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Compounding interest, as opposed to simple interest, is the situation where your wealth increases exponentially because you earn interest on your total investments, the aggregation of your principal amount and the interest it incurs. Mathematically, the possibilities of compound interest are endless.  What is Compound Interest? Compound interest is the interest on interest. The interest you earn on the deposit will be reinvested instead of paying it out. In simple terms, if you have investment Rs.100000  for 3 years and you will get a compounding benefit every quarter, then your money will be reinvested every quarter with an earned interest in last months.  Suppose interest rate of your investment is 12% p.a, you will receive 1% monthly interest on Rs.100000 in the initial three months of your investment. After thee months (Quarter), you investment will be reinvested will the earn interest (Rs.100000 + 3000) and you will starting receiving 1% monthly interest on Rs. 103000, after two quarters interest will be occur on Rs.106003 and It will go on until the maturity. How can a Compound Interest Calculator Help You? Accurate Projections: Quickly determine how much your investment or savings will grow over time with precise calculations, taking into account the principal amount, interest rate, and compounding frequency. Financial Planning: Use the calculator to plan for future financial goals, such as retirement, education, or major purchases, by estimating how much you need to save or invest to reach your target amount. Comparison of Investment Options: Compare different investment opportunities by inputting various interest rates and compounding periods to see which option offers the best returns. Understanding Compounding Effects: Visualize the power of compound interest and how even small increases in interest rates or time horizons can significantly impact your total returns. Budgeting and Saving Strategies: Adjust your savings plan by seeing how different monthly contributions affect your long-term savings, helping you create a more effective budget. Customizable Scenarios: Experiment with different scenarios by changing variables like the initial amount, interest rate, and time period to see a range of possible outcomes. Motivation to Save: Seeing potential growth can encourage you to save more and stick to your financial goals, knowing the benefits of compound interest. Easy Accessibility: Many online calculators are user-friendly and free, making it easy to get quick and accurate information without needing advanced financial knowledge. How to Calculate Compound Interest? A = P (1 + r/n) ^ nt The variables in the formula are the following. P Principal Amount A Compound interest R/r Rate of interest N/n Number of times interest compounds in a year T/t Number of years For example, if you invest Rs. 50,000 with an annual interest rate of 10% for 5 years, the returns for the first year will be 50,000 x 10/100 or Rs. 5,000. For the second year, the interest will be calculated on Rs. 50,000 + Rs. 5000 or Rs. 55,000. The interest will be Rs. 5550. For the third year, the amount will stand at Rs 6055 and so on. FAQs How does Compound Interest Calculator help you to choose an investment? Compound Interest Calculator shows you the compound interest that you earn on investments. It helps to choose the right investment tool, period for your investment and make your financial planning better.  What is Daily, Monthly, Quarterly and Yearly compounding? Daily, monthly, quarterly, and yearly compounding refer to how often interest is calculated and added to the principal. Daily compounding adds interest daily, maximizing returns. Monthly compounding adds interest every month, while quarterly compounding does so every three months. Yearly compounding adds interest annually. The more frequent the compounding, the higher the effective interest rate and the greater the potential returns on the investment.

According to Section 194A of the Income Tax Act, the interest earned from bank accounts and other deposits is subject to TDS. This TDS is deducted if the interest earned exceeds the exemption limit for the financial year. Therefore, senior citizens can submit Form 15H to ensure no TDS is deducted from the interest earned from fixed deposits (FDs), recurring deposits (RDs), and other savings schemes. This is only applicable if the interest income earned is within the tax limit. The limit on total interest earned for the financial year is Rs. 50,000 for senior citizens aged 60 years and above. What is Form 15H? Form 15H is a self-declaration form to be filed and submitted by senior citizens (aged 60 years or older) to ensure that banks or financial institutions do not deduct TDS on the interest income earned or accrued in a financial year. This form is used when the individual’s estimated total income is below the basic exemption limit (i.e., ₹3,00,000 or ₹5,00,000, as applicable) and there is no tax liability in that particular year. Key Points About Form 15H: Eligibility: Only for senior citizens (60 years or older). Interest Income Criteria: The estimated total interest income should be below the basic exemption limit. Purpose: Prevents the deduction of TDS on interest income if the total income is below the taxable limit. Validity: Valid for one financial year and needs to be submitted every year if the criteria are met. Provisions of the Income Tax Act: Financial institutions and other organizations must deduct TDS while crediting interest income to an individual’s account if the amount exceeds INR 50,000 for senior citizens. What is Form 15H of the Income Tax Act? Form 15H of the Income Tax Act is a self-declaration form for senior citizens (aged 60 years and above). It must be submitted to avoid tax deducted at source (TDS) on interest income if it is below the exemption limit. TDS is deducted if the interest earned is more than the exemption limit. For example, the limit is Rs. 40,000 (for individuals aged below 60 years) and Rs. 50,000 (for senior citizens aged above 60 years). For total income, the basic exemption limit for senior citizens (aged 60 years and above till 80 years) is ₹3,00,000, while for super senior citizens (aged 80 years or above), it is ₹5,00,000 for the financial year 2023-24.  Form 15H can be submitted online to banks, non-banking financial companies (NBFCs), or financial institutions where the person has a deposit through the official websites or offline at the branch. However, submitting your PAN card details along with this form is mandatory.  Importance of Form 15H for Senior Citizens Senior citizens can use this form to avoid TDS liability on interest earned from investments and deposits. As mentioned earlier, TDS is not deductible if the interest income earned from these deposits and investments for the financial year is within the limit of Rs 50,000 for senior citizens (60 years and above). This form has to be submitted only once a year.  For instance, if you are a senior citizen with no source of income (other than income from interest on deposits), you can submit Form 15 to the banks, NBFCS, and financial institutions where the deposit is held.  Who is Eligible to Submit Form 15H? The individual needs to be a resident citizen of India. Form 15H is specifically for senior citizens (aged 60 years and above). For individuals below the age of 60 years, Form 15G must be submitted. The total taxable income for the financial year must be below the basic exemption limit. The current limit on total interest earned for the financial year is Rs. 50,000 for senior citizens aged 60 years and above.  Form 15H for senior citizens needs to be submitted to each bank, NBFC, or financial institution where the person holds a deposit that earns interest. Uses of Form 15H Form 15H can be used for several purposes. These are listed below: TDS on Interest Earned on Bank FDs: Submitting Form 15H to the bank, NBFC, or financial institution where the senior citizen holds a fixed deposit(s) can help save taxes on interest earned. TDS on Interest Earned on Post Office Deposits: Senior citizens can submit Form 15H to the post office to ensure no tax is deducted at source on deposits. TDS on Interest Earned on Corporate Bonds: TDS also applies to any income exceeding Rs. 5,000 earned annually from corporate bonds. However, senior citizens can submit Form 15H to the issuer to request an exemption from TDS, provided they meet the necessary criteria. Details to be Filled in Form 15H The declarant’s name  Address of the applicant PAN of the applicant  Age Income information for which the declaration needs to be made  Self-declaration Signature and date of submission Difference Between Form 15G and Form 15H Form 15G vs Form 15H Form 15G Form 15H Individuals below the age of 60 can submit Form 15G. Only senior citizens (those aged 60 or above) can submit Form 15H. It must be submitted to avoid TDS on interest income if it is below the exemption limit of Rs. 40,000. It must be submitted to avoid TDS on interest income if it is below the exemption limit of Rs. 50,000. NRIs can submit Form 15G upon meeting all the eligibility criteria. NRIs are not eligible to submit Form 15H. A Hindu Undivided Family (HUF) can submit Form 15G. Form 15H cannot be submitted by an HUF. FAQs What is the use of Form 15H? Form 15H provides tax exemptions on deposits in banks, NBFCs, and other financial institutions for senior citizens (aged 60 years and above) if the interest earned from these deposits is within the exemption limit. What is the income limit for Form 15H for senior citizens? The basic income exemption limit of Form 15H for senior citizens (aged 60 years and above) is ₹3,00,000, while for super senior citizens (aged 80 years or above), it is ₹5,00,000 for the financial year 2023-24.

A Certificate of Deposit or CD is a fixed-income financial tool that is governed by the Reserve Bank of India and is issued in a dematerialized form. It is a type of agreement made between the depositors and the banks, wherein the bank pays an interest on your investment.  Certificate of Deposit is a short-term investment that comes with fixed investment amounts and maturity tenure ranging between 1-3 years. Features of Certificate of Deposit Certificate of deposit in India can be issued for a minimum deposit of Rs. 1 lakh or in subsequent multiples of it. Certificates of deposit are issued by the Scheduled Commercial Banks (SCBs) and All-India Financial Institutions. The Cooperative Banks and the Regional Rural Banks(RRBs) are not eligible for issuing a CD. There is a term period of 3 months to 1 year for CDs that are issued by SCBs, whereas the term period ranges from 1 year to 3 years for CDs issued by financial institutions.  CDs in dematerialised forms can be transferred through endorsement or delivery, similar to dematerialised securities. There is no lock-in period for a certificate of deposit. It is fully taxable under the Income Tax Act. Certificate of Deposit – Key Highlights Certificate of Deposit Meaning The Certificate of Deposit is the product that is offered by banks and credit unions that give an interest rate premium in exchange for the customer agreeing to lock in an amount for a predetermined period of time. Certificate of Deposit Interest Rates Locked rates are the positive attributes of CDs, and they will provide a clear and predictable return to the Deposit over a time period. The bank will not, even later on – change the rate, making it a guaranteed return.  CD Minimum Amount The minimum amount of Deposit begins at Rs. 1,00,000. Tenure This is the length of the period for the CD; for instance, it could be six months to years. The tenure ends on the date of the maturity; when the CD has matured completely, you will be able to withdraw the funds without a penalty fee. Eligibility Criteria CDs are issued by scheduled commercial banks and selected financial institutions in the country as allowed by RBI within the limit.  It is issued to individuals, corporations, companies, and funds, among others. Certificate of Deposits could also be issued to NRIs but on a non-repatriable basis only.  It is important  to note that banks and financial institutions can’t provide loans against CDs. Also, banks would not buy their own CDs before the latter’s maturity. The aforementioned norms would be relaxed by the RBI for a particular period of time. It is crucial to note that banks have to maintain the statutory liquidity ratio and cash reserve ratio on the price of a Certificate of Deposit. Taxes Certificates of deposits are completely fully taxable in the hands of investors under the Income Tax Act. Opportunity for Loans A depositor can get loans against CDs, except for the permitted explicitly by the RBI. The issuer is given to buy back CDs before maturity at the prevailing market price. The investors could opt for accepting or rejecting the CDs purchased back offer as per wants. How to Buy a Certificate of Deposit? The process of buying and selling CDs is similar to that of buying and selling shares, and the steps are mentioned below: Step 1: The seller and the buyer need to agree on the price and the quality of the transaction. Step 2: The seller will authorise its depository participants through the delivery instructions slip. Step 3: The slip will be inclusive of the instructions to debit the seller’s account and transfer the CD to the account of the buyer. Step 4: In the case of any confusion, you can also get assistance from a professional. Certificate of Deposit vs Fixed Deposit Criteria Fixed Deposit Certificate of Deposit Minimum Investment Amount The minimum investment amount for a fixed deposit is Rs. 1000. The minimum deposit amount for a CD is Rs. 1 lakh. Return on Investment It ranges from 3.5% to 8%.  The interest rate on CDs, if issued by organisations, has higher interest rates as compared to commercial banks.  Investment Tenure It is a long-term investment and offers a maximum maturity period of 10 years. This is a short-term investment and offers a maturity period ranging from 1-3 years. Collateral One can apply for a loan against FD. One cannot apply for a loan against a CD. Benefits of Issuing a Certificate of Deposit in India A certificate of deposit does not consume capital for market volatility, and it is a completely secure financial instrument with assured amounts at the time of maturity. The money that is deposited would continue to predict an increase. It also offers a lot of larger interest rates on a lump sum investment. CDs offer you monthly payouts, annual payouts, or also a lump sum payout during withdrawal at maturity. You could choose the tenure and price you want to be invested for, and though there are certain parameters set by the bank, it will help to tailor the investment instruments to your needs. There are usually no additional costs or fees that are associated with a CD, and you only pay your investment. FAQs Will I be able to withdraw the funds from my online CD? Yes, you can withdraw funds only once from your online CD during the grace period without any withdrawal penalty. However, you will be charged with an early withdrawal penalty if you withdraw before the maturity period. What happens once a CD matures? After a CD matures, the investor will have a grace period to withdraw their funds or transfer them into a new CD. Or else the banks or financial institutions may automatically renew it.

A sole proprietorship was the only option for a person who wanted to start a business alone. Now you have an alternative option: a one-person company. The concept of one person company (OPC) allows a single person to run a company limited by shares. A sole proprietorship is an entity run and owned by one individual without distinction between the owner and the business When it comes to starting a business, entrepreneurs have several options to choose from. Among the various legal structures available, sole proprietorship and one person company (OPC) are two popular choices for individuals looking to establish their own ventures. While both structures cater to single owners, they possess fundamental differences that can significantly impact business operations and legal obligations. One Person Company The Companies Act, 2013, introduced the concept of a One Person Company (OPC). An OPC is a hybrid of a sole proprietorship business and a company. An OPC provides a sole proprietor with an opportunity to establish a company. It is considered a private company with limited liability. It has a separate legal entity and must conduct at least one board meeting in each half of the year. Advantages of OPC An OPC has a separate legal entity status from the person establishing it (single member). The member’s liability is limited to his/her shares. The member is not personally liable for the company’s loss. It is easy to raise capital/funds since OPC is a private company. OPC has fewer compliances as compared to private limited companies or LLPs. It is easy to incorporate OPC since only one member, and one nominee exists. It is easy to manage company affairs since a single person establishes and runs the OPC. The OPC has perpetual succession even when only a single member exists.  Since it is established under the Companies Act, 2013, it has credibility as a business. Disadvantages of OPC It is suitable for only small business structures since the maximum number of members an OPC can have is one. The OPC cannot conduct a Non-Banking Financial Investment activity, including the investment in securities of any other company. Since the sole member can be the company director, there is no clear distinction between company ownership and management. Sole Proprietorship A sole proprietorship business is the simplest business carried on by an individual. A sole proprietor can establish the business under his/her name or a fictitious name. The individual establishing a sole proprietorship business is personally liable for its debts. A sole proprietorship does not have a legal entity like an LLC, OPC or a company. The costs and compliances for starting a sole proprietorship are minimal. Advantages of Sole Proprietorship Minimum compliances to be adhered to start a sole proprietorship. It is economical since it is relatively less expensive to start than a company or LLP. The sole proprietor will have total control over the business. The sole proprietor can take quick decisions without needing approval from anyone. The sole proprietor need not conduct board and annual meetings. Tax is less since the income tax slab for individuals applies to business profit. There is no requirement for mandatory audit for a sole proprietorship when the business type does not require it. Disadvantages of Sole Proprietorship The sole proprietor has unlimited liability, and thus his/her personal assets are liable to pay the business’s debts. It has no perpetual succession. Therefore, it comes to an end if the sole proprietor expires. It is not easy to raise capital for the business since a single person manages it. When the business is at a loss, creditors can file a suit against the sole proprietor. Expansion of the business becomes tough since a single person manages it. Difference between Sole Proprietorship and OPC Criteria Sole Proprietorship OPC Definition and Legal Framework A business owned and operated by one person. It is the simplest and most common business structure. A form of business entity introduced in India in 2016. It is a hybrid between a sole proprietorship and a company, offering limited liability protection to the owner. Ownership and Liability The owner has unlimited liability for the debts and obligations of the business. The owner’s liability is limited to the extent of their investment in the OPC. This means that their personal assets are generally protected from creditors of the business. Formation and Compliance Relatively easy and inexpensive to form. There are few formalities involved. Requires more formalities than a sole proprietorship, including filing incorporation documents with the Registrar of Companies (ROC). However, it is still simpler and less expensive than forming a company. Continuity and Transferability The business ceases to exist when the owner dies or becomes incapacitated. The OPC can continue to exist even if the owner dies or becomes incapacitated. The ownership and management of the OPC can be transferred through a nomination process. Fundraising and Expansion Limited access to funding as lenders are hesitant to provide loans due to the unlimited liability of the owner. May have better access to funding compared to a sole proprietorship due to the limited liability protection offered to the owner. However, it may still be challenging to raise large amounts of capital. FAQs Can a sole proprietorship be converted to OPC? Yes, a sole proprietorship can be converted to an OPC by registering the OPC and transferring the assets and liabilities of the sole proprietorship to the OPC. How does OPC differ from a single proprietorship? OPC is a separate legal entity distinct from its owner, providing limited liability to the owner, while a sole proprietorship does not have a separate legal existence, and the owner has unlimited liability. OPC is governed by the Companies Act, 2013, while a sole proprietorship is not.

Section 8 Microfinance Company Registration is the perfect solution. It enables you to establish an organization focused on helping underprivileged communities reduce poverty through accessible microfinance services. Section 8 Microfinance companies are exempt from acquiring an RBI license according to the master circular (RBI/2015-16/15 DNBR (PD) CC.No.052/03.10.119/2015-16) dated July 01, 2015. Microfinance in India allows for the provision of unsecured loans, including personal loans, group loans, and household loans, with interest rates capped at 26% per annum in compliance with RBI norms. By choosing Section 8 Microfinance Company Registration, you can create a unique pathway for organizations dedicated to social welfare.  Section 8 Microfinance Companies Micro finance companies are financial businesses that offer small-scale financial services such as loans, credit, or deposits. These companies were created to simplify the credit system for small enterprises, which are unable to obtain a loan from banks owing to their complicated process. As a result, it is usually referred to as a Micro-credit, Micro-benefit Company. They make modest loans to a variety of small companies and people that do not have access to regular banking channels or loan eligibility. They provide minor loans of less than Rs.50, 000 in rural regions and Rs.125, 000 in metropolitan areas. The Section-8 Company is the easiest way to form a Micro Finance Company in India as per Ministry of Corporate Affairs. Without collecting any additional fees or ensuring security. It can make loans at low interest rates as recommended by the RBI and the central government. They provide significant assistance to all aspects of rural and agricultural development, including revenue and job generation. Key Features and Regulatory Exemptions of Section 8 Microfinance Companies RBI Approval Not Required: Section 8 Microfinance Companies operate without the need for explicit permission from the Reserve Bank of India (RBI), simplifying their establishment and operation. No Minimum Capital Requirement: Unlike other financial institutions, there is no mandate for a minimum capital investment of Rs. 5 crores, making it more accessible for entities to start microfinance operations. Flexibility in Loan Provisioning: These companies are empowered to offer unsecured loans up to Rs. 50,000 to small businesses and up to Rs. 1.25 lakh for primary residential purposes, effectively addressing their target demographics’ needs. Adherence to RBI’s Pricing Guidelines: Despite the exemption from certain regulations, Section 8 companies must comply with the RBI’s stipulations regarding interest rates and processing fees, ensuring fairness and transparency in their operations. Legal Rights in Loan Recovery: They are recognized as legitimate financing entities with the legal authority to pursue recovery from defaulters, safeguarding their financial interests. Exemption under RBI Act: The RBI’s master circular dated July 1, 2015, exempts Section 8 companies engaged in microfinance from sections 45-IA, 45-IB, and 45-IC of the RBI Act, 1934, provided they focus on micro-lending within specified limits and do not accept public deposits. This exemption underscores the RBI’s support for microfinance activities to elevate the underserved populations’ income levels and living standards without the stringent regulatory framework applicable to typical Non-Banking Financial Companies (NBFCs).   Establishing Microfinance Companies The Reserve Bank of India (RBI) typically permits only Non-Banking Finance Companies (NBFCs) to engage in financial operations. Nonetheless, the RBI grants specific exemptions to certain businesses, allowing them to undertake financial activities within defined limits. Consequently, the registration of a microfinance company can be pursued through two distinct avenues: Non-Banking Finance Companies (NBFCs) that are officially registered with the RBI. Section 8 Companies are established following Section 8 of the Companies Act, 2013. The objective of Section 8 Microfinance Company Empowering low-income individuals to achieve self-sufficiency by providing them with financial services and opportunities. Offering banking services tailored for small monetary transactions to cater to the needs of those traditionally excluded from the banking sector. Extending financial support to individuals engaged in various trades and professions, such as transportation, fishing, carpentry, etc., to enhance their economic stability. Assisting small businesses in accessing financial services without the need for collateral, thus enabling their growth and sustainability. Promoting the active participation of women in economic activities by providing them with financial tools and opportunities to create sustainable livelihoods. Facilitating access to quality healthcare services through financial support improves the overall well-being of underserved communities. Advantages of Operating Accessibility to Funding: Microfinance companies are crucial in bridging the financial gap by providing accessible funding options to underserved communities, thus facilitating economic inclusion. Promotion of Entrepreneurship: By offering financial services tailored to the needs of small-scale entrepreneurs, these institutions encourage self-reliance and the establishment of new businesses, contributing to economic development. High Repayment Rates: Microfinance institutions typically report higher loan repayment rates than conventional banking products, indicating a strong credit discipline among their clientele. Short-term Financial Resilience: These companies offer a lifeline to individuals and businesses in need, providing financial stability during temporary hardships and enabling recovery and growth. Diverse Credit Solutions: Catering to a wide range of needs, microfinance companies offer various forms of credit assistance, including emergency loans, consumer loans, business loans, working capital loans, and housing loans, thereby addressing the multifaceted financial needs of their target demographic. Section 8 Micro Finance Company Loan Limits Borrowers having a yearly household income of less than Rs. 1, 00,000 in rural areas or less than Rs. 1, 60,000 in urban and semi-urban areas would be eligible. The loan amount will be limited to Rs. 60,000 in the first cycle and Rs. 1,000,000 in future cycles. The borrower’s total debt will not exceed Rs. 100,000. For loans in excess of Rs. 30,000, the loan term cannot be less than 24 months, with no penalty for early repayment. The loan will be given with no collateral. The total amount of loans issued for income creation is at least 50% of the total amount of loans given by the MFIS. The loan can be repaid in weekly, biweekly, or monthly instalments, depending on the borrower’s preference. Revised RBI Guidelines on Section 8 Microfinance Companies Scope of Loans: The Reserve Bank of India has broadened the definition of microfinance loans to include collateral-free lending to households with an annual income of up to INR 3,00,000.

The RBI vide its Statement on Developmental and Regulatory Policies dated February 08, 2024 announced its decision to mandate Regulated Entities (REs) to provide Key Fact Statement (KFS) for retail and Micro, Small & Medium Enterprise (MSME) loans. Following the aforesaid, RBI issued a notification dated April 15, 2024 (Circular) to “harmonise” the instructions in this regard for all REs. Since the intent of the RBI is to harmonise similar requirements, the KFS Circular overrides similar extant requirements in case of lending by banks to individuals, and digital lending. RBI/2017-18/87DNBR.PD.CC.No.090/03.10.001/2017-18 November 09, 2017 To All Non-Banking Financial Companies (NBFCs), Madam/ Sir, Directions on Managing Risks and Code of Conduct in Outsourcing of Financial Services by NBFCs In exercise of the powers conferred under Section 45 L of the Reserve Bank of India Act, 1934, the Reserve Bank of India after being satisfied that it is necessary and expedient in the public interest so to do and with a view to put in place necessary safeguards applicable to outsourcing of activities by NBFCs, hereby issues the Directions as set out in the Annex. 2. NBFCs are advised to conduct a self-assessment of their existing outsourcing arrangements and bring these in line with the aforesaid Directions within two months from the date of this circular. 3. The Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016, Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016, Non-Banking Financial Company – Account Aggregator (Reserve Bank) Directions, 2016, Core Investment Companies (Reserve Bank) Directions, 2016, Standalone Primary Dealers (Reserve Bank) Directions, 2016 and Non-Banking Financial Company – P2P (Reserve Bank) Directions, 2017 have been accordingly updated. Yours faithfully, (C. D. Srinivasan)Chief General Manager Annex Directions on Managing Risks and Code of Conduct in Outsourcing of Financial Services by NBFCs 1. Introduction 1.1 ‘Outsourcing’ is defined as the NBFC’s use of a third party (either an affiliated entity within a corporate group or an entity that is external to the corporate group) to perform activities on a continuing basis that would normally be undertaken by the NBFC itself, now or in the future. ‘Continuing basis’ includes agreements for a limited period. 1.2 NBFCs have been outsourcing various activities and are hence exposed to various risks as detailed in para 5.3. Further, the outsourced activities are to be brought within regulatory purview to a) protect the interest of the customers of NBFCs and b) to ensure that the NBFC concerned and the Reserve Bank of India have access to all relevant books, records and information available with service provider. Typically outsourced financial services include applications processing (loan origination, credit card), document processing, marketing and research, supervision of loans, data processing and back office related activities, besides others. 1.3 Some key risks in outsourcing are Strategic Risk, Reputation Risk, Compliance Risk, Operational Risk, Legal Risk, Exit Strategy Risk, Counterparty Risk, Country Risk, Contractual Risk, Access Risk, Concentration and Systemic Risk. The failure of a service provider in providing a specified service, a breach in security/ confidentiality, or non-compliance with legal and regulatory requirements by the service provider can lead to financial losses or loss of reputation for the NBFC and could also lead to systemic risks. 1.4 It is therefore imperative for the NBFC outsourcing its activities to ensure sound and responsive risk management practices for effective oversight, due diligence and management of risks arising from such outsourced activities. The directions are applicable to material outsourcing arrangements as explained in para 3 which may be entered into by an NBFC with a service provider located in India or elsewhere. The service provider may either be a member of the group/ conglomerate to which the NBFC belongs, or an unrelated party. 1.5 The underlying principles behind these directions are that the regulated entity shall ensure that outsourcing arrangements neither diminish its ability to fulfil its obligations to customers and RBI nor impede effective supervision by RBI. NBFCs, therefore, have to take steps to ensure that the service provider employs the same high standard of care in performing the services as is expected to be employed by the NBFCs, if the activities were conducted within the NBFCs and not outsourced. Accordingly, NBFCs shall not engage in outsourcing that would result in their internal control, business conduct or reputation being compromised or weakened. 1.6 (i) These directions are concerned with managing risks in outsourcing of financial services and are not applicable to technology-related issues and activities not related to financial services, such as usage of courier, catering of staff, housekeeping and janitorial services, security of the premises, movement and archiving of records, etc. NBFCs which desire to outsource financial services would not require prior approval from RBI. However, such arrangements would be subject to on-site/ off- site monitoring and inspection/ scrutiny by RBI. (ii) In regard to outsourced services relating to credit cards, RBI’s detailed instructions contained in its circular on credit card activities vide DBOD.FSD.BC.49/24.01.011/2005-06 dated November 21, 2005 would be applicable. 2. Activities that shall not be outsourced NBFCs which choose to outsource financial services shall, however, not outsource core management functions including Internal Audit, Strategic and Compliance functions and decision-making functions such as determining compliance with KYC norms for opening deposit accounts, according sanction for loans (including retail loans) and management of investment portfolio. However, for NBFCs in a group/ conglomerate, these functions may be outsourced within the group subject to compliance with instructions in Para 6. Further, while internal audit function itself is a management process, the internal auditors can be on contract. 3. Material Outsourcing For the purpose of these directions, material outsourcing arrangements are those which, if disrupted, have the potential to significantly impact the business operations, reputation, profitability or customer service. Materiality of outsourcing would be based on: the level of importance to the NBFC of the activity being outsourced as well as the significance of the risk posed by the same; the potential impact of the outsourcing on the NBFC on various parameters such as earnings, solvency, liquidity, funding capital and risk profile; the likely impact

The E-Grantz Scholarship has a rich history of empowering students since its inception. Established in 2021, the scholarship aims to provide financial assistance to deserving individuals pursuing higher education. The E-Grantz scholarship is a financial aid program to support student’s education. It offers scholarships to deserving candidates based on various criteria such as academic merit, financial need, and community involvement. Applicants need to complete an online application form before the E-Grantz scholarship last date and provide supporting documents. Recipients may receive funds for covering tuition fees, books, supplies, and other educational expenses. The E-Grantz scholarship program aims to make education more accessible and affordable for students from diverse backgrounds. What is E-Grantz Scholarship? The E-Grantz Scholarship is a prestigious program that offers financial aid to deserving students in Kerala. With a focus on academic excellence and potential, it provides opportunities for students to pursue higher education and achieve their goals. The scholarship recognizes and supports individuals who demonstrate dedication, talent, and a strong commitment to their chosen field of study. Topic Details Scholarship Name E-Grantz Scholarship (Kerala Scholarship) Department Backward Class Development Department, SC Development Department Implemented By Government of Kerala Level Pre-Matric and Post-Matric level Beneficiaries SC, SBC/ EBC, OEC, OBC students Benefits Variable awards Application Mode Online and Offline Official Address DIRECTORATE OF SCHEDULED CASTES DEVELOPMENT, Museum-Nandhavanam Road, Nandhavanam, Vikasbhavan P O, Thiruvananthapuram-695033 Official Website egrantz.kerala.gov.in Helpline Email- [email protected] EGrantz Contact Number- 1800 425 2312 (Toll-Free) Why opt for E-Grantz Scholarship? The E-Grantz Scholarship offers several advantages that make it an attractive choice for students. Unlike many other scholarships, the E-Grantz Scholarship provides not only financial assistance but also additional benefits that can significantly enhance a student’s educational experience.  E-Grantz Scholarship Amount The E-Grantz Scholarship provides financial assistance to students based on their category and current academic qualifications. The scholarship amount is disbursed through Direct Benefit Transfer (DBT) directly into the bank accounts of the selected applicants. Here are the details of the E-Grantz Scholarship amount and benefits offered to eligible students: E-Grantz Scholarship Amount for SC/OEC Candidates: Students studying in colleges within 8 km from their residence receive a stipend of INR 630. Students studying in colleges located more than 8 km from their residence receive a stipend of INR 750. Students pursuing professional courses and residing independently due to the lack of hostel facilities are granted an E-Grantz Scholarship amount of INR 1,500. Criteria Amount Below 8kms from residence Rs.630/- Above 8 km Rs. 750/- Students undergoing professional courses and reside at their own due or lack of hostel facility Rs.1500/- E-Grantz Scholarship Amount for OBC Candidates: Students pursuing 10+2 courses receive an E-Grantz Scholarship amount of INR 160. Criteria Amount Students pursuing 10+2 courses Rs 160/- E-Grantz Scholarship Amount for PG and Professional Courses: Day scholars pursuing PG and professional courses receive an E-Grantz Scholarship amount of INR 200. Hostellers pursuing PG and professional courses receive an E-Grantz Scholarship amount of INR 250. Criteria Amount Day scholars pursuing PG and professional courses Rs.200/- Hostellers pursuing PG and professional courses Rs.250/- E-Grantz Scholarship Amount for Polytechnic Diploma: Day scholars pursuing polytechnic diploma courses receive an E-Grantz Scholarship amount of INR 100. Hostellers pursuing polytechnic diploma courses receive an E-Grantz Scholarship amount of INR 150. Criteria Amount Day scholars pursuing polytechnic diploma courses Rs.100/- Hostellers pursuing polytechnic diploma courses Rs.150/- The E-Grantz Scholarship aims to provide financial support to students in various categories and academic levels, helping them pursue their education without financial constraints. The scholarship amount disbursed enables students to cover their educational expenses and focus on their studies. E-Grantz Scholarship Benefits Financial Aid: The scholarship program provides financial assistance directly to the students’ bank accounts through the Direct Benefit Transfer (DBT) system. This monetary support helps cover educational expenses such as tuition fees, books, supplies, and living costs, relieving the financial burden on the students and their families. Mentorship Programs: The E-Grantz Scholarship offers mentorship programs where selected students are paired with experienced professionals or successful individuals in their respective fields. These mentors provide guidance, advice, and support to the students, helping them navigate their academic and career paths effectively. Career Guidance: Recognizing the importance of career planning and development, the scholarship program offers career guidance resources and workshops. Students gain insights into various career opportunities, learn about industry trends, and receive guidance on building their resumes, preparing for interviews, and networking effectively. Networking Opportunities: The E-Grantz Scholarship facilitates networking opportunities for students to connect with professionals, fellow scholars, and alumni. Networking events, workshops, and online platforms enable students to expand their professional network, learn from industry experts, and explore collaboration prospects. Access to Resources: Scholarship recipients gain access to various educational resources, including online libraries, research databases, and learning materials. These resources enhance their academic capabilities, allowing them to delve deeper into their chosen fields of study and broaden their knowledge base. Recognition and Prestige: Being selected as an E-Grantz Scholar brings recognition and prestige to the students. This accolade can boost their confidence, open doors to further educational and professional opportunities, and create a positive impact on their resumes and future endeavors. Community Engagement: The scholarship program encourages students to actively engage in community service and social initiatives. By participating in community development activities, students develop a sense of responsibility, empathy, and leadership, contributing positively to society. Selection Process of E-Grantz Scholarship Application Submission: Interested students must submit their scholarship applications within the specified timeframe. The applications usually require personal information, academic records, financial details, and any supporting documents as per the scholarship guidelines. Initial Screening: The scholarship committee conducts an initial screening of the applications to verify eligibility and completeness. They assess whether the applicants have provided all the required information and meet the basic criteria set for the scholarship. Academic Evaluation: The academic performance of the applicants is thoroughly evaluated. The scholarship committee reviews their academic records, including grades, test scores, and previous achievements, to assess their commitment to education and potential for success in their chosen field. Financial Need Assessment: The financial need of the applicants is considered during

The Haryana Parivar Pehchan Patra (PPP) initiative aims to create a reliable database of families living in the state. It seeks to enhance the distribution of public services and welfare advantages.  Haryana Parivar Pehchan Patra, also known as Haryana PPP, enables to identify eligible families for government schemes and services. This unique family ID in Haryana ensures that the benefits of these schemes reach the intended recipients. It also enables the State government to monitor the effectiveness of their schemes in reaching the beneficiaries. The Haryana State Government is implementing an innovative programme known as Haryana Parivar Pehchan Patra Yojana or Haryana PPP Family ID. This programme aims to streamline families in Haryana across all districts and enhance citizens’ quality of life by facilitating their access to a wide range of governmental schemes and services. What is Parivar Pehchan Patra Haryana (PPP Haryana)? The Haryana government introduced the Haryana Parivar Pehchan Patra Yojana in 2019. This State government-issued identity number aims to streamline government services and welfare scheme delivery to Haryana’s residents. Under this scheme, each family in Haryana will be issued a unique Family ID card, known as the Parivar Pehchan Patra (PPP), to serve as a comprehensive identity document for accessing various government benefits and services. What Is Family ID in India? A Family ID serves as a unique identifier of a database that comprehensively outlines all the information of a citizen’s family. This card was introduced to facilitate Central and State Government bodies in automatically determining applicants’ eligibility for welfare schemes and benefits. Each family residing in a particular state will be allotted this card by the State Government. PPP Haryana: Objectives Haryana PPP aims to create a complete and trustworthy record of families living in the state. Family members can use this ID to apply for any services or schemes the state offers and are connected to PPP. This Haryana PPP database will facilitate the efficient delivery of government services and schemes by eliminating duplication, reducing administrative costs, and ensuring targeted assistance to those who need it the most. PPP Haryana: Benefits Streamlined service delivery The Haryana Parivar Pehchan Patra revolutionises the way government services and programmes are delivered by creating a comprehensive database of all families residing in Haryana. This streamlined approach ensures efficient and effective service delivery. Easy access to services With the Parivar Pehchan Patra, residents of Haryana gain easy access to a wide range of services and programmes. This unique identification card serves as proof of identity and address, making it convenient to avail of social welfare programmes, health benefits, and educational scholarships. Financial benefits Holding the Parivar Pehchan Patra comes with financial advantages. Cardholders can enjoy discounts on LPG connections and energy bills, helping to ease the burden on their household expenses. Health services The Parivar Pehchan Patra opens doors to accessible health services, including the Ayushman Bharat Yojana. Eligible families can benefit from free health insurance, ensuring their well-being without financial strain. Transparent governance By reducing data duplication and ensuring the targeted delivery of government services and programmes, the Parivar Pehchan Patra fosters transparent and effective governance. It ensures that assistance reaches the intended recipients, promoting trust and accountability in the system. How to Search for a Family ID? You can search for Family ID online by entering the Aadhaar number. Below are the steps for a family ID search by Aadhaar number: Step 1: Go to the official website of Haryana Family ID.  Step 2: Enter your Aadhaar number and click ‘Check’.  Step 3: Enter the OTP sent to the mobile number linked to the Aadhaar card and click on ‘Search’.  Your Family ID will be displayed in the search result.  Parivar Pehchan Patra Eligibility Permanent Family Any family that is currently residing in Haryana is eligible for Parivar Pehchan Patra registration. These families are allotted an 8-digit Family ID number permanently.  Temporary Family  The State Government assigns temporary Family IDs of 9 digits starting with the letter “T” to applicants who live outside Haryana but wish to apply for a state-issued service or scheme. These applicants fall under the category of temporary families. How to Apply for Parivar Pehchan Patra? While there is an online portal for Parivar Pehchan Patra Yojana, citizens cannot directly register on it. Individuals must visit the Common Service Centers, Saral Kendras or PPP operators to apply for a Parivar Pehchan Patra registration. Following this, they need to provide their family details to an operator who fills in the portal. After successful verification and approval, the operator issues a unique Family ID to the applicant. Documents Required for Parivar Pehchan Patra Aadhaar card  Voter ID card only for family members who are aged 18 years and above  Bank statement or passbook (specifying the account holder’s name)  PAN card (if applicable) BPL card (if applicable) Proof of age (Birth certificate, medical certificate, school leaving certificate or matriculation certificate)  FAQs How to delete Family ID? While it is not possible to delete the Family ID entirely, citizens can remove a member from the database by visiting the Common Service Centers, Saral Kendras or PPP operators.  How to check Family ID? To check your Family ID in Haryana, you need to visit the Haryana Parivar Pehchan Patra official website and enter your Aadhaar number. Once you validate your Aadhaar number, the screen will automatically display your Family ID. 

If a business name has been trademarked already, you will not be able to use it. Therefore, you should try to find out if the business name already exists before using it for your own venture.  A company name is the first identity of a company. Thus, it is essential to have an appropriate name for your company. The consumers or investors identify the company from its name. In India, a company owner must follow the provisions of the Companies Act, 2013 (‘Act’) and the Companies (Incorporation) Rules, 2014 (‘Rules’) before selecting the company name.  It is necessary to decide the company name before applying for company registration as the name has to be approved by the Registrar of Companies (‘ROC’). The proposed name of the company should be stated in Part-A of the registration form, i.e. SPICe+ Form. When the proposed name does not comply with the provisions of the Act and Rules, the ROC will reject the name and the registration form. Only one name can be proposed in the SPICe+ application. If the ROC rejects the proposed name, the company has to file another SPICe+ application proposing another name along with prescribed fees. Thus, while deciding on a company name, the provisions under the Act and the Rules have to be complied with to obtain approval from the ROC.  Rules for Selecting Company Name Under the Companies Act The ROC will reject a proposed name if its use by the company will constitute an offence under any law in force or is undesirable in the opinion of the Central Government. Further, a company cannot be registered with a name that contains: A word or expression that gives an impression that the company is connected with or has the patronage of the Central Government or State Government, any local authority, corporation or body constituted by the Central or State Government. Words or expressions prescribed under Rule 8B of the Incorporation Rules, which can be used after obtaining the prior approval of the Central Government. Further, an OPC should have the suffix of ‘(OPC) Private Limited’ in its name. Similarly, a private company should have the suffix of ‘Private Limited’ in its name, and a public company should have the suffix of ‘Limited’ in its name. Undesirable Names for Company Under the Incorporation Rules Rule 8A of the Rules provides that the proposed name of the company will be undesirable, and the ROC will reject the same when the proposed name: Is forbidden under Section 3 of the Emblems and Names (Prevention and Improper Use) Act, 1950, unless prior permission has been obtained under that Act.  Includes a trademark registered under the Trade Marks Act, 1999 and the Trademark Rules in the same class of services or goods in which the activity of the proposed company is being carried out unless the promoters obtain and produce the consent of the owner or applicant of the trademark registration application. Includes any word(s) that are offensive to a section of the people. It is not indicative of the company’s financial activities when its main business is leasing, financing, investments, securities, chit funds or a combination thereof. It is indicative of the financial activities, leasing, financing, investments, securities, chit funds or a combination thereof, but its main business is not related to such activities. It closely resembles the abbreviated or popular description of an existing company or LLP, either in India or incorporated outside India and reserved by such LLP or company with the ROC. Includes words representing legal persons or connotations or business constitution like  HUF, Firm, Inc., PTE, AG, etc. Contains the words ‘British India’. Implies connection or association with a consulate or embassy of a foreign government.  Implies or includes connection or association or patronage of a national hero or important personages who are occupying or occupied important positions in the government or any person held in high esteem.  Is identical to the name of a dissolved company, and two years has not elapsed from the date of such dissolution.  Is identical with the name of an LLP in liquidation or an LLP struck off up to a period of five years. Includes words such as a bank, insurance, stock exchange, asset management, venture capital, mutual fund, Nidhi, etc., unless a declaration is submitted that the requirements mandated by the respective regulator, such as RBI, IRDA, MCA, SEBI, etc. have been complied with. Includes the word ‘State’, in case it is not a government company.  Contains the name of only a country, continent, state, city such as Mysore Limited, Asia Limited, Haryana Limited, etc.  Uses descriptive names, where the proposed name merely consists of commonly used words to describe its activity.  Resembling Names of Companies Under the Incorporation Rules Is in the plural or singular of an existing company name. Uses a different spacing between letters, types and cases of letters, tenses, special characters, punctuation marks, or phonetic spellings, including misspelt words of an expression than the existing company name. Uses a domain extension such as ‘org’, ‘net’, ‘com’, ‘dot’ or host-names such as ‘www’ in an existing company name unless the existing company has provided a no-objection through a Board resolution. Changes the order of words in the existing names unless the existing company has provided a no-objection through a Board resolution. Uses a definite or indefinite article in an existing company name unless the existing company has provided a no-objection through a Board resolution.  Varies the spelling of the existing company name, including a grammatical variation. Translates or transliteration of the complete existing name in Hindi or English. Adds the name of a place to an existing company name unless the existing company has provided a no-objection through a Board resolution. Adds, modifies or deletes numerals or expressions denoting numerals in an existing name unless a no-objection by way of a Board resolution has been provided by an existing company. Tips to Select A Company Name Choose a name that is simple, catchy, easier to remember,

SBI Mini Statement is a service that is provided by SBI to its account holders to enquire about the recent debit and credit transactions that are made in the account. They can track the SBI’s last ten transactions from the savings account. There are various ways to access SBI mini-statements, i.e., through mobile applications, missed calls, SMS, and more. In order to access the mini statement, the customer needs to get his or her phone number registered with the bank. The post covers information on how to register for the State Bank Mini Statement service and the different methods for getting the mini statement. How to Get SBI Mini Statement? By giving a missed call – 9223866666   By sending the SMS – MSTMT to 9223866666  By sending a ‘Hi’ to WhatsApp number – 919022690226  By logging into the SBI Net Banking Account. By logging into SBI SBI Yono Lite App. By visiting the nearest bank ATM. Methods to Check SBI Mini Statement Individuals who have their savings account in the State Bank of India can check their mini-statements through the following methods: By sending a message to the SBI mini statement number. By dialling the SBI missed call number for mini statement. By visiting a nearby ATM. Through the State Bank of India YONO application. Through State Bank of India online banking. The table below shows the detailed methods to download State Bank mini statements: Methods to Get SBI Mini Statement Steps to Follow Through SMS Send an SMS – ‘MSTMT‘ to SBI Mini Statement number 09223866666 from your registered phone number. Following that, you will receive the SBI mini statement by SMS consisting of the last five transactions. Through the SBI missed call number for mini statement SBI Quick Missed Call service allows you to check your State Bank mini statement immediately.  Give a missed call to the SBI mini statement toll-free number 09223866666 from your registered mobile number.  Through ATM Follow these steps to generate the State Bank of India mini-statement from ATM: Go to the nearby ATM. Swipe the card into the ATM machine. Select the preferred language and choose ‘Mini Statement’ from the list of services. Enter the 4-digit ATM PIN. The ATM will print the mini statement with the latest transaction details. Through mobile application: Download the YONO SBI Lite application and follow the steps below: Log in with your user ID and password. On the homepage, click on ‘My Accounts’. Click on ‘View Account Details’. Select ‘Get SBI Mini Statement’ to check your latest transaction details. Through SBI Internet Banking Follow the steps below to download a mini statement from State Bank using online banking: Visit the SBI Internet banking official website. On the home page, choose the Personal/Corporate Banking option. To log in, enter your User ID and Password. Then, from the Account Statement menu, choose the ‘mini statement’ option to get the details of your last five transactions. Benefits of SBI Mini Statement Service Mentioned here are some of the major benefits the account holders can have by using the Stae Bank Mini Statement service: One can get a mini statement through SMS service and missed calls without the need to have an internet connection. This service can be accessed 24/7 from anywhere and at any preferred time through m-banking and online banking services. SBI account holders can get the mini statement without visiting the banking physically, thus saving time and effort. Downloading the State Bank Mini Statement is not chargeable and can be availed free of cost. FAQs How can I register for the SBI mobile banking service? To register your account for the SBI mobile banking service, you have to send an SMS to 7208933148 from your registered mobile number by typing ‘REG<SPACE>Account Number’. After registration, you can easily use all the facilities of mobile banking services. Is there any limit to checking mini statements using the YONO App in a day or a month? The SBI Yono app has not implemented any limit to check your mini statements through the app in a day or month.