Cheque
are usually crossed as a measure of safety. The act of drawing two parallel
cross lines on the face of the cheque is called crossing of cheque. The
crossing distinguishes cheques from other bills of exchange. The object of
general crossing is to direct the drawee banker to pay the amount of cheque
only to a banker, to prevent the payment of the cheque being made to wrong
person....
Sunday, July 15, 2012
Saturday, July 7, 2012
Features of a Cheque
As we
know that Cheques are reliable, convenient, and widely accepted by businesses
(although proper identification may be required). There so many features of a Cheque.
The
following are the important features of a cheque:
# It is an negotiable instrument in
writing. It may be hand written by ink or typed or printed but writing in pencil
is not allowed.
# No stipulatory conditions should be
there (i.e., an unconditional...
Sunday, July 1, 2012
Forms / Types of Cheque
A Cheque
(in India) or Check (in US) is a piece of paper that authorizes a bank to take
a certain amount of money from your account and pay that amount to another
person or business, or to you as cash.
Forms of Cheque
There
are two types of Cheque. They are 1) Open Cheque and 2) Crossed Cheque.
Forms / Types of Cheque
...
Sunday, June 24, 2012
What is a Cheque: Meaning & its Definition
As
per section 6 of Negotiable Instruments Act 1881, “A Cheque is a bill of
exchange drawn on a specified banker and not expressed to be payable otherwise
than on demand”. Thus it is an instrument in writing containing an
unconditional order signed by the writer / maker directing a specified banker
to pay on demand, a certain sum of money, or to the particular person or to the bearer of the
instrument....
Sunday, June 17, 2012
Top 10 MNC CEOs: 2012
The Economic
Times, in partnership with IMRB International has announced top ten powerful
MNC CEOs for the year 2012 who are developing and reshaping Multinational Companies
/ Corporates in India.
Below is a list of
the top 10 most powerful MNC CEOs for the year 2012:
Top 10 most Powerful MNC CEOs 2012
...
Thursday, June 14, 2012
20 Most Powerful CEOs: India 2012
Top 20 most Performing CEOs in India
The CEO is the top most position in the management level of an organization. He is the decision
maker and is highly responsible person for
the Company's growth and development. ...
Sunday, June 10, 2012
Avoiding Cigarettes, Alcohol can Save Money: Saving Sundays
Giving up expensive habits like cigarettes,
alcohol, and drugs will lead to saving more money for you. Those habits will
reduce money outflow which provides no benefits in return. Work hard to kick out
these habits slowly and you’ll find that money flow will increase
instead of burning up.
If you quit smoking/alcohol at your 20’s, your body
is likely to fully recover as still you are youth. Quitting in your 30’s will
increase your chances...
Sunday, May 27, 2012
Different Kinds of Banks
Do you need to
know what would be various Kinds / Types of Banks i.e., Different Number of Banks available in Banking Industry in India? Just
proceed further to know about it...
1. Saving Banks
Saving banks was
founded to be a secure place for salaried people and low income groups to save
money for a rainy day. Saving banks were established to encourage saving habit
among the people to earn more money. At present, Post offices &...
Thursday, May 24, 2012
Characteristics / Features of a Bank
From
the Definition of Banking mentioned in earlier post, the Characteristics /
Features of a Bank may be listed as follows:
1.
Dealing in Money
Bank
is a business activity which deals with other people's money i.e. getting money
from depositors and lending the same to borrowers.
2. Banking
Business
A bank
is a financial institution which does banking activities of selling financial
services like home loans, business loans, lockers, fixed...
Monday, May 21, 2012
History of Bank
EVOLUTION OF BANKING IN INDIA
The
first public banking institution was The Bank of Venice, founded in 1157. The
Bank of Barcelona and the bank of Genoa were established in 1401 and 1407
respectively. These are the recognized forerunners of modern commercial banks.
Exchange banking was developed after the installation of the Bank of Amsterdam
in 1609 and Bank of Hamburg in 1690.
The
credit for laying the foundation of modern banking in England...
Friday, May 18, 2012
Bank : Origin & Definition
Origin of the term ‘Bank’
The term
‘Bank’ seems to have originated and/or
derived from different sources like the Germanic word ‘banck’, the French word ‘banque’
and the Italian word ‘banco’. The
Germanic word ‘banck’ which means a
joint stock fund or heap. The Italian word ‘banco’
refers to a bench at which the money changers used to change one kind of money
into another and transact their banking business. Thus, in olden days, banking
was...
Tuesday, May 15, 2012
What is Bank and Banking? : Introduction
In this
series of Banking Basics, you will be able to grasp and know all of the
following fundamentals of Banking such as Bank and Banking: Introduction, Origin,
Definition, History, Features of Bank, Types of Bank, Role of Bank in economic
development, How to open Bank Account, Advantages of Opening Bank Account, Cheque,
Demand Draft, Types of Deposits: Fixed Deposit, Recurring Deposit etc.,
Meaning of Bank & Banki...
Sunday, May 13, 2012
How Does the Indian Stock Market Work?
For a new investor, the stock market can make them feel a
lot like legalized gambling market but reality is different as it is driven by
supply and demand chain where buying and selling of stocks happen. The supply
is determined by the availability of number of stocks for sale and the demand
indicates the reverse of it i.e., number of shares that investors want to buy
from the seller. It's important here to note that if anyone bought / purchased
a...
Monday, May 7, 2012
Indian Stock Exchanges: History & Introduction to Beginners
Stock
exchanges
Stock
exchange means anybody of individuals, whether incorporated or not constituted
for the purpose of regulating or controlling the business of buying selling or
dealing in securities. The Stock exchanges deal with Securities which include:
i)
Shares,
scrips, stock, bonds, debenture stock or other marketable securities of...
Saturday, May 5, 2012
PRINCIPLES OF INSURANCE
In
continuation to Basics of Insurance Planning regarding what is Insurance and history
of insurance, let’s now know the principles applicable to Insurance.
A
contract of insurance is a mercantile contract. All the principles which are applicable
to mercantile contracts are applicable to contracts of insurance. In addition
to this, there are special principles applicable to contracts of insurance.
Special
Principles of Insurance are as...
Wednesday, May 2, 2012
Why do we need Insurance Planning ?
CAN
YOU BE SURE AS TO WHAT MAY HAPPEN TO “U” IN THE NEXT FEW MINUTES???...
DO
YOU WANT TO BE FINANCIALLY SECURE IN THE EVENT OF ANY UNFORESEEN CALAMITY???...
As
you know like this Life is full of uncertainties & unpredictable events, so
insurance is needed to provide peace 0f mind for you;
The
following Insurance benefits will provide you some idea on why do you need
Insurance Planning in present situation. Need for Insurance Planning...
Sunday, April 29, 2012
History of Insurance
Next
to understand after Insurance basic knowledge is Stages of Insurance history in
crisp.
#
It
started from Lloyd’s coffee house London
#
First
policy issued in England in 1583
#
It
had its origins in the early 19th century with the arrival of British
enterprise in India.
...
Thursday, April 26, 2012
What is Insurance ?
Insurance
"To
understand and implement proper Insurance Planning, you should be able to grasp
the following in the upcoming posts - WHAT
IS INSURANCE, HISTORY OF INSURANCE and PRINCIPLES OF INSURANCE".
Insurance
is based on principles of co-operation. The losses suffered by a few are spread
over and shared by many. For example, collecting insurance premium from many
people and sharing the loss with one person.
Insurance
is protection...
Tuesday, April 24, 2012
Why do we need Investment Planning ?
We must clearly understand
that all that we purchase out of our surplus money is not investment. We also
need to understand that what we saving is not totally an investment.
We assume that
real estate is always an investment, but when we buy a property for our own use,
we can’t treat it as an investment. i.e., buying a house is a real estate deal
but is not an investment, if consumed by us.
Likewise, Buying a Vehicle (Car/Motorbike)
is...
Sunday, April 22, 2012
Akshaya Tritiya and Gold Buying 2012
Crisp of Akshaya Trithiya
As per Hinduism / Hindu
astrology and almanac, Akshaya Trithiya, or Akha Teej, is considered as a most
auspicious day which falls on the third (Tritiya) day after Amavasai (no moon
day) in the Hindu calendar month of Vaishakha / Chithirai. In 2012, the Akshaya
Trithiya day starts from 2012, April 23
evening 5:30pm to April 24, 2012. It is considered...
Wednesday, March 21, 2012
Individuals' Tax Burden Good or Bad: Budget 2012-13 Analysis
Is Budget
2012-13 a Blessing or Curse for Individual Tax Payers?
As informed in
earlier post of Personal Income Tax Slab:Budget 2012-13, Personal Income tax exemption limit
raised to Rs 2,00,000 from Rs 1,80,000 by just Rs 20,000; 10 % tax rate for Rs
2 - 5 Lakhs income bracket; 20 % tax rate for Rs 5 - 10 Lakhs income bracket
and 30 % tax rate for income above Rs 10 Lakhs;
There seems to
be a small benefit on tax burden based on the...
Sunday, March 18, 2012
Mastering thirty day rule: Saving Sundays
Whenever you're
considering something which is needless to buy, delay for a Calendar month (30 days) and
then ask yourself if you still want that product. Quite often, you'll be
astonished to discover that the desire to buy has been passed away and you'll
have saved yourself some cash by basically waiting & withdrawing from
buying. But to the...
Personal Income Tax Slab:Budget 2012-13
Income Tax
Burden has to come down a bit but not much as Personal income tax exemption
limit raised from Rs 1,80,000 to Rs 2,00,000 by just Rs 20,000 only; 10 per
cent tax slab will be applied for 2 lakhs-Rs 5 lakhs income bracket; 20 per
cent tax slab applied for Rs 5 lakhs-Rs 10 lakhs income bracket and 30 per cent
tax slab will be applied for income beyond Rs 10,00,000;
To have a clear
idea & understanding, The Income Tax slabs announced...
Saturday, March 17, 2012
Highlights of Budget 2012-13: Key Proposals
Finance Minister
Mr. Pranab Mukherjee presented his seventh Union Budget for the year 2012-13 on
Friday, 16 March 2012 11:00 Am. While commencing his speech, Mr Pranab
Mukherjee, FM said that for the Indian economy, this financial year of 2012 was
"a year of recovery interrupted"
which means that it was time to make tough decisions. So what has Finance
Minister proposed in this Indian Union Budget 2012-13.
In Continuation to the post of What's...
Friday, March 16, 2012
What's gone up and down :Union Budget 2012-13
Ups and Downs of Union Budget 2012-13
Here is the
bullet point list where you can find out what's gone up due to tax rate hike
and what's gone down due to tax rate reduction after the Union Budget
presentation for 2012-13 by Finance Minister Pranab Mukherjee on Friday, 16
March 2012 11:00 Am. . .
WHAT’S GOING UP
#
Consumer
Electronics...
Thursday, March 15, 2012
What is Retirement Planning?
"Planning & Taking care of your
peaceful long retirement period"
Retirement Planning Ahead in your Financial Planning
Retirement Plan
is an arrangement to protect people with adequate income to have a enjoyable
retirement life when the steady income from your employment comes to end;
Retirement
Planning is the process of determining retirement income goals...
Tuesday, March 13, 2012
Sunday, March 11, 2012
Liquid Funds Disqualified by Savings Bank Interest Rate Deregulation:Saving Sundays
Effect of Savings Bank Interest Rate Deregulation over Liquid Funds
Recent RBI's
decision of Savings Bank Interest Rate Deregulation may affect money flow and
growth of Liquid Funds.
Earlier for
retail investors, liquid funds were trusted as suitable and superior to savings
bank accounts for parking their surplus cash. But now with the Reserve Bank of
India (RBI)’s decision to deregularize the savings bank account interest rate,
liquid...
Friday, March 9, 2012
What is Insurance Planning?
Let us see what is Insurance Planning in Layman meaning:
# Insurance
Planning, in simple terms, is nothing but managing the risk by planning to deal
with contingencies and unforeseen events to help out our family's future.
# Proper Insurance
Planning can help you to compare and evaluate various options with regard to
different insurance companies & insurance products for...
Wednesday, March 7, 2012
Tax Planning Definition
“TAX
PLANNING IS NOT TAX EVASION”
Tax Planning
involves selecting the right tax saving instruments and making investments
accordingly. Tax Planning leads to making investments or contributions in line
with prescribed guidelines of available tax exemptions, deductions, rebates and
allowances that lead to a reduction in tax liability.
Prudent Tax Planning is judiciously using provisions of the...
Sunday, March 4, 2012
RBI De-regularizing: Savings Bank Interest Rate will increase now
Savings Bank Interest Rate
Deregulated by RBI
Previously on
May 03,2011, Savings Bank Interest Rate was increased of 0.5 % point from 3.5
per cent to 4.0 per cent per annum; But now vide its Notification
No.RBI/2011-12/233, DBOD.dir.BC.No.42/13.03.00/2011-12 dtd. October 25, 2011,
the RBI has ended the era of controlled interest rate regime by deregulating
the savings bank deposit interest rate with effect from October 25, 2011.
Banks
are...
Thursday, March 1, 2012
CRR and its Effects on Money Supply…
In Continuation
to CRR Reduction by RBI in the
previous post, now it’s time to understand CRR and its Effects on money supply…
CRR Explained
# Cash reserve
Ratio (CRR) is the amount of Cash (liquid cash like gold) that the banks have
to keep with RBI. This Ratio is basically to secure solvency of the bank and to
drain out the excessive money from the banks;
# Cash Reserve
Ratio (CRR) is a bank regulation that sets the minimum reserves each...
Wednesday, February 29, 2012
Benefits of Investment Planning
Be it a regular
income in your retired life, or savings for purchasing a new house / car; there
is no way you can do it without investing your surplus money (apart from
meeting your daily needs) in right investment portfolio mix....
Monday, February 27, 2012
What is Investment Planning ?
Investment Planning Explained…
# Investment
Planning is the Part of financial Planning that pertains to the allocation of
investment assets.
# The basic idea
to save is to use it when we face emergency (i.e., deficit in our cash flow).
To ensure that your saving money's grow well to take care of our future
financial dreams to reap adequate benefits from it, it is very important to
begin a proper investment planning.
# It is an ongoing
process...
Sunday, February 26, 2012
CRR reduced to 5.5% from 6% with effect from January 28, 2012
After nearly two
years of tight check on money supply to tame inflation, Reserve Bank of India
(India's central bank) took steps on 24.01.2012 (Tuesday) to infuse more
liquidity in the system by reducing a key rate (CRR) to help industry out of
the current downturn.
The Cash ReserveRatio (CRR), the amount against deposits which commercial banks have to keep as
liquid assets such as cash, has been lowered by 50 basis points to 5.5 percent
from...
Sunday, February 19, 2012
Validity of Cheques Reduced from 6 to 3 Months: Saving Sundays
Payment of
Cheques/Drafts/Pay Orders/Banker’s Cheques – Validity period slashed to 3 months from 6 months : RBI Circular
This is to
inform you guys that with effect from 1st Apr 2012, Reserve Bank of India
(RBI) vide its Notification No.RBI/2011-12/251, DBOD.AML BC.No.47/14.01.001/2011-12 dtd. November 4, 2011, has announced a major change in
slashing the validity period for Cheques/Drafts/Pay orders/Banker’s cheques
from 6 months to 3
months.
This...
Sunday, February 12, 2012
Turn off the Television: Saving Sundays
One of the biggest
ways to save money is to watching less television.
If you turn off
your television, you will get the following benefits (financially and mentally):
1) You will not lose the opportunities
2) You will not become TV Shows addicti...
Thursday, February 9, 2012
Steps in Financial Planning Process
In Continuation
to the previous posts regarding What
is Financial Planning and its scope, Benefits
of financial planning, How
To Make Financial Planning Work For You?, now are ready to know the 6 step Financial Planning Process
Guide in this post.
This step by
step Financial Planning Guide is designed to help you overcome all of the
obstacles faced in the way of your personalized financial plan preparation.
The financial
planning process...
Sunday, February 5, 2012
Drink More Water: Saving Sundays
Benefits of Drinking Water
Not only does
drinking plenty of water have great health benefits, drinking water has
financial benefits too. Before each meal, drink a glass of water which will not
only help to digest your meal better and also you wonʼt eat too much, leads to saving
on your food bill &
medical bill. You will also find
yourself feeling a bit better as...
Sunday, January 29, 2012
Don’t go shopping without a need for it: Saving Sundays
Just ask a
question to yourself before you go for shopping of something - Do you really
need it? ; If Yes, then look for the sale & go for shopping. Otherwise don’t
waste money by going for window / impulse shoppin...
Sunday, January 22, 2012
Dine Out for Special Occasions Only: Saving Sundays
Make sure you
dine out only for special occasions. This is to be implemented and followed immediately
because you could get a week’s worth of groceries to cook at home for the same
amount that you pay for a single dinner at a restaurant per person....
Tuesday, January 17, 2012
How To Make Financial Planning Work For You?
All of us are
conscious of the phrase ‘Financial Planning’ but few know how to make effective personal financial planning.
If you want to
focus on your financial planning process and to know why is it important for proper financial planning to achieve your personal aim
efficiently, you are in the right place at the right time. As your involvement
in the process is...
Sunday, January 15, 2012
Don’t plan vacation during peak tourist season : Saving Sundays
This will always
be more expensive. Instead, “Travel
off-season”. So you can still enjoy the weather along with better rates to
slash away your cost to reduce your budget.
Don’t ever plan
to have your vacations during peak travel times, like New Year, Thanksgiving, Christmas
or Independence Day, where you will pay significantly more for...
Thursday, January 12, 2012
Benefits of Financial Planning
After knowing
what is Financial Planning and its scope, you would be wondering what would be
the advantages over your financial planning. Below are some of the benefits you
might receive when you invest the time, energy and money to develop your own
personal financial plan.
1. Assessing Financial Picture
Financial
Planning helps you to assess your current, complete financial picture (cash flow,
net-worth, investments, income taxes, etc.)...
Tuesday, January 10, 2012
Financial Planning & its scope
# Financial
Planning is defined as the process whereby an individual's personal and financial
goals are achieved through the development and implementation of a
comprehensive financial plan.
# Financial
Planning is not just about making Money. It's about buying/achieving all the
goals of a person and creating opportunities to...
Sunday, January 8, 2012
Pay Your Credit Cards On Time: Saving Sundays
Get Ready to Save Money! Saving Tips Every Sundays
Pay your credit card balances in full on time to
maintain a good credit rating or record & avoid late fees, finance charges.
It is better to use cash as much as possible, unless using plastic card will be
advantageous to have a better deal (like 0 % interest on...
Saturday, January 7, 2012
Investment: Types of Risk
After understanding what is risk associated with Investment in the previous post, now you can understand their types to have better idea - Systematic and Unsystematic Risk.
Systematic Risk (External Risk)
Market Risk,
Interest Rate Risk and Purchasing Power Risk are grouped under systematic risk.
a) Market Risk
Sources of Risk: Market Risk is referred to as stock
variability due to...
Thursday, January 5, 2012
Risks associated with Investments
Risk and uncertainty
are an integral part of an investment decision. Technically, 'Risk' can be
defined as a situation where the possible consequences of the decision that is
to be taken are known. 'Uncertainty' is generally defined to apply to
situations where the probabilities cannot be estimated. However, risk
and uncertainty are used interchangeably.
The main focus
contributing to risk are price and interest. Risk is also...
Tuesday, January 3, 2012
Make Sure Your Money is Safe (DICGC Guarantee)
Guide to the Deposit Insurance System in India
Deposit
Insurance and Credit Guarantee Corporation (DICGC) (a wholly owned subsidiary
of RBI) guarantees Deposit Insurance Coverage up to Rs. 1,00,000 (Rupees One Hundred Thousand) for all
Leading Commercial Banks.
Each depositor
in a bank is insured up to a maximum of Rs. 1,00,000 for both principal and interest...
Sunday, January 1, 2012
Use Energy Saving CFL Lights:Saving Sundays
This is my first
post in the Series of Saving Sunday’s .
This series is my initiative to share
practical money saving tips to my friends like you.
Use Energy Saving Lights
Using
energy saving lights like Compact Fluorescent Lamps (CFL bulbs) will consume
60% less energy than incandescent bulbs, but give the same illumination,
sometimes more illumination.
Though
CFL...
