What? My currency notes are fakes?

August 11th, 2010

You are in your bank branch depositing money into your account.  The cashier receives the currency notes, looks at you, up and down, and says, “These are fake notes.”  What will be your reaction?  Try to explain to the cashier how the notes landed up into your wallet?  Surely, you will be asked to explain that, and surely, that is not going to  disconnect you from the counterfeit notes.  What happens, then?

The bank will take  possession of the notes and will ask you to sign an acknowledgement containing your name, address and your statement as to how they came into your possession.  The bank will file a FIR and the police may pay frequent visits to your place for investigation.  FIR is required to be filed even if there is only one counterfeit note along with other genuine notes and however bonafide your credentials are.

Do not panic.  These are normal guidelines for the banks to follow.  For your part, try to be cautious when you receive high denomination notes.  Not that you can recognize it as counterfeit the moment you see one!  They are so cleverly faked nowadays.  Be cautious, anyway.  Because, apart from the inconveniences and embarrassments, it is your money you are going to lose to the bank.

Joje’

Posted in Uncategorized | 4,978 Comments »

Base Rate or Bad Rate for Exporters?

July 28th, 2010

Effective from July 1 2010, a new interest rate structure for lending, called ‘Base Rate’, is coming into effect in commercial banks.

The earlier one was known as ‘Prime Lending Rate’ structure for the individual banks, which allowed wide room for the bankers to undercut in the face of stiff competition. One of the tribes reaping benefits from this undercutting was the exporting community, not to mention the several concessions enjoyed by them from the government as well.

The new Base Rate, which is the minimum interest rate for any kind of borrowers of the bank, will have transparency bringing the exporters at par with the other borrowers.

The exporters are a pampered lot by the government, at least the top-enders. They are expected to make a hue and cry now, as usual, although they are established survivors, knowing the rules well, or knowing how to bend the rules well.

For once, can they not be allowed by the government to fend for themselves, if the Base Rate pinches them, if it does pinch?

Joje’

Tags: , , , ,
Posted in Banking | 2,178 Comments »

NRIs! Get ready. Polling date is ……

July 14th, 2010

NRIs! You have been demanding various things from the Government of India. At least, one of them is going to materialize soon. You are going to be given the right to vote in Lok Sabha elections.

The process of formalizing NRIs’ right to franchise, stated four years ago, is past the ‘bill’ stage and nearing Union Cabinet’s approval stage.

This right will enable the NRIs to participate in the country’s economic growth by participating in the electoral process. That means the electoral base will get wider to the extent of the number of NRIs scattered all over the globe and the prospects of having a more functional government is brighter. The NRIs can exercise their franchise through a sort of an on-line polling.

So we imagined. Disappointingly, it is not so. You have to be present in your constituency on the polling day to exercise your franchise! Whether you were alert enough to keep your name alive in the voters’ list is another matter!.

Joje’

Tags: , , , , ,
Posted in Uncategorized | 5,727 Comments »

Indian Rupee is in Beauty Parlour!

July 7th, 2010

Indian rupee is having a facial! It is going to have a new face for the globe to recognize its might. Perplexed? Read on. You will understand.

Different countries have different currencies. But, there is an elite club of four currencies which have symbols of their own and recognized all over the world by their symbols. They are United States dollar ( Symbol : $ ), British pound sterling ( Symbol : £ ), European euro ( Symbol : € ) and Japanese yen ( Symbol : ¥ ). Indian rupee, now represented as INR/IRS/Rs is going to join this elite club by having a symbol of its own.

What is the symbol? It is a closely guarded secret. About four symbols have been short-listed by the government, which has taken care for the symbols to be in an Indian language script representing the historical and cultural ethos of India.

By getting a new face, the rupee will create a brand for itself in the global money market. However, the practical effect is expected to be minimal, such as a few changes in the computer keyboards, as its strength against other currencies is expected to remain the same.

Nonetheless, Indians can feel proud of handling something so vital in their day-to-day life which is going to have a unique place and a unique face in the global financial circles.

Joje’

Tags: , , , ,
Posted in Uncategorized | 3,269 Comments »

Watch out! It’s ULIP.

June 16th, 2010

“Just pay Rs.10000 every year for 3 years. After 30 years, you will get Rs.30 lacs or after 3 years, you will receive a fabulous amount.” Sounds familiar?

This is the refrain used by ill-informed/self-serving insurance agents. But the rosy picture painted by the agent is far from reality.

Unit Linked Investment Plan (ULIP) has no 3 years’ scheme and 3-years is only the lock-in period. The real picture is like this.

I Year : Only Rs.7316/-, out of your Rs.10000, gets invested, after charges and taxes.

II Year: You pay another Rs.10000. At the end of second year, the value of your Rs.20000 investment will be Rs.18119/-, after charges and taxes, assuming a 6% appreciation.

III Year: You pay the “final” instalment of Rs.10000. At the end of third year, the value of your investment of Rs.30000 will be Rs.28984/-, after charges and taxes, assuming a 6% appreciation.

In the fourth year, if you withdraw, don’t be shocked if you are given Rs.12000 or even Rs.8000, as against your investment of Rs.30000, and, as against your expectation of a “fabulous” amount.

As the growth of the amount you invest depends on equity market conditions, you may have to wait for a minimum of 10 years to hope for a 10-15% appreciation, after deduction of charges and taxes every year. In real terms, you can hope for getting around Rs.75000 after 10 years, for your initial investment of Rs.30000 ((Rs.10000 each for 3 years) with a presumed 10-15% appreciation in the equity market.

Hence, watch out when you hear next time, “Just pay Rs.10000 per year for 3 years . . . . . . . . . . . .”

Now, there is one more reason to watch out, as the scheme got modified looking less attractive, with effect from July1, 2010.

Joje’

Tags: , , , ,
Posted in Uncategorized | 4,652 Comments »

Can he or Can he not?

June 9th, 2010

Mr. A. Jegannathan was sipping chilled coke in his residence at Pasir Ris Drive, Singapore, musing on his hectic visit to India last month with swinging fortunes and disappointments.

It all started two months ago. For quite some time, he had been mulling over the idea of buying a flat in Chennai. As if meant for him, an apartment complex ad from Chennai caught his eyes. He was so fascinated by the project, he wanted to book three adjacent flats; one for his parents (His father, a government servant, is retiring in the coming October.), one for himself, and the third, for his dear old grandparents (As a surprise gift to them, who are still engaged in cultivating paddy on lease land in their native village.). Satisfied about the details of the property, he remitted the specified amount to the promoter.

A couple of weeks later, when Mr. Jegannathan was in India, there was some shortfall while settling the final payment with the promoter. A local housing finance institution offered to help. Settling the dues and arranging for the interiors, he headed for his native village.

What a disappointment! His grandparents flatly refused to move out of the village. Why can’t he purchase the land they are cultivating and gift it to them, instead of the flat? Fortunately, the land owner was willing to sell the land too. But, no, it was not to be. Disappointment again!

Back in Chennai from his native village, he disposed of the flat he bought for his grandparents and sent back the money to his foreign bank account. To his surprise, he found his own flat has become a hot cake for letting out and was fortunate enough to get a good tenant as well. He arranged for the rent amount to be sent to him to the same foreign account.

Happily celebrating the ‘Gruha Pravesh’ with parents, grandparents, tenant, relatives and friends, he emplaned for Singapore.

Now, reclining comfortably in his Pasir Ris Drive apartment with the coke, Mr. Jegannathan is gratefully thinking about his friend and counsellor in India, who guided him at every stage of the episode.

Joje’

Tags: , , , ,
Posted in Uncategorized | 7,737 Comments »

OVERSEAS TRAVEL

May 26th, 2010

BREAKING NEWS
“Air India Express flight from Dubai crashes on landing in Mangalore killing 158.”

All the major English TV news channels in India flashed this on the 22nd May. The passengers of that ill-fated flight would have been very excited about getting reunited in a few minutes with their family members, perhaps after long years. Till the last moments, none of the passengers realized what was happening. Or, if they did, it was too late! Now, it is for their near and dear ones to pick up the threads and move on in life.

“Eyjafjoll volcano in Iceland erupts. Flights cancelled.”
Thus read the headlines of major English dailies across the globe during the third week of April. Thousands of flights were cancelled. Air spaces were closed in Canada, US and Europe. Hundreds of thousands of air travellers were stranded around the world for days together following the drifting volcanic ash. In the aviation history of the world, this has never happened before.

A family friend returned to India on the 21st May from his son’s residence in Canada as planned. Much against his will. Because, his son was getting engaged for marriage, but he could not stay back to celebrate the engagement. Reason: His medical cover was valid only up to the date of his return flight. (He did not know it could be extended.)

Before leaving for US on the 10th April for the nth time, another family friend was proudly saying, “We have been shuttling between my daughter’s residence in Newark, US, and our residence in Bangalore. We never fell sick or encountered any problem.” When in US, she was almost hospitalized for a stomach infection. Her daughter had great difficulty in arranging her medical treatment, since she has never thought about taking overseas travel insurance.

Moral of the above stories:
Remember to take overseas travel cover next time when you travel abroad.
Make sure that your travel agent, who arranges your overseas travel insurance, is capable of helping you out in unexpected circumstances.
Or, when you book your tickets, look for an agency, who can take care of you in any unforeseen eventualities.

Note : Minimum cover amount for travel to US/Canada : US$100,000/-.

Joje’

Tags: , , ,
Posted in Uncategorized | 2,540 Comments »

Akshay Tritiya

May 19th, 2010

“Akshay Tritiya” – You would not have missed seeing this term in the past one week – be it the advertisements, hoardings or TV commercials.

Akshay Tritiya is one of the most auspicious days for Hindus which falls on the 3rd day of the first half of Hindu month ‘Vaishaka’. For the year 2010, it was falling on the 16th May. In Sanskrit, ‘akshay’ means ‘never diminishing.

This day somehow caught the fancy of the jewellery houses in India in the past few years and a belief was handed out to the public that if they wear new gold on this day, they will get more and more of the same throughout the year.

Ten years back, hardly a handful of people had heard about Akshay Tritiya. The obsession for new gold caught on, anyway. Five years down, all the jewellery houses were aflame with the new gold fever. This year, it is not only gold, but cars, flats and even consumer goods. Another five years, God knows, it could be vegetables!

Coming back to jewellery, the South Indian women wear more jewellery than their counterparts in the north. Nonetheless, it is acknowledged by most of the jewellery houses that the best craftsmen of jewellery are from West Bengal. Interestingly, Bengali women never wear gold jewels-except for weddings-though they own them a lot. For fear of thieves, they say. What’s the fun in owning so much without enjoying it – something we could never understand.

India is rich in many ores of metals and minerals, though gold is not in that list. Yet, India is competing with China (one of the prominent gold-producing countries) to be the largest consumer of gold in the world, and, gems & jewellery is a top contributer to the Indian exports as well. Import of gold into India is mainly done from Australia and South Africa.

What are the processes involved in importing gold into India? We will get back to you later with the details.

Joje’

Tags: , ,
Posted in Uncategorized | 7,983 Comments »