrow one day funds from the inter-bank call market at 3%". Mitra added that companies, funds and high net worth individuals having huge amount generally invest funds in these tenures.
He stated, "For companies, it's still the better option to keeping huge chunks of money in current accounts at 0%. Some companies which do not even have a bank account open an FD".
On the minimum maturity period if you invest more money the banks give less interest. For instance ICICI Bank, offers only 1.5% interest on deposits from Rs15 lakh to Rs1 crore in the 7-45 days' tenure. While Canara Bank offers 1% for deposits of more than Rs1 crore for seven to 14 days and only 2% for deposits kept for 15 to 30 days.
Regarding offering very low interest rate on minimum tenure bankers say that there is enough liquidity in the system therefore they don't need short-term cash. According to SBI official, "These funds were used to give short-term bridge loans for companies just before their actual loans were being passed. These loans were in demand, particularly when the economic growth was brisk, but now that's not the case".
Wednesday, July 1, 2009
Govt. in favor of new tax-saving scheme to tap ‘idle money’
The government is thinking over of introducing a new tax-saving scheme to collect 'idle money' kept with households and elsewhere in the system mainly for building funds for infrastructure.
According to sources the tax benefits offered may be on investments up to Rs 5lakh and be involved in somewhat meeting the country's infrastructure funding needs, which have been gauged at as high as $750 billion.
The scheme can provide multiple purposes including giving additional tax benefits to the public, channelizing the huge amount of money lying idle in saving accounts or with households for productive means, and this will also not add to the fiscal deficit, the sources said.
The sources added the government has already made an announcement of borrowing program of over Rs 3,00,000 crore for the current fiscal and if further there is any increase the liquidity will be made available to the drying up private sector and also add to the expansion of fiscal deficit.
Various sectors have been demanding for tax benefits for citizens and also garnering alternative resources for meeting the government's spending needs.
At present, collective tax benefits are being offered on an investment of Rs one lakh in insurance, pension schemes, bonds, mutual funds, children's education and housing loans, etc. An additional benefit of up to Rs 1.5 lakh is given only for housing loan interest payments.
As per Planning Commission approximation, the country would require around $500 billion for the building up of infrastructure during the remaining period of the 11th Plan (2007-12).
According to country top private sector bank ICICI Bank's Chairman K.V. Kamath the capital need for the infrastructure sector will be even higher, at $750 billion, over the next three years.
Meanwhile the policymakers have supported spending most of the money set for infrastructure as quickly as possible in the remaining years of the current five-year plan.
Financial services major Reliance Money's CEO Sudip Bandyopadhyay points out any such initiative will be welcomed from the government in case it launches some sort of infrastructure bonds that can offer tax benefits of up to Rs five lakh in the Union Budget.
According to sources the tax benefits offered may be on investments up to Rs 5lakh and be involved in somewhat meeting the country's infrastructure funding needs, which have been gauged at as high as $750 billion.
The scheme can provide multiple purposes including giving additional tax benefits to the public, channelizing the huge amount of money lying idle in saving accounts or with households for productive means, and this will also not add to the fiscal deficit, the sources said.
The sources added the government has already made an announcement of borrowing program of over Rs 3,00,000 crore for the current fiscal and if further there is any increase the liquidity will be made available to the drying up private sector and also add to the expansion of fiscal deficit.
Various sectors have been demanding for tax benefits for citizens and also garnering alternative resources for meeting the government's spending needs.
At present, collective tax benefits are being offered on an investment of Rs one lakh in insurance, pension schemes, bonds, mutual funds, children's education and housing loans, etc. An additional benefit of up to Rs 1.5 lakh is given only for housing loan interest payments.
As per Planning Commission approximation, the country would require around $500 billion for the building up of infrastructure during the remaining period of the 11th Plan (2007-12).
According to country top private sector bank ICICI Bank's Chairman K.V. Kamath the capital need for the infrastructure sector will be even higher, at $750 billion, over the next three years.
Meanwhile the policymakers have supported spending most of the money set for infrastructure as quickly as possible in the remaining years of the current five-year plan.
Financial services major Reliance Money's CEO Sudip Bandyopadhyay points out any such initiative will be welcomed from the government in case it launches some sort of infrastructure bonds that can offer tax benefits of up to Rs five lakh in the Union Budget.
Monday, June 22, 2009
Rates on small saving schemes to be reduced by 50-75 basis points: Govt
It is very rare you get to see an advertisement of small saving schemes but then also more people invest in these schemes in comparison to bank deposits the reason being the interest given on these schemes and savings plans are tax free. But now these schemes won’t be as attractive as government is planning to reduce the rates on small savings scheme by 50-75 basis points to increase the bank deposits. Earlier in 2003 the rate was reduced by 100 basis points to the current eight percent. Government is thinking of setting up a committee headed by the former governor of RBI which will study the issues and recommend appropriate steps.
Analysts point out that in case the banks slash the deposit rates beyond a certain limit, then investors can get diverted towards small saving scheme. Therefore banks are abstaining from cut in the deposit rates. The industry experts say the reduction in deposit rates might not help in cut down of the lending rates also.
Some of the major small saving schemes are National Saving Certificates, Post Office Savings Account, Public Provident Fund, Kisan Vikas Patra, and Senior Citizen Savings Scheme. These saving schemes are in competition with the bank deposits as they have tax benefits under Section 80 C of the Income Tax Act.
Analysts point out that in case the banks slash the deposit rates beyond a certain limit, then investors can get diverted towards small saving scheme. Therefore banks are abstaining from cut in the deposit rates. The industry experts say the reduction in deposit rates might not help in cut down of the lending rates also.
Some of the major small saving schemes are National Saving Certificates, Post Office Savings Account, Public Provident Fund, Kisan Vikas Patra, and Senior Citizen Savings Scheme. These saving schemes are in competition with the bank deposits as they have tax benefits under Section 80 C of the Income Tax Act.
Wednesday, June 17, 2009
Forum directed ABN AMRO bank to compensate for wrongly billing
The ABN AMRO bank has been directed by the district consumer forum bench comprising president TN Vaidya and member Rajesh Kumar to pay compensation and litigation costs worth Rs 6,000 for wrongly billing a resident, thus causing an undue harassment to the complainant.
The complainant Kanwal Khurana in his complaint alleged that he had opened a current account and got a credit card from ABN AMRO Bank by paying Rs 22,412 for using the credit card vide demand draft dated May 30, 2006. On 16.6.2006 the amount was credited to the account of ABN AMRO Bank.
But in spite of this the bank continued charging late payment charges and interest regularly in his statement. He stated in order to settle the matter in cordially manner he made a complaint to the bank on 28-11-2006 then also bank did not take any corrective measures.
The complainant appealed before the forum that the bank should be proceeded under the
the Consumer Protection Act for causing harassment. Bank did not defend its case in the forum therefore it was proceeded ex parte and the forum after hearing the arguments of the counsel for the complainant and scrutinizing the evidence presented by him, apprehended the bank guilty.
The complainant Kanwal Khurana in his complaint alleged that he had opened a current account and got a credit card from ABN AMRO Bank by paying Rs 22,412 for using the credit card vide demand draft dated May 30, 2006. On 16.6.2006 the amount was credited to the account of ABN AMRO Bank.
But in spite of this the bank continued charging late payment charges and interest regularly in his statement. He stated in order to settle the matter in cordially manner he made a complaint to the bank on 28-11-2006 then also bank did not take any corrective measures.
The complainant appealed before the forum that the bank should be proceeded under the
the Consumer Protection Act for causing harassment. Bank did not defend its case in the forum therefore it was proceeded ex parte and the forum after hearing the arguments of the counsel for the complainant and scrutinizing the evidence presented by him, apprehended the bank guilty.
Tuesday, May 5, 2009
Savings bank deposits are offering more than short term FDs
Almost all the banks have started reducing the interest rates on their deposits therefore the deposits kept for short tenure are earning lesser than the savings bank deposits. The public sector after renewing their deposits rates are offering very low interest rates on short-term deposits than the rates offered on deposits kept in savings bank accounts.
Therefore the customers will be in loss in case they have made short-term FDs than what they are earning by keeping the amount in their savings bank deposits.
According to bankers the trend aim towards the banks’ repulsion towards fresh deposits in a situation where the financial system is flush with liquidity that has no takers.
Some of the public sector banks on the maturities between seven days and 14 days are offering interest rates of as low as 3 per cent, whereas on the savings bank rate there is a uniform rate of 3.5 per cent for all banks.
However the Bank of India and Bank of Baroda are giving 3 per cent for maturities between seven days and 14 days, whereas Punjab National Bank (PNB) is offering as low as 2.5 per cent per annum for deposits of same maturities. On the other hand Union Bank of India is offering 3.5 per cent per annum on deposits, having maturities of 14 days or less, is similar to the savings bank rate.
Moreover on maturities of 30 days, some banks are giving less than 3.5 per cent. While, the PNB on one month is giving a meager 3 per cent interest, while Bank of India is offering its customers a measly 3.25 per cent interest.
However, State Bank of India, the country’s largest commercial bank, is giving 4 per cent even on deposits with maturity tenure from seven days up to 45 days.
The individuals with temporary excess liquidity and who might be requiring the money in the near future invest for short-term and they invest their excess cash in maturities that suit their requirements. In the recent months the banks have done sharp reduction in interest rate for short-term deposits with maturity tenure of up to 30 days. In October 2008, a customer was offered around 5 per cent on maturities of one month or so.
S Raman, executive director, Union Bank of India told Financial Chronicle, “Banks have been offering lower interest rates at the short end because there is ample liquidity in the system. In any case, banks are offering retail customers much more than what we are offering to bulk depositors”.
While on bulk deposits of such short maturities of similar tenure, banks are giving interest rates of around 2 per cent. Amid those offering the lowest rates is PNB with 1.5 per cent for seven-14 days bulk deposits.
“Prima facie the interest rate of 3 per cent on maturities of 30 days may seem lower than 3.5 per cent offered on saving accounts. But in actual practice, there might not be much of a difference. While a customer gets interest rate for all 30 days for a 30-day term deposits, he or she gets interest for a shorter period in case of savings bank account. This effectively lowers the interest rates,” informed L P Agarwal, chief general manager, PNB.
Currently banks give interest for only 20 days to the customers on a savings account that too on the least amount kept between 10th day and last day of a particular month.
Soon the calculation method of interest rate on savings deposit is going to change as the RBI has issued new directives for the calculation of interest on savings accounts on a day to day basis throughout the month from April 1, 2010.
Therefore the customers will be in loss in case they have made short-term FDs than what they are earning by keeping the amount in their savings bank deposits.
According to bankers the trend aim towards the banks’ repulsion towards fresh deposits in a situation where the financial system is flush with liquidity that has no takers.
Some of the public sector banks on the maturities between seven days and 14 days are offering interest rates of as low as 3 per cent, whereas on the savings bank rate there is a uniform rate of 3.5 per cent for all banks.
However the Bank of India and Bank of Baroda are giving 3 per cent for maturities between seven days and 14 days, whereas Punjab National Bank (PNB) is offering as low as 2.5 per cent per annum for deposits of same maturities. On the other hand Union Bank of India is offering 3.5 per cent per annum on deposits, having maturities of 14 days or less, is similar to the savings bank rate.
Moreover on maturities of 30 days, some banks are giving less than 3.5 per cent. While, the PNB on one month is giving a meager 3 per cent interest, while Bank of India is offering its customers a measly 3.25 per cent interest.
However, State Bank of India, the country’s largest commercial bank, is giving 4 per cent even on deposits with maturity tenure from seven days up to 45 days.
The individuals with temporary excess liquidity and who might be requiring the money in the near future invest for short-term and they invest their excess cash in maturities that suit their requirements. In the recent months the banks have done sharp reduction in interest rate for short-term deposits with maturity tenure of up to 30 days. In October 2008, a customer was offered around 5 per cent on maturities of one month or so.
S Raman, executive director, Union Bank of India told Financial Chronicle, “Banks have been offering lower interest rates at the short end because there is ample liquidity in the system. In any case, banks are offering retail customers much more than what we are offering to bulk depositors”.
While on bulk deposits of such short maturities of similar tenure, banks are giving interest rates of around 2 per cent. Amid those offering the lowest rates is PNB with 1.5 per cent for seven-14 days bulk deposits.
“Prima facie the interest rate of 3 per cent on maturities of 30 days may seem lower than 3.5 per cent offered on saving accounts. But in actual practice, there might not be much of a difference. While a customer gets interest rate for all 30 days for a 30-day term deposits, he or she gets interest for a shorter period in case of savings bank account. This effectively lowers the interest rates,” informed L P Agarwal, chief general manager, PNB.
Currently banks give interest for only 20 days to the customers on a savings account that too on the least amount kept between 10th day and last day of a particular month.
Soon the calculation method of interest rate on savings deposit is going to change as the RBI has issued new directives for the calculation of interest on savings accounts on a day to day basis throughout the month from April 1, 2010.
Monday, April 6, 2009
Barbie's adult collectible item!
A toy plays a very important role in our childhood as they just help us to imagine how things look like in real life. Every parent wants their child to provide the best sources so that they could face the world with full confidence. Barbie doll collecting has been around for quite a while time and has accomplished many things. She has been everything from a fashion model to an astronaut. It is safe to say that Barbie is so popular that almost every little girl owns at least one. But Barbie is not just for little girls, she is a highly collectible doll. There are Barbies made for play and there are Barbies made for collectors.
People when they enter into teenage just forget the all fun but it should be done. Nowadays Barbie collections are specially designed for the adults also. Barbara Handler is the daughter of Barbie's inventor, Ruth Handler. Ruth Handler had noticed that when her daughter played with her paper dolls, she frequently pretended that the dolls were grown-ups. Most dolls available in the early 1950s were baby dolls so Ruth thought that might represent an opportunity for her husband Elliot's toy company, Mattel.
In this busy world we are lost in search of making life luxurious but nobody knows that this could cost you a much because your family which wants the most of your free time. Mattell wasn't all that interested in the idea, but fortunately Ruth didn't forget about it herself, so when she came across an interesting doll in Germany on a trip there with her children she bought three of them to take home. This doll was the Bild Lili. She was an adult doll based upon a German comic strip character and she had been popular in Germany since her release in 1955.
Are you tired of searching the toys don’t worry now Playdex offers you the great range of toys also buy cheap toys including toys games, Baby Born, Barbie and Disney toys.
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