Provident Financial News

Across the Indian financial landscape, small savings schemes have long played a pivotal role, offering a blend of benefits and risks that shape the financial landscape. In February 2022, small saving deposits totaled Rs 9.9 lakh crore, a mere fraction of the overall SCB deposits amounting to Rs 170.2 lakh crore. However, research conducted by Bank of Baroda reveals that the ratio of small saving deposits to commercial bank deposits has increased from 4.4 percent to 5.8 percent over the past five years. This highlights a significant trend in India’s financial landscape, indicating a steady increase in the proportion of small saving deposits relative to commercial bank deposits over the past five years.

WHEN a salaried employee switches jobs, her provident fund (PF) balance will now get automatically transferred to the new employer without any documentation. The account will get seamlessly transferred the moment the new employer deposits the PF contribution from the employee’s first month’s salary.

By Deepak Sood

Fixed deposits (FDs), also known as term deposits or time deposits, are considered a much safer investment tool. Banks and other financial institutions allow customers to put a certain amount of money in fixed deposits for a set period and earn guaranteed returns at a fixed interest rate.

The Employees’ Provident Fund Organisation (EPFO) plays a crucial role in promoting financial safety and stability among employees, especially in the organised sector. One of the primary benefits provided by EPFO is the accumulation of retirement savings through the EPF scheme.

Geetanjali Homestate, a leading real estate agency, has unveiled its latest service, Home Loan Assistance, designed to simplify the property purchasing journey and provide customers with seamless solutions for their property financing needs.

By Sudhir Kaushik

Have you ever struggled to pay a credit card bill if the due date is around the last day of the month? This, typically, happens when one is short of funds in the final days of the month, as the next month’s salary is awaited. Currently, the due date is fixed at the time of issuance of the card and to date there has been no flexibility or option for the cardholder to fix the due date. Now, cardholders will have the option to set their payment due date.

The Federation of Automobile Dealers Associations (FADA), the apex national body of automobile retail in India has announced the start of Dealer Satisfaction Study for Finance and Insurance to be undertaken in association with PremonAsia, a consumer-insight-led consulting and advisory firm based out of Singapore.

Bank Of India and India Mortgage Guarantee Corporation (IMGC) have partnered to offer mortgage guarantee backed home loan products, focusing on salaried and self employed customers in the affordable housing segments. IMGC is India's first mortgage guarantee company with over 5,100 branches and plans to provide home loan products with more flexibility and security to customers. “The Bank has launched a Home Loan product with a mortgage guarantee provided by IMGC to strengthen the credit delivery system and facilitate flow of credit to the affordable housing sector”, said A K Pathak, Chief General Manager, Bank Of India.

Under the terms of the deal, LBBW will take on Bitpanda's 'investment-as-a-service' infrastructure to store and procure cryptocurrencies.

majority of shareholders of edtech firm Think and Learn, owner of Byju's brand, have approved the company's resolution to increase its authorised share capital to absorb USD 200 million raised through the rights issue, a statement said on Monday. The EGM held on March 29 was opposed by a group of investors in the company. «The Extraordinary General Meeting (EGM) held on March 29, 2024, has been approved by a majority of 55 per cent of the total votes polled. The voting process, which included both the EGM and a postal ballot that concluded on April 6, 2024, has been duly scrutinised by an independent third party,» the company said in a statement.

Shiv Sena (UBT) leader Sanjay Raut on Monday questioned the source of income of the charity organisation controlled by Maharashtra Chief Minister Eknath Shinde's son and MP Shrikant Shinde, saying the funds could have been misused for political gains. The Shiv Sena led by Shinde dismissed the allegations, saying the Foundation has undertaken numerous developmental works and provided financial assistance to the needy. Raut said he had written to Prime Minister Narendra Modi and state Home Minister Devendra Fadnavis about the foundation. «We will try to file a case through ED or CBI,» he added. He also claimed the information on the source of funds and expenses of the organisation sought under the RTI query was not disclosed by the Maharashtra Charity Commissioner's office, apparently due to political pressure.

Hong Kong gave conditional approvals for asset managers to start spot-Bitcoin and Ether exchange-traded funds, the firms said, a development that boosted both tokens and the wider crypto market.

—Name withheld on request Assuming that you were a non-resident Indian (NRI) under the Indian Income Tax Act for at least nine out of 10 financial years preceding FY24-25, you would become a resident but not ordinarily resident (RNOR) for FY 2024-25. Usually, foreign income is not taxable under IT Act for a RNOR individual. However, since you would be providing consultancy services from India, such income would become taxable in India at the normal slab rates.

₹7 lakh income, ₹50,000 standard deduction for salaried individuals and lower tax rates. “The government has structured the new scheme in a way that the tax outgo is either low or at par with the old scheme unless the taxpayer is claiming substantial tax deductions and exemptions," he said. For net incomes up to ₹7.5 lakh, the new tax regime is the straightaway choice as you get the tax rebate after claiming the ₹50,000 deduction.

Finance Minister Nirmala Sitharaman says: “Whether it is aimed at employment or not, it is certainly aimed at helping the MSMEs and the small ticket loan seekers. The small ticket loan seekers are the people who cannot give collaterals at all. We had extended a lot of help for them.” Excerpts from the interview

It’s best to have a single Universal Account Number (UAN) and connect all your EPF accounts to it. However, for various reasons, an employee may end up with multiple UANs. When changing jobs, failing to provide your previous UAN details to your new employer could result in them enrolling you for a new UAN.

The Employees’ Provident Fund Organization (EPFO) is vital in safeguarding employees’ financial futures through retirement savings promotion. Getting a grasp on the latest clarifications regarding pension rules from the EPFO can be quite beneficial.

Ambuja Cements on Monday said it will acquire My Home Group's cement grinding unit at Tuticorin in Tamil Nadu for a total value of Rs 413.75 crore. The company — a part of the Adani Group — has signed a definitive agreement to acquire the cement grinding unit of the My Home Group, which has a capacity of 1.5 MTPA, Ambuja Cements said in a statement. «The acquisition estimated at a total value of Rs 413.75 crore through internal accruals will aid in enhancing the coastal footprint across southern markets of Tamil Nadu and Kerala,» it added. The total cement capacity of Adani Group stands at 78.9 MTPA, the company said.

Lancet report that asserted that the Indian government spends just 1.2 per cent of GDP on healthcare and noted that it was among the lowest among G20 countries, sources in the government said that spending is at an all-time high and out-of-pocket expenditure as a per cent of the total health expenditure has decreased. «As per the National Health Policy, 2017, public investment in health is envisioned to reach 2.5% of GDP by 2025. Ministry of Health and Family Welfare (MoHFW) has taken up with States to prioritize allocation to the health sector and enhance their health budgets by at least 10 per cent every year to reach the goal as envisaged,» one of the sources said. The budget estimates of the Department of Health and Family Welfare have reached from Rs 86,175 crore in 2023-24 from Rs 36,948 crore in 2014-15, thereby showing an overall increase of 133.23 per cent during the period, they said.