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 order)
# A Cheque must be drawn on specified
bankers only. A cheque contains
the name of the bank and place of the
branch.
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 of starting a healthy family life. If you quit at 40 it
is not too late to benefit from your life insurance premiums.
Every time you think about
alcohol, cigarette or drug, just say “NO” to it, & take the money you saved
and keep it in a separate box.
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 & Commercial
banks act as the saving banks.
2. Commercial
Banks
A commercial
bank is a financial institution organized as a joint stock company that
operates for earning profit. Commercial banks are established with an objective
to help businesses to develop economy. These banks collect money from general
public as deposits and give loans to different sectors of economy that are in
need of money.
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 deposit etc., In order
to enable people to confirm that it is a bank and is dealing in money, for easy
identification, a bank should add the word "bank" as its last name.
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 goes to the
Lombards of Italy who had migrated to other European countries and England. The
bankers of Lombardy developed the money lending business in England. The Bank
of England was established in 1694. The development of joint stock commercial
banking started functioning in 1833. The modern banking system actually
developed only in the nineteenth century.
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 associated with the business of money changing/lending.
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 & Banking
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 share, then it implies that someone was ready to sell that share on the other end and vice versa. The demand
for stock can change due to the mindset of the investors driven by following
factors: Economic fundamentals, Income
/ Wealth / Taste of consumers, Fear of defense failure, or Company earnings
etc.,.
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 a like
nature in or of any incorporated company or other body corporate.
ii)
Government
Securities and
iii)
Rights
or interest in securities
The Securities Contracts (Regulations) Act, 1956 defines stock exchange “as an association, organization or body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling the business of buying, selling and dealing in securities”.
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 follows,
1. Insurable Interest
“Ownership
should be there to evaluate financial (insurable) interest”
Insurable
Interest is must for validating the contract of insurance. Insurable interest
must be a financial / pecuniary interest. A person is said to have insurable
interest in a property when he enjoys benefit from its existence and suffers by
its destruction or loss.
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 can be
segregated as & known by
1)
Common Insurance Benefits; 2) Life Insurance Benefits and 3) General Insurance
Benefits
Common Insurance Benefits
#
Provides
the much required UNAVOIDABLE RISK COVER for us;
#
Providing
replacement income for your dependents on any unforeseen events
#
You
can’t find any parallel substitute in the financial world for the risk cover
that is provided by insurance
#
Money
back plans provide risk cover & liquidity as it returns a portion of the
sum assured at regular intervals to us.
#
Unit
linked plans combines market linked high risk returns along with risk cover
#
To
protect ourselves and family from financial risk
Life Insurance Benefits
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.
#
The
insurance sector in India dates back to 1818 when first insurance company, The
Oriental Life Insurance Company, was established, at Calcutta.
#
LIC
of India formed in 1956 after nationalization of life insurance Business of 245
private (Indian and Foreign) insurance companies
#
The
Life Insurance Corporation of India (LIC) came into existence by an Act of
Parliament, viz. LIC act, 1956, with a capital contribution of Rs.5 Crores from
the Government of India
#
The
General Insurance Business (Non-Life) in India started with the establishment
of Triton Insurance Company Limited in 1850 at Calcutta by the British.
#
General
insurance business of 107 insurance companies was amalgamated and nationalized
in 1972 & four public sector General Insurance Companies were formed
namely, the National Insurance Company Ltd., the New India Assurance Company
Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd.
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 against possible financial loss arising on the happening of an
unexpected circumstance; it gives you peace of mind;
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 not an investment as it will have depreciated value in future, unless it's a
vintage car and is bought in the anticipation of selling at a higher price
because of being an antique.
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 that it is not necessary
to look for a ‘muhurat period’ on this Akshaya Tritiya day. The Word Akshaya
means "Eternal (Ever Lasting)" i.e., "that which never
diminishes" and Tritiya means "Third" in both Sanskrit and
Hindi. This day is ideal for beginning new ventures or buying precious metals
as it is believed that all investments on this day appreciates.
 |
| Akshaya Trithiya and Gold 2012 |
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 above but the overall budget
analysis will shed you some light on whether it is a savings or tax burden for
individuals;
Positive
/ Benefits of Budget 2012-13 Analysis for Individuals
First let's look
at the blessings / benefits (positive) of Budget 2012-13, as below will be
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 by
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.
#
Fiscal
deficits targeted at 5.1 percent of GDP in 2012-13 as against 5.9 percent of
GDP in 2011-12;
#
Central
Government debt at 45.5 per cent of GDP.
#
Total
Expenditure in 2012-13 budgeted at
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 product like Air-conditioners (ACs) , Refrigerators, Washing
machine and Microwave ovens
#
Gold,
Platinum, Diamond, Emerald and Ruby Jewellery
#
Large
Luxury cars
#
Sport
Utility Vehicles ( SUVs )
#
Air
travel
#
Cigarettes
#
Hand-rolled
Bidis (Beedies)
