Personal Loan from Co-operative Banks for Low Income Earners

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Low income earning individuals have to face lot of hardships to meet the demand for day to day money requirement especially when they are the single breadwinner in the family.

Most common options for low salaried to meet emergency fund

They have two options – either use own source of income or ask other sources – relatives, friends, financial institutions and others. Using personal income is the best recommended option as you won’t owe anyone. But it is not possible for everyone to raise money at the time of need especially when emergency strikes e.g. medical emergency which often needs huge amount of money.

And at such difficult times, asking your friends or relatives is the best alternative, when own source of income does not help. However everyone has their own limitations. So that’s when commercial financial institutions come to the rescue as they offer personal loan but at a cost i.e. interest rate. But the fight doesn’t end there because low income earners fail to meet the income requirement to get personal loan; as most of the commercial banks have high income eligibility criteria. Although commercial banks also offer loans to low salaried but their terms and documentation process are very tedious.

Other alternative to commercial banks are the co-operative banks (scheduled and non-scheduled). Individuals with low income can get small personal loan from co-operative banks much easily compared to commercial banks which includes public sector and private sector such as SBI, ICICI, Axis, HDFC bank & others. Even though many scheduled co-operative banks mandates applicant to be the member of the bank. But this should not be a problem for such individuals, as loan approval process is simple.

Here is the table with list of co-operative banks along with income requirement, loan amount, and interest rate. Few banks provide small loan amount which normally does not require higher salary. So interested individuals should try applying at these banks.

Name of Co-operative bankMaximum Loan AmountInterest Rate (%)Monthly income required
Greater Bombay Co-operative Bank2 Lacs14.510000
Abhyudaya Co-operative Bank 5 Lacs13.58000
Punjab & Maharashtra Co-operative Bank5 Lacs1618000
Janakalyan Sahakari Bank5 Lacs167500
Thane Bharat Sahakari Bank5 Lacs148000
TJSB Sahakari Bank5 LacsNA15000
Sardar Bhiladwala Pardi Peoples Coop Bank2500012.5NA
Janata Sahakari Bank3 Lacs14Based on latest income proof
Bharat Co-operative Bank (Mumbai)2 Lacs13Fair income required
Bharati Sahakari Bank5 Lacs132 years of minimum employment
Citizencredit Co-operative Bank1 Lac+13.25Salary slips required
New India Co-operative BankUpto 50,000On reducing balance methodMinimum taxable
income of Rs100,000/- for last 2 years
New India Co-operative BankAbove 50,000On reducing balance methodMinimum taxable
income of Rs. 150,000/- for last 2 years

The reasons low income earning person should apply for personal loan at cooperative banks are as follows:

  • Approval process is simpler
  • As loan amount provided is small the eligibility criteria is not very strict
  • Interest is normally low compared to commercial banks
  • Income requirement is low
  • Not very complicated terms and conditions and hidden charges
  • Not all banks report or request CIBIL data
  • Very small processing or prepayment fees
  • Even if you had poor or no credit history, your chances of loan approval are high compared to commercial banks as they mainly judge loan eligibility on previous credit history.

What are the other choices available apart from commercial and cooperative banks?

Low income earners can get personal loan from following alternatives:

  • Peer to peer lenders
  • Secured loans against FD/LIC policy/gold/property
  • Private money lenders
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5 Options to Get Loans with No Credit Check: P2PL, Against FD/Gold

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Your CIBIL credit score is the most important decisive factor in getting any type of finance or credit card. Lenders do a comprehensive credit history check in order to gauge the repayment capacity of the applicant. Apart from the credit rating, income and the company you work for also plays a key role. Higher the credit score, which is out of 900, higher would be the chances of loan approval.

But what about individuals, seeking loan with no credit bureau record or poor score. Are there any options out there in India where credit score of borrower is not checked by the lenders while granting loan or when credit score is not the only selection criteria?

Answer is YES but the options are very limited as follows. Each of these options are explained in detail below.

  1. Peer to peer lending companies
  2. Co-operative banks
  3. Loans against fixed deposit or LIC policy or credit card
  4. Private money lenders
  5. Loan against gold

Peer to Peer Lenders (P2PL): This type of lending is gaining attraction in India and is an excellent option, as loan approval process is not tedious like commercial banks. These financiers do not solely rely on an individual’s previous credit history i.e. even if the credit rating is checked by gathering data from CIBIL, a poor score does not necessarily mean that loan application will be rejected. Read more about peer to peer lenders.

Following P2PL do not check credit score of the loan applicant:

  2. Lendbox

Co-operative banks: Apart from P2PL, co-operative banks are also an option to get a loan quickly compared to commercial banks such as public sector or private sector banks. Loan application does not go through credit history check by most of these banks. In case, you fail the credit check but your income is good and employer is big, you can convince these banks on the basis of these two plus points you have.

Loan against fixed deposit: If you have fixed deposit account at the bank but have poor credit score, then you can take loan against fixed deposit as credit check is not done. The loan amount granted is around 85%-90% of the value and can help in raising money for short term. Read in detail about the loan against FD and LIC policy.

Private money lenders: Private financiers (person / entity) are another solution for getting loan with no credit check. Only requirements are guarantor, security cheque, should have own house, and must provide income proof. Best way to look for such financiers is google search or quikr. Just search for “personal financiers in cityname”.

Loan against gold: If you have physical gold or ornaments and are in need of loan, then you can get secured loan against gold deposit with no credit check done by the lender. Such loans are offered by private gold loan companies such as Muthoot Finance, Manappuram Finance, others and commercial banks like ICICI, HDFC, Axis, SBI, and others.

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Pradhan Mantri Garib Kalyan Deposit Scheme: Application Form, Tax, FAQs, Benefits

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Government is giving the last and final chance to all the tax evaders to deposit their unaccounted income through Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), a newly launched scheme. Part of money collected through PMGKDS will be infused into social security schemes run by the government of India i.e. for the welfare of the poor people. It is a fresh crackdown on the black money holders and a final last chance.

What is PMGKDS?

It is a new income disclosure scheme announced on 16th December 2016. The scheme will allow all the tax evaders or black money holders to disclose their unaccounted/accounted income by paying higher tax.

What taxes will have to paid?

Any individual declaring undisclosed income will have to pay multiple types of taxes as follows:

  • 30% tax on income
  • 33% as surcharge tax
  • 10% penalty on the overall income
  • 25% of total declared amount for PMGKDS

When will the disclosure scheme start and end?

Scheme start date will be 17th December 2016 and end on 31st March 2017.

For what purpose this money will be used and what are the benefits?

Money collected through Pradhan Mantri Garib Kalyan Deposit Scheme will be used for various social security schemes which are mainly aimed for the benefiting the poor people. The lock-in period under the scheme will be 4 years.

Few of the social schemes announced by the government are:

  • Jeevan Jyoti Bima Yojana
  • Suraksha Bima Yojana
  • Jan Dhan Yojana
  • Sukanya Samriddhi Yojana
  • Awas Yojana
  • Atal Pension Yojana
  • Digital India
  • Gram Sadak Yojana
  • Rashtriya Swashtha Yojana

How to deposit the undisclosed wealth and contribute to PMGKDS?

Individuals will have to deposit money in the bank along with the application form. Banks will have to send these details to department of Revenue, Ministry of Finance, and Government of India. And also upload the details of the deposits to RBI’s core banking solution. RBI will maintain Bonds Ledger Account for the deposits. Upon declaring, certificate of holding will be given to the declaration. Here’s the official snapshot of the certificate released on the RBI website.

Pradhan Mantri Garib Kalyan Deposit Scheme - Certificate of Holding
Application form for PMGKDS is as shown in the below image:

You can also download the application form from this official RBI’s website link.

Will the declarant get deposited back?

Yes, but after 4 years of lock-in period. If declarant dies, then money will be repaid/transferred to the nominee. Nomination facility is also available while declaring the money. No interest will be paid on the repayment amount.

What are the payment modes for depositing the money?

Deposits can be made in the form of cash/cheque/demand draft in the authorized bank.

What are the documents required while disclosing unaccounted income?

Declarant will have to furnish PAN details, bank account details, nominee details along with the nominee’s bank account details.

What if someone fails to declare the income by 31st March 2017?

On such individuals government is expected to take criminal action along with a penalty by charging very high tax.

How can someone reach income tax department if they have information on such black money holders?

Individuals with any information related to black money can E-mail I-T department on [email protected]. Everyone should come forward and make a pledge to help government in this initiative by giving whatever information you have about black money. This will make India an economic super power soon.

For clarification or queries related to PMGKDS, you can E-mail RBI on [email protected].

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17 Low Interest Business Loans for Women: Loan Amount, Documents, Eligibility

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Entrepreneurship had been considered the forte of men in India. However this no more holds true. Women are equally catching up in the male dominated role contributing to the growth of the Indian economy.

Getting access to the capital is the key reason for impeding the growth of women entrepreneurship in India. However not many of us are aware that many financial institutions provide business loans for women entrepreneurs in India. These loans come with greater benefits compared to the normal loans available in the market.

Here is the table showing various loans for business women wanting to start or run their own business. These financing options aim to support entrepreneurship amongst females at concessional rates.

Sr. No.Name of LenderName of Loan / SchemeInterest RateLoan limit (INR)
1Central Bank of IndiaCent Kalyani SchemeUp to Rs. 10 Lacs - MCLR + 0.25%
Up to Rs.1Crore - MCLR + 0.50%
Upto 1 Crore
2Dena BankDena Shakti25 basis point less than applicable ratesUpto 20, 00,000 (20 Lacs)
3Small Industries Development Bank of IndiaMahila Udyam NidhiCalculated at the time of application10,00,000 (10 Lakhs)
4Punjab and Sind BankUdyogini SchemeAs applicable to MSMEsNo margin upto Rs. 25, 000
Above Rs.25, 000 15-25%
5Bhartiya Mahila BankShringaar9.70% - 11.70%Upto 50, 00,000 (50 Lacs)
6Bhartiya Mahila BankAnnapurna Scheme9.70% - 11.70%NA
7Bhartiya Mahila BankParvarish9.70% - 11.70%NA
8Bank of IndiaPriyadarshini Yojana0.50% less than the applicable ratesUpto 5, 00,000 (5 Lacs)
9NKGSB Co-Operative BankStree SakhiNAUpto 2 Lacs
10NKGSB Co-Operative BankStree UdyogikaNA80% of the project cost
11Kerala State Women's DevelopmentSchemes for forward class6% - 8%2, 00,000 (2 Lacs)
12Kerala State Women's DevelopmentNew Swarnima0.051, 00,000 (1 Lacs)
13Kerala State Women's DevelopmentMicro Finance0.0550000/member
14Kerala State Women's DevelopmentMahila Samriddhi Yojana0.0450000/member
15Kerala State Women's DevelopmentSchemes for minority community0.0610, 00,000 (10 Lacs)
16Kerala State Women's DevelopmentTerm Loan6% - 8%10, 00,000 (10 Lacs)
17State Bank of India & Small Industries Development Bank of IndiaStree Shakthi Package0.50% less if loan amount exceeds 2 Lacs50,000 - 25 Lacs

There are many other financial institutions apart from the above listed ones providing loans to women entrepreneurs.

Apart from the above business loans, women can also get credit through the following options:

  • Normal business loans
  • Personal loans from banks/co-operative banks
  • Peer to peer lenders – Lendbox, Lendcart and others. Check list of P2PL here.
  • Get self finance either through their own savings
  • Ask family / friends to lend money

Documents required for loans for setting business:

Documentation work required from females are:

  • PAN card/Aadhaar card
  • ID and address proof
  • Passport sized photographs
  • If woman is working then salary statement for last 6 months and Form-16
  • Form-60
  • If applicant already runs her own setup, then income tax return form, profit and loss statement, bank statement, and balance sheet or more business related papers.

Above documents are most basic required by every financing companies and requirements might change for each lender.


  • Age of the applicant should be between 18 years – 55 years.
  • Loans to women from economically weaker section are granted on the basis of income
  • Proper availability of the documents listed above or as required

Points to keep in mind before opting for business loan:

  • Collateral needed
  • Compare interest rates with multiple lenders
  • Bargain for interest rates
  • Check loan foreclosure charges and processing fees
  • Late payment fees
  • Speed of loan disbursement
  • Ease of repayment options

For what purpose can loan be used?

The credit received by the bank can be used for many purposes such as –

  • Acquisition and setting of office/establishment
  • Purchase of related equipments
  • Managing day to day operating cost

Reasons of slow growth of women entrepreneurs in India:

There are many reasons for poor women entrepreneurship growth in India such as:

  • People’s restricted mindset
  • Gender bias
  • Poor family support
  • Work restrictions
  • Long term prospects of the business i.e. expansion plans
  • Lack of employee management especially men
  • Difficulty in getting access to capital due to no or low income
  • Certain businesses can be best handled by only men such as requiring floor work
  • Poor access to internet connectivity especially in rural areas

However entrepreneurship in India has started getting higher importance from both rural and urban areas. Especially urban area is seeing the gap between men and women narrowing. Increased involvement of women in business is changing this age old mindset.

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Demonetisation: Raids, Arrests, Illegal Currency Conversion

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By now, everyone must have gone through hardship in getting currency either from ATM or Bank atleast once. People are standing in queues even before the doors of bank or ATM opened.

The main objective of the currency ban was to end black money in the market and fake currency which has been hurting India’s economy and internal security. However even after the currency ban, fraudsters have invented multiple ways to trick the system and within month of the ban there are news from across India of illegal ways new currency notes have been circulating in the market, old currency notes converted in bulk in exchange of new notes unethically, money laundering, and others.

Read on effects of demonetisation.

Several arrests have been made across India involving officers from banks, Reserve bank of India, post offices and others such as public servants, middleman etc.

Here is the list of countrywide raids conducted by CBI, IT department, police on various banks, post offices, individuals, and other places/individuals. Arrests have been made across country which surprisingly includes bank officials.

Bank of Baroda: Official has been arrested for converting currencies valued at INR 50, 00, 000 (50 Lacs).

RBI: Senior officer arrested for allegedly converting amount worth Rs. 1.5 Crores.

Axis Bank: One of India’s top most private bank was also involved in the misconduct.

Officials from SBI, Kotak Mahindra Bank, State Bank of Mysore, ICICI Bank have been booked for illegally converting amount worth Rs. 5.7 Crore.

ATM servicing company and banking personnel from Karnataka Bank and Dhanlaxmi Bank have also been arrested.

Central Bank of India and other connected individuals are arrested for issuing 149 demand drafts worth Rs. 70 Lakhs.

Currency conversion charges have also been registered on officials from State Bank of Bikaner and Jaipur and Indian postal department.

From Punjab, 4 persons were arrested for printing fake currency notes of Rs. 100 and Rs. 2000.

Undisclosed income worth Rs. 18 Crore has been recovered from oil manufacturer in Punjab.

Black money worth Rs. 6.5 Crore was seized from a garment manufacturer in Punjab.

Latest update on currency ban: Government launches Pradhan Mantri Garib Kalyan Deposit Scheme for black money holders to declare their undisclosed income.

RBI’s action plan to control this illegal activity:

RBI has ordered bank to put CCTV camera until 30th Dec to keep a track of illegal activities such as counterfeiting of new currency notes.

Monitor new notes released from currency chests.
As of now, across India 16 arrests have been made with currency conversion amount Rs. 19 Crore.

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Demonetization Effects on Banking, Real Estate, Auto, FMCG Industry

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One month is gone after the biggest financial reform in the history of India – demonetization was implemented. The move on ban of Rs. 500 & 1000 currency note was appreciated across India especially by urbanites. However rural region is still facing the cash crunch due to poor access to banking and this is estimated to impact various industrial sectors in the coming 2-3 quarters.

Although there are many benefits of reducing cash in the system and increasing the usage of digital money in the long run but the consequences of cash crunch from the system are very difficult to comprehend as the economic growth remains uncertain. But one thing is very clear the no-cash scenario will impact the Indian economy in the near term.

Check out the results of official survey on currency ban.

Let’s understand the effects of currency ban on key industrial sector of India:

Automotive: The 2 & 4 wheeler and commercial sector is expected to get negatively impacted for minimum 2-3 quarters. This is because, in India high share of purchase of motorcycle takes place through pure cash which is nearly (30%-35%) in rural area. In comparison, the demand for small car is less likely to get affected, since people mostly buy 4 wheelers through loans. However as per report published, the number of inquiries have not lowered. Which means the industry will pick up its momentum in the coming months.

Banking and NBFCs: This includes public and private sector banks, NBFCs – consumer finance, consumer vehicle, and mortgage. In the short term, this sector is likely to face slowdown in credit growth in auto, commercial vehicle, loan against property, personal loan, and SME loans.

There will be increase in savings and term deposits in the medium term as a large part of the informal and cash based economy will shift to the banking system for savings and transactions. NBFCs are the oxygen for the small and medium businesses. But due to cash crunch, there could be rise in loan defaults.

Real estate: This industry was already facing difficulties due to poor sale of flats, houses, etc. due to high prices. But post demonetization, things are going to get worsen and it is the worst impacted sector due to the currency ban. Residential real estate demand will slow down as potential buyers especially from the salaried class are very likely to stay away from purchase decisions as they are expecting reduction in real estate prices and most importantly the interest rate charged by the banks. The main reason for the negative impact is the transactions which used to happen in cash has taken a hit. Moreover the sector was not transparent.

Many people’s wealth has taken a hit post demonetization and this has directly affected their future income. This is straight away going to depress the real estate market.

Check latest updates on demonetization.

Construction, building materials and paints: Majority of this sector which directly relies on real estate will suffer as transactions happen through cash only. Since demand for new construction will slow down, it will also impact these sectors.

Consumer products: This includes electronic items such as mobile phone, television, washing machine, etc. Due to low cash flow in the whole system, companies will extend the credit to the distribution chain. Companies are launching various discounts, freebies, waiving off the processing fees in order to woo the customers.

FMCG: Excellent monsoon this year had bought good news to the FMCG sector. However demonetization came as a dampener to this industry. Rural sales had started to pick up after the monsoon. But as rural area majorly relies on cash transactions and wholesale trading, the cash crunch resulted in weaker sales and this is expected to continue for the first two quarters of the next financial year. Sales at wholesalers and local kirana stores has also taken a hit. However as the circulation of money increases FMCG will see sales picking up.

One thing is now very obvious. There will be an impact on each one of us finances and investments. Although there are other external factors mainly the US election result and its impact on the global economy, which might worsen the condition for a short term. However in the long run, Indian economy is definitely going to blossom.

Read more on the lessons to be learnt from demonetization.

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14 Credit Cards for Frequent Flyers: Free Tickets, Rewards, Miles & more

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With rising globalization, people have to travel across countries. And especially business class people who have to travel frequently, are always on a look out for saving money on their travel. This includes cheaper air tickets, dining, etc.

However the most expensive part of travel is the flight ticket which is typically booked online or at the airports. Credit card is the most commonly used payment mode for booking air tickets by businessman or other frequent travelers. Although any card can be used for booking airline tickets, there are credit cards for frequent travelers offering exclusive benefits keeping travel in mind.

Listed in the table below are the best credit cards for frequent flyers. All of these cards offer complimentary lounge access:

Card NameIssuing BankReward Points / Cashback / Air Miles EarnedAnnual Fee (In INR)
Platinum CardSBI> 20 Reward points for every ₹ 100 spent on AI tickets (1 Reward point = 1 AI Air mile)
> 20,000 Reward points as a welcome gift on payment of joining fee
Yatra CardSBI6X points on spends at Yatra.com499
EliteSBI> Upto 50,000 Bonus points worth Rs. 12500/year
> 15,000 bonus points on spending Rs. 5 lakhs and 8 lakhs every year
Elite AdvantageSBI> Upto 50,000 bonus points worth Rs.12500/year
> 10,000 bonus points on spending Rs. 3 lakhs & 4 lakhs annually
Vistara InfiniteAxis Bank> Complimentary Business Class ticket on spending Rs.2,50,000 or Rs.5,00,000 or Rs.7,50,000
> 10,000 bonus points on spending Rs.1,00,000
Vistara SignatureAxis Bank> Complimentary Premium Economy class ticket on spending Rs.1,50,000 or Rs.3,00,000 or Rs.4,50,000
> 7500 bonus points on spending Rs.75,000
VistaraAxis Bank> Complimentary Economy class ticket on spending Rs.1,50,000 or Rs.2,50,000
> 1000 bonus points on spending Rs.50,000
PremierMilesCitibank> 10 Miles for every Rs.100 spent on all airline transactions
> 10,000 Miles on spending Rs.1,000 or more
> 3,000 Miles on renewing the card
British Airways ClassicICICI Bank> 25,000 Avios on travelling from British Airways return ticket from India to England
> Up to 5 Avios per ₹ 100 spent
Jet Airways SapphiroICICI Bank> 10,000 welcome bonus JPMiles
> Upto 7 JPMiles/Rs.100 spent
> 5,000 bonus JPMiles on card renewal
> 5% discount on Base Fare for all domestic / international air ticket (revenue flights) bookings made Jet airways website
AllMilesHDFC Bank> Spend Rs. 150 and earn 3 points. 100 Reward Points = 75 Air Miles / INR. 75 worth of air coupon.Communicated at the time of application
InfiniaHDFC Bank> 5X Reward Points i.e., 20 Reward Points for every Rs. 150 spent on Make My Trip10000
Regalia & Regalia FirstHDFC Bank> On both the cards, earn 8 Reward Points by spending INR 150 and convert into airmilesCommunicated at the time of application
RegaliaKotak Mahindra Bank> On joining, get air ticket voucher worth Rs. 2000Communicated at the time of application

What benefits you should expect from such premium cards?

When you pay high annual and joining fees, you would certainly expect best return/benefits out of it. Here are the features frequent travelers should look for while buying credit card especially for travel:

Easily redeemable on domestic & international airlines or dining, shopping & others: Redemption of reward points earned should be easy. For frequent flyers, points should be redeemable on any flight (domestic/international) and most importantly at any airline.

Lounge access: Flight delays/cancellation, noisy crowd, and other types of chaos are very cumbersome and very common at the airports. And at the world’s busiest airports the situation becomes more irritating especially for frequent flyers. This is the reason why such people want quiet secluded environment and comfort even at the airport. This is why facilities offered at airport lounge are helpful as they provide best amenities/facilities and most importantly complete peace. Exclusive lounge access is must to have benefit in cards specially designed for individuals who travel frequently.

Personal accident insurance: This provides coverage when the card holder meets any accident while travelling via air/rail/road. Such situations are quite common and paying such a high fee for travel credit cards should definitely come with protection through insurance. Imagine a situation, when you meet any unfortunate event in some foreign country, who will take care of your family in the home country? Coverage offered by card issuing company will come to rescue your dependents in the form of fixed sum assured.

Priority pass access: It is the world’s independent airport lounge access program. Exclusive card owners can get priority passes before their flight so that they can relax in peace.

Renewal privileges: It should not happen that the benefits offered after buying a card is limited in the first year only.

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Plastic Currency Notes: Features, Benefits, Disadvantages

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As per the notification from RBI and government’s decision, Indians will soon see plastic currency notes. This is another big decision after the demonetization (i.e. currency note ban).

What are these notes?

Notes which are made of any form of plastic are called as plastic currency notes.

What type of plastic would be used in India to print the notes?

These notes would be prepared from plastic or polymer substrate.

Benefits over paper currency notes & differences

Difficult to imitate / Security: The most important reason behind the launch of plastic currency note is that it is to prevent counterfeiting i.e. fake currency. Paper notes are easier to imitate and when in wrong hands leads to negative impact on economy. In addition to this, fake paper notes are majorly printed and are in use for funding terrorism, which has since ages affecting India’s internal security. So basically it would help India’s economy in the long run.

In comparison, polymer notes have security features which is not possible in paper notes. These features can be detected by individuals, machines, and authority which issues the notes. Reproducing polymer notes through photocopy or scanning is very difficult.

Long life: Plastic currency notes have longer life typically 5 years. In comparison paper notes may or may not have longer life unless and until they are preserved or kept unused. You can take example of visiting card made of plastic and paper. Plastic ones are difficult to tear and have longer life as dirt can be easily removed. You might have come across a situation when shopkeeper rejects to accept a torn paper currency note. This will end once plastic money comes to use.

Quality: Is much better than paper money.

Environmental impact: Since plastic note lasts longer, the production cost is reduced and environmental impact is much lower as paper is saved.

Read more on effects of currency note ban.

Disadvantages of plastic currency notes:

  • Plastic is harder than paper. So carrying these notes will be difficult. Folding will be also harder.
  • Calibrating the ATM will be expensive initially. However in the long run, the impact on economy would be greater.
  • Printing would be initially costly as material would be imported.
  • Counting by hands is difficult as plastic is more slippery.

How many notes would be first available and of which denomination?

Over 1 billion notes made up of plastic would be first printed of denomination of Rs. 10.

Will these notes be available across India?

No. These notes would be first put on a trial in 5 cities – Jaipur, Shimla, Bhubaneshwar, Mysuru, and Kochi. The possible reason to launch these notes in select cities could be to test them in varying weather conditions. The temperature of these cities is typically cold. In summer or humid places, plastic notes might fade due to temperature and its color and texture may get spoiled and might start limping.

Who would be best benefited from these notes?

Although these notes would benefit every individual, it would benefit certain businesses such as fishing, factories, mining and others where there is lot of dirt and water. In such places, paper notes are easily damaged.

Will it be available in ATM? Once the testing is successful, it is expected that ATMs would be calibrated to dispense such notes.

Who would be printing the plastic notes?

The Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) and the Security Printing and Minting Corporation of India Limited (SPMCIL) would be supplying the notes. Both these organizations are selected by Reserve Bank of India. The procurement of plastic material has already started.

In which countries plastic currency notes are used?

There are around 30 countries across the world where such notes are already in use. Few of them are Australia, Singapore, Indonesia, the UK Malaysia and Canada.

Are plastic notes environment friendly?

Yes. The printing consumes less energy and assures being efficient in reducing global warming.

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13 Credit Cards for Grocery Shopping in India with Reward Points

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There are credit cards for almost every usage which includes fuel purchase, travel, entertainment, and many others. As more and more merchants online and offline are going digital, the demand for cashless economy is set to rise in India. And after demonetization, the usage of plastic money is certainly going to boost.

According to the report by India Brand Equity Foundation (IBEF), the retail industry is expected to reach USD 1 trillion by the year 2020.

Grocery or day to day purchases are very common and every one wishes to buy stuffs which offers discounts or offers. Although in India, cash transactions is widely used, there are individuals who make use of credit cards for everyday purchases. Listed below are the cards for grocery shopping:

Card NameIssuing BankNo. of Reward Points
SimplySaveState Bank of India10x per Rs.100 spent
BuzzAxis Bank5% off at Flipkart
6 eDGE Loyalty Reward Points on every Rs.200 spent online
2 eDGE Loyalty Reward Points on every Rs200 spent
Rubyx American ExpressICICI Bank6 Payback points on every Rs. 100 spent
Coral American ExpressICICI Bank2X Cash rewards
Coral & Rubyx MasterCard ExpressICICI Bank4 Payback points on every Rs. 100 spent
IndianOil Citibank PlatinumIndusInd2x with every Rs.150 spent
SolitaireHDFC Bank3 reward points for every Rs. 150 spent
Diners clubHDFC BankDouble Reward Points on Grocer, supermarket purchases
3 Reward Points on Rs 150 spent
FreedomHDFC Bank5% Cash back
Prosperity CashbackYES Bank5% Cashback
Prosperity CashbackYES Bank5% Cashback
IndianOil Citi Titanium & Platinum CardCitibank1 point per Rs. 150 spent
EssentiaKotak Mahindra Bank10 Saving Points for every Rs. 100 you spend

Things to look for while buying credit card for grocery in India:

Easily redeemable: Every point you earn on shopping should be easily redeemable either in cash or gift card or others. But prefer a card which offers cash option.

Acceptance at majority of supermarkets or local or small grocery stores: Read terms and condition of the card mentioning the supermarkets/local stores where card is accepted. Ideally you should buy a card which is accepted at most of the stores irrespective of the size.

Low interest rate: If you are heavy shopper and solely rely on credit cards for grocery or any other type of purchase, then buy a card with low interest rate. Because a single missed or delayed payment will carry a charge in the form of interest rate. Check out few cards which offer low interest rate.

Zero annual fee: Although it is very difficult to find credit cards with zero annual fee which offers cashback or reward points. But if your sole intention of buying a card is very general then you can look for these cards with no annual fee.

Who should buy credit cards for grocery shopping?

Normally in India it is women who takes care of grocery shopping in India be it online or any store. So those who are frequent shopper should buy such cards. Check out cards for housewives in India.

Such cards are more recommended for heavy shopper. Those who do not spend much on grocery shopping should avoid buying card with the purpose of just grocery.

Buy such cards as an add-on card for someone with no credit history. With timely full payment, this can help in building credit history for individuals with no credit in the past.

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UPI Vs. NEFT/RTGS/IMPS & Wallets: 28 Differences

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Digital revolution in India has begun as more & more service providers are adopting advanced technologies to provide good customer experience. Banking industry is at the forefront of this adoption and unified payments interface (UPI) is one such highly advanced technology backed by government of India and Reserve bank of India to promote cashless economy.

UPI is a funds transfer technology which can be done via bank’s app on smartphone. Although such type of transfer already exists; the biggest differentiating factor is that the sender does not need receiver’s bank account details for sending the money. Only thing required is the virtual payment address. Read more on how to transfer money through UPI app.

There are many differences between UPI and NEFT/RTGS/IMPS as listed in the below table.

Sr. No.FeatureUPINEFT/IMPS/RTGSWallets
1Through which device transfer can be doneOnly smartphoneWebsite and appWebsite and app
2Transfer speedInstantTime consuming. But is instant & real time in case of RTGS.Instant
3Can you send money abroadNoYesYes
4Can you transfer money 24*7YesOnly RTGSYes
5How complex are the transfer detailsVery easy, requiring just virtual payment addressIFSC code is bank & branch specific and difficult to rememberVery easy
6Can recurring billing be setup?NoYesYes
7Time taken for new payee registrationNo need to add payeeTakes minimum 30 minutesLess time consuming
8Are bank account details must for the transferNoYesYes
9Can you reject money received incorrectlyYesNo such option available unless someone reported to the bankNo such option available
10From where is the money credited/debitedFrom bank accountFrom bank accountFrom wallet
11Is there any transfer chargeYes. Rs. 0.50 per transactionAt least Rs. 2.50 & Rs. 5 for NEFT & IMPS respectivelyNo
12Is smartphone must for transferYesNoNo
13Any money collection alert sentYesNoNo
14Any payment approval alert receivedYesNoNo
15Any interest received on the money keptYesYesNo
16Payee registration timeInstantTakes timeInstant
17Can you use app of non-bank account for transactionYesNANA
18Any transfer limitYes. Rs. 1, 00,000Rs. 10, 00,000No
19How many authentication details requiredUPI app login & 4-6 digit M-PIN neededInternet/mobile banking logins and OTP/transaction password/debit card gridInternet/mobile banking logins and OTP/transaction password/debit card grid
20Is OTP required for transferNoYesYes
21How easy is the beneficiary additionVery easy, requiring just virtual payment addressAddition of bank account details and bank approval is needed before transferVery easy
22Are beneficiary details neededOnly virtual ID is requiredPre-addition of details is neededNo
23Does beneficiary addition require bank's approvalNoYesNo
24Is beneficiary addition mandatoryNoYesNo
25Any payment gateway involved during transferNoYesYes
26How many banks offer this payment method21Almost every bank in India offers this payment methodNA
27Can you pay anyone with this payment methodNo. As of now only an individual or merchant.Anyone i.e. individual, merchants, various service providersAnyone i.e. individual, merchants, various service providers
28Can you do eCommerce transactionsNoYesYes

As you can see above it is a very customer centric technology. UPI is certainly a game changer in India’s banking history similar to what ATM was during its beginning. As of now, only banks are allowed to integrate UPI in their apps. However as more and more people start using this technology, UPIs would be scaled up and mobile wallets will also be allowed to integrate it in their apps. As of now, 160 merchants have implemented UPI in their systems.

It is estimated that over 1 million transactions will be done by UPI by the year end i.e. by March 2017. And IMPS and UPI combined the figures is expected to cross 1.2 million transactions.

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