SBI expects Reserve Bank to cut CRR by 1 pc

New Delhi, June 12: Amid economic slowdown and contracting growth in the manufacturing sector, the country's largest lender SBI said it expects 1 per cent cut in Cash Reserve Ratio (CRR) -- the portion of deposits that banks are required to keep with the central bank -- for boosting growth.
"We expect the RBI to cut CRR by 1 per cent...It will ease liquidity significantly and lower interest rate," State Bank of India Chairman Pratip Chaudhuri told reporters on the sidelines of an event here.
The Reserve Bank of India (RBI) in its mid-quarter review of monetary policy on June 18 is widely expected to announce steps to boost sagging economic growth, which dipped to nine-year low of 6.5 per cent in 2011-12.
As per the latest data released by the Central Statistical Organisation (CSO), the industrial production during April slowed to 0.1 per cent from over 5.3 per cent in the corresponding month a year ago. According to the data, the capital goods output declined by 16.3 per cent as against a growth of 6.6 per cent in the same month last year.
Mining output contracted by 3.1 per cent in April, as against growth of 1.6 per cent in the same month last year. In order to ease liquidity position in the market, RBI had on March 9 cut CRR by 0.75 per cent down to 4.75 per cent.
In January, it had reduced CRR by 0.50 per cent to unlock primary liquidity. On the possibility of cut in short-term lending (repo) rate by RBI in its mid-quarter review, Chaudhuri said, "Repo rate cut is meaningless because is more symbolic and (its impact is) not very substantial".

Existing insurance policies doesn't suit now? Here's help

The key objective of any life insurance is to protect future income of the family, in case of untimely death of the bread winner. People tend to buy life insurance policies for varied reason. Some buy it for high returns, others as tax saving instruments and sometimes they are purchased just because their agent has persuaded them to buy the policy.

Pankaj Mathpal, Optima Money Managers suggests what to do with existing insurance policies if any individual already owns that are probably not suitable for them.

Below is the edited script of his interview with CNBC-TV18's Latha Ventakesh and Reema Tendulkar

Q: Very often, people may buy insurance policies that are probably not just suitable for them. What should they do with those existing policies?

A: The key objective of life insurance is to protect future income of family in case of untimely death of the bread winner of the family. Many times these insurance policies are bought expecting high returns from them or just for tax saving. Sometimes these policies are even bought because your agent or your relationship manager (RM) in bank has persuaded you to buy these policies, without explaining the features and benefits and also without sufficient insurance cover.

Now, as per Insurance Regulatory and Development Authority (IRDA) regulations you get 15 days free look period after receipt of policy to understand the policy's terms and condition. In case you are not satisfied you can return it back to the insurance company. Later, if you realise that policy is not suitable, then in such a case you have to see what the benefits are and how many premiums have been paid. Also what sort of policy you have bought.

In case it is an endowment policy and you are in the initial years of your policy and only limited number of premiums has been paid then in that case, it will be advisable to surrender the policy. You may lose a large amount of a premium that you have already paid but if you invest that surrendered proceeds, along with future premiums in a high yield investment scheme then you will not only recover the losses but also get better returns.

If you realise that you have bought a wrong policy in middle of term, when sufficient number of premiums have been paid then in that case, it is better that you convert your policy in a fully paid up policy. This fully paid up policy will stop participating in the future profit of the company but at the time of maturity, you will get your premiums along with accrued benefits. In case you are near to the maturity of policy then it is better that you pay the future premiums remain invested and enjoy all the benefits of policy because if you surrender the policy at this stage, you may not be able to recover the losses.

In a Unit Linked Insurance Plans (ULIP) there are several charges applicable, which are transparent. So in case you have ULIP then look at the surrender charges that are applicable after the lock-in period. If the surrender charges are limited and you feel that you can save the future charges, it is better that you surrender your policy anytime after that lock-in period.

Q: Can various insurance policies be clubbed together?

A: It is not possible to club all polices, every policy is individual. You will have to analyse these polices; their benefits and feature. First, you should check whether you have bought a term insurance policy because a term insurance is the most suitable policy, which serves the purpose of insurance.

If your family members are financially dependent on you, then my first advice is that you should buy a term insurance policy before you think of surrendering any of your policies. Secondly, you see look at the surrender value of your existing policy and the benefits, and accordingly you can take decision.

It is imperative that you first understand your policy, read all the features. Get the reports from the insurance company about their surrender value, unit value, etc and accordingly you take a decision.

Step to Activate SBI Mobile Banking - SBI Freddom

SBI mobile banking application (SBI Freedom) is used to carry out all banking related services through your mobile. Its nothing but opening SBI branch in your mobile. It is equal to SBI internet banking.

Features of  SBI mobile banking

• Funds transfer (within State Bank Groups and all other banks)
• Interbank Mobile Payment Services (IMPS)- way to transfer mony even easier
• Enquiry services (Balance enquiry/ Mini statement)
• Cheque book request
• Demat Enquiry Service
• Bill Payment (Utility bills, credit cards, Insurance premium like LIC), Donations, Subscriptions
• Mobile Top up – recharge your mobile instantly without any extra charges
  
  • M Commerce (Top up of Tatasky, BigTV, SunDirect, DishTV connections and receive recharge pins for DigitalTV/Videocon d2h, SBI life insurance premium)
  • ·         Each and every transaction you will receivet SMS to your number contains transaction id and other details.
  
  

But I found that a lot of users failed during registration and service. So here is a detailed guide about downloading, activation and registration of SBI mobile banking application (SBI FreedoM). 

FIRST STEP

DOWNLOADING SBI FREEDOM TO YOUR MOBILE

The downloading of application can be completed by directly downloading to mobile or first downloading it to computer and then installing it on your mobile. Application can be directly downloaded and installed on your mobile if you have Internet enabled on your mobile phone. You can do so by following two ways.

Send an SMS <MBSREG> <MobileMaker> <MobileModel> to 567676.For example if you have a Nokia 6500 mobile then send MBSREG Nokia 6500 to 567676.You will get a User Id and defsult MPIN and also a WAP link to download the mobile banking application. Click on the link if you have GPRS connection to download.

If you fail to get a link by sending above SMS ,you can visit sbi .co.in and click Mobile Banking under Services section. Or you can directly visit Mobile Banking Application Download page. A lot of mobile handset models are listed there. You have to select your phone model and choose the handset specific version. If you fail to find application for your phone model, you can download the Generic version from the same page.

If your mobile does not have a GPRS/3G Internet connection you can first download the application to computer by visiting links. Once you download it -transfer it to mobile and install.



SECOND STEP

REGISTRATION OF SBI FREEDOM AT MOBILE

Start the application and you will see the screen as shown in image. You have to login using the given user id and MPIN which you received in response to the message you sent for downloading the application. And this completes the process.

In case you have not received the user id and MPIN, Then open sbi freedom, click “register” from the application start menu and get it by SMS. People who download application without sending SMS will need to do this.

THIRD STEP

REGISTRATION OF SBI FREEDOM AT THE SBI ATM

Visit any SBI ATM and register yourself for mobile banking service. For this you have to choose ‘Services’ in the main menu. Select ‘Mobile banking’ and then again select Register. Enter your mobile number and follow the instructions thereafter. After this process you will receive sms that conforms your account integration with your mobile number.



FOURTH STEP

INITIAL SETTINGS

Start the application and change the default MPIN. It is mandatory to change MPIN before using it for the first time. You have to receive conformation message( through sms to you) about MPIN change. Then the service is activated, you can carry out almost all banking related transactions through the application which include statement enquiry, fund transfer, bill payments, cheque book request etc.

Mobile Banking service is FREE to use but you have to pay carrier charges (for usage of SMS or GPRS)

SMS charges per every transaction 3 Rs. But if you change to GPRS, charge for every transaction is nearly 10 paise to 30 paise depends on your network provider. If you have activated GPRS plan no data charges will apply. To change channel from SMS to GPRS, Login to ur mobile freedom, click settings, then click change channel, select GPRS and enter MPIN and send a text message. Before change to GPRS, set proper GPRS settings in your mobile.

The advantage of SBI Mobile banking is that it works even if you don’t have a GPRS/3G enabled phone as it can use SMS for transactions.

If you still have any difficulty in downloading, registration or activation of SBI mobile banking application, let me know in comments.



Note:

Please maintain minimum 25 rupees balance in your mobile. Because you need to send 3 to 4 sms (each sms 3 rupees charge). If you have less than 10 rupees, sometimes these activation sms will fail due to insufficient balance.

You need java enabled phone for this and if it is GPRS enabled it is easy little bit.

Those who are having SBI INTERNET banking, always use the same mobile number to register SBI FREEDOM application, which you are given for SBI INTERNET banking.

Strictly don’t  click anything in sbi application before your ATM registration completes.

Before start please click here to read detailed information about sbi freedom registration, features, settings, installation procedures, FAQs

Things You Should Know While Filing tax return for Wealth

The Wealth Tax Act requires tax to be paid on the wealth held by an individual. Wealth is defined as unproductive assets, such as cash over Rs 50,000, land, motor cars, gold, silver, utensils or bullion and ornaments, luxury cars. Tax at the rate of 1% has to be paid on wealth over Rs 30 lakh, which is calculated according to the provisions of the Act, and a wealth tax return has to be filed. Individuals, Hindu Undivided Families and companies should file their wealth tax return in Form BA, which has to be signed by the assessee.

Due date: The due date for filing wealth tax return is the same as the one applicable to an assessee for filing the income tax return. For individuals and HUFs, the due date is 31 July of the following financial year for which the return is being filed.

Documents: The calculation for the value of each asset, according to Schedule III of the Wealth Tax Act, needs to be attached along with the return. The relevant documents supporting the valuation of the asset must also be attached with the return.

Filing return: The wealth tax return needs to be filed with the income tax office ward/circle applicable for one's income tax return. If a person fails to file the return and pays the applicable wealth tax, he is liable to pay interest at 1% for every month of delay.

Points to note:

> The assets transferred to a spouse or minor child or any other person without consideration are to be included in the net wealth of the individual.

> Any one residential property can be excluded from the wealth of an assessee and a person is free to choose which property he wants to exclude.

> The financial assets, such as investments in shares and mutual funds, are exempt from wealth tax.

The content on this page is courtesy Centre for Investment Education and Learning (CIEL).

Need to Check SBI Life Insurance Online?

Step 1: Visit https://mypolicy.sbilife.co.in/Login/Registration1.aspx and enter you policy number, customer ID, and date of birth. These details are already in your policy bond.

Step 2. If the details entered are valid, information about the policy and the policy holder are displayed on the screen. Edit/Confirm your latest Email address and Phone number. Also fill in the login details and Submit. An email is sent to you, with a link to reset the password. Note: Your correct Email address is important for completing the registration process. Final Step for registration would require you to click the link sent to the below recorded email address.

Step 3. Click on the link sent to your email address provided during registration. You would be automatically directed to a change password screen. Enter the password used during registration and select a new password. On successful change of password, your registration process is complete. Enjoy the services offered exclusively to our registered members.

The procedure is very simple and takes just few minutes to register.

Credit Card

A credit card is a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder's promise to pay for them.[1] The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. A credit card is different from a charge card: a charge card requires the balance to be paid in full each month.[2] In contrast, credit cards allow the consumers a continuing balance of debt, subject to interest being charged. A credit card also differs from a cash card, which can be used like currency by the owner of the card. The size of most credit cards is 85.60 × 53.98 mm (33/8 × 21/8 in),[3] and conform to the ISO/IEC 7810 ID-1 standard. Credit cards have an embossed bank card number complying with the ISO/IEC 7812 numbering standard.

Debit card

A debit card (also known as a bank card or check card) is a plastic card that provides the cardholder electronic access to his or her bank account(s) at a financial institution. Some cards have a stored value with which a payment is made, while most relay a message to the cardholder's bank to withdraw funds from a designated account in favor of the payee's designated bank account. The card can be used as an alternative payment method to cash when making purchases. In some cases, the primary account number is assigned exclusively for use on the Internet and there is no physical card