Money Saving Tips

https://www.fundstiger.com/emi-moratorium-covid-19/ On March 27, the Reserve Bank of India (RBI) said that all lending institutions, including banks and housing finance companies, will have to give its borrowers a three-month moratorium on term loans. The moratorium was for payment of all instalments falling due between March 1, 2020 and May 31, 2020. According to the RBI, the deferred instalments under the moratorium will include the following payments falling due from March 1, 2020 to May 31, 2020: (i) principal and/or interest components; (ii) bullet repayments; (iii) equated monthly instalments (EMIs); (iv) credit card dues. If you do not pay the next two EMIs of your loan, you will not be blacklisted. But the bank will charge interest for the unpaid amount. Missing two instalments could extend your loan by 6-10 months or increase EMI amount by 1.5% Who can avail? RBI has included all term loans dues under the moratorium. Term loans include vehicle loans, home loans, ...

RBI Steps in Monetary Stimulus https://www.fundstiger.com/rbi-steps-monetary-stimulus/ The RBI also announced a series of measures to address the stress in the financial conditions caused by the pandemic such as injecting sizeable liquidity in the financial system, ensuring credit flow, relaxation in repayment and debt servicing pressures and improving the functioning and stability of the financial markets. Temporary compliance relaxations were also announced. The RBI announcement came days ahead of the scheduled MPC meeting to be held on 31-3 April’20. The decision to cut policy rate was unanimous. However in terms of quantum of rate cut, 4 members voted for a 75 bps cuts while 2 member sought a 50 bps cut. Key Announcement: Policy Rates, Developmental and Regulatory Policies 1.Repo rate cut by 75 bps from 5.15% to 4.40% with immediate effect. 2. The reverse repo rate to be 40 bps lower than repo rate from the earlier 25 bps. 3. Marginal standing facility (MSF) rate to b...

Smart Strategies to Invest during Uncertainty https://www.fundstiger.com/smart-strategies-invest-uncertainty/ It may be difficult to believe that this may be a good time for investors to invest with the red splashed across stock counters one day and wildly swinging markets the next, a bank being put under moratorium, an instrument that was seen as a safe option suddenly becoming riskier than equity and losing all its value, the global economy in a tailspin and a pandemic that shows no signs of abating. But if you look beyond these very real and very significant issues there is an investment opportunity for investors across asset classes. However, this is an opportunity that should be exercised with caution. We look at what the current situation means for your equity, debt, gold and foreign currency assets and how to handle your investments at this stage. Coronavirus outbreak has left common investors worried over how they can protect their wealth and invest. What could be...

Diversification of Investment https://www.fundstiger.com/diversification-investment/ “Don’t put all your eggs in one basket”, goes the old adage. Based on your goals you may have allocated your investment into various asset classes such as equities, fixed income, insurance and commodities. But if you do not diversify within each asset class, the exercise, according to analysts, is sub-optimal. Spreading your fixed income investments is fairly simple but in the case of equities you need the right permutations and combinations of different stocks or equity funds to ensure that your portfolio sufficiently straddles good sectors and stocks. The Benefits of Diversification The benefit of diversification in your investments is to minimize the risk of a bad event taking out your entire portfolio. When you keep a high percentage of your portfolio in a single type of investment, you risk losing it if that investment sours. The benefits of diversification include: Minimizes the ris...

https://www.fundstiger.com/tips-women-save/ Be it single women, married or divorced, there are ways to overcome hurdles and become financially independent. Some of the challenges may be it in dealing with the struggle of saving and investing, tackling financial illiteracy, balancing the needs and wants of parents and children, or overcoming resistance in marriage. Hope you will find a way to make your financial dreams come true this Women’s Day. Strategies to Raise Savings An important factor in how much a woman saves depends on how she invests. 1. Speed up Saving Since the woman will end up saving less due to the gender pay gap and fewer years she puts in at work, one way of overcoming this hurdle is by increasing her monthly savings. So if a 25-year-old woman is building a corpus for retirement at 60, she will have to save nearly 17% of her income compared with 10% that men would have to in order to build the same corpus. If she finds it hard to do so, she can automate ...

Loan Frauds in India https://www.fundstiger.com/loan-frauds-india/ Loan frauds as a percentage of total banking frauds jumped to 90% in fiscal 2019 from 55% in fiscal 2018 after regulatory standards were changed for banks reporting non-performing assets (NPAs). How to safeguard yourself from such frauds Fraudsters in phishing scams obtain details of personal or financial information of the victim Look for a secure payment (https:// – URL with a pad lock symbol) Never share OTP / PIN Numbers in any form, to the buyer or seller Never do transactions while you are on call Do not click and fill up any short links provided by the buyer or seller Do not fill google forms provided by the buyer or seller Do not scan QR codes, if you scan, it means your money is getting debited from account Banker will never ask for an advance fee before the processing of loan application. Banks charge a processing fee, which is deducted from the loan amount Online Loan Fraud Don’t become ...

Loan Frauds surge in FY19 https://www.fundstiger.com/loan-frauds-surge-fy19/ Loan frauds as a percentage of total banking frauds jumped to 90% in fiscal 2019 from 55% in fiscal 2018 after regulatory standards were changed for banks reporting non-performing assets (NPAs). Loan frauds increased year-over-year to Rs 64,548 crore in 2019 from Rs 22,558 crore, even as frauds in other segments such as debit & credit cards, online banking and forex declined. State Bank of India reported fraud of ₹25,400 crore followed by Punjab National Bank of ₹10,800 crore and Bank of Baroda of ₹8,300 crore. Interestingly, the share in these frauds of public sector banks is as high as 90% in terms of the amount lost. And for high-value frauds that is, Rs 50 crore or more the share of PSBs rose higher to 91.6%. “This mainly reflects the lack of adequate internal processes, people and systems to tackle operational risks,” the RBI said in a recent report. It also said that the “spike in the numbe...