Author: root

Should you go for WealthBaskets on Paytm Money?

Personal Finance

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Digital wealth management platform Paytm Money has partnered with WealthDesk to offer curated investment portfolios called WealthBaskets.

The readymade investment portfolios market already has smallcases by smallcase technologies, Stockbaskets (Samco Securities), One Click Equity (ICICI Direct), Theme Investing (Fyers) and Intelligent Advisory Portfolio (Motilal Oswal), to name a few. Here we review WealthBaskets on Paytm Money.

WealthBaskets decoded

Each WealthBasket is marketed as a research-backed mix of stocks or ETFs which aim to give you diversification. They are managed by SEBI registered professionals.

WealthBaskets are classified as per their risk, market cap and tenure. Wealthdesk says that the portfolios are backtested for many years of performance.

A WealthBasket reflects a particular investment theme/idea (Digital, Consumption, Make in India) or sector (Chemicals, Pharma, Banking & Finance) with a set of stocks/ETFs along with their respective allocation percentages.

For instance, the Stable Momentum portfolio currently has 10 stocks (with different weights) and a certain cash component which is kept in broking ledger and available for any future portfolio updates.

All the baskets are subject to rebalancing at monthly or quarterly frequency. Each rebalancing may involve tax implications. There are no restrictions on withdrawal, at the moment. The stocks/ETFs forming part of your WealthBasket reside in your demat account.

Paytm Money’s partnership with WealthDesk is the first step towards creating a wealth and investment advisory marketplace on its platform. At the moment, there are 13 core, thematic, sectoral and model-based investment portfolios on the platform — all managed by Quantech Capital.

For investors, Paytm Money is the transaction platform. WealthDesk is Paytm Money’s technology partner for WealthBaskets. Quantech is the SEBI registered investment advisor (RIA).

WealthDesk, founded by CFA Ujjwal Jain who has previously worked in D.E. Shaw and MSCI, is a unified wealth interface on top of broking ecosystem platform. Quantech Capital is led by Sujit Modi, a CA and ISB alumnus who has worked at Deutsche Bank for 10 years including as VP in the asset and wealth management team that was managing over $10 billion in quant strategies. Modi later worked for over 3 years in index solutions provider MSCI as part of their factor research team.

Plans and pricing

The WealthBasket offering is sold under 3 plans on the Paytm Money app (see table).

Minimum investment amounts for the 13 portfolios range from ₹1,000 to ₹25,000.

The free/starter plan is aimed at stock market newbies. The core plan is for investors who are active investors in MFs, direct stock and ETFs, and who are interested in premium portfolios. There are a total of 7 portfolios under the ‘core’ plan.

The highest-tier is the ‘pro’ plan and it includes portfolios from the ‘free’ and ‘core’ plans. It is for investors who are interested in building a premium core-satellite portfolio with thematic, sectoral etc. exposure. All the 13 portfolios are accessible to ‘pro’ customers. By paying for 6 or 12 months at one go, one can get 40 per cent off on the subscription for core and pro plans.

There are no percentage-based commissions, as in some curated portfolios in other platforms where up to 2.5 per cent (of the investment value) can be charged as access fee. In such a case, the access fee can be ₹12,500 for portfolios that require ₹5 lakh as minimum investment.

Apart from the subscription plan fee, regular brokerage including taxes, may be charged during transactions. Payment gateway charges may be applicable depending on the subscription fee payment mode.

Our take

With WealthBaskets, Paytm Money is providing users access to curated advisory services and products on its app. The flat-fee pricing approach is affordable for investors irrespective of their wallet size.

We like the fact that the portfolios have avoided the standalone midcap or smallcap bias, and instead have gone for a multicap approach. This is important given that many young and millennial investors who constitute a lion’s share of the Paytm Money user base (aged under 35) may think they can take higher risk, but wouldn’t have actually experienced large drawdowns in their short investing experience.

Do note, the past returns of portfolios now are without adjusting for subscription fee and transaction charges, but there is a plan to include all costs in future..

Also, some portfolios can be quite concentrated that may go against the diversification purpose but are necessary to generate higher than market returns as we see in some MF and PMS structures.

As of now, there are 13 portfolios and all are managed by one RIA. This could be due to the fact that Paytm Money is choosing to play it safe. Competing curated investment platforms have allowed scores of RIAs, some even with sub-optimal research bandwidth with regards to active portfolio management.

Paytm Money would do well not to walk down that path as it onboards more advisors and portfolios.

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How you can give life to your lapsed LIC policy

Personal Finance

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LIC has announced a window of opportunity to revive lapsed life policies which will be open until October 22, 2021 for individual policies. The insurer periodically announces such opportunities for policy holders who have fallen behind. A similar offer was announced in November 2019 too.

Policyholders should utilise such opportunities, especially now, considering the heightened need for a risk cover. Reviving an existing policy with rates and terms of earlier periods can be beneficial and cheaper as well. Compared to reviving an older risk cover, the expected premium for new life covers from most insurance providers are expected to increase significantly in future. The increase in premiums is to compensate for higher claims post the pandemic and higher reinsurance costs for underwriting term, health, and life insurance policies.

Current scheme

In the current window, policies which are in the premium paying term and have not completed their policy term are eligible for revival. Lapsed policies, which are within 5 years from the date of first unpaid premium can be revived along with a concession on the late fee. According to LIC, the concession is not applicable to high risk covers such as term assurance plans and policies which are covering for multiple risks. Health and micro Insurance plans also qualify for the concession on the late fee.

For a total receivable premium of up to ₹1,00,000 (cumulative unpaid premiums), a late fee concession of 20 per cent is applicable up to a maximum concession of ₹2,000. Similarly, for receivable premium sum of ₹1,00,001 to ₹3,00,000, 25 per cent late fee concession up to a maximum of ₹2,500 and for premiums above ₹3,00,001, 30 per cent late fee concession is allowed up to a maximum of ₹3,000. While a concession on the late fee is being allowed during the specified time frame, there will be no concession on medical requirements.

Ordinary revival schemes

Most policies generally have a grace period of 15 days for monthly payments and one month for other payment frequencies such as quarterly, half-yearly and annual. Post non-payment within the grace period, the policy can lapse. The revival of such a policy is a fresh contract, with the insurer having the right to impose fresh terms and conditions. A lapsed policy can be revived by payment of accumulated premiums with interest and a penalty. You have to submit the relevant health documents too.

In an ordinary revival, upon receipt of unpaid premium plus current interest rate (around 8 per cent currently) within 6 months of the first unpaid premium, the policy is revived. A certificate of good health and medical report as per the policy demands may also become necessary. For a revival on medical basis, medical requirements based on policy specifications will be required for continuing the cover.

Even in ordinary circumstances (outside of the policy revival campaign currently underway), revival schemes are available for making a financially easier return to the insurance fold. But if one has missed more than a couple of premiums, the lump sum payment of the same can be become burdensome. LIC’s special revival scheme can be utilised in such situation. If a policy has lapsed for not more than 3 years (from the date of last unpaid premium), the scheme allows you to shift the commencement date, allowing for the payment of just one unpaid premium, calculated on the basis of age and applicable health conditions. Such an option is allowed only once in the entire policy term and the policy should not have acquired surrender value (reached after paying three full year premiums to LIC). Instalment revival, survival benefit cum revival scheme and loan cum revival scheme are other financially modified options available, if an ordinary revival or special revival are not appropriate for the customer.

In ordinary circumstances, insurance policies can be revived but only within a period of two years from the date of the last unpaid premium. The current offer allows for a five-year window to revive old policies and adds a discount to the late fees being paid as well. Amongst the many lessons taught by the pandemic, the most critical one has been the necessity of an insurance cover and LIC’s current campaign for reviving old policies could not have come at a better time.

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Anecdotal, though-provoking memoir on India’s banking system, BFSI News, ET BFSI

Banking & Finance

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New Delhi, This is a highly anticipated account of some of the critical periods in the history of Indias financial sector by one of the countrys most talented and established banking professionals in the country, Rajnish Kumar, former Chairman of State Bank of India (SBI), Indias largest commercial bank.

“The Custodian of Trust” (Penguin) is the story of Rajnish Kumar’s incredible journey as a banker. Debuting as a writer with his memoir, Kumar shares his stories – from being a probationary officer in SBI to becoming its chairman in 2017 – capturing the many changes he witnessed in India’s banking sector during his career. Recounting his experiences about the aftermath of demonetization; challenges in YES Bank; the crisis in Jet Airways and NPAs, this book is anecdotal, engaging and thought- provoking, and will attract a wide spectrum of readers.

“I am pretty excited to share my journey of 40 years with State Bank of India and offer glimpses of my personal life,” Rajnish Kumar said.

“SBI is considered a proxy to the Indian Economy. In that sense, the book is also an account of the tremendous progress made by the country as well as the banking and financial system in the last four decades. The removal of poverty has been the biggest challenge and banks have played a critical role in the fight against poverty. There are many untold and unknown stories in the book, which I am sure readers will find interesting and inspirational,” he added.

Even before its official launch, “The Custodian of Trust” has received generous praise and endorsements from the stalwarts of India Inc. and the banking industry. Ratan Tata, Chairman Emeritus, Tata Sons, remarked that “this book is not just about the banking system of our country, but a chronicle of contemporary economic history”. Uday Kotak, CEO, Kotak Mahindra Bank, said about the book: “It has the potential to be a Bollywood blockbuster.”

Premanka Goswami, Executive Editor at Penguin Random House India, said: “Rajnish Kumar assumed the responsibility to lead the country’s biggest commercial bank at a critical time when India’s financial sector was going through a turmoil. ‘The Custodian of Trust’ opens a window to these times. We, at Penguin House Random House India, are excited to publish Kumar’s memoir.”

Rajnish Kumar joined SBI as a probationary officer in 1980. He served the bank in various capacities across the country and overseas. Prior to his appointment as Chairman, he was Managing Director (National Banking Group) at the bank overseeing the Retail business and Digital Banking. He was Chairman of the Indian Banks Association and served on the boards of many other companies while serving SBI.

Currently, he is a director on the boards of HSBC Asia Pacific, L&T Infotech Ltd and Lighthouse Communities Foundation. He is also an exclusive advisor to Kotak Investment Advisors Ltd and senior advisor to Baring Private Equity Asia Pvt Ltd.

–IANS

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Anecdotal, though-provoking memoir on India’s banking system, BFSI News, ET BFSI

Banking & Finance

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New Delhi, This is a highly anticipated account of some of the critical periods in the history of Indias financial sector by one of the countrys most talented and established banking professionals in the country, Rajnish Kumar, former Chairman of State Bank of India (SBI), Indias largest commercial bank.

“The Custodian of Trust” (Penguin) is the story of Rajnish Kumar’s incredible journey as a banker. Debuting as a writer with his memoir, Kumar shares his stories – from being a probationary officer in SBI to becoming its chairman in 2017 – capturing the many changes he witnessed in India’s banking sector during his career. Recounting his experiences about the aftermath of demonetization; challenges in YES Bank; the crisis in Jet Airways and NPAs, this book is anecdotal, engaging and thought- provoking, and will attract a wide spectrum of readers.

“I am pretty excited to share my journey of 40 years with State Bank of India and offer glimpses of my personal life,” Rajnish Kumar said.

“SBI is considered a proxy to the Indian Economy. In that sense, the book is also an account of the tremendous progress made by the country as well as the banking and financial system in the last four decades. The removal of poverty has been the biggest challenge and banks have played a critical role in the fight against poverty. There are many untold and unknown stories in the book, which I am sure readers will find interesting and inspirational,” he added.

Even before its official launch, “The Custodian of Trust” has received generous praise and endorsements from the stalwarts of India Inc. and the banking industry. Ratan Tata, Chairman Emeritus, Tata Sons, remarked that “this book is not just about the banking system of our country, but a chronicle of contemporary economic history”. Uday Kotak, CEO, Kotak Mahindra Bank, said about the book: “It has the potential to be a Bollywood blockbuster.”

Premanka Goswami, Executive Editor at Penguin Random House India, said: “Rajnish Kumar assumed the responsibility to lead the country’s biggest commercial bank at a critical time when India’s financial sector was going through a turmoil. ‘The Custodian of Trust’ opens a window to these times. We, at Penguin House Random House India, are excited to publish Kumar’s memoir.”

Rajnish Kumar joined SBI as a probationary officer in 1980. He served the bank in various capacities across the country and overseas. Prior to his appointment as Chairman, he was Managing Director (National Banking Group) at the bank overseeing the Retail business and Digital Banking. He was Chairman of the Indian Banks Association and served on the boards of many other companies while serving SBI.

Currently, he is a director on the boards of HSBC Asia Pacific, L&T Infotech Ltd and Lighthouse Communities Foundation. He is also an exclusive advisor to Kotak Investment Advisors Ltd and senior advisor to Baring Private Equity Asia Pvt Ltd.

–IANS

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Anecdotal, though-provoking memoir on India’s banking system, BFSI News, ET BFSI

Banking & Finance

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Read More/Less


New Delhi, This is a highly anticipated account of some of the critical periods in the history of Indias financial sector by one of the countrys most talented and established banking professionals in the country, Rajnish Kumar, former Chairman of State Bank of India (SBI), Indias largest commercial bank.

“The Custodian of Trust” (Penguin) is the story of Rajnish Kumar’s incredible journey as a banker. Debuting as a writer with his memoir, Kumar shares his stories – from being a probationary officer in SBI to becoming its chairman in 2017 – capturing the many changes he witnessed in India’s banking sector during his career. Recounting his experiences about the aftermath of demonetization; challenges in YES Bank; the crisis in Jet Airways and NPAs, this book is anecdotal, engaging and thought- provoking, and will attract a wide spectrum of readers.

“I am pretty excited to share my journey of 40 years with State Bank of India and offer glimpses of my personal life,” Rajnish Kumar said.

“SBI is considered a proxy to the Indian Economy. In that sense, the book is also an account of the tremendous progress made by the country as well as the banking and financial system in the last four decades. The removal of poverty has been the biggest challenge and banks have played a critical role in the fight against poverty. There are many untold and unknown stories in the book, which I am sure readers will find interesting and inspirational,” he added.

Even before its official launch, “The Custodian of Trust” has received generous praise and endorsements from the stalwarts of India Inc. and the banking industry. Ratan Tata, Chairman Emeritus, Tata Sons, remarked that “this book is not just about the banking system of our country, but a chronicle of contemporary economic history”. Uday Kotak, CEO, Kotak Mahindra Bank, said about the book: “It has the potential to be a Bollywood blockbuster.”

Premanka Goswami, Executive Editor at Penguin Random House India, said: “Rajnish Kumar assumed the responsibility to lead the country’s biggest commercial bank at a critical time when India’s financial sector was going through a turmoil. ‘The Custodian of Trust’ opens a window to these times. We, at Penguin House Random House India, are excited to publish Kumar’s memoir.”

Rajnish Kumar joined SBI as a probationary officer in 1980. He served the bank in various capacities across the country and overseas. Prior to his appointment as Chairman, he was Managing Director (National Banking Group) at the bank overseeing the Retail business and Digital Banking. He was Chairman of the Indian Banks Association and served on the boards of many other companies while serving SBI.

Currently, he is a director on the boards of HSBC Asia Pacific, L&T Infotech Ltd and Lighthouse Communities Foundation. He is also an exclusive advisor to Kotak Investment Advisors Ltd and senior advisor to Baring Private Equity Asia Pvt Ltd.

–IANS

vm/ksk/



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Anecdotal, though-provoking memoir on India’s banking system, BFSI News, ET BFSI

Banking & Finance

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Read More/Less


New Delhi, This is a highly anticipated account of some of the critical periods in the history of Indias financial sector by one of the countrys most talented and established banking professionals in the country, Rajnish Kumar, former Chairman of State Bank of India (SBI), Indias largest commercial bank.

“The Custodian of Trust” (Penguin) is the story of Rajnish Kumar’s incredible journey as a banker. Debuting as a writer with his memoir, Kumar shares his stories – from being a probationary officer in SBI to becoming its chairman in 2017 – capturing the many changes he witnessed in India’s banking sector during his career. Recounting his experiences about the aftermath of demonetization; challenges in YES Bank; the crisis in Jet Airways and NPAs, this book is anecdotal, engaging and thought- provoking, and will attract a wide spectrum of readers.

“I am pretty excited to share my journey of 40 years with State Bank of India and offer glimpses of my personal life,” Rajnish Kumar said.

“SBI is considered a proxy to the Indian Economy. In that sense, the book is also an account of the tremendous progress made by the country as well as the banking and financial system in the last four decades. The removal of poverty has been the biggest challenge and banks have played a critical role in the fight against poverty. There are many untold and unknown stories in the book, which I am sure readers will find interesting and inspirational,” he added.

Even before its official launch, “The Custodian of Trust” has received generous praise and endorsements from the stalwarts of India Inc. and the banking industry. Ratan Tata, Chairman Emeritus, Tata Sons, remarked that “this book is not just about the banking system of our country, but a chronicle of contemporary economic history”. Uday Kotak, CEO, Kotak Mahindra Bank, said about the book: “It has the potential to be a Bollywood blockbuster.”

Premanka Goswami, Executive Editor at Penguin Random House India, said: “Rajnish Kumar assumed the responsibility to lead the country’s biggest commercial bank at a critical time when India’s financial sector was going through a turmoil. ‘The Custodian of Trust’ opens a window to these times. We, at Penguin House Random House India, are excited to publish Kumar’s memoir.”

Rajnish Kumar joined SBI as a probationary officer in 1980. He served the bank in various capacities across the country and overseas. Prior to his appointment as Chairman, he was Managing Director (National Banking Group) at the bank overseeing the Retail business and Digital Banking. He was Chairman of the Indian Banks Association and served on the boards of many other companies while serving SBI.

Currently, he is a director on the boards of HSBC Asia Pacific, L&T Infotech Ltd and Lighthouse Communities Foundation. He is also an exclusive advisor to Kotak Investment Advisors Ltd and senior advisor to Baring Private Equity Asia Pvt Ltd.

–IANS

vm/ksk/



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Bank of Maharashtra launches digital lending platform for retail loans

Banking & Finance

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Bank of Maharashtra (BoM) has launched a Digital Lending Platform which will enable its current and prospective customers to avail home and car loans through a paperless process at the convenience of their place and time of choice.

The platform provides ‘in-principle approval’ for home loans and car loans instantly on filling in the required information digitally without human intervention, the Pune-headquartered public sector bank said in a statement.

Digitisation of services

Customers can avail the digital lending facility by visiting the bank’s website. The bank underscored that the platform is capable of validating KYC, CIBIL and financial information of the loan applicant and provide ‘in-principle approval’ in a hassle-free manner.

Also see: Empowering agri cooperative credit societies through digitalisation

A S Rajeev, MD & CEO, BoM, said the platform will help upscale retail lending through digitisation.

The Bank has taken several measures to strengthen its digitisation process internally, thereby facilitating delivery of hassle-free services, he added.

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Top Senior Citizens Investments With Tax Saving

Personal Finance

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1. Tax-saving Fixed Deposits

Tax savings FDs are different from other types of FDs in terms of their lock-in period; these FD will have to be fixed for 5 years in a bank. You can avail of a tax deduction on investments in this FD under Section 80C of the Income Tax Act, 1961. For senior citizens, it can be a good option as you can claim a maximum deduction of Rs. 1.5 lakh yearly by investing in a tax-saving FD scheme. FD is a lucrative option for citizens as you can get the interest monthly, quarterly or yearly basis. Senior citizens, who have retired can earn their monthly needs from this tax savings FD scheme with a lock-in period of 5 years. Senior citizens will receive higher interest rates than other citizens. SBI offers a 6.20% interest on a tax-saving FD scheme for senior citizens, Ujjivan Small Finance Bank offers a better interest on the same scheme.

2. Senior Citizen Savings Scheme (SCSS)

2. Senior Citizen Savings Scheme (SCSS)

Senior Citizen Savings Scheme (SCSS) is another popular choice among senior citizens, and one can open this account in any bank or Post Office, with accurate age proof. The benefits earned under the scheme will be the same irrespective of the fact that you are opening the account in a bank or a post office. You will get 7.4% PA interest yearly. You can make only one deposit in the account in multiple of Rs. 1000, and the maximum limit of this FD is Rs. 15 lakh. In this investment, you can get a tax benefit under Section 80C of the Income Tax Act, 1961.

3. National pension scheme (NPS)

3. National pension scheme (NPS)

The national pension scheme (NPS), offered by the Pension Fund Regulatory and Development Authority (PFRDA) is open for all Indian employees; you will have to make a minimum contribution of Rs. 6000 in an FY. You can either pay the amount as a lump sum or in a monthly installment of Rs. 500. The age limit has recently been changed, the maximum age of joining NPS is increased to 70 years now, from the previous 65 years. This kind of investment is linked with the equity market, thus it offers a higher return than other assured investment options. The interest rate of this plan is 9%-12%. you can withdraw up to 25% of the total contribution 3 times in 5 years.

4. Tax-free bonds

4. Tax-free bonds

Tax-free bonds are preferred by citizens in the highest tax bracket. Public sector undertakings like IRFC, PFC, NHAI, HUDCO, REC, NTPC, NHPC, and Indian Renewable Energy Development Agency (IREDA) can offer these bonds. The tenure of these bonds are, 10 years, 15 years, and 20 years, and you will have to buy these bonds through a Demat account. However, you can sell the bonds in the secondary market before this time. The government will notify the issue time of these bonds. But you can also buy these bonds from the secondary market at any time, as these are listed on the BSE and NSE. These bonds are good investments options for senior citizens with good lump sum money, and the interest will be tax-free according to government regulations.

5. Public Provident Fund (PPF)

5. Public Provident Fund (PPF)

Public Provident Fund (PPF) is one of the top rates investment opportunities in India considering its interest rate, assurance, and tax-saving factors in mind. The union government of India issues the PPF scheme through banks or post offices. The benefits are the same in a bank or a post office, as the scheme remains the same. The interest of PPF is 7.1 % PA (compounded yearly), which is quite good than other assured options. You can invest a minimum of Rs. 500 and maximum Rs. 1,50,000 in an FY and the deposits can be made in lump-sum or installments. The deposits qualify for deduction under section 80C of the Income Tax Act. However, the tenure of this scheme is 15 years.



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CBI charge sheet against ex-Yes Bank managing director Rana Kapoor, wife in Rs 1,700-cr loan scam, BFSI News, ET BFSI

Banking & Finance

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The CBI has filed a charge sheet against former Yes Bank managing director and CEO Rana Kapoor, his wife Bindu and promoter of Avantha Group Company Gautam Thapar in connection with an alleged loan scam of over Rs 1,700 crore, officials said on Friday.

In the charge sheet filed before a special CBI court in Mumbai, the central probe agency has alleged that Kapoor abused his official position and acquired a 1.2-acre uber-luxe bungalow at 40 Amrita Shergill Marg at a very less price than the actual market value.

In its FIR, the CBI had alleged that the property was mortgaged to Yes Bank against a loan of Rs 400 crore by Avantha Group.

“It was also alleged that the actual value of the property was approximately Rs 550 crore which was acquired by then MD and CEO of Yes Bank at a value of around Rs 378 crore and the proceeds of the sale was not used fully to liquidate the existing loan, later declared NPA by the bank,” CBI spokesperson R C Joshi said.

The property was purchased allegedly in the name of a company Bliss Abode Pvt Ltd where Kapoor’s wife Bindu was one of the directors and authorised signatory.

“It was further alleged that against this favour, then MD and CEO (Kapoor) of Yes Bank Ltd. extended additional loan of approximately Rs 1360 crore to other companies of said promoter/director (Thapar) during and after the acquisition of the said property,” Joshi said.

The CBI said these loans were never utilised for the purpose for which they were given and the borrowers were allowed to divert the funds for evergreening of the existing loans of the group companies. PTI ABS NSD NSD



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RBI, BFSI News, ET BFSI

Banking & Finance

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Mumbai, The Reserve Bank of India is reviewing its scheme of penalising banks for non-replenishment of ATMs after getting feedback from lenders, its Deputy Governor T Rabi Sankar said on Friday. In August this year, RBI had announced that it will penalise banks for failure to timely replenish currency notes in ATMs. The scheme, which is aimed at ensuring availability of sufficient cash for the public through ATMs, has come into effect from October 1, 2021.

“We have received various feedback– some positive and some raising concerns. There are issues specific to locations. We are trying to take all the feedback and have a review and see how best it can be implemented,” Sankar told reporters in a post policy call with reporters on Friday.

He said the idea behind the penalty on outages in ATMs is to ensure that cash is available in all ATMs, specially in rural and semi urban areas, all the time.

As per the scheme, cash-out of more than ten hours at any ATM in a month will attract a flat penalty of Rs 10,000 per ATM.

In case of White Label ATMs (WLAs), the penalty would be charged on the bank which is meeting the cash requirement of that particular WLA.

Replying to a query on lower interest rates affecting senior citizens due to fall in fixed deposit rates amid higher inflation, RBI Governor Shaktikanta Das said the cut in repo rate was considered absolutely necessary during the pandemic to support the economy.

“If you are not able to support the overall economy which is collapsing or is moving into a contraction zone, then there would be other major issues for all, including for senior citizens,” he told reporters.

He, however, said one should invest in small savings schemes that are currently offering much higher rates than their actual formula-based rates.

Citing an example, he said the one-year term deposit rate in small savings schemes is at least 170-180 basis points higher than the actual rate which is arrived at by the guidelines.

“In this crisis situation, we should see this (small savings scheme rates) as a fiscal support to senior citizens and middle class and small savers,” Das said. PTI HV

ANU ANU



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