September 30, 2022

Steve Campbell

How Can a Disabled Veteran Start His Own Business?

Nov 23, 2021

After serving in the army, you might be looking forward to your new life post-retirement. In recent years, many veterans have gone on to become highly successful in their chosen careers. So, why not go for it?

If you are a disabled veteran, starting a business can be a lucrative source of income. Especially with business loan interest rates touching a record low these days.

So, let us explore how you can start your own business and enjoy your post-retirement years.

Make a business plan

First, select a business idea. You can pick something you are already skilled at, such as providing mentorship or public speaking. Or, you can consider online businesses like digital marketing and virtual assistant services.

Next, make a business plan. Include your business objectives, revenue model, short-term goals, and other salient points.

Once you have all this on paper, you can move on to the next step, which is arranging funds.

Finance your business

There are numerous ways to finance your business, such as:

  • Government schemes for veterans: You can avail the benefits of the self-employment schemes offered by the Department of Ex-Servicemen Welfare, the Government of India. These schemes come under SEMFEX and can be obtained via the Zila Sainik Board or the Rajya Sainik Board.
  • National equity fund scheme: The National Equity Fund Scheme (NEFS) is covered by the Small Industries Development Bank of India (SIDBI). It gives equity funding to small businesses, up to Rs. 50 lakhs.
  • Crowdfunding and investment groups that support small businesses.

Find a location

Figure out where you will set up your office and get a permit. Make sure the location you choose is accessible for you. If you plan to rent an office, you will need to add your rent amount to your monthly expenditure.

If you plan to avail of a loan, use a business loan EMI calculator and estimate an affordable EMI that you can manage with rent expenses. 

Legalisation and tax registration

Working companies must register with the Ministry of Corporate Affairs. Visit their official website and complete the application form to get a government license for your small business.

You will also have to apply for a PAN and a TIN (Taxpayers Identification Number) at your local PAN and TIN service centre.

Take it online

Finally, to make the most of your business, start a website or build social media pages. Having an online presence will do wonders for promoting your business. If you want to hire a digital marketing team and expand your business, you can also obtain a collateral-free business loan.

To sum up

When it comes to playing life’s second innings, sky’s the limit for an army man!

So, start your small business today. Choose an idea that appeals to you, then work on your business plan. No matter how you finance your business, be wise and use a business loan calculator to plan your loan repayments. With proper planning and execution, your business will be up and running in no time!

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6 Important Steps to be taken by Credit Card Fraud Victim

Nov 15, 2021

You may have heard of credit card theft or fraud. What is credit card fraud? It involves using your credit card or its details illegally without your knowledge. The result can be fraudulent card-based transactions or identity theft to open unauthorised accounts in your name.

Once the fraud is caught, the card issuer won’t reduce your credit card limit. Else you might have to compromise without your fault.

Here are the 6 crucial steps to take if credit card fraud happens to you.

#1 – Contact your credit card issuer immediately

If fraudulent transactions have been made using your credit card, instant action can prevent further damage.

Here is what to do:

  • Call your credit card issuer at once.
  • Request a thorough investigation of the unauthorised transactions on your card.

#2 – Get a new credit card

If the card issuer investigates and verifies that fraud has happened, you’ll be eligible to apply for a new credit card. It will come with a new CVV code and card number. Ensure that the compromised card is blocked at once to prevent further misuse.

#3 – Check your other credit card accounts

You have caught fraudulent charges on one of your credit cards. What if some of your other cards also contain such fraud? You don’t know how the fraudster got the card information.

So, take precaution as follows:

  • Check the accounts of all the other credit cards for any signs that they too are compromised.
  • If other accounts also contain suspicious charges, follow the same course of actions as with the previous card.

#4 – Notify the credit bureaus

If you find one or more credit card accounts being used without your permission, do as follows:

  • Alert the credit bureaus at once about the card fraud(s).
  • Request them for an immediate credit freeze. Then the criminal cannot cause further damage like opening a new credit card account with your details.

#5 – Call the police

On detecting credit card fraud, you must file a police report right away for the following reasons:

  • Suppose you see a pattern of fraudulent charges over some days on your credit card statement. Then the police will open an investigation using your records.
  • If your wallet was stolen, the thief might have misused your identification cards also. As a result, unauthorised credit and utility accounts may be opened in your name. To handle such identity theft, seek the help of the police instantly.

#6 – Check all your online shopping accounts

Today most online shopping websites allow you to save your credit card information for future shopping.

So, once you detect credit card fraud, take these steps:

  • Ensure that your online shopping accounts aren’t compromised.
  • If the accounts aren’t secure, remove the details of the compromised cards instantly.
  • Change the account passwords also.

Never share your card’s CVV code or transaction OTP with anyone. Check your credit card statement regularly for any unauthorised card-related transactions. Once you detect fraud, take the above steps to prevent further damage and reinforce safety. Do your best to smoothly use your card!

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Fake company frauds and other scamming actors on the internet – who are they?

Nov 6, 2021

Many these days receive fake messages from fake company job offers, service or investment offers. You might be surprised by what kind of sophisticated scammers are out there. Learn how to spot them.

Fake investment opportunity

This fake offer usually comes via phishing emails from people you don’t know. It may encompass various investment types. You need to be particularly cautious with the new Initial Coin Offerings, new medical treatment products and equipment and other research projects.

Usually, they promise you to get rich overnight once their product, service, and new token gets enough publicity and reaches the market. The things with an investment are more complicated than that.

However, even if they don’t get you YES they will be eager to get as much as possible info from you and steal your precious data. Data is the gold of our century, so make sure you are not divulging anything unnecessary to them, such as bank account numbers, your family members birthdays, passport numbers and many more.

What if you are a victim of fake investment?

The first reflex is to call the police and financial authorities in your country. Maybe you have lost some amounts, but your duty is also to protect other possible victims. Screenshot everything you have from the communication with the fraudsters and determine all contact with them straight away.

Job scams: who are they?

People are receiving a message on their landline from a robot proposing a job offer supposedly from head hunters and HR with the description “interesting and enticing” and inviting them to type in their username and personal code to find out more. It is important not to answer them.

Cybercriminals are at work on the internet. They pose as real recruiters to applicants by posting fake job offers or contacting them directly with a fake job offer.

These false proposals and job offers most often take all the appearances of reality and seek to attract candidates with particularly attractive remuneration and/or flexible working hours.

Their goal is to extract money from applicants or steal sensitive personal information (bank details, social security numbers, etc.) for fraudulent use.

How to protect yourself?

US job portals publish fact sheets that give you practical prevention tips to protect you from job scams.

You are therefore reminded never to send personal information (bank identity statement, social security number, copy of identity documents, etc.) to a recruiter until you have met them.

You should also never pay money to a potential recruiter or accept money from a future employer until you have signed an employment contract.

If you receive a job offer that you think is dishonest, don’t follow through.

What to do if you are a victim of a job scam??

If you believe you have been the victim of an attempted job scam, immediately terminate all contact with the so-called recruiter.

If you have transmitted your banking information, notify your bank immediately and verify the movements on your bank account.

In the files, legal information is also given to you to define and put words on the damage suffered and to file a complaint.

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Is Term Insurance for all Age Groups?

Oct 28, 2021

The thought of being no more could be scary, but what’s even scarier is leaving your loved ones scrambling for money in your absence. But thanks to the abundance of information available online, most of us understand the importance of term life insurance, which could prevent such a situation.

Even then, many are confused about what is the best time to buy a term life insurance. Let’s look at how they are important for each age group.

Term insurance for people in their 20s

20s is when most people start their career. There could a financial freedom that you are experiencing for the first time and your responsibilities could be very little comparatively. Unfortunately, this makes a lot of people not consider buying a term life insurance in their 20s.

But in fact, 20s are considered by many to the best time to buy a term insurance. As far insurance companies are concerned, you are in your prime health and the risk is comparatively low. This makes the premiums lower and policies more flexible.

If you use an online term insurance plan calculator, you will see that a 25-year-old female can be insured for Rs. 1 crore till the age of 75 for a price of Rs.575 a month. The price is Rs.676 a month for a male.

Term insurance for people in their 30s

30s is the time where you get the second-best life insurance premium prices. In general, people are still healthy at their 30s and risk is comparatively still lower.

If you didn’t get insured in your 20s, 30s is a time that you should consider.

30s is when you could have more dependents. Your parents might be retired, and you might need to take care of them. You might have a family and children and they might also depend on your income.

Moreover, 30s is the time when a lot of people take home loans and you wouldn’t want to leave your loved ones stranded with that much liability.

These all make it very important to get insured at your 30s.

If you use an online term insurance plan calculator, you will see that if you are a 35-year-old female, a coverage of Rs. 1 crore till the age of 75 will cost Rs.1041 per month or more. For a 35-year-old male, the same will cost more than Rs.1081 per month.

Term insurance for people in their 40s

40s is when life insurance becomes an absolute necessity. You might have debts and liabilities and you might need to protect your children from a risk of you leaving this liability on them.

If you have children at this stage, you will need to make sure they get proper education and an easier life financially, even if, unfortunately, you are not there.

It is a stage when term insurance could get more and more expensive as well. So, if you are in your 40s and still don’t have a term insurance, it is highly advisable you get one soon enough.

If you use an online term insurance plan calculator, it will tell you that if you are a 45-year-old female, it could cost you around Rs. 1715 per month or more to get an insurance coverage of Rs. 1 crore till the age of 75. If you are a male, the cost would be Rs.1846 or more.

Term insurance for people in their 50s and above

If you are past your 50s, term insurance is only going to get costlier and costlier. At this stage, you are going to retire, and your next generation could be slowly becoming independent. You wouldn’t want to leave them stranded if something happens to you.

Term insurance age limit is 65 and if you are at you 50s and still don’t have a term insurance, it’s suggested that you get one as soon as possible.

What is the best time to buy term insurance?

If you don’t have a term life insurance yet, the best time to buy one is now, doesn’t matter your age. Term insurance age limit is now 65 and you don’t want to wait till that, especially when buying one is easy and affordable. Go to an insurance service provider and get insured today!

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What is free-float market capitalization?

Oct 19, 2021

The stock market today has a variety of investment avenues that suit the varied interests of different types of investors. Before diving head-first in stock market investments, it is imperative to understand the terminologies associated with an investment that could help you make better decisions. One such term that could guide your future investment decisions is free-float methodology in market capitalization.

Market capitalization stands for measuring the company’s outstanding shares multiplied by the price of each share. For instance, a company with 20,000 outstanding shares at Rs. 20 each will have a market capitalization of Rs. 4,00,000. In this standard calculation of market capitalization, the total number of shares, including private and public, is considered to arrive at a value. However, in free float, also known as float-adjusted capitalization, only publicly held shares are considered. Shares owned by promoters, trust and government bodies are excluded, which also means that actual market capitalization would always be higher than the free-float market capitalization value.

Free-float market capitalization is inversely proportional to market volatility. Since there are a limited number of shares, which can be bought or sold, fewer trades move the prices significantly. This is the main reason why investors prefer dealing with shares having higher free float, which, in turn, allows them to buy and sell shares without affecting the index’s overall prices.

Let’s understand through this example – ABC Ltd has 80,000 outstanding shares priced at Rs. 20 per share. Out of this, 30,000 shares are held publicly while the rest are privately owned.

  • The market capitalization of ABC Ltd:

Total outstanding shares × price of each share

80,000 × Rs. 20 = Rs. 16,00,000

  • Free-float market capitalization for ABC Ltd:

Publicly owned outstanding shares × price of each share

30,000 x Rs. 20 = Rs. 6,00,000

 Coming to the advantages of free-float methodology over total market capitalization:

  • When it comes to judging the true picture of a security, experts tend to rely on the free-float method as it considers the shares that are available for trading in the market, which represents an accurate reflection of market movements.
  • Many times, companies achieve large caps, but most of their shares remain privately locked, failing to present a true picture of their shareholding pattern. Indices in the market, which are performance trackers, are influenced by either price or market capitalization. With free float, it is possible to do broad-based indexing.
  • This technique could help investors in deciding the stocks to buy today by distinguishing companies whose shares are available in the market for trading.
  • Free-float market capitalization can also help in determining the float factor. For example, a company has 55,000 outstanding shares, out of which 16,000 are open for trading and 39,000 are closed. Each share is priced at Rs. 43. Therefore, the proportion of shares available for trading is 16,000/55,000 = 0.29. This is the float factor, which is assigned to each share price.

Investing in the stock market could be easy if you have the right tools and guidance to navigate through it. If you do not have the bandwidth to undertake thorough research and analysis, seeking expert could be a wise choice. A financial expert can curate bespoke stock investment plans based on your appetite for risk, investment horizon, and financial goals.

Reach out to one today to make smart investment decisions!

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Things You Must Consider Before Buying Guaranteed Insurance Plans

Oct 12, 2021

We begin building certain goals and dreams for ourselves and our loved ones as we go through life. However, achieving our goals can be difficult at times, as they may require a decent amount of financial support. Therefore, it is important to take the appropriate steps towards achieving our financial goals.

Opting for a guaranteed return insurance plan will be the most optimal way to get financial assistance out of the different products available.

What is a Guaranteed Return Insurance Plan?

Life insurance plans with guaranteed returns are a type of insurance policy that offers the dual benefit of insurance coverage along with guaranteed returns. With the guaranteed return plan, you can simultaneously protect your loved ones and build for your financial goals.

In this plan, you will have to pay the insurer’s premium to maintain the policy active. The premium is split into two parts. The first part is kept for insurance coverage, and the second part is kept for investments.

If you pass away before the plan reaches maturity, your loved ones will get insurance coverage. However, if the plan reaches maturity before you pass away, you will get the guaranteed returns through the plan. Different insurers offer different payout options.

Factors You Should Consider Before Buying Guaranteed Insurance Plans:

  1. The suitability of the plan:

If you’re planning to purchase a guaranteed return insurance plan, you must ensure the purchase will be suitable for you. The guaranteed return plan will help you achieve your financial goals and protect your loved ones at the same time. Therefore, if you’re looking for ways to achieve your financial goals like your child’s education, your vacation abroad or getting a new house, the guaranteed plan will be an optimal solution.

  1. Different variants of guaranteed plans:

If you’ve decided to purchase a guaranteed return insurance plan, you can look through the variants available for you. All the variants are designed to help individuals meet their unique investment and insurance objectives. When you have a decent idea about the different variants of the guaranteed plans available for you, you will be able to make an informed decision.

  1. Features of the guaranteed plan:

Your insurance plan must match your current income, risk appetite, current life stage, etc. In addition, the plan you choose must offer you the flexibility to pay the premiums as per your requirement. Therefore, you must look through the different plans available to ensure you opt for a plan that matches your suitability. Insurers also offer insurance calculators to help customers understand life insurance quotes. It can help you compare the different plans available for you. While conducting the research may be hectic, it will be beneficial once you find the most suitable plan.

  1. Your insurer’s reputation:

The insurer you choose for your insurance plan must be able to help you at a time you need the insurance coverage. Therefore, it is important to look through your insurer’s reputation online before purchasing the plan. Many insurers like Tata AIA life insurance provide information about their plans, coverage, claim process and claim settlement ratio online to help customers. This way, you can learn about whether the insurance claim you file will be settled or not.

  1. Correct circumstance for the guaranteed plan:

If you’re planning to purchase guaranteed insurance plans in India, it would be optimal if you began the investment a bit early or at a young age. Purchasing the policy at a young age gives your investment a longer horizon to be held in the market, which will help you build your financial corpus through the investment.

Conclusion

Thus, opting for a guaranteed return insurance plan can be quite helpful to achieve your financial goals and protect your loved ones simultaneously. However, if you’re planning to purchase the guaranteed return plan, you must consider certain factors before making the purchase. Following these factors will help you purchase the most optimal plan for yourself.

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Factors to Consider Before Opting for a Home Loan Balance Transfer

Sep 30, 2021

A home loan balance transfer is an excellent facility offered by the financial organisation that eases the repayment burden for home loan borrowers. Read on to know more about it.

A home loan balance transfer is the process of moving your home loan from the existing lender to another one and repaying the outstanding amount at a lower interest rate.

If you have taken a home loan, and your lender is charging you a high interest rate, you can avert paying a high EMI by choosing the home loan balance transfer option. However, before you go for the balance transfer, you must consider a few essential things.

  • Negotiate the interest rate

Before exercising the option to do balance transfer, it is better to negotiate with the existing lender to revise your interest rate. Suppose you have a loyal association and have a long-term relationship with them and have paid all the EMIs on time. In that case, the lender may consider your request based on your credit history and past repayment track records. This way, you can lower your EMI burden without paying any charges associated with the balance transfer.

  • Check your credit rating

Your credit score plays a vital role in determining if you are eligible for the balance transfer or not. If you have paid all your EMI previously on time, your credit score must be high. However, if you have been inconsistent with your dues, it would reflect poorly on your credit score.

So, before you opt for the balance transfer, ensure to pay off your previous dues so that your credit score is high and you can complete the transfer process without any hassles.

  • Be wary of the remaining loan tenure

Opting for a home loan balance transfer during the latter half of the tenure may not be worth it. If you have only a few years to pay off the existing loan, you may have already paid off a significant portion of the interest payable during the initial years. In this case, refinancing the home loan may not be a wise decision as you may end up increasing the interest cost on your new loan. So, it is better to use the home loan balance transfer calculator to compute the interest payable on the new loan before taking the final borrowing decision.

  • Term and conditions of the new loan

Lastly, you must be aware of the term and conditions of the new loan. Make sure that you read the fine print carefully before you sign the home loan balance transfer papers. While the idea of repaying the balance amount at lower interest may seem enticing, you must fully understand the terms and conditions. You must refinance the home loan only if the terms and conditions are beneficial to you.

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Home loan VS home construction loan

Sep 24, 2021

The home loans are the ones that are taken for the purchase of the flat or the row house from the real estate developer. While as the home construction loans are the loans that are taken by the individual for the construction of their homes on their individual plot. The interest rates charged for both the purpose are same and thus are considered as similar kind of loans. The home loans can be availed at an interest rate as low as 6.50% per annum. The home loans can be availed by the borrower from any of the banks irrespective of he/she has a bank account at any of the banks. Ideally, the bank which has got a good reputation in the markets and the ones that charge the lowest interest rates and processing fees should be taken into consideration while applying for the loans. The individual borrower should have a good credit score while applying for the loans. The bank expects a minimum score of 700 points for the application of the loan to get approved. The home loans interest rates are reducing on a gradual basis as and how the repo rate of the RBI is getting reduced.

The home construction loans can be availed 80% of the project cost including the interiors of the house. The bank requires proper income proof for the disbursement of loans. An independent bungalow can be constructed on the plot by availing of loans. The project cost is estimated by the bank officials and accordingly, only the loans can be approved for an individual. If an excess of the amount is demanded by the applicant beyond the basic project cost the bank may reject the loans of the borrower. The home loans when purchased as a ready possession flat or a ready possession row house then in that case the total cost including the land cost and the construction cost is taken into consideration and accordingly the loan amount is approved. The home construction loans are approved only if the applicant has a plot of their own with clear titles then in that case home construction loans are approved. The home construction cost is estimated according to prevailing rates going on of the construction contractor and according to the FSI approved by the town planning authority. The housing construction loans are approved on similar conditions as the ones for the home loans.

Benefits of home loan:

  • The borrower can claim tax benefits under income tax 80C on the principal amount and section 24 under the interest repayment. The borrower can continue to avail of tax benefits as long as the tenure extends for the loans.
  • Availing loans can help individuals keep their existing savings locked into financial instruments and repay the loans from the running income.
  • The loans help the borrower repay loans for a longer span of time as long as 30 years, depending upon the age of the applicant.
  • For the first time, home buyers can avail subsidy of Rs.2.67 lakh from the PMAY scheme being launched by the government.

Difference between home loans and home construction loans:

  • Though the interest rates charged by the bank for home loans and home construction loans are the same, the home construction loans are charged a bit lower charges than the home loans.
  • The total loan amount in the case of home loans is calculated on the construction cost and also the cost of the land. While as the home construction loans the land cost is excluded and only the home construction cost is included for the approval of loans.
  • Home construction loans can be availed only if the individual has his own plot. While the home loans can be availed even in case of an individual not having their own plot.
  • The home loans are approved based on the total cost irrespective of the transaction value. While as the home construction loans the cost of the construction
  • The home loans can be disbursed by the bank at one go. While the home construction loans can be disbursed only in part installments as and how the progress is there of the construction of the house.
  • The home loans can be approved for a longer tenure while the home construction loans can be approved for a shorter tenure.
  • The documentation required for the home loans is different from that of the home construction loans.
  • The limit up to which the home loans can be approved is higher depending on the locality in which the property is purchased. While in the case of home construction loans the cost of construction is similar at any location only the minor variation can persist thus the number of loans approved can be lower compared to home loans.

Availing the home loans or home construction loans totally depends upon the situation of the individual. If the individual owns a plot then home construction loans can be taken while as in case if the individual does not own the plot then case home loans can be taken. The interest rates charged & other conditions of the loans are one and the same while there could be minor differences in the interest rates and processing fees been charged by the lenders.

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How to claim Insurance Benefits under PMJJBY & PMSBY Govt Insurance Schemes?

Aug 24, 2021

For those who might already be contemplating term insurance plans, it is important to note that the Indian government already has certain setups and schemes in place, targeting the sudden demise of the insurer.

Better segregated as PMJJBY and PMSBY schemes these govt.-backed facilities allow you to insure your family against untoward mishaps and that too at highly affordable rates. In the subsequent sections, we shall talk about the best ways to approach and achieve insurance benefits, under the mentioned schemes.

More about the PMSBY Scheme

Here is a reliable government-backed insurance scheme that covers you for disability and even accidental death. Plus, any individual between 18-70 years can opt for this insurance scheme, which attracts a yearly premium of Rs. 12. When it comes to the insurance benefits, the family of the insured would get Rs. 2 Lakhs, as an immediate death or accidental-induced permanent disability benefit.

Also, in case of a partial disability, the insured gets Rs. 1 Lakhs as the PMSBY insurance benefit.

More about the PMJJBY Scheme

Getting the Pradhan Mantri Jeevan Jyoti Bima Yojana benefits is a bit more straightforward as compared to the PMSBY. While the yearly premium is still on the lower side at Rs. 300, it is more of a strict life insurance policy and not an accidental scheme, like the PMSBY. This means, even if the insured dies of a natural cause, the family will still get Rs. 2 Lakhs, as a benefit.

Also, the age limit for the same is slightly lower as compared to the PMSBY as the upper age limit is set at 50 years.

How to Enroll for the Schemes?

In case you want to reap the benefits of the mentioned term insurance schemes, offered and nurtured by the government, it is necessary to take note of certain factors.

Firstly, the premium will be directly debited from your savings account, provided your bank accommodates the same. Also, even if you have multiple savings accounts in place, these plans can only be linked with one. This means, one insurer can only procure this benefit one time.

Also, each plan automatically terminates once the maximum expiration age is attained. Not just that, the premiums you pay for the schemes are also eligible for tax benefits. Plus, the best thing about Pradhan Mantri Jeevan Jyoti Bima Yojana and even the PMSBY scheme is that neither of the policies lapses if the holder cannot pay certain premiums. The schemes can be reinstated instantly upon payment of the pending premium dues.

Final Words

You can search for the PMJJBY and PMSBY schemes by heading over to the Finserv MARKETS. However, if you want a term plan that offers a bigger sum to the beneficiary, this platform also lets you compare and contrast the existing choices.

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Can an NRI open a joint account with a resident of India?

Aug 19, 2021

Non-Resident Indians are those persons who are Indian citizens but are living abroad due to various reasons. Most NRIs have families or relatives back home who partly manage their financial affairs in India. For example, if Mr Khanna is employed in Dubai, but his wife and children are living in India, then his wife will be in a better position to manage finances on the Indian side like paying or receiving rent, withdrawing funds, operating bank accounts etc.

Therefore, the question arises, is it possible for an NRI like Mr Khanna to hold a joint account in India with an Indian resident, who in this case is his wife? Up until 2011, this was not possible.

However, now an NRI can open joint residential savings account with an Indian resident on an ‘either-or survivor’ basis, under certain conditions. A joint account with an NRI can also be an NRO account.

As far as an NRI holding an Indian bank account on his own is concerned, it is still not allowed and attracts a penalty.

Joint Residential Savings Account with an NRI

So how does a joint account with an NRI and resident Indian work? Given below are the conditions in which this is possible.

– A joint residential savings account can be opened between an NRI and an Indian resident, provided that the Indian resident is a relative. A relative, in this case, can mean parents, siblings, siblings’ spouses, children, own spouse, children’s spouses, grandparents, grandchildren and spouses of grandchildren.

– All the rules and regulations applicable to a normal savings bank account in India will be applicable to such a joint account as well.

– The bank keeps all the relevant documentation with them, including a record for the need of a joint account. A signed declaration is also taken from the NRI indicating that they will not use the funds in the account in violation of the FEMA Act and will be responsible for the repercussions in case a violation does occur.

– The NRI account holder cannot deposit any money in the form of cash, cheque, remittances or direct credit into such an account.

– The money from this joint account is not repatriable, which means it cannot be transferred outside India.

– The resident Indian will be the primary account holder of the joint account. The NRI will remain the secondary holder.

– Such a joint account can be used to make payments by the resident account holder.

– In case the resident account holder passes away, then the NRI will become the sole holder of the account, but the account will be converted into an NRO account.

Joint NRO with an NRI

An NRI can also jointly hold an NRO or Non-Resident Ordinary account with a resident in India. However, such an account can only be opened on the ‘former or survivor’ basis.

Final Word

Thus, an NRI can hold a joint account along with a resident relative if the above conditions are met. This can either be a normal residential savings account or an NRO account as well. If an NRI wishes to hold an account in India as a sole account holder, then there are other options like an NRO account, NRE account or an FCNR account.

To open a joint savings account with an NRI, the account holders can visit the concerned bank along with relevant documentation and declaration as required by the bank and follow the bank’s protocol.

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