The first step in succession planning is to identify the positions that are integral to the company's success. These are the positions that, without successors, will cause the company's growth to slow or stop. In most cases, the higher they are on the chain of command, the more crucial it becomes to name a successor.
We've come up with the 4 crucial "must-haves" in your plan:
Understand Strategy & Structure. In order for succession planning to be effective, you should know what your organization's goals and interests are. ...
Evaluate Employee Skills. ...
Training and Development. ...
Provide Recognition and Advancement Opportunities.
Succession planning is the process of identifying high-potential employees for key leadership roles within an organization and developing those individuals to ensure readiness to advance.
- Whether a Joint Account can be continued for family pension after death of a pensioner?
Yes, the banks should not insist on opening of a new account in case of Central Government pensioner if the spouse in whose favour an authorization for family pension exists in the Pension Payment Order (PPO) is the survivor. The family pension should be credited to the existing account without opening a new account by the family pensioner for this purpose.
- When is the pension credited to the pensioner's account by the paying branch?
The pension paying banks credit the pension amount in the accounts of the pensioners based on the instructions given by the Pension Paying Authorities.
- Can the pension paying bank recover the excess amount credited to the pensioner’s account?
(a) Agency banks are requested to seek guidance from respective Pension Sanctioning Authorities regarding the process to be followed for recovery of excess pension paid to the pensioners, if any.
(b) Where excess pension payment has arisen on account of mistakes committed by the bank, the amount paid in excess should be refunded to the Government in lump-sum immediately after detection of the same and without waiting for recovery of any amount from the pensioners.
- Should acknowledgement be given by pension paying banks while accepting Life Certificates from pensioners?
There have been complaints that life certificates submitted over the counter of pension paying branches are misplaced causing delay in payment of monthly pensions. In order to alleviate the hardships faced by pensioners, agency banks were instructed to mandatorily issue duly signed acknowledgements. They were also requested to consider entering the receipt of life certificates in their CBS and issue a system generated acknowledgement which would serve the twin purpose of acknowledgement as well as real time updation of records.
- Who is responsible for deduction of Income Tax at source from pension payment?
The pension paying bank is responsible for deduction of Income Tax from pension amount in accordance with the rates prescribed by the Income Tax authorities from time to time.
A recession is a fall in real GDP/ negative economic growth. To avoid a recession, the government and monetary authorities need to try and increase aggregate demand (consumer spending, investment, exports). There is no guarantee that they will work. It will depend on the policies and also the causes of the recession.
The primary policies will be
Loosening of monetary policy – cutting interest rates to reduce cost of borrowing and encourage investment
Expansionary fiscal policy – increased government spending financed by borrowing will enable an injection of investment into circular flow
Ensure financial stability – in a credit crunch, government intervention to guarantee bank deposits and major financial institutions can maintain credibility in the banking system.
If the recession is caused by very high-interest rates, then cutting interest rates may help avoid a recession. But, if you have a large fall in asset prices/bank losses (often called balance sheet recession) it is more difficult because even if you cut interest rates, banks may still not lend.
Keep a track on repayment of the debts, as the heap keeps piling up along with the delayed time! To avoid making the debt into the unpayable burden, build a separate fund for repaying the debts. This practice will help you to manage the debts efficiently and save you from loterm liability.
Increase capital requirements for shadow banks and depository institutions and make them countercyclical.
Eliminate liquidity requirements.
Improve consumer literacy and restrict consumer leverage.
Create a Chapter 11 bankruptcy for banks.
Design a more integrated regulatory structure.
However, your financial crisis can be remedied by regaining your self-control and taking solid actions. The financial benefits of dealing with financial crisis—saving more, paying down debt—will improve not just your self confidence, but your overall mood as well.
If you're in the market for your first credit card or your next credit card, it's important to do some comparison shopping. Some of the key things to look for when comparing credit cards include:
Regular variable APR for purchases
APR for balance transfers and cash advances
Promotional APR terms and conditions
Annual fees
Rewards programs
Introductory bonus offer terms
It's also helpful to look at the card's other benefits and features, if any. For example, if you're interested in opening a travel credit card to earn miles or points toward flights and hotel stays you may also be interested in finding a card that comes with benefits such as airport lounge access or airline fee credits. If a card has an annual fee, it's helpful to compare the value of rewards and benefits to the fee to decide if it's worth it.
Credit cards can be used to make purchases online or in stores and pay bills. When you use a credit card for either one, your card details are sent to the merchant's bank. The bank then gets authorization from the credit card network to process the transaction. Your card issuer then has to verify your information and either approve or decline the transaction.
If the transaction is approved, the payment is made to the merchant and your card's available credit is reduced by the transaction amount. At the end of your billing cycle, your card issuer will send you a statement showing all the transactions for that month, your previous balance and new balance, your minimum payment due and your due date.
The grace period is the period of time between the date of a purchase on your card and the due date listed on your statement. During this period if you pay your bill in full by the due date, no interest charges accrue. But if you carry a balance month to month, your card issuer can charge you interest. Your credit card's annual percentage rate or APR reflects the cost of carrying a balance on an annualized basis. Your APR includes both your interest rate and other costs, such as an annual fee if your card has one.
A credit card is a physical card that can be used to make purchases, pay bills or depending on the card, withdraw cash. The simplest way to think of a credit card is as a type of short term loan.
When you open a credit card account, your credit card company gives you a set credit limit. This is essentially an amount of money the credit card company allows you to use to make purchases or pay bills.
Your available credit is reduced as you charge things to the card. You then pay back what you spent from your credit limit to the credit card company.
- Confidentiality.
- Integrity.
- Authentication.
- Availability.
- Authorization.
- Non-repudiation.
Below, they share 14 security measures you should take.
- Regularly check your financial statements. ...
- Turn on two-factor authentication. ...
- Verify your payment recipient. ...
- Have a dedicated payment method for online transactions. ...
- Use biometric authentication when possible. ...
- Double-check QR codes.
- Take advantage of one-time passwords.
- Be cautious with linked checking accounts.
- Ensure your vendor is PCI DSS-compliant.
- Don’t reuse passwords.
- Only use apps you trust.
- Never use a debit card.
- Submit minimal personal information.
- Look for SSL encryption.
Digital payment is a transaction that takes place via digital or online modes, with no physical exchange of money involved. This means that both parties, the payer and the payee, use electronic mediums to exchange money. Please note that digital payments can take place on the internet as well as on physical premises.
Digital payments have several advantages over paper checks: Convenience & accessibility: with digital payments, customers can self-service and pay invoices from anywhere at any time. They can even pay directly from the emails and invoices they receive with a 1-click "Pay Now" button.
Q1. What is Commercial Paper (CP)?
Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note.
Q2. When it was introduced?
It was introduced in India in 1990.
Q3. Why it was introduced?
It was introduced in India in 1990 with a view to enabling highly rated corporate borrowers to diversify their sources of short-term borrowings and to provide an additional instrument to investors. Subsequently, primary dealers and all-India financial institutions were also permitted to issue CP to enable them to meet their short-term funding requirements for their operations.
Q4. Who can issue CP?
Corporates, primary dealers (PDs) and the All-India Financial Institutions (FIs) are eligible to issue CP.
Q5. Whether all the corporates would automatically be eligible to issue CP?
No. A corporate would be eligible to issue CP provided –
a. the tangible net worth of the company, as per the latest audited balance sheet, is not less than Rs. 4 crore
b. company has been sanctioned working capital limit by bank/s or all-India financial institution/s; and
c. the borrowal account of the company is classified as a Standard Asset by the financing bank/s/ institution/s.
Mudra loans under Pradhan Mantri Mudra Yojana (PMMY) can be availed of from nearby branch office of a bank, NBFC, MFIs etc. Borrowers can also now file online application for MUDRA loans on Udyamimitra portal (www.udyamimitra.in).
Loan Categories
Agricultural Loans.
Business Loans.
Education Loans.
Housing Loans.
Loan Repayment.
Veterans Loans.
Pradhan Mantri Jeevan Jyoti Bima Yojana
Any individual who has a savings bank account of the age group between 18 and 50 are eligible for this scheme. The life cover under this scheme is Rs. 2 lakh to the beneficiary of the policyholder, in case of his demise.
List of Other Important schemes launched by Modi Government:
Atmanirbhar Bharat Abhiyan.
Mission Karmayogi.
Pradhan Mantri SVANidhi Scheme.
Samarth Scheme.
Savya Shiksha Abhiyaan.
Rashtriya Gokul Mission.
Production Linked Incentive (PLI) Scheme.
PM FME – Formalization of Micro Food Processing Enterprises Scheme.
- For what purposes can I seek a first time home loan?
You can generally seek a first time home loan for buying a house or a flat, renovation, extension and repairs to your existing house. Most banks have a separate policy for those who are going for a second house. Please remember to seek specific clarifications on the above-mentioned issues from your commercial bank.
- How will your bank decide your home loan eligibility?
Your bank will assess your repayment capacity while deciding the home loan eligibility. Repayment capacity is based on your monthly disposable / surplus income, (which in turn is based on factors such as total monthly income / surplus less monthly expenses) and other factors like spouse's income, assets, liabilities, stability of income etc. The main concern of the bank is to make sure that you comfortably repay the loan on time and ensure end use. The higher the monthly disposable income, higher will be the amount you will be eligible for loan. Typically a bank assumes that about 55-60 % of your monthly disposable / surplus income is available for repayment of loan. However, some banks calculate the income available for EMI payments based on an individual’s gross income and not on his disposable income.
The amount of the loan depends on the tenure of the loan and the rate of interest also as these variables determine your monthly outgo / outflow which in turn depends on your disposable income. Banks generally fix an upper age limit for home loan applicants.
- What is an EMI?
You repay the loan in Equated Monthly Installments (EMIs) comprising both principal and interest. Repayment by way of EMI starts from the month following the month in which you take full disbursement. (For understanding how EMI is calculated, please see annex).
- What documents are generally sought for a loan approval?
In addition to all legal documents relating to the house being bought, banks will also ask you to submit Identity and Residence Proof, latest salary slip ( authenticated by the employer and self attested for employees ) and Form 16 ( for business persons/ self-employed ) and last 6 months bank statements / Balance Sheet, as applicable . You also need to submit the completed application form along with your photograph. Loan applications form would give a checklist of documents to be attached with the application.
Do not be in a hurry to seal the deal quickly.
Please do discuss and seek more information on any waivers in terms and conditions provided by the commercial bank in this regard. For example some banks insist on submission of Life Insurance Policies of the borrower / guarantor equal to the loan amount assigned in favour of the commercial bank. There are usually amount ceilings for this condition which can also be waived by appropriate authority. Please read the fine print of the bank’s scheme carefully and seek clarifications.
- What are the different interest rate options offered by banks?
Banks generally offer either of the following loan options: Floating Rate Home Loans and Fixed Rate Home Loans. For a Fixed Rate Loan, the rate of interest is fixed either for the entire tenure of the loan or a certain part of the tenure of the loan. In case of a pure fixed loan, the EMI due to the bank remains constant. If a bank offers a Loan which is fixed only for a certain period of the tenure of the loan, please try to elicit information from the bank whether the rates may be raised after the period (reset clause). You may try to negotiate a lock-in that should include the rate that you have agreed upon initially and the period the lock-in lasts.
Hence, the EMI of a fixed rate loan is known in advance. This is the cash outflow that can be planned for at the outset of the loan. If the inflation and the interest rate in the economy move up over the years, a fixed EMI is attractively stagnant and is easier to plan for. However, if you have fixed EMI, any reduction in interest rates in the market, will not benefit you.
It is easy to spend money. Saving requires a lot working.
Turn your mind to saving mode. When you see money, think of saving more of it.
Develop saving habits. And inculcate the same in your family. Develop fun activities and teach your kids about saving.
Before making a purchase think if it’s what you want or what you need. If you can skip buying it, do so.
Instead of vaguely saving, set some targets. List down your goals, the amount you need and the timeline for the same.
Maintain your body’s and home health. Get them regularly checked to avoid major damage and expenditure later.
Saving mistakes to avoid
Don’t lure into bulk buying discounts. Instead of saving, we usually end up buying more than we need and spend more than our budget.
Not knowing where your income is coming from and how much you are spending. Make a cash flow. Have a budget, a spending plan.
Avoiding basic saving funds like emergency, retirement, health insurance, etc.
Take the help of technology and a financial planner to track your expenses, budget, save and achieve your life goals, become financially secure and independent.
As soon as we get our first income, start saving. There might be times when we may fall short of earning.
Build an emergency fund. In times of crises, these savings will come handy. Think of an emergency fund as your BAE and start saving towards building an emergency fun Before Anything Else.
Inflation depreciates the value of our money. The money saved today and returns on it can come to use later when the prices of goods and services are high. Saving helps us to keep up with inflation.
Save for big expenses and life goals. Major life expenses like education (college fees), wedding, holiday, car, home, etc. can be funded with your well-saved money. Set a goal and regularly save towards it.
Save for your non-working days and old age. The expenses will be the same. Moreover, they will increase because of inflation. Star saving early for your retirement
Save and accumulate capital to invest and grab golden opportunities.
Save and create wealth to pass on to your next generation.
Whatever income we receive, we either spend it or keep it for later. This is saving.
Money that we don’t spend is our saving.
The formula is simple. To save more, we will have to either spend less and earn more.
It is wise not to spend all that we have at once. We save in jars, piggy banks, bank accounts and other investment options like stocks and mutual fund.
Q1. What is the expiry date of PSLC?
All PSLCs will be valid till March 31st and will expire on April 1st.
Q2. Whether PSLCs can be issued for a limited period i.e., for one reporting quarter and multiples thereof?
The duration of the PSLCs will depend on the date of issue with all PSLCs being valid till March 31st and expiring on April 1st.
Q3. Whether service tax/ stamp duty/ transaction tax will be applicable while paying fee for PSLC?
PSLCs may be construed in the nature of 'goods'#, dealing in which has been notified as a permissible activity under section 6(1)(o) of BR Act vide Government of India Notification dated May 4, 2016. The tax implications on account of trading in PSLCs may be determined by the banks in accordance with the applicable tax laws. Further, as per the extant guidelines, no transaction charge/ fees is applicable on the participating banks payable to RBI for usage of the PSLC module on e-Kuber portal.
Q4. Whether PSLC – Weaker Sections or PSLC – Export Credit can be traded?
There are only four eligible categories of PSLCs i.e. PSLC General, PSLC Small and Marginal Farmer, PSLC Agriculture & PSLC Micro Enterprises.
Q5. Whether Export Credit may form a part of PSLC 'General' and whether banks’ surplus in Export Credit can be sold as PSLC 'General’? Can foreign banks with less than 20 branches reckon PSLC General towards the incremental target for lending to sectors other than exports beyond the overall target of 32 percent?
'Export Credit' can form a part of underlying assets against the PSLC - General. However, any bank issuing PSLC-General against 'Export Credit' shall ensure that the underlying 'Export Credit' portfolio is also eligible for priority sector classification by domestic banks.
Foreign banks with less than 20 branches are not allowed to reckon PSLC General towards fulfilment of their incremental target for lending to sectors other than exports beyond the overall target of 32 per cent. However, such banks are allowed to reckon PSLC Agriculture, PSLC Micro Enterprises and PSLC SF / MF for the same.
Q1: Will banks be required to maintain specified securities for the amount received in TLTRO in HTM book at all times?
Ans: Yes. The banks will have to maintain amount of specified securities for the amount received in TLTRO in its HTM book at all times till maturity of TLTRO.
Q2: Will the bank have to necessarily continue to hold an amount equivalent to what it was holding as on March 26, 2020 in its HFT/AFS portfolio for the tenor of TLTRO borrowing?
Ans: Under TLTRO scheme, banks will have to invest the amount borrowed under TLTROs in fresh acquisition of securities (i.e., over and above their outstanding statement in specified securities it was holding as on March 26, 2020) from primary/secondary market. However, participation in TLTRO scheme will not impinge on the existing investment of the bank and the bank may continue to operate their AFS/HFT portfolio, as hitherto, in terms of extant regulatory/internal guidelines.
Q3: Is there any maturity restriction on the securities to be acquired under TLTRO scheme?
Ans: There is no maturity restriction on the specified securities to be acquired under TLTRO scheme. However, the outstanding amount of specified securities in bank’s HTM portfolio should not fall below the level of amount availed under TLTRO scheme.
Q4: Will investment in a longer tenor specified security continue to be classified as HTM even after maturity of TLTRO?
Ans: The specified securities acquired under TLTRO scheme will be allowed to remain in HTM portfolio till their maturity.
Q5: Can a bank categorise specified securities acquired under TLTRO scheme as AFS or HFT?
Ans: The specified securities acquired under TLTRO scheme will be classified in HTM category. However, if a bank decides to classify such securities under AFS/HFT category at the time of acquisition, it will not be allowed to later shift such securities to HTM category and it should maintain sufficient records to demonstrate and separately identify securities purchased under TLTRO scheme within the AFS/HFT portfolio. Further, all regulations applicable to securities classified under AFS/HFT including those on valuation, will be applicable on such specified securities.
