How to prevent identity thefy??

Get your credit report:

It is advisable to keep yourself posted about your credit history at least once in two years. Thanks to recent developments and more credit information companies entering the fray, obtaining a credit report is now simpler. You no longer have to wait until your loan request is turned down by a bank to get a copy of your credit report.

But if your application has been rejected, you can always ask the bank or the financial institution for the copy, which they have to furnish for a fee of up to Rs 50. Credit information companies like Cibil (Credit Information Bureau) and Experian issue credit reports to individuals on request directly , without the involvement of any bank. Cibil charges Rs 142 for issuing a credit report while Experian levies a fee of Rs 138.

The payment can be made either through a demand draft or via online channels . You have to submit the required documents to authenticate your identity.


Report Discrepancies:

Until a few months ago, loan-seekers who had the misfortune of seeing their loans not being sanctioned due to erroneous credit reports could do very little to reverse the wrong done to their credit records. Now, things have changed with the credit information bureaus taking an active interest in attempting to get the discrepancies corrected .

They can write to us at info@cibil .com. They need to provide a few details like the control number, name, address and nature of discrepancy.

Subsequently , we approach the lender concerned for revalidation,” explains Arun Thukral,MD, Cibil. In case of Experian , you can download the query application form from its website (experian.in) and send the completed form, along with the details and documents asked for, to the company.

“We will then liaise with the lender, who will revert with any instruction to amend the data after they have investigated the matter. Lenders have the ability to flag data they provide to us as being in dispute,” adds Phil Nolan, MD, Experian Credit Information.

However, according to the existing guidelines, changes can be effected only after the lender gets back to the credit information company with revisions , if any. “We are not authorised to change any data contained in the credit information report, and can only do so on the written instruction from the lender,” says Nolan. And the time taken by the credit granting institution to revert with changes could vary. “By April this year, the structure of our database will see some changes, wherein a provision to indicate disputed records will be enabled,” adds Cibil’s Thukral.



Launching the offensive:

Getting a clear picture of the nature of charges against you will help you strengthen your case against the erroneous entry. If alerting the lending institution through this route fails to elicit a positive response, you may have to approach them directly. Remember, touching base with the branch manager or even the customer care cell may not yield the desired results. Make sure you contact the bank’s nodal officer or the credit grantor.

Their names and contact details are mentioned on the respective banks’ websites and that of the Indian Banks’ Association (iba.org.in/nodallist.asp). If you hit a wall even here, the next step is to write to the Reserve Bank of India’s customer service department and the Banking Ombudsman.


While taking all these measures will not help you prevent a fraud, constant vigilance and knowledge about dealing with the impact of a potential scam or an error will help you contain the extent of damage.



Card tricks

While you can’t prevent scamsters from being on your trail, you should know how to deal with a sticky situation When it comes to dealing with a credit card fraud or misuse, knowledge is your best weapon of defence The affected lender is bound to report such defaults under your name.

This will create hurdles for your future loan applications Instead of running for your credit report after your loan request has been rejected, apply for one every two years You can get a copy of your credit report from credit information companies like Cibil and Experian for a fee If you spot discrepancies after scrutiny, you can alert the credit information bureau which, in turn, will inform the lender concerned If your version is found to be accurate, your records will be updated accordingly.

But, Cibil or Experian will act only on the instructions of the lender If the lending institution sticks to its stand, you can approach its nodal officer directly to make your case. If the nodal officer fails to resolve the grievance, you can approach RBI's customer service department and the Banking Ombudsman’s office

The top 10 personal finance news of 2010

The top 10 personal finance news of 2010. 2010 was indeed an eventful year from a personal finance perspective. The year had its share of controversies, forward looking policies as well ones which will pinch your pocket more in days to come.
1) ULIP makeover - The controversial spate between the IRDA and SEBI over regulatory oversight and agent commissions has made the Insurance regulator come out with a series of changes in the ULIP structure, that have been put into effect from September 1st, 2010.
2) New Income Tax slabs - In 2010 annual budget, the government has brought about relief for the common man by widening the tax slabs. Here is a look at the new income tax slabs and also 5 easy ways to calculate your tax liability.

3) Investment limit in IPO increased – Stock market has been on a high this year, with the IPO season not far behind. The big guns from the Public Sector made their presence felt in the stock markets starting with the listing of Coal India, Manganese Ore India and the Follow On Offers (FPOs) of Power Grid and SCIL. Parallel to this, SEBI’s recent directive to increase the investment limit for retail investors to Rs. 2 Lakhs (from the erstwhile Rs. 1 Lakh) and introduction of ASBA facility has attracted a lot of retail investors into the primary market. While one must appreciate SEBI for its continuing effort to encourage retail participation, IPO investing could be a risky proposition for a retail investor.

4) Section 80CCF – This financial year 2010-11, tax payers have been blessed with a new income tax deduction in the form of section 80CCF, which allows tax deduction of up to Rs 20,000 apart from the regular section 80C and the like. Who is eligible for this additional deduction? What are the investment options available? What would the returns be like and their tax implications? Check it out here.

5) Reintroduced KYC Guidelines – Beginning from 1st January, 2011, Know-Your-Customer (KYC) norms will be mandatory for all retail investors – existing and new (including NRIs and Non-Individuals), irrespective of the amount you are investing. What is KYC, how to be KYC compliant verify your KYC status online with a click of a button? Know all here.

6) BPLR to Base Rate – The Reserve Bank of India (RBI) replaced the Benchmark Prime Lending Rate (BPLR) system with the Base rate system. Under the BPLR, banks used to illogically charge their existing and new customers at different rates. Now, banks with lower base rates would be preferred by borrowers. What this means for small investors?

7) Now, invest in Silver (the electronic way) - Investing in silver electronically (through ETFs) had not been possible in India till 2010. After the success of e-Gold, National Spot Exchange Ltd (NSEL) has launched e-Silver, the second in the e-series products designed to promote savings and investment by small investors. Now, whether you are based in Mumbai or Sikkim, you can buy silver at the same price. Discover the features of investing in silver in demat form and the costs associated with it.

8) Service Tax on New Home purchase - Investments in real estate has just got more expensive! Since April 2010, an additional amount in the form of service tax is being collected from buyers on under-construction properties. So what is this service tax? And how much do the home buyers actually need to pay for? Investment Yogi explores the applicability and impact of this new tax being levied on property buyers.

9) More interest for savings account – The money lying in your Savings Bank Account will work better for you from 2010. The RBI has issued an announcement to change the terms of interest calculation for savings bank account deposits, effective April 1st 2010. The new method of calculation is a paradigm shift from the conservative method of calculation, thereby offering the depositor almost twice the amount of interest.

10) Gold prices skyrocket – Global prices of gold have been steadily going upwards since last decade. The demand seems to be growing from the fear of inflation. Should you invest in it under the current market scenario? Find out

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For all the investors and financial planners, it is very important to strike the right chord between capital maximization and taxation. Read up the judicial provision with regards to income tax calculation on short term capital gain. Check out the top stories and expert comments related to personal finance. Also amass relevant information on personal loans, retirement benefits, credit cards and more. Get your personal finance related queries solved from the 'Queries Solved' section. Also cast your vote in the Poll Pe Bol column.

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SKS to reduce interest rates to 24%

SKS Micro finance, the largest and the only listed microfinance institution (MFI) in the country, on Tuesday said it was planning to further reduce interest rates to 24 per cent in Andhra Pradesh and 18 other states.Last month, it had reduced rates from 26.69 per cent to 24.55 per cent in Andhra Pradesh, following the promulgation of the Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Ordinance 2010.
“The ordinance and its implementation will have material impact on the company’s operations in Andhra Pradesh,” SKS told the stock exchanges on Tuesday.The state accounts for 27 per cent (Rs 1,417 crore) of the company’s portfolio of Rs 5,600 crore. SKS, however, said it was not in a position to quantify the potential financial impact.The company said interest reduction would have an impact on interest income and profitability not only in Andhra Pradesh but also in other states. Its stock price on Tuesday fell by Rs 39.05 (3.91 per cent) to Rs 960.90, as against yesterday’s close of Rs 999.95.SKS said its field operations in the state had been disrupted and it was unable to hold village centre meetings in 54 per cent of the centres for the week ended October 29 “due to lack of legal and political support.”

For the week ended November 5, the company decided not to hold any centre meetings, “both due to impediments in conducting such meetings and because of two holidays during the week.”

New personal finance scheme

Various personal finance plan comes out in Market.They are:

Tata AIG General Insurance has launched new health insurance under the name ‘Wellsurance’, which is a combination of health insurance and wellness benefits to cater to different customer segments.Tata AIG has introduced products to cater to different customer segments such as wellsurance executive targeted at the young working men, wellsurance family targeting the individuals and their families and wellsurance women targeting the women, the general insurance company said here.The insurance covers health benefits like critical illnesses, surgeries, child education benefit and beyond health insurance the scheme offers free access to health helpline, a dedicated health portal and health perks.
Another personal finance plan is:
L&T Mutual Fund introduces 370 days plan
The investment objective of the scheme would be to achieve growth of capital through investments made in debt/fixed income securities maturing on or before the maturity of the scheme. The tenor of the plan is 370 days. The scheme offers growth and dividend options.The new issue opens on 16th December and closes on 21st December. The minimum investment amount is Rs5,000. Being a listed scheme, no exit load will be applicable.

Explore NPS for good returns on retirement

NEW PENSION SCHEME (NPS)
What is a NPS?
NPS is similar to Mutual funds. You keep aside some money for your retirement and this money is put into the capital market. Hence, the sum which you will get post retirement will be dependent on the performance of capital market. These are managed by fund managers.
Currently 6 fund houses appointed by the government are available under NPS. These are SBI Pension Funds Private Limited, UTI Retirement Solutions Limited, ICICI Prudential Pension Funds Management Company Limited, Religare Pension Fund Limited, IDFC Pension Funds Management Company Limited, and Kotak Mahindra Pension Fund Limited.
There are 3 schemes available under NPS which is:
Fund E: If you invest in this fund, then a portion of not more than 50% of your invested money will be put into equity. You should consider investing in this retirement plan only if your risk appetite is high as up to 50% of your money will be linked to the performance of equity.
Fund C: if you invest in this fund, then all of the money will be put into fixed income instruments like corporate bonds and government securities. You should consider investing in this fund if your risk appetite is medium as corporate bonds are not that risky.
Fund G: In this fund, all of your money will be invested in government securities. Hence, this is suited for you if you want it to be an almost risk free investment.
Personal Finance TIPS FOR EMPLOYEES
* If you are planning to save for your retirement then you should avail NPS as the fund management charges are very low which is 0.0009% compared to 1.5% – 2.5% for mutual fund or insurance products.
* Currently, NPS does not offer any tax exemptions unlike other retirement plans. It falls under the category EET (exempt-exempt-tax) system which means that maturity benefits you receive post retirement will be taxable. However, with DTC replacing the current tax code, NPS will be tax exempted upon withdrawal too. Therefore, you should avail this scheme when DTC comes into place.

Basic Tips on Personal Finance

Do you ever wonder where your money goes every month? Does it sometimes seem as though you cannot afford to do things because your financial obligations are holding you back? If you find that you are asking yourself these sorts of questions, perhaps you should take a look at your financial situation and assess whether you are practicing good personal finance management or not. Good personal finance management spends within their income, plan for the future and solve financial problems as they arise. Poor personal finance management pay more, do without and fall behind. If you find yourself in the second category, you can do something about it. You can learn to take charge of your finances by planning yourpersonal finances.

A basic personal finance tip is to make a budget. A personal finance budget is information made up of your income and expenses and the more accurate this information is, the more likely you are be able to meet your goals and realize your dreams. A personal finance budget should be made for at most one year at a time and include a list of your monthly expenses.

All expenses must be included. To be sure of that go through all your paid bills, check register and credit card receipts to find expenditures that recure every month and expenditures that happen less frequently. Personal finance budgeting requires some small sacrifices. To be able to make good personal financial decisions and set priorities, you must know where your money is actually going. Start your budget and accomplish your goals.

Make an investment and finance plan. Now that the fundamental state of your personal financial security has been established, the time has come for the more prosperous part of your personal financial life. You need to make a personal finance plan of what you really want in life that money can buy. Your personal financial plan can be as simple or as detailed as you want it to be. Find out how to finally start to implement this plan and get the money to finance it. This is the long term part of your financial. This journey is the most interesting and exciting part of personal financing you can have toward financial freedom.