Tag: personal finance

Jupiter Neobank secures Rs 100 crore from Alteria Capital

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

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India’s premier money app, Jupiter, has received a commitment of Rs 100 crore in tailored venture debt, from specialty debt financing firm, Alteria Capital, proceeds of which will be primarily used towards further building and scaling up the Mumbai and Bengaluru-based company’s bouquet of lending products.

The transaction, the first of its kind in the space, and one of the largest commitment by Alteria till date, will further solidify Jupiter’s market leading position across the broader Indian financial services space, while also leveraging synergies across the Jupiter group.

“We are delighted to join hands with Alteria Capital who are also aligned on our mission to democratise credit in India and encouraging responsible use of the same.” Jitendra Gupta, Founder and CEO, Jupiter, said.

Also Read: RBI says SBI, ICICI Bank, HDFC Bank remain systemically important banks or SIBs

He further said that the partnership will act as a catalyst to the company’s efforts of building an all-inclusive and innovative platform for cutting-edge financial services products.

“As we enter the new year, we at Jupiter look forward to providing accessible and affordable credit options to our customers, thereby creating a healthy credit growth in the country,” Gupta added.

Vinod Murali, Managing Partner and Co-Founder, Alteria Capital, said that Jupiter is a very strong brand in the personal finance app space for Indian consumers. Providing customised and agile credit products is going to be an important differentiator and Jupiter is well placed to target this opportunity.

“This is one of the largest commitments for Alteria and we are excited to partner with Jitendra and the team at Jupiter to help facilitate their credit journey and make a meaningful impact in the Indian retail credit ecosystem,” he added.

In late-2022, Jupiter, which counts the likes of Tiger Global, QED Investors, Sequoia Capital India, Matrix Partners India, Brazil-based Nubank, Global Founders Capital, Mirae Assets Venture, Addition Ventures, Tanglin VC, Greyhound, 3one4 Capital and Beenext among its list of blue-chip investors,  launched its first-of-a-kind On-Demand Salary product that provides users with the freedom to withdraw their salary basis the number of days they have worked, on any day of the month.

At the time of its launch, it had rolled out its wildly successful flagship 100 percent digital savings bank account in partnership with Federal bank with always-on help and in-built money management features like real-time spend insights, tracking liquid assets across bank accounts, personalised savings goals, and sending, receiving funds via UPI.

This year, the three year-old company is preparing to roll out multiple innovative investments and credit-focused products designed to broaden the Indian consumers’ basket of financial offerings, the company said in a press note.

Also Read: Banks, other financial institutions and NaBFID expected to finance 30% of national infrastructure pipeline, says DFS secretary

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

Small savings schemes vs fixed deposit — Which should be your investment pick and why?

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

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Bank fixed deposits (FDs) and small savings schemes are two of the most well-liked low-risk investment options available in India, particularly among investors who prefer the safety of their capital. Compared to fixed deposits, which are provided by every bank in the country, small saving schemes are managed by the Union government and come in a wide variety of forms.

These are Public Provident Fund, Post Office Time Deposits, National Savings Scheme, National Savings Certificate, Kisan Vikas Patra, Sukanya Samriddhi Yojana, Senior Citizens Savings Scheme, etc. and have different terms and conditions and investment goals.

After RBI’s multiple repo rate hikes, all major banks have hiked interest rates on fixed deposits. Government has also raised interest rates for small savings schemes consecutive in the last two quarters, except for PPF and Sukanya Samriddhi Yojana.

However, if we compare the two, the returns delivered by FDs and small savings schemes are mostly at par.

“In May of 2022, the State Bank of India (SBI) offered a maximum interest rate of 5.10 percent on fixed deposits with terms of between one and three years. Since then, it has increased significantly, reaching 6.75 percent as of December 14, 2022. HDFC Bank’s current interest rates for terms of one to five years are 6.50–7 percent, effective as of December 14, 2022. On the other hand, small savings schemes offer up to 8 percent return. For terms shorter than five years, rates range from 3.50 percent to 6 percent. The interest rates that small finance banks are offering on fixed deposits are extremely competitive,” Abhinav Angirish, Founder of Investonline.in, while talking to CNBC-TV18.com.

ALSO READ | Key money changes from January 2023

Here’s a look at FD interest rates of SBI and HDFC Bank:

State Bank of India (SBI)

HDFC Bank

Now, let’s take a look at interest rates offered by small savings schemes:

As for senior citizens, they can choose the correct bank fixed deposit and even earn 7.25–9.26 percent. The interest rates for five-year recurring deposits continue to be 5.8 percent, while the rates for savings accounts continue to be 4 percent, Angirish told CNBC-TV18.com.

The Senior Citizens Savings Scheme (SCSS), which is a small savings scheme, earns 8 percent starting on January 1. An investment in Kisan Vikas Patrika with a maturity of 120 months will yield 7.2 percent in interest.

Which is better to invest?

It’s important to note that the rates of small savings schemes have risen after a period of almost four years, and these now offer strong competition to bank FDs, especially when it comes to safe and stable investment options.

“The hike in rates comes on the back of the rising yields on government bonds, which are, in turn, linked to the recent repo rate hikes by the RBI. With most of the government-supported schemes witnessing a sharp surge in rates, the returns offered by small savings schemes are now at par with that of FDs backed by larger banks, and when we consider the sovereign backing on the schemes, as well as attractive tax benefits, there is no doubt that the former emerge as the clear winner,” Raghvendra Nath, Managing Director of Ladderup Wealth Management, said.

While it is true that certain small finance banks are offering 9 percent returns on FDs, Nath added that these are still taxable by law and less safe than small savings schemes.

“If the focus is on safe and stable returns along with tax benefits, then small savings schemes is the best bet,” Nath suggested.

On the other hand, Angirish thinks that small savings schemes do not offer flexibility to withdraw when the need arises.

“So, for those looking for flexibility and safety with higher returns, they can look at tax-friendly incomes and products such as tax-free bonds and debt mutual funds. As a result of rate hikes, the yields on short-term debt mutual funds such as low duration funds and ultra-short term duration funds have increased, making them appear more appealing to investors,” he told CNBC-TV18.com.

Short term debt mutual funds choose to put their money into bonds with shorter maturities. Because of this, they are able to reinvest their proceeds at a rate that is higher than the standard rate of investment. Investors seeking higher returns on their money in the short term can consider short-term debt funds rather than fixed-deposits.

Another advantage of investing in debt funds is that if held for more than three years, investors can take advantage of the indexation benefit and pay tax on their profits at long-term capital gains (LTCG) rates, which are often lower than the investor’s income tax bracket. This perk does not apply to Fixed Deposits.

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

Bank locker, NPS, credit card reward points, insurance policy, mutual funds — 5 money changes in January

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

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2023 has ushered in a bevvy of significant changes from a personal finance point of view ranging from new bank locker rules to revisions in credit card reward points norms. These changes will directly impact the lives of the common people in India. Let’s take a look at them:

New bank locker rule

A new bank locker rule has come into effect according to the Reserve Bank of India (RBI) notification. Many banks have sent text messages to customers over the last few days to renew their safe deposit locker agreements. As part of this, existing locker depositors were required to furnish proof of eligibility for a renewed locker arrangement. Additionally, they were required to sign a renewal agreement by December 31, 2022.

The RBI announced revised guidelines on August 8, 2021, which became effective from January 1, 2022. And now, all the locker owners must show their eligibility for a new locker arrangement and sign a renewal agreement.

New NPS partial withdrawal rule

The Pension Fund Regulatory and Development Authority (PFRDA) has recently issued a new order regarding National Pension System (NPS) withdrawals, according to which customers of all government sectors will have to submit their application for partial withdrawal through their associated nodal offices. This includes subscribers from central/state government and central/state autonomous bodies.

In simple words, this means that the said subscribers will have to submit supporting documents now to substantiate the reasons for partial withdrawal.

In the wake of the COVID-19 pandemic, the pension regulator, in January 2021, had allowed NPS subscribers to request a partial withdrawal online through self-declaration and documents were not required to be submitted. With the abating of pandemic-related difficulties and relaxation of lockdown restrictions, PFRDA said that the online partial withdrawal facility from NPS through self-declaration will no longer be available for government sector subscribers.

Reward point rules for credit cards

SBI Cards, the pure-play credit card company, has slashed the accrual reward points on online spends at Amazon to 5X reward points. The company has further allowed Cleartrip vouchers to be redeemed in a single transaction only. Users will not be able to club it with any other offer or voucher with effect from January 6, 2023. However, customers will continue to accrue 10X Reward Points on online spends at Apollo 24X7, BookMyShow, Cleartrip, EazyDiner, Lenskart and Netmeds.

Meanwhile, HDFC Bank has also said that rent payment will not earn reward points, and redemption of reward points on various cards has been capped in certain segments. According to the SMS sent to its select customers, the redemption of reward points for flights and hotel bookings on the bank’s SmartBuy portal is now capped per calendar month at 1,50,000 reward points for Infinia cards, 75,000 reward points for Diners Black cards, and 50,000 reward points for all other cards. Similarly, the redemption of reward points for Tanishq vouchers is now capped at 50,000 reward points per calendar month for Infinia cards.

Mandatory to provide KYC details while purchasing insurance

The Insurance Regulatory and Development Authority of India (IRDAI) has made it mandatory for policyholders to provide Know Your Customer (KYC) details when purchasing any insurance policy from January 1, 2023. This requirement has been put in place to ensure insurance companies have accurate and up-to-date information about policyholders, which can help assess risks associated with providing coverage and prevent fraudulent activities.

Bank statements, passbooks are no longer valid KYC documents for investing in mutual funds

Individual mutual fund investors cannot use bank statements and passbooks as valid proof of identification or proof of address now for completing the Know Your Customer (KYC) process. KYC Registration Agencies (KRAs) have clarified that they will not accept bank statements and passbook copies of individual investors, including NRIs, from January 2023.

However, KRAs said they continue to accept bank statements or passbook copies with entries of at least two months as valid KYC proof for non-individual investors and Hindu Undivided Family (HUF).

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

EPFO issues guidelines on high pension — Who is eligible and how to apply?

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

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The Employees’ Provident Fund Organisation (EPFO) has recently issued a clarification in regard to eligibility criteria for higher pension. The Provident Fund (PF) regulator issued circular in compliance to the Supreme Court order laying down the the eligibility conditions for employees to get higher pension and how they can apply for it online. The EPFO also mentioned that fund authorities shall implement the Supreme Court ruling within a period of eight weeks.

Who are eligible for higher pension?

According to EPFO, these subscribers are eligible to receive higher pension:

• Members, who, as employees, contributed on salary exceeding the-then wage ceiling of Rs 5,000 or Rs 6,000.
• Members who exercised the joint option under the Employees’ Pension Scheme (EPS) of the pre-amendment scheme, while being members of EPS-95.
• Those whose exercise of such an option was rejected by EPFO.

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How eligible pensioners can apply for higher pension?

The eligible pensioners are required to visit their concerned regional EPFO office along with a duly-filled-in application form and specified documents to apply for a higher pension. The process of applying for a higher pension at the regional EPFO office is as follows:

• The request will be made in such form and manner as may be specified by the commissioner.
• The application form for validation will contain the disclaimer as ordered in the aforesaid government notification.
• In case of share requiring adjustment from provident fund to pension fund and if any, re-deposit to the fund, the explicit consent of the pensioner will be given in the application form.
• In case of transfer of funds from exempted provident fund trust to pension fund of EPFO, an undertaking of the trustee shall be submitted. The undertaking shall be to the effect that due contribution along with interest-up to the date of payment, will be deposited within the specified period; and
•  The method of deposit of such funds will follow through subsequent circulars.

What documents will be required to apply for higher pension?

A pensioner is required to submit the following documents for evidence and further processing:

• Proof of joint option under Para 26(6) of the EPF scheme duly verified by the employer; and
• Proof of joint option under the proviso to erstwhile Para 11(3) duly verified by the employer; and
• Proof of remittance in provident fund account on higher wages exceeding the prevalent wage ceiling of Rs 5,000/Rs 6,500; and
• Proof of remittance in pension fund on higher wages exceeding the prevalent wage ceiling of Rs 5,000/Rs 6,500, if any,
• Written refusal of APFC or any other higher authority of EPFO to such request/remittance.

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What will happen once the application form is submitted?

According to the circular, once the eligible pensioner submits the application form, the EPFO authority i.e., the Regional PF commissioner will deal with it as follows:

• Each application will be registered and digitally logged. The receipt number will be provided to the applicant.
• The application will land into employer’s login whose verification with e-sign will be essential for further process.
• RPFC will cause each application to be converted into e-file, as far as, possible.
  The concerned dealing assistant will examine the papers including the note on receipt of due amount in the pension fund, and mark the case to the section supervisor/account officer.
• The concerned SS/AO will mark out any discrepancies and send it with the rule position to AFPC/RPFC-II who after due examination will put the case to Officer-in charge of Regional Office.
• The Officer in-charge shall examine each case of pension on higher salary and dispose it by passing a speaking order that shall be intimated to the applicant through e-mail/post. Efforts will be made to intimate them through telephone/SMS.

ALSO READ | New bank locker rules from Jan 1 — how to renew your agreement, compensation and other details

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

New bank locker rules from Jan 1 — how to renew your agreement, compensation and other details

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

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The Reserve Bank of India (RBI) has mandated banks in the country to renew their locker agreements with existing locker customers by January 1, 2023. As part of this, existing locker depositors are required to furnish proof of eligibility for a renewed locker arrangement. Additionally, they are required to sign a renewal agreement before the deadline ends.

The RBI had announced revised guidelines on August 8, 2021, which became effective from January 1, 2022. And now, all the locker owners must show their eligibility for a new locker arrangement and sign a renewal agreement prior to January 1, 2023.

According to the RBI notification, this arrangement must comply with the updated instructions as well as the Supreme Court’s directives in this regard.

Here’s a look at the revised guidelines for bank lockers and their impact on locker users:

What is locker agreement and how can customers do it?

At the time of allotment of the locker to a customer, the bank enters into an agreement with the customer to whom the locker facility is provided, on a paper duly stamped.

A copy of the locker agreement in duplicate signed by both the parties shall be furnished to the locker hirer to know his/her rights and responsibilities. The original agreement shall be retained with the bank’s branch where the locker is situated.

When will banks compensate customers?

As per RBI’s notification, it is the responsibility of banks to take all steps for the safety and security of the premises in which the safe deposit vaults are housed. It has the responsibility to ensure that incidents like fire, theft/ burglary/ robbery, dacoity, building collapse do not occur in the bank’s premises due to its own shortcomings, negligence and by any act of omission/commission.

ALSO READ | Last day for filing belated, revised ITR is Dec 31 — Here’s what happens if you miss this deadline

What will banks liability be?

As banks cannot claim that they bear no liability towards their customers for loss of contents of the locker, in instances where loss of contents of locker are due to incidents mentioned above or attributable to fraud committed by its employee(s), the banks’ liability shall be for an amount equivalent to one hundred times the prevailing annual rent of the safe deposit locker.

When will banks be not liable for any damage?

The bank shall not be liable for any damage and/or loss of contents of locker arising from natural calamities or acts of god like earthquake, floods, lightning and thunderstorm or any act that is attributable to the sole fault or negligence of the customer. Banks shall, however, exercise appropriate care to their locker systems to protect their premises from such catastrophes, RBI said.

What will be the banks’ duty?

Banks shall send an email and SMS alert to the registered email ID and mobile number of the customer before the end of the day as a positive confirmation intimating the date and time of the locker operation and the redressal mechanism available in case of unauthorised locker access.

What is locker rent recovery through fixed deposit?

The RBI has allowed banks to obtain a term deposit (fixed deposit) covering three years’ rent and the charges at the time of allotment. This means, if customers are going to open a locker account, the bank can ask them to open a term deposit covering three years of rent and charges of the locker.

However, as per RBI’s instructions, banks cannot insist on such term deposits from the existing locker holders or those who have satisfactory operative accounts.

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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

FAQ | Deadline to file GST annual return to end on Dec 31 — Forms required, penalty for late filing, other questions answered

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

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The deadline for Goods and Services Tax (GST) annual return filing will end tomorrow, i.e. December 31, 2022. As per Rule 80 of the Central Goods and Services Tax (CGST) Rules, 2017, every registered person liable to file an annual return for every financial year must file the same on or before December 31 of the next financial year. Accordingly, the last date for filing an annual return for FY 2021-22 is December 31, 2022.

Late filing attracts a late fee.

Here’s an FAQ on GST annual return filing:

Who needs to file an annual return?

All entities having GST registration are required to file GST annual returns, irrespective of business activity or sales or profitability, during the return filing period.

ALSO READ | Yet to receive ITR refund? Find out why and steps to check status

The GST annual return forms, GSTR-9 and GSTR-9C, are available on the portal for filing.

The following are NOT required to file GSTR 9:

• Taxpayers opting for composition scheme (They must file GSTR-9A)
• Casual Taxable Person
• Input service distributors
• Non-resident taxable persons
• Persons paying TDS under section 51 of the CGST Act.

What is Form GSTR-9?

Form GSTR-9 is an annual return to be filed once for each financial year by the registered taxpayers who were regular taxpayers, including Special Economic Zone (SEZ) units and SEZ developers.

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The taxpayers must furnish details of purchases, sales, input tax credit or refund claimed or demand created etc., in this return.

What is the difference between Form GSTR-9 and Form GSTR-9C?

Form GSTR-9 must be filed by every person registered as a normal taxpayer. Form GSTR-9C must be filed by every registered person whose aggregate turnover is above a certain threshold during the financial year, as notified by way of Notifications issued by the Government of India from time to time.

Such taxpayers are required to get their accounts audited by a Chartered Accountant or Cost Accountant and need to submit a copy of audited annual accounts and reconciliation statements.

Is it mandatory to file Form GSTR-9?

Yes, it’s mandatory to file Form GSTR-9 for normal taxpayers.

What are the details required to be filled in the GSTR-9?

GSTR-9 is divided into 6 parts and 19 sections. Each part asks for details that are available from previously filed returns and books of accounts.

Broadly, this form asks for disclosure of annual sales, bifurcating it between the cases that are subject to tax and not subject to tax. On the purchase side, the annual value of inward supplies and ITC availed thereon is to be revealed.
Furthermore, these purchases must be classified as inputs, input services, and capital goods. Details of ITC that need to be reversed due to ineligibility are to be entered, according to Clear.

What is the penalty for not filing GST annual return?

The late fee for not filing GSTR 9 within the due date is Rs 100 per day per act. That means late fees of Rs 100 under CGST and Rs 100 under SGST will be applicable in case of delay. Thus, the total liability is Rs 200 per day of default.

This is subject to a maximum of 0.25 percent of the taxpayer’s turnover in the relevant state or union territory. However, there is no late fee on IGST yet.

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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

New year, new resolutions — 5 money moves to lead a debt-free life in 2023

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

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With a new year comes a ton of determination. One of these can be getting out of debt. But eliminating debt cannot happen overnight. You need to have a proper strategy to help increase your chances of success. Here are a few tips that you can use to help reduce debt and, hopefully, become debt free in 2023:

Draw up a list of income and outgoings

Firstly, you should draw a list of income and outgoings while managing debt.
In the new year, begin by working out the fixed costs: those that cannot be condensed or evaded each month.

With the available disposable income, it’s important to be realistic about how much you will need for day-to-day living and your source of income.

ALSO READ | Mutual Funds — Year 2022 wasn’t good, but will it influence your investment strategy in 2023?

Cut what’s not required

Further, align your spending and values and cut expenses. Experts advise reviewing monthly subscriptions because services such as gym memberships, cable TV and online streaming subscriptions can add up quickly.

It’s better to write down everything earned and spent over the course of 30 days. After this, you can evaluate the financial activity at the end of the time and if any costs seem needless, immediately stop it.

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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

NPS partial withdrawal rule to change from January 1 — Check who will be affected

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

Listen to the Article (6 Minutes)

The Pension Fund Regulatory and Development Authority (PFRDA) has recently issued a new order regarding National Pension System (NPS) withdrawals, according to which customers of all government sectors will have to submit their application for partial withdrawal through their associated nodal offices. This includes subscribers from central/state government and central/state autonomous bodies. The same will be applicable from January 1, 2023.

In simple words, this means that the said subscribers will have to submit supporting documents now to substantiate the reasons for partial withdrawal.

The earlier circular and what stands changed

In the wake of the COVID-19 pandemic, the pension regulator, in January 2021, had allowed NPS subscribers to request a partial withdrawal online through self-declaration and documents were not required to be submitted. With the abating of pandemic-related difficulties and relaxation of lockdown restrictions, PFRDA said that the online partial withdrawal facility from NPS through self-declaration will no longer be available for government sector subscribers.

ALSO READ | Key PF changes in January 2023: From new bank locker rules to revision in credit card reward points

PFRDA earlier issued the circular on partial withdrawals under NPS through self-declaration for the benefit of subscribers as a special dispensation to cope with the COVID-19 pandemic to protect the subscribers’ interest and ease the burden of nodal officers, including POPs, from verification and authorization. The circular also provided the option of submission of the partial withdrawal requests by the subscribers through their nodal office/POPs as per the prevalent practice. Now, the same will be withdrawn from next year.

However, the partial withdrawal facility through the self-declaration process will remain available for voluntary non-government NPS subscribers.

About NPS

NPS, as we know, is a government-run investment scheme that gives the subscriber the option to set the preferred allocation to different asset classes. It offers two kinds of accounts — Tier 1 and Tier 2 — for instruments including government bonds, equity market and corporate debt.

While the Tier 1 NPS account is strictly a pension account, the Tier 2 account — known as an investment account — is a voluntary saving account associated with the Permanent Retirement Account Number (PRAN).

Conditions for premature withdrawal

NPS allows investors to prematurely withdraw only after the completion of three years, where the withdrawal amount cannot exceed 25 percent of contributions made by the subscribers.

Withdrawal is allowed only for specified reasons, for example—higher education of children, the marriage of children, the purchase/construction of a residential house (in specified conditions) and for treatment of critical illnesses.

The subscribers can make a partial withdrawal a maximum of three times during the entire tenure of subscription under NPS. The partial withdrawal request can be initiated online by the subscriber.

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

Key PF changes in January 2023: From new bank locker rules to revision in credit card reward points

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

Listen to the Article (6 Minutes)

January 2023 is significant from a personal finance point of view as a bevvy of changes will come into effect ranging from new bank locker rules to revision in credit card reward points norms. These changes will directly impact the lives of the common people in India. Let’s take a look at them:

New reward points rules for SBI Cards’ users

SBI Cards, the pure-play credit card company, will revise its reward points rule soon. From January 1, the SBI-backed company will slash the accrual reward points on online spends at Amazon to 5X reward points. The company will further allow Cleartrip vouchers to be redeemed in a single transaction only. Users will not be able to club it with any other offer or voucher with effect from January 6, 2023.

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

Editor’s Roundtable | Understanding fixed income investment options in current scenario

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

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There is a saying, ‘hope for the best but prepare for the worst’ and the way to prepare for perhaps things not going as well as they have in 2021 is fixed income. That’s the solution actually. The investors are very attuned to investing in equities because they have lived through this TINA kind of environment – there is no alternative except equities. But now one is getting to a point where fixed income instruments are getting to be attractive. They are vying for attention and they are competing for flows as well.

How interest rates have moved across a variety of fixed income instruments?

Starting from call rate to repo to three months, six months, one year commercial paper (CP), one is basically now getting anything between 6 percent to 8 percent. If one compares where these rates were on March 31, 2022, they are up anything on an average between 250 and 300 basis points (bps). So there has been a pretty large jump.

So where does one invest?

There are many ways to invest in fixed income instruments. There are Public Provident Fund (PPF), post office savings, tax free bonds, fixed maturity plans, but there are debt mutual funds as well, which is perhaps the best way to go.

Within debt mutual funds, there are options which are available. So, the first is the overnight fund or the liquid fund. This is a product which is largely like the savings bank account. One has excess money, parks it there, takes it out when needed. The investment duration usually is between one and seven days. It invests in overnight securities.

One wants to sort of increase the time horizon a little bit. There are money market funds and money market funds, by definition – Reserve Bank of India (RBI) rules don’t permit them to invest in assets with maturities more than 12 months.

They invest in things like commercial paper, certificates of deposits, treasury bills, etc. And here looking at what funds are yielding, the average is about 6.75 percent. Slightly longer duration funds – these are up to one year kind of schemes. They fall in the bucket of low duration funds. They invest in all kinds of things – bank CD’s, CPs, T-bills, G-Secs, state government loans, etc.

Returns here are largely aligned to the one year certificate of deposit, which is between 7.5 to 7.6 percent or so. So, now one is getting to 7.5 and more kind of levels and then one has the one to three year kind of category, which also yields about 7.5 percent in terms of returns.

But the point is that one doesn’t know how the rate trajectory will really pan out. So, there is always the option to invest in a one year fund or a three year fund and then sort of reinvest it. For long, if one thinks that it’s yielding similar or better returns.

In terms of debt mutual funds work, taxation works only on capital gains. There is higher liquidity as compared to investing directly in bonds. Many of them are very liquid instruments. And of course, there is also the investment horizon, which is extremely flexible, because, there’s liquidity available when one wants it on call, one can sell these units and redeem them as one wants.

So, some amount of capital protection as the market heads into 2023 is something to keep on one’s radar. One should explore a little bit more, talk to investment advisors and perhaps take some exposure as well.

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