It is not rare to see credit cards, which are seen as tools of convenience, turning into weapons of financial destruction for card holders, often due to lack of knowledge about their correct usage. Despite being constantly reminded about this, many fail to keep themselves abreast of the charges and other terms and conditions pertaining to a credit card. The realisation usually sets in only when their monthly credit card statement arrives at their doorsteps, showing an amount in excess of their estimation.
The first step to avoid mistakes other card users generally make is to take a close look at the Most Important Terms and Conditions (MITC) list, which is put up on the card issuers’ website. In addition to finance charges (interest charged on overdue amount payable to the company) and late payment fees, which are commonly known, it contains the details of charges payable by the user on other counts.
For instance, it may be tempting to use your credit card to withdraw cash, if your bank balance is inadequate. However, you need to remember that cash withdrawal at ATMs using a credit card attracts an upfront charge of nearly 2.5% of the amount. What’s more, in case of such transactions, the payment becomes due from the date of withdrawal and not after the expiry of the grace period, which is the case with transactions where the cards are swiped at Point of Sale (POS) terminals. The rate of interest could range from 39-45% per annum.
Besides, if you do not monitor your card usage, there is a chance that you could exceed your credit limit, attracting an overdrawing charge of around 2.5%, or `500, whichever is higher. Also, depending on the bank’s cheque collection policy, you may have to shell out charges for making credit card bill payment through an outstation cheque. This could be around 1% of the cheque value, or `50, for every instrument.
Finally, another term that you need to be aware of relates to non-payment of dues. If you maintain another account with the bank which has issued the credit card to you and have not been paying the card bill as per schedule, the bank has the right to use the money lying in your account to clear your credit card outstanding, without seeking your consent.
Saturday, October 9, 2010
Thursday, October 7, 2010
Govt plans low rates home loans for paramilitary personnel
In an attempt to make home ownership easier for paramilitary personnel, the Central government is planning to launch a scheme under which home loans are made available to them at concessional rates. “The scheme will allow a soldier from a paramilitary force to avail cheaper home loans at least two years prior to his retirement,” a senior home ministry officer told Hindustan Times.
The official added that the government is formulating the exact modalities of this scheme, such as loans rates and tenures and has initiated talks with several banks for its implementation.
“The State Bank of India has in-principle agreed to be part of this scheme,” the official said.
In fact, SBI has already been closely associated with the armed forces. The bank had recently launched Defence Salary Package (DSP) for the Indian Army whereby it aims to open close to 12 lakh accounts of Army personnel under the scheme.
The DSP offers free drafts, cheque books, fund transfers and ATM cards to the soldiers of Indian Army to any of SBI Group’s over 15,000 branches.
The scheme also offers home, auto and personal loans to Army personnel at 25 basis points lower than the floor rate.
The official added that the government is formulating the exact modalities of this scheme, such as loans rates and tenures and has initiated talks with several banks for its implementation.
“The State Bank of India has in-principle agreed to be part of this scheme,” the official said.
In fact, SBI has already been closely associated with the armed forces. The bank had recently launched Defence Salary Package (DSP) for the Indian Army whereby it aims to open close to 12 lakh accounts of Army personnel under the scheme.
The DSP offers free drafts, cheque books, fund transfers and ATM cards to the soldiers of Indian Army to any of SBI Group’s over 15,000 branches.
The scheme also offers home, auto and personal loans to Army personnel at 25 basis points lower than the floor rate.
Indian Travel Website say Special Offer for HDFC Bank Credit Card Customers
Indian travel website in association with HDFC bank brings a special offer for travelers in India. The website have offered up to 10% discount on all travel booking including the discount coupons / promo code which are valid for Domestic & International Air Tickets and Domestic Hotel / holiday bookings.
According to the website, the promotion will last till 31st Dec, 2010. The discount may be extended for satisfaction of the customers holding HDFC Credit card. Customers have to submit the discount coupon / promo code “Code” followed by 6 digit of the Credit Card for eg. "Code123456". Discount will not be valid on cancelled tickets/bookings or for charge back transactions. The discount will not be valid if any one of the air ticket is canceled.
Now travelers can enjoy Domestic Holidays with in India with the extension discount of 20% on Holiday booking. The discount will not be valid if a Hotel is booked on Discount offer. At the same time, the promotion code can not be exchanged.
The website is planning to display more offers during festival season for the comfort of travelers. Travel websites are expecting new seasonal offers from banks so as to attract customers to their website. Even though the vacation season has ended most of the travel websites generates good sales due to various events which are to be held at India. So enjoy a good trip with the offers provided by online travel agents.
According to the website, the promotion will last till 31st Dec, 2010. The discount may be extended for satisfaction of the customers holding HDFC Credit card. Customers have to submit the discount coupon / promo code “Code” followed by 6 digit of the Credit Card for eg. "Code123456". Discount will not be valid on cancelled tickets/bookings or for charge back transactions. The discount will not be valid if any one of the air ticket is canceled.
Now travelers can enjoy Domestic Holidays with in India with the extension discount of 20% on Holiday booking. The discount will not be valid if a Hotel is booked on Discount offer. At the same time, the promotion code can not be exchanged.
The website is planning to display more offers during festival season for the comfort of travelers. Travel websites are expecting new seasonal offers from banks so as to attract customers to their website. Even though the vacation season has ended most of the travel websites generates good sales due to various events which are to be held at India. So enjoy a good trip with the offers provided by online travel agents.
Tuesday, October 5, 2010
Citibank launches credit card for normal flyers
Citibank launched a new credit card that will give frequent flyers the chance to earn mileage points when they fly on more than 50 domestic and international airlines.
Till now, air travellers could only accumulate mileage points by flying on a single airline.
"The Citibank PremierMiles Credit Card differentiates itself by offering frequent flyers a 'universal' mileage platform that enables them the unique freedom and flexibility to earn miles on their travel on over 50 domestic and international airlines," Citibank said in a statement.
The key benefit of the Citibank credit card is that it frees customers from having to choose one airline loyalty programme over another. "The feature-rich card offers a superior earn rate of 10 PremierMiles per Rs 100 on all airline spends and a preferential interest rate," it added.
With an annual fee of Rs 5,000, card members will receive a first-year activation bonus of 5,000 PremierMiles.
"An annual spending of Rs 4 lakh in a year earns cardholders a bonus 2,500 PremierMiles. All non-airline purchases on the card earn customers 2.5 PremierMiles for every Rs 100 spent," Citi said.
Announcing the launch, N Rajashekaran, Citi India Country Business Manager, Global Consumer Group, said, "Citibank PremierMiles is a powerful addition to our bouquet of cards and will build on the success and popularity of this platform across multiple markets in Asia."
Till now, air travellers could only accumulate mileage points by flying on a single airline.
"The Citibank PremierMiles Credit Card differentiates itself by offering frequent flyers a 'universal' mileage platform that enables them the unique freedom and flexibility to earn miles on their travel on over 50 domestic and international airlines," Citibank said in a statement.
The key benefit of the Citibank credit card is that it frees customers from having to choose one airline loyalty programme over another. "The feature-rich card offers a superior earn rate of 10 PremierMiles per Rs 100 on all airline spends and a preferential interest rate," it added.
With an annual fee of Rs 5,000, card members will receive a first-year activation bonus of 5,000 PremierMiles.
"An annual spending of Rs 4 lakh in a year earns cardholders a bonus 2,500 PremierMiles. All non-airline purchases on the card earn customers 2.5 PremierMiles for every Rs 100 spent," Citi said.
Announcing the launch, N Rajashekaran, Citi India Country Business Manager, Global Consumer Group, said, "Citibank PremierMiles is a powerful addition to our bouquet of cards and will build on the success and popularity of this platform across multiple markets in Asia."
Tuesday, September 28, 2010
Towards an extra green revolution
Almost immediately, the National Food Security Act will become law. The ruling United Progressive Alliance flagship social security programme of providing every Below the Poverty Line (BPL) family with 25 kg of rice or wheat at Rs 3 per kg per month is a welcome step to alleviate some of the human trauma that haunts the poor in our country. The government also hopes that the Act will secure freedom from hunger for 40 per cent of the population. But a successful implementation of the Act requires a boost in food production. Can it be done today?
It has happened once before in our country. India's food output, which was 72.3 million tonnes in 1966, rose to 108.4 million tonnes by 1971. It was made possible by two men with distinct rural backgrounds Prime Minister Lal Bahadur Shastri and food and agriculture minister C Subramaniam. Subramaniam, brought in by Shastri to tackle the looming food crisis, was the architect of reforms in the agriculture sector. He shook up the bureaucracy, introduced yield increasing technologies, created producer price incentives and established new institutions like the Agriculture Price Commission and Food Corporation of India during this period. This transformed India from a food-deficit to food-surplus nation in a short span of five years in what is now popularly known as the 'era of the Green Revolution'.
Today, agriculture is 18 per cent of the gross domestic product and the country is in the midst of transitioning into a market economy. To repeat the success of the 'Green Revolution', the agriculture sector too needs to be subjected to market forces. But many of the public institutions functioning in a market economy that can be expected to bring about major policy changes lack board representation for the agriculture sector. This has proved to be a hindrance to sustainable agriculture and improving food production. Important public institutions like the RBI and nationalised banks, the country's premier stock exchanges BSE and NSE and associations like the Federation of Indian Chambers of Commerce and Industry (FICCI) and Confederation of Indian Industry (CII) should be mandated to fulfil their obligations to the agriculture sector.
Lack of representation on the boards of the RBI and nationalised banks has denied the farming community the necessary financial instruments required for farming to be profitable. Many of the credit schemes like Kisan Credit Card, investment schemes like Rural Infrastructure Development Fund and insurance schemes like crop insurance throughout the production process have failed because of a lack of initiative from nationalised banks. While micro-payment systems and mobile banking are flourishing in Africa, the RBI has continued to shun technology options to reach rural customers. When it is time to appoint the next RBI governor, the government must give serious consideration to an eminent agro-economist heading the central bank. As a shareholder in nationalised banks, the government must nominate representatives from the agriculture sector to the boards of these banks. This could send the right message to the farming community and to the country at large that the government is serious about tackling agriculture sector finance problems.
When it comes to the Bombay and national stock exchanges, everyone recognises the need for private investment in the agriculture sector. But the sector is unrepresented in these freest of the free market institutions. Therefore, it comes as no surprise that the exchange authorities have neither introduced an agro-index nor do agro-companies find representation in the Sensex or Nifty. Despite the listing of multibillion- dollar agro companies like Jain Irrigation, Tata Tea and United Phosphorus, authorities at the stock exchanges do not see merit in representing 18 per cent of the economy in the indices that are supposed to be barometers of the entire Indian economy. Introducing an agro-index along with agro-companies finding representation in Sensex and Nifty will go a long way in bringing much-needed private investment to the agriculture sector.
offers and discounts on Hotels In Shimla
The stated mission of FICCI and the CII is to work closely with the government on policy issues, competitiveness and expanding business opportunities for industry. But rarely do these industry associations advocate agriculture reforms and their silence was palpable during the BT-technology debate. Indian agriculture suffers from a distorted market, laws that stifle private investment, controlled prices and poor infrastructure that requires policy changes from the central government. Land consolidation and marketing reforms are needed at the state level. FICCI and CII can be ardent advocates for policy changes at the Centre while their state chapters can do the same with local governments. To proactively recommend policy changes, due representation should be given to the agriculture sector on the boards of these two industry associations.
Effective implementation of the Food Security Act along with India's desire to achieve double digit economic growth and keep food prices in check will require food output to be doubled in the next decade. In order to boost agriculture output, major policy changes are required at every level of government. Agriculture needs board representation proportionate to its strength in the economy in important public institutions to triumph the multidimensional problems afflicting the sector.
It has happened once before in our country. India's food output, which was 72.3 million tonnes in 1966, rose to 108.4 million tonnes by 1971. It was made possible by two men with distinct rural backgrounds Prime Minister Lal Bahadur Shastri and food and agriculture minister C Subramaniam. Subramaniam, brought in by Shastri to tackle the looming food crisis, was the architect of reforms in the agriculture sector. He shook up the bureaucracy, introduced yield increasing technologies, created producer price incentives and established new institutions like the Agriculture Price Commission and Food Corporation of India during this period. This transformed India from a food-deficit to food-surplus nation in a short span of five years in what is now popularly known as the 'era of the Green Revolution'.
Today, agriculture is 18 per cent of the gross domestic product and the country is in the midst of transitioning into a market economy. To repeat the success of the 'Green Revolution', the agriculture sector too needs to be subjected to market forces. But many of the public institutions functioning in a market economy that can be expected to bring about major policy changes lack board representation for the agriculture sector. This has proved to be a hindrance to sustainable agriculture and improving food production. Important public institutions like the RBI and nationalised banks, the country's premier stock exchanges BSE and NSE and associations like the Federation of Indian Chambers of Commerce and Industry (FICCI) and Confederation of Indian Industry (CII) should be mandated to fulfil their obligations to the agriculture sector.
Lack of representation on the boards of the RBI and nationalised banks has denied the farming community the necessary financial instruments required for farming to be profitable. Many of the credit schemes like Kisan Credit Card, investment schemes like Rural Infrastructure Development Fund and insurance schemes like crop insurance throughout the production process have failed because of a lack of initiative from nationalised banks. While micro-payment systems and mobile banking are flourishing in Africa, the RBI has continued to shun technology options to reach rural customers. When it is time to appoint the next RBI governor, the government must give serious consideration to an eminent agro-economist heading the central bank. As a shareholder in nationalised banks, the government must nominate representatives from the agriculture sector to the boards of these banks. This could send the right message to the farming community and to the country at large that the government is serious about tackling agriculture sector finance problems.
When it comes to the Bombay and national stock exchanges, everyone recognises the need for private investment in the agriculture sector. But the sector is unrepresented in these freest of the free market institutions. Therefore, it comes as no surprise that the exchange authorities have neither introduced an agro-index nor do agro-companies find representation in the Sensex or Nifty. Despite the listing of multibillion- dollar agro companies like Jain Irrigation, Tata Tea and United Phosphorus, authorities at the stock exchanges do not see merit in representing 18 per cent of the economy in the indices that are supposed to be barometers of the entire Indian economy. Introducing an agro-index along with agro-companies finding representation in Sensex and Nifty will go a long way in bringing much-needed private investment to the agriculture sector.
offers and discounts on Hotels In Shimla
The stated mission of FICCI and the CII is to work closely with the government on policy issues, competitiveness and expanding business opportunities for industry. But rarely do these industry associations advocate agriculture reforms and their silence was palpable during the BT-technology debate. Indian agriculture suffers from a distorted market, laws that stifle private investment, controlled prices and poor infrastructure that requires policy changes from the central government. Land consolidation and marketing reforms are needed at the state level. FICCI and CII can be ardent advocates for policy changes at the Centre while their state chapters can do the same with local governments. To proactively recommend policy changes, due representation should be given to the agriculture sector on the boards of these two industry associations.
Effective implementation of the Food Security Act along with India's desire to achieve double digit economic growth and keep food prices in check will require food output to be doubled in the next decade. In order to boost agriculture output, major policy changes are required at every level of government. Agriculture needs board representation proportionate to its strength in the economy in important public institutions to triumph the multidimensional problems afflicting the sector.
Monday, September 27, 2010
International credit card fraudsters under arrest in Ahmedabad
Timely thinking on the part of a mall manager helped crime branch sleuths nab a duo with fake international credit cards on Sunday. Further, it saved at least nine NRIs from being duped by a gang reportedly operating a fake international credit card racket in London, and apparently in various other countries as well.
Crime branch officials caught 28-year old Kinjal Joshi, a resident of Prerna Viraj Tower-II in Satellite, and his friend Jay Joshi (29), a resident of Shastrinagar in Naranpura. The two had been shopping at the city's Central Mall with a forged credit card. Later, the police allegedly discovered eight more fake credit cards from the two.
As per the chronology of the incident, the two accused made some purchases from the mall on Saturday afternoon. They produced a credit card for the payment. However, while one of them signed on the printout of the bill, the accountant noticed that the signature was not tallying.
"Staff members at the counter sensed that something was wrong with the card. They immediately informed their manager. They then informed an Axis Bank official, as it is an Axis Bank
swapping machine that is being used in the mall," said a crime branch official.
The mall's manager Ashish Gargi reportedly informed the police after verifying that the card was forged. When the police arrived, they are said to have discovered eight other such cards from the two.
According to the police, Kinjal and Jay used to live in London in a rented apartment, four years back. They were students, pursuing an MBA programme. Later, Jay returned to Ahmedabad, and is said to be presently unemployed. Kinjal, on his part, works as a deputy manager in a casino in London. He is reported to have arrived in the city a couple of days back, to meet his family.
Crime branch officials caught 28-year old Kinjal Joshi, a resident of Prerna Viraj Tower-II in Satellite, and his friend Jay Joshi (29), a resident of Shastrinagar in Naranpura. The two had been shopping at the city's Central Mall with a forged credit card. Later, the police allegedly discovered eight more fake credit cards from the two.
As per the chronology of the incident, the two accused made some purchases from the mall on Saturday afternoon. They produced a credit card for the payment. However, while one of them signed on the printout of the bill, the accountant noticed that the signature was not tallying.
"Staff members at the counter sensed that something was wrong with the card. They immediately informed their manager. They then informed an Axis Bank official, as it is an Axis Bank
swapping machine that is being used in the mall," said a crime branch official.
The mall's manager Ashish Gargi reportedly informed the police after verifying that the card was forged. When the police arrived, they are said to have discovered eight other such cards from the two.
According to the police, Kinjal and Jay used to live in London in a rented apartment, four years back. They were students, pursuing an MBA programme. Later, Jay returned to Ahmedabad, and is said to be presently unemployed. Kinjal, on his part, works as a deputy manager in a casino in London. He is reported to have arrived in the city a couple of days back, to meet his family.
Saturday, September 25, 2010
No SMS services to banks customers for transactions
Bank customers and equity trading account holders have stopped getting transaction alerts on their mobiles as the government has put a ban on bulk SMS service in wake of the pending judgement in the Ayodhya title suit.
In view of the Government of India directive to mobile operators, all bulk SMS messages have been banned in all service areas till further notice. The customers will not receive SMS alerts or messages during this period, ICICI Bank informed its customer through its website.
Usually, a bank customer of gets SMS alert for their transaction done through any mean either through ATM or internet.
At the same time, credit card transaction is reported to the individual customers within few minutes after the payment is made.
As a result of this, customers may not get information of fraudulent transaction taking place during the intervening period as the ban has been extended till September 30.
"We would advise you to exercise additional caution in your banking and credit card transactions," HDFC Bank informed its customers.
GSM lobby group COAI, today said it has requested the Telecom Department to relax the ban for certain essential services for the benefit of the subscribers.
"We have already written to DoT to relax the ban for essential services. We are yet to hear from them," said COAI Director General Rajan Mattews.
According to a senior official of Air2web, a mobile messaging service provider, alerts generated by bank is not being sent to customers as it is being treated as under bulk SMS category by mobile operators.
The alerts generated by bank is routed to mobile operators through middleware firm like Air2web which has about 35 banks as customers including State Bank of India, HDFC Bank, ICICI Bank, Bank of Baroda, IDBI Bank and UCO Bank.
The ban has been imposed to prevent any rumour being spread to fan communal disturbance in the wake of verdict on the Ayodhya title suit scheduled on September 30.
"The Ministry of Communications and Information Technology has today issued orders in consultation with the Ministry of Home Affairs to all Mobile Telecom Service Providers in the country that all bulk SMS and all bulk MMS messages shall remain banned in all service areas till September 30," the Ministry of Communications and Information Technology said in a statement today.
The order was issued to all mobile telecom service providers in the country for "banning all bulk SMSes and MMSes in all service areas with immediate effect till September 30".
In view of the Government of India directive to mobile operators, all bulk SMS messages have been banned in all service areas till further notice. The customers will not receive SMS alerts or messages during this period, ICICI Bank informed its customer through its website.
Usually, a bank customer of gets SMS alert for their transaction done through any mean either through ATM or internet.
At the same time, credit card transaction is reported to the individual customers within few minutes after the payment is made.
As a result of this, customers may not get information of fraudulent transaction taking place during the intervening period as the ban has been extended till September 30.
"We would advise you to exercise additional caution in your banking and credit card transactions," HDFC Bank informed its customers.
GSM lobby group COAI, today said it has requested the Telecom Department to relax the ban for certain essential services for the benefit of the subscribers.
"We have already written to DoT to relax the ban for essential services. We are yet to hear from them," said COAI Director General Rajan Mattews.
According to a senior official of Air2web, a mobile messaging service provider, alerts generated by bank is not being sent to customers as it is being treated as under bulk SMS category by mobile operators.
The alerts generated by bank is routed to mobile operators through middleware firm like Air2web which has about 35 banks as customers including State Bank of India, HDFC Bank, ICICI Bank, Bank of Baroda, IDBI Bank and UCO Bank.
The ban has been imposed to prevent any rumour being spread to fan communal disturbance in the wake of verdict on the Ayodhya title suit scheduled on September 30.
"The Ministry of Communications and Information Technology has today issued orders in consultation with the Ministry of Home Affairs to all Mobile Telecom Service Providers in the country that all bulk SMS and all bulk MMS messages shall remain banned in all service areas till September 30," the Ministry of Communications and Information Technology said in a statement today.
The order was issued to all mobile telecom service providers in the country for "banning all bulk SMSes and MMSes in all service areas with immediate effect till September 30".
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