Month: July 2021

Planning for son’s education, own retirement

Personal Finance

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Nishant is 36 and works with an IT company in Pune. He has a 5-year-old son. Until now, he has focussed his energies on repaying the home loan, which he repaid completely 2 months back. Thus, he does not have many investments. In addition to this house, he has Rs ₹ 5 lakh in fixed deposits and ₹13 lakh in employees’ provident fund.

His net take-home monthly salary is ₹80,000. He can invest about ₹35,000 per month. Besides, his monthly contribution to EPF account, including employer contribution, is ₹11,500.

He wants to invest for his son’s higher education, for which he thinks he will need about ₹20 lakh (present cost) after 12 years. Besides, he wants to save for this retirement. He has not bought any insurance plan yet.

Buying insurance

Insurance is the first pillar of financial planning. In his case, getting insurance portfolio right is even more critical since he is the sole earning member in the family. There are three broad types of insurance plans that every earning member must buy: Life, Health and Accidental Disability Insurance.

While there are many ways to calculate life insurance cover requirement, a simple thumb rule is to buy a cover for 10-15 times the annual income. With his level of income, he can go for a life cover of ₹ 1.25-1.5 crore.

A term insurance plan is the best way to purchase a life insurance. This will cost him about ₹18,000-20,000 per annum. He can choose to pay annual premium in monthly installments too.

He has a health cover of ₹3 lakh from his employer. The coverage is clearly not sufficient for a family of three. He must buy a family floater health insurance plan of ₹10 lakh. That will cost him about ₹15,000 per annum.

He can buy accidental disability cover as a rider with a term plan or as a standalone plan. A rider with the term plan is cheaper because the scope of coverage is limited to total and permanent disability.

A standalone plan is more expensive, but it covers both partial and total permanent disability, temporary disability, and accidental death.

These insurance plans (life, health and accidental cover) will cost about ₹5,000 per month or Rs 60,000 per annum.

He has a fixed deposit of ₹5 lakh that can be considered towards medical and emergency fund.

Son’s education

For son’s education, he needs ₹20 lakh (present cost) in 12 years. At the inflation rate of 6 per cent per annum, the target nominal corpus will be ₹40 lakh in 12 years.

Assuming a return of 10 per cent on the portfolio over 12 years, he needs to invest ₹15,000 per month.

He can put this money into a hybrid fund or a multicap fund by way of SIP. He must gradually shift this money to debt as he moves closer to the goal.

For his retirement, he mentions that only 2/3rd of his current expenses will continue into retirement.

His current expense is ₹45,000 per month but that includes conveyance and school and tuition fee for his son.

His expected expenses during retirement will be ~ ₹30,000 per month (cost). Assuming a post retirement life of 30 years, inflation of 6 per cent per annum and that he can earn inflation matching returns during retirement, he needs to accumulate ₹4.3 crore in 24 years.

His current EPF corpus will grow to ₹80 lakh in 24 years . At assumed pre-retirement return of 10 per cent per annum, he needs to invest ₹32,000 per month.

He is already putting ₹11,500 per month by way of EPF. After accounting for regular expenses, insurance payments and investment for son’s education, he can invest an additional ₹15,000 per month (35,000 – 5,000 – 15,000).

His retirement portfolio is already debt heavy. He can split this amount between a largecap fund and a midcap fund, with heavier allocation to the former. He is investing less than he should. He must invest more when his cashflows permit. This should not be a problem since his best earning years are ahead of him.

He must understand all the goal calculations above are based on heavy assumptions about inflation and expected returns.

He must keep revisiting these assumptions and portfolio growth and make adjustments accordingly.

The writer is a SEBI-registered investment advisor and founder of personal financeplan.in

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Reserve Bank of India – Tenders

Tenders

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A Pre-Bid meeting in connection with tender No. RBI/Kanpur/Estate/469/20-21/ET/719, which was floated on both MSTC and RBI’s website on June 04, 2021 for the captioned work, was conducted at 11.00 AM on July 02, 2021 at Estate Department, 2nd Floor, RBI Kanpur. The said meeting was held by following COVID appropriate behaviour by all the members. List of participants is placed below.

2. After welcoming all the members, Shri PP Paul, AM (Tech. Civil) explained tender documents and important timelines of the tendering process in brief and requested members to clarify doubts, if any. Following queries / doubts were clarified during the meeting:

S. No. Relevant paras /clauses in the Tender Documents Query Clarification
a) Item-4 of Part II Unpriced Bid How the balancing laminate will be fixed in inner side? In response, it has been clarified that the plywood used shall be fixed balancing laminate first at one side and then it would be fixed on the MS frame
b) Item-10 of Part II Unpriced Bid How many doors are there taken in estimate? In response, the number of doors were told along with dimensions:
No. of Doors: 01
Dimensions: 1.1 mt. X2.1 mt
c) Item-11 of Part II Unpriced Bid How many doors are there taken in estimate? In response, the number of doors were told along with dimensions
No. of Doors: 04
Dimensions: 1.1 mt. X2.1 mt
d) Item 1-1 of Part II Unpriced Bid Clarification regarding the item description – “Stacking of materials at the site having scrap value.” In response, it has been clarified that the materials which has come out from the dismantling work, if found in good condition, that has to be stacked separately and shall not be disposed off.
e) General Specifications for items Clarification regarding submission of cash-memo/vouchers of the materials. In response, it has been clarified that the vouchers for the items having basic rate mentioned in specification should be produced invariably during settlement of bills.

3. All the above points were noted and agreed by the firm.

4. The meeting ended with thanks to all the members.

Note:

  • This document (minutes of the Pre-Bid Meeting) shall form a part of the tender.

  • Rest of the terms and conditions and specifications of the bid document shall continue to remain same.

  • The above amendments/ clarifications are issued for the information for all the intending bidders.

  • The submission of bid by the firm shall be construed to be in conformity to the bid document and amendments/ clarifications given above.

Regional Director
Reserve Bank of India
Kanpur

List of participants

Sr No Name Designation
1 Shri P.P. Paul Assistant Manager (Tech. Civil), Estate Department
2 Shri Vinayak Agrawal Assistant, Estate Department
3 Shri Sushil Awasthi Representative from M/s Shri Kamadgiri Traders

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RBI warns against combination of high public debt, low interest rates, BFSI News, ET BFSI

Banking & Finance

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New Delhi: As economies around the world witness ultra-low interest rates and rising public debt amid the pandemic, the Reserve Bank of India (RBI) has said that the combination would pose challenges.

The pandemic response saw a tight interaction of monetary and fiscal policy. As monetary policy has sought to control a larger segment of the yield curve, the overlap with public debt management has grown, noted RBI’s Financial Stability Report for July.

It noted that with monetary policy committed to an easy stance for some time in many countries, the fiscal stance becomes important.

Too loose a fiscal stance could cause inflation surprises and financial conditions could tighten, it said, adding that a more constrained fiscal policy would add pressure on monetary policy.

“It would test the efficacy of further monetary expansion and could heighten intertemporal tradeoffs,” it said.

The extraordinary combination of high debt-to-GDP ratios and ultra-low interest rates raises three challenges, said the central bank’s report, with the first being the risk of fiscal dominance.

Further, it may also lead to a situation where fiscal positions may ultimately prove unsustainable and the complications of the possible joint “normalisation” of fiscal and monetary policies would also crop.

Growth-friendly fiscal policy, the RBI suggested, can help by effectively targeting public infrastructure and productivity.



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How to claim from multiple health plans

Personal Finance

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Since the outbreak of pandemic last year, many individuals have considered purchasing a health policy for self as well as for family. While having one health policy with sufficient cover based on individual or family needs is adequate, many end up having multiple health policies. Usually, as policyholder you will have a group cover from your employer and an individual health cover (as the group cover offered may not be sufficient) or in some cases, it can be two separate policies from different insurers. At the time of claim, if you are among those individuals with two or more health policies, here is how you should go about the claim.

One by one

Almost all insurers have wide hospitals under their network to make cashless facility hassle free for the policyholders. Barring a few scenarios, including certain treatment or diseases not covered by the policy and treatment taken in a non-network hospital, your health policy should be able to meet the hospitalisation expenses for you (cashless). But irrespective of the number of policies, you can make one claim at a time only, be it cashless or reimbursement. This is because insurers require policyholders to submit the original bills while filing a claim.

Suppose you have two health policies and you want to have cashless under both, then you must indicate to the hospital or the TPA about this. Many insurance experts suggest that it is better to exhaust the sum insured of one policy before claiming from another. Priya Deshmukh Gilbile, Chief Operating Officer, ManipalCigna Health Insurance, says “In case of a cashless claim, with the same TPA, the co-ordination for two or more policies become easier. Even if the TPAs are different for the policies held by policyholder, cashless can be done. The approval letter from the first insurer has to be submitted to the second insurer for the remaining claim amount”

However, there could be practical difficulties when it comes to cashless claims from multiple insurers. According to Indraneel Chetterjee, Co-Founder, RenewBuy “While cashless facility from multiple policies is doable by TPA/insurer, there could be a little struggle in terms of co-ordination between the TPA, insurer and the hospital due to incremental operational work.”

Hence you can also plan your claim (medical expenses) part cashless and part reimbursement. Suppose you have two policies of ₹5 lakh each and your expenses work out to ₹6 lakh. In this scenario, up to ₹5 lakh, the hospital/TPA will co-ordinate with the insurer. For the balance amount of ₹1 lakh, you as policyholder need to submit the bills given by the hospital along with discharge summary (which will mention the claim covered) to the other insurer for reimbursement. It could help you have a smooth claim procedure and avoid unnecessary delay at the time of discharge or while starting a treatment.

Keep in mind

While having multiple health policies has its advantages, there are a few points to keep in mind, when making a claim, in order to reap the maximum benefits.

One, you should go for the policy which has minimum or no co-payment (where policyholder agrees to pay a certain percentage of medical expenses and the balance paid by the insurer) or sub-limits (refers to the limits for a certain medical treatments or diseases in a policy) clauses. This is so that the difference between medical bills and claim amount (settled by insurer) is low. If you have to choose between a group cover and an individual health cover, then go for group health insurance first. This is because, the benefits of no-claim bonus remains intact.

Two, it is important to disclose to each insurer about the multiple policies you hold, if specifically asked in the proposal form at the time of purchase of health policy. The non-disclosure of the other policies may affect at the time of claim as it is a breach of (insurance) contract and insurer have the right to reject or not settle your claim. However, not many insurers ask for this disclosure these days.

Lastly, while there is no cap on the number of health policies that you can buy, the premium amount you shell out for every renewal could be high for all the policies. Amit Chhabra, Head Health Insurance, Policybazaar.com says “For policyholders it is better to have a base policy and then have top-up plans from the same insurer, as it will work out to be affordable and for easier claim, instead of having separate policies from different insurer. ”

Exhaust sum insured of one policy before claiming from another

Divide claim into cashless, reimbursement

Have base policy and top-up plan from the same insurer

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Where to park your equity profits

Personal Finance

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Of late, a chorus of market voices have piped up to say that global stock prices are in bubble territory. The RBI recently described the Indian stock market as a bubble. Bubble or no bubble, there can be no disputing that after the breathless rally of the last five years, Indian stock valuations are very expensive. If you’re sitting on hefty equity gains or high equity allocations, this makes it prudent to book some profits on your equity portfolio. But a practical problem that stops many folks from booking equity profits is not knowing where to invest those gains.

We suggest dividing your gains into three buckets and recommend suitable investment products for each bucket.

Capital protection bucket

If the stock market rally has made a significant difference to your overall wealth, you may want to convert some of those paper gains into real money, to meet your short-term or long-term financial goals. In this case, you should primarily look for safety of your capital in re-investing your equity gains.

Market-based bond investments today carry both credit and duration risk (the risk of default because of Covid and the risk of capital loss from rising rates). Indian government-backed sovereign instruments offer protection from both.

If you are looking to set aside equity gains towards long-term goals such as retirement that are at least seven years away, GOI’s Floating Rate Savings Bonds sold by RBI on tap via leading banks, offer the rare combination of good returns with capital safety. The bonds’ floating interest is pegged at a 35-basis point premium to the prevailing rate on the National Savings Certificates. For the April-June quarter, this interest was 7.15 per cent.

The floating rate makes this a good bet in a rising inflation/rate scenario. The only disadvantage of the bonds is that it offers no compounding and only pays out interest. The bonds also carry a 7- year lock-in and are not tradeable. A second sovereign-backed option is the five-year National Savings Certificate (NSC) from India Post. While rates are reset quarterly, you get to lock into a specific rate for five years. NSC currently offers lower rates of 6.8 per cent than the GOI savings bonds. But it allows accumulation of interest and has a shorter lock-in of 5 years.

For goals that are 5-7 years away, passive debt ETFs that invest in government securities are good options. IDFC Gilt 2027 Index Fund, IDFC Index 2028 Index Fund and Nippon ETF 5-year Gilt ETF are such funds that can get you to a fairly predictable return by those target dates.

If you need the money within the next 3-5 years, you can consider gilt mutual funds with a short maturity (there aren’t too many of them but Axis Gilt is one) or PSU & Banking funds with short maturity (Axis, UTI and IDFC have less than 2-year average maturity). These may not be as safe as sovereign instruments, but do offer liquidity with a fair degree of capital protection.

Diversification bucket

Some folks may book profits in their equity holdings not because they need the money to meet any goals, but simply to de-risk their portfolios. If you work to a pre-decided asset allocation pattern (as all investors should) and have seen your equity allocations overshoot your comfort level, you should invest your equity gains in long-term options that help you diversify from equity risks.

Two options to consider are Sovereign Gold Bonds and REITs. Gold is one asset class that has lagged during the concerted rally in stocks, bonds and commodities recently. It also tends to deliver gains when stock prices tank. Sovereign gold bonds, bought either from primary issuances by RBI or in the secondary market, therefore present a good option to park some of your equity gains. Gold ETFs can be an alternative.

Real estate too has delivered rather muted performance in India in the last few years and therefore makes for a good diversifier. REITs or Real Estate Investment Trusts are a good proxy for commercial real estate investments, through a regulated, divisible and liquid vehicle. Listed REITs such as Embassy Office Parks and Mindspace own a portfolio of office complexes from which they earn rents from high-quality clients.

Liquidity bucket

You may have every intention of getting back into equity markets when a big correction materialises and valuations cool down. Such corrections and also the reversals from them, can be swift and sharp. Re-deploying your money into equities after such corrections would be impossible if you lock all your equity gains into instruments such as GoI bonds, NSC or even SGBs.

To keep powder dry for such a re-entry, apart from Gilt and PSU/Banking debt funds mentioned above, Liquid Bees or other Liquid ETFs (ETF which invest only in safe money market instruments) are a good option. These funds carry a constant NAV while declaring their returns as daily dividends, which are credited as fresh units in your demat account.

Fixed deposits with leading banks, which can be instantly liquidated online, are just as good for this purpose. These aren’t high-return or tax-efficient options but keep your money safe for quick re-deployment.

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Reserve Bank of India – Tenders

Tenders

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E-Tender Notice No. – RBI/Kanpur/Estate/3/21-22/ET/3

Please refer to the notice corresponding to the captioned subject published on the Bank’s website www.rbi.org.in on June 28, 2021 inviting E-Tender for “Design, fabrication, supply and fixing of open office modular workstation furniture with M.S. framework in DOS, 1st floor, Main Office Building, RBI Kanpur”.

2. The following sections of the tender document have been revised and the modified provisions are as under:

Section Existing Provision Revised Provision
Section A Point 11 On receipt of intimation from the Employer of the acceptance of his/their tender, the successful tenderer shall be bound to implement the contract and deposit Performance Bank Guarantee (@ 5% of the contract value) (see Annexure-III) and within fourteen days thereof the successful tenderer shall sign an agreement in accordance with the draft agreement and the Schedule of Conditions but the written acceptance by the Reserve Bank of India of tender will constitute a binding contract between the Reserve Bank of India and the person so tendering, whether such formal agreement is or is not subsequently executed. On receipt of intimation from the Employer of the acceptance of his/their tender, the successful tenderer shall be bound to implement the contract and deposit Performance Bank Guarantee (@ 3% of the contract value) (see Annexure-III) and within fourteen days thereof the successful tenderer shall sign an agreement in accordance with the draft agreement and the Schedule of Conditions but the written acceptance by the Reserve Bank of India of tender will constitute a binding contract between the Reserve Bank of India and the person so tendering, whether such formal agreement is or is not subsequently executed.
Annexure-I Subsection C
Performance Bank Guarantee 5% of the contract value (in addition to the retention money) valid for the entire period of currency of contract.
Performance Bank Guarantee 3% of the contract value (in addition to the retention money) valid for the entire period of currency of contract.

3. The Corrigendum shall form part of the Tender Documents. Duly signed and stamped copies of the same have to be uploaded by the bidders along with the Tender. Any bid received without sign and stamp is liable to be rejected.

4. It is clarified that all other terms and conditions mentioned in the e-tender shall remain unchanged.

5. All concerned may please take note of the above.

Regional Director
Reserve Bank of India
Kanpur

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Minutes of the Pre-Bid Meeting – Invitation of bids for selection of creative agency/agencies for RBI’s Public Awareness Campaign

Tenders

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Corrigendum

In connection with the captioned RFP, a pre-bid meeting was held at 1700 hrs on June 29, 2021 via video conferencing.

The meeting was chaired by Dr. Shailaja Singh, DGM, Department of Communication (DoC). Smt. Shibi Mathai, AGM and Shri Dipak Patole, Manager from DoC were also present in the meeting. Queries received from prospective bidders in response to the tender and the replies provided to them are given in the table (attached).

The above minutes shall form a part of the tender-Part-I & a copy of the same duly signed by the tenderer must be enclosed with Part-I of the tender. All the other Commercial and Technical terms and conditions will be as per the tender document.

The meeting closed with vote of thanks to the chair.

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Reserve Bank of India – Tenders

Tenders

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E-Tender Notice No. – RBI/Kanpur/Estate/5/21-22/ET/5

Please refer to the notice corresponding to the captioned subject published on the Bank’s website www.rbi.org.in on June 28, 2021 inviting E-Tender for “Renovation (Civil & Interior) of Foreign Exchange Department (FED) at 2nd floor, MOB, RBI Kanpur”.

2. The following sections of the tender document have been revised and the modified provisions are as under:

Section Existing Provision Revised Provision
Section A Point 11 On receipt of intimation from the Employer of the acceptance of his/their tender, the successful tenderer shall be bound to implement the contract and deposit Performance Bank Guarantee (@ 5% of the contract value) (see Annexure-III) and within fourteen days thereof the successful tenderer shall sign an agreement in accordance with the draft agreement and the Schedule of Conditions but the written acceptance by the Reserve Bank of India of tender will constitute a binding contract between the Reserve Bank of India and the person so tendering, whether such formal agreement is or is not subsequently executed. On receipt of intimation from the Employer of the acceptance of his/their tender, the successful tenderer shall be bound to implement the contract and deposit Performance Bank Guarantee (@ 3% of the contract value) (see Annexure-III) and within fourteen days thereof the successful tenderer shall sign an agreement in accordance with the draft agreement and the Schedule of Conditions but the written acceptance by the Reserve Bank of India of tender will constitute a binding contract between the Reserve Bank of India and the person so tendering, whether such formal agreement is or is not subsequently executed.
Annexure-I Subsection C
Performance Bank Guarantee 5% of the contract value (in addition to the retention money) valid for the entire period of currency of contract.
Performance Bank Guarantee 3% of the contract value (in addition to the retention money) valid for the entire period of currency of contract.

3. The Corrigendum shall form part of the Tender Documents. Duly signed and stamped copies of the same have to be uploaded by the bidders along with the Tender. Any bid received without sign and stamp is liable to be rejected.

4. It is clarified that all other terms and conditions mentioned in the e-tender shall remain unchanged.

5. All concerned may please take note of the above.

Regional Director
Reserve Bank of India
Kanpur

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4 Best High-Rated Debt Mutual Funds Better Than PPF

Personal Finance

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HDFC Credit Risk Debt Fund Direct Growth

HDFC Credit Risk Debt Fund Direct-Growth is a mutual fund scheme issued by HDFC Mutual Fund. The fund’s expense ratio is 1.05 per cent, which is higher than the expense ratio charged by most other Credit Risk funds. The 1-year returns for HDFC Credit Risk Debt Fund Direct-Growth are 10.85 per cent. The fund presently has Rs 7,631 crore funds under management or asset under management (AUM) and a NAV of Rs 19.71 as of July 2, 2021. Tata Motors Ltd., Punjab National Bank, IndInfravit Trust, Bharti Hexacom Ltd., and Pipeline Infrastructure (India) Pvt. Ltd. are among the fund’s top holdings. One can start SIP in this fund with a minimum amount of Rs 500. If you redeem units worth more than 15% of your contribution within 12 months, you’ll be charged 1%, and if you redeem after 12 months but within 18 months, you’ll be charged 0.50 per cent as an exit load.

ICICI Prudential Credit Risk Fund Direct Plan Growth

ICICI Prudential Credit Risk Fund Direct Plan Growth

The recent one-year growth returns for the ICICI Prudential Credit Risk Fund Direct Plan were 9.35 per cent. According to Value Research, it has provided an average yearly return of 9.48 per cent since its inception. The fund presently has Rs 7,443 crore as an asset under management (AUM) and a NAV of Rs 25.92 as of July 2, 2021. The fund’s expense ratio is 0.89 per cent, which is identical to the expense ratio charged by other Credit Risk funds. GOI, Adarsh Advisory Services Pvt. Ltd., Prestige Estates Projects Ltd., Indusind Bank Ltd., and Aditya Birla Fashion and Retail Ltd. are among the fund’s top holdings. Minimum SIP can be started with a minimum amount of Rs 500. If more than 10% of units are redeemed or transferred within one year, an exit load of 1% is levied.

SBI Magnum Medium Duration Fund Direct Growth

SBI Magnum Medium Duration Fund Direct Growth

This Medium Duration Fund is launched by SBI Mutual Fund. SBI Magnum Medium Duration Fund Direct has a one-year growth rate of 7.12%. According to Value Research, it has provided an average yearly return of 9.99 per cent since its debut. The fund has a 0.68 per cent cost ratio, which is quite higher than other Medium Duration funds in the category. Reserve Bank of India, State Bank of India, Mahindra Rural Housing Finance Ltd., Tata Realty and Infrastructure Ltd., and Indian Bank are among the fund’s top holdings. The fund presently has Rs 9,122 crore as an asset under management (AUM) and a NAV of Rs 42.25 as of July 2, 2021. An exit load of 1.50 per cent will be imposed on units worth more than 8% of the investment if they are redeemed within 12 months. With a minimum investment of Rs 500, one can commence a monthly SIP.

ICICI Prudential All Seasons Bond Fund Direct Plan Growth

ICICI Prudential All Seasons Bond Fund Direct Plan Growth

ICICI Prudential All Seasons Bond Fund Direct Plan-Growth is a Dynamic Bond mutual fund scheme launched by ICICI Prudential Mutual Fund. ICICI Prudential All Seasons Bond Fund Direct Plan-Growth is a medium-sized bond fund with Rs 5,793 crores as assets under management (AUM) and the current NAV is Rs 29.77 as of July 2, 2021. The growth returns of the ICICI Prudential All Seasons Bond Fund Direct Plan during the last year have been 7.10 per cent. According to Value Research, it has generated an average yearly return of 10.72 per cent since its inception. Uttar Pradesh State, GOI, Embassy Office Parks REIT, National Bank For Agriculture & Rural Development, and Godrej Industries Ltd. are among the fund’s top 5 holdings. If redeemed within one month of deposit, there is a 0.25 per cent exit load charged by the fund.

Best Debt Mutual Funds

Best Debt Mutual Funds

Here’re the top-performing debt mutual funds rated 5 star by Value Research.

Debt Funds 1 Year Returns 3 Year Returns 5 Year Returns Rating by Value Research
HDFC Credit Risk Debt Fund Direct Growth 10.85% 9.60% 9.01% 5 star
ICICI Prudential Credit Risk Fund Direct Plan Growth 9.35% 9.51% 9.22% 5 star
SBI Magnum Medium Duration Fund Direct Growth 7.12% 10.17% 9.81% 5 star
ICICI Prudential All Seasons Bond Fund Direct Plan Growth 7.10% 10.10% 9.66% 5 star
Source: Value Research

Should you invest?

Should you invest?

If we look at the historical returns of debt mutual funds, they have given pretty decent returns and have outperformed not only PPF but also other debt instruments like tax-saving fixed deposits. Undoubtedly, debt mutual funds are preferred as the secure investment bet when compared to equity mutual funds. But the returns are market-linked and thus known as a volatile instrument that investors must need to consider. As a result, interest rate risk and credit risk is the key consideration when investing in top-performing debt mutual funds. Conservative investors who do not want to risk their investment by investing in equity funds can choose the debt mutual funds mentioned above as a substitute for PPF, only to gain higher returns. For risk-averse investors, both debt mutual funds and PPF are excellent.

PPF strives to provide secure returns, in the form of interest income and annually compounding of the principal amount, whilst debt mutual funds can optimise your investment returns amid the current low-interest-rate regime. Diversifying your portfolio with debt mutual funds may be a good option if you want to achieve better market-linked returns in a short period of time, whereas PPF can be a solid pick for a long-term investment objective.

Disclaimer

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in



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Reserve Bank of India – Tenders

Tenders

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E-Tender Notice No. – RBI/Kanpur/Estate/1/21-22/ET/1

Please refer to the notice corresponding to the captioned subject published on the Bank’s website www.rbi.org.in on June 18, 2021 inviting E-Tender for “Renovation of Bank’s Staff Quarters (16 Nos. Class III) at Kidwai Nagar, Kanpur”.

2. The following sections of the tender document have been revised and the modified provisions are as under:

Section Existing Provision Revised Provision
Section A Point 11 On receipt of intimation from the Employer of the acceptance of his/their tender, the successful tenderer shall be bound to implement the contract and deposit Performance Bank Guarantee (@ 5% of the contract value) (see Annexure-III) and within fourteen days thereof the successful tenderer shall sign an agreement in accordance with the draft agreement and the Schedule of Conditions but the written acceptance by the Reserve Bank of India of tender will constitute a binding contract between the Reserve Bank of India and the person so tendering, whether such formal agreement is or is not subsequently executed. On receipt of intimation from the Employer of the acceptance of his/their tender, the successful tenderer shall be bound to implement the contract and deposit Performance Bank Guarantee (@ 3% of the contract value) (see Annexure-III) and within fourteen days thereof the successful tenderer shall sign an agreement in accordance with the draft agreement and the Schedule of Conditions but the written acceptance by the Reserve Bank of India of tender will constitute a binding contract between the Reserve Bank of India and the person so tendering, whether such formal agreement is or is not subsequently executed.
Annexure-I Subsection C
Performance Bank Guarantee 5% of the contract value (in addition to the retention money) valid for the entire period of currency of contract.
Performance Bank Guarantee 3% of the contract value (in addition to the retention money) valid for the entire period of currency of contract.

3. The Corrigendum shall form part of the Tender Documents. Duly signed and stamped copies of the same have to be uploaded by the bidders along with the Tender. Any bid received without sign and stamp is liable to be rejected.

4. It is clarified that all other terms and conditions mentioned in the e-tender shall remain unchanged.

5. All concerned may please take note of the above.

Regional Director
Reserve Bank of India
Kanpur

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