Live with Money

Mr. Sunil, an employee, takes a housing loan of Rs 10Lakhs for a period of 30 years from ABC Bank, at an Interest rate of 8.50% pa., he is is liable to make the payment of EMI of Rs 7689/- for a period of 30 years. He has availed the loan in 2014 and is paying regularly since. Then the CoVID impacts his salary and he is affected. The RBI announces CoVID package and the bank also extend the same to him. He is in dilemma whether to accept the moratorium or not. The scenario is   Sunil Paid EMI regularly His EMI is Rs 7689/- He has 24 years remaining for the completion of loan period. Here, Mr. Sunil has paid EMI of Rs 7689/- for the period of 6 years and his current principal as per amortization chart is 9.56Lakhs. His monthly interest on the loan is Rs 6750/- approx(for easy calculation purpose only)and he will get a benefit of Rs 20000/- as interest postponement (not waiver). He can save Rs 20000/- for the timebeing and he decides to repay the same in insta...

Many public sector Banks has declared loss in their Balance sheet. They set aside a part of their profit as NPA provision which has affected the performance and net profit for the current FY. Mind you it's provision and NOT ACTUAL Loss. It is an accounting adjustment and not a real loss. Hence, there  is no outflow of funds from the Books. The fact is that due to this provisions bank is forced to set aside these funds as cushion funds with RBI, and may not be able to put it into trade for sometime, as in case the account actually becomes a loss asset, the same will be used to meet the loss. But if the account become standard or getting some recovery, the funds so parked with RBI will be reversed (in part or full, depend on recovery)and will soon come into system and will directly reckon as profit. It will straight away go to the Bottom-line. Hence there is not panic situation as it is spread. In otherwords, the provisions are deferred profits. Once the amount is releases from it...

KVIC /KVIB /DIC have not engaged any private Party/Agency/ Middlemen/ Franchise etc for promoting or sanctioning of PMEGP Projects or any financial assistance under PMEGP Programme and any potential entrepreneurs / beneficiaries dealing with such agency shall be doing it at their risk and consequences. PMEGP Loans What is PMEGP:  Prime Ministers Employment Guarantee Programme (PMEGP) is rolled out in the year 2008 under the name PMRY, REGP etc. Now the scheme is managed by MSME Ministry. The scheme is implemented by KVIC (Khadi & Village Industries Commission) and in state level is managed by respective statelevel KVIC Directorates. It is a subsidised employment programme. Why That Scheme The Objective of the scheme is to generate employment in the rural and urban areas by setting up new self employment ventures/projects/Micro Enterprises.. How it Works The programmed is a partnership of three parties; viz Entrepreuner, PMEGP & Banks. Entreprenu...

The ubiquitous brands are not seen anymore, after a short stint of operation and they are either merged or upgraded to a new brand. Their merger is celebrated by marketing and advertisement blitzkrieg so that the people will get an impression that the “old” brand is no more relevant and a “New” brand is came into existence, which is by far better and superior than its predecessors, though the human resource and the stock of goods are same. The concept was an extension of the IT sector, where versions has importance where each product is separately identified with extended tails such as 2.1,2.2 etc. Each product is  superior to the previous version on a minor front only. However, the consumer believe that the latest one is the best and superior to all and the demand for the previous versions will reduce drastically and the vendors are forced to bundle the products with latest versions. The trend is evident in the recent developments in the consumer business, especially a...

PM Kisan SAMPADA Yojana is a comprehensive package which aims to create modern infrastructure with efficient supply chain management. It will provide better process to farmers  along with boost to the growth of food processing sector. The following schemes are being implemented under PM Kisan SAMPADA Yojana : ·          Mega Food Parks ·          Integrated Cold Chain and Value Addition Infrastructure ·          Creation / Expansion of Food Processing & Preservation Capacities ·          Infrastructure for Agro-processing Clusters ·          Creation of Backward and Forward Linkages ·          Food Safety and Quality Assurance Infrastructure ·          Human Resources and Institutions ...

As on November 8, the day demonetisation was announced, there were 1,716.50 crore pieces of Rs 500 and 685.80 Crore Rs 1,000 notes in circulation, which are no more legal tender. The total value of these notes is 15.44Lakh Crore [1] When a currency is devalued, its demand fades and people cease to use such currency, except for numismatic purposes. On the contrary, after demonitization, there is a demand for devalued currency notes in India, even after the expiry of period for exchange with new notes. We still read news about confiscation of devalued notes. It is reported by media that the RBI and Police doesn’t have a clue about this [2] . May be Police does not have a clue, but definitely RBI has. RBI is still counting on notes. I don’t think that the counting will be over in my lifetime. I was wondering why the counting was not over, despite earnest effort of all bankers across India.  To understand this, we need to understand the note distribution process and chan...

Pradhan Manthri Mudra Yojana(PMMY) popularly known as Mudra Loan is the most popular among financial schemes recently introduced by the government India government has introduced various schemes to boost economy via business. CGTMSE scheme was the most popular among them. Eventhough, the scheme became popular, the objective of uplift of economy was not served, as the marketing of scheme was not that successful as that of Mudra scheme. The government was successful in creating awareness among public about MUDRA scheme, so that the people started asking about the scheme to bankers. Many of bankers are scared and sceptical about the scheme ( Moreover, they are scared about the risks of loan turns bad; as many of the loan seekers are just for free money, than genuine requirement). The bankers feel that the inherent risk and the accountability factor plays a huge role in decision making. Eligible segments for Mudra Micro & Small manufacturing units, service sector units, s...