The Reserve Bank of India has been receiving a number of complaints, including under the Right to Information (RTI) Act, 2005, that customers are unable to get their own credit report from the banks.

The provisions of sub section (1) of Section 21 of the Credit Information Companies (Regulation) Act, 2005, provides “any person, who applies for grant or sanction of credit facility, from any credit institution, may request such institution to furnish him a copy of the credit information obtained by such institution from the credit information company”. Further, sub-section (2) of the said Section also specifies that every credit institution shall on receipt of request, as indicated in sub-section (1), shall furnish to such person a copy of the credit information subject to payment of charges specified by the The Reserve Bank under the Regulations.

Reserve Bank, in Credit Information Companies Regulations, 2006, framed under the Act, has already prescribed in Regulation 12(3) a maximum fees of Rs.50/= (Rupees fifty only) for the purpose.

Access to own Credit Report

This is a post from: The Orange Paper ~ A blog about Personal Finance, Indian Stock Market, Financial Planning, Investing, Wealth Building, Taxes and more.

Access to Your Own Credit Report

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This is a post from: The Orange Paper ~ A blog about Personal Finance, Indian Stock Market, Financial Planning, Investing, Wealth Building, Taxes and more.

14 tax-free incomes for FY 2009-10

Effective 15th October, 2009 customers will be allowed to withdraw a maximum of Rs. 10,000 per transaction from non Bank ATMs. What this means is, savings Account customers will be allowed 5 free cash withdrawals per month on non Bank ATMs. A charge of Rs. 20 per transaction will be levied for additional ATM cash withdrawal on non Bank ATMs beyond the first 5 transactions.

So its clear that as long as the end customer was paying the per transaction charges earlier the banks were happy — but once they had to start paying the fee from their own pocket to the other bank (whose ATM was used to withdraw cash) it had begun to pinch them hard.

This is a post from: The Orange Paper ~ A blog about Personal Finance, Indian Stock Market, Financial Planning, Investing, Wealth Building, Taxes and more.

Pay for withdrawals at other Bank ATMs

Did you know you could be still paying an entry load even after Aug 1, 2009?

Here’s how — if you started investing via systematic investment planning (SIP) before Aug 1, 2009 then you will be paying the entry load on each SIP amount every month even AFTER Aug 1, 2009 till the term end of your SIP. Most funds deduct an entry load of 2.25% on each SIP installment.

Now, no one told you about this, right? Hmm, well there’s a way to handle this to ensure that you could still continue with SIPs but do away with the entry load.

You simply could stop your existing SIPs and start fresh ones so they can figure in the “registered on or after August 1, 2009″ category.

However, have a word of caution here — Look at what are the conditions and clause before stopping the SIP — whether there is load for withdrawing or minimum number of SIPs to be invested.

This is a post from: The Orange Paper ~ A blog about Personal Finance, Indian Stock Market, Financial Planning, Investing, Wealth Building, Taxes and more.

Save entry load on SIPs

This is a post from: The Orange Paper ~ A blog about Personal Finance, Indian Stock Market, Financial Planning, Investing, Wealth Building, Taxes and more.

ICICI Bank to recover credit card dues from salary account

On July 22, the Reserve Bank of India had issued a circular permitting cash withdrawals of up to Rs 1,000 per day from point-of-sales (PoS) terminals at merchant establishments. PoS terminals are machines where customers can swipe their credit or debit cards to pay for purchases. Says Jayesh Sangoi, a Mumbai-based clothes’ retailer, “Already, there have been many cases of credit fraud. What happens if a customers just walks in with a fake card, and leaves with cash?

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This is a post from: The Orange Paper ~ A blog about Personal Finance, Indian Stock Market, Financial Planning, Investing, Wealth Building, Taxes and more.

Latest ATM substitute

photo by Erik Schlange

National Securities Depository Limited (NSDL) has launched a Short Message Service (SMS) based facility to know the status of challans. The procedure for availing this facility is as under:

1. The tax payer can send an SMS to 575758 with a message containing the word CSI followed by a space and CIN provided by the respective Bank at the time of making the Direct tax payment.

2. The CIN should be separated by comma (,).

3. Challan Identification Number (CIN ) consists of details such as BSR Code of Collecting Branch (seven digit) , Challan Tender Date (DDMMYYYY) and Challan Serial No (length less than or equal to 5 digit) and Amount.

4. The amount is an optional field. If the amount is entered by the tax payer he would get the confirmation whether amount entered is matched or otherwise as per NSDL database.

For e.g., if the tax payer input “CSI 0510001,11032009,5,5000” where in “0510001” is the BSR code of the collecting branch, “11032009” is the Challan tender date, “5” is the Challan serial number and “5000 is the amount paid by the taxpayer.

The tax payer will get the information against which TAN/PAN the payment has been accounted with the confirmation whether amount entered is matched or not. (This is an illustrative challan identification number, actual CIN should be provided in the SMS).

There will be special charges for these SMS. These charges may vary from one mobile service-provider to another. The charge structure can be obtained from the concerned service-provider. The status of the CIN based view will continue to be available from NSDL-TIN web-site www.tin-nsdl.com or NSDL Call Centre at 020-27218080 or Aykar Sampark Kendra at 0124- 2438000.

This is a post from: The Orange Paper ~ A blog about Personal Finance, Indian Stock Market, Financial Planning, Investing, Wealth Building, Taxes and more.

Know your challan status via SMS

1. Don’t just blindly buy what the financial advisor sells you. See if the stocks the suggested fund invests in are relevant and missing from your portfolio.

2. When a scheme’s return have run up too fast, it’s time to exit and not enter a scheme.

3. You don’t have to invest in a hot-selling fund just because a colleague is investing in it. Maybe it’s too hot to handle.

4. Evaluate your portfolio once a year and see if alterations are needed. At the same time, don’t exit the very instance the fund delivers a negative return. Give the investment some time to grow.

5. When a scheme is being merged into another, evaluate whether the new scheme is worth moving into. You may or may not be comfortable with the altered investment objectives. Compare their expense ratios.

6. The risk in equity diversified schemes is lower than that in sector specfic schemes such as telecom, pharma, infrastructure, automobiles etc. If you are a first time investor, it is always easier to start with an equity diversified fund, which spreads investments across all sectors.

7. If you are planning to invest in a scheme, a variant of which you alreay have parked your money in with a seperate fund house, see if there are any other values the fund or its manager provides for having the same kind of fund in your portfolio.

8. When the index levels are down, like they were a few months ago, index funds, where your money grows as the index values move higher, may be a good option.

9. Think of the liquidity. Ask if you can exit the investment in case of an emergency without incurring higher costs.

This is a post from: The Orange Paper ~ A blog about Personal Finance, Indian Stock Market, Financial Planning, Investing, Wealth Building, Taxes and more.

9 tips on how to select a fund

Have you been waiting for the right time to buy a house? If yes, then this is perhaps the right time if you can afford to buy and get a better deal as real estate prices have come down considerably from their all time high in 2006.

Though buying a house may prove to be a prudent decision during this time of slow down and economic recession, you will still need to be an extra careful while closing the deal; it may not turn out to be as prospective and advantageous as you might have expected.

Here are few points or factors one may consider before buying one’s dream home especially in the light of the current scenario:

Enquire about the builder

The first and the foremost thing one must do is, make enquiries about the builder from whom you shall be purchasing the property. Check whether he has any projects pending if any, and if yes, try to find out the reasons for the same. Inquire about his reputation in the market and also inspect one of his already built projects. In this way you will come to know, what you can expect from him for your house. These days due to economic slowdown, it is getting difficult for the builders to get adequate finance from banks, when they are facing a serious liquidity crunch. So there is a possibility you may not get your house at the promised date. Hence do not hesitate asking and obtaining in writing from your builder the date when he will be giving you the possession of your house.

Confirm your loan amount

If you are opting for a home loan, do inquire with your bank about your sanctioned loan amount before giving the booking amount to the builder. The scenario has changed now, as most of the banks have reduced the percentage amount of finance from 90 percent to 70-75 percent of the total value of the property to be acquired or purchased. In that case you will have to arrange for more cash, which if you are not able to do, you most likely will have to forgo your booking amount given to the builder.

Review your financial status

During this recession time, all of us run the risk of losing our jobs. What if you lose your job after closing the deal? You will be in a financial turmoil if you do not have the money to pay your Equated Monthly Installments (EMIs). So take the decision considering your job security and present cash reserves. Also during this period of recession it will not be wise to exhaust all your finances for buying a house. Make sure the purchase you are making is affordable to you, also ensure you don’t take further loans or borrow money to repay your first loan.

Risk cover

Go for the recent schemes announced by the insurance companies these days that incase if you loose your job, the insurance company will pay your home loan EMIs for 3 months. This will give you the flexibility to search for a new job or arrange for the finances.

Try to get the best deal

Due to lack of demand and liquidity crunch in the real estate market these days builders have started offering discounts and other incentives, so it’s the right time to bargain, and get the best deal for buying your house. Do not hesitate to press the property dealer or the builder to reduce the price in case he resists. If he is not agreeable to the reduction in price insist on a decorating allowance or free car parking.

So don’t take any decision in a hurry. Do the analysis carefully and keep in mind the above factors while closing the deal of your dream home this year. All the best!

This is a post from: The Orange Paper ~ A blog about Personal Finance, Indian Stock Market, Financial Planning, Investing, Wealth Building, Taxes and more.

5 Points to Consider Before Buying Your Dream Home

A lot of kids and teenagers nowadays do not recognize the cost of earning and spending money. They are not oriented that investing is necessary even if they are still pretty young or students. As parents, we play a critical responsibility in this subject, especially in today’s global climate, the importance of this cannot be stressed more.

You must be able to tutor your kids on how to save money. They ought to be able to understand the idea of money and investment as early as childhood. This will prepare them to be trained true money management, as they grow up.

Here are 5 very simple yet effective tips on how you can teach your children how to save money for 2009 and beyond starting today:

1. Significance of Money

Your children should be skilled of the significance of money. Once your children have learned how to calculate and count, that is the ideal time for you coach them the true meaning of currency. You should be dependable and clarify to them in simple ways and do this regularly so that they are able to remember what you trained them.

2. Importance of Saving Money

Always teach them the importance of saving money. Make them appreciate its importance and how it will influence their lives. It is important that you consider questions from them about this subject and you should be able to answer them with wise words of wisdom.

3. Pocket Money

When giving them their pocket money. You must give them their allowances in denominations. That way you encourage to keep a certain bill for the future. You can inspire them to do this by telling them that the money can be saved and they can buy their materialistic wants such as iPods, fashionable clothes and games consoles once they have saved money to afford them.

4. Earning Money

You can also teach them to work for money. This can begin from the comfort of your own home. You can pay them small allowances towards household chores such as cleaning their rooms, taking the garbage out or even helping out with the washing up of dishes. This simple yet effective method of earning money will make appreciate how it takes effort to gain money in the first place, and hence should be spent wisely.

5. Give them a piggy bank

You can give them small piggy banks to encourage save money and wait until it fills up. You can also open children and teen bank accounts for them and let them save away some money from their allowances. Which will keep them motivated and see there small financial wealth accumulate. Bank accounts normally have very competitive and attractive interest rates specifically for young children and teen saver bank accounts.

The subject of money and financial intelligence is not something that is learned by children in just one single session. Instead you should be patient in teaching them and linking the value of money in all of their daily activities. Children will learn easier when you are patient and consistent in mentoring and encouraging them in this endeavor.

Source: Waseem Mirza

This is a post from: The Orange Paper ~ A blog about Personal Finance, Indian Stock Market, Financial Planning, Investing, Wealth Building, Taxes and more.

5 Simple Tips to Educate Your Children to Save Money