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Know all about Senior Citizen’s Deposit Scheme: An healthy way to invest you life earning for secure return

Know all about Senior Citizen's Deposit Scheme

As per Government of India notification dated 12.12.2019, this scheme is called as Senior Citizens’ Saving Scheme, 2019. Senior Citizen’s Deposit Scheme, 2019 is a Central Government Scheme for Senior Citizens for better returns.

All the nationalized banks, private Banks (Only HDFC, ICICI and Axis) and Post Offices are authorized to open account under this Scheme.

Eligibility:

1. An Individual who has attained the age of 60 years and above on the date of opening of the account. (Except NRIs and HUFs).
2. An Individual who has attained the age of 55 years or more but less than sixty years, and who has retired on superannuation or otherwise on the date of opening of an account under this Scheme, subject to the condition that the account is opened by such individual within one month of the date of the receipt of retirement benefits and proof of date of disbursal of such retirement benefit(s) along with a certificate from the employer indicating details of retirement on superannuation or otherwise, retirement benefits, (“Retirement benefits”: means any payment due to the depositor on account of retirement gratuity, commutation, leave encashment, group linked insurance, Ex-gratia payment and provident fund)employment held and period of such employment with the employer, is attached with the application form.
3. The age limit for Retired Defence Personnel (Excluding civil defence) retired on superannuation, are eligible at the age of 50yrs. (as per GSR 1235 (E) Dt. 3 Oct 2017)
4. The Account can be opened in individual capacity or a jointly with spouse of the senior citizen/ Retiree.
5. In case of Joint account, the age of the first account holder shall be considered to determine the eligibility to open the account and there shall be no age limit for the second applicant.

Monetary Limits:

The individual may open one or more accounts in multiples of Rs.1000/-. • Subject to a maximum of Rs.30 Lac including all the investments made by the customer in various accounts. There shall be only one deposit in the account.

Both the spouse can open single account and joint account with each other with the maximum deposit of up to thirty lakhs rupee in each account provided both are individually eligible to open the account.

The whole amount of deposit in the Joint account shall be attributable to first account holder only.

  Duration:

  The deposits are for a period of 5 years. The same can be extended once for a further period of 3 years by the depositor.
Extension of an account shall be available only once. Rate of Interest: As declared by the Central Government from time to time and which is payable from the date of deposit to 31st march/30th June//30th September/31st December on first working day of April/July/October/January, as the case may be, in the first instance and thereafter interest shall be payable on first working day of April/July/October/January.
Loan Facility: Not available
Nomination:
.       The depositor may nominate a person or more than one person at the time of opening the account or any time before the closure of the account.
  The nomination can be varied/cancelled by submitting fresh nomination form.
  In case of joint account, the nominee’s claim will arise only after the death of both the account holders.

Transfer of Account:
The account can be transferred to other branches/banks/post offices. The depositor must apply in the prescribed format FORM G.

Tax Benefits:
Qualify for tax rebate under sec 80 C of Income Tax Act. Interest earned is fully taxable. TDS is applicable.
Passbook:
A passbook will be issued to every depositor.
Closure of the Account:
The account will be closed after five years unless extended by the depositor. FORM 3 is used for closure of the account. Premature closure of the account is permitted, the account holder may withdraw the deposit and close the account at any time on an application in Form-2 subject to following condition namely: - 1. In case the account is closed before one year after the date of opening of account, interest paid on the deposit in the account shall be recovered from the deposit and the balance shall be paid to the account holder. 2. In case the account is closed after the expiry of one year but before the expiry of two years from the date of its opening, an amount equal to one and a half percent of deposit shall be deducted and balance should be paid to account holder. 3. In case the account is closed after the expiry of two year from the date of its opening, an amount equal to one percent of deposit shall be deducted and balance should be paid to account holder. 4. If the depositor is availing the facility of extension of account, then he/she can close the account after one year from the date of extension without any deduction. 5. In case of death of the depositor before maturity the account will be closed, and deposit will be refunded to nominee/legal heir. 6. In case of a joint account, or where the spouse is the sole nominee, the spouse may continue the account on the same terms and conditions as specified under this Scheme, if the spouse meets eligibility conditions under the Scheme on the date of death of the account holder.

https://youtu.be/dWZVdT6PGIc

Finances statement analysis | Balance Sheet Analysis

https://youtu.be/dWZVdT6PGIc

SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises".(SMILE)

Friends, As you know during the lock down due to COVID-19 pandemic, our Honorable Prime Minister Shri Narendra Modi has given a slogan i.e. Vocal for Local and given his focus to make India self reliant.

To achieve the self reliant, the country should focus in Make In India. Unless and until our production/manufacturing power increases, we can't be self reliant.

There are many people in our country who are having knowledge and new ideas and wish to start their own business but due to lack of financial support restrict them for doing so.

Here I came with a new scheme of Government of India which is promoted by the SIDBI( Small Industrial Development Bank of India).

The name of the scheme is "SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises".(SMILE).

The objective of the Scheme is to provide soft loan, in the nature of quasi-equity and term loan on relatively soft terms to MSMEs to meet the required debt-equity ratio for establishment of an MSME as also for pursuing opportunities for growth for existing MSMEs.

Emphasis will be on covering new enterprises in the manufacturing as well as services sector.The emphasis will however, be on financing smaller enterprises within MSME
Existing enterprises undertaking expansion, to take advantage of new emerging opportunities, as also undertaking modernization, technology up gradation or other projects for growing their business will also be covered
Minimum Loan Size - ₹ 10 lakh for Equipment Finance & Others : ₹ 25 lakh.

The loan will be repayable in 10 years including moratorium period of 36 months.

The minimum contribution of the promoters must be 15% subject to maximum DER( Debt Equity Ratio)3:1.

No collateral is required up to loan of Rs.2 cr and the loan must be covered under CGTMSE( Credit Guarantee Fund Trust for MSE).

The will be first charge over all the assets created under the project. The personal guarantee of all the promoters are required.

You can download the application form from the website of SIDBI.

CREDIT GUARANTEE SCHEME FOR SUBORDINATE DEBT (CGSSD)

Ministry of Micro, Small and Medium Enterprises, has framed a Scheme for the purpose of providing guarantees in respect of credit facilities extended by eligible and registered scheduled commercial banks to borrowers in Micro, Small and Medium Enterprises (MSMEs). The scheme will be operationalized through a special window created for this purpose under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

Details of the scheme are as under: The Scheme is named as ‘Distressed Assets Fund - Subordinate Debt for Stressed MSMEs’ and the credit product for which guarantee would be provided under the Scheme shall be named as ‘Credit Guarantee Scheme for Subordinate Debt (CGSSD)’(hereinafter referred as the ‘Scheme’)

Purpose of the Scheme: To provide guarantee coverage for the CGSSD to provide Sub-Debt support in respect of restructuring of MSMEs. 90% guarantee coverage would come from scheme/ Trust and remaining 10% from the concerned promoter(s). The objective of the scheme is to provide personal loan through banks to the promoters of stressed MSMEs for infusion as equity / quasi equity in the business eligible for restructuring, as per RBI guidelines for restructuring of stressed MSME advances.

The Scheme is applicable for those MSMEs whose accounts have been standard as on 31.03.2018 and have been in regular operations, either as standard accounts, or as NPA accounts during financial year 2018-19 and financial year 2019-20.

Fraud/ Willful defaulter accounts will not be considered under the proposed scheme. Personal loan will be provided to the promoters of the MSME units. The MSME itself may be Proprietorship, Partnership, Private Limited Company or registered company etc. iv. The Scheme is valid for MSME units which are stressed, viz. SMA-2 and NPA accounts as on 30.04.2020 who are eligible for restructuring as per RBI guidelines on the books of the Lending institutions.

Loan Amount eligible under the Guarantee Coverage The guarantee coverage will be provided to the eligible borrower for the credit facilities extended under this scheme. Under this arrangement, promoter(s) of the MSME unit will be given credit equal to 15 % of his/her stake (equity plus debt) or Rs 75 lakh whichever is lower.

The financial assistance provided as part of the scheme is to be operated as a separate loan account and the promoter need to infuse the sub-debt / loan amount as promoter’s contribution in the form of equity (including sub-debt or quasi equity) into MSME entity.

Any guarantee approved under this scheme shall be over and above the existing loan / guarantee sanctioned by the trust (over and above the eligible limit of Rs.200 lakh). In case a borrower has existing limits with more than one lender, the CGSSD can be availed by the borrower through one lender only. A declaration from the borrower regarding its other banking arrangements and that it has not availed funding under the scheme from the other lenders to be obtained by the lending MLI.

Post-restructuring, NPA classification of these accounts shall be as per the extant IRAC norms.

The tenor of sub-debt facility provided under CGSSD shall be as per the repayment schedule defined by the lender, subject to a maximum tenor of 10 years from the guarantee availment date or September 30, 2021 whichever is earlier.

The maximum tenor for repayment will be 10 years. There will be a moratorium of 7 years (maximum) on the payment of principal. Till the 7th year, only interest will be paid.

The sub-debt facility so sanctioned by MLIs will have 2nd charge of the assets financed under existing facilities for the entire tenor of the sub-debt facility. Guarantee Fee i. 1.50% per annum on the guaranteed amount on outstanding basis. Guarantee fee may be borne by the borrowers as per the arrangements between the borrower and the MLIs.

Extent of the Guarantee Coverage - 90% guarantee coverage would come from scheme/ Trust and remaining 10% from concerned promoter(s) on the credit extended by MLIs under the scheme.

Get benefit of Resolution Framework 2.0- Resolution of stress in COVID 19 in Individual and other Small Businesses

Get benefit of Resolution Framework 2.0- Resolution of stress in COVID 19 in Individual and other Small Businesses.

Get benefit of Resolution Framework 2.0- Resolution of stress in MSMEs in COVID-19

RBI issued Resolution Framework 2.0 for MSMEs who are facing stress in COVID-19. watch the video for full details.

https://youtu.be/hMONh51vSUg

Why is it better to issue a passbook to a savings bank account holder

Saving Bank accounts meant for saving purpose or to do the personal transaction through this account. The Bank provides interest on the sum kept in saving account. Further in Saving account we need to keep a minimum balance except in few variant of saving account. We do very few transactions in saving account and to keep the records ,Bank issue a Passbook to saving Bank account holder.

After the digitalization of Banking services and launching of UPI and payment apps, most of the transactions are being done using these apps and the number of transactions have been increased.

The Banks are providing digital passbook that can be used through mobile banking app of the concerned bank.

In the other hand, the current accounts holders are being issued with Statement. Since the current account is meant for business transaction , the number of transactions are more. Monthly statement is being issued at free of cost in current account.