No Annuity rider for NPS withdrawals upto ₹5 lakh: PFRDA

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Pension regulator PFRDA has allowed National Pension System (NPS) subscribers with savings of upto ₹5 lakhs in NPS to take the entire amount at retirement without mandating any investment in annuity.

Hitherto, this facility (without annuity rider) was available only for withdrawal of NPS corpus or savings upto ₹2 lakh at the time of retirement.

Simultaneously, the Pension Fund Regulatory and Development Authority (PFRDA) has also raised the premature withdrawal limit on a lumpsum basis for NPS to ₹2.5 lakh from ₹1 lakh earlier, Supratim Bandyopadhyay, Chairman, PFRDA told BusinessLine.

An NPS subscriber can now prematurely withdraw and get a lumpsum of ₹2.5 lakh before reaching the age of 60.

PFRDA has also now extended the maximum entry age for availing NPS benefit to 70 years from the current 65 years. The exit age limit has also been extended from 70 years to 75 years. Prior to this change, Indians between the age bracket of 18-65 years can open an NPS account.

PFRDA’s move to allow NPS corpus of upto ₹5 lakhs to be entirely withdrawn at retirement comes in the wake of low annuity rates in the system.

Currently, the regulatory norms require a person on retirement to invest at least 40 per cent of the retirement funds in annuities. Now with annuities — which tend to mirror interest rate movements in the system — having hit a bottom with falling interest, the regulator has enhanced the limit to ₹5 lakh.

PFRDA Chairman clarified that the facility of entire withdrawal has been made available only for corpus upto ₹5 lakh and if the corpus were to be, say ₹5.01 lakh, the NPS subscriber will have to buy annuities for ₹2 lakh (40 per cent).

“This is the new annuity rule and if corpus amount exceeds ₹5 lakh, you will have to take annuity and be bound by the rule,” he said.

The main reason for increasing the limit to ₹5 lakhs is that the absolute return of annuity is “too low”, and this was the driving force. Even in Atal Pension Yojana, the minimum pension guaranteed is ₹1 lakh, he pointed out.

When asked about how many NPS subscribers can potentially benefit from the latest rule change, Bandyopadhyay said that “large numbers” would benefit, especially those who had opted to keep the monies with PFRDA and not withdrawn it.

“We had analysed why several people had not chosen annuity and allowed the NPS corpus to remain with PFRDA. We had found that lot of them had realised that annuity that they get will be a paltry sum and will not meet their requirements. So they thought that it is better to keep the monies with PFRDA and then it can be seen,” he said.

India’s pension assets under management (AUM) had crossed the ₹6 lakh crore mark in May. PFRDA is now looking at an AUM target of ₹7.5 lakh crore by end March 2022.

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Flexmoney raises $4.8 million in Series A funding

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Flexmoney, a digital credit network platform for lenders and merchants, has raised $4.8 million in Series A funding, led by Pravega Ventures with participation from Silicon Valley-based Z5 Capital.

The round also saw participation from several marquee individual investors including Ben Davey, former Group Head of Strategy, Barclays Bank & CEO Barclays Ventures; Mike Smith, former Chief Product & Technology Officer, Barclays Ventures & Director, Amazon Core Display Ad Platform; Ambarish Malpani, successful serial entrepreneur and technologist and Rishad Byramjee, Group MD and CEO Casby Logistics & Board Member, Centrum Group.

Flexmoney aims to use the funds to scale its credit network footprint to more lenders and merchants, launch additional products and consolidate its position. Flexmoney had previously raised seed funding from multiple global and domestic angel investors.

Nanda Krish, General Partner at Z5 Capital, said: “InstaCred by Flexmoney is already the largest ‘Buy Now, Pay Later’ platform in India, and the need and potential for this Internet credit infrastructure spans across even more global markets. We’re proud and excited to partner with Flexmoney to scale up and revolutionise the credit ecosystem in India and across the globe”.

Yezdi Lashkari, Founder and CEO of Flexmoney Technologies, said, “Flexmoney’s digital credit platform provides a seamless and secure ‘plug and play’ proposition for trusted lenders and merchants to offer the widest set of options for frictionless, secure, instant checkout finance to their customers and is transforming their purchase experience. With this funding, we are one step closer to achieving our vision of simplifying and democratising consumer credit in India”.

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ICICI Prudential Life Insurance optimistic about growth opportunities in FY22

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ICICI Prudential Life Insurance is optimistic about growth opportunities this fiscal despite the second wave of the Covid-19 pandemic that has impacted many lives and livelihood.

“Our aspiration of doubling the value of new business (VNB) growth by 2020-23 is guided by APE growth or overall topline premium growth. We need to typically grow at 25 per cent to 28 per cent on VNB annually for next two years,” said Amit Palta, Chief Distribution Officer, ICICI Prudential Life Insurance, adding that margin expansion now has limited scope for growth.

In an interaction with BusinessLine, Palta said the insurer registered its best ever month in March 2021, but growth was impacted from the second-half of April as the Covid-19 case load spread.

However, there has been improvement in the last few weeks of May.

Also read: Budget proposal has not affected ULIP segment of ICICI Pru Life: MD and CEO

According to IRDAI data, ICICI Prudential Life Insurance registered a 38.55 per cent growth in first year premium in the first two months of the fiscal upto May 31, 2021 though it declined by 3.93 per cent for the month of May 2021.

Palta said he expects growth to continue based on the additional width in distribution the insurer has set up, a positive environment and the momentum in insurance sales that was seen from the second half of 2020-21.

The insurer added over 100 partnerships last fiscal, which it believes will help distribution and spur growth.

Bancassurance partnerships

In terms of bancassurance partnerships, it tied up with IndusInd Bank, AU Small Finance Bank, IDFC First Bank, RBL Bank and NSDL Payments Bank. It also tied up with distributors including PhonePe and Wealth India Financial Services as well as insurance broking entities —BSE EBIX and Magnum Insurance Broking.

“These partnerships have enabled us to increase our distribution footprint. Specifically, our 23 bancassurance partnerships have enabled us to expand our reach to 16.2 crore bank customers with a footprint of about 12,000 branches,” Palta said.

Partnerships with IndusInd Bank, IDFC First Bank, AU Small Finance Bank and RBL Bank are significant for the insurer. “We got them operational towards the last quarter and we see them as contributing to our growth vision,” Palta said.

About 33 per cent of the business for ICICI Prudential Life Insurance comes from ICICI Bank and another 11 per cent from bancassurance tie-ups with other banks.

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Acuité Ratings and CARE Ratings come together to set up Association of Indian Rating Agencies

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Acuité Ratings and Research and CARE Ratings join hands to set up the Association of Indian Rating Agencies (AIRA) that aims to represent domestic rating agencies.

“To continue to push the agenda of enhancing rating standards and help build trust with investors and issuers, a few rating agencies have come together to form an industry association,” said a statement on Tuesday.

AIRA has been incorporated as a Section 8 (not-for-profit) company and is expected to work closely with the regulator and government for the development of the debt market.

Also read: About 50% of rated entities are ‘issuer non-cooperating’

“The rating industry, in active engagement with and facilitation by SEBI, has taken several steps to enhance the standards of credit ratings in the country,” it further noted.

While Acuité Ratings and Research and CARE Ratings are the founding members of the association, all rating agencies are invited to be a part of the association.

Other members

The process of inducting two more rating agencies is currently underway and expected to get completed soon.

AIRA has also written to the other three rating agencies welcoming them to join the association as shareholders-cum-members.

At present, there are seven credit ratings agencies registered with SEBI that cumulatively have ratings coverage on over 57,000 entities.

Ajay Mahajan, Managing Director and CEO, CARE Ratings said, “Through this association, we aim to engage extensively and constructively with all stakeholders, including the regulators and policy makers, for the orderly development of the debt market with the increased usage of credit rating.”

Sankar Chakraborti, Group CEO and Executive Director, Acuité Ratings & Research said the association will work with all stakeholders to enhance availability and flow of information needed for ratings and create awareness of best practices adopted by the industry.

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Navi General Insurance launches health insurance through EMI option

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Navi General Insurance has introduced a subscription-based health insurance in Kerala through monthly EMIs instead of paying an upfront annual premium.

The health insurance policies can be purchased using EMIs starting as low as ₹240 per month. With no agents and a completely digital and paperless process, customers can buy health insurance via the Navi Health app within 2 minutes, with the policy issued to them instantly on the app. The company offers health insurance cover ranging from ₹2 lakh to ₹1 crore for individuals and families.

Also read: Recovered from Covid? It may be difficult to get insurance cover now

It has an industry-leading Claim Settlement Ratio of 97.3 per cent and a network of 10,000+ cashless hospitals across 400+ locations in the country including around 328 in Kerala, a press release said.

Ramchandra Pandit, MD & CEO of the firm said the health insurance coverage in the country is extremely low, as many people believe buying health insurance is not just complex and cumbersome, but also unaffordable. With ever-rising medical and healthcare costs, Navi’s subscription-based option for buying health insurance will help to make the insurance cover more affordable and accessible to many more customers.

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Reserve Bank of India – Press Releases

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April 14, 2015




Dear All




Welcome to the refurbished site of the Reserve Bank of India.





The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.




With this makeover, we also take a small step into social media. We will now use Twitter (albeit one way) to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy.




The site can be accessed through most browsers and devices; it also meets accessibility standards.



Please save the url of the refurbished site in your favourites as we will give up the existing site shortly and register or re-register yourselves for receiving RSS feeds for uninterrupted alerts from the Reserve Bank.



Do feel free to give us your feedback by clicking on the feedback button on the right hand corner of the refurbished site.



Thank you for your continued support.




Department of Communication

Reserve Bank of India


Next

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HDFC Bank’s mobile app down, bank says ‘looking on priority’, BFSI News, ET BFSI

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New Delhi: Customers of HDFC Bank have been facing issues with the bank’s mobile banking application.

In a tweet, the bank has said that it is looking into the matter on priority and urged the customers to used net banking to complete their transactions.

“We are experiencing some issues on the MobileBanking App. We are looking into this on priority and will update shortly. Customers are requested to please use NetBanking to complete their transaction. Regret the inconvenience caused. Thank you.” the bank said in a tweet.

Several users took to social media to complain regarding the issues faced on the app.

According to ‘Downdetector’, the issues surged around 10.45 a.m. and people are still facing problems.

This is yet another glitch after customers faced issues in net banking and mobile app in March.

In November last year, a major outage occurred in the bank’s internet banking and payment system on due to a power failure in the primary data centre, following which the Reserve Bank of India (RBI) in December asked the bank to temporarily stop all launches of the digital business generating activities and sourcing of new credit card customers.

In February, the RBI appointed an external professional IT firm to carry out a special audit of the entire IT infrastructure of HDFC Bank following the outage.



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New Income Tax Portal: How to apply for instant PAN using Aadhar?

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Simple Steps to Download Instant E-Pan Card From New Income Tax Portal

Step 1 Visit New Income tax Website

Step 2: Click on Our Services

Step 3: Scroll down and click Show more

Step 3: Click inStant E PAN

Step 4: Click on Get New E PAN

Step 5: Enter your Aadhaar Number or PAN enrollment number

Note that your aadhaar number should be mapped with your mobile number

Step 6: Accept Terms and Conditions

Step 7: Enter OTP and Click on Continue

Step 8: Check details

Step 9: Enter your E mail ID and confirm the same

Step 10: Confirm.

A person can only use the instant PAN facility if the following conditions are met:

1. He or she has never had a PAN assigned to them.

2. His or her Aadhaar number is connected to his or her mobile number.

3. The Aadhaar card contains his or her entire date of birth.

4. He or she must not be a minor at the time of applying for a PAN.

How to Check Status or Download Instant E PAN?

How to Check Status or Download Instant E PAN?

Step 1: Click on the Icon

Step 2: Enter aadhaar number and click on Continue

Step 3: Enter OTP

Step 4: It displays PAN status

Step 5: Click on either view e PAN or Download e PAN

Why is PAN needed?

The PAN allows the department to identify and relate all of the PAN holder’s dealings with the department. Tax payments, TDS/TCS credits, income returns, defined transactions, communications, and so on are examples of these transactions. It allows for easy retrieval of PAN holder information as well as matching of various investments, borrowings, and other commercial activity.

How to Cancel PAN Card?

How to Cancel PAN Card?

If you want to cancel or surrender your PAN, you must submit a cancellation/ surrender request letter to your local Income Tax Assessing Officer.

A person can only have one PAN at a time. For holding more than one PAN, a penalty of Rs. 10,000/- is required to be imposed under section 272B of the Income-tax Act, 1961.

If a person has been assigned more than one PAN, he must relinquish the additional PAN card immediately (s).

Fill in all essential fields in the Form, input the PAN to be cancelled in the appropriate column of the Form, and check the check box on the left margin to cancel the PAN. The PAN to be cancelled should not be the same as the PAN specified at the beginning of the Form (the one currently in use).

How to know PAN, if the PAN card is lost and PAN is forgotten?

How to know PAN, if the PAN card is lost and PAN is forgotten?

In this scenario, one can obtain his PAN by utilising the Income Tax Department’s “Know Your PAN” service. This service is available on the Income Tax Department’s website, www.incometaxindia.gov.in.

A person’s PAN can be obtained online by giving basic information such as his name, father’s name, and date of birth.

You can apply for a duplicate PAN card after you have your PAN number by filling out the “Request for New PAN Card Or/ And Changes Or Corrections in PAN Data” form.



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Reserve Bank of India – Press Releases

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Sr. No. State Notified Amount
(₹ Cr)
Amount Accepted
(₹ Cr)
Cut off Price (₹) / Yield (%) Tenure
(Yrs)
1. Goa 100 100 6.78 10
2. Gujarat 1000 1000 6.75 10
3. Haryana 1000 1000 6.92 15
4. Kerala 1000 1000 6.81 10
5. Maharashtra * 1000 1500 6.80 10
1000 1000 6.83 11
6. Punjab 1500 1500 99.92/6.8209 Re-issue of 6.81% Punjab SDL 2031 issued on June 09, 2021
7. Rajasthan 750 750 6.05 5
750 750 6.84 10
8. Tamil Nadu 1000 1000 5.65 4
1000 1000 99.10/7.0289 Re-issue of 6.96% Tamil Nadu SDL 2056 issued on May 19, 2021
9. Telangana 3000 3000 7.03 30
  Total 13100 13600    
* Maharashtra has accepted an additional amount of ₹500 crore in the 10 year Security.

Ajit Prasad
Director   

Press Release: 2021-2022/364

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HDFC Bank resolves issues after mobile banking app faces glitches

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Private sector lender HDFC Bank was facing technical glitches with its mobile app on Tuesday.

The issues lasted for over an hour. The bank had informed the customers about the same stating that it was looking into the problem which will be resolved “shortly.”

“We are experiencing some issues on the MobileBanking App. We are looking into this on priority and will update shortly. Customers are requested to please use NetBanking to complete their transaction. Regret the inconvenience caused. Thank you,” it tweeted from the official HDFC Bank News account at 12:26 PM IST.

Also read: HDFC MF launches banking and financial services NFO

“Please note the issues around mobile banking app is now resolved. Customers can now use NetBanking and mobile banking app for transactions. We regret the inconvenience and thank you for your patience,” it updated customers at 1:38 PM IST.

The private sector lender has faced multiple outages over the past couple of years. It had suffered intermittent problems with the internet and mobile banking twice in March this year.

Also read: HDFC Bank offers credit upto 75% of project cost to investors of KIADB

In a regulatory filing on February 2, 2021, the bank had said the Reserve Bank of India has appointed an external IT firm for carrying out a special audit of its IT infrastructure.

The bank, after facing five outages in its net and mobile banking services over the last 28 months, in April had said that it was working on a “Technology Transformation Agenda” for its customers.

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