Author: Anshul

SBI cuts interest rate on savings account: Find out which banks offer higher rates

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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State Bank of India, the country’s largest lender by assets, recently slashed savings deposit rates by 25 basis points (bps) or 0.25 percent. The new rates, SBI said, will be effective from April 10.  The bank said its savings rates for balances of up to Rs 1 lakh and above will be reduced to 2.75 percent as against the earlier 3 percent.

As per Reserve Bank of India rules, interest on a saving account is calculated on a daily basis based on the closing amount. The interest accumulated is credited to the account on half yearly basis or quarterly basis depending on the type of account and the bank’s rule.

The interest rate offered on the balance amount in a savings account varies among banks.

Here are the interest rates offered by top lenders on savings accounts:

HDFC Bank

The country’s leading private sector bank offers an interest rate of 3.50 percent on savings deposits below Rs 50 lakh. On deposits of Rs 50 lakh and above, the lender offers 4 percent interest.

ICICI Bank

ICICI Bank offers 3.5 percent interest rate on balances up to Rs 50 lakh. On balances above Rs 50 lakh, it offers 4 percent.

Punjab National Bank (PNB)

On balances up to Rs 50 lakh, PNB offers 3.5 percent interest. It offers 4 percent on balances of Rs 50 lakh and above.

YES Bank

YES Bank offers 5 percent interest rate on balances up to Rs 1 lakh. On balances above 1 lakh up to Rs 1 crore, it offers 6 percent interest. The bank offers 6.25 percent interest rate on balances above 1 crore, but up to Rs 5 crore.

Kotak Mahindra Bank

Kotak Mahindra Bank offers 4 percent interest on savings accounts of up to Rs 1 lakh. On deposits above 1 lakh, it offers 5 percent rate.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Coronavirus: Here’s when you should withdraw PF money amid lockdown

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Union labour ministry recently amended the employees’ provident fund (EPF) scheme to allow members to make a partial withdrawal, or ‘advance’ withdrawal, from their corpus to help tide over hardship caused by the coronavirus lockdown.

According to the new EPF rule, subscribers can withdraw 75 percent of balance or three months’ wages, whichever is lower, as non-refundable advance from their account.

According to the notification, employees working in establishments and factories across India, who are members of the EPF Scheme, 1952, are eligible for the benefits of non-refundable advance.

The scenario under which one should withdraw from the PF account

As per the rule, subscribers who are facing any financial exigency due to the pandemic and subsequent lockdown may go for EPF withdrawal.

“For individuals who are members of the provident fund, the relaxation on withdrawal conditions under the EPF Scheme can help them tide over short-term cash crunch, ” Richa Mohanty Rao, partner, Cyril Amarchand Mangaldas said. This cash crunch may be the result of a delayed salary in the wake of the ongoing 21-day lockdown in the country.

Employees, facing liquidity issues, can also withdraw PF money and use it as an emergency fund to meet pressing expenses. The same can be done in order to pay a debt, credit card dues or loan EMIs.

In the wake of the coronavirus pandemic, regular flow of income may have been interrupted for many employees. They can use the non-refundable advance of their PF balances to tide over their liquidity issues.

Also read: How to withdraw EPF money citing COVID-19 outbreak

Meanwhile, partial withdrawal, or ‘advance withdrawal’ is also allowed from a PF corpus under a number of conditions such as purchase or construction of house, repayment of a loan, non-receipt of wage for two months, marriage of self/daughter/son/brother, for medical treatment of family members, among others.

However, experts warn that withdrawing from the EPF corpus should be the last resort. EPF works on compounding and the corpus, if allowed to build up, can reap huge benefits in the future.

“Most of us have generally a career spanning 40 years. So if the PF is deducted and accumulated through the 40 years, one can calculate the compounding effect,” said Lakshmi Murthy, CPO, ITM Group of Institutions.

The interest on EPF contributions is exempt from tax up to certain limits and consequently it is one of the best debt investment options available at present.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Health insurance policies may soon cost 5-25% more; here’s why

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Health insurance policy premiums could see a price rise soon, according to PolicyBazaar. Prices can go up by 5-25 percent depending on the insurance company and the product features. The rise is in view of the revision of all health products that was announced last year.

“In October 2019, the Insurance Regulatory and Development Authority of India (IRDAI) issued a list of guidelines for health insurance companies with the proposition to make the health insurance products more customer-centric,” said Amit Chhabra, Head, Health Insurance – PolicyBazaar.

(Also read: 5 things to keep in mind while buying policy online)

IRDAI has made it mandatory for all insurance companies to adhere to the guidelines and implement in same in health insurance products with effect from October 2020.

“Insurers are using this time to revamp their products by adding new features and standardising products as per IRDAI guidelines… and launch them within two-three months with a higher price,” Chhabra noted.

(Also read: Here’s a list of insurance options that cover Covid-19)

With new guidelines in place, all exclusions in a health insurance cover will be completely standardised in accordance with the policy terms and conditions. Any disease or ailment that is diagnosed by a physician 48 months prior to the issuance of the health cover will be classified as pre-existing diseases. Apart from this, any condition whose symptoms or signs have resulted within three months of the issuance of the policy will also be classified under pre-existing diseases.

“All health conditions and illnesses acquired after the issuance of policy will be covered under the policy. Some of the important and major diseases that will be added to the list includes Alzheimer, Parkinson, AIDS/HIV and morbid obesity. Age-related ailments including cataract surgery and knee-cap replacements would also be covered,” Chhabra explained.

(Also read: Does my policy cover COVID-19; how to register a claim and other questions answered)

Moreover, factory workers and those employed where harmful chemicals are used that can impact health over a long-term period, cannot be refused respiratory or skin ailments that arise as a result of workplace conditions. Such conditions will be included in the revamped health insurance policies.

Mental illnesses and several other health issues will also be included in all regular health insurance products.

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Rupee opens 18 paise lower at 75.81 against dollar

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Indian rupee opened 18 paise lower at 75.81 per dollar on Wednesay against previous close of 75.63. The Reserve Bank of India (RBI) has reduced the timing of market hours for call money market, government securities market, currency market till April 17 (from 10 am to 2 pm) following the unprecedented situation that has emerged due to the spread of coronavirus.

Meanwhile, Indian domestic market opened on a weak note following its global peers but soon recouped losses to trade higher led by gains in pharma and auto stocks.

Asian stocks stepped back on Wednesday after two sessions of sharp gains as investors tempered their optimism about the coronavirus while death tolls were still mounting across the globe.

Not helping sentiment were wild swings in the oil market, where prices rebounded in Asia after sliding on Tuesday to leave traders feeling dizzy.

U.S. crude futures jumped 5.5 percent to $24.93 a barrel, having shed 9.4 percent the session before, while Brent crude added 75 cents to $32.62.

(With inputs from Reuters)

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Coronavirus health insurance: Does my policy cover COVID-19; how to register a claim and other questions answered

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Does my existing health insurance policy cover coronavirus?

Health insurance policies cover all kinds of respiratory diseases, which means they cover coronavirus, provided the affected person does not have COVID-19 at the time of the purchasing the policy.

“Coverage will be available in all products that offer hospitalisation cover. Hence, all covers such as in-patient treatment, pre-hospitalisation, post-hospitalisation and ambulance cover that a particular health policy offers will be available for coronavirus as well,” explains Mayank Bathwal, CEO, Aditya Birla Health Insurance.

Will testing for COVID-19 also be covered by my policy?

No. Diagnostic expenses are generally not covered by health policies. However, if the patient is tested positive and hospitalised, diagnostic expenses will be covered under pre-hospitalisation extension. Accoring to experts, in case, the policy covers OPD (outpatient department) expenses, then the cost of diagnostics can be covered depending on the policy terms.

Is there any circumstance under which my policy will not cover COVID-19?

Yes, there are certain limitations imposed on the coronavirus infection as well. According to PolicyBazaar, if you already have been suffering from a respiratory infection in the past four weeks, then your mediclaim under a basic health insurance policy or a coronavirus specific insurance policy might not get settled.

Also, you may not be able to register a claim under the following conditions:

• If you and your family members have recent travel history to the worst affected countries
• If you have been hospitalized for lesser than 24 hours
• If you have pre-existing cold-like symptoms and were going for planned treatment
• If the insured contracts the disease during policy waiting period

How can I  claim insurance for confirmed coronavirus?

You can choose to go with cashless claim facility or reimbursement facility depending upon the policy terms.

“For cashless claim, you can choose to get admitted in a network hospital and take the necessary treatment by informing the third party administrator (TPA) within the hospital,” explains Amit Chhabra, Head of Health Insurance at PolicyBazaar. In cashless claims, a patient does not have to pay any incurred expense for the treatment of an illness.

“While in reimbursement process, you can take treatment at any choice of hospital after informing the insurer and pay the incurred bills. All these bills are later reimbursed to the policyholder up to the sum insured after proper verification from the insurer,” Chhabra adds.

In any form of insurance, there are terms and conditions, exclusions, or waiting periods as per which claims are settled or rejected.

Are there specific policies for coronavirus too? If yes, what is the sum insured?

Yes, many insurance companies have come up with insurance products that cover individuals specifically for coronavirus.

GoDigit, built under Digit Health Care Plus is an insurance product that covers individuals on the detection of coronavirus, wherein 100 percent sum is insured in the form of a lump sum. If quarantine is advised, the policyholder is paid 50 percent of the sum insured in the form of a lump sum. You can choose from multiple sums insured options starting from Rs 25,000 up to Rs 2 lakh.

Star Novel Coronavirus Insurance Policy, launched by ‘Star Health and Allied Insurance’ covers all those who test positive for COVID-19. It provides a lump-sum payment to any individual insured between age 18 to 65. The policy doesn’t have any international travel history-related exclusions. It is available under two sum insured options of Rs 21,000 and Rs 42,000 at premiums of Rs 459 plus GST and Rs 918 plus GST, respectively.

‘COVID-19 Protection Cover’ of ICICI Lombard also pays 100 percent of the sum insured to the policyholder in case they are declared coronavirus positive, irrespective of hospitalisation expenses.

Airtel Payments Bank recently said that it has partnered with Bharti AXA General Insurance to offer health insurance plans to provide cover and give financial protection against COVID-19.

Under the tie-up, the companies are offering two health insurance plans — Bharti AXA Group Health Assure which offers lump sum benefit of Rs 25,000 and Group Hospital Cash which provides daily benefit starting Rs 500 per day — to provide protection against COVID-19.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Working from home during coronavirus lockdown? Follow these 6 time management tips

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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While the coronavirus pandemic is intensifying with each passing day, working from home has become a new normal for most of the employees. This may be the first experience of working from home for some and it comes with its own set of advantages and challenges.

Working from home saves on commuting time and accords choice of working conditions, but at the same time it becomes problematic to professional and personal while working remotely. It is challenging to keep up the productivity as there is a distinct possibility of taking things a little too easy when working from home.

Effective time management is essential if one wants to continue meeting deadlines when working from home.

Here are some tips on how to manage time while working from home:

Maintain a to-do list

It is important to organise and prioritise important tasks with a the help of a to-do-list. It will help keep you motivated and also add an additional layer of structure to the day. And it’s so very easy to do. Just list the day’s tasks on a piece of paper and start ticking away as you finish them.

Keep a track of time and work

You can keep tabs on how much time you spend on each task by setting up an activity log. Before starting a task allot a time and after completing the task, just calculate how much time it took you to finish it. This will give you an idea of your efficiency and speed. Accordingly, you can take up future tasks.

Take ‘in between’ breaks

It’s also a good idea to have a list of ‘in between’ tasks. There may be some minor work, which may take 10 minutes or fewer to complete, and that can fit in your day. This may include small household chores. Figure them out and take them up as work allows.

Stay away from distractions

While working from home, it is important to stay away from everything unwanted that is sure to grab your attention. You shouldn’t have anything lying nearby that could be a source of distraction. For instance, a book of choice or a video game. Or else you may end up spending time on them.

Set aside time for breaks and lunch

You can plan out the day by establishing when throughout the day you are going to eat. You can set up time for these and try to finish them in the allotted time.

Maintain a healthy work-life balance

It is extremely important for you to maintain a healthy work-life balance by sticking to a routine and setting time aside for yourself. You can use the time saved by the freedom from the commute to develop healthy habits such as simple exercises at home, walking around while on a call or even cooking a healthy meal.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Rupee opens 32 paise stronger at 75.90 against dollar

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Indian rupee opened 32 paise stronger at 75.90 per dollar on Tuesday against Friday’s close of 76.22. Forex markets were closed on Monday on account of Mahavir Jayanti.

The Reserve Bank of India (RBI) has cut the money market timing from earlier 9 am -5 pm to 10 am – 2 pm from April 7 to 17 in view of the ongoing coronavirus and subsequent lockdown.

Meanwhile, Indian indices also surged on Tuesday, in line with Asian peers, on signs of a slowdown in coronavirus-related deaths globally.

Hong Kong futures were up and Australia futures also rose in early trade.

Oil futures resumed their decline, falling more than $1 per barrel on Monday, after Saudi Arabia and Russia delayed a key meeting aimed at resolving growing excess supplies at a time the pandemic has pushed down demand.

Prices had previously notched two sessions of double-digit gains on hopes the producers would meet and agree to production cuts.

(With inputs from Reuters)

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Coronavirus lockdown: As digital payments rise, here’s how you can protect your money from fraudsters

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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With a rise in the number of people making digital payments amid the coronavirus lockdown, fraudsters have amplified their attacks on the digital space. Hence, it is important to ensure that all your online transactions are safe and secure.

Here are some common issues and the ways to deal with them while making digital transactions.

Types of digital frauds

Phishing is the most common fraud as far as e-wallets and online transactions are concerned.

“The typical modus operandi is that the customer receives a call/SMS/email from a fraudster claiming to be from the wallet firm either to confirm KYC details or to collect and encash offers. The victim is pressurised with deadlines to confirm details and often provide details of their login credentials such as PIN while filling fraudulent forms,” said Rajesh Mirjankar, Managing Director and CEO of InfrasoftTech.

Frauds can also occur when victims click on links that can download trojans on their mobile phones or desktops that could read login credentials and fraudster could then use them to siphon funds from e-wallets or other accounts.

How to deal with such cases

Experts suggest that personal measures are the need of the hour to protect against such crimes.

Sanjul Vaish, Managing Director of ATCS India explained, “On the personal front, users need to be very careful while using online platforms. One should be wary of phishing activities while using websites of banks, not fall prey to fraudulent emails and download malicious attachments.”

Here are some tips to keep digital payments safe:

Do not share confidential details

One should never share confidential details such as card number, expiry date, PIN and OTP with anyone.

“If users are asked to give such details by anyone pretending to be an official representative from bank or any third party mobile app, it’s better to ask for an official email regarding the same (do not share email id as the bank or third party apps would already have registered email ID in their records),” according to National Payments Corporation of India (NPCI).

Do not click on links in SMSes without understanding what they are for

Never click on links in any SMS, especially those from unknown agencies. It could be an attempt to skim money off your account.

Remember, the name is not everything on the internet

Make a note of the official website and official email ID of the banker, stockbroker or anyone directly from their representatives or official website. Some names could be deceptive.

Never share payment SMSes from your device

It’s better to avoid sharing SMSes with anyone with regards to payments.

“Scamsters can coax users into sending text messages from their device which will bind the device with a fraudulent identity, and it becomes easy to skim money off an account,” said Mirjankar.

However, if users are sure that the recipient is genuine, they can do so.

Check for the spam warning

Various payments-related apps warn individuals about spam numbers.

“On receiving a payment request from an unknown account, keep an eye out on the spam warnings,” according to NPCI.

Be vigilant on encountering a failed transaction

Many times, while making digital payments, users may encounter a failed transaction, so they make the transaction again. On checking, they may find that the amount is debited twice from the account.

“Banks make a quick refund in most of the cases, however, customer should be vigilant and keep a track of refunds. While making an EMI transaction, they may face a situation whereby the transaction is successful i.e. the amount gets debited but the same doesn’t get converted into an EMI. All they need to do is call their issuer and get the transaction converted to EMI,” Sunil Khosla, Head- Digital Business, India Transact Services Limited explains.

Guard your login ID and passwords and change it regularly

It’s important to change passwords at regular intervals. Also, use certified applications for digital wallets and keep it safe by password protection.

Perform transactions only from private network

According to Bohitesh Misra, Co founder, COO & CTO, Xpay Life, consumers should perform digital transactions only from a private network and a dedicated computer.

“They must ensure that latest anti-virus which can detect malware, trojans etc are installed in their computers with current updates. Consumers should not use internet from any public wi-fi and must avoid apps that they do not trust,” he adds.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Coronavirus: All you need to know about available banking services, new bank timings, and more during lockdown

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Amid the 21-day lockdown imposed nationwide to contain the spread of coronavirus, banks have taken numerous steps to ensure safety of their employees and customers. Banks have reduced staff, changed timings, and are pushing customers to use digital channels more instead of branch visits.

In view of this, several bank services have also taken a hit. While some services are fully functional, others deemed non-essential have been stopped or curtailed. Fully functional services include online banking, cash withdrawals at ATMs, electronic clearing service (ECS), mobile banking, utility bill payments, Unified Payments Interface (UPI) payments and point of sale (POS) transactions.

Also read: Deposits – The bread and butter of banks: How major withdrawals can affect lenders

Some services that are partially functional includes cheques and demand draft, cash deposit and withdrawals at branches, delivery of cheque book, physical debt or credit cards, foreign currency exchange, fixed deposit (FD)/recurring deposit (RD) withdrawal or deposit, KYC and Aadhaar linking and locker facilities.

Services that have been severely impacted includes loan processing and disbursal, new credit card applications, passbook services and opening new bank account facilities.

Meanwhile, top lenders have also revised their operating times.

Here are the revised bank timings during lockdown:

Source: Paisabazaar

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Why retail investors are lapping up equity mutual funds on the fall

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Stock markets had been trading at lofty levels till late February before falling off a cliff in March. Yet, retail investors who invest in stocks through equity mutual funds seem to have shown remarkable patience during the decline, even acting in a contrarian manner – buying when others around them were selling.

While actual flows data for March is awaited, it is likely that the print, when it comes out, will show equity MFs seeing inflows rather than outflows, says Omkeshwar Singh, Head Rank MF of Samco Securities.

One factor that would have helped flows was that March sees inflows into equity-linked saving schemes (ELSS).

Also read: Looking to invest amid coronavirus crisis? Here’s how to choose the right mutual fund

“But new investors have also got into the markets due to attractive perceived valuations of equity markets,” Singh says.

Markets fell about 30 percent in March but Harsh Jain, Founder and COO of Groww, says that instead of hitting the pause button on their investments, investors actually invested more.

“[Many of] our investors redeemed from debt instruments and reinvested the amount in equities in a staggered manner,” Jain, whose Groww is an online direct investment platform for mutual funds.

“On the day of big market declines, we witnessed a huge jump in inflows and the number of users who invest in equities,” Jain adds, adding that equity investments on Groww grew 15-20 percent since the second week of March.

Also read: Why you should not stop your mutual fund SIP?

The behavior of retail mutual fund investors is quite odd as they are generally perceived to be more impatient than seasoned professional investors.

But the fact that they are holding on to their investments would suggest “developed a better understanding” of how to invest in equities, says Vijay Kuppa, Co-founder, Orowealth.

“They see markets decline as a brilliant time to invest, further enabling them to generate superior returns over a period of time. This is the main reason why we are witnessing more participation of investors in equities,” he explains.

Also read: Coronavirus mayhem: FPIs pull out record Rs 1.1 lakh crore in March

According to Kuppa, there were few SIP cancellations in March, a trend he calls “surprising but very good”.

Further, the fact that investors are seen as selling some portion of their debt portfolios and reallocated them to equities is a classic allocation technique advocated by core financial planning principles.

For instance, Rs 100 invested 50:50 in debt and equity would become 40:60 if the stock portion fell 30 percent and the debt portion returned 2 percent: Rs 35 in stocks and Rs 51 in debt. It would then be prudent to sell off some of the debt portion and reinvest the money in equities to bring the asset allocation back in balance.

There is, however, another trend, when it comes to equity investments that could potentially be a cause of worry.

There is some evidence that many investors exited their equity portfolios only to re-enter at lower levels in March, which would be termed as an act of investors trying to time the market.

There could be several reasons for this. Many investors who have successfully made money in the bull market of the last several years would try and replicate their success.

But Sousthav Chakrabarty, CEO and Director, Capital Quotient, advises against this.

“There are certain challenges in this execution, such as identifying false alarms during a market correction,” he says. Case in point: investors who may have bought in 2008 when the market fell 30 percent, thinking stocks were now cheap, would have taken another 50 percent hit till they bottomed out.

Besides, taking a market call on whether stocks have become cheap means investors are themselves “trying to analyse the global and domestic impact on the economy during the current COVID-19 scenario” says Chakraborty, something that goes against the principles of mutual fund investing and asset allocation.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow