Bank Shastra

PMAY Purpose "Housing for All" Mission for urban areas has been implemented with effect from 17.06.2015 to provide central assistance to the implementing agencies. Under this mission, the Credit Linked Subsidy Scheme is being offered. Pradhan Mantri Awas Yojana (Urban) Mission launched on 25 June 2015 to provide housing for all urban areas by 2022. The Mission provides central assistance to implementing agencies through the Member States / Union Territories (UTs) and Central Nodal Agencies (CNAs) to provide housing for all eligible families / beneficiaries against a validated demand for housing of approximately 1.12 Cr. As per the PMAY(U) guidelines, the size of the house for the Economically Weaker Section (EWS) could be up to 30 square meters. Mt. carpet area, however, States / UTs have the flexibility to increase the size of houses in consultation with and approval by the Ministry. In the case of the Middle-Income Group (MIG), interest subsidies will be granted on housing ...

PMJDY Purpose In his address on Independence Day on 15 August 2014, Hon'ble Prime Minister Pradhan Mantri Jan Dhan Yojana announced that the National Mission on Financial Inclusion would ensure a comprehensive financial inclusion of all households in the country by providing universal access to banking facilities with at least one basic bank account for each household, financial literacy, access to credit, insurance. In this context, a person who does not have a savings account may open an account without requiring a minimum balance and, in the event that they self-certify that they do not have any of the officially valid documents required to open a savings account, they may open a small account. Furthermore, to extend the scope of banking services, all over 6 lakh villages in the country were mapped into 1,59 lakh Sub-Service Areas (SSAs), with each SSA generally comprising between 1,000 and 1,500 households, and Bank Mitras was deployed for branchless banking in the 1,26 lakh SS...

The Five Pillars Government has to finance many social, cultural, industrial and infrastructure projects for development of nation. Along with these projects’ government has to provide scholarships for education, financing of house for poor, etc. To provide all these facilities government needs a lot of money Here, we will take a look how Government schemes are supported financially. 1. Tax 2. Borrowing and other Liability 3. Union Excise duty 4. Customs 5. Non-Debt Capital Receipt Tax Corporation Tax A corporate entity or corporation is an artificial person who is legally considered to have certain rights and duties, so that it has an independent legal identity separate from its shareholders by law. Today, companies in two distinct groups are divided into the following: Domestic Corporations - A company formed in India and registered under the Companies Act of India, 2013 is called a Domestic Corporation. Even a foreign firm can be considered as a domestic business if the management a...

Public vs Private Loan There is a big gap between a public sector bank's loan and a private bank. The younger generation is always in support of private banks, while our parents will always direct us from a bank in the public sector. Private and Public bank's Pros and Cons Convenience Private banks generally use DSA to receive customers for loans. The downside is that you can carry out all the paperwork at home. You don't even have to enter the bank. In contrast to private lenders, private banks do not use DSAs aggressively, because it involves more legacy work. Bank Processing Fee The processing fees of private banks are normally higher, as payments also need to be made to the DSA. Furthermore, you have to pay for a personal loan at the door. Public banks that don't normally deliver such advantages often have a lower processing fee. Make sure you thoroughly read all the rules, conditions and fee rates before the contract is concluded. While some technical jargons you d...

Government Loan Schemes Government provides loan programs to support the needs of individuals, businesses and communities through various departments. These loans provide capital for those not eligible to obtain a private lender's loan. State loan services will assist: • Improve the national economy overall and its citizens quality of life • Promoting entrepreneurship and creativity • Protection from and disaster relief • Enhance the intellectual capital of the nation • Reward veterans and workers for past efforts and assistance with current needs Private loan terms may not be reasonable for individuals and small businesses with little or no seed capital or collateral. Low-cost public loans aim to overcome this capital divide and to provide recipients and the nation with long-term benefits. In order to fund micros, small and medium-sized enterprises (MSME) and other significant institutions, government business loans were implemented primarily. There are many varieties and modern e...

What is Moratorium? Temporary posting of interest/principal/ mortgage payments is a moratorium. Initially, RBI allowed borrowers to grant a moratorium for payment of loan instalments due between 1 March 2020 and 31 May 2020. The Reserve Bank of India announced an extension for three months to the regulation package in accordance with which borrower payments for installs due from 1 June 2020 to 31 August 2020 shall be liable for a moratorium / deferment for their loan repayment. However, for the late or moratory period, the interest on the outstanding loans will continue to be levied. How is it Implemented? Banks are approaching clients to find out, in an effort to resolve distress, if they want to use the moratorium on repayment of loans announced by the Reserve Bank of India (RBI). All loans including home loans, personal loans, education loans, automotive loans, working capital loans, credit card dues and so forth are included. There will be no interest forgiven and the amount left w...

Agriculture Loans Agriculture is the backbone of the Indian economy and it certainly does not come as a surprise to see financial institutions offering monetary assistance to farmers throughout the country. Agricultural loans are available for various activities related to the agriculture. Types of Farm Loans in India One may make use of a loan for the following agricultural activities: • Day to day activities • Buying agricultural equipment such as tractors, harvesters and so on • Purchasing Land • Uses for inventory • Product marketing loans • Extension In addition, such financial supports may also be provided in the form of grants and subsidies, typically intended to protect the farmer in case of crop damage or crop failure. Farmers working in India to grow food crops are not only given agricultural loans, but also available to those engaged in other farming sectors such as horticulture, aquaculture, animal husbandry, silk farming, apiculture and floriculture. National Bank for Agri...

In this article we will discuss what SWIFT does, how it works and how it makes money. Every day almost 11,000 SWIFT Member institutions send approximately 33.6 million network transactions to SWIFT. Today, it's easy to go to a bank and transfer money all over the globe, but how? The Society for Worldwide Interbank Financial Telecommunications (SWIFT) network is behind most foreign money and security transfers. SWIFT is an enormous network of messaging services used by banks and others to send and receive information, including money transfer instructions, easily, accurately and securely. What is SWIFT The SWIFT is a member-owned co-operative which provides its members with safe and secure transactions for financial transactions. This payment network enables individuals and companies even when a customer or sale provider uses a different bank than the payee to pay electronically or by card. SWIFT assigns each institution to a single ID code that not only identifies the name of the b...

What is UPI For the first time, UPI has almost matched the value of transactions registered by IMPS, showing the increasing use of UPI. In January 2020, 259.53 million transactions worth Rs 2.16 trillion were carried out by the NPCI-owned instant real-time interbank electronic funds transfer system. According to the report, UPI has overtaken credit cards as a preferred method of payment and recorded the highest growth of 885 per cent in all payment modes over the past 24 months. The UPI is a smartphone application that allows users to transfer money between bank accounts. The payment system established by the National Payments Corporation of India (NPCI) is a single window mobile payment system. Each time a customer enters a transaction, it does not require bank details or other sensitive information. The single payment interface is a payment system in real time. The program allows intra banking peer-to - peer transfers by means of a single authentication process with two clicks. The i...

What is API No wonder, for the world banking industry at least from a regulatory perspective, the last decade has been one of the most disruptive times. In the new era of transparency, financial institutions were forced to develop and authorities took unparalleled steps to ensure that consumer protection was maintained in the face of all business activity performed by banks. Open Banking, which allows major banks to exchange consumer data with third parties, is among the most robust transparency campaigns. And Open Banking 's core application programming interfaces (APIs) are located. Typically, APIs refer to software program technical interfaces. Today, the Internet of Things (IoT) is becoming increasingly sophisticated. In this way intelligent devices use APIs to deliver customer solutions A smartphone may be used, for example, to pay for an item in a store, then to transfer details through an API call to check the balance of the bank account of the customer after payment. As suc...

Instant Credit by E-Commerce In e-commerce, there is a new form of payment — instant finance. This is an enticing alternative to credit and debit cards when paying for online picks and allows the retailers to spread their charges over time with or without providing APR financing. Instant financing is particularly attractive for millennials, many of which have no credit cards. Maybe the key reason for dealers to introduce immediate finance into their checkouts is to combat the cart drop. Baymard Institute reports that almost 70% of online customers involved in the buying process have left items unbought on their shopping carts. According to BI Intelligence, online retailers cost $6.4 billion in unrealized profits. Today, many instant finance solutions for online dealers are available, but study shows that all the needs of online retailers, brands and consumers are met only by those POS funding options which provide the convenience of choosing and smooth, non-frictional service. It is ea...

History of Credit Card Since the growth of computers and the development of faster communication networks, banking organizations have seen a drastic increase in size and geographic spread. Computers offered better data protection, detection of fraud and decreased customer data collection time. The technology changed the way the financial industry works, making the checks irrelevant. In our wallets we all have credit and debit cards. The first Charg-It card was launched by Biggins' bank in 1946. It acted as a middleman who balanced payments from the customer and traders in a closed-loop system. Every transaction on Charg-It was forwarded to Biggins' bank and only bank customers were allowed to use the Charg-It card in their local area. In 1950, The Diner's Club Inc. launched the first version of a universal credit card. Their job was to build loyalty and experience for customers. The bill had to be fully paid at the end of each month, but the credence that the first credit c...

What Is a Credit Score ? A credit score is between 300-850 that shows the loan worthiness of a consumer. The higher the credit score, the more the borrower is appealing. A credit score is based on credit history: open accounts number, debt level total and history of reimbursement. Lenders use credit scores to determine the probability that a individual pays back loans promptly. The credit score model was created and used by financial institutions by Fair Isaac Corporation, also known as the FICO. The FICO score is the most commonly used, though there are other credit scoring programs. There are a range of ways to improve a person's performance, including time payment of loans and low debt. How Credit Scores Work ? Your life can be influenced by a credit score. It plays an important role in a credit offering decision by the lender. For instance, people with credit scores below 640 appear to be subprime borrowers. In order to make up for carrying more risk, lending institutions frequ...

 “AI is probably the most important thing humanity has ever worked on.” – Google CEO Sundar Pichai    In 2018, 76 per cent of banking industry chief experience officials agree in a World Economic Forum report that AI is a top priority as it is critical for differentiation. AI has the uppermost priority in collaboration with Deloitte. These services traditionally included basic budgeting apps or digital tools, but AI now offers customers suggestions, payment background, a support source and a resource to answer customer questions via chatbots. Artificial intelligence in banking is used to hold constructive interactions with customers through specific problems solving and financial management. How will Consumer Benefit from AI? Because banks still normally lack to understand the needs of their clients, consumers are not realizing their full saving potential. With most firms still operating in legacy systems, complex transactions beyond money transfer and deposits can prove ...

What is Cryptocurrency A new word emerged in our lives two months after the beginning of the recession of 2008 and gradually transformed from a vague expression ("virtual coin") to the vocabulary used to characterize the new economy. On June 9, 2009 the first bitcoin was released by an anonymous person called Satoshi Nakamoto. For different reasons like the sub-prime crisis, Nakamoto, claimed he is a Japanese man in his 30's, said he gave the open protocol in 2007. Today the new coin is called a "Digital Asset" and decentralization is the principal idea behind it: there's no main institution responsible for regulating it. The most familiar and traded form of Blockchain's technology, Bitcoin, who has crossed the $15,000 lines way back and has shows an image of exponential increase in the past few months. The great advantage of blockchain technology is that it doesn't have to keep records for a large central computer or big managing company. With this ...