Tag: Principles of Marketing

MoneyGram International, Inc. is an American cross-border P2P payments and money transfer company based in the United States with headquarters in Dallas, Texas. It has an operations center in St. Louis Park, Minnesota and regional and local offices around the world. MoneyGram businesses are divided into two categories: Global Funds Transfers and Financial Paper Products. The company provides its service to individuals and businesses through a network of agents and financial institutions.

In 2014, MoneyGram was the second largest provider of money transfers in the world. The company operates in more than 200 countries and territories with a global network of about 347,000 agent offices.

MoneyGram Systems (1988–1997)

MoneyGram was formed in 1988 as a subsidiary of Integrated Payment Systems Inc. Integrated Payment Systems was a subsidiary of First Data Corporation, which was itself a subsidiary of American Express. In 1992, First Data was spun off from American Express and publicly traded on the New York Stock Exchange. First Data Corporation later merged with First Financial, the owners of rival Western Union. In order to approve the merger, the Federal Trade Commission forced First Data to sell Integrated Payment Systems.

Thomas Cook Global Foreign Exchange, under the stewardship of John Bavister, launched a re-engineered money transfer service in 1994. Branded as MoneyGram, the venture saw the partnering of the global travel giant with First Data Corp.

In 1996, Integrated Payment Systems, the nation’s second largest non-bank consumer money transfer business, became its own publicly traded company and was renamed MoneyGram Payment Systems Inc. In 1997, James F. Calvano, former president of Western Union, became MoneyGram Payment Systems CEO. By the late 1990s, MoneyGram Payment Systems had served customers at over 22,000 locations in 100 countries.

MoneyGram International Ltd. was established in 1997 by MoneyGram Payment Systems Inc. and Thomas Cook, a year after the company had gone public. At the time when MoneyGram International was established, MoneyGram Payment Systems owned 51 percent of the company, while the other 49 percent was owned by the Thomas Cook Group.

MoneyGram International (1998–present)

In April 1998, Viad Corp acquired MoneyGram Payment Systems Inc. for $287 million. MoneyGram was then folded into Viad’s Travelers Express in Minneapolis. In November 2000, the MoneyGram brand and business was sold to Travelex as part of its acquisition of Thomas Cook Financial Services for £400m. In 2003, Travelers Express gained full ownership of the MoneyGram network, including MoneyGram International. Later that year, Viad spun off Travelers Express as an independent company. In January 2004 and Travelers Express was renamed to MoneyGram International Inc. In June 2004, Viad sold MoneyGram and it became a publicly traded, individual entity.

By 2006, MoneyGram International had expanded internationally to include over 96,000 agents in regions such as the Asian-Pacific, Eastern Europe, and Central America. The company had also introduced additional services such as bill payment and online money transfers.

During the financial crisis of 2007–2008, MoneyGram’s shares fell 96 percent from 2007 to 2009. It lost more than $1.6 billion from investments in securities backed by risky mortgages in 2008, and the losses led the company to sell a majority stake to Thomas H. Lee Partners and Goldman Sachs in exchange for a cash infusion. During the drop, U.S. Bancorp shifted its money transfer services to Western Union. The company became profitable again in 2009.

Amid MoneyGram’s turnaround, Pamela Patsley became the executive chairwoman of the company in January 2009 and was later named CEO in September of that year. In November 2010, MoneyGram officially relocated its global headquarters to the city of Dallas, Texas. The company continues to maintain global operations and information technology centers in Minneapolis, Minnesota.

In 2013, MoneyGram began considering a sale. In 2014, MoneyGram lost a relationship with Wal-Mart Stores and then began restructuring to cut costs. From their peak in 2013 until late 2015, shares fell about 70%. MoneyGram closed a call center in Lakewood, Colorado resulting in over 500 layoffs. Furthermore, MoneyGram closed its 376-person Brooklyn Center operation in 2015. MoneyGram has moved numerous positions to Warsaw, Poland from its Colorado and Minnesota locations for cut costs further. In 2015, the company’s agent network in Africa reached 25,000 locations, including an agreement with the Mauritius Post Office.

Between late October 2016 and January 2017, MoneyGram’s shares doubled in value. On January 26, 2017, Ant Financial Services Group announced a deal to acquire MoneyGram International for $880 million; the deal subsequently collapsed after it was rejected by the Committee on Foreign Investment in the United States.

On June 17th 2019, MoneyGram announced they were partnering with Ripple to utilize the digital asset XRP for cross-border remittance.

In July 2020, Digital Financial Services LLC and MoneyGram have collaborated to provide overseas remittance services in the UAE. Through this partnership, eWallet consumers will enable real-time foreign money transfers to friends and families in more than 200 countries and territories around the world through an vast network of mobile wallet providers, bank account deposit facilities and more than 350,000 walk-in locations.

If you’re sending money online:

• Set up a MoneyGram account, if you don’t already have one.
• Log into your account.
• Enter the country you’re sending to, then the amount you want to send. Remember, MoneyGram will add a fee to the figure you’re charged.
• Give the receiver’s details. The name you give must be their full, legal name, meaning the one that appears on their official ID. They’ll need to prove their identity to pick up the funds, so it’s important to check you get this right.
• Say how the receiver wants to pick up their money to a bank account or mobile wallet, or in cash.
• Choose how you want to pay. You can fund the transfer either from your bank account, or with a credit or debit card. Be aware that if you choose to pay by card, your issuer is likely to charge a fee.
• Give details about yourself. This is needed so that MoneyGram can check your identity. These will include your date of birth and email address.
• Check the information you’ve given is correct, then send.
• If MoneyGram needs further information, you’ll be contacted via the email address you gave, so it needs to be one you check every day.

If you’re sending money in person:

• You can only send money in cash using this method, not with a credit or debit card.
• Find the MoneyGram location that’s most convenient for you. You can use MoneyGram’s location finder to help you.
• Make sure you have your photo ID with you. You’ll need to show this to the agent.
• You’ll need to provide the recipient’s full, legal name as listed on their own ID.
• You’ll also need to know the recipient’s location, plus the amount you want to send.
• Remember that MoneyGram will charge a fee for sending money internationally, so make sure you have enough to cover that, as well as the amount you’re sending.
• Give the agent the correct amount, including the fee.
• You’ll get an eight-digit reference number. Let your recipient know this as soon as possible, as they’ll need it when picking up the money.

If you’re sending to an international bank account:

• Log into your MoneyGram online account. If you don’t have one already, you’ll need to set it up first.
• Provide the full, legal name of the person you’re sending to.
• Select the “Account Deposit” option.
• You’ll now see the total cost including fees, as well as the exchange rate you’re getting.
• You may want to compare the total costs with a specialist money service, such as Wise. The Wise borderless account is an alternative way to send money internationally; it also gives you an account you can use to receive funds in dozens of currencies.
• Choose how you want to pay. This can be with a credit or debit card, or if you prefer you can pay straight from your own account. Paying with a credit card can cost a little extra due to card issuer fees.
• Enter the requested personal information. This is to ensure MoneyGram can verify your identity.
• Provide full details of the recipient. You’ll need to know their bank account number.
• Check the information you’ve given is correct, then send.

If you’re sending to a mobile wallet:

• Check the country you’re sending to offers this service. MoneyGram can only send to wallets with M-Pesa accounts in Tanzania, Kenya, and Romania; or to Econet wallets in Zimbabwe.
• If you don’t meet the requirements in step 1, you’ll need to use a different method to send your money. If you do meet them, read on.
• You’ll need to give the mobile number of the person you’re sending money to, including the international dial code. Check with them first that the number is linked to their wallet, otherwise the transaction won’t work.
• The international dial codes you’ll need to know are: +40 for Romania, +254 for Kenya, +255 for Tanzania, and +263 for Zimbabwe.
• Choose whether to pay with cash, or with a credit or debit card. Remember that credit card transactions may come with a fee added on by your card issuer.
• Provide the information requested about yourself.
• Check everything is correct, then commit to send.

Products

MoneyGram products

MoneyGram Money Transfer

MoneyGram Bill Payments Services allowing consumers to make urgent payments or pay routine bills to certain creditors.

MoneyGram As a service; enables enterprise customers to leverage the company’s core capabilities as productized service offerings to meet their various business needs and add services and scale.

Financial paper

Money Orders: MoneyGram is the second largest money order supplier.

Official Checks: MoneyGram offers official check outsourcing services which are available to financial institutions in the United States. Official Checks are used by consumers where a payee requires a check drawn on a bank and by financial institutions to pay their own obligations.

Cryptocurrency

Cryptocurrency Cash Network: Through a relationship with Coinme, consumers can purchase or exchange bitcoin for U.S. dollars at select MoneyGram retail locations.

Money transfer generally refers to one of the following cashless modes of payment or payment systems:

• Electronic funds transfer, an umbrella term mostly used for bank card-based payments
• Wire transfer, an international expedited bank-to-bank funds transfer
• Giro, also known as direct deposit
• Money order, transfer by postal cheque, money gram or others
• Postal order, purchased at a post office and is payable at another post office to the named recipient

It can also refer to the following cash-based wire transfer systems:

• al-Barakat, an informal money transfer system originating in the Arab world
• Hawala (also known as hundi), an informal system primarily used to send money to and from the Middle East, North Africa, the Horn of Africa, and India, Pakistan, Bangladesh and Nepal
• Remittance, a transfer of money by a foreign worker to his or her home country
• Currency exchange, transfer for of one currency to another

Money Order

A money order is a payment order for a pre-specified amount of money. As it is required that the funds be prepaid for the amount shown on it, it is a more trusted method of payment than a cheque.

The money order system was established by a private firm in Great Britain in 1792 and was expensive and not very successful. Around 1836 it was sold to another private firm which lowered the fees, significantly increasing the popularity and usage of the system. The Post Office noted the success and profitability, and it took over the system in 1838. Fees were further reduced and usage increased further, making the money order system reasonably profitable. The only draw-back was the need to send an advance to the paying post office before payment could be tendered to the recipient of the order. This drawback was likely the primary incentive for establishment of the Postal Order System on 1 January 1881.

In India, a money order is a service provided by the Indian Postal Service. A payer who wants to send money to a payee pays the amount and a small commission at a post office and receives a receipt for the same. The amount is then delivered as cash to the payee after a few days by a postal employee, at the address specified by the payer. A receipt from the payee is collected and delivered back to the payer at his address. This is more reliable and safer than sending cash in the mail.

It is commonly used for transferring funds to a payee who is in a remote, rural area, where banks may not be conveniently accessible or where many people may not use a bank account at all. Money orders are the most economical way of sending money in India for small amounts.

E-Money order

Electronic Money Order is a web based rapid money transfer service offered by India Post between two individuals within India. Money booked through Electronic Money Order can be disbursed within 24 hours. A minimum of 1.00 INR and a maximum of 5000.00 INR can be sent through Electronic Money Order.

MO takes around 3 days for delivery and old Money Order around 7-10 days. Secondly you can no more specify any message along with eMO since there is no place for it. Though there is place for 2 digit message code which is can be chosen by you.

Senior Citizens Savings Schemes can be availed by any individual above the age of 60 years. They are effective savings options for the long term and offer attractive features and unmatched security.

Senior Citizens’ Saving Scheme is one of the Post Office savings schemes. You can open an account under SCSS in the Post Office like you can open it in any authorised bank. Like any other Post Office saving schemes, you can visit the nearest Post Office branch or the branch where you hold a savings account to open the SCSS account.

A Senior Citizens’ Saving Scheme (SCSS) account is an account that offers retirement benefits and is backed by the Government of India. Senior citizens residing in India can avail the benefits of the account by investing a lump sum in the scheme, either individually or jointly. The account will provide access to regular income post-retirement along with income tax benefits.

Who are eligible:

• Senior citizens of India aged 60 years or above.
• Citizens who have opted for the Voluntary Retirement Scheme (VRS) or Superannuation and in the age bracket of 55-60 years.
• Retired defense personnel above 50 years of age and below 60 years of age
• HUFs and NRIs are not allowed to invest in this scheme.
• The investment has to be done within a month from the date of receiving the retirement benefits.

Reasons:

• SCSS is an Indian government-sponsored investment scheme and hence is considered safe and most reliable.
• SCSS account includes a simple process and can be opened at any authorized bank or any post office in India.
• The account is transferable across India.
• The scheme offers a high interest rate on the deposit.
• Get an income tax deduction of up to Rs.1.5 lakh under Section 80C of the Indian Tax Act, 1961.
• The 5-year tenure of the account can be extended for another 3 years.

The Sukanya Samriddhi Yojana scheme is aimed at betterment of girl child in the country. Sukanya Samriddhi scheme has been launched to offer a means of saving to the girl child in every family. Tenure of SSY is 21 years from the date of opening of the account or till the marriage of the girl after she attains the age of 18 years.

Aim:

• To stop gender discrimination of children and abolish the practice of sex determination.
• To ensure the survival and protection of girls.
• To ensure higher participation of girls in education and other areas.

Sukanya Samriddhi Yojana Information

Tax Benefit:

• Investments made in the SSY scheme are eligible for deductions under Section 80C, subject to a maximum cap of Rs 1.5 lakh.
• The interest that accrues against this account which gets compounded annually is also exempt from tax.
• The proceeds received upon maturity/withdrawal are also exempt from income tax.

A traditional insurance plan pays out a lump sum assured in the event of the death of the policyholder. The beneficiaries/dependents/nominees of the life insured receive a benefit (called a death benefit) if the worst should come to pass for the insurance holder. An endowment plan works the same way, but has an additional clause that states that a lump sum payment will be made to the insurance holder if he or she survives till the end of a specified period known as the “Maturity period”, “endowment policy term” or “Survival term”. There are variations to the payout clause in endowment policies some companies have a lump sum payout on the detection of a critical illness, or other life changing events.

Types:

• Full/With Profit Endowment Under this plan, the basic amount i.e. sum assured will be provided to the policy holder. This amount is guaranteed right from the start of the policy. However, the final payout provided is comparatively higher depending on the bonuses announced from time to time by the company. The bonuses once declared form a part of the policy are paid out in the event of death of the policyholder or maturity of the policy.
• Unit Linked Endowment Plan Under Unit Linked policies, the insurance premiums are bifurcated into multiple units held under a specific investment fund which can be chosen by the policyholders.
• Low-Cost Endowment This type of endowment plan was designed with an intention of allowing the policyholder to accumulate the funds which have to be paid after a specified time period, usually mortgage.
• Non-profit Endowment These are endowment plans which do not participate in the profits generated by the company (bonuses). However, in order to make them competitive against other products, companies offer guaranteed additions in these plans which help in generating returns for the policy holder.

Benefits of Endowment Policies:

• An endowment policy will pay out a sizeable lump sum amount at the end of the policy term i.e. once the policy has matured.
• An endowment policy will provide insurance cover during the policy term.
• An endowment policy works to serve a dual purpose. Not only does it work as an insurance policy but also serves as a long-term investment offering decent returns.
• In terms of investing, endowment policies are relatively safer than other types of investments and offer returns which are close to those offered by mutual funds.
• Endowment policies come with tax benefits.
• Endowment policies enable long-term savings.
• With an endowment policy, you can be assured of receiving a considerable amount upon maturity.
• Policy holders have the options of opting for additional riders which provide cover for specific illnesses, critical illnesses, disabilities, etc.
• Most will extend insurance coverage and the promise of benefits even after the maturity date, in some cases up to a time when the life insured attains the age of 100.

On February 1, 1884, Postal Life Insurance (PLI), the oldest insurer in the country was introduced under the Queen Empress of India with the express approval of the Secretary of State (for India) to Her Majesty. The scheme at the time was intended as welfare scheme to benefit Postal service employees. It was later extended to employees of Telegraph department in 1884. In its early initiation days the maximum insurance amount limit was Rs.4,000, currently at Rs. 50 lakhs.

The Postal Life Insurance schemes are some of the most convenient and reasonably low-premium personal investment products in the country.

Postal Life Insurance Scheme offers life insurance cover with high returns on premium. The maximum sum assured offered under this scheme is Rs. 50 lakh. This policy is offered by the Government of India, to employees of Central and State Public Sector Enterprises, Central and State Governments, Government Aided Educational Institutions, Universities, Government aided Educational Institutions, Autonomous Bodies, Local Bodies, Cooperative Societies, Joint Ventures having a minimum of 10% Government/ PSU stake, etc. A group insurance scheme is also managed by Postal Life Insurance, which is for “Gramin Dak Sevaks”, i.e., Extra Departmental Employees, of the Department of Posts.

Features of Postal Life Insurance Policy:

Nomination facility: The policyholder can nominate his/her beneficiary, and can also make changes to the nomination.

Loan facility: Loan facility is available against this policy. The policyholder can pledge his/her policy as a collateral to the Heads of the Region/ Circle on behalf of the President of India, once the policy has attained 3 years maturity in case of an Endownment Assurance policy and 4 years policy period has been completed in the case of a Whole Life Insurance policy. Assignment facility is also available under this scheme.

Policy Revival: A policyholder can revive a lapsed policy. The policy can be revived when policy has lapsed under the following conditions –

• Policy has lapsed after 6 successive non-payments of premium with the policy being in effect for less than 3 years.
• Policy has lapsed after 12 successive non-payments of premium where policy has been in effect for more than 3 years.

Duplicate Policy Document: A duplicate policy document will be issued to the policyholder if he/she has lost the original document. This also applies to the case where the original policy document is mutilated, burned or torn and the insured wants a duplicate of the same.

Conversion of Policy: This policy can be converted from a Whole Life Assurance policy to an Endowment Assurance Policy. An Endowment Assurance Policy can be converted to another Endowment Assurance plan as per the regulations and guidelines laid down by the insurer.

Benefits of Investing in PLI:

Some of the other benefits and discounts offered under the Postal Life Insurance scheme are as follows:

• The insured can avail income tax exemption as provided under Sec. 88 of the Income Tax Act.
• The premium payable for the sum assured and coverage is much lower than that payable under any other.
• Additional facilities offered under this policy are Assignment, Loan, Conversion, Surrender and Paid-Up Value options.
• The policy can be transferred to any Circle within India, at no additional charges.
• Passbook facility is available to track the payment of premium and in case of loan transactions, etc.
• Premium can be paid on an annual, half-yearly and monthly basis. When the payment is due, the policyholder can make a payment on any working day.
• If you make an advance premium payment for a policy period of 6 months, you can avail a discount on premium worth 1% of the value.
• If you make an advance premium payment for a policy period of 12 months, you can avail a discount on premium worth 2% of the value.
• Nomination facility is available.
• Since this scheme has a centralized accounting facility, claims process is quick and easy.

Rural Postal Life Insurance

Rural Postal Life Insurance (RPLI) plays a significant role in the insurance sector of India. RPLI online scheme was introduced in March 1995, especially for the benefit of rural people. RPLI scheme in post offices emphasizes on weaker or women population so that these people can also lead a healthy and wholesome life by opting for various rural postal insurance policies.

Eligibility Criteria and Features

• Minimum and Maximum age at entry: 19 years and 55 years respectively.
• Minimum and maximum sum assured: Rs.10,000 and Rs. 10 lakhs respectively.
• Loan facility: Only after 4 years
• Surrender: Only after 3 years of the completion of the policy
• Premium: Premiums will be varied based on the sum assured and the age of the candidate
• Rural postal life insurance bonus rates: Rs. 65 per Rs. 1000 of the sum assured

Benefits of Rural Postal Life Insurance in India:

Several benefits are associated with rural postal insurance schemes. A host of different schemes are available under the rural insurance umbrella. Some of the most outstanding advantages of these schemes are listed as under.

• Policyholders of rural postal insurance schemes can avail credit by pledging their schemes as collateral for security. The policy has to be pledged with the Heads of the Circle and is eligible for loan only if 3 years or more are completed in case of endowment schemes and 4 in case of whole life assurance.
• Rural postal insurance policies can be pledged with any financial institution for obtaining credit.
• Policies under rural postal insurance can be revived in case it lapses due to non-payment of insurance premium.
• Insurance policies can be converted from one scheme to another under rural postal insurance. So if a customer is not satisfied with features and benefits of one scheme, he/she can get it converted to another as per rules set by postal insurance department.
• Nomination facility is available and nomination can be duly changed as per policyholder’s requirement. This can be done by placing a request with the postal insurance department.

A systematic investment plan (SIP) is an investment vehicle offered by many mutual funds to investors, allowing them to invest small amounts periodically instead of lump sums. The frequency of investment is usually weekly, monthly or quarterly.

In SIPs, a fixed amount of money is debited by the investors in bank accounts periodically and invested in a specified mutual fund. The investor is allocated a number of units according to the current Net asset value. Every time a sum is invested, more units are added to the investors account.

The strategy claims to free the investors from speculating in volatile markets by dollar cost averaging. As the investor is getting more units when the price is low and fewer units when the price is high, in the long run, the average cost per unit is supposed to be lower.

SIP claims to encourage disciplined investment. SIPs are flexible; the investors may stop investing a plan anytime or may choose to increase or decrease the investment amount. SIP is usually recommended to retail investors who do not have the resources to pursue the active investment.

Benefit:

Power of compounding

Compounding occurs when the returns you earn on your investments start earning returns. This is a simple concept in theory. But its practical implications are substantial.

When you invest regularly through SIPs, your returns get reinvested. Over time, this result in a snowball-effect, that may increase your potential returns manifold. An ideal way to maximise this gain is to invest for an extended period. This also means you may benefit by investing as early as possible.

Rupee cost averaging

Rupee cost averaging is a concept where you purchase more units when the Net Asset Value (NAV) of the fund is low, and lesser units when the NAV is high. Essentially, it averages out your purchasing costs over the tenure of the investment period. You don’t need to worry about how to time the market when you invest through a SIP.

Low initial investment

You can invest in mutual funds through a SIP with just Rs. 500 per month. This can be an affordable way to invest each month without hurting your wallet. You can increase your monthly investment amount with a rise in your income via SIP step-up feature. Mutual fund houses allow investors to top up their SIPs on a regular basis. So, even if you start with Rs. 500 or Rs. 1,000 every month, you can invest more over the years. This strategy can help you reach your investment goals at a faster rate.

Convenience

SIP can be a convenient mode of investing. Like most investors, you may not have the time for extensive market research and analysis to adjust or balance your portfolio. So, once you pick a good fund, you can give standing instructions to the bank and let the SIP take care of your monthly investments.

Indian Post Office Fixed Deposit Interest Rates range between 5.50% and 6.70%. Senior citizens may earn higher rates; 0.25% to 0.50% additional on existing rates. The tenure of the Fixed Deposit (FD) is from 7 days to 5 years. The schemes come with a fixed rate of interest and earning. So, you can consider Post Office FD plans for safe and secured investment. You will also receive an insurance cover on the deposited amount up to a limit.

In this post, we will discuss Indian Post Office FD Interest Rate features, details about National Savings Time Deposit Account, loan against FD, most feasible plans, application procedure, documents required, and frequently asked questions.

Features of Indian Post Office FD Rates

Here are the features:

• You can deposit as less as Rs. 1,000. There is no upper limit to the deposit amount.
• Tenure of the Post Office Fixed Deposit is between 7 days and 5 years.
• The most popular scheme is the National Savings Time Deposit Account.
• The range of interest rate per annum is from 5.50% to 6.70%. It is the Government of India that decides the Indian Post Office Fixed Deposit Interest Rates on a regular basis.
• You can choose to apply for a loan against FD to fulfil any cash liquidity. For this, you do not have to break the fixed deposit.
• You will receive facilities such as nomination and auto-renewal.
• The deposits of up to Rs. 5 lakhs are covered under the RBI’s Deposit Insurance Scheme, insured by the DICGC.

Loan against FD Indian Post Office

You can also choose to take a loan on the Indian Post Office FD.

• The maximum tenure of the loan is the maturity date of the FD.
• The applicable rate on the loan is 6.5% to 7.7%.
• The maximum loan amount offered against the fixed deposit depends on the decision of the authorities.

Most Lucrative FD Scheme by the Indian Post Office

Before you invest in the Indian Post Office FD scheme, you must know the varying tenures and the corresponding interest rates. This will give you an idea as to which scheme will provide you the highest return. For instance, the tenure of 3 years 1 day to 5 years provides the highest rate at 6.70% per annum. But if you are not into long-term deposits, then you may look for a short-term scheme.

The interest rate for short-term schemes is 5.50%. The tenure for the same is 7 days to less than 365 days. Remember that the interest on the FD is applied at the time of maturity. Senior citizens may get an additional 0.25% to 0.50% on the standard rates.

Counterfeiting is the oldest technique used by fraudsters to cheat unsuspecting individuals of their money. Here, the fraudster may handover an imitation currency in exchange for real bank notes under various pretexts like making change or offering help.

Figures & Alignment

In real currency, the figures will be aligned perfectly. But in the fake currency, chances are there to get the figures out of alignments. The gap between digits, smaller or bigger number, and the unaligned digits should be observed carefully.

Look at the Watermark

In a fake currency, the watermark usually looks thick. Pay detail attention to the watermark. The fake currency gang apply oil, grease or wax to give the picture a translucent feel.

Ink Smudge

Real notes will not have ink smudges and broken printed lines. The notes with broken printed lines and ink smudges should be regarded with suspicion.

Security Threads

Security threads that are just drawn or printed on the currency, instead of the original one that is incorporated through the currency.

Typography

In fake notes, the typography for “Reserve Bank of India” will be thicker whereas in real Indian currency will have smoother lettering.

Microlettering

In real currency, the micro-lettering feature appears between the vertical band and Mahatma Gandhi portrait which contains ‘RBI’. A magnifying glass would be required to see this feature well.

Rs 200

Front

Salient features of the New ₹200 Notes

1. See through register with denominational numeral 200,
2. Latent image with denominational numeral 200,
3. Denominational numeral २०० in Devnagari,
4. Portrait of Mahatma Gandhi at the centre,
5. Micro letters ‘RBI’, ‘भारत’, ‘India’ and ‘200’,
6. Windowed security thread with inscriptions ‘भारत’and RBI with colour shift. Colour of the thread changes from green to blue when the note is tilted,
7. Guarantee Clause, Governor’s signature with Promise Clause and RBI emblem towards right of Mahatma Gandhi portrait,
8. Denominational numeral with Rupee Symbol, ₹ 200 in colour changing ink (green to blue) on bottom right,
9. Ashoka Pillar emblem on the right,
10. Mahatma Gandhi portrait and electrotype (200) watermarks,
11. Number panel with numerals growing from small to big on the top left side and bottom right side,
12. For visually impaired

Intaglio or raised printing of Mahatma Gandhi portrait, Ashoka Pillar emblem, raised Identification mark H with micro-text ₹ 200, four angular bleed lines with two circles in between the lines both on the right and left sides

Reverse

13. Year of printing of the note on the left,
14. Swachh Bharat logo with slogan,
15. Language panel,
16. Motif of Sanchi Stupa,
17. Denominational numeral २०० in Devnagari

Rs 500

The new ₹500 notes in the Mahatma Gandhi (New) Series are different from the present series in colour, size, theme, location of security features and design elements. The size of the new note is 66mm x 150mm. The colour of the notes is stone grey and the predominant new theme is Indian heritage site; Red Fort.

• See through Register
• Latent image
• Denominational numeral in Devnagari
• Mahatma Gandhi portrait
• Security thread
• Guarantee clause
• Portrait and electrotype watermark
• Number panel
• Denomination in numerals
• Ashoka pillar emblem
• Intaglio printing
• Intaglio printing on the lines for visually impaired

Rs 2000

The Reserve Bank of India is introducing new design banknotes in the denomination of ₹2000 as part of Mahatma Gandhi(New) Series. The new denomination has motif of the Mangalyaan on the reverse, depicting the country’s first venture in interplanetary space. The base colour of the note is magenta. The note has other designs, geometric patterns aligning with the overall colour scheme, both on the obverse and the reverse. The size of the new note is 66mm x 166mm

• See through Register
• Latent image
• Denominational numeral in Devnagari
• Mahatma Gandhi portrait
• Micro letters “RBI” & “2000”
• Security thread with inscription “Bharat”
• Guarantee clause
• Portrait and electrotype watermark
• Number panel
• Denomination in numerals
• Ashoka pillar emblem
• Intaglio printing
• Intaglio printing on the lines for visually impaired

Savings Bank Account

A savings account is an interest-bearing deposit account held at a bank or other financial institution. Though these accounts typically pay a modest interest rate, their safety and reliability make them a great option for parking cash you want available for short-term needs.

People deposit funds in savings account for a variety of reasons, including a safe place to hold their cash. Savings accounts normally pay interest as well: almost all of them accrue compound interest over time. Several countries require savings accounts to be protected by deposit insurance and some countries provide a government guarantee for at least a portion of the account balance.

There are many types of savings accounts, often serving particular purposes. These can include accounts for young savers, accounts for retirees, Christmas club accounts, investment accounts, and money market accounts. Some savings accounts also have other special requirements, such as a minimum initial deposit, deposits made regularly, and notices of withdrawal.

Some savings accounts require a minimum balance in order to avoid monthly fees or earn the highest published rate, while others have no balance requirement. Know the rules of your particular account to ensure you avoid diluting your earnings with fees.

Money can be transferred in or out of your savings account online, at a branch or ATM, by electronic transfer, or direct deposit. Transfers can usually be arranged by phone, as well.

Recurring Deposit

A recurring deposit is a special kind of term deposit offered by Indian banks which help people with regular incomes to deposit a fixed amount every month into their recurring deposit account and earn interest at the rate applicable to fixed deposits. It is similar to making fixed deposits of a certain amount in monthly installments. This deposit matures on a specific date in the future along with all the deposits made every month. Recurring deposit schemes allow customers an opportunity to build up their savings through regular monthly deposits of a fixed sum over a fixed period of time. The minimum period of a recurring deposit is six months and the maximum is ten years.

The recurring deposit can be funded by standing instructions which are the instructions by the customer to the bank to withdraw a certain sum of money from his/her savings/current account and credit to the recurring deposit account.

When the recurring deposit account is opened, the maturity value is indicated to the customer assuming that the monthly installments will be paid regularly on due dates. If any installment is delayed, the interest payable in the account will be reduced and will not be sufficient to reach the maturity value. Therefore, the difference in interest will be deducted from the maturity value as a penalty. The rate of penalty will be fixed upfront. Interest is compounded on quarterly basis in recurring deposits.

One can avail loans against the collateral of a recurring deposit up to 80 to 90% of the deposit value.

The rate of interest offered is similar to that of fixed deposits.

Features of a Recurring Deposit Account

• Recurring Deposit schemes aim at inculcating a regular habit of saving in people
• The minimum amount for deposits often varies from one bank to another. You could invest with an amount as small as Rs. 1000.
• The minimum period of deposit is six months, while the maximum period of a deposit is 10 years
• The rate of interest is equivalent to that offered for a Fixed Deposit. Therefore, the interest rates are higher than Savings Account.
• Premature withdrawals are However, depending on the bank, they may allow you to close your account before the maturity period on certain conditions.
• A Recurring Deposit can be funded periodically through Standing Instructions that are usually instructions given by the customer to the bank, to credit the RD account every month from his/her Savings or Current Account.

PPF

Public Provident Fund (PPF) scheme is a long term investment option that offers an attractive rate of interest and returns on the amount invested. The interest earned and the returns are not taxable under Income Tax. One has to open a PPF account under this scheme and the amount deposited during a year will be claimed under section 80C deductions.

Importance:

• PPF is a government-backed scheme, and the investment is also not market-linked. Due to this, it offers guaranteed returns to protect the investment needs of many people.
• PPF account is one of the best investment options for individuals who have a low-risk appetite.
• As the returns from PPF accounts are fixed, they are used as a diversification tool for the investor’s portfolio. Additionally, they also offer tax-saving benefits.

NSC

The NSC scheme is available at all NSC post offices and the Indian Government promotes the NSC scheme. Due to the number of post offices present in India and the easy access to these post offices, the scheme has become very popular in India.

The main aim of the scheme is for individuals to make small or medium savings, and tax benefits are provided for these savings. Since the scheme is encouraged by the Indian Government, the risks of investing in the scheme are low.

The scheme was launched mainly for individuals; therefore, non-resident Indians (NRIs) and Hindu Undivided Families (HUF) are not eligible to opt for this scheme. Only Indian citizens will be able to invest in the NSC scheme.

• Minimum investments: The minimum amount that a certificate can be purchased for is Rs.100. The different denominations that the certificate can be purchased for are Rs.10,000, Rs.5,000, Rs.1,000, Rs.500, and Rs.100. Initially, small investments can be made, and individuals can increase investments when feasible.
• Maturity tenure: 5 years and 10 years are the two maturity periods of the scheme that individuals can choose from.
• Rate of interest: Currently, the rate of interest has been reduced from 7.9% to 6.8%. and it is compounded on an annual basis. However, the interest is payable only at maturity. For example, investment of Rs.100 will get the subscriber Rs.146.93 after 5 years of investment.
• Nominations: Family members including minors can be added as nominees by the investor. In case the investor passes away during the tenure of the scheme, the nominee will be able to inherit the scheme.
• Different types of NSC: Initially, the NSC IX Issue and the NSC VIII Issue were the two types of certificates available. However, as of December 2015, the Government of India stopped the NSC IX Issue. Therefore, only the NSC VIII Issue is available.
• Loans against NSC: The NSC can be used as a security or collateral and can be provided to banks to avail loans. However, the respective post master must authorise the transfer of the certificate to the bank.
• Purchase of NSC: Upon submitting the required documents, the scheme can be purchased at post offices.
• Transfer of certificate: Transfer of NSC is possible from one post office to another. Transfer of certificate from one individual to another is also possible. However, the certificate will remain the same and the name of the new owner shall be written on the certificate and the name of the old owner will be rounded.

Advantages of NSC

• One of the main advantages of investing in the NSC is the tax benefits that individuals can avail on the investments they have made. The returns are also guaranteed under this scheme. Many individuals prefer the NSC scheme as it can provide a regular income once they retire.
• Except for the interest that is earned in the final year, the remaining interest that is generated is tax-free.
• In case individuals lose the original certificate, a duplicate certificate can be obtained.
• Even after the maturity period, individuals have an option to continue investing in the scheme.
• Transfer of the certificate is allowed from one individual to another. However, it is allowed only once during the lock-in period.
• The interest that is generated is compounded on a yearly basis and reinvested towards the scheme. Therefore, the invested amount of the individual increases without purchasing certificates.