10 things To Know About Pradhan Mantri Vaya Vandana Yojana.

Finance Minister Arun Jaitley has formally launched the Pradhan Mantri Vaya Vandana Yojana (PMVVY), or a pension scheme, for senior citizens on Friday. Speaking after the launch of PMVVY, Mr Jaitley said that settlement ratio of LIC (Life Insurance Corporation of India) is near to the maximum. Prime Minister Narendra Modi had earlier announced the launch of the scheme exclusively for the senior citizens aged 60 years and above. Under this scheme, senior citizens (60 years and above) in which they will get a guaranteed interest of 8 per cent for 10 years. Financial planners say that this pension scheme will offer more avenues to senior citizens to earn steady regular income at a time of falling interest rates. The scheme is exempted from GST or goods and services tax. LIC has sold 58,152 PMVVY schemes garnering Rs. 2,705 crore since its soft launch on May 4.

1) LIC started offering the scheme from May 4, 2017. The scheme will remain open till May 3, 2018. The shortfall owing to the difference between the interest guaranteed and the actual interest earned and the expenses relating to administration shall be subsidised by the government of India and reimbursed to the LIC.

2) PMVVY can be purchased offline as well as online through Life Insurance Corporation (LIC) of India which has been given the sole privilege to operate this scheme.

3) The scheme will provide an assured return of 8 per cent per annum payable monthly (equivalent to 8.30 per cent per annum) for 10 years.

4) The pension is payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly/ quarterly/ half-yearly/ yearly as chosen by the pensioner at the time of purchase.

5) There is a minimum and maximum limit for investment in Pradhan Mantri Vaya Vandana Yojana Scheme. The amount varies according to the pension payment mode chosen. For example, under the yearly pension mode, the minimum amount that has to be invested in the scheme is Rs. 1,44,578 and the maximum at Rs. 7,22,892. In monthly mode, the minimum amount that has to be invested is Rs. 1,50,000 and maximum at Rs. 7,50,000. For other modes, see the table below.

Accordingly, Rs. 1,000 will be the minimum pension amount payable monthly for which Rs.1,50,000 has to be invested. Similarly, the maximum monthly pension shall be Rs. 5,000 per month for which Rs. 7,50,000 has to be invested. For other modes, see the table above. (It should be noted that the ceiling of maximum pension - pensioner, his/her spouse and dependants - is for a family as a whole.)

6) On survival of the pensioner to the end of the policy term of 10 years, purchase price along with final pension instalment shall be payable.

7) Loan up to 75 per cent of purchase price (amount invested to earn pension) shall be allowed after three policy years to meet the liquidity needs. Loan interest shall be recovered from the pension installments and the loan to be recovered from claim proceeds.

8) The scheme also allows for premature exit for the treatment of any critical/ terminal illness of self or spouse. On such premature exit, 98 per cent of the purchase price shall be refunded.

9) On death of the pensioner during the policy term of 10 years, the purchase price shall be paid to the beneficiary.

10) senior citizens should take advantage of PMVVY pension scheme as well as another popular senior citizens scheme called Senior Citizen Savings Scheme (SCSS). If one has to choose one over the other, then the PMVVY is better as one has a longer time frame need of 10 years while the SCSS is better for higher liquidity it provides. Though the interest earned from both the schemes are taxable, effective tax planning and higher tax slabs can greatly reduce the impact of tax for senior citizens.

Read more : https://www.licindia.in/Products/Pension-Plans/Pradhan-Mantri-Vaya-Vandana-Yojana 

Top 10 ways to send money to India

Transfast

This is a global money transfer company that has greatly reduced its fees and increased its exchange rates. If you are new customer and willing to wait for a few days for transfer, Tranfast is offering high promotional exchange rate and a $0 fee. This is one of the money transfer companies that could give you a lot of rupees from your dollars. Due to its $0 fee, Transfast is most certainly the lowest cost way to send money to India.

Click here for more details : https://www.transfast.com

Western union 

Western union is very fast and reliable. Nevertheless, this money transfer company charges higher fees for transfers that are made by an individual at a Western Union agent shop. If the receiver would need to pick up the money in cash, the fees would still be high.

Click here for more details : https://www.westernunion.com/ca/en/home.html

Ria Money Transfer

This money can be transferred from the bank account. The company provides a better exchange rate and $0 fee for transfers that would take 3-5 days. It can send money to any bank in India, therefore, it is very reliable and convenient locally in India. Due to its consistently cheap fees and good exchange rates, Ria Money Transfers is one great way to go smart about sending money to India.

Click here for more details : https://www.riamoneytransfer.com

Transferwise

TransferWise has a very fast delivery time which is usually 24 hours or 1 working day. It is actually smart and secure way to send money directly to India. During public holidays the transfers can take up to 2 working days. Its services are a smart way to get rid of the bank fees. If you try using this service you will realize you no longer need to send money through the expensive banks. TransferWise is commonly used by those sending money from the UK and the European Union countries.

Click here for more details : https://www.transferwise.com

Xendpay

This money transfer company specializes in foreign exchange and international money transfers. Sending money to India through Xendpay is very simple and easy since you’re just required to log in to your Xendpay account and transfer money at your own convenience. This is very popular with those who are sending money from UK to India. Opening an account on Xendpay is very fast and free of charge.

Click here for more details : https://www.xendpay.com

Online Transfer 

This is the easiest way to transfer money. To use this method you just need an internet connection and the use of local banking services in order to transfer money to India. You will be required to have the recipient’s information regarding the financial institution and the account the money will be sent to. For those who do regular money transfers this is the best method to adopt. 

PayPal

This one of the largest electronic mode of transferring money from one account to another across the globe. With an account at PayPal, you can instantly transfer money to your family in India. This is the best method that saves you time and money. You can get the services and great customer support 24/7. However, PayPal may have some restrictions on the amount of money that can be sent.

Click here for more details : https://www.paypal.com/in/home

Xoom 

Xoom is among the best money transfer services to India and across the globe. Xoom also guarantees fast transfers that can even be processed within 4 hours to banks in India if the transfers are made during the Indian bank processing hours. Nevertheless, Xoom has some restrictions on the amount of money that can be sent daily or monthly depending on the level of your account. There are also some hidden conversion fees.

Click here for more details : https://www.xoom.com/sign-in

MoneyGram 

MoneyGram has proved to be a big market player in offering money transfer services. Many NRIs have adopted the use of MoneyGram to transfer money to India because it is very fast. Its speed is very consistent and but the fees are slightly higher than some other money transfer companies. It also has some hidden currency conversion costs which can amount to $10.

Click here for more details : http://www.global.moneygram.com

Remitly

It is used widely in USA to send money to many different countries including India. Those who would prefer the express transfers which are instantly processed would be required to pay more fees. For the basic rates, they are usually processed within 3 business days without any fees. The instant transfers are always supported with many major banks in India making the process very simple. Remitly is very secure since it is registered as a money services business with US Department of Treasury. However, there are some hidden currency costs which could be more than $10.

Click here for more details : https://www.remitly.com/us/en/india

50 Money Saving Tips in Everyday Life for Everybody..

Here are some useful tips on how to save money in our everyday life:

1. Drink water: It is good for you and saves on daily cost of soft drinks.

2. Cut down on junk food:  Not good for your pocket, not a healthy choice either.

3. Shopping List: Make a grocery/shopping list before going to the store, so that you buy only what you need. It saves time and money.

4. Walk short distances instead of driving: It saves on gas/fuel, it saves environment and keeps you active.

5. Cut down on excessive TV: Find better use for your time, something less wasteful 

6. Minimize carry-out and eat-out food: Carry-out/eat-out is expensive and not good for healthy eating habits.

7. Don’t need most expensive gifts to please family:Buy something functional and useful instead.

8. Recycle: Recycling saves resources, money and it minimizes waste.

9. Use natural light: This helps with savings on electric bill and is better for eye-sight.

10. Cut down on Air-Conditioning and heating: Install programmable thermostats to save on gas bills.

11. Get your News online: Cut down daily newspaper delivery costs if you can get the news online

12. Avoid Loans: Don’t take a loan unless your life/marriage depends on it.

13. Avoid late fees on bills and credit cards: Enough said, commonsense.

14. Minimize banking-fees down to zero: Many banks offer this option with no transaction fees.

15. Buy on-sale items: Look for sales on the items that you need.

16. Don’t buy EVERYTHING that is on sale:Make a list of what you need and stick with shopping for only those items.

17. Avoid club memberships that you don’t use: Avoid health-club or any other membership fees for something you seldom use.

18. Shop around for insurance: This can save lots of money on insurance premium.

19. shop around for lowest interest on mortgage or other loans: This can save a lot on interest.

20. Save your identity: Keep your checkbook, your id and credit cards etc. safe and secure from modern ID thieves

21. Holidays shopping in advance: Don’t wait for the last minute, look for bargains in advance.

22. Exercise: Stay active and stay out of hospital

23. Medical insurance: Consider medical insurance depending on your health needs

24. Dental and vision insurance: You may want to buy this if your eyes and teeth need regular care

25. Don’t buy a gas-guzzler car: A fuel-efficient car saves on gas,  it save money, it saves the environment

26. Grow your own vegetables: An excuse for active and healthy lifestyle

27. Cook at home:  This is another good excuse for active and healthy lifestyle

28. Take advantage of benefits at job: Many workplaces offer discounts on related (or affiliated) products and all kinds of other benefits for their employers.

29. Find out what your town/city has to offer: Free local parks, YMCA, any other benefits and discounts from the city….

30. Use coupons: Look for discount or special sale coupons.

31. Combine/bundle services: Many services (e.g. phone, Internet, TV..) are cheaper when bundled by using the same service provider

32. Local Library:Use local library for renting book, renting DVDs, Internet use etc.

33. Sign up for free reward programs: Many credit cards and other services offer programs for frequent users that can accumulate valuable reward points.

34. Divorce is very expensive: Prioritize your personal life. Spend time with your family, and save your marriage. It will save you from financial burden and heartache alike.

35. Maintain your car and house: Regular maintenance can help with preventive savings by avoiding breakdowns and other accidents due to negligence.

36. Budget: Track your spending and control the urge to spend. Stick with your budget.

37. Use energy efficient appliances: Efficient dishwasher and dryers etc. can save lots of energy usage over time

38. Take advantage of the tax laws: Understand the tax laws for real-estate and other local tax-breaks to minimize taxes

39. Save and retain: Don’t throw-out something after one or two use if it can be re-used, saved or retained.

40. Don’t waste money on lotteries: You have a higher chance to be hit by lightening than winning a mega million dollar lottery.

41. Minimize hired-help: Do your own work, it saves money and keeps you active.

42. College saving plan:Investigate tax benefits and other options to save for future college education tuition.

43. Turn off lights, PC and TV etc. when not in use:Be environment friendly. Turn off computer,

lights, TV etc. when not in use, or when not needed.  it is a good money saving habit.

44. Minimize drinking liquor: This helps in saving your liver, it saves money and keeps you healthy.

45. Family Planning:Consider Family planning and family size. Kids are very expensive to raise these days. Cuteness comes with a price. 

46. Take a train or a bus: Take a local train instead of driving a car to high traffic (and traffic jam) areas if possible; it saves on gas-money and also on time.

47. Quit smoking: This can save some serious money and will keep you healthy

48. Avoid compulsive shopping: Don’t shop just to feel better; find some other creative ways or hobbies to please yourself. 

49. Minimize shopping trips, shop online: Avoid spending excessive time in the shopping malls and  minimize multiple shopping trips. Shop online if that is a cheaper option.

50. Needs and wants: Understand the difference between what you really need and what you want for luxury or for fun; allocate your budget based on your personal situation.

The Indian Government has announced new passport rules aimed at simplifying and easing the process of issue of passport.

The Indian Government has announced new passport rules aimed at simplifying and easing the process of issue of passport.  The new passport rules also simplify the process of application for single parents, orphaned children etc. The changes have thus been notified.

In one of the most major changes, eight (8) different documents will now be accepted as proof of Date of Birth (DOB). As per the existing provisions of the Passport Rules, 1980, all applicants born on or after 26th January 1989 must mandatorily submit a Birth Certificate as the proof of Date of Birth (DOB). Changing this rule, the government has now decided that applicants can submit any of the following eight (8) documents as the proof of DOB while submitting the passport application:

• Birth Certificate (BC) issued by the Registrar of Births & Deaths, or the Municipal Corporation, or any other prescribed authority whosoever has been empowered under the Registration of Birth & Deaths Act, 1969 to register the birth of a child born in India.
• Transfer or School-Leaving or Matriculation Certificate issued by the school last attended, or by the recognized educational board containing the DOB of the applicant.
• PAN Card issued by the Income Tax Department with the DOB of applicant.
• Aadhar Card/E-Aadhar having the DOB of applicant.
• Copy of the extract of the service record of the applicant (only in respect of Government servants) or the Pay Pension Order (in respect of retired Government Servants), duly attested/certified by the officer/in-charge of the Administration of the concerned Ministry/Department of the applicant, having his DOB.
• Driving licence issued by the Transport Department of the concerned State Government, having the DOB of the applicant.
• Election Photo Identity Card (EPIC) issued by the Election Commission of India having the DOB of applicant.
• Policy Bond issued by the Public Life Insurance Corporations/Companies having the DOB of the holder of the insurance policy.

Simplified rules for various sections of society

Provision for Single Parents: The online passport application form now requires the applicant to provide the name of father or mother or legal guardian, i.e., only one parent, and not both. This allows single parents to apply for passports for their children and to also issue passports where the issuing authority cannot print the name of either the father or the mother, at the request of the applicant.

Number of Annexures reduced: The new rules bring down the total number of Annexures prescribed in the Passport Rule, 1980, to nine from the present 15. They have removed Annexes A, C, D, E, J, and K, and merged certain Annexes.

Only Self-Declaration from now on: All the required annexes will now be self-declarations on plain paper. No attestation/swearing by/before any Notary/Executive Magistrate/First Class Judicial Magistrate will henceforth be necessary.

No affidavit/Marriage Certificate required for married applicants: Applications now don’t require married applicants to provide Annexure K/marriage certificate.

Spouse’s Name not required for separated/divorced applicants: Passport applications now don’t require a spouse’s name for separated/divorced persons. There is even no requirement of the Divorce Decree.

Provision for Orphaned children : Orphaned Children without proof of DOB may now submit a declaration. The declaration – by the Head of the Orphanage/Child Care Home on their official letter head – confirms the applicant’s DOB.

Children not born out of a wedlock: Applications for children not born out of wedlock need only Annexure G.

For domestically adopted children: Applications for in-country domestically adopted children no longer requires submission of the registered adoption deed. In the absence of a deed, the passport applicant may give a declaration on a plain paper confirming the adoption.

Government Servants without a NOC: Government servants sometimes cannot obtain the Identity Certificate (Annexure-B)/NOC (Annexure-M) from their employer. They can now get the passport by submitting a self-declaration in Annexure-‘N’. The declaration must state that they have informed their employer, that they are applying for an ordinary passport.