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Everything about unified payment interface (UPI)

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All you want to know about unified payment interface (UPI)

So far, we have been using cheque, debit/credit cards, online banking and payment wallets to make payments. With the launch of unified payment interface (UPI) in January 2016, making payments has become much easier. The way we make any payment be it our electricity bill or DTH recharge is set to change.
What is UPI?
UPI is launched by NPCI (National Payments Corporation of India), which is the umbrella organization for all retail payments system in India. It enables all bank account holders to send and receive money from their smartphones without entering enter bank account information or net banking user id/password. This app is provided by a majority of PSU and private sector banks. Let’s look at what is UPI in detail and how does it work.
How to download UPI app?
  • You can download the UPI application from your phone’s app store or the bank website
  • After downloading the app, create your profile by entering details like name, virtual id (payment address), password etc.
  • Go to “Add/Link/Manage Bank Account” option and link the bank and account numbers with the virtual id

Let’s look at one example of how UPI can be used to make DTH payment from home:

  • Nadeem subscribes to DTH in his house and wants to make a payment for on demand subscription
  • Nadeem selects the channel and clicks “buy now”.
  • DTH shows the details along with a QR code for UPI payment.
  • Nadeem opens his UPI application on his mobile and scans the QR code on the TV screen.
  • UPI application takes him straight to pay screen with all values pre-populated from the QR code which contained the standard UPI link.
  • He verifies the info on screen and click pay to complete the payment.
  • He gets a confirmation on his mobile and the TV channel is automatically turned on for him to view. (Source: NPCI)

What is the transaction limit?

The transaction limit for UPI is Rs. 1 lakh.
How secure is it?
One of the key areas of concern among users is its security. The app provides end-to-end strong security and data protection since users don’t have to enter bank account information or net banking user id/password. For convenience, the solution also offers 1-click 2-factor authentication in order to protect data from phishing, risk scoring, etc.
Impact on mutual funds
The new payment system is expected to help the mutual fund industry receive payments swiftly. However, experts say that UPI will take some time to pick up in the MF industry.
Srikanth Meenkashi of FundsIndia says, ‘It is a great initiative by RBI. UPI is a cheap, secure, reliable, mobile-first, interoperable, open-source, instantaneous settlement and both pull and push platform. Beside the cost per transaction being low, it will indirectly help penetration of mutual funds due its reliability and two-step process.  However, the real impact will be seen in the long run.’

The need for a cancer insurance plan

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The need for a cancer insurance plan

HAVE you ever wondered how will you cope if you ever contracted cancer? A back of the envelope calculation shows that even in the early stages, the treatment cost can be as much as R12 lakh.


HAVE you ever wondered how will you cope if you ever contracted cancer? A back of the envelope calculation shows that even in the early stages, the treatment cost can be as much as R12 lakh.
There are chances that you have opted for a health insurance policy to ensure your financial protection, but have you ever thought if it is enough in case of a critical disease such as cancer? Some of you may have even opted for a critical illness cover in a health insurance policy. But how many of you are aware about the definition of ‘critical’ stated in such policies.
Such policies might give you temporary relief but are applicable only in the advance stages of critical diseases such as cancer. Therefore it becomes necessary to go for cancer dedicated policies which are specially designed to suit the unforeseen financial needs.
Stages of payout
Cancer dedicated policies offer 25% of the sum assured to the policyholder on the diagnosis of the disease that takes care of the expenses at the initial stages. The amount is credited to the insured person’s account immediately and all future policy premiums are waived off till the end of the policy term. If it is detected in more than one organ, 20% of the sum assured is given for the treatment of each organ. In the advanced stages, a policyholder can claim up to 100% of the sum assured and even get an additional 10% of the sum assured for a period of 5 years as income.
Cost of the cover
A cancer dedicated policy will provide a 30-year-old a sum assured of R20-25 lakh for a mere payment of R4,500-6,000 per year (on an average) for a 35-40 year term, which is less than the cost of a weekend road trip with your loved ones.
So, if you are still thinking whether or not to opt for a cancer dedicated product, the answer is yes. In case cancer does happen to you unfortunately, your timely financial management can ensure that the high costs of treatment are taken care off.

All you need to know about GST

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 GST – All you need to know

The Goods and Services Tax (GST) has increasingly being talked about and debated over the last one week. Below, we try to break down and categorise the information flow into an easy-to-understand format.

 What just happened this week?

The Rajya Sabha just passed the constitutional amendment bill for the GST. This paves the way for eventually rolling out a GST. Under the Indian constitution, the centre does not have the right to tax goods beyond the point of manufacturing and states are not allowed to tax services. Yesterday’s bill is an amendment to the Indian constitution that confers the parliament and the state legislatures with the power to make laws pertaining to the GST. It gives them the power to subsume the number of taxes present today and guarantees compensation for revenue losses the states would incur for the first five years of implementing the GST.

 What is the GST?

The GST is a tax that attempts to simplify India’s complex indirect tax regime. It attempts to do this by subsuming the number of central and state taxes into a unified tax. In short, this is a single indirect tax that would help in unifying India into a single common market.

 What taxes will be subsumed?

The following taxes would be subsumed into their respective Central GST (CGST) and State GST (SGST). In addition, for inter-state transaction, the centre would collect Integrated GST (IGST), which would roughly equal the sum of CGST and SGST.

Centre level taxes to be subsumed:

 How will GST benefit specific sectors?


GST implementation would lead to three types of benefits flowing to the corporates.

  1. Shift from unorganized to organised market: In sectors where the unorganized market is higher, the organised players in those sectors will benefit post GST
  2. Efficient logistics planning: GST would lead to lower freight costs and optimal supply chain planning. This would benefit companies who have high freight costs. Organised logistics companies would stand to benefit
The following are sectors which would benefit from GST along the 3 points highlighted above

  1. Today many products attract higher tax if we aggregate the State VAT, Central Excise and CST. Further, there is a cascading effect of State VAT getting calculated including Excise duty. Tax credits cannot be utilised across various taxes so it adds up to higher tax incidence as well. For example CST and VAT credits cannot be fully set off against excise duty and vice versa, this leads to tax on tax. Cascading effect leads to 200-300bps of higher tax.

    Due to above factors, sectors like Auto see total tax incidence of 28-30%, this adds to cost of the supply chain. So a lower GST of ~18% would save cost; which if retained will add to margins or if passed down to consumers will lead to more incremental demand growth.

  2. There are many unorganised players that exist today due to tax arbitrage opportunities in various sectors. Due to this, the organised players become cost uncompetitive. Post GST due to availability of set off credit across the value chain, organised players will become competitive and can gain market share from unorganized players. Logistics, building materials, plastic products and consumer durables are some of the sectors where the unorganised players’ share is high due to tax evasion. GST would help the organised players to gain market share

    • Logistics companies – generally local truck companies are resorted to for avoidance of tax, but now due to tax credit availability, large companies would move to organised companies who offer better services or can simply outsource the entire activity to logistics companies

    • Building materials like tiles, pipes and plywood have 70% unorganised market due to tax evasion. Post GST due to level playing field, companies with strong brands will become highly competitive and can gain market share

    • Footwear (unorganized share is 55%), Batteries (40%) are other sectors who will benefit
    • Due to CST and higher VAT in some states, Corporates resort to un-economical logistics planning which increase the cost of delivery to customer. Post GST since there is a seamless set off of tax credit availability, corporates can simply focus on optimal logistics structure and cut the freight cost. Bulk commodity sectors like Cement, Steel would stand to benefit.

    • Also GST would push companies to outsource the logistics operation to third party companies who can bring in economies of scale through large warehouses and hub & spoke model to bring down overall logistics cost. So for companies it will be a cost saving and logistics companies would see shift of volumes from unorganised players to them.

     Timeline of events to watch out for

    Going ahead, the Lok Sabha has to pass these amendments, followed by a majority of the state assemblies. Post this, the GST council would be set up, which will then draft the GST bill. It is here that the rates would get solidified. The following would be a broad list of events that one would see, culminating in GST implementation by April 2017:

    • Getting the legal framework in place:

      • Passing of the constitutional amendment bill in the Lok Sabha
      • Ratification from 50% of the state assemblies
      • Presidential assent
      • Cabinet approval to form GST council
      • GST council’s recommendation of model GST laws
      • Cabinet approval for CGST and IGST laws by centre and SGST laws by states
      • Passage of the CGST and IGST laws by centre and SGST laws by states (mostly in the winter session)
      • GST rule notification

    • IT infrastructure for the GST
      • CBEC back-end systems by end-Nov. 2016
      • Back-end systems for 14 states by end-Nov. 2016
      • Back-end systems for CCA, banks, RBI, state accounting authorities by end-November 2016
      • The GST Network would provide front-end and back-end processes for 17 states by end-Dec. 2016.
      • Testing and integration for all stakeholders by Jan.-Mar. 2017

    • Officials (around 60,000) to be trained on the GST laws and the IT framework.

      For More Details Keep Visiting www.bimahelpline.com 

1 free credit report a year by CIBIL says RBI Governor

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CIBIL will soon be providing 1 free credit report a year to every person. This was said by RBI governor Raghuram rajan at a seminar on ‘Transforming Rural India through Financial Inclusion’.
This is great news for investors because right now one has to pay Rs 550 for getting a onetime credit score and report from CIBIL. While Rs 550 is not a very big amount for many people, for a majority it’s quite a good amount and most of the people are not in agreement to pay for a PDF report, as they think that it should be freely available.

How the FREE credit report will help investors?

A lot of investors have till date not checked their credit report and hence they are not aware of any issues which might be present in their report. Not everyone is ready to pay Rs 550 for their report and even that’s the reason why many people are not aware of their credit score.
With this free credit report, I think a lot of people will start looking at their report and start working on improving their score and take measures to remove the bad remarks from their report. Investors will also be able to find out if there are any fraud loans on their name taken by others if any.
Seems like RBI has really pushed on this matter of free credit report. The reason why I say this is because around a month back in June, 2016 , there news channels had reported that RBI has suggested CIBIL and other credit bureau to provide a one free report. You can check out this youtube video. 

What is Credit Report?

In case you are not aware, Credit report is a comprehensive report which is prepared by CIBIL or other credit bureau from the data they get from various banks and lending institutions. The report contains your credit history and all the details about our past loan payments (including credit card). Every lender uses this report to understand how trustworthy you are and if you should be given a loan or not.
In India apart from CIBIL, we have Experian and Equifax as other two credit bureau, but at this moment RBI governor has only announced that one will get a free report from CIBIL. He has not mentioned about the other two.
However, I think over time even they will start providing a free credit report to catch up with the rules.
What you think about this news? Do you think it’s fair for CIBIL to charge people for providing the credit report or it should always be FREE? 

National Pension System- A Govt of India Initiative

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National Pension System- A Govt of India Initiative
  • Additional Tax benefit of Rs 50000/- over and above 1.5 lacs u/s 80 C 
The Government of India (GOI) has rolled out the National Pension System (NPS) for all citizens of India from May 01, 2009.
National Pension System (NPS), regulated by Pension Fund Regulatory and Development Authority (PFRDA), is an important milestone in the development of a sustainable and efficient defined contribution pension system in India.
The NPS offers Two Approaches to invest in client's Account:
·         Active choice - Individual Funds {Equity (E), Corporate bonds (C) and Government Securities (G) Asset classes}
·         Auto choice - Life cycle Fund
There are 2 types of Accounts in NPS:
·         Tier-I pension account: You will contribute your savings for retirement into this non withdrawal account.
·         Tier-II savings account: This is an ad-on account, which is simply a voluntary savings facility.You are free to withdraw your savings from this account whenever you wish.
Tax Treatment
At present, the amount contributed is entitled for deduction fromgross total income up to Rs. 1.5 lac (along with other prescribed investments) as per section 80C and additional Rs.50000/- under section 80CCD (1B) (as per the provisions of the Income Tax Act, 1961 as amended from time to time).
At the time of Withdrawal:
On achieving 60years of age, client has an option to withdraw upto 60% of the corpus as lumpsum and invest remaining amount as annuity. Out of 60% withdrawable limit, 40% will be exempted from tax and balance 20% will be taxed as per prevailing income tax slab. The amount received as pension out of investment in annuity will be treated as income and will be taxed. Since employees would not be having other income (most of the cases), there will be hardly any tax or absolutely no tax on it, making NPS complete EEE.

Contribution To Tier I:
·         Minimum amount per contribution - Rs 500
·         Minimum contribution per year - Rs 6,000
·         Minimum number of contributions - One per year
Contribution To Tier II (Optional):
·         Minimum amount per contribution - Rs 250
·         Minimum contribution per year - Rs 2,000
·         Minimum number of contributions - One per year

NPS also allows client to choose from any one of the following entities to manage Pension Fund:
·         LIC Pension Fund Pvt. Ltd.
·         HDFC Pension Management Company Ltd.
·         ICICI Prudential Pension Funds Management Company Limited
·         Kotak Mahindra Pension Fund Limited
·         Reliance Capital Pension Fund Limited
·         SBI Pension Funds Private Limited
·         UTI Retirement Solutions Limited
Key Points to Remember:
1.     Subscriber must select the Fund Manager and Type of Account(Tier 1 or Tier I & II Both ) in the Application Form. In case of Tier I & II case, the subscriber has to inform the Amount to be allocated in respective Accounts.
2.     The investment allocation can be either chosen by client in the Active Choice or he/she can also select the Auto choice where the contribution will be invested in a set allocation based on the age band that client belong to. The equity allocation will continue to decrease with increase in age.
3.     In about 15 working days, client will receive Permanent Retirement Account Number (PRAN Card) in a welcome kit at his/her Address.
4.     Thereafter, regular contributions will be made through us. ECS option can also be availed by filling the ECS Form and submitting PAN CARD and Cancelled Cheque.
  1. Only multicity cheques / payable at par cheques are acceptable for contribution.
6.     At any point of time, the subscriber can switch contributions from one fund to the other or within the same fund, different allocations can be chosen. 
7.     Anybody in the age band of 18-60 years can open the NPS A/c. 


For any clarifications, you may contact Mr. Gaurav Kansal  at
kfs.del@gmail.com or  9313368533 .

Tax benefits of health insurance

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Premium paid towards health insurance for self, family and parents not only provides financial help in case of medical emergencies but also reduces tax liabilityHere's how.

Most financial planners suggest that the first step in any financial plan should be to ensure that one has adequate health insurance. One must get adequate health insurance cover for self and family even before starting to save for one's goals. What's more, the premium paid for health insurance also provides a tax benefit by reducing your taxable income and thereby your tax liability. Here are five crucial things to know about tax benefits of health insurance plans as per income tax laws for fiscal 2015-2016.

Parents: The premium paid towards health insurance policies for your parents qualifies for deduction under Section 80D of the Income Tax Act. The benefit is available to individuals on health insurance premium paid for self, spouse, children and also parents. Importantly, it does not matter whether the children or parents are dependent on you or not.

The quantum of tax benefit, however, depends on the age of the individual who is medically insured. On the premium paid for self, spouse, children and parents, the maximum deduction that can be availed is Rs 25,000 a year, provided the age of the individual is not above 60. If the premium paid by an individual is towards health policy for his or her parent who is a senior citizen of age 60 or more, the maximum is capped at Rs 30,000. A taxpayer may therefore maximise tax benefit under section 80D to a total of Rs 55,000 if his age is below 60 while parents age is above 60. For those tax payer individuals who are of age 60 or more and are also paying health insurance premium for their parents, the maximum tax benefit under section 80D would therefore be a total of Rs 60,000.

Life insurance companies riders: The Section 80D tax benefit is on the premium paid towards health policy and therefore does not restrict one to buy health plan only from health insurance companies. The premium paid towards critical illness or medical insurance riders in a life insurance policy also qualify for tax benefit under the same section. Further, premium on health insurance policies of life insurance companies is also eligible for the same tax advantage.

Health check-ups: Within the maximum limit of Rs 25,000 or Rs 30,000, the preventive health check-ups get a benefit of up to Rs 5,000. This means, if you pay premium of Rs 20,000 towards Mediclaim and undergo a health check-up costing Rs 5,000, the total of Rs 25,000 can be availed under section 80D. Most prominent hospitals offer preventive health check up packages. With lifestyle ailments on the rise, it's always better to keep an eye on one's health.

Tax benefit available on both types of health insurance: Both 'indemnity' and 'defined benefit' kinds of health insurance plans would qualify for tax benefit. Not just the indemnity plans such as individual health insurance plan popularly called Mediclaim and Family Floater plans but also defined benefit plans such as daily hospital cash plan and critical illness plan of any standalone health insurance company or a general insurance company would qualify for tax benefit.

Cash payment: One may pay premium in cash, however, in order to avail tax benefit, the income tax rules disallows tax benefit on premium paid in cash. One may however pay by Internet banking, cheque, draft or even by credit card to get tax advantage on premium. However, cash payment for preventive health check up is eligible for section 80D benefit.

Conclusion: It's often said that one should not invest merely for saving taxes. In case of health insurance, which anyhow is not an investment, premium paid not only buys you health cover but also aids in saving taxes. In view of the rising hospital costs, buying a health insurance certainly helps.
For More info call our most wanted Insurance Agent
Mr, Gaurav Kansal - 9313368533

Source: Economic Times


Why To Buy Medical Insurance Plans For Parents

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Good health is a blessing for each person. It is a tool that guides you towards a happy and healthy life. We all know that a healthy body nourishes a healthy mind and that helps you work better through the day. With a healthy body, you will be free to focus on different aspects of your life. We all know that in the old age, people are more prone to disease . It is thus essential to take extra care of the health in the old age and get quality treatment in time of need. But for many people getting quality treatment in older age is a tricky prospect due to lack of funds. As a responsible child, it is thus our duty to ensure our parents under an effective health plan to secure their health in old age that will take care of all health issues and help them lead a trouble free life.

Medical insurance plans for parents

Health insurance for parents or senior citizens is important, considering the rate at which health care expenses are rising. If we talk about an average percentage then the health care cost is rising by 15 percent every year. Moreover, it is found that almost 75 percent of Indians are paying these expenses from their own pockets.
With the help of medical insurance coverage for your parents, they will be able to get quality treatment in old age as well. So to provide complete support to your parents you must buy a health insurance plan for them. It will provide a stress-free post-retirement life to them.
There are several reasons to buy medical insurnce plans for parents. It can be growing health care cost, rising frequency of disease and much more. It is not like a health insurance plan will protect you from all diseases, but for sure it will help you in treating most of them. It will act like a savior in need.
If you or your family members face any health related issues, then a health insurance plan will provide a helping hand to deal with it. It will provide the required financial coverage to you that will remove the burden of heavy medical expenses. It will surely provide a great level of relief and allow you to take wise decision in all stages of life.

Why purchase health insurance for Parents?

The cost of health care is rising more than the normal inflation rate.
Your parents may own a limited income or unstable income during post-retirement life.
Your parents are financially dependent on you.
Old age is easily prone to accidents and diseases. They might need sudden financial assistance for quality treatment on time.
If you have dependent parents in your family who are above the age of 60 years, then you must buy medical insurance for parents instead of insuring them under floater plan. It will be best for you and will help you in saving more money.

Things You Must Check In Medical Insurance Plans For Parents:

Co-payment rules: Under this, the policyholder has to pay a particular percentage from the claim amount like 20 percent of the claim or more. It depends upon the insurers and plans.
Sub-limit: it is common for the insurers to fix sum limits for definite illnesses or treatments.
Pre-existing diseases: There are many insurers that do not provide coverage for pre –existing disease. You must check and compare them thoroughly to get the desired coverage on existing disease as well.
Waiting Period: The insured has to wait for a definite period of time before claiming any expenses. 
For More Info Feel Free to Contact our Most Wanted Insurance Advisor
Mr. Gaurav Kansal 9313368533

Travel Insurance

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Travel Insurance
The season of overseas travels has begun. The need to insure one and one’s family is of prime importance during these trips. Whether you travel for business or pleasure, international travel involves risk. Medical treatment abroad can be expensive & one never knows when one would require it. Having to spend for medical bills in foreign currency can be an expensive proposition. There are other difficult situations also, that one might face like loss of passport or baggage.
So, to sum up as why a person traveling overseas needs Travel Insurance:
·         To take care of expenditure in foreign lands currency which are way higher as compared to medical expenses in India
·         It ensures convenient and hassle free trip for the family
·         Help in sudden and unforeseen expenditure
·         Speedy guidance and referral in a foreign land and the time where proper guidance may mean life or death
Types of travel plans:
There are several types of travel plans along with various options for which we need to have a proper knowledge and pitch the best product to our clients. Below mentioned are few plans which can be offered -
Overseas Travel Insurance Plan - For a person who is traveling abroad
This travel insurance and trip insurance plan offers precise cover under all facets of a global travel plan. However, it is compulsory according to the rule books of most countries of the world.
Domestic Travel Insurance Plan - Person who is going for a vacation/business trip within India
This online insurance travel plan takes good care of all expenditures sustained during domestic trips within the country. This insurance policy covers all expenses incurred in consequence of loss of baggage, personal accidents, emergency hospitalization etc.
Student Travel Insurance Plan - Specially designed for student who are planning to go abroad for study (Primarily July - Aug)
This is an important plan precisely crafted keeping in mind the requirements of students traveling to a foreign country to pursue higher education. It is also obligatory to purchase one prior to taking admittance in a university abroad. It will support in case a crisis during the period of stay.
Single Trip Insurance Plan - People who are going for a small duration vacation
It is a brilliant plan that covers you for the travel period of any single holiday. It is widely available with insurance providers these days.

Multi Trip Insurance Plan - for people, who are often traveling, serves best to buy a Multi trip insurance for the whole year
This is a type of annual or once in a year plan that must be a part of trip plan for all frequent travelers.
WHAT DOES TRAVEL INSURANCE POLICY COVERS*?
1.Medical Expenses and Repatriation - covers hospitalization expenses for accident or illness, including medical evacuation wherever necessary.
2. Personal Accident - covers death and permanent disablement.
3. Loss of checked baggage - covers total and complete loss of baggage checked in by an international airline.
4. Delay of checked baggage - covers cost of emergency purchase of replacement items.
5. Loss of passport - covers reasonable and necessary expenses to obtain a duplicate passport or a valid travel document.
6. Personal liability - covers legal liability attaching in a private capacity during the course of overseas travel.
7. Cash Less Service - Direct settlement for in - hospital medical expenses abroad. (Subject to policy terms and conditions and sub limits)
8. Hospitalization Allowance - covers daily allowance maximum to a certain limit subject to plan opted for.
9. Emergency Cash Advance - This is an assistance service when the insured person requires emergency cash following incidents like theft/burglary of luggage/money or hold up. The service provider shall co-ordinate with the insured person’s relatives in India to provide emergency cash assistance to the insured person as per his requirement, up to limit specified in the policy schedule.
*The features and extent of cover varies from product to product

FOR MORE INFO FEEL FREE TO CALL US AT
 9313368533