Banking Ombudsman Scheme

The Banking Ombudsman Scheme enables an expeditious and inexpensive forum to bank customers for resolution of complaints relating to certain services rendered by banks. The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services. As on date, fifteen Banking Ombudsmen have been appointed with their offices located mostly in state capitals. All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the Scheme. 

One can file a complaint before the Banking Ombudsman if the reply is not received from the bank within a period of one month after the bank concerned has received one s representation, or the bank rejects the complaint, or if the complainant is not satisfied with the reply given by the bank.

One can file a complaint with the Banking Ombudsman simply by writing on a plain paper. One can also file it online or by sending an email to the Banking Ombudsman. One may lodge his/ her complaint at the office of the Banking Ombudsman under whose jurisdiction, the bank branch complained against is situated.
For complaints relating to credit cards and other types of services with centralized operations, complaints may be filed before the Banking Ombudsman within whose territorial jurisdiction the billing address of the customer is located.

The Banking Ombudsman does not charge any fee for filing and resolving customers’ complaints. The amount, if any, to be paid by the bank to the complainant by way of compensation for any loss suffered by the complainant is limited to the amount arising directly out of the act or omission of the bank or Rs 10 lakhs, whichever is lower.


VISIT: http://rbi.org.in/commonman/English/Scripts/AgainstBank.aspx

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Deposit Insurance and Credit Guarantee Corporation (DICGC)

All commercial banks including branches of foreign banks functioning in India, local area banks, regional rural banks all State, Central and Primary cooperative banks are insured by the DICGC. At present all co-operative banks other than those from the States of Meghalaya, and the Union Territories of Chandigarh, Lakshadweep and Dadra and Nagar Haveli are covered under the deposit insurance system of DICGC.


In the event of a bank failure, DICGC protects bank deposits that are payable in India.
The DICGC insures all deposits such as savings, fixed, current, recurring, etc. except the following types of deposits.
(i)  Deposits of foreign Governments;
(ii) Deposits of Central/State Governments;
(iii)Inter-bank deposits;
(iv) Deposits of the State Land Development Banks with the State co-operative bank;
(v) Any amount due on account of any deposit received outside India
(vi) Any amount, which has been specifically exempted by the corporation with the previous approval of Reserve Bank of India.

Each depositor in a bank is insured upto a maximum of Rs.1,00,000 (Rupees One Lakh) for both principal and interest amount held by him in the same capacity and same right as on the date of liquidation/cancellation of bank's licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.

The deposits kept in different branches of a bank are aggregated for the purpose of insurance cover and a maximum amount upto Rupees one lakh is paid. If you have deposits with more than one bank, deposit insurance coverage limit is applied separately to the deposits in each bank.

For example, if an individual had an account with a principal amount of Rs.95,000 plus accrued interest of Rs.4,000, the total amount insured by the DICGC would be Rs.99,000. If, however, the principal amount in that account was Rs. One lakh, the accrued interest would not be insured, not because it was interest but because that was the amount over the insurance limit. 

VISIT: http://www.dicgc.org.in/English/index.html

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Do's and Dont's

Don’t:

• Rub the back of your head or neck. This shows that you are not interested.
•  Sit with your arms folded across your chest. You will appear unfriendly and disengaged.
• Cross your legs and idly shake one over the other. It’s distracting and shows how uncomfortable you are.
• Lean your body towards the door. You will appear ready to make a mad dash for the door.
• Slouch back in your seat. This will make you appear disinterested and unprepared.
• Stare back blankly. This is a look people naturally adapt when they are trying to distance themselves.
• Go overboard with gestures, as they might be distracting.

Do:

• Sit up straight, and lean slightly forward in your chair. In addition to projecting interest and engagement in the interaction, aligning your body’s position to that of the interviewer’s shows admiration and agreement.
• Show your enthusiasm by keeping an interested expression. Nod and make positive gestures in moderation to avoid looking like a bobble head.
• Establish a comfortable amount of personal space between you and the interviewer. Invading personal space could make the interviewer feel uncomfortable and take the focus away from your conversation.
• Limit your application of colognes and perfumes. Invading aromas can arouse allergies. Being the candidate that gave the interviewer a headache isn’t going to work in your favor.
• If you have more than one person interviewing you at once, make sure you briefly address both people with your gaze and return your attention to the person who has asked you a question.
• Interruptions can happen. If they do, refrain from staring at your interviewer(s) while they address their immediate business, and motion your willingness to leave if they need privacy.

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Corporate India Seeks Speedy Implementation of GST- WHAT IS GST(Goods and Services Tax)?

Currently, a manufacturer needs to pay tax when a finished product moves out from a factory, and it is again taxed at the retail outlet when sold. But Goods and Services Tax -- GST -- is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a national level.

India is planning to implement a dual GST system. Under dual GST, a Central Goods and Services Tax (CGST) and a State Goods and Services Tax (SGST) will be levied on the taxable value of a transaction. All goods and services, barring a few exceptions, will be brought into the GST base. There will be no distinction between goods and services.

It will not be an additional tax.

CGST will include:

1. Central excise duty (Cenvat).
2. Service tax.
3. Additional duties of customs at the central level.

SGST will include:

1. Value-added tax.
2. Central sales tax.
3. Entertainment tax.
4. Luxury tax.
5. Octroi.
6. Lottery taxes.
7. Electricity duty.
8. State surcharges related to supply of goods and services.
9. Purchase tax at the State level.

GST will help in widening the coverage of tax base, improve tax compliance, remove existing unhealthy competition among states and redistribute the burden of taxation equitably among manufacturing and services. Overall, it will result in increasing revenue at the center.

To implement GST a consensus must be reached with states. Earlier, state governments were not keen on GST, as they think it could lead to revenue losses. But recent developments indicate that most states have agreed to a compensation formula that will compensate them for their losses. The sticking points has been the inclusion of petroleum and liquor in GST which the states were opposed to.

Alcohol, tobacco, petroleum products are likely to be out of the GST regime.

The implementation of GST may happen from Fiscal Year 2014-15.

How will it benefit the Centre and the States?

It is estimated that India will gain $15 billion a year by implementing the Goods and Services Tax as it would promote exports, raise employment and boost growth. It will divide the tax burden equitably between manufacturing and services.

What are the benefits of GST for individuals and companies?

In the GST system, both Central and State taxes will be collected at the point of sale. Both components (the Central and State GST) will be charged on the manufacturing cost. It will reduces the number of instances where taxes need to be paid thus reducing the possibility of manipulation on the part of tax authorities and is hence assumed to be a much transparent mode of administering taxes. This will benefit individuals as prices are likely to come down. Lower prices will lead to more consumption, thereby helping companies.



Visit: http://www.thehindu.com/business/Industry/corporate-india-seeks-speedy-implementation-of-gst/article6104858.ece

First Discussion Paper On Goods and Services Tax In India: http://finmin.nic.in/gst/Empowered%20Committee%20of%20SFM%20%20First%20Discussion%20paper.pdf

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Sweat Equity

1. Sweat Equity Shares are equity shares issued by a company to its employees or directors at a discount, or as a consideration for providing know-how or a similar value to the company. This is often given as an additional motivation for continuing hard work for the firm's success.

2. Sweat Equity can also be considered as the increased worth of a business(over and above the money invested) created by the unpaid mental and/or physical hard work of the founder/owner.

3. It can also be considered as the increased value of a property (over and above its purchase price) created by the hard work of the owner/occupant in enhancing its amenities and/or looks.

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DEMAT ACCOUNT

DEMAT means Dematerialized Account. Nowadays in India if one needs to participate in Stock Market for trading shares it is compulsory to open a demat account. As the name suggests it is a  electronic form which contains the details of the person concerned including his share trading transactions and is linked to his bank account. In the past share trading was carried out in paper document which had the risk of loosing the investment if the document went missing. But now with the arrival of Demat the transactions are electronically logged into his account and his investment remains safe.

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Balance of Trade(BoT) v/s Balance of Payment(BoP)

Basis of Difference	Balance of Trade(BoT)	Balance of Payment(BoP)
1. Definition	The difference between the value of goods and services exported out of a country and the value of goods and services imported into the country.	Flow of cash between domestic country and all other foreign countries. It includes not only import and export of goods and services but also includes financial capital transfers.
2. How is it calculated?	BoT= Net earnings on exports – Net payment made for imports.	BoP= BoT + Net earnings on foreign investment + Cash Transfers + Capital Account. OR BoP= Current Account + Capital Account
3. When is it considered as favorable or unfavorable?	·         If export is more than import, at that time, BoT will be favorable. ·         If import is more than export, at that time, BoT will be unfavorable.	·         BoP will be favorable, if the country has surplus in current account for paying all past loans in the capital account. ·         BoP will be unfavorable if the country has current account deficit and it took more loan from foreigners.
4. Solution of being unfavorable?	To Buy goods from domestic market as far as possible.	To stop or reduce taking loans from foreign countries.

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