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How well are you acquainted with current affairs? Have you been keeping a tab on what’s trending in finance? New laws, new schemes, new announcements on financial matters - let’s keep you abreast with what’s happening in the vast Indian field of finance. Read our latest articles and be enlighterdtfhyu;[prerwtuned.

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Recently, the Indian Government announced a rise or hike in fuel and <a href="https://www.mymoneykarma.com/gas/indane-gas-new-connection-Price.html" target="_blank">gas prices</a> across India. This has understandably upset people from all over the country. A hike on fuel price means that the price of essential commodities shall increase as well.

Now, you can’t bring down fuel prices, but you can control your own fuel spends, and thus bring down your own expenses. If you have a vehicle, you certainly want to know how you can slash down your own fuel costs. This is what we shall cover in this article.&nbsp;

India might be the world’s 4th biggest consumer of energy but has a low per capita energy consumption. Each year, more and more people are buying private vehicles, which leads to an overall hike in petrol and petroleum prices. Just in the year 2017-2018, there was a huge 5.31% hike in their prices. To meet increasing demand, the Indian government back then had to import more fuel than before. Did you know that 80% to 90% of the country’s income goes for the purchases of or meeting the bills of various petroleum products?

Now, all that was background information. What can you do to bring your own fuel costs down?

<h3 class="credit_i_h3">10 things you can start doing today to slash your fuel costs</h3>

<ol class="homeloan_Faqs_ul_1">
	<li>
	Shake up your driving habits: Perhaps you already know that when you drive smoothly and press on brakes gently, you lose less fuel. Likewise, you lose more fuel when you are in the habit of driving fast and slamming on brakes. Driving on wrong gears gives you this same problem.
	</li>
	<li>
	Service your car: A serviced car consumes less fuel. Generally, cars require servicing per 10000 to 15000 km once a year. Thus, if your car is well-maintained, you end up saving petrol! This even reduces your car’s getting wear and tear. 
	<img alt="If your vehicle is well-maintained, you can end up saving quite a bit on fuel." src="https://mmk-s3-cms.s3.us-west-2.amazonaws.com/1616130495143.jpeg" style="height:640px; width:960px" class="img-responsive credit_i_img">
	</li>
	<li>
	Change your filters: If you periodically change your vehicle’s filters, you can be rest assured that it shall be using precious fuel more carefully. Apart from changing these regularly, you should also change these if the car has been driven over a dusty or sandy area.
	</li>
	<li>
	Don’t give it too much load: The more load your car has to carry, the more it will be compensating with an increased fuel consumption. Thus, whenever you can, don’t let it carry too much weight.
	</li>
	<li>
	Check tire pressure frequently: Did you know that a fall of tire pressure, even by a small amount, can lead your vehicle to mess up its mileage. To save on fuel, you should ensure that its tires have adequate pressure.
	</li>
	<li>
	Don’t use the AC so often: Each time you turn on your car’s AC, you end up consuming more fuel. Of course, you may need your vehicle’s AC during summer and all that, but when you do not, do consider turning it off. It’ll save a lot of fuel.
	</li>
	<li>
	&nbsp;Stop when the red light tells you to: When you’re at a traffic signal red light, you’ll see many cars still running their engines while waiting for the green signal. Don’t be like them. They’ll consume more fuel, but not you. Just turn off your car at red lights.&nbsp;
	</li>
	<li>
	Use Google Maps more often: When you don’t know the route to your destination, you end up taking more detours and ‘shortcuts’. And as usual, you exhaust more fuel than necessary. So why not use Google Maps during the journeys? It’ll take you to your destination faster and save you fuel money!
	</li>
	<li>
	Don’t travel during rush hour: Let’s face it. If you dare to travel during your car, you will be caught in several travel jams. If you can, try to travel when the traffic is light.
	</li>
	<li>
	Get a <a href="https://www.mymoneykarma.com/credit-cards/index.html/save-money-fuel-credit-card.html" target="_blank">fuel Credit Card</a>: If your main goal is to save fuel, you should absolutely get one of these! These give you free fuel. It’s true. You can use its points for free fuel.
	</li>
</ol>

Hopefully, these tips shall help you save on fuel money for a long time to come!

&nbsp;

The fuel price may keep on rising, but there are still ways you can reduce spending on it. mymoneykarma guides you on how to reduce fuel expenditure.

10 Things You Can Start Doing Today to Slash Your Fuel Costs

The Budget 2021 did not make any changes to personal tax income tax rates. This is certainly a relief and benefit to high income earners and taxpayers, who were so far worried whether they will have to deal with even more cess and surcharges related to the Covid-19.&nbsp;

Interest of PF or Provident Fund has been so far thought to be a reliable and tax-free way of income for those who are salaried. From 1st April 2021, the exemption on Provident Fund interest on contributions of employees towards the PF shall be limited as far as the said contributions are noted to be more than Rs, 250000 in average in a year.

Last year’s budget already gave a cap on non-taxable PF contributions from employers till Rs. 7.5 lakhs, and even gave the provision that interest from such contributions if exceed that amount shall be taxable. The current proposal says that interest on contributions made by employees beyond the annual average of Rs. 2.5 lakhs shall be taxable too. Thus, employees shall have to pay attention to the tax implications of PF contributions.

<img alt="Employees will now have to pay attention to the tax implications of PF contributions." src="https://mmk-s3-cms.s3.us-west-2.amazonaws.com/1616130129250.jpeg" style="height:640px; width:960px" class="img-responsive credit_i_img">

Another area in which taxation implications can come up is when investments to ULIPs, or Unit Linked Insurance Policies. Right now, there is an exemption for amounts received from a life insurance policy as long as the annual premium is not more than 10% of the actual sum assured.

However, one won’t get this exemption for ULIPs issued on or later than 1st February, 2021 if the average premium amount for any year is more than Rs. 2,50,000. In these cases, the ULIPs shall be seen or treated on par of equity funds, which means their maturity proceeds shall be taxable.

However, taxpayers shall be relieved to know that there are benefits when buying a residential property in those cases in which the agreement value depends on stamp duty value. To boost demand for properties, the safe harbor threshold is now 20% from the previous 10%.

Thus, if you buy a residential property, you will not have to worry about tax as long as the stamp duty value is not more than 120% of the value of agreement.&nbsp;

One should remember that:

<ol class="homeloan_Faqs_ul_1">
	<li>
	The agreement should not be more than Rs. 2 crores
	</li>
	<li>
	The transfer takes place between 12th November 2020 and 30th June 2021
	</li>
	<li>
	This transfer is from the first allotment of the residential property
	</li>
</ol>

&nbsp;

What effect does the Union Budget have on high-income individuals? Will it benefit them or be detrimental? Answers offered at mymoneykarma.

Effect of Union Budget 2021 on High-Income Individuals

The common conception is that the Budget 2021-2022 did little to change the income tax regulations. This conception, however, is wrong, although the same people can be forgiven since truly the changes in income tax have been less than the previous years. The changes forwarded in this year’s budget include higher tax deduction at source, unit-linked insurance policies, exemption of dividend payment to REITs and InvITs and pre-filled ITRs, amongst others.

In this article, we shall go through these changes.&nbsp;

<ol class="homeloan_Faqs_ul_1">
	<li>
	Income tax filing for senior citizens, that is those above 75 years of age, is no longer a requirement. The Finance Minister said that people above 75 year of age whose source of income is only interest and pension are from now onwards exempted from filing their ITR, or income tax returns. They still have to pay their tax though, but there is no longer the need to file ITR. Note that this shall be the case only if the interest earned is from the same bank where one has pension deposited.
	</li>
	<li>
	Some banks shall be notified by the central government in regards to senior citizen account holders being eligible for the above exemption. Such holders shall have to give a declaration to the concerned bank. The banks shall then compute income of senior citizens after taking into account deductions allowable under Chapter VI-A as well as allowable rebates under 87A.&nbsp;
	</li>
	<li>
	ITR Forms shall from now on have pre-filled information of interest, dividend and capital gains so that individual taxpayers have more ease. Details of capital gains shall be given, such as dividend income, listed securities, post office, and interest from banks, and etc. Also included shall be tax payments, salary income, TDS and others.&nbsp;
	</li>
	<li>
	Interest of employees’ share of EPF contribution on or later than 1st April 2021 shall be taxable, but only if it is more than Rs. 2.5 lakhs in a year. This shall result in more liability, even more so for High Net Worth Individuals who make higher contributions and don’t favor voluntary provident fund contributions. Apart from this, tax on employer’s aggregate contributions of more than Rs. 7.5 lakhs to NPS, EPF and superannuation fund and interest can make EPF less attractive. 
	<img alt="The government has done away with dividend distribution tax to make investment more attractive." src="https://mmk-s3-cms.s3.amazonaws.com/1616130014851.jpeg" style="height:640px; width:960px" class="img-responsive credit_i_img">
	</li>
	<li>
	The government has taken the decision to make dividend payments to REITs or Real Estate Investment Trusts as well as to infrastructure funds, exempt from TDS. Advance Tax liability for dividend income shall take place only after the payment or declaration of dividend since this amount cannot be estimated accurately for the payment of advance tax. The government has done away with dividend distribution tax to make investment more attractive.&nbsp;
	</li>
	<li>
	There shall be higher TDS for those who don’t file their income tax returns. There will be a new section named 206AB in the IT act. This section shall provide a higher TDS rate for ITR non-filers.&nbsp;
	</li>
	<li>
	&nbsp;ULIPS or Unit Linked Insurance Plans are now bought under the tax bracket. Right now, if one redeeming of a ULIP is tax exempted as long as the policy’s total premium payable is not more than 10%. Under the new proposal, redemption of ULIPs issued on or later than 1st February 2021 when premium payable is more than Rs. 25 lakh shall now be subjected to Capital Gains Tax, which shall be on par as equity-oriented mutual funds.
	</li>
	<li>
	There is a change regarding the LTC scheme notified. Employees shall continue to get exemptions for Leave Travel Concessions of 1/3rd of the concerned expenses or Rs. 36000, whichever is less for the period of 2018-2021. This shall be only if the expense of the purchase of goods or services which are liable to GST at the rate of 12% or more, as long as the payment is made by non-cash means, and is incurred between 12th October 2020 and 31st March, 2021. This amendment is just for the financial year of 2020-2021.
	</li>
	<li>
	The government has increased tax holidays on affordable housing. This change has extended the additional deduction of tax of Rs. 1.5 lakh on interest paid on a housing loan for buying of affordable homes by one additional year.&nbsp;
	</li>
	<li>
	Lastly, the government has reduced the time limit for filing of delayed ITR. The final date of filing a revised ITR or a late ITR voluntarily shall now be 31st December 2022.&nbsp;
	</li>
</ol>

&nbsp;

The Union Budget did not bring about much changes to the existing tax regime, but some changes were made nonetheless. What are these changes? Find out at mymoneykarma.

Income Tax Changes - Income Tax Changes in Budget 2021

Last Saturday, on 2 May 2020, RBI Governor, Sakhti kanta Das had a meeting with the heads of various banks. Together they reviewed the current economic situation and the implementation of various measures that are being announced to reduce the financial stress on the Indian economy.

The meeting took place in two separate sessions. At the meeting there were managing directors and CEOs of the biggest banks of the country, both public and private.&nbsp;

One of the biggest points discussed was the current economic state and the financial sector’s stability.

Topics discussed also include credit flows to the various industry sectors, such as liquidity to NBFCs, housing finance companies, microfinance institutions, mutual funds etc, and credit flows after the pandemic. After the pandemic, special focus will be on credit flows to MSMEs, and providing them with working capital.

Items reviews included the implementation of the moratorium and the repayment of loan installments, as announced by the RBI earlier.

It needs to be said there here that earlier this week the Supreme Court of India directed the Reserve Bank to ensure the implementation of the moratorium facility by banks around the country. This is to ensure that all borrowers are being benefited by the facility.

It was discussed that it is essential to monitor the overseas branches of banks around the world.

Several steps were announced by the RBI to diminish the pressure faced by lenders, borrows and others. The RBI promises to take even more initiatives as required in the future to decrease the economic pressure on the economy and on the people in general. It understands that the greatest pressure is on the consumers and the common man.

The RBI has already taken several steps to ensure this.

<ol class="homeloan_Faqs_ul_1">
	<li>
	It has introduced a sum total of funds worth 3.2% of the GDP into the economy since February to meet the liquidity problem, ever since February 2020.
	</li>
	<li>
	&nbsp;The central bank encouraged banks to continue lending by cutting the key policy rate by 75 basis points till it reached an 11-year low of 4.4%. Additionally, the reverse repurchase rate was slashed as well, which is a tool used for controlling the money supply. It was slashed to 3.75% and is done to encourage banks to use the surplus funds for lending.
	</li>
	<li>
	The reverse repo rate was slashed to discourage banks from hoarding cash with the RBI itself and to use them for lending instead.
	</li>
</ol>

That the Indian economy seems to be headed for a quarterly contraction, which is rare, during the April-June period due to the halt of many economic activities, was discussed as well.

Earlier, the government of India provided a total of Rs. 1.7 lakh crore package of free cash doles and foodgrains for the poor, who are most at risk during this time.

The RBI Governor convened a meeting with heads of top banks to discuss credit flow after the lockdown has been lifted. Find out details at mymoneykarma.

Credit Flow And Moratorium | RBI Discusses With Banks Post-Lockdown 

Gold price is rising right now, and investors are looking to use this opportunity to invest in gold. And right now, with the government’s Sovereign Gold Bond Schemes, investing in this widely-loved yellow metal is easier and more convenient.

Right now, the Sovereign Gold Bond Scheme of 2020-2021 is open for investor subscription.&nbsp;Subscription for Sovereign Gold Bonds 2020-21 was opened from March 1, and will close on March 5. The Bonds are denominated in gram(s) of gold with 1 gram as the basic unit. Issue price for the bonds has been fixed at ₹4,662/gram.

The RBI has announced a discount of ₹50/gram for those applying online and making payment through digital mode - hence pricing it for them at ₹4,612/gram.

The RBI has placed the price of SGB at a rate that varies from tranche to tranche.&nbsp;On its part, the government generally gives a discount&nbsp;for those investors who are applying online. You need to pay digitally against this particular publication. When investing in SGBs through banks, you can make investments through their respective netbanking and mobile banking facilities.

Here are a few things which you need to know before investing in Sovereign Gold Bonds:

<ol class="homeloan_Faqs_ul_1">
	<li>
	It is mandatory to provide your PAN number, as per RBI guidelines
	</li>
	<li>
	You have to invest in a minimum of 1 gram gold, while the maximum limit is 4 kg for individuals. For trusts and similar bodies, the upper limit is 20kgs of gold during each fiscal year. The annual ceiling is inclusive of bonds subscribed under various tranches during the initial Government Issue as well as those bought from the Secondary Market.
	</li>
	<li>
	The total tenor of the SGB shall be 8 years. There is an exit option from between 5th and 6th of the 7th year. However, it should be remembered that bonds shall be ready for stock exchanges within 2 weeks of RBI’s issuance date.
	</li>
	<li>
	In case of joint holders, the limit of investment shall be 4 kg of gold, and this shall be applicable to the first applicant only.
	</li>
	<li>
	Before a new issue, RBI will say what the issue price of the bond is. This shall be decided on the basis of the average closing price of gold of 999 purity as published by the RBI for the last three days of the week before the subscription period.
	</li>
	<li>
	These gold bonds shall be issued as Government of India stocks. All investors shall get a holding Certificate. These bonds can be converted into their Demat form.
	</li>
	<li>
	Most banks like ICICI and SBI will accept subscriptions. Investors shall get compensation in the form of a fixed 2.5% per year, payable twice a year on the nominal value.
	</li>
	<li>
	Gold bonds can be used as loan collaterals. The loan to value ratio shall be set on par to the ordinary gold loan as mandated by the RBI.
	</li>
	<li>
	On redemption of the Sovereign Gold Bonds, the capital gains tax for individuals is exempted. Indexation benefits shall be given in case of long-term capital gains by an individual on bonds transfer.
	</li>
</ol>

You can find out more in detail at the <a href="https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=50488" target="_blank">RBI Press Release</a>.

Sovereign Gold bonds are a great investment option. But there are still things you need to know before investing in them. mymoneykarma brings you the details.

Sovereign Gold Bonds (SGB) | Things To Know Before Investing

You are excited to start your own business, and you have a revolutionary idea that could change the world. You have done thorough research on the concept, and it's all set to be implemented except for a single problem - you don't know where to get business funding for your startup. The painstaking yet exciting journey from the inception of the idea to building a revenue-generating business needs a fuel named 'capital.' Startup funding is a significant hiccup faced by many young entrepreneurs in the country, and most business ideas fizzle out owing to a lack of funds.

There are many funding options in India to finance your startup. mymoneykarma brings you eight ways to fund your new business. You can go through them and adopt one that would suit your business the best.&nbsp;

<h3 class="credit_i_h3">Bootstrap Your Business</h3>

Bootstrapping or self-funding is an age-old practice of getting your business started. Often, first-time entrepreneurs face difficulties in getting investors on-board as no one wants to take risks with first-timers. If you are a new entrepreneur, bootstrapping might be an excellent option to get your business started. There are fewer formalities involved, and you are much more invested in your startup. You should note that you can bootstrap your business only if the capital requirement is less at the beginning.

<h3 class="credit_i_h3">Choose Crowdfunding</h3>

Crowdfunding is another way of funding a startup that is gaining traction these days. It gathers contributions from the common public on open platforms. An entrepreneur has to put up a detailed description of his business on a crowdfunding platform and mention the goals of the startup and plans for making a profit, along with the funding amount required and reasons behind the requirement. With this approach, people can contribute money toward helping a business that they believe in. Crowdfunding can also generate interest in the venture, and hence it helps in marketing the product alongside financing. Remember that crowdfunding is a competitive place to earn funding. Therefore, if your business proposal is not rock solid, you may not find crowdfunding to work for you in the end.

<h3 class="credit_i_h3">Get Angel Investors For Your Startup</h3>

Angel investors are individuals or organizations with surplus cash and are keen to invest in promising startups. They often work in groups or networks so that they can collectively screen the proposals before investing. Apart from capital, they can also offer you mentoring or advice . Some of the most famous angel investors are Alibaba and Google. Angel investors invest in your company in exchange for equity. Indian Angel Network, Mumbai Angels, and Hyderabad Angels are a few of the famous angel investment groups in India that are known to fund many Indian startups.

<h3 class="credit_i_h3">Venture Capital For Your Business</h3>

Venture capitals are professionally managed funds invested in startups that are deemed to have tremendous potential. Venture capitalists (VCs) invest in your startup against equity and exit when there is an IPO or an acquisition. VCs provide expertise and mentorship apart from evaluating your business from a sustainability and feasibility point of view. A venture capital investment is appropriate for bigger startups that are beyond the startup phase and are already generating revenue. However, VCs are known to be impatient to recover their investment within a three-five year time period. If you have a product that can take longer to get going in the market, then it may be difficult for you to convince a venture-capital investor to fund your startup.

<h3 class="credit_i_h3">Get Your Funding From Business Incubators &amp; Accelerators</h3>

You can also consider incubator and accelerator programs as your funding options. Incubators help provide initial assistance in the form of office space, financial backup, and mentorship programs. Accelerators offer similar support to more prominent startups to help them start revenue generation.

These programs typically run for 4-8 months and require commitment from you as a business owner. You will be able to connect with investors, mentors, and other fellow startups using such platforms.

<h3 class="credit_i_h3">Raise Funds By Winning Contests</h3>

You can participate in several contests organized by several industrial organizations to promote new entrepreneurial talent. In such contests, you either have to build a product idea or prepare a business plan. These competitions can get you media coverage and marketing exposure. Some of the popular contests in India are NASSCOM 10000 startups, Microsoft BizSpark, Conquest, Next BIG Idea Contest, and LetsIgnite.

<h3 class="credit_i_h3">Raise Money Through Bank Loans</h3>

Almost every bank in India offers finance for your startup through various programs. Leading Indian banks such as Bank Of Baroda, HDFC, ICICI, and Axis bank offer different options of collateral-free business loans. Moreover, personal loans can also aid you in setting up your business. You&nbsp; can bank upon the financial expertise of mymoneykarma, where we not only take care of your loan application and disbursal but also guarantee affordable interest rates.

<h3 class="credit_i_h3">Opt For Govt Programs that Offer Startup Capital</h3>

You can also opt to register as a startup in the various schemes started by the Government of India. The Indian government had launched Rs 10,000 crores worth of Startup Fund in the Union Budget of 2014-15 to improve the startup ecosystem in India. To boost innovative products and companies, the government has launched the 'Bank Of Ideas and Innovations' program. Also, different states have come up with various programs, such as the Kerala State Self Entrepreneur Development Mission (KSSEDM), Maharashtra Centre for Entrepreneurship Development, and Rajasthan Startup Fest, to encourage innovative startups. If you meet the eligibility criteria, government grants could be one of the best funding options for your startup. You need to be aware of the various government initiatives to utilise them prudently.

<h2 class="credit_i_h2">To Sum Up</h2>

If you want your startup to grow fast, you probably need external sources of capital. If you bootstrap your enterprise but end up remaining without external funding for too long, your finances may fizzle out before your product or service takes off. While the plethora of funding options available may make it easier than ever for you to get started, it's also essential to invest in good accounting software and keep your finances in order.

Startup funding in India requires a lot of capital, which is difficult to arrange and procure during the initial stages. mymoneykarma tells you all that you need to know.

Startup Funding India - Crowdfunding For Startups In India

ICICI Bank is a prominent private sector bank in India by consolidated assets. In 2017, the bank had announced a new home loan scheme, which provides borrowers with the benefit of 1% cashback on every EMI paid during the entire loan period. It is a unique offering in the finance industry by ICICI Bank and can be availed for the <a href="https://www.mymoneykarma.com/home-loan.html" target="_blank">home loans</a> with a minimum tenure of 15 years.

<h2 class="credit_i_h2">What is ICICI Cashback Scheme?</h2>

The new home loan scheme enables borrowers to choose their preferred mode for cashback, unlike <a href="https://www.mymoneykarma.com/credit-cards/index.html/top-cash-back-credit-cards.html" target="_blank">cashback credit cards</a>. Either the borrowers can utilize the cashback to prepay the loan by getting a reduction in the principal outstanding of the entire <a href="https://www.mymoneykarma.com/icici-bank/home-loan.html" target="_blank">ICICI home loan</a>, or they can receive the credit in their ICICI Bank account.

Both the Indian residents and the NRI borrowers are eligible to apply for the cash back option in a home loan. This scheme is applicable only to the customers who are making the loan repayment through ICICI Bank accounts.

<h3 class="credit_i_h3">Highlights of 1% Cashback Scheme</h3>

<ol class="homeloan_Faqs_ul_1">
	<li>
	It provides the customers with a benefit of 1% cashback on every EMI.
	</li>
	<li>
	It is available for new home loans to resident and NRI customers.
	</li>
	<li>
	The cashback benefit starts from the first Home Loan EMI. However, the first the cashback amount is credited upon the completion of 3 years loan period. After that, the cashback amount is credited subsequently every 12 months until the maturity of the loan period. The cashback offer is available for all the <a href="https://www.mymoneykarma.com/loans/secured-and-unsecured-loans.html" target="_blank">mortgage loans</a>.
	</li>
	<li>
	For NRI customers, the cashback amount can be adjusted as a pre-payment into their loan account only. In this case, the cashback amount cannot be credited in the bank account.
	</li>
	<li>
	It can be availed for completed as well as under construction properties.
	</li>
	<li>
	This scheme is applicable to a minimum loan tenure of 15 years and can be extended to 30 years.
	</li>
</ol>

<img alt="ICICI Bank New Home Loan Cashback Scheme of one percentage" src="../../images/new/personal-finance/icici-bank-new-home-loan-cashback-scheme.png" class="img-responsive credit_i_img"> 
The critical aspects of the new home loan scheme are:

<ol class="homeloan_Faqs_ul_1">
	<li>Loan Amount: It can be any amount as per the standard home loan offering of ICICI Bank.</li>
	<li>Eligibility: Both resident and NRI customers are eligible to apply for this scheme.</li>
</ol>

<h3 class="credit_i_h3">Overview of ICICI Bank &amp; Services</h3>

ICICI Bank offers services to its large customer base with a multi-channel delivery network across 4852 branches, 13780 ATMs, phone banking, internet banking, and the country's first digital bank on mobile called

'PocketsbyICICIBank'. ICICI Bank has the most significant mortgage portfolio. Last year, it had disbursed mortgage loans of over Rs 1 trillion, becoming the first among private sector banks in India to achieve such a milestone. It also introduced few digital initiatives to make the home loan process convenient while delivering the solutions at a faster pace.

Their services comprise home loans on Tab banking, Express Home Loans offering <a href="https://www.mymoneykarma.com/credit-score/home-loan-credit-score.html?utmsrc=homeloan_enquiry" target="_blank">fully online home loan approval</a> in 8 working hours, and subsequent disbursements for under-construction projects through the mobile app.

<h3 class="credit_i_h3">Balance Transfer</h3>

The balance transfer/ <a href="https://www.mymoneykarma.com/credit-scores/index.html/how-refinancing-affect-credit-score.html" target="_blank">refinancing&nbsp;facility</a> is available for mortgage products, such as loans against property, lease-rental discounting, and top-ups on current mortgage loans. However, the customers who have an existing housing loan from other banks or NBFCs can go for a balance transfer facility to transfer from a high-interest loan account to a lower one.

The rate of interest for the balance transfer facility is less, and along with that, the new 1% cashback scheme reduces the loan burden to an extent. So, taking this step can be a boon for the customers.

<h2 class="credit_i_h2">Conclusion</h2>

With the growing fierce competition among the lending institutions and the digitalization in the loan process, many banks are coming up with various profitable schemes to assist customers in <a href="https://www.mymoneykarma.com/buying-a-home/index.html/arrange-down-payment-for-buying-new-home.html" target="_blank">buying their dream home</a>.

mymoneykarma offers great <a href="https://www.mymoneykarma.com/credit-score/home-loan-credit-score.html?utmsrc=homeloan_enquiry" target="_blank">home loan offers</a> as well. there are several benefits to applying for a loan throuh us. Apart from the fact that interest rates are the lowest, the application is smooth and seamless.

Due to such convenient schemes, in today's world, one can easily think of owning a home <a href="https://www.mymoneykarma.com/buying-a-home/index.html/getting-mortgage-in-20s.html" target="_blank">even at a young age</a>.

&nbsp;

Do you know what is ICICI Bank New Home Loan Scheme? If not, here are the experts from mymoneykarma to guide you. Click on the link to know more.

ICICI Bank New Home Loan Cashback Scheme

In March 2020, WHO declared a state of emergency worldwide due to the Coronavirus Pandemic. This is clearly something the world had never seen, and thus was not ready for it.

Worldwide, the number of confirmed cases has crossed 8 lakh while the number of deaths has crossed 40000. In such an alarming situation, governments around the world including India have taken steps to slow and stop the spread of the virus. In India, the state governments have been instructed to do likewise.

One of the steps the government has asked people to take is to avoid public gatherings, and to work from home. Some companies were forced to shut down and allow ‘work from home’ because some of their employees were found Positive with the virus. Other companies followed suit, clambering to take new measures in this emergency situation. Right now, most jobs apart from the absolutely necessary ones are to be done from home.

All of this is certainly alarming. One of the fears that people are having now is about their state of finances. What if their salaries get halved? What if there are no incentives, bonuses or even yearly increments? What if the company shuts down?

<h2 class="credit_i_h2">Worried about your finances during Covid-19 lockdown? Here are 5 things to help!</h2>

To ease your fears, mymoneykarma brings to you some personal finance tips to aid you in these uncertain times.

<ol class="homeloan_Faqs_ul_1">
	<li>
	Get an insurance cover: The government is doing its best to provide healthcare to affected patients. While the number of affected cases may now seem like small, no one can say what the future will bring. It may happen there won’t be enough medical facilities for the rising tide of patients. To prepare for such a time, it is more prudent to take an insurance cover. This shall ensure your hospitalization at medical facilities that are otherwise very expensive. In such cases, there is no need to worry about funds. 
	<img alt="health insurance : Emergency Health Care Services" src="https://mmk-s3-cms.s3.amazonaws.com/1587983957695.jpeg" style="height:640px; width:960px" class="img-responsive credit_i_img">
	</li>
	<li>
	Get a high data limit broadband or internet package: Most people are working from home. Are you? Well, if you are, you may want to consider having this. It ensures that your work is seamless without any data breaks. This can be spent not just on work, but also for family entertainment.
	</li>
	<li>
	Do online transactions: Going outside is strictly prohibited, unless it is absolutely necessary. As such, there is very less need to do hand-to-hand transactions. Perhaps you are already making transactions online. If not, consider that when you need to buy something. Stay safe, and buy from home.
	</li>
	<li>
	Subscribe to study and entertainment packages: Nowadays, there are many of these like Amazon Prime, Hotstar, Netflix and more. Education channels include Udemy, Khan Academy, and more. This quarantine can be a great way to level up your skills.
	</li>
	<li>
	Buy health items: One more thing to do is to stock up on health items including sanitizer, masks, handwash, and others. This shall keep your immunity strong and help to keep the virus away. Besides that, have home-cooked food. Have plenty of green vegetables, dairy products and other nutritious items.
	</li>
</ol>

&nbsp;We hope that these tips shall help you during these tough times.

Personal Finances, During covid19 especially, have to be protected at all costs. Let mymoneykarma help you navigate the financial roads during the Covid crisis.

Covid 19 : How to Protect Your Personal Finances

Desperate times call for desperate measures. The coronavirus or Covid-19, a pandemic that broke out in China, has now spread out to almost all countries of the world. India is afflicted with this as well.

<h2 class="credit_i_h2">The Great EMI Relief</h2>

Thankfully , a&nbsp;moratorium of three months of EMIs on all outstanding loans has been announced.

<img alt="Governor of the Reserve Bank of India, Mr. Shaktikanta Das" src="https://mmk-s3-cms.s3.amazonaws.com/1585314434250.jpeg" style="height:375px; width:667px" class="img-responsive credit_i_img">

The statement says: "All commercial, regional, rural, NBFCs and small finance banks are being permitted to allow a 3-month moratorium on payment of instalments in respect of all term loan EMIs outstanding on March 31."

<img alt="RBI 3 months moratorium on EMIs" src="https://mmk-s3-cms.s3.amazonaws.com/1587983413634.jpeg" style="height:640px; width:960px" class="img-responsive credit_i_img">

For the next three months, no EMI will be deducted from the account of anyone who has a loan outstanding. And all this without any hit on credit score. EMIs will resume after the moratorium period gets over.

This is going to be a huge relief for all EMI payers, especially for those — such as the self-employed — whose income had become uncertain in the wake of the lockdown.

The 3-month moratorium will apply to corporate loans, <a href="https://www.mymoneykarma.com/home-loan.html" target="_blank">home loans</a>, and <a href="https://www.mymoneykarma.com/personal-finance/i/how-to-pay-off-your-car-loan-faster.html" target="_blank">car loans</a>. <a href="https://www.mymoneykarma.com/credit-score/personal-loan-credit-score.html?utmsrc=personalloan_enquiry" target="_blank">Personal loans</a> will also qualify for this.

However, even the moratorium period offered by RBI has come under question as of late. Moody's opines that the loan moratorium could cause a greater build-up of credit loss for banks. India and China have both extended such measures to deal with the liquidity crunch amid the COVID-19 crisis. Although this can provide temporary relief to borrowers, it will constrain banks from taking proactive recovery actions and could lead to an even greater build-up of credit loss once the moratoriums are lifted, reports Moody's.

Moody's, in a report on the Asia-Pacific region on Tuesday, said that while policy stimulus will shore up credit quality for larger companies in sectors including airline and oil and gas, Asia's banking sector profitability would decline from falling asset quality and lower net interest margins.

&nbsp;

3 Months Moratorium - RBI has decided to waive off EMIs for all loans for 3 months, in the wake of covid19. Find out more at mymoneykarma. 

RBI 's 3 Month Moratorium

Last week I overheard a couple of teenagers at the mall...

Boy 1: "Hey, you owe me 2000 bucks."

Boy 2: "Oh no! I don't have cash..."

Boy 3: "Chill, man. Use WhatsApp payment to send the money to him, and you're sorted."

<a href="https://www.mymoneykarma.com/lets-whatsapp.html" target="_blank">WhatsApp </a>is at everyone's fingertips - literally as well as figuratively! WhatsApp not only keeps our fingertips busy in texting all day but has also brought the entire world at our fingertips. Whether it's instant messaging or free calls or sharing photos or even peer to peer money transfers - WhatsApp lets us do all of these and more.

It has crept into the lives of people across all age groups and has become an indispensable part of our lives. WhatsApp Payment is the latest addition to the treasure trove of WhatsApp features that lets users transfer funds through the app. This new digital payment feature is sure to become a huge success, especially among <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/millennial-spending.html" target="_blank">millennials who spend often</a>.

<img alt="WhatsApp Payment - a Simple Way to Send and Receive Money" src="../../images/new/personal-finance/whatsapp-payment-a-simple-way-to-send-and-receive-money.jpg" class="img-responsive credit_i_img">

<h3 class="credit_i_h3">WhatsApp - A Brief History</h3>

It's a texting app with a plethora of exciting features. This wonder app was developed in 2009 by two former Yahoo! executives called Jan Koum and Brian Acton. It was launched as an ad-free mobile app that allowed users to send unlimited messages to their contacts. A decade ago, when WhatsApp was launched, it served as a mind-boggling alternative to the traditional text-messaging platform.

WhatsApp has over a billion active users with nearly 55 billion messages being exchanged daily! No wonder Facebook shelled out a whopping $19 Billion to acquire WhatsApp in 2014. The customer pool of WhatsApp is expanding with each passing day.

<h2 class="credit_i_h2">What's WhatsApp Payment?</h2>

At the beginning of 2018, WhatsApp rolled out a jackpot feature for its Indian users: WhatsApp Payment. This feature allowed Indian users to transfer money directly from their bank accounts to another bank account without the need to use any bank account number or other account-related information. It's a quick and swift way of peer to peer money transfer directly between bank accounts, without having to store the balance in a wallet. This can be especially helphul if you have <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/opening-multiple-bank-accounts.html" target="_blank">multiple bank acounts</a>.

A couple of clicks while chatting on WhatsApp is all you need to transfer funds nowadays. WhatsApp created history by initiating this feature as it is the first messaging app to come up with a fund transferring option. WhatsApp Payment has enhanced the convenience of their users to baffling heights!

<h3 class="credit_i_h3">How Does WhatsApp Payments Work?</h3>

WhatsApp uses the BHIM UPI platform to enable fund transfers. <a href="https://www.mymoneykarma.com/unified-payment-interface.html" target="_blank">UPI</a> or Unified Payments Interface was launched by the Government of India in 2016, with an aim towards digitally empowering the Indian society. It is a digital platform that allows a user to conduct instant financial transactions between accounts of participating banks under a single roof.

All UPI-based instant digital payments applications enable money transfers using just a mobile number and a UPI PIN. WhatsApp retrieves the account information linked with a particular mobile number in a masked manner. It doesn't have access to the details of the bank account.

The transaction happens entirely over secure banking networks authorized by the RBI, and WhatsApp can neither store the information nor use it for any other purpose. Moreover, using the UPI PIN to authenticate the transaction guarantees an additional layer of security.

<h3 class="credit_i_h3">Activating WhatsApp Payment</h3>

Before you start using this really convenient feature, you need to first register for it. It's very simple.

<ul class="banklogin_ul">
	<li>
	Tap on the icon with three vertical dots present at the top-right part of your WhatsApp screen.
	</li>
	<li>
	Go to 'Settings' and select the 'Payments' option to add your bank account.
	</li>
	<li>
	Remember that the same number that you use for WhatsApp mobile application should be registered with the particular bank account for this to work.
	</li>
	<li>
	A list of participating banks will be displayed as you select "Add New Account."
	</li>
	<li>
	Choose your bank and wait for the app to retrieve your bank accounts linked to your phone number.
	</li>
	<li>
	If you already have an existing UPI ID linked to the phone number, you just need to select the bank account that you want to link.
	</li>
	<li>
	In case you are a new UPI user, you need to register first by verifying the bank account using the debit card number and ATM PIN. An OTP will be sent to your registered phone number. Enter the OTP and then set up a UPI PIN to be used each time you transact.
	</li>
	<li>
	You will be notified once the registration is completed.
	</li>
</ul>

Well, once your registration is successful, now you can proceed to send or receive funds through WhatsApp. You can register multiple bank accounts by following the same process.

<h3 class="credit_i_h3">Using WhatsApp Payments</h3>

Once you have registered for WhatsApp Payment, you can use this amazing feature to send and receive money with a few simple taps and clicks. Let's guide you through the process.

<ul class="banklogin_ul">
	<li>
	Open the chat window of the person whom you wish to send money to.
	</li>
	<li>
	Click on the attachment option and select "Payments."
	</li>
	<li>
	If the receiver has already registered for WhatsApp payments, then you can directly enter the amount.
	</li>
	<li>
	Select the account from where the money is to be debited and click on "Send."
	</li>
	<li>
	You will be asked to authenticate the transaction by entering your BHIM UPI PIN.
	</li>
</ul>

In case the receiver hasn't registered for WhatsApp payments yet, you can follow this procedure:

<ul class="banklogin_ul">
	<li>
	Tap on the icon with three vertical dots present at the top-right part of your WhatsApp screen.
	</li>
	<li>
	Go to settings and select the 'Payments' option.
	</li>
	<li>
	Tap on "New Payment."
	</li>
	<li>
	You can manually enter the receiver's UPI ID and proceed with the payment process as mentioned above.
	</li>
	<li>
	Alternatively, you can also scan the QR code on the receiver's phone if he/she is nearby and proceed with the payment process as mentioned above.
	</li>
</ul>

<h2 class="credit_i_h2">To Sum Up</h2>

WhatsApp's one-of-a-kind payment feature is sure to give a gigantic boost to the digital payment scenario in India. WhatsApp has an extensive user base in India, with over 200 million users actively using the app. These users are not only familiar with the WhatsApp platform but they also trust it. As the Indian Government is striving towards digitizing India's money market, WhatsApp Payment can be the perfect aid to realize this mission.

Although there are several UPI-enabled digital payment platforms available, most of those require the users to learn the nitty-gritty of using a new software platform. WhatsApp, on the other hand, is a familiar and trusted platform offering a new feature that most users would be willing to explore.

Moreover, the convenience of making financial transactions alongside texting, and the ease of access that accompanies it, is sure to make WhatsApp payments all the more appealing to the Indian crowd. Make sure you use an <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/benefits-of-money-manager-app.html" target="_blank">expense manager app</a> alongside, now that transaction are so easy to make and forget.

Well, WhatsApp has indeed made our lives easier with its array of exciting features. So, the next time you need to transfer money to someone, just WhatsApp it!

&nbsp;

Whatsapp Money Transfer App - what a boon for convenience! You can now easily send money to people instantly through WhatsApp. Here's mymoneykarma to tell you all you need to know.

Whatsapp Apps - Whatsapp Money Transfer App

Mr. Rangaranjan from Bangalore rants, “This has been a major pain for me! My name on my Aadhaar card and passport has my first name abbreviated; however, my PAN card contains my full name. This is a source of tremendous headache. Every time I try to link my PAN and Aadhaar, it pops up an error message saying that it cannot be linked because there's a mismatch in the name. This is affecting my entire family, and it is a problem that needs to be addressed.”

<h3 class="credit_i_h3">Problems, Problems, and Problems!</h3>

This experience is just not one person's experience; it is becoming a rising concern for many people since the government bombarded us with the news of mandatorily linking PAN and Aadhaar. So, let's dive into understanding how to link PAN card with Aadhaar.

You are required to link PAN card with Aadhaar card to enjoy seamless Income Tax services. However, there’s always been a ‘last date’ to link PAN with Aadhaar looming around every quarter of the year, warning that people who fail to link their Aadhaar with PAN will not be able to file their income tax return (ITR). Every other year, the Government of India would extend&nbsp;the timeline of linking PAN with Aadhaar.&nbsp;

<h2 class="credit_i_h2">PAN-Aadhar Link Final Deadline Update</h2>

31st March 2021 has been set as the deadline for linking PAN and Aadhar,&nbsp; by the Income Tax Department. On failing to link Aadhar and PAN before the last date, the PAN card will turn inoperative from 1 April. If someone tries to use a PAN card that has turned inoperative, they may also be fined ₹10,000. The declaration came from&nbsp; CBDT (Central Board of Direct Taxes) in a notification on February 13, 2020.

PAN is an essential element in many financial transactions, such as property sale, banking transactions, investing in stocks/mutual funds, etc.

<h3 class="credit_i_h3">What’s the Problem?</h3>

Apart from the annoying and scary deadlines, the process of linking PAN card with Aadhaar is relatively simple. However, many people fail to link the two government ID cards successfully. There can be many reasons why sometimes it can get difficult to link PAN card with Aadhaar. For instance, Aadhaar allows the use of initials in the name, while PAN does not. &nbsp;Therefore, in such cases where the name in Aadhaar contains initials, the linking process often fails as the name differs from that in the PAN database.

<h3 class="credit_i_h3">Why this Problem?</h3>

The underlying problem lies in the technology associated with PAN, which is almost 30 years old. This problem is not encountered when the Aadhaar and passport are linked. While linking a passport with the Aadhaar, a person’s identity is tied to their biometrics, so their name on the document can have initials. However, the PAN software does not accept initials, and it is the result of using two separate software systems. Thousands of Indians, especially South Indians, face this problem in linking PAN card with Aadhaar. People residing in the Southern part of India generally have long names that are often abbreviated, and this poses a significant problem while linking PAN card with Aadhaar.

<h3 class="credit_i_h3">What’s the Solution?</h3>

The only possible solution to this mess is to change the name either in Aadhaar or in PAN database to avoid confusion. One can visit an Aadhaar Enrollment Center or a designated PAN application center of NSDL e-Gov or UTIITSL to get such errors rectified.

Since changes in PAN take a long time to fall through, people with this problem prefer to change their names in their Aadhaar cards and then link it with their PAN cards. While this might sound tedious, it is a better solution at the moment. However, these changes can lead to a mismatch in the name in other critical identity documents. To sum it up, it’s a convoluted mess that takes lots of time and patience to sort out.

<h3 class="credit_i_h3">How to Link PAN and Aadhaar?</h3>

There are many ways to link PAN card with Aadhaar. Let's take a quick look:

Through Website: Visit the income tax e-filing website lets you link your PAN card to Aadhaar card in a jiffy.

Through SMS: You can also use the SMS facility to link PAN card with Aadhaar. To link Aadhaar with PAN using the SMS facility, UIDPAN &lt;SPACE&gt; &lt;your 12-digit Aadhaar number&gt; &lt;SPACE&gt; &lt;10 digit PAN&gt; and send it to 567678. For example:

If your Aadhaar UID is 121122223333, and your PAN is AAAPA9999Q, then type:

UIDPAN 121122223333 AAAPA9999Q

Send it to 567678. You will receive a confirmation SMS.

The Supreme Court of India had earlier&nbsp;announced that linking PAN and Aadhaar is mandatory in order to file Income Tax Returns.&nbsp;However, <a href="https://www.mymoneykarma.com/blog/union-budget-2019-income-tax-provisions/" target="_blank">Budget-2019</a> offered a huge relief to <a href="https://www.mymoneykarma.com/taxes/index.html/unable-to-link-aadhaar-with-pan.html" target="_blank">those who hadn't or weren't able to link their PAN and Aadhaar</a> by making these two crucial identity documents interoperable. Although it's not mandatory anymore, there's no harm in streamlining your identity documents, right?&nbsp;

Some people might not be able to link their PAN and Aadhaar due to details mismatch in the two identity documents. mymoneykarma tells you how to deal with this problem.

Unable to Link Aadhaar with PAN - PAN Aadhaar Link

Applying for a passport in India has become fast-track and transparent nowadays, all thanks to the current External Affairs Ministry of India. Now you can receive your passport within fifteen days if you follow the entire process correctly. Owing to the online passport portal, scheduling an appointment and status-tracking has become a breeze. It wasn't so earlier when one had to stand in queue for several hours to wait for an appointment or had to depend on an agent, who might play foul. The whole process of passport application was a vicious cycle of corruption, where getting through the bottleneck was difficult and expensive.&nbsp;

Let's discuss it with an example - Rani had applied for her passport through an agent in 2009 when the online portal wasn't in the scene. There was no passport center in her tiny hometown in Uttar Pradesh. So, she applied for a passport through an agent who told her that he would take care of the entire process, and that she did not need to get into the hassle of visiting the Passport Seva Kendra, which was located far away in Ghaziabad (another city).

Rani was oblivious to the fact that the agent could not give an interview on her behalf. He took money from her and made a mess of the address and supporting documents, due to which her passport issuance was put on hold. The case stretched for a year and cost her father several visits to the Passport Seva Kendra. However, the authorities did not apprise him of anything about the list of documents that were missing and redirected him to another Kendra telling him that the case file was not registered with them. The agent had no answers to her questions, and Rani couldn’t take any action due to the lack of evidence. She was left with no option but to cancel the application. Long story short, Rani had spent around Rs.3000, and yet she did not receive her passport because she couldn’t trace the exact issue.

A few years later, with the advent of the online process and the elimination of middlemen, Rani applied for her passport again; this time she checked all the required documents herself and scheduled the appointment through the online portal. Rani received her passport within a week of completing the process.

<h3 class="credit_i_h3">Passport Application System in India</h3>

An Indian passport is issued to the citizens of India for international travel by order of the President of India. It enables people to travel internationally and serves as proof of Indian citizenship under the Passports Act (1967). The Passport Seva Unit of the Consular, Passport &amp; Visa (CPV) Division of the Ministry of External Affairs, functions as the primary passport-issuing organization and is responsible for printing Indian passports for all eligible applicants. Indian passports are issued at 93 offices in India and at 162 Indian diplomatic missions abroad.

<h3 class="credit_i_h3">mPassport Seva App</h3>

The passport application process has reached a pocket-friendly stage with the launch of the mPassport Seva App. Through the app, you can apply for a passport in India without time and place constraints, and it is available for both Android and iOS users. The interface of the app is user-friendly, and you can easily register on it even as a first-time user. The popularity of this app is evident from the fact that it had hit more than one million downloads within the first day of its launch. So, if you have the right set of documents available with you, then applying for a passport will take no more than ten minutes.&nbsp;

<h3 class="credit_i_h3">A Step-by-step Guide to Using the mPassport Seva App</h3>

<ul class="banklogin_ul">
	<li>
	Download the app from the google store on your mobile.
	</li>
	<li>
	Open the main menu on the app and click on 'New User Register' if you are a new user, or else click on 'Existing User Login.'
	</li>
</ul>

<ul class="banklogin_ul">
	<li>
	Clicking on 'New User Register' will lead you to a user registration form.
	</li>
</ul>

<ul class="banklogin_ul">
	<li>
	On the form, select the nearest passport office, enter your name, surname, date of birth and e-mail id.
	</li>
	<li>
	If you want your mail id to serve as your login id as well, then select 'Yes' or else 'No.'
	</li>
	<li>
	If you select 'Yes,' your e-mail id will automatically get filled in the login id space. Otherwise, you will have to create a new login id. In case you create a unique login id, check its availability first.
	</li>
	<li>
	Before entering the password, you can check the policy by clicking on the link given below the designated space for password, so that you may create your password accordingly.
	</li>
	<li>
	Confirm the password by entering it again.
	</li>
	<li>
	Select a hint question and answer it respectively.
	</li>
	<li>
	Enter the captcha characters as displayed on the screen and click on 'Submit' for completion.
	</li>
	<li>
	An activation link will be sent to your mail id, clicking on which will lead you to the mPassport Seva Portal and your account will get activated.
	</li>
</ul>

<ul class="banklogin_ul">
	<li>
	Once you are registered, you will have three options on the page that you can select as per your requirements:&nbsp;
	</li>
</ul>

<ol class="homeloan_Faqs_ul_1">
	<li>
	Apply for a new passport/re-issue passport.&nbsp;
	</li>
	<li>
	Apply for a police clearance certificate (PCC).
	</li>
	<li>
	View saved/submitted applications.
	</li>
</ol>

<ul class="banklogin_ul">
	<li>
	On the main menu of mPassport Seva, there are some other functions for you to use:
	</li>
</ul>

<ol class="homeloan_Faqs_ul_1">
	<li>
	Status tracker: It can be used to track your application status.
	</li>
	<li>
	Appointment availability: You can schedule an appointment through this option.
	</li>
	<li>
	Documents advisor: Check all the required documents here.
	</li>
	<li>
	Fee calculator: To check the fee needed for the interview.
	</li>
	<li>
	Locate center: Locate the nearest Passport Seva Kendra.
	</li>
	<li>
	Contact us: You can contact the executive through this tab if you need any help.
	</li>
</ol>

<h2 class="credit_i_h2">In a Nutshell</h2>

With the advent of mobiles and the internet, applying for a passport in India is no longer a cumbersome issue, and the mPassport Seva app is the cherry on the cake. So don't wait for the moment when you would require a passport for need-based travel. Instead, download the app now, become a registered user, and apply for your passport. Happy Traveling!

 
&nbsp;

How to apply for passport using mPassport Seva app - Learn the uses of mPassport Seva app on themymoneykarma website, and apply for your passport easily.

mPassport Seva App - How to Apply for Passport Using mPassport Seva

Although the Indian government has banned cryptocurrency, Bitcoins are the latest trend in the finance industry, and everyone is talking about it. If you have just come across the term and have no idea what it means and what it involves, you have come to the right place. mymoneykarma tells you what you need to know about bitcoins, how bitcoin works, how are bitcoins different from other currencies, how to buy bitcoins, and their advantages and disadvantages. Consider this article as a bitcoin tutorial for beginners.

<h2 class="credit_i_h2">What Are Bitcoins?</h2>

Bitcoins were developed by a coder called Satoshi Nakamoto in 2008, who wanted to put businesses in charge, eliminate the middlemen, remove interest fees, and make transactions transparent and straightforward.&nbsp; Bitcoin is a decentralized electronic cash system that operates peer-to-peer. This means that no single institution or body of government can control it. Bitcoins cannot be printed, and their availability is minimal. Bitcoin is a part of a shared public ledger called the blockchain that records every transaction ever processed.

<h3 class="credit_i_h3">Advantages of Bitcoins</h3>

<ol class="homeloan_Faqs_ul_1">
	<li>
	Decentralized: Bitcoins are designed so that businesses and individuals who are involved in bitcoin mining and transaction verification become part of a more extensive network. Thanks to the beauty of the <a href="https://www.mymoneykarma.com/blog/why-should-banks-embrace-blockchain-technology/">blockchain technology,</a> even if a part of the grid goes down, the money always remains in circulation.
	</li>
	<li>
	Anonymous: Banks have all kinds of information about their customers: credit histories, addresses, phone numbers, spending habits, etc. But a bitcoin wallet always remains anonymous as it need not be linked with your personal information. It is the perfect investment avenue for people who like to keep their personal information private.
	</li>
	<li>
	Transparent: The blockchain stores every single bitcoin transaction that has ever occurred. So, if your organization uses blockchain, all transactions can be monitored and tracked. It increases transparency and reduces corruption.
	</li>
	<li>
	Fast: Payment processing on the bitcoin network occurs almost instantaneously. It takes just a few minutes for someone on the other side of the world to receive the money you send, while conventional banks can take several days to process the same payment.
	</li>
</ol>

<h3 class="credit_i_h3">What Can I Buy with Bitcoins?</h3>

When Bitcoin was first introduced in 2008, it wasn't obvious how and where you could spend it. Now, giant companies like Microsoft and Dell accept payments in bitcoins for their products and digital content. You can also pay for hotels and buy a property with bitcoins, pick up bills in various bars and restaurants, buy gift cards, etc. There are online bitcoin marketplaces, trading in everything from small things like pins to high-end luxury items.

Bitcoin has also become a prime opportunity for investment. It has become considerably more valuable over the last year, almost reaching a rate of $5000 for one bitcoin.

<h3 class="credit_i_h3">How to Get Bitcoins?</h3>

Bitcoins are available on various stock exchanges. One can also purchase them directly from other people and pay with cash, credit, and debit card transfers, or even with other cryptocurrencies. You also need a bitcoin wallet to buy or sell bitcoins. There are many alternatives, but the main ones are an online wallet and a software wallet stored on the hard drive of your PC. However, if you’re a resident Indian, these magic coins are off the charts for you.

<h3 class="credit_i_h3">Why Do You Need a Bitcoin Wallet?</h3>

Unlike most traditional currencies, Bitcoin is a digital currency. Bitcoins don't have any physical shape or form, hence they cannot be stored in a physical space. However, the private keys used to access your public bitcoin address and authenticate transactions need to be securely stored in your bitcoin wallet.

<h3 class="credit_i_h3">Types of Bitcoin Wallets</h3>

There are several different forms of bitcoin wallets, catering to different requirements and varying in terms of safety and security, convenience, and accessibility.

<ul class="banklogin_ul">
	<li>
	Paper wallets: A paper wallet is a document that contains the public address that you use to receive and sell Bitcoins and a private key, which allows you to spend or transfer the Bitcoins you received. These wallets are printed in the form of QR-codes to quickly scan them and add the keys to a software wallet. A paper wallet eliminates the need to store the secure keys digitally and makes you immune to hacker attacks and phishing malware. A paper wallet is the best way to prevent the digital theft of your Bitcoins.
	</li>
	<li>
	Physical wallets: A physical wallet is usually pre-loaded with a fixed amount of bitcoins that can be spent by the user as they please. The user needs a private key to access the Bitcoins. The key is concealed by a tamper-evident seal. A physical wallet is shaped like a credit card or a circular medal.
	</li>
	<li>
	Mobile wallets: For those actively using Bitcoins daily, paying for goods in shops or trading them face-to-face, a mobile bitcoin wallet is essential. It can run as an app on your smartphone, store your private keys, and allow you to pay for things from your phone directly.
	</li>
	<li>
	Web wallets: Web wallets or e-wallets are used to store your private keys on a secure server of a company providing digital security. This server is continuously monitored and controlled by the company's operators, which makes it safe from hacker attacks. Different companies offer different features and services such as linking the server wallet to your desktop wallet and enabling you to access their server from any device with an internet connection.
	</li>
	<li>
	Desktop wallets: Desktop wallets are downloaded and installed on your computer, storing your private keys on your hard drive. They are safer than online and mobile wallets because they don't rely on third parties. Desktop wallets are the right solution for you if you trade small amounts of bitcoins from your computer.
	</li>
	<li>
	Hardware wallets: A hardware wallet is a bitcoin wallet that stores the user's private keys into a secure hardware device. It is considered to be the most secure way of storing bitcoins.
	</li>
</ul>

<h3 class="credit_i_h3">Disadvantages of Bitcoins</h3>

Bitcoins are a relatively new variant of cryptocurrency; the absence of regulation and control leaves the system vulnerable to a lot of problems. mymoneykarma lists a few issues with bitcoins.

<ul class="banklogin_ul">
	<li>
	Legal questions: Bitcoin remains a legally ambiguous question throughout the world. The Indian Government doesn’t allow it. The legal status of Bitcoin varies in different countries. A lot of concerns have been raised regarding Bitcoin being easily tradable on the dark web and accessible to criminals. Some experts even argue that Bitcoin's popularity is only because of its ability to be spent on illegal activities.
	</li>
	<li>
	Level of recognition: Bitcoins are still not recognized in many countries and governments worldwide don't have any regulations regarding bitcoins yet. The courts are struggling to settle cases of bitcoin fraud because of the absence of any legislature.
	</li>
	<li>
	Lost keys: Losing your unique alphanumeric password or bitcoin key can be disastrous. If you have invested in bitcoins and you lose your key, you stand to lose your bitcoins.
	</li>
	<li>
	Volatility: The price of bitcoins goes through various cycles of skyrocketing and plummeting, referred to by some as bubbles and busts. Its value is unpredictable, which can cause significant financial damage to an imprudent investor.
	</li>
</ul>

<h2 class="credit_i_h2">Future of Bitcoins</h2>

The future of Bitcoin is unclear. An absence of regulation and legislature makes it challenging to control the flow of bitcoins. However, the more prominent and more popular they get, the more world governments will try to control the flow of Bitcoins. A well-regulated Bitcoin system will be an excellent upgrade to the current form of currencies.

Bitcoins are the most popular type of cryptocurrency in 2019 and it is here to stay. mymoneykarma tells you everything that you need to know about bitcoins.

Bitcoin Price - Bitcoin For Beginners

Presented by the Union Minister for Finance, Mr. Piyush Goyal, on February 1, 2019, the interim Union Budget for 2019 is a much-needed tax relief for the salaried middle class. Income tax concessions for salaried class and lowered peak tax rates for corporates seem to be the mantra for 2019. The alternative focus remained on the farmers and senior citizens.

The Union Home Minister, Mr. Arun Jaitley, has called the Union Budget “historic and for the development of the common man.” The budget has undoubtedly focused on the common man this time over, but it remains to be seen whether the Budget measures are implemented successfully.

mymoneykarma brings you the major highlights of the Union Budget 2019, and what they entail for all of us.

<img alt="50 Rupees Note" src="https://lh4.googleusercontent.com/CsTtc1mecosIOdsO_GOCWqSj2nCROxja7IfG_pRxnARX8X23styZqeDLSZwvBRb5b2QAewimR3xgzDFwu459jS5mbzjVlE3nFZh5yOPfCsGi-An22_gEYyysT6o5XMrb0PQSOK7E" style="height:468px; width:624px" class="img-responsive credit_i_img">

<h3 class="credit_i_h3">The Middle-class Dream</h3>

The 2019 budget is a transparent attempt to woo the salaried middle-class with tax sops, and it seems to be working for now. According to the budget;

<ol class="homeloan_Faqs_ul_1">
	<li>
	Individuals earning up to Rs. 5 lakhs per annum will be granted full tax rebate after all deductions. This covers a large portion of young working professionals.
	</li>
	<li>
	The TDS threshold on interests on bank and post office deposits have been raised from Rs. 10,000 to Rs. 40,000. The TDS threshold on rental income has been increased to Rs. 2.4 lakhs from Rs. 1.8 lakhs.
	</li>
	<li>
	The standard tax deduction has been raised from Rs 40,000 in 2018 to Rs. 50,000 in this year.
	</li>
	<li>
	Individuals occupying their second self-owned house are exempt from paying property tax for that property.
	</li>
	<li>
	The workers who are earning up to Rs. 21,000 per month will be eligible for bonuses.
	</li>
</ol>

<h3 class="credit_i_h3">Focus on Farmers</h3>

The Union Government has continued the trend of creating farmer-centric budgets in 2019. Much like last year, there are several incentives designed for farmer welfare.

<ol class="homeloan_Faqs_ul_1">
	<li>
	The Budget proposes a pension of Rs. 6,000 per annum to be given in 3 installments to farmers with up to 2 hectares of cultivable land. This measure is being hailed as a life-saver for farmers in drought-ridden or flooded areas and targeted to reduce farmer suicides.
	</li>
	<li>
	The Budget also provides for a 2% interest subvention for farmers affected by natural disasters and an additional 3% interest subvention for timely payment.
	</li>
	<li>
	The Budget has proposed to create a separate department for fisheries and provide a 2% interest subvention for farmers pursuing animal husbandry.
	</li>
</ol>

<h3 class="credit_i_h3">Other Miscellaneous Freebies</h3>

The Union Budget has several other attractive measures that are highlighted below.

<ol class="homeloan_Faqs_ul_1">
	<li>
	Young mothers have a reason to breathe easy as the maternity leave has been extended to 26 weeks instead of 24 weeks.
	</li>
	<li>
	The fiscal deficit for the year has been brought down to 3.4% from an earlier 3.5%.
	</li>
	<li>
	The Central Government has proposed to share 14% of the revenue from GST to the state governments.
	</li>
	<li>
	The Budget has also done away with customs duties from 36 capital goods – gold, precious gems and several products imported from the US to name a few. This move is stated to reduce the prices of several items in the country.
	</li>
	<li>
	A monthly pension scheme, named the Pradhan Mantri Shram Yogi Mandhan, will be introduced to provide monthly pension of Rs. 3,000 for workers of and beyond 60 years of age in the unorganized sector.
	</li>
</ol>

<h3 class="credit_i_h3">Cons of the Budget</h3>

Not all parts of the budget are shiny and beautiful. In fact, there are several dents in the budget’s armor as discussed below.

<ol class="homeloan_Faqs_ul_1">
	<li>
	No substantial tax cuts are announced for the large corporate companies. This gives them fewer incentives to create new jobs.
	</li>
	<li>
	No substantial sops have been given to the urban poor or industrial workers. 
	&nbsp;
	</li>
</ol>

<h2 class="credit_i_h2">Summing it up</h2>

The 2019 Interim Budget has been made to attract the farmers and the salaried classes of the vote bank. We need to wait and watch what kind of results this budget brings in the financial landscape of this country. But you need not wait to see how the Union Budget affects you.<a href="https://www.mymoneykarma.com/" target="_blank"> mymoneykarma</a> can help you in achieving financial success.

&nbsp;

Budget 2019 presented by the Government of India focused on revising tax rates and easing debt repayment for farmers. Learn more at mymoneykarma.

Budget 2019 - the Middle Class Dream

India is a promising destination to start a new business. With a thriving market of over 1.35 billion people and an enormous economy, India offers a budding platform for numerous avenues for business.&nbsp; NRIs (Non-Resident Indian) are the quintessential entrepreneurs that the country needs now. With more than 15 million NRIs and PIOs (Persons of Indian Origin) living abroad, India currently has the world’s largest diaspora. Although India’s NRI pool forms around 1 percent of the country’s population, yet it is an indispensable cog in the wheel of its development. Apart from bringing in economic benefits of remittances of forex, NRIs also bring along a modern and global perspective. Therefore, they not only add technical and domain expertise to domestic <a href="https://www.mymoneykarma.com/trending-in-finance/index.html/exciting-avenues-for-startup-funding-in-India.html" target="_blank">startups</a> but also act as angel investors. Moreover, new businesses create jobs, and employment generation is the stepping stone to economic growth. The Indian Government has realized that the NRI population can be instrumental in bringing about development and has thus started leveraging its potential by offering attractive incentives to encourage NRI investment in India.

<h2 class="credit_i_h2">The Challenges</h2>

However, starting a business in India is not a child’s play. Apart from the meticulous planning, paperwork and gathering funds, there are a host of other deterring factors.&nbsp; Setting up a new business in India typically involves several clearances, approvals and tedious tasks like registering the company, acquiring property and registering it, getting clearance from the various ministry departments to comply with environmental laws, arranging for electricity and water connection, procuring several licenses, etc. The list is endless. Such hassles can easily dissuade potential entrepreneurs from setting up a business in India – more so for NRIs, who are presumably unaccustomed to such excessive bureaucracy.

<h3 class="credit_i_h3">The Central Government’s Efforts</h3>

To avoid this, the Indian Government has made several administrative changes to help foreign investors and NRIs to set up businesses. The Ministry of Commerce and Industry created the Foreign Investment Promotion Board (FIPB) to bypass the red tapes and ensure smooth sailing to all potential foreign investors. The board operates in a single window system so that investors can get all approvals in one place, thus reducing the need to make several rounds to different government departments for clearances and licenses for setting up a business in India. Moreover, the Central Government has been actively supporting and supplementing the efforts made by various state governments in encouraging NRIs for business startups. Consequently, the scenario of startup funding in India has improved considerably in recent years.

<h3 class="credit_i_h3">The State Government’s Efforts</h3>

Many state governments have rolled out several enticing incentives to attract investments in their states. A few states have launched special schemes, such as “Vibrant Gujarat”, “Happening Haryana,” “Magnetic Maharashtra,” etc.to encourage Non-resident Indians to start businesses. Some of these schemes provide land or industrial sheds at a reduced rate. Some states have gone the extra mile and given free-of-cost land to promising enterprises. Quite a few states offer subsidized rates of electric power supply to run businesses and<a href="https://www.mymoneykarma.com/info-tax/sales-tax.html"> exemption from taxes</a> for a few years. It’s a no-brainer that new businesses will inevitably create more employment opportunities for local people. Therefore, state governments have a vested interest in incentivizing NRIs to start new businesses.

<h3 class="credit_i_h3">Special Incentives for Backward Areas</h3>

The bulk of new industries choose to operate in places with an established infrastructure. Hence, cities are preferred over remote locations. In a bid to promote industrialization of backward areas, both the state and central governments are providing extra benefits to NRIs for setting up new ventures in certain offbeat locations that need development. These incentives largely depend on the area chosen, but the government is willing to share more than 50% of the transportation costs for new businesses set up at relatively less accessible areas. Many new ventures are being provided with the initial investment for purchasing machinery and equipment required for a basic setup.

<h3 class="credit_i_h3">Financial Assistance</h3>

The scenario of startup funding in India has improved considerably in recent times. NRIs are being offered loans for establishing their startup business in India. Two Indian banks – Industrial Development Bank of India (IDBI) and Industrial Financial Corporation of India (IFCI) – are specifically designated to aid potential entrepreneurs in this process. Non-resident Indian entrepreneurs need to submit a statement of purpose with a detailed description of the project, the skill set of the people involved in it, the various environmental issues related to it, the business model, etc. to these banks. If the idea receives a green signal after a thorough verification, a loan amount of up to 75% of the project cost can be sanctioned by the banks. NRI entrepreneurs looking to purchase existing businesses can approach the Indian banks for a loan to buy commercial property.

Since IDBI is involved in direct financing of industrial activities, its main objective is to create a principal institution for long-term finance. The Indian Government set it up to manage the institutions working in this domain for planned development of the industrial sector, to provide administrative and technical support to the growing industries and to conduct various R&amp;D activities for the benefit of the industrial sector. Similarly, State Financial Corporation (SFC) and State Industrial Development Corporation (SIDC) offer financial assistance to budding ventures in the state-level.

<h2 class="credit_i_h2">To Sum Up</h2>

India is seeking to boost flows to support its currency that has depreciated tragically in the recent past. Therefore, the Government is aggressively courting for NRI investments in India. These measures have been quite fruitful – the number of budding startup companies in India is the living proof.&nbsp; As foreign investment into India is at an all-time high currently, it is an ideal time for the NRIs to dive into the Indian market. The relaxed FDI norms and proactive government initiatives like Make in India Scheme and Startup India Scheme have helped India rise in the ‘ease of doing business’ ranking recently. Moreover, to encourage NRI, OCI and PIO entrepreneurs, the government has declared that non-repatriable investments will be considered as domestic investments and will therefore not be subject to FDI caps. Not only is the Indian market highly favorable for new business ventures, but the government of India has made it all the more conducive by offering these additional incentives and encouragements to the non-resident Indian entrepreneurs. This cherry on the cake should be the spur for NRIs to set up shop in their homeland.

&nbsp;

NRI investment in India is a major source of revenue for the country. Read ahead to learn more about how NRIs can use the Startup India Scheme for startup funding.

NRIs To Start Business In India | Startup Business In India

If you are a salaried employee, you must be aware of PF deductions. In case you aren’t, just take a peek at your salary slip. If the organization that you work for is registered with<a href="https://www.mymoneykarma.com/epfo.html"> EPFO</a>, you will notice a considerable amount being deducted from your total salary every month. That’s your PF or Provident Fund deduction. Don’t get worked up – you are not losing out on the money; it is deposited into your PF account as compulsory savings, and you can easily do a PF balance check from the official website of EPFO whenever you want.

<a href="https://www.mymoneykarma.com/epf.html">EPF</a> or Employee Provident Fund is a Government-initiated post-retirement savings scheme that is accessible to all salaried employees. The Employees Provident Fund Organisation of India (EPFO) manages the EPF. According to the EPF and Miscellaneous Provisions Act, it is mandatory for all registered organizations with more than 20 employees to enroll with the EPFO. Employee Provident Fund is considered to be a great savings platform, which aids the employees in saving a portion of their salary each month.

EPFO has recently launched the facility of E-nomination on their Unified Member Portal. This service assists all EPFO subscribers in enrolling a nominee for their EPF account. Moreover, subscribers who wish to modify their existing nomination can also utilize this facility. Earlier, the process of changing EPF nominee was a highly tedious task. Prior to the launch of this digitized service, the procedure was entirely offline, and it was quite a lengthy and cumbersome one. It required the subscribers to obtain FORM 2 for enrolling a nominee. This form had to be filled up and submitted to the employer for authorization. The employer would have to send the Form to the EPF office. The process was entirely manual and highly time-consuming. The new e-nomination facility is not only much faster, but it also eliminates the employer’s intervention.

<h2 class="credit_i_h2">Steps to Register or Change EPF Nominee</h2>

A substantial amount of your life’s savings are deposited into your EPFO account. It is always safe to assign a nominee for the account. If something unfortunate happens to you, your family can largely benefit from your savings corpus. Registering a nominee is imperative as it considerably reduces the complications of claims and ensures smooth transactions. Let us take a look at the step by step procedure of using the E-nomination facility of EPFO on its Unified member portal.

#1 Visit the<a href="https://unifiedportal-mem.epfindia.gov.in/memberinterface/"> Unified Member Portal</a> of EPFO

#2 Go to the panel on your right and login using your EPFO login credentials – UAN and password. If you haven’t yet activated your UAN on the EPFO portal, just click on “Activate UAN” option found right below the login panel and register for the services. This will also allow you to check your EPF balance.

<img alt="epfo" src="https://lh5.googleusercontent.com/IrGIsRw2xkllaA6FSvM9-6E8JUqMxU8lshqytKFS3sPONCWSfOXqgD5m8PtCsmnqL0PdXuZmHLaY-KzraTaUah6Hobzp1ILm2ZibMKuxv9YJquBKjoC30t99XLqdclrcFs_JK3fT" style="height:325px; width:624px" class="img-responsive credit_i_img">

#3 Go to the “Manage” option and click on ‘E-nomination’ to proceed to the “Profile” page that displays your UAN number along with your name, date of birth and gender.

<img alt="epfo" src="https://lh5.googleusercontent.com/eYYuGOI1pNN_MkxgAsxfkkd7gUC9HIznTFC0qD0wR6G7xDX-3K-7yRT9Hwi6fIxmVQKQVvZNtmlt-HTWZVLosbbZlgYGdlLnL-r-DvZYDsYqH4MXsyw3gSFKpHzLeEKG5hbJs7Fa" style="height:351px; width:624px" class="img-responsive credit_i_img">

#4 Enter your Permanent Address in the box and click on the “Save” button. Remember that this will work only if your Date of Joining the EPF Scheme is registered with the EPF account. If not, you will not be allowed to update nomination details.

#5 Once your profile details are updated, you will be asked to fill in the family declaration.

#6 If you select the “Having Family” option, you will be asked to enter your family details. Feed the name, date of birth, address of the family member and then select the relationship with the concerned person from the drop-down menu. Click on the “Save Family Details” button.

<img alt="EPF Nomination 3" src="https://lh5.googleusercontent.com/KuRP7IrXNKixiUh1Vnw19TH2quPJG98_auAr8NKCQol2Drl8B189Th9IyajG0lRUhqAZl9-aV7SNiohLQ2cp2YVkIDWrnzeqhCpbgL5sbiIMfnWzgHD10OeDIFUof5xHK3vV1nMf" style="height:199px; width:624px" class="img-responsive credit_i_img">

#7 The next page is dedicated to EPF Nomination, where you will be allowed to select the family members whom you wish to nominate. You can specify the proportion of share that you want to allocate to each nominee. You can modify the names of the nominees and also adjust the percentage of amount that they are nominated for.

<img alt="epf-nomination-save" src="https://lh5.googleusercontent.com/E7JJoketX4aDH2uUK8d9AFfLD2vhcXavb2pA08YC9c-tSIYgbST5glyT0ZACDdMkAEcat8xLh5d0DdHshZLJniDd6hh-PsP3j6t4He3YOzVgrDJM9EvqSE1tVhceqJh0DIBkePWc" style="height:133px; width:624px" class="img-responsive credit_i_img">

#8 Click on the “Save EPF Nomination” button to save the entered details.

#9 The next step would be to approve the nomination by using the ‘e-sign’ feature.

#10 Click on the ‘e-sign’ button. A popup window will ask for the signatory. Select the signatory and then click on the ‘Generate OTP’ button to receive an OTP on your<a href="https://www.mymoneykarma.com/aadhaar-card/register-mobile-number-in-aadhar-card.html"> Aadhaar-registered mobile number</a>.

<img alt="digital-sign" src="https://lh3.googleusercontent.com/mSKzfWv_hI4qXObOGWJNQlu9o5swFOms_gaWfWK_CN1SJl32uJr5OrpmaNs8LR_yRc3gYBq0A4o4P2FeYLKuzAp7tm4X62aOpxBPKUDgQscMy7xON_MpNLmgoowJBqYdzueZ9Sdz" style="height:269px; width:624px" class="img-responsive credit_i_img">

#11 The consent through OTP will automatically authenticate the process without the need for generating any additional Digital Signature Certificate.

#12 Once you enter the OTP, the nomination for your EPF account will be registered successfully.

<img alt="epf-pending-nomination" src="https://lh4.googleusercontent.com/BRa3A3zC1eD6KsKscKITvnDdySegkXGq63F8y5wGnylozKCiDRxQkoE60FsP0FwUgC6I2iO6croXgYSGZqf-8ChxSzeeVGOtjYbRATkXBftLEhDpxE1gFDZsapZnS4JQmObjNoQm" style="height:180px; width:624px" class="img-responsive credit_i_img">

<h2 class="credit_i_h2">To Sum Up</h2>

The launch of the e-nomination facility for EPFO is indeed a progressive step towards digital India. The facility is extremely convenient and hassle-free. It aims to ease out the difficulties that subscribers faced earlier in getting such things done manually. Gone are the days of frequenting the EPF office and waiting in long queues for hours to get a simple job down. You can simply log on to the EPFO portal and register or change the nominee from the comforts of your home. So, if you haven’t updated your EPF nominee details yet, what are you waiting for? Just get in front of the computer with your UAN and your registered phone and get it done in a jiffy.

&nbsp;

E-nomination Facility by EPFO has several important aspects that go unnoticed by many. Read ahead to know more about when and how to update E-nomination details for your PF account.

E-nomination Facility by EPFO | Update E-nomination Details

As the Indian Government announced the Budget for the FY, many changes have been proposed that can alter the budget of a common man’s household. However, most law-abiding, income-earning, and tax-paying citizens are more interested in the new changes made to the income tax provisions. Let’s begin with a quick recap of the income tax-related announcements in the Interim Budget 2019.

<ul class="banklogin_ul">
	<li>
	The taxable income slab was proposed to be raised from 2.5 lakhs to 5 lakhs.
	</li>
	<li>
	The TDS threshold on interests on bank and post office deposits was proposed to be raised from Rs. 10,000 to Rs. 40,000.
	</li>
	<li>
	The TDS threshold on rental income was to increase to Rs. 2.4 lakhs from Rs. 1.8 lakhs.
	</li>
	<li>
	The standard tax deduction was proposed to be raised from Rs 40,000 in 2018 to Rs. 50,000 this year.
	</li>
	<li>
	Individuals occupying their second self-owned house were to be exempt from paying property tax for that property.
	</li>
	<li>
	The workers earning up to Rs. 21,000 per month were proposed to be considered for bonuses.
	</li>
</ul>

<img alt="Union Budget 2019" src="https://lh5.googleusercontent.com/Hw2youZOPwyr57deOCibFkSYq5gbyiZZVNZlypG2bheUdp7htc-wtwSm_WdPdVHfZh9pcwzKAS1Uk6Drt7vjKej-DPoKalaD2813Ht3W_P150M5trNzyp42MvUsv1EB2zcSb_9ph" style="height:375px; width:375px" class="img-responsive credit_i_img">

The Interim Budget 2019, announced in February 2019, had given high hopes to the Indian populace with a proposal of granting full tax rebate after all deductions to individuals earning up to Rs. 5 lakhs per annum. A large portion of young working professionals fall within this income bracket, and many had heaved a huge sigh of relief. Union Minister for Finance, Smt. Nirmala Sitharaman, in her maiden budget, confirmed that the income tax slab rates proposed by Mr. Piyush Goyal in February would be kept unchanged. While the common man rejoices, there’s some bad news for the affluent section of the Indian population. The Hon’ble Finance Minister announced a bunch of new income tax proposals that could impact many taxpayers.

<ul class="banklogin_ul">
	<li>
	PAN and Aadhaar would be made interchangeable for tax-filing purposes, which means that if you can file your ITR using your Aadhaar, even without a PAN card.
	</li>
	<li>
	Having ruled out the<a href="https://www.mymoneykarma.com/taxes/index.html/unable-to-link-aadhaar-with-pan.html" target="_blank"> confusion of PAN-Aadhaar linking</a>, the new Budget has made it compulsory for all income-earning citizens to<a href="https://www.mymoneykarma.com/taxes/index.html/5-reasons-to-file-itr.html" target="_blank"> file their tax returns</a>.
	</li>
	<li>
	An additional income tax deduction of ?1.5 lakh would be applicable on home loans for affordable houses that are priced below ?45 lakh. This benefit would be available for home loans taken until March 2020.
	</li>
	<li>
	Another ?1.5 lakh income tax deduction would be applicable on interest paid on loans for the purchase of electric vehicles.
	</li>
	<li>
	2%<a href="https://www.mymoneykarma.com/taxes/index.html/what-is-tds.html" target="_blank"> TDS</a> would be deducted on all cash withdrawals on amounts exceeding ?1 crore in a year.
	</li>
	<li>
	Retail investments in Central Public Sector Enterprises (CPSE) ETFs could get income tax benefits similar to that of ELSS. A divestment target of ?1.05 lakh crore has been set for this year. Currently, investments made in ELSS mutual funds that come with a lock-in period of three years are eligible for a deduction of up to ?1.50 lakh under Section 80C of the Income Tax Act. A similar facility could be available to retail investors in CPSE ETFs.
	</li>
</ul>

<ul class="banklogin_ul">
	<li>
	The income tax surcharge has been modified for High Net-worth Individuals (HNI) earning more than ?2 crore a year. HNIs with an earning between ?2-5 crore would now have to shell out more, with the surcharge rate increased from 15% to 25%. Earnings above ?5 crore would attract a surcharge of 37% from the current 15%.
	</li>
</ul>

Apart from the changes in the income tax provisions, some other announcements have become the talk of the town since this morning. While changes in customs duties of a handful of goods have created a buzz in the media, several incentives have also been introduced that would reduce the prices of a handful of items. Let’s check out what will become more affordable and what would cost a bomb.

<h3 class="credit_i_h3">What Will Become More Expensive?</h3>

<ul class="banklogin_ul">
	<li>
	Petrol &amp; diesel
	</li>
	<li>
	Metal fittings
	</li>
	<li>
	Marble Slabs
	</li>
	<li>
	Imported gold and precious metals
	</li>
	<li>
	Imported paper and paper products (including printed books)
	</li>
	<li>
	Imported electronics like loud-speakers, plugs, sockets, switches
	</li>
	<li>
	Imported Vinyl flooring, tiles,
	</li>
	<li>
	The indoor &amp; outdoor units of split AC
	</li>
	<li>
	Imported cashew kernels
	</li>
	<li>
	Imported auto parts
	</li>
	<li>
	Cigarettes
	</li>
	<li>
	CCTV cameras/ IP cameras
	</li>
	<li>
	Polyvinyl chloride (PVC) pipes
	</li>
</ul>

<h3 class="credit_i_h3">What Will Become Cheaper?</h3>

<ul class="banklogin_ul">
	<li>
	Houses
	</li>
	<li>
	Electric vehicles
	</li>
	<li>
	Imported defense equipment
	</li>
	<li>
	Imported parts of electric vehicles
	</li>
	<li>
	Imported raw material for the manufacture of artificial kidneys
	</li>
</ul>

While some of these announcements brought tears to the eyes of a few, several other announcements in Budget 2019 has rekindled a joyous smile on the faces of many. Click here for the general highlights of the Budget.

&nbsp;

mymoneykarma brings you the latest news about Union Budget. Learn about the Union Budget 2019, general highlights of the Budget, and get Union Budget updates.

Union Budget 2019 – The Common Man’s Concern

Almost all salaried employees don’t receive an elusive chunk of their monthly salary due to EPF deductions. Have you wondered what are EPF deductions?

Commonly known as EPF,<a href="https://www.mymoneykarma.com/epf.html" target="_blank"> Employee Provident Fund</a> is typically a post-retirement scheme which is accessible to all salaried employees. EPF is managed by the Employees Provident Fund Organisation of India (EPFO). The EPF and Miscellaneous Provisions Act states that a registered company with more than 20 employees is mandated by law to enroll with the EPFO. Employee Provident Fund is considered to be a great savings platform which aids the employees in saving a portion of their salary each month. As against the global average of 40%, women’s contribution in Indian workforce is pretty low (at a dismal 24%). There are several issues keeping women away from the formal workforce. Catalyst, a leading non-profit social marketing agency states that even a small increase of 10% in the participation rate of women in the workforce could increase India’s GDP by 700 billion dollars (1.4% of the GDP)

In Feb 2018, while introducing the Budget for 2018, it was announced that the government has found a new way to increase women’s participation in the workforce – through incentivization. Finance Minister Arun Jaitley stated that there will be a reduction in the contribution of female employees to the EPFO to 8% from 12%, for promoting the participation of women in the labor force. Amendments will be made in the Employees Provident Fund (EPF) and Miscellaneous Provisions Act, 1952 for reducing women employees’ contribution to EPF. You can check whether your company is registered with<a href="https://www.mymoneykarma.com/epfo.html" target="_blank"> EPFO</a> by visiting EPFO’s official website and using the Establishment Search Engine.

<h2 class="credit_i_h2">The Amendment, Explained.</h2>

The labour force participation rate for women is one of the lowest, globally. It is saddening to note that India is ranked 121st out of 131 countries based on women’s participation in the workforce. As compared to the 82% participation rate of men in the workforce, the participation rate for women stands at a meager 28.5%. Research shows that bridging the gender parity would be more beneficial for India as compared to any other region in the world. This move could also bridge the gap between the on paper salary and take home salary, which would eventually increase women’s incentive to work and to participate in the workforce. The modified rule on EPF will be applicable for the next three financial years, starting with Financial Year 2018-19. However, the modification in the Employees Provident Fund (EPF) and Miscellaneous Provisions Act doesn’t have any impression on the employer’s contribution to EPF, i.e, the employer will still be required to provide 12% of the EPF from the salary of women employees. Presently, all the employees are required to contribute 12% of their basic salary as a monthly contribution to the Employees Provident Fund, and the employer makes a similar contribution to the fund.

Additionally, the government has also proposed to contribute to the 12% of the employer’s share of contribution towards EPF for every new employee’s salary; this applies to all sectors of the economy for the next three years. This move is intended to reduce the payroll cost of the employers since the government will be taking the burden of providing PF for the new employees. The government holds that the primary aim of this alteration in EPF laws is to incentivize employment of more women in the workforce by giving them higher take-home salaries.

<h3 class="credit_i_h3">How Is the Change in EPF Laws Going to Affect You?</h3>

Apart from the change in women’s contribution in EPF, the other amendment announced by the government in the Employees Provident Fund (EPF) and Miscellaneous Provisions Act was increasing the Government’s Contribution to the EPF. We know that the EPF paid by the employer is divided into two parts: EPF and EPS (Employee’s Pension Scheme). According to Budget 2016-17, the employer usually makes 3.67% contribution to the EPF and 8.33% towards EPS. The government also makes a contribution towards EPS.&nbsp; This move intended to incentivize employment generation in the country. This year, the government has raised the percentage of its contribution to 12% for all the new employees for the first three years of their employment. This law is applicable on employees with a monthly salary of 15,000 or less. The ways in which these amendments in EPF and Miscellaneous Provisions Act can affect the common population are:

<ul class="banklogin_ul">
	<li>
	More women entering the formal workforce: One of the primary impacts of a reduction in PF deduction in women’s salary is that the women participation in the formal workforce will increase. A survey concluded that a 10% increase in women participation in Indian work force could raise the GDP by 1.4%. So, as a counter impact, the GDP will also rise.
	</li>
	<li>
	Employment Generation: Since the CTC (Cost to Company) will reduce as a result of higher contribution of the government towards EPF of new employees, companies will start hiring more people. This could help in solving the problem of unemployment in the country.
	</li>
</ul>

&nbsp;

If you’re an employee, the revised EPF Deductions takes a chunk off your salary. Here’s what you can do about it and where the EPFO comes in.

Revised EPF Deductions

Technological development in the last few years has been phenomenal. Augmented reality devices, highly intelligent robots, humanoids, CRISPR (gene-editing technology) are not limited to a sci-fi author’s imagination anymore; they’re a massive part of the research and development that has been taking place worldwide. The last decade has seen immense potential in using technology to alleviate human involvement in segments that require high accuracy, reliability and transparency – the financial sector is one of those segments. Researchers believe that blockchain would alter the way financial transactions occur in the world by eliminating the dependency of people on institutions for making these transactions. Blockchains could also solve many pressing problems in the developing world since it is a highly transparent system, and thus, it could help in reducing corruption levels in those countries. However, most of the countries have been slow in adopting the blockchain technology. Many MNCs and global firms have backed the efficiency of this technology in eliminating a go-between in all the transactions which occur globally.

Often, Blockchain Technology is loosely compared with giant companies such as Airbnb and Uber for revolutionizing the way of transaction. The way Airbnb transformed the travel industry and Uber transformed the private transportation system globally, blockchain is deemed to take the finance industry by storm.

Stuart Haber and W. Scott Stornetta invented the first work on a chain of crypto logically linked blocks. Satoshi Nakamoto, the unknown individual (or a group) is credited for the first-ever application of blockchain, known as Bitcoin. Bitcoin is a cryptocurrency used for transactions, and it has a broad customer base. After it was invented, it was promptly accepted by a major population as a digital currency. Even if cryptocurrency has some inherent drawbacks, there are other applications of the blockchain technology which cannot be overlooked. Some of the significant benefits of blockchain include decentralization, simplification, reliability, transparency, cost saving, reduced room for error, traceability, faster transactions and improved data quality. A few ways in which blockchain is revolutionizing the Finance industry are discussed below.

<img src="https://lh6.googleusercontent.com/AHk_23t1S1Hj-De0iuodBIBGzg4qbyulD5ERPJSc8nBPZSc0ke7aT2Zkr3siCDBUlRkeUswez50wsWB_VwiJdKmabrnGBoC32pNXl8ZO3DrjN6E9C-HMDh8YGZk6PcrLjf_lkiNQ" style="height:351px; width:624px" class="img-responsive credit_i_img">

<h2 class="credit_i_h2">Benefits of Blockchain Facility</h2>

<h3 class="credit_i_h3">Reduction in Fraud</h3>

Reports suggest that nearly 45% of financial institutions, like banks and stock exchanges, suffer from economic corruption annually. A majority of these institutions are mediators who operate on a centralized database. A centralized database is highly susceptible to cyber-attacks because a single bug can help the hacker in getting full access to the entire database. A survey by KPMG suggests that about 69% of the companies in India believed that ransomware such as WannaCry poses a significant threat to them. Now, you might wonder how can blockchain technology solve this problem? The answer is that a blockchain system operates through a decentralized database, which makes it nearly invincible to such attacks. Simply put, blockchain is a digitally shared ledger which approves the recording of data and electronic verification of that data over a vast network of systems, with no need of a central ledger at all! The decentralized database ensures low vulnerability and high transparency of data.

<h3 class="credit_i_h3">Claims Processing in the Insurance Sector</h3>

It is common knowledge that even with the most sophisticated technology, the claims procedure is usually lengthy and the contracts can be easily forged or destroyed. Every action in financial institutions is usually bonded with a contract which explicitly defines all the rights and duties of the parties involved. Blockchain smart contract is a computer protocol designed to digitally facilitate, verify, or enforce the negotiation or performance of a contract. As compared to the traditional contracts, blockchain smart contracts are considered to be a better alternative since they lower the cost by eliminating the cost of employing a mediator and are relatively less time-consuming. Through the blockchain tech, the claim amount will be issued quickly to the claimant, thereby eliminating the key issues in the insurance industry such as insurance fraud, contract complexity, human error, inefficient data flow in re-insurance, and slow processing of insurance claims.

Additionally, blockchain tech will improve the traceability of the claims for the insurance company.

<h3 class="credit_i_h3">Compliance?—?Know Your Customer</h3>

KYC is a vital part of compliance requirements for all financial institutions. In India, KYC was introduced by the RBI in December 2005. However, the policy was adopted by all financial institutions quite later. Even if KYC is an important procedure to ensure that the company is aware of the financial dealings and identity of their customers, KYC is known to be an extremely slow and expensive procedure if it operates under a centralized model. Recent reports indicate that the annual expenditure in acquiring and maintaining the financial records of their customers ranges from 60-500 million dollars. Blockchain can substantially reduce the workload and monetary burden on the institutions by providing a digital ID to all its customers, which is accessible at all times to everyone in the network. It also allows fast and low-cost sharing of documents amongst the banks and other financial agencies. The primary benefit of using the blockchain technology is that it will reduce the administrative costs borne by the companies for having compliance departments. It also supports automated account opening while maintaining a high level of data privacy.

<img src="https://lh4.googleusercontent.com/EFn8iOl5H3gHPdHCR-FeWURrzBsRQajd7JsnRcboyN6Jv74AEgelg_ZggDkPD1bAldu5X-H78voox2CpCeBX-uTlbq8nyNanpZjyevz4hciYs3G_dWDMsAjgE2euQ5P8_rw2W_eV" style="height:375px; width:624px" class="img-responsive credit_i_img">

<h3 class="credit_i_h3">Simplify Trading Platforms</h3>

The global trading sector is huge – it migrates tonnes of money on a daily basis. However, most of these trading institutions are costly, slow and prone to human error. Blockchain technology improves the speed and reduces friction during transfer considerably. The Australian Securities Exchange (ASE) and NASDAQ are now depending on Blockchain solutions for enhancing efficiency and reducing operational costs.

<h3 class="credit_i_h3">Payments will be Easier</h3>

Blockchain use could transform the payment process remarkably. Presently, the payment processing system has a large number of intermediaries. Blockchain drops all the mediators in the system; the absence of third-party saves both time and money and maintains a high level of accuracy and transparency.

<h3 class="credit_i_h3">Asset Management</h3>

The conservative trade processes within asset management can be cumbersome and involve high risk while matching and reconciling. Asset management becomes more complex with cross-border transactions and non-standard financial instruments such as loans. In the process, all the parties involved in the life cycle of trade (intermediaries such as broker-dealers, clearing and settlement departments) must keep a copy of their transaction record. This procedure has inherent inefficiencies, which can be eliminated through blockchain technology. The trading procedure can also be streamlined by using this technology. If the companies adopt blockchain to automate the trading system, then each party will have access to all the data, which will generate a faster processing cycle, thereby saving cost on the infrastructure and traditional methods of effective data management.

To encapsulate these use-cases for blockchain technology, we can say that,

The world has always moved toward simpler solutions. While it is treading into a hyper-digitized environment, blockchain technology can facilitate a less complicated, more efficient and more transparent way of dealing with assets, property and money.

&nbsp;

How can Blockchain revolutionize the finance industry? Read this article by mymoneykarma to know about the benefits of Blockchain.

How Blockchain Can Revolutionize the Finance Industry 

Blockchain is a revolutionary technology that aims at improving the way we make monetary and non-monetary transactions. Central Banks, multinational companies and governments throughout the world have been experimenting with this technology to increase the efficiency and productivity of their operations.

The applications of blockchain technology aren’t restricted to the telcos; this technology has spread its wings to cover almost every sector under the sun – finance &amp; banking, IT, AI to name a few. Almost every industry is reinventing itself to adopt this lucrative technology that has broad applications, offers a high degree of transparency and functions effortlessly. One of the earliest adoptions of blockchain technology was the invention of Bitcoin. In this article, we’ll try analyzing how the blockchain technology can revolutionize the banking system, and why Bitcoin is the most searched word in Google for the year 2018.

<img src="https://lh5.googleusercontent.com/t2biXZmJZGRJ_d70PYCZaUavmjzsomM4_pLf_7VmagNI3Wi6I7axez2tk5Do6iMTboigQSCk29lAIOUV74oU3oUxbpq3Ai6V2YP7On6mxGL8VfUKhQ5Q92hVUnLugqJQh1bZ7tHL" style="height:351px; width:624px" class="img-responsive credit_i_img">

<h2 class="credit_i_h2">How is Blockchain Beneficial for the Banking System?</h2>

In earlier days, blockchain technology was received with a high level of skepticism. But the perspective of financial organizations has changed drastically over the past few years. Companies that have adopted the blockchain technology have raised 240 million USD worth venture capital. A World Economic Forum report released in 2015 stated that around 10% of the world GDP would be stored in blockchain by the year 2045 due to its highly economic perspectives. Let’s discuss the significant blockchain trends in the banking and finance industry.

<h3 class="credit_i_h3">A Foolproof Way of Storing Customer Data</h3>

Anyone from the banking sector can tell that the verification of customers is a vital component of this sector. If the company messes up with the identities of its customers, they lose trust in the bank. Banks are responsible for ensuring that the identity of their customers is verified and protected. A study by Reuters suggests that some companies spend around 500 million dollars annually on KYC and Customer Due Diligence. The banks can also incur penalties for non-compliance or discrepancies in data.

The era of blockchain revolution offered a digital tool to the banking system for overcoming the demands and liability problems. To avoid the high cost, many banks are trying to implement a digitally shared system that records and continually updates user’s identities and other data. Many investors believe that Blockchain Technology in the banking system can provide a solution for protecting and updating the array of customer data economically through cryptographic mechanisms. The massive amount of data can be moved to the new system with the help of KYC and anti-money laundering algorithms. To save costs and get faster output, many startups in the banking &amp; finance sectors have aligned all their customer data to follow the blockchain technology.

<img src="https://lh3.googleusercontent.com/knjMhixdOcIppQiYIsxqCHGtU4VxniqWUpm_jbrbvlW7Omw-8pGu3UFaJZd-Drm2Zc_nWJ_xuNKjk-DzLDv226bP5hQ1LkE3fnmb1pbhjOu6z6EwNOoVPwoxgJ2LkIvkI9rPvX8G" style="height:416px; width:624px" class="img-responsive credit_i_img">

<h3 class="credit_i_h3">Streamlined Payments</h3>

For the last few years, central banks across the globe have been experiencing great complexity in the payments infrastructure due to an infestation of a large volume of digital currency (such as Bitcoin and Ethereum) in the system. A report from Bank of International Settlements, known as Central Bank Digital Currencies, raised many eyebrows. The report ponders over some basic concerns linked with blockchain, such as effects of central banks replacing real currency with digital currency, the advantages and disadvantages of adopting blockchain technology, etc. With central banks from various countries testing the blockchain technology and considering infusing the global payments system with digital currencies, we can predict that blockchain technology would be a large portion of global payment system in the coming years.

Commercial banks aren’t far behind in experimenting with the blockchain technology either. There’s a long list of tech companies that are working to adopt this technology into their operations. Forbes gave a list of large companies that are exploring blockchain network.&nbsp; This list consists of biggies such as IBM, Infosys, American Express, Wells Fargo, JP Morgan, etc. Union Bank of Switzerland developed its own digital currency known as ‘utility settlement coin’ that will be used in the financial market.

The inter-bank payment system, SWIFT, handles the cross-border payments. US Treasury states that SWIFT manages roughly 14.5 million USD every day. The world’s leading interbank electronic payments messaging system has been experimenting with the blockchain technology for many years and has achieved positive results. With the global financial market becoming more conducive to blockchain technology, it’s just a matter of time until you make the payments with digital currency.

<h3 class="credit_i_h3">A Use-Case of Trade Finance</h3>

The area of trade finance is based on a large volume of paperwork as well. Large volume of paperwork implies slow processing and high expenses. Financiers and technology experts believe that blockchain technology is an obvious solution to this problem. The vast array of data handled by finance companies can be handled only through a highly competent technology which makes the transactions faster and more transparent.

<img src="https://lh4.googleusercontent.com/_xxS1pBMJBBB3muElJF1NnhQVMzKF9Bna_tRfoG6ezJYtXhPI3Z4kXdcaBkJSq-vLw6S273oSF1hjCCd6xVyM0SGAeFePlWXC-XTJZKst8NjL9knkaUt_GnTYa80pdMdJRNddLDb" style="height:416px; width:624px" class="img-responsive credit_i_img">

<h3 class="credit_i_h3">Clearing and Settlement Operations</h3>

The clearing and settlement operations in banks can be highly expensive and complicated. Blockchain technology can streamline the data and reduce costs for the banks and other financial institutions. It was estimated that investment banks could save up roughly 10 billion USD by implementing blockchain technology.&nbsp;&nbsp;

Efficiency in the banking system would enhance manifold with the adoption of blockchain technology. Companies like Australian Securities Exchange have moved their post-trading settlement entirely to the blockchain network. The winds of change have hit the money markets already. Soon enough, we’ll be making payments and transactions through blockchain networks.

<h2 class="credit_i_h2">Ways in Which Blockchain Could Help the Banks</h2>

The major ways in which blockchain technology could help the banking system are:

<ul class="banklogin_ul">
	<li>
	Process automation
	</li>
	<li>
	Digitization of the banking system
	</li>
	<li>
	Decentralization of banking information
	</li>
	<li>
	Intra-bank settlements
	</li>
	<li>
	Internal transaction messaging
	</li>
	<li>
	Product data structure
	</li>
	<li>
	Reconciliation &amp; Synchronization
	</li>
	<li>
	Safer data storing
	</li>
	<li>
	Auditing
	</li>
</ul>

The major ways in which blockchain network could be used in managing customer data for banks are:

<ul class="banklogin_ul">
	<li>
	Reduction in Paperwork
	</li>
	<li>
	Simplified operations and settlement
	</li>
	<li>
	Faster transaction handling
	</li>
	<li>
	More efficient Customer data management
	</li>
	<li>
	Reduction in Fraud
	</li>
	<li>
	Generation of Smart Contracts
	</li>
</ul>

To conclude, we can say that:

There are inherent inefficiencies and major drawbacks in the present financial ecosystem. Blockchain technology aims at providing a solution to over-complicated payment systems, tedious book-keeping, manual recording and managing customer data, etc. Overall, this technology can offer simplistic and efficient solutions to the problems that the global banking systems and financial markets are facing.

&nbsp;

Can the Blockchain Technology really help companies in the finance and banking sectors? Read this article by mymoneykarma to find out.

Could Blockchain Technology Help the Banks?

<a href="https://www.mymoneykarma.com/epfo.html" target="_blank">Employees’ Provident Fund Organisation or EPFO</a> has made it easier for people to link their PAN and<a href="https://www.mymoneykarma.com/aadhaar-card/link-aadhaar-with-epf-account.html#" target="_blank"> Aadhar details with your EPF account</a>. Updating your KYC details is crucial to claim tax deductions. To process those claims conveniently, you must update your KYC details with your UAN (Universal Account Number). After linking your Aadhaar and PAN with EPF account, you’ll need to verify your Aadhaar and PAN&nbsp; digitally at the EPF UAN website. According to the EPF UAN website, it is mandatory to digitally verify your KYC documents, such as Aadhaar and PAN details, for availing EPF services. In this article, we’ll discuss the procedure of verifying Aadhaar and PAN details in the official EPF UAN website. We’ll also be reviewing the online verification procedure for KYC.

<img alt="Verify Aadhaar &amp; PAN at EPFO and UAN Website" src="https://lh5.googleusercontent.com/5kUemRDvQRofclR7u6B5mo0ul4raEN5sFO73Q91aKgMq3ir4YipjijPbdCmLK7-jw8n-i3sR6iO7z9EGwyanS3TXfZsjUWkglQSuwbTmvTATp_IS11VUjBdmwi6FCC45kBYgdves" style="height:308px; width:624px" class="img-responsive credit_i_img">

<h2 class="credit_i_h2">How Can You Verify Aadhaar &amp; PAN?</h2>

You can verify your Aadhar and PAN at the official UAN website. Follow these steps to complete the verification.

<ul class="banklogin_ul">
	<li>
	Visit the official website of UAN (Unified Member Portal).
	</li>
	<li>
	You’ll be required to provide your UAN Username and Password in the next step.
	</li>
	<li>
	After providing the ID and password, enter the Captcha.
	</li>
	<li>
	Click on the ‘Sign In’ link.
	</li>
	<li>
	After your credentials have been verified, you’ll be redirected to your profile, UAN Card details and Account Settings section.
	</li>
	<li>
	Under the Member Profile Section, you will be able to see the section on PAN and Aadhar.
	</li>
	<li>
	If your PAN and Aadhar aren’t verified, then the Aadhar and PAN will be highlighted with Red colour (which means that the&nbsp; text is unverified).
	</li>
	<li>
	Beside the highlighted text, there’s a link to verify the Aadhar and PAN.
	</li>
</ul>

Verify Your Aadhar Number

<ul class="banklogin_ul">
	<li>
	For verifying your Aadhar Number, you should click on the ‘Verify’ link alongside the Aadhar Section.
	</li>
	<li>
	The system will verify your Aadhar Details from the<a href="https://www.mymoneykarma.com/aadhaar-card/uidai.html" target="_blank"> UIDAI</a> database now.
	</li>
	<li>
	After successful verification, the UIDAI authentication status will be updated to ‘Verified with UIDAI.’
	</li>
	<li>
	If there’s a mismatch in the name, DOB, gender or any other details, the page will display a warning message. You can go back and correct them if there are any discrepancies.
	</li>
</ul>

Verify PAN

<ul class="banklogin_ul">
	<li>
	For verifying<a href="https://www.mymoneykarma.com/pan/pan-card.html" target="_blank"> PAN</a>, click on the ‘Verify’ button alongside ‘Unverified Text’ in the PAN Section.
	</li>
	<li>
	After this, the system will verify your PAN number with the Income-tax database.
	</li>
	<li>
	After successful verification, a dialogue box will display ‘PAN Verification Successful.’
	</li>
	<li>
	In the next step, the status of PAN will change from ‘Unverified’ to ‘Verified.’
	</li>
</ul>

<h3 class="credit_i_h3">Online KYC Status Verification</h3>

KYC refers to Know Your Customer. This is the process adopted by companies, organizations and government agencies to acquire information about the customers or the registered users.

<h3 class="credit_i_h3">How to Check the Status of Online Verification of KYC</h3>

<ul class="banklogin_ul">
	<li>
	For checking the verification status of KYC online, you’ll be required to log in to the<a href="https://unifiedportal-mem.epfindia.gov.in/memberinterface/" target="_blank"> UAN Portal</a> and navigate to ‘Manage’.
	</li>
	<li>
	Under ‘Manage’, select ‘KYC.’
	</li>
	<li>
	In the KYC Section, you’ll find information linked with KYC.
	</li>
	<li>
	In the same section, you'll find a section for KYC pending for approval and another for digitally approved KYC.
	</li>
	<li>
	The final column under the ‘Digitally Approved KYC’ section is ‘Online Verification Status.’
	</li>
	<li>
	After you have completed the verification process, the PAN and Aadhar status will appear as ‘Verified.’
	</li>
	<li>
	You must get the following documents approved from respective authorities for supporting your KYC details:
	</li>
</ul>

<ol class="homeloan_Faqs_ul_1">
	<li>
	Aadhar
	</li>
	<li>
	Bank Details
	</li>
	<li>
	PAN
	</li>
</ol>

<h2 class="credit_i_h2">What Can You Do If Any Information is Missing?</h2>

<ul class="banklogin_ul">
	<li>
	If you think that any information linked with your PAN/Aadhar is missing, you can add the same using the ‘Add KYC’ Section. After adding the missing details, you can click on the ‘Save’ link.
	</li>
	<li>
	After saving all the modifications, you’ll have to wait for your employer to approve the KYC details that you have provided.
	</li>
	<li>
	After getting the approval from your employer, all the details will appear in the ‘Digitally Approved KYC’ section.
	</li>
</ul>

<a href="https://www.mymoneykarma.com/aadhaar-card/pan-card-link-aadhar-card.html" target="_blank">Linking your PAN and Aadhaar</a> details with your UAN account is very important since it helps you in claiming tax deductions and could help in keeping the details linked with your EPF account streamlined.

&nbsp;

In this article, mymoneykarma tells you how to verify the Aadhaar & PAN at the EPFO UAN Website, and why the UDAI is important.

Verify Aadhaar & PAN on the EPFO UAN Website

Generation of e-way bills was made compulsory by the government from 1st of April, 2018. But, what exactly is an e-way bill, and how will it affect the taxpayers? To understand the effects of the e-way bill, we need to learn what it means for traders and the logistics sector.

<h2 class="credit_i_h2">What is e-way Bill?</h2>

<a href="https://www.mymoneykarma.com/info-tax/eway-bill.html" target="_blank">E-Way Bil</a>l or Electronic Way Bill is a unique document generated electronically for the consignment of goods to a different place. e-way bill was proposed to curb tax evasion in the country. Sadly, apart from the first optimistic cry around the idea, the logistics and technical glitches have turned the e-way bill into a nightmare for the taxpayers.

The major repercussions of the e-way bill are experienced by the logistics industry, FMCG sector and e-commerce operators.

<h2 class="credit_i_h2">Updates</h2>

<h3 class="credit_i_h3">E-Way Bill Blocking</h3>

Rules 138E (a) and (b) of the 2017 CGST Rules dictate that if the taxpayer does not file Form GSTR-3B returns/Form GST CMP-08 statement for two or more tax periods, EWB (e-way bill) generation will be restricted for the taxpayer. EWB generation blocking will be applicable to all taxpayers, irrespective of AATO (Aggregate Annual Turnover), and will be allowed to generate EWB only on filing the pending forms and statements.

<h3 class="credit_i_h3">VAHAN-e-Way Bill Integration</h3>

The e-way bill portal will get the vehicle registration number validated now, as it has been linked to the VAHAN system.

<h2 class="credit_i_h2">Why Is It Important to Generate an E-Way Bill?</h2>

One of the main reasons in favor of Goods &amp; Services Tax is its ability to unify the market and avoid the inter-state taxation system that was confusing and riddled with multiple clauses and sub-clauses. A report released by the Ministry of Road Transport and Highways suggests that a conventional truck in India spends 20% of its commuting time in the inter-state checkpoints. In states such as Rajasthan and Maharashtra, the average waiting time is usually 20-30 minutes, and it rises up to two hours in states like Bihar and Jharkhand. GST and e-way bills were both introduced by the government to avoid the transit delays and rampant tax evasion caused under the VAT regime.

The GST regime required each e-pay bill generated by a buyer of goods to be updated automatically in the Outward Sales Return (GSTR 1) of the supplier, which leaves a negligible scope for tax evasions under this system. In the former tax regime, tax officials had to cross-check the tax returns filed by the suppliers manually for verifying whether the consignments fall under the tax net or not.

Also, a single e-way document for the movement of goods throughout the country could save tons of paperwork and sidestep various inter-state clearances for buyers, sellers and transporters. In the previous tax regime, each state framed its own rules for the movement of goods from and to it.

<h3 class="credit_i_h3">When Can Someone File an e-way bill?</h3>

The primary requirements for generating an e-way bill under the current GST regime is that the consignment must be getting transferred through an interstate or intrastate channel, and it must have a value of more than INR 50,000. The e-way bill has replaced the way bill, which existed during the VAT regime and was used for the consignment of commodities.

<h3 class="credit_i_h3">Who Can Generate an e-way Bill?</h3>

Three kinds of individuals can generate an e-way bill: a GST-registered person, a non-registered person and a transporter of goods.

A registered person can generate an e-way bill when he/she is moving goods that have a value greater than INR 50,000. It is applicable only when the products are being transferred to or from the possession of a GST registered person. The registered person has the choice to not generate the e-way bill if the value of the goods being transported is less than INR 50,000. Similarly, an unregistered person is also required to generate an e-way bill when the value of goods transported exceeds INR 50,000. When a GST-registered person is receiving goods from an unregistered person, then they’re responsible for ensuring that the supplier meets all the compliances. Apart from GST-registered and unregistered taxpayers, transporters who carry goods through any form of transportation, including planes, road, rails, etc., are required to generate an e-way bill.

<h3 class="credit_i_h3">Which Sectors Will Be Affected by the GST E-Way Bill?</h3>

Logistics Sector

One of the main accomplishments of the implementation of the e-way bill is the effective dissolution of state borders. The time wasted by the transporters at the state borders for validating the documents while transporting goods from one state to another is minimized through this process.

Reduced Documentation

A substantial reduction in documentation can benefit the logistics industry immensely. Earlier, the transporters had to furnish documents in each state while transporting goods from point A to point B. Under the GST e-way bill, a single document is adequate for carrying a consignment through multiple states.

For instance, while moving goods from Delhi to Tamil Nadu, the taxpayers need to generate a single e-way bill that could help them in moving through several states that they need to cross before reaching the destination – Delhi.

Faster Movement

Adopting the e-way bill would result in a smoother flow of goods since the halts (such as interstate and national checkpoints) are eliminated from the route. Transport vehicles can be detained once in a state only if the authorities suspect tax evasion. When a vehicle is held for more than half an hour, it must be reported to the authorities.

Reduced Costs of Transportation

Due to smoother movement of vehicles through the country, the logistics industry will experience a substantial reduction in fuel and other transportation-linked costs.

Consolidated Warehouses

Before the advent of the GST regime,&nbsp; companies had warehouses in each state to avoid paying additional tax after their goods crossed the state borders. GST e-way enabled the flow of goods more freely, which means that the companies can build warehouses in strategic areas, which will ultimately reduce the overall cost.

IT Infrastructure

Since the e-way bill system is driven by technology, small and medium scale transporters might not have the IT infrastructure to generate the e-way bills. There could be challenges in implementing the GST e-way bill in rural areas and tier three cities.

FMCG Sector

For the GST e-way bill to be appropriately executed in the FMCG sector, the performance of the supply chain is very critical. Indian FMCG sector is characterized by a sophisticated distribution network and extremely high competition, which requires the businesses to work on improving and innovating the supply chain continually.

<ul class="banklogin_ul">
	<li>
	With the introduction of GST and e-way bill, the complicated networks involved in the supply chains have been harmonized. The businesses will be experiencing an improvement in the management of these supply chains.
	</li>
	<li>
	Rolling out of the e-way bill could also bring transparency and efficiency to the movement of contingencies across the states
	</li>
	<li>
	Organized sectors like FMCG, pharmaceutical industry and manufacturing sector would achieve a technological upgrade after gaining access to the fast and easy e-way bill generation facility
	</li>
</ul>

E-Commerce Operators

After the introduction of e-way bills, several e-commerce companies have partnered with the logistic service providers for meeting their business needs; some of the companies have even developed in-house logistics capabilities. The in-house logistics players drive almost half of the logistics market, and the remaining half is managed by third-party logistics service providers that include India Post, e-commerce-centric logistics providers and traditional logistics service providing companies.

<h2 class="credit_i_h2">To Sum Up</h2>

e-way bill of the GST regime is an excellent way to mitigate the logistic costs, and it gives a solution to the complicated documentation requirements in the previous tax regime. However, for the businesses to benefit from this new tax rule, it has to be executed congruously by the state and central government.

&nbsp;

In this era of GST regime, there is a new development: the GST E-Way Bill. Why is it important for tax-payers? mymoneykarma lets you know.

How Will the Changes in GST E-Way Bill Impact the Economy?

The word “blockchain” is doing the rounds these days. How well do we understand it? Is it a cryptocurrency? Or a programming language? Or something to do with Artificial Intelligence?

Nope!

Then, what exactly is blockchain?

Well, it is basically a new technology. It is like a digital ledger that records transactions. However, these transactions are not stored in a central database or by an individual entity – the data is stored in a sequence of blocks that are chained together and distributed among users. These blocks can store not only economic data but also ANY kind of information. The data once stored in a blockchain cannot be changed. Hence, the records are incorruptible and de-centralized, making it highly secure.

While many organizations are slowly embracing the blockchain technology, most banks and financial organizations still rely on the traditional system of centralized data storage. However, history has vividly demonstrated that such a system can be easily tampered with – servers have been hacked, data breaches have been rampant, resulting in devastating financial fiascos many a times. In such a scenario, doesn’t blockchain technology look like a great alternative? Will it take over the traditional system?

“The question is not whether network business models supported by blockchain technology will disrupt these organizations, but when.”

Internet has touched 4.021 billion users in 2018. The benefits of digitization engulf a little less than half of the global population now. In a fast-paced digitized world, it is impossible for the financial world to remain unaffected. Tech savvy customers no longer wish their banks to have a lavish building with multiple counters; they prefer convenience over anything else. This is one of the major causes of disruption in the financial as well the logistics market. The survival of a financial institution now depends upon how well they adapt to the dynamically evolving needs of their customers.

<img src="https://lh6.googleusercontent.com/eB1m6kFi2qzvsSZkXAo6C0s7cZveXfznaafKAqrH0sOXe19YLDeh-s95uCqlazAsbRV41DlVaw_rjmmSlG-jgIzSq7YtuezC7pkzwghSOz9_9zHKy4TVgEKrk06V_tYldfCbHcif" style="height:468px; width:624px" class="img-responsive credit_i_img">

Blockchain technology lies in the core of this digital disruption. Blockchain, a distributor ledger based technology which aims at providing streamlined, transparent and quick financial solutions, will be revolutionizing the way banks function in the upcoming decade. Authors from the Harvard Business Review believe that blockchain will do the same to the financial system what the internet did to media. Like the internet, blockchain technology is designed to be a decentralized system of transactions. For a technology which was developed at least three decades ago, the banking sector has been slow in adopting it. This is primarily because the financial markets throughout the world overlooked the impact of digitization on the way their customers transact. It’s a matter of time when people will be using this technology to make a majority of their transactions due to the high utility and convenience that it offers. Let’s look at the reasons why banks should embrace the blockchain technology.

<h3 class="credit_i_h3">Combating Fraud and Money Laundering</h3>

Blockchain technology could give a solution to the increasingly stringent Anti-Money Laundering (AML) laws and Enterprise Fraud Management (EFM) requirements emerging for the financial services industry.

According to a report published by Forrester Research, blockchain technology is ideal for keeping the identification of its customers private since it is highly secure and immutable.

Last year, the cost of retail fraud amounted to INR 18,170 crores. On top of that, the cost of identifying and countering money laundering is rising , and&nbsp; so is the penalties imposed on the firms that are non-complaint to such requirements. Blockchain technology offers an immutable and easily auditable electronic record hence guaranteeing that the transaction records bear the identifiers of previous transactions. This allows the authorized investigators to track down the transactions which happened in the past quickly. Implementation of the blockchain technology could also challenge the monopoly of the credit rating agencies, which are the only institutions that can verify the identity of the customers.

<h3 class="credit_i_h3">Granting Loans Made Easy</h3>

Presently, banks use inefficient and outdated techniques to share information linked with a customer for offering them loans. Blockchain grants a more streamlined and faster approach of identifying the credentials of the customers that could help the banks in granting (or rejecting) loans immediately.

<h3 class="credit_i_h3">Improving the KYC System</h3>

The logistics costs of managing the KYC system is known to all. Reuters suggests that major financial institutions spend up to 500 USD on KYC compliance. This adds up to the anti-laundering costs that we discussed above. Rather than centrally storing the customer information on a device, cloud or the government/bank’s repositories, blockchain decentralizes the entire system for providing the information across the chain.

If the financial institutions adopt the blockchain technology, whenever a bank wants to acquire your identity data, you’ll be required to provide your consent by giving your private key to the institution which needs your data. This way, even if your identification data was managed and stored by another party, you have control over its distribution. It could keep you safe from frauds and identity theft.

<h3 class="credit_i_h3">Beneficial for Trade Finance</h3>

The domain of trade finance requires a massive volume of paperwork. A large volume of paperwork impedes the processing and incurs high costs to the companies involved in trade. Financiers and technology experts maintain that blockchain technology is an apparent solution to this problem. The ever-increasing data fed into the finance industry can be handled only through a highly competent technology that makes transactions faster and more efficient, which is made possible by the blockchain technology.

<img src="https://lh6.googleusercontent.com/BiIksmWxq9hYWEPaVRJETn6ppmnZpRgq06UoBLr_YpWcowZ4OtgXy5YUKjYU_Z-Fxq8uafn4krP5SIWZjOtgmZf9Q4rBcwxb9EyclFsEnMiCmfBajm3vZRxUF8jbfTckka3abUlO" style="height:416px; width:624px" class="img-responsive credit_i_img">

<h3 class="credit_i_h3">When Do Global Financial Companies Think Blockchain Will be Commercially Adopted?</h3>

Reports by Finacle, a banking product developed by Infosys, suggest that most of the financial services leaders believe that blockchain will be commercially adopted by banks by 2020. Let’s take a look at this graph to understand this.

<h3 class="credit_i_h3">Ways in Which Blockchain Could Help the Banks</h3>

The major ways in which blockchain technology could help the banking system are:

<ul class="banklogin_ul">
	<li>
	Process automation
	</li>
	<li>
	Digitization of the banking system
	</li>
	<li>
	Decentralization of banking information
	</li>
	<li>
	Intra-bank settlements
	</li>
	<li>
	Internal transaction messaging
	</li>
	<li>
	Product data structure
	</li>
	<li>
	Reconciliation &amp; Synchronization
	</li>
	<li>
	Safer data storing
	</li>
	<li>
	Auditing
	</li>
</ul>

The major ways in which blockchain network could be used in managing customer data for banks are:

<ul class="banklogin_ul">
	<li>
	Reduction in paperwork
	</li>
	<li>
	Simplified operations and settlement
	</li>
	<li>
	Faster transaction handling
	</li>
	<li>
	More efficient customer data management
	</li>
	<li>
	Reduction in fraud
	</li>
	<li>
	Generation of Smart Contracts
	</li>
</ul>

<h2 class="credit_i_h2">To Sum Up</h2>

Technology has upended sectors before; to avoid such a situation, the global financial system has to adapt to the influx of high-end technology. Blockchain is the solution to the indivisibilities and impediments faced by modern financial institutions. Hence, it is beneficial for banks to embrace it.

&nbsp;

Blockchain technology is gaining ground in almost every field. However, is it relevant for the banks and the trade finance sector? mymoneykarma investigates.

Why Should Banks Embrace Blockchain Technology?

There have been several important developments and improvements on the 2020-2021 Union Budget. In this blog, you’ll see some the highlights and the main points of the budget. 
 
Now, we know that you want to see the new income tax slabs, but wait for it my friend. We’ll tell you all about it, but let's get started with the basics…

<h2 class="credit_i_h2">Prominent Themes of the Budget</h2>

The main theme of the 2020-2021 Union budget is Ease of Living, supported by governance and the financial sector.

Ease of Living branches into:

<ol class="homeloan_Faqs_ul_1">
	<li>
	Inspirational India: 
	This includes 
	i) Agriculture, Irrigation and Rural Development 
	ii) Wellness, Water and Sanitation 
	iii) Education and Skills.
	</li>
	<li>
	Economic Development: 
	This includes 
	i) Industry, commerce and investment 
	ii) Infrastructure 
	iii) New Economy.
	</li>
	<li>
	Caring Society: 
	This includes 
	i) Women &amp; Child, Social Welfare 
	ii) Culture and Tourism 
	iii) Environment and Climate Change.
	</li>
</ol>

<img alt="The main theme of the 2020-2021 Union budget is Ease of Living, supported by governance and the financial sector. Ease of Living branches into: Inspirational India: This includes i) Agriculture, Irrigation and Rural Development ii) Wellness, Water and Sanitation iii) Education and Skills. Economic Development: This includes i) Industry, commerce and investment ii) Infrastructure iii) New Economy. Caring Society: This includes i) Women &amp; Child, Social Welfare ii) Culture and Tourism iii) Environment and Climate Change. budget 2020, budget 2020 India, union budget 2020, budget 2020 highlights, budgeting, 2020 budget" src="https://mmk-s3-cms.s3.amazonaws.com/1580800136930.jpeg" class="img-responsive credit_i_img">Now, let us come to the main points of the 2020 Annual Budget pertaining to <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/" target="_blank">personal finance</a>.

Here are the key highlights of Union Budget 2020-21

<h3 class="credit_i_h3">On the Tax Front</h3>

The Finance Minister in the budget speech said that the new tax regime is “lowest, simplest, and smoothest.” 
It boasts 100% tax exemption on Sovereign Wealth Funds' Infra Investment, and concession of 5% on withholding tax extended to municipal bonds.

On DDT or Dividend Distribution Tax

There is good news for companies. From now on, they do not need to pay the DDT or Dividend Distribution Tax. However, the dividend shall only be taxed on the dividend recipients.

Good news for taxpayers- <a href="https://www.mymoneykarma.com/info-tax/income-tax.html" target="_blank">Income tax slabs 2020</a> 
 
<img alt="0 to 2.5 lakh - exempted Rs. 2.5 lakh to Rs. 5 lakh - 5% Rs. 5 lakh to Rs. 7.5 lakh - 10% (20% earlier) Rs. 7.5 lakh to Rs. 10 lakh - 15% (20% earlier) Rs. 10 lakh to Rs. 12.5 lakh - 20% (30% earlier) Rs. 12.5 lakh to Rs. 15 lakh - 25% (30% earlier) There is no change in tax rates above incomes of Rs. 15 lakh. It is still at 30%. income tax slabs 2020, budget 2020, budget 2020 India, union budget 2020, budget 2020 highlights, budgeting, 2020 budget" src="https://mmk-s3-cms.s3.amazonaws.com/1580800216483.jpeg" class="img-responsive credit_i_img">

The Indian Finance Minister Nirmala Sitharaman says that the personal income tax is at an all-time low.&nbsp;

Income tax rates shall be reduced significantly for those who do not take relief measures and tax exemptions.

<h2 class="credit_i_h2">Budget 2020 - Price Increase and Decrease</h2>

Thanks to changes in customs and excise duties, the price of some items have gone up, while the price of others have gone down.

Let’s take a look at what they are:

Price goes Up

<ol class="homeloan_Faqs_ul_1">
	<li>
	Cigarettes, hookah, and other tobacco products
	</li>
	<li>
	Food items like cooking oil, ghee, butter, cheese, and chewing gum
	</li>
	<li>
	Tableware, kitchenware
	</li>
	<li>
	Imported footwear
	</li>
	<li>
	Footwear parts
	</li>
	<li>
	Furniture goods
	</li>
	<li>
	Household electrical appliances
	</li>
	<li>
	Water filters, padlocks, brooms, hand sieves, combs
	</li>
	<li>
	Imported toys
	</li>
	<li>
	Mobile phone chargers, power adaptors, fingerprint displays, earphones and headphones
	</li>
	<li>
	Portable medical devices
	</li>
</ol>

 
Price goes Down

<ol class="homeloan_Faqs_ul_1">
	<li>
	Multiple food products
	</li>
	<li>
	Some electronic items
	</li>
	<li>
	Electric vehicles
	</li>
	<li>
	Sports goods
	</li>
	<li>
	Newsprint
	</li>
</ol>

<h2 class="credit_i_h2">Welcome News for the Fintech Industry</h2>

The growing Fintech industry in India sees the new budget in a positive light, as it gives a holistic growth projection for this industry, which is an extension of the scheme for doubling infra boost, farmer’s income, and more.

The government has also proposed Rs. 27,300 crores for the development of the country’s commerce and industry.

Hon'ble&nbsp;FM Nirmala Sitharaman added that public institutions at the Gram Panchayat level shall be provided with Fibre digital connectivity. This way, more than 1,00,000 gram panchayats will be linked by Fibre through BharatNet. Rs. 6000 crore is already allocated for this task. Additionally, a fund of Rs. 8000 crore is allocated to the National Mission on Quantum Computing and Technology for various projects, like setting up Data Centre Parks.

“Technology that has now a greater significance in almost all the sectors was also a pivotal part of Union Budget announcements. The Union Budget 2020 has shown a ray of light for the Fintech sector, with FM Nirmala Sitharaman stating that India will embrace a shared economy with aggregators displacing regular business.” 
-&nbsp;commented the owner of a well-known Fintech firm in India on the the Indian Budget - 
“The importance of Analytics, IoT, and AI has been recognized in this budget, as they are set to change the world. A policy has been announced to set-up data centre parks all through the country.”

To see the highlights of the 2020 Union budget in infographics, click <a href="https://www.indiabudget.gov.in/doc/bh1.pdf" target="_blank">here</a>.

For all the related documents, click <a href="https://www.indiabudget.gov.in/" target="_blank">here</a>.

&nbsp;

Union Budget 2020 has brought in several changes and reforms to the finances of India, especially in taxes (new tax slabs) and business. mymoneykarma gives a brief overview.

Income Tax Slabs 2020 - Budget 2020 Highlights

Technology can be a boon and a curse, this is a saying we had always known. Some of us may even have experienced the harmful effects of technology. However, it took the Covid-19 to remind us how far these harmful effects can be.

Our world is connected by shipping lines, airlines and more. It takes hours for one to go from one corner of the world to the other. This is clearly a boon as it boosts trade, cultural exchange, global economy and of course, globalization. However, as the Covid-19 has shown us, all these benefits can turn into a curse. Today, most of the world is on lockdown mode as we battle to contain the virus. The economy is evidently on a downward spiral, while the loss of human life is only rising each day.

<img alt="Coronovirus : Indian Economy is in slowdown in lockdown" src="https://mmk-s3-cms.s3.amazonaws.com/1587983190002.jpeg" style="height:640px; width:960px" class="img-responsive credit_i_img">

The cost to the economy is staggering. The stronger globalization is, the stronger the spread of viruses like this is as well. The disease at hand has spread because of urbanization, international trade and mass migration. This has disrupted the global economy, basic social functions, and the production and supply of necessary items.

In this article, we are going to talk about how the coronavirus that has laid a siege on the world. We shall also talk about how you can take care of your loved ones in these trying circumstances.

<h2 class="credit_i_h2">The Coronavirus</h2>

The very first thing we need to know is that Coronavirus, as is being touted by the meda, is not the one and only strain. That means that there are many types of Coronaviruses, some of which have been dangerous enough to cause SARS (Severe Acute Respiratory Syndrome), the Spanish Flu of 1918 and more. Illnesses caused by these viruses have a few things in common: they lead to symptoms like kidney failure, breathing difficulties, pneumonia and even death.&nbsp;

For Covid-19, which we are facing today, there is no vaccine yet. It can take years to make one. In the meantime, doctors can only treat the symptoms, not the whole disease.

The CoronaVirus will go down in history as one that broke between 2019-2020. WHO declared it as a pandemic on March 11, 2020. By this time, there were more than 7711 confirmed cases and more than 12,167 suspected cases in China.&nbsp;

Now, there is something alarming about Covid-19.

It’s mortality rate is 3%.

Sounds small?

Compare it with the Spanish Flu of the previous century where the rate was 0.1%. On the upside, it is less deadly than the SARS. The death rate with SARS was 10%. However, Covid also spreads far more quickly than the SARS. There can be several reasons for this fast dissemination,one of which is a longer incubation period 14 days. The second reason is that people affected do not show symptoms for days, leading to more people being affected. It has also become evident that the elderly are those more susceptible to the malignant nature of the virus.

As for the impact on the global economy, let’s start with China, where it broke out first. In China, its effect was immediate. The global giant Apple closed its last store in the country on February 1, 2020.

HKHS Index (Hong Kong Hang Seng) has dropped 9% since January 2020. The price of Brent oil fell to as less as $20 a barrel on March 9, 2020. This is an alarming 71% drop from its price in January, $70.25.

China’s industry is already devastated, The country’s exports fell by 17.2%. Its auto sales was the most hit, and is down by 80%. China’s GDP will fall by 1-2%. The retail industry is hit as well, since the outbreak happened on the eve of the New Year. It will be interesting to know that Hubei, where it all began, accounts for more than 4% of China’s GDP.

And that’s just China. As the disease continues to spread around the world, there has been a marked impact on global demand and supply. Entertainment and travel industries and the most hit, since people are staying at home now. The airline industry around the world stands to lose more than $113 million dollars. The entertainment industry will lose $5 billion dollars.

There is panic amongst investors as well, who are now unsure as to where matters will head. This has affected stock exchanges like Dow Jones, whose Industrial Average closed at 20% less than what it was in February, at 23,553.22 points.

<img alt="Impact of covid on the global economy" src="https://mmk-s3-cms.s3.amazonaws.com/1585297648280.jpeg" style="height:500px; width:750px" class="img-responsive credit_i_img">

Now, with the impact of Covid-19 on the Global economy to provide perspective, let us look at some of the diseases which ran rampant in the world in recent memory.

<h3 class="credit_i_h3">SARS</h3>

SARS stands for Severe Acute Respiratory Syndrome. It was also a coronavirus that had symptoms like fever, breathing problems, dry cough, and pneumonia. However, its run lasted only for 6 months - from February 2003 to July 2003, which was a relief, given its high mortality rate. During this time, sales downspiralled, while the disease affected travel and entire areas. The economic loss was stated to be between 40 billion to 80 billion USD!

<h3 class="credit_i_h3">The Spanish flu of 1918</h3>

The Spanish Flu outbreak came before penicillin and sulfa drugs were invented, which is why its effect was so widespread and lethal. Spain got the brunt of the disease and lost more than 8 million people in the country.

It was a pandemic as well. It turned out to be far more deadly - with 50 million dead of the 500 million were infected, around the world.&nbsp;

Wages actually rose during this period as there were less workers available.

Another far-reaching effect of the Spanish Flu was that Spanish mothers who were affected while pregnant gave birth to children mentally deficient to a degree. These children were found to be 15% less likely to gain a high school degree and the wages of the men were as much as 9% as a direct result of that.

<h3 class="credit_i_h3">The Ebola Pandemic of 2014</h3>

The Ebola pandemic was limited to Africa only. However, it caused significant death and devastation to the economy of African countries. It caused the death of 11,316, while having infected 28,639. 10,600 more died untreated as doctors struggled to control the situation. Liberia, Guinea and Sierra Leone together lost $3.6 billion of their GDP in the effort to fight Ebola.

<h2 class="credit_i_h2">Pandemics and how they affect you</h2>

Pandemics and epidemic disease are caused by mutations of existing viruses, or by transmission of an existing animal-infecting virus over to humans. These have a life cycle of a few months, unless it evolves or mutates further.

Did you know that there are pandemics every 10 to 50 years? These are caused by new types of viruses we are not immune to yet, and many of them are transferred from animals.

Climate change only increases the problem of viruses, and now perhaps Covid-19 is an indication of the same. As the permafrost melts due to global warming and releases viruses and bacteria which were dormant for 1000 years or more, we are exposed to them more frequently, creating quite a torrent of diseases. Contaminated water from sewage flooding only increases such a risk.

<h3 class="credit_i_h3">Here’s what you can do</h3>

Viruses have a bad habit of mutating. The only thing you can take right now at this moment is a flu vaccine. It may not stop the virus and has limited protection, but it does give upto 90% more protection from a potential infection.

Other than that, you can do these things till a vaccine comes out for the current pandemic(which, as stated before, can take years):

<ul class="banklogin_ul">
	<li>
	Get a flu vaccine every single year
	</li>
	<li>
	Avoid anyone who is sneezing and coughing
	</li>
	<li>
	Wash your hands multiple times a day with soap and water
	</li>
	<li>
	Do not touch your face frequently.
	</li>
	<li>
	Avoid being outdoors, especially in more crowded places, unless absolutely necessary.
	</li>
</ul>

In case the COVID-19 is anything as bad as the Spanish flu, it is definitely a cause to worry. To deal with such a situation:

<ul class="banklogin_ul">
	<li>
	Get enough necessary supplies for your family, including medicine (and <a href="https://www.mymoneykarma.com/insurance/index.html/benefits-of-family-health-insurance.html" target="_blank">medical insurance</a>).
	</li>
	<li>
	Create an emergency plan, and correspondingly an <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/save-money-for-rainy-days.html" target="_blank">emergency fund</a>.
	</li>
	<li>
	Be sure to make means for the <a href="https://www.mymoneykarma.com/insurance/index.html/best-health-insurance-for-parents.html" target="_blank">care of your elderly parents</a>, and keep them safe.
	</li>
	<li>
	Write down all your essential medications just in case you need them.
	</li>
</ul>

&nbsp;

We hope that this article will help you in these tough times, and we wish you safety and the best of luck. Together, let us beat the Coronavirus.

Covid19, aka coronavirus, is wreaking havoc on the global economy. Here's a brief glimpse into how the virus is affecting the economy, and how it has been during past pandemics.

Covid-19 : Impact on Global Economy

<h2 class="credit_i_h2">RBI cuts Repo Rates, allows 3-month moratorium on loans to safeguard economy from pandemic</h2>

In an emergency move on Friday, 27th March 2020, the Governor of the Reserve Bank of India, Mr. Shaktikanta Das has slashed - by 75 basis points - its key lending rate. This measure was taken to counter the toll the coronavirus is currently taking on the Indian economy.

The meeting, which was originally scheduled for a bi-monthly policy meeting in April, was changed to an unscheduled emergency meeting of the RBI Monetary Policy Committee. This move was voted for by 4 out of 6 members of the committee.

According to the Governor, “The economic outlook globally is uncertain and obviously negative... Financial stability is the topmost priority of the RBI in this crisis.”

<img alt="Governor of the Reserve Bank of India, Mr. Shaktikanta Das" src="https://mmk-s3-cms.s3.amazonaws.com/1585314434250.jpeg" style="height:375px; width:667px" class="img-responsive credit_i_img">

Here are the key take-aways things to keep in mind:

<ol class="homeloan_Faqs_ul_1">
	<li>
	The Repo Rate is the key interest rate of the RBI. It is at this rate that it gives short-term loans to commercial banks. Now, in this situation today the repo rate cut was of the largest magnitude ever done so far. Previously, the largest cut delivered was 35 basis points in August 2019.
	</li>
	<li>
	Additionally, a 100 basis point cut was announced in the Cash Reserve Ratio for 1 year. This step is taken to ensure that there will be adequate liquidity system-wide. Cash reserve ratio is the amount of money in cash banks have to keep with the RBI. This step is to release liquidity as much as Rs. 1,37,000 crores in all banks.
	</li>
	<li>
	A 3-month moratorium period on loans is presented by the RBI to banks and other lenders. This is done to ensure that there is enough credit flow. This stage will benefit banks as well as the common man by allowing them a relief in these hard times.
	</li>
	<li>
	According to Mr. Das, the priority now is to have ‘strong and purposeful action“ for protecting the Indian economy in its fight against Covid-19. The economic outlook globally is uncertain and obviously negative... Financial stability is the topmost priority of the RBI in this crisis
	</li>
	<li>
	&nbsp;The step to change the repo rate was taken to safeguard the Indian economy at a time when the coronavirus is visibly affecting the industry.
	</li>
	<li>
	The Governor or the RBI has reassured citizens by saying “Indian banking system is safe and sound... In spite of the challenging environment, I remain optimistic.”
	</li>
	<li>
	The Reserve Bank Of India has already given a stimulus package to the industry, in the form of Rs. 2.7 lakh crore to India’s financial system. This step was carried out after RBI’s February policy meeting. The RBI’s current liquidity injection ratio to the country’s GDP is 3.2%. Mr. Shaktikanta Das further says that if any other steps are required to be taken to safeguard that Indian economy, they shall be taken. On Thursday, 26th March 2020, 1.7 lakh crore as a fiscal package was provided to support the poor through food security measures and direct cash transfers. However, details as to how this would be implemented was not provided.
	</li>
	<li>
	Currently, India is looking at the lowest GDP expansion since the global financial crisis of 2008-2009. Many economists predict a bigger blow to the economy because of the coronavirus outbreak.
	</li>
</ol>

<img alt="Indian GDP is going down : global economic crisis 2020 " src="https://mmk-s3-cms.s3.amazonaws.com/1587983315746.jpeg" style="height:640px; width:960px" class="img-responsive credit_i_img">

However, even the moratorium period offered by RBI has come under question as of late. Moody's opines that the loan moratorium could cause a greater build-up of credit loss for banks. India and China have both extended such measures to deal with the liquidity crunch amid the COVID-19 crisis. Although this can provide temporary relief to borrowers, it will constrain banks from taking proactive recovery actions and could lead to an even greater build-up of credit loss once the moratoriums are lifted, reports Moody's.

Moody's, in a report on the Asia-Pacific region on Tuesday, said that while policy stimulus will shore up credit quality for larger companies in sectors including airline and oil and gas, Asia's banking sector profitability would decline from falling asset quality and lower net interest margins.

&nbsp;

3 Months of EMI relief for the people! The RBI Governor has announced a 3 month moratorium on all loans, while also announcing the largest repo rate cut in recent history. 

Latest RBI Update : Allows 3 Months Pause on EMI - RBI Repo Rate Cut

The Covid-19 pandemic has the world tight in its grip as of now. Most of the world is on lockdown or curfew to slow down its spread.

This has led many across the world into staying at home. Putting up at home, without being able to go out, is seemingly bad for health. But more importantly, it can be bad for your financial health as well.

<h3 class="credit_i_h3">Smart money moves you should make during the Covid-19 pandemic</h3>

Did you know that right now in India itself, millions stand to have a 20% to 50% salary cut? Worse still, companies may downsize or even shut down in this tough time. And you know what that means, right? Yes, unemployment. The majority of us live paycheck to paycheck. Many even have no emergency savings, bank accounts or any savings at all.

As you can see, this is one of those times when you need to look hard at your income and expenses. Are you saving enough? Why not? What can you do to do that?

mymoneykarma is going to help you in this article.

Here are 5 things you need to do to bolster your financial situation.

<ol class="homeloan_Faqs_ul_1">
	<li>
	Study your income and expenses 
	Lets start with making a basic budget. If you don’t have one already, make one now. There are two sides of a budget: what you earn and how much you spend. However, if your income has already been affected significantly (due to job loss or whatever), then budgeting may not work. 
	In any situation, you need to figure out how much you are earning at the very least. Based in this, you can decide how much you need to cut expenses. 
	<img alt="Simple ways to manage your expenses | Money Management" src="https://mmk-s3-cms.s3.amazonaws.com/1588165102954.jpeg" style="height:640px; width:960px" class="img-responsive credit_i_img"> 
	First, figure out your income and income sources. 
	Second, figure out your expenses and its sources. 
	Third, check your savings and emergency funds. If you don’t have one, don’t worry.
	</li>
	<li>
	Categorize your expenses 
	It is important to categorize your income and expenses, especially the latter. If you can’t find where you are losing money, you can’t control it. Find out where and how you are spending. Like millions of others, you too may be spending on utilities, housing, food, and insurance. 
	The second category of debt payments, something that you need to keep paying no matter what. 
	The third category of expenses is discretionary spending. These include variable expenses like entertainment, hobbies, shopping, dining out, self-care, recreation, etc. 
	The fourth category can include irregular premiums. 
	Find out which ones you need to keep paying, and which ones you can do without.
	</li>
	<li>
	Eliminate things you can do without 
	If your finances are in an emergency situation, you need to cut down all or many of your frivolous expenses.&nbsp; These can include travels, vacation, dining out, ordering takeout food, useless subscription, and the like. 
	&nbsp;
	</li>
	<li>
	Check your essential spending 
	There are always those expenses that need to have no matter what. These may include insurance premiums, mortgage, rent, etc. Here are some things you can do. 
	If you are worried about your outstanding mortgage, talk to your lender. They’ll be happy to give you other payment options. 
	Here’s something else to consider as well: refinancing your home loan. Right now, mortgage loan rates are at an all-time low. If you do this, you may get to refinance your mortgage at a much lower rate.
	</li>
	<li>
	Get strategic with spending 
	This means when you spend, use cash back apps, and perhaps even cash back credit cards. However, we do not recommend using credit cards in this tough time.
	</li>
</ol>

So that’s it: 5 tips to help you out during the Coronavirus panic.

We at mymoneykarma do hope these tips will help you. Stay safe and take care!

&nbsp;

Money Management is of utmost importance during the Coroa Crisis. To combat covid19, here are some money management tips from mymoneykarma.

Covid 19 Update : Money Management During the Corona Crisis

The coronavirus outbreak has literally shaken the nerves of the stock market. Right now, the view of investors towards the new future is that of uncertainty and negative. The stock market, therefore, is bearish.

To solve this problem, the Reserve Bank of India has taken steps to calm the nerves of the stock market. Last Friday, 27th March 2020, the RBI announced that it has cut key policy rates. This step was taken to help the economy during the coronavirus pandemic lockdown. Most other countries under the grips of this deadly pandemic are taking similar steps as well. This is to slow down or completely mitigate the recession resulting from the pandemic.

<h2 class="credit_i_h2">RBI’s Repo Rate Change</h2>

The key rates cut include the Repo Rate and the Reserve Repo rate. The repo rate was cut by 75 basis points while the reserve repo rate was cut by 90 basis points.&nbsp;

Such a step was taken by the RBI of course with best interests in their hearts. However, it will be creating some problems for both investors and borrowers.

In this article, let us see what are some of the problems borrowers shall be facing after this change are.

<h3 class="credit_i_h3">Impact on borrowers</h3>

This unexpected repo rate cut from the RBI is stated to reduce EMIs, which is important to borrowers. With less interest to pay back loans, it will be cheaper to take new loans.

<img alt="Unexpected Repo Rate Cut from RBI - Reduee EMIs-Less Interest Pay Back Loans" src="https://mmk-s3-cms.s3.amazonaws.com/1589190653956.jpeg" style="height:640px; width:960px" class="img-responsive credit_i_img"> 
 
Here is an example of how a loan you have already taken is likely to be affected by the rate cut.

<table class="table table-bordered credit_i_table">
	<tbody>
		<tr>
			<td>
			Loan amount
			</td>
			<td>
			Rs. 3,00,000
			</td>
		</tr>
		<tr>
			<td>
			Loan tenure
			</td>
			<td>
			20 years
			</td>
		</tr>
		<tr>
			<td>
			Current interest rate
			</td>
			<td>
			7.95%
			</td>
		</tr>
		<tr>
			<td>
			Current EMI
			</td>
			<td>
			Rs. 24,999.92
			</td>
		</tr>
		<tr>
			<td>
			New interest rate
			</td>
			<td>
			7.20
			</td>
		</tr>
		<tr>
			<td>
			New EMI
			</td>
			<td>
			Rs. 23,620
			</td>
		</tr>
		<tr>
			<td>
			Cut in EMI
			</td>
			<td>
			Rs. 1379.45
			</td>
		</tr>
	</tbody>
</table>

Here is how this will affect different categories of borrowers.

Existing borrowers:

Borrowers who already have existing loans that are linked to external benchmarks like treasure bills and repo rate, can expect to see their monthly EMI decreasing in the coming months. As per Reserve Bank of India’s directive on linking of loan interest rates to external benchmarks, the rates are to be reviewed by banks every 3 months.

Borrowers with loans linked to MCLR

Borrowers in this category will benefit with lower loan rates, but only when their banks reduce it. This is because the MCLR is dependent on not only external factors, but also the bank’s own internal factors. Going further, the reduction in MCLR rates will only read to lower EMI when your home loan’s reset date comes.

Want to switch to a loan rate based on an external benchmark? You need to give an administration cost. However, experts suggest that you do this only when the difference between the two rates is at least .50%.

Borrowers whose loans are linked to BPLR or base rate

Borrowers with home loans linked to Benchmark Prime Lending Rate should think of switching to an external benchmark-based loan. This gives them better transmission of policy rates.

New borrowers

One of the best things is that new loans shall be considerably cheaper. Taking a new loan linked to external benchmarks should be a priority for new borrowers. When doing so, make sure to compare the risk premium and spread being charged by banks above the external benchmarks. This gives you the cheapest interest rate.

At the end of the day, please do remember that when RBI increases the key rates, your interest rates shall go up as well. This makes interest rates linked to external benchmarks more volatile than MCLR linked interest rates.

&nbsp;

Latest RBI Repo Rate has been slashed as a response to the covid19 economic crisis. How will this affect borrowers? Find out at mymoneykarma.

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