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Problem of similar assets in CERSAI

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Cersai eventhough developed into Phase Two, do not address some common issues. In this post I am trying to bring into light the problem of similar assets which always pop up as an error.</div>
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A person having a very vast area under one plot/survey number may transfer parts of his property to different persons under different documents in different times. While such a transfer, the plot/survey number in all documents remains the same. He cannot change it. Only the extent, boundaries differs. The real problem arises when we enter such a property in Cersai. The present search system of CERSAI seems to corner around plot/survey number to detect multiple transactions. If CERSAI detects plot number/survey </div>
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number which is already registered with it, it throws an error. CERSAI will not see whether the subsequent transfer is of another part of property of the same survey number. Boundaries are also not made important fields in the site. So genuine transactions are also coloured as fraudulent and multiple ones by CERSAI.</div>
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However, there are certain tips and tricks to avoid the errors of CERSAI in such cases. You cannot change the survey/plot number. But you can definitely change the way of entering it.For instance 543/12 is the survey number of a plot which contains larger extent of property. The prior owner transferred a part of that property and it has already been registered with CERSAI. Later he transferred other part of the same survey number. This when going to be registered with CERSAI, change it by adding some space </div>
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before or after the oblique. Otherwise, you can write the number descriptively. For eg:sub division 12 of Survey 543. This will ensure that you can finally register the transaction. Knowing this tip is extremely important as in some cases CERSAI will ask us to delete the entire transaction and register a new one. </div>
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This problem is a big one and it needs to be addressed soon by CERSAI. It must also detect the boundaries and document number, the extent and other factors to verify if a transaction is duplicate or multiple or fraudulent one. We can hope for a better interface and data collection in the future. Till then, share your valuable views on the post. Thank you.</div>
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Problem of similar assets in CERSAI

Cersai eventhough developed into Phase Two, do not address some common issues. In this post I am trying to bring into light the problem o...

Pitfalls in Phase Two of CERSAI

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In the earlier version of CERSAI we will be getting an Asset ID which can be used in future for correction, modification and satisfaction of the loan/property transaction details.</div>
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Now in Phase Two, we should note the Security Interest ID which are given to us on successful confirmation of transaction. If we noted only the Asset ID like we used to in the Phase One, it will not be possible for us to use it for future transactions like correction, modification and satisfaction. CERSAI will give the message that such a Security Interest ID is not registered with the system.</div>
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The site only asks the Security Interest ID for correction,modification and satisfaction. There you have to give the security interest ID and not the Asset ID. If you give the Asset ID, the system will throw error messages. Any how there are certain measures which can be used to for noting the Security Interest ID:</div>
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 Make a register of your own noting the Institution, Branch, Borrower, Property details, loan details etc. There should be space for writing Queue Reference Number, Transaction Date, Security Interest ID and Asset ID.</div>
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 Note down in your register the Security Interest ID and Asset ID after successful confirmation of Queued Transaction.</div>
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 Download Challan after successful confirmation of Queued Transaction. This is a shortcut method for storing the Security Interest ID. The Challan or Security Receipt will show the Transaction Reference Number, Asset ID, Security Interest ID and other details.</div>
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Since the system of CERSAI is new and the launched website/database is still lacking perfection and may contain bugs to be fixed, a systematic approach to every finished transaction is required to prevent the pitfalls.</div>
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Pitfalls in Phase Two of CERSAI

In the earlier version of CERSAI we will be getting an Asset ID which can be used in future for correction, modification and satisfaction ...

Borrower co-owner with thirdparty-CERSAI

In CERSAI provision is made for entering the details of third party who is mortgaging the property. If you select Property owner as '...

Need for modification-Property details tab in CERSAI

Property details page can be accessed through 'Property Details' tab in CERSAI. This is the only page where you will find 'Lo...

Problem of Partnership Firm as Borrower in CERSAI

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<span style="background-color: white;">A  partnership firm may or may not have property of its own. Sometimes, the partners may have properties which may be mortgaged to the Bank for securing a loan. We are now dealing with the case of third party mortgages, ie. neither the firm nor its partners are mortgaging their respective properties or they are not having such properties to be mortgaged. So it is clear that we are dealing with a third party mortgage.</span></div>
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The anomaly can be seen when we enters details in the Borrower/s tab in CERSAI.If there is a sole borrower ie. the partnership firm the details asked by the site are as follows:</div>
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When we select 'Partnership Firm' as the 'Borrower Type' the site asks the Partnership Firm Name and Name of the authorised person/partner who is signing the papers on behalf of the firm. Here we can enter the person so authorised by the partnership deed or as mutually agreed by the partners.</div>
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The real problem comes when there are two borrowers. Say one is an individual/partner of the firm who has taken a loan on the same security property of third party. The site allows adding multiple borrowers. We selected individual first as the Borrower type. We entered details of the individual. Then for adding the partnership firm, we clicked 'Add Borrower' button and selected Partnership Firm in Borrower Type of Borrower 2. There you will find that the site is asking for the name of the partner who is mortgaging the property belonging to the Partnership firm. We will have to take this by surprise since the partnership firm is not mortgaging its property how could we enter these details.</div>
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This is a problem of the site. I hope the developers correct this thing immediately.But there is a solution for this. Whenever there are more than one borrowers and a partnership firm is one of the borrower and it is not mortgaging any of its properties, you have to add the details of firm as Borrower 1. Then go to the second borrower. If you enter the name of the partnership firm first, the site will not ask for name of the partner who mortgages the property. If you have accidentally selected individual or any other as Borrower 1 and then selected Partnership as Borrower2, then you can't revert. Even if you delete the Borrower 1, then also the site will ask Name of the partner who is mortgaging the property. So you will have to start afresh. To avoid this always care when uploading details in CERSAI with multiple borrowers and having Partnership firm as one borrower.</div>
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Problem of Partnership Firm as Borrower in CERSAI

A partnership firm may or may not have property of its own. Sometimes, the partners may have properties which may be mortgaged to the Ba...

What is new in Cersai Phase Two?

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<span style="font-family: Arial, Helvetica, sans-serif; text-align: justify;">Central Registry of Securitisation Asset Reconstruction and Security Interest of India is a company licensed to register all securitisation transactions. Phase I of Cersai has been very difficult, especially when coupled with the slow response of server. We have to navigate to every individual page without a chance of going back to the previous page. There was a time limit for the session also. If you do not enter the informations within a specified period of time, the page will stop and you will be redirected to the homepage.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">In the new Cersai We could see that there is a change in the interface.After entering the user id and password we enter the home page. In your left handside we could see the link for adding security interest.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Now we will have to choose certain Yes or No radio buttons.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">The first question is whether the security interest correspond to an immovable financial asset. The second question is whether the security interest correspond to a non-agricultural financial asset. This is a new feature which was absent in the previous version. If we enter agricultural asset, we will not be permitted to proceed further. The third question is whether the financial asset is under joint security interest or consortium agreement. After selecting all this we have to select certain details from a drop down box. This specifies the nature of the property.Seven categories are included in this. If we select plots, three check boxes viz plot number, state and pin code will appear. if we select buildings,another check box namely house number also will appear.Please note that if we do not check these boxes, the page will not proceed since these are the mandatory requirements.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Some of the new changes in the newest form of Cersai is as under:</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Addition of tabs</b></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Now there are ten tabs in the homepage of Phase II cersai while there were only eight in the old one. The new tabs are Cersai Circulars and Verify signed files. Till the time of publishing this post, there were no released circulars. In the second tab, we can browse and verify files by uploading data files and signature files.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Adding Security Interest afresh and on existing asset.</b></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">A notable development which erased many anomalies and questions associated with the old version(Phase I) is addition/creation of security interest afresh and upon an existing asset.We can choose between the two. Correction and modification is still possible.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Pages</b></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">There are seven pages in total for entering the details. These pages can be accessed through seven tabs which provides easy navigability. This feature enables us to go back to any previous page. There is no NEXT button in each page. After entering the details(either in part or full) we can move to another page by clicking the respective tabs. Thus it is more convenient now. The tabs are viz Borrower, Third Parties, Nature of Security Interest, Security Interest Holder, Property Details, Property Documents and Loans.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Increased speed and time limit</b></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">The new version of Cersai has extended time limit for entering the details. It wont expire even if you go at a slow pace. This is a new improvement. Perhaps they have upgraded their server.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Correction Indicator</b></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">If the information entered in any tab(page) is not correct or required information are not given, then the tab colour changes to red from grey. If all the information are correctly given then the tab colour changes to green from grey.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Submit Button</b></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">There will be a submit button at the end tab page. When you click the submit button you will be getting a Queue Reference Number. This is the evidence for entering the details by the maker. Now the checker has to approve this. So a message shows in this regard.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Conclusion</b></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">The very convenient improvement which I notice in the new Cersai is the possibility to move to every page by clicking the tabs. This is a great relief. Note that still it got the 'Other details' space. So you can add additional details in this space at the last tab page.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">There is still so much to be improved in the new Cersai and hence I am temporarily stopping this post. Thanks for reading. Share your comments please.</span></div>
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What is new in Cersai Phase Two?

Central Registry of Securitisation Asset Reconstruction and Security Interest of India is a company licensed to register all securitisation...

Registration of Mortgages with Cersai by Banks

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<div style="text-align: justify;">Section 20 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act(hereinafter referred as Sarfaesi Act) directs the Central Government to set up a Central Registry for the purpose of registration of every transaction of securitisation and reconstruction of financial assets and creation of security interest under the Sarfaesi Act. In plain words, every mortgage of immovable property for securing a loan is to be registered with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (hereinafter referred as CERSAI).</div><div style="text-align: justify;">As per the directive of the Sarfaesi Act, the CERSAI was set up vide Government notification and it is now located in New Delhi.</div><div style="text-align: justify;"><b><i>Registration Process.</i></b></div><div style="text-align: justify;">After every mortgage of immovable property, the details has to be registered with the CERSAI by going to the website <a href="http://www.cersai.org.in/">www.cersai.org.in</a> after remitting prescribed fees. This has to be done within thirty days of creation of mortgage by deposit of title deeds. You may need to enter the borrower's name, his details, property details, loan details, guarantor's details etc. After successfully submitting the informations you will get an Asset ID. This should be saved for future modification of transactions. The officers of the Banks need a member user identification number and password to enter the website.</div><div style="text-align: justify;"><b><i>Important Details</i></b></div><div style="text-align: justify;">PIN code or ZIP code of the domicile address of the borrower, guarantor, charge holder/bank, registry of title deeds, property etc is needed. Permanent Account Number is mandatory. In case of absence of PAN numbers, a dummy PAN number can be used. Account Number is also important. Like wise the limit of loan, survey number of property, extent, date of registration of title deed etc is important. Taluka, Tehsil, District, State etc are important. The borrowers' name is important. There are so many things which I may discuss in another post. Non-mandatory things like Date of Birth of borrower, guarantor, their phone numbers etc is also there.</div><div style="text-align: justify;"><b><i>Time limits and Fees</i></b></div><div style="text-align: justify;">The registration of every transaction of mortgage should be done within thirty days. Otherwise you will be required to pay additional fee for registration. The fee limit for loans below five lakh rupees are two hundred and fifty rupees and for limits more than five lakhs, the fee is five hundred. This is same in the case of future modification also.For condonation of delay, the fee limits are two thousand five hundred for limits below five lakh rupees and five thousand for limits above five lakh rupees.</div><div style="text-align: justify;"><b><i>Priority of Charges</i></b></div><div style="text-align: justify;">The registration in Cersai will not affect the existing charge created over the property by operation of other enactments. This is clearly stated in Section 20 of the Sarfaesi Act.</div><div style="text-align: justify;">CERSAI is going to be revamped. So things may change. I may have to put another post in that regard. Till that time, enjoy my blog. Thanks.</div></div>

Registration of Mortgages with Cersai by Banks

Section 20 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act(hereinafter referred as Sa...

Hassle-free Repayment of Educational loans

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<div style="text-align: justify;">The Indian Banks Association in consultation with the Central Government and RBI formulated new scheme for the granting of Educational Loans. Loan is a boon and a bane at the same time. It is a profit/asset in the case of bankers and a liability in the case of customers. </div><div style="text-align: justify;">Students are a fragile category when banks are considered.(at least for some banks) The risk is more. Banks tend to give loan to those students whose parents' networth are more than 5 to 10 times of the loan amount. If that criterion fits, the Banks may give loan to any students irrespective of the merit. But the new scheme provides a merit based selection for the loan eligibility. But since it is a liability upon the borrowers(both students and parents) and guarantors, the terms of repayment is the key thing which should be looked into in detail.</div><div style="text-align: justify;">Rate of Interest also to be looked into. The institution which is more suitable for the borrower has to be chosen.</div><div style="text-align: justify;">Repayment</div><div style="text-align: justify;">The repayment has to be made promptly. But if the student is unable to complete the course within the stipulated time, happy thing is that extension of time may be provided. A maximum extension up to two years will be provided. But in other cases which are beyond the control of the student, the sanctioning authority may have discretion to extend the time. Even in the case of discontinuing studies in the middle, the repayment schedule will be worked out by the Banks in consultation with the student/parent.</div></div>

Hassle-free Repayment of Educational loans

The Indian Banks Association in consultation with the Central Government and RBI formulated new scheme for the granting of Educational Loan...

IBA Caution List of Third Party Entities

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<div style="text-align: justify;">Banks and other financial institutions are approaching Frauds seriously. This post is about the role of third party entities in Frauds and importance to maintain a record of it.</div><div style="text-align: justify;">Banking is the business of taking money and lending money. Different types of customers approach regularly at the Banks for taking loans. The Banks make use of certain Third Party Entities for the purpose of their daily banking business. It mainly happens when some person approaches a Bank for a loan. For example, in case of a loan one party wants to mortgage his landed property. The Bank manager may not know the correct status of the title of the borrower. In such cases the services of a lawyer will be required to find out whether there are any legal impediments in accepting the said property as security for the advance to be granted. It must be known that the title to the property is clear. So an advocate can be said to be a third party entity. Like wise, a valuer who values the property for the purpose of determining the sanction limit of loan and for knowing the amount of security comes into the hands of Bank at the time of recovery of the loan by sale. There are other third party entities.Third Party Entities can be defined as individuals or group of individuals, </div><div style="text-align: justify;">whether incorporated or not, used by bank or its customers/agents, for their product/service/expertise, based on which these entities sell products/provide services/give opinions/certify the accuracy of statements/valuation of assets/ownership of assets, etc. The Bank takes a decision based on the documents /opinion/certification given by these entities and enters into a financial transaction with the customer. The transaction could be related to any service the bank provides to its customers. When any problem occurs it will adversely affect the Bank's business. </div><div style="text-align: justify;">Reserve Bank of India conducted an analysis about the frauds committed by such third party entities for their own selfish purposes thereby putting the Bank's stand in stake. The analysis revealed that there is an increasing trend of fraud being committed in this area especially those pertaining to retail loans such as housing </div><div style="text-align: justify;">loans, commodity financing against warehouse receipts, loans for purchase of agricultural implements from dealers, vehicle loans and credit card cases. The main role of third parties such as builders, warehouse/cold storage owners, tractor/car dealers, travel agents etc is found out. Similarly, advice given by professionals like </div><div style="text-align: justify;">Chartered Accountants, Valuers, Architects, Advocates etc seem to have impact on the fraud cases. They tend to collude with the fraudsters by giving fake/questionable certificates.</div><div style="text-align: justify;">Reserve Bank of India has now asked banks to build up an internal database on such third parties in a systematic manner and resort to mutual exchange of data on an ongoing basis. But the Banks should first know whether there is any role of such third party entities in the fraud committed. Then the Banks should prepare a Caution List of these entities involved in fraud cases. A centralised database of all such entities is </div><div style="text-align: justify;">maintained with full details like name of agency, names of partner/proprietor/directors, registration number if applicable, address and Permanent Account Number.</div><div style="text-align: justify;">If any third party entity is found engaged in any case of fraud of a particular Bank, that Bank can upload that information which will be a caution for other Banks for not using their services.</div></div>

IBA Caution List of Third Party Entities

Banks and other financial institutions are approaching Frauds seriously. This post is about the role of third party entities in Frauds and ...

Formalities for granting educational loan by Banks

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<div style="text-align: justify;">As per the new scheme developed by the Banks, the formalities for taking an educational loan is as under:</div><div style="text-align: justify;">The scheme applies only to Indian nationals. The parents should be joint borrowers to the loan. </div><div style="text-align: justify;"><i>Guarantee</i></div><div style="text-align: justify;">If the net worth of the parents do not meet the respective security quantum prescribed by each bank (for eg.3 times or 5 times of loan amount), third party guarantee may be required. However, banks can always waive it in their discretion. In case of married woman student, personal guarantee of husband may be taken. If either or both parents are not alive, then personal guarantee of other persons will be required.</div><div style="text-align: justify;"><i>Execution of documents</i></div><div style="text-align: justify;">The student as well as parents should execute the documents as joint borrowers.</div><div style="text-align: justify;"><i>Security</i></div><div style="text-align: justify;">The loan has to be secured by personal guarantee. Other than the guarantee, it has to be secured by immovable properties like land and building. Other securities like government securities, public sector bonds, national savings certificate, insurance policies, gold, shares, mutual funds, bank deposits etc can also be accepted.</div><div style="text-align: justify;">If the property is already encumbered with some other loans, charge may be accepted to the unencumbered portion. The future income of the student will be assigned towards the repayment of the loan.</div><div style="text-align: justify;">There will be processing charges also depending upon the quantum and place of study. Certificate for solvency of sponsor may also be granted in eligible cases.</div><div style="text-align: justify;">The Banks may not insist 'No dues' Certificate from the borrowers. In the alternative you may be required to give an affidavit/declaration regarding your liabilities.</div></div>

Formalities for granting educational loan by Banks

As per the new scheme developed by the Banks, the formalities for taking an educational loan is as under: The scheme applies only to Indian...

Settlement of Death Claims by Banks

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<div style="text-align: justify;">This post is meant to help those who are having an account with the Banks. This post will generally explain how most of the Banks; either Public or Private, are settling Death Claims.</div><div style="text-align: justify;">First we will see what a Death Claim is. In simple words, claiming money/amount in an account by the legal heirs of the deceased account holder is a Death Claim. The account holder may hold different types of accounts. The nature, amount, operational condition, etc may vary. Banks follow almost similar method in settling the claim application submitted by the claimants. According to the nature and other things, certain requirements will vary.</div><div style="text-align: justify;"><i>When a claim application will arise</i></div><div style="text-align: justify;">A Claim Application will rise when there is no nomination registered with the account. If the nomination is registered in the account, the amount after the death of the account holder will go to the nominee as per the procedure. So if there is no nomination the claim will be settled as per the guidelines followed by each Banks as per the general procedure as follows:</div><div style="text-align: justify;"><b><i>Claim Application</i></b></div><div style="text-align: justify;">First of all the Bank will require the Claimant/s to file an application to get the amount in the account of the deceased account holder to them. There will be prescribed formats for each Banks. The form will include space for entering the name of the deceased, full address of the deceased, date of death, place of death, proof of death, names of the claimants, their age, relationship with the deceased account holder etc.</div><div style="text-align: justify;"><b><i>Declarations or affidavits</i></b></div><div style="text-align: justify;">The application will have to be accompanied by declarations by two or more independent persons who know the deceased person and not related with him or the claimants. The declaration form will include spaces for entering the name and full address of the deceased persons, names of the claimants, their ages, etc. The declaration will add trustworthiness to the claim preferred by the applicants. However the declarants have to be respectable persons known to the Bank and are worthy of the claim amount. They may need to have sufficient account balance with the bank or have net worth either equal to the claim amount or higher than the claim amount and should have recent transactions. The account must be running.</div><div style="text-align: justify;"><b><i>Proof of Death</i></b></div><div style="text-align: justify;">The proof of Death is to be provided by the applicants along with the claim application. Documentary evidence need to be given by the claimants in proof of the death of the account holder.The Death Certificate has to be obtained from the Registrar of Births and Deaths. Even if the Bank has direct knowledge of the death of the customer, the provision is mandatory.</div><div style="text-align: justify;"><b><i>Receipt, Indemnity Bond and Affidavit</i></b></div><div style="text-align: justify;">The Bank should obtain a signed receipt from the claimants while disbursing the amount. Indemnity Bond in stamp paper properly notarised is also needed. An affidavit declaring that the claimants are the only legal heirs of the deceased also may be required.</div></div>

Settlement of Death Claims by Banks

This post is meant to help those who are having an account with the Banks. This post will generally explain how most of the Banks; either P...

What are the courses eligible for education bank loan?

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<div style="text-align: justify;">The Government of India in consultation with Reserve Bank of India and Indian Bank's Association has framed new Educational Loan Scheme to ensure better treatment of loan applicants who want to pursue higher studies both in India and abroad. The aim is to provide affordable terms and conditions while taking loan.</div><div style="text-align: justify;">The courses eligible under the loan are mentioned below:</div><div style="text-align: justify;"><i>The courses in India are,</i></div><div style="text-align: justify;">i) Graduation courses like Bachelor of Arts, Bachelor of Commerce Bachelor of Science, etc.</div><div style="text-align: justify;">ii) Post Graduation courses like Masters Degree & Ph.D.</div><div style="text-align: justify;">iii) Professional Courses like Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc.</div><div style="text-align: justify;">iv) ICWA, CA, CFA, etc.</div><div style="text-align: justify;">v) Courses conducted by IIT, IIM, IISC, XLRI, NIFT, etc.</div><div style="text-align: justify;">vi) Courses offered in India by reputed foreign universities</div><div style="text-align: justify;">vii) Evening Courses of approved institutes.</div><div style="text-align: justify;">viii) Other courses conducted by colleges, universities, approved by UGC, Govt./AICTE, AIBMS/ICMR etc. leading to diploma/degree.</div><div style="text-align: justify;">ix) Courses offered by National Institutes and other reputed private Institutions.</div><div style="text-align: justify;">x) Regular Degree and Diploma courses like aeronautical, pilot training, shipping et cetera approved by Director General of Civil Aviation / Shipping</div><div style="text-align: justify;">xi) Teacher Training Course / Nursing Course / B.Ed where the training institutions are approved either by Central or State Government and leading to Degree or Diploma.</div><div style="text-align: justify;">xii) The Aircraft Maintenance Engineering/ Pre Sea training courses are eligible for the loan only if it is either a Degree Course recognized by a competent University or Diploma Course recognized by appropriate State Body.</div><div style="text-align: justify;"><i>Studies Abroad</i></div><div style="text-align: justify;">i.Job oriented professional and technical graduation courses offered by reputed universities.</div><div style="text-align: justify;">ii.Post Graduation courses like MCA, MBA, MS etc.</div><div style="text-align: justify;">iii.Courses conducted by CIMA – London, CPA in USA etc</div><div style="text-align: justify;">iv.Regular Degree and Diploma courses like aeronautical, pilot training, shipping et cetera recognized by the competent local aviation / shipping authority.</div></div>

What are the courses eligible for education bank loan?

The Government of India in consultation with Reserve Bank of India and Indian Bank's Association has framed new Educational Loan Scheme...

Educational loans to reach out for your goal

<div dir="ltr" style="text-align: left;" trbidi="on"><div style="text-align: justify;">Nowadays education has become hitech and every meritorious student can pursue his dream of higher education in India and abroad with the help of Banks who is on the verge of liberalising the norms for the grant of educational loans. As Indian Banks Association took the initiative for a better treatment of the students seeking higher education, things may go easier now. They have devised a new scheme for educational loan.</div><div style="text-align: justify;">The new scheme envisages merit as the sole criteria. Management quota seats will be out of the purview of the scheme.There will be consensus between quantum of loan and employment potential of the studies.The term also will be extended providing a sigh of relief for the borrowers.</div><div style="text-align: justify;">The policy promises to be a relief in the times of cost of education touching whopping heights. The main change is the assessment of loan. It will be based on the future earning capacity of the student and not the wealth of the parent.</div><div style="text-align: justify;">The policy is meant for Indian nationals. The student should have passed some merit selection test. In certain cases banks can also look the employability and reputation of the institution.</div><div style="text-align: justify;">Mainly the scheme targets job-oriented courses in technical and professional fields. Fees, caution deposits, transportation charges, amount required for purchase of study materials etc will be the key things in the loan. The parents will have to become joint borrowers. There is an incentive for girl students. Anyhow the interest portion is left with the individual banks. It is linked to the base rates.</div></div>

Educational loans to reach out for your goal

Nowadays education has become hitech and every meritorious student can pursue his dream of higher education in India and abroad with the hel...

Non-Resident Borrower Housing Loan Repayment

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<div style="text-align: justify;">Reserve Bank of India notified very helpful measure in the matter of repayment of loans taken by Non-Resident Indians.The notification was meant to all the Banks authorised to deal in Foreign Exchange.The notification empowers residents to repay the loan taken by theirs close relative non-resident Indians. However the facility is only extended to the Housing Loans.</div><div style="text-align: justify;">RBI had already notified Foreign Exchange Management Act provisions in 2000 wherein housing loan provided to a non-resident Indian or a person of Indian origin resident outside India by an authorised dealer or a housing finance institution in India approved by the National Housing Bank for acquisition of a residential accommodation in India, may be repaid by any relative of the borrower in India. The amount can be repaid by crediting the borrower's loan account through the Bank account of such relative. A relative has the same meaning in Section 6 and Schedule IA of Companies Act, 1956. The relatives enlisted in these provisions will be coming under this notification.</div><div style="text-align: justify;">The directions are issued by RBI under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.</div></div>

Non-Resident Borrower Housing Loan Repayment

Reserve Bank of India notified very helpful measure in the matter of repayment of loans taken by Non-Resident Indians.The notification was ...

RBI hikes Policy Rates-Inflation Control

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<div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;">Inflation is continuing to show its dark faces. Reserve Bank of India again hiked its Repo Rate which now stands at 8.25%. Repo Rate is the rate in which bank's borrow money from RBI. Hence a hike in this rate will definitely affect the Banks.However experts are of the view that the hike will not affect the business of Banks. Most of the Banks stated that they will not increase the lending rates. But there is always a possibility of hike in interest rates for advances by Banks which will affect the people. Loans will become costlier.RBI is of the view that inflation figure is a big matter of concern and that a rate hike was always in the picture. The rate hike was on the basis of current macroeconomic assessment. The previous rate was 8% and this change is made with immediate effect. Department of Communication of RBI said in a Press Release on 16.09.2011. Crude oil prices remaining high, food inflation etc are key factors.</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;">Finance Minister said in a press meeting that the rate hike by RBI will hopefully help the measures to bring down inflation. Inflation has almost touched double digit. Wholesale Price Index is 9.8 as on August 2011. Although India's exports have sustained several setbacks in Global economy in the present times, it is very difficult to continue as the Global scenario has worsened much more.</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;">RBI is confident that the present hike will contain inflation as it has done in the past.</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;">The present rates of RBI are as follows:</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;">Repo Rate - 8.25%</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;">Reverse Repo Rate-7.25%</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;">Bank Rate-6%</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;">Cash Reserve Ratio-6%</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;">Statutory Liquidity Ratio-24%</span></div></div>

RBI hikes Policy Rates-Inflation Control

Inflation is continuing to show its dark faces. Reserve Bank of India again hiked its Repo Rate which now stands at 8.25%. Repo Rate is the...

IFRS India Some Facts

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<div style="text-align: justify;">The implementation of International Financial Reporting Standards(IFRS) has been deferred by the Government of India. </div><div style="text-align: justify;">First of all take a quick look about the IFRS.</div><div style="text-align: justify;">A committee named International Accounting Standards Committee was founded in 1973 in London which developed the International Accounting Standards. Later in 2001, the International Accounting Standards Board was formed as a successor to the International Accounting Standards Committee. This Board was responsible for developing International Financial Reporting Standards(IFRS) and to promote its use and application. The IFRS are certain standards based on some principles.</div><div style="text-align: justify;">The IFRS provides a global set up for preparing and disclosing of financial statements of companies. The IFRS will help large companies which have many subsidiaries in different countries in the world. A unique set of standard can be followed by these companies to report their finances. So this is a set of accounting </div><div style="text-align: justify;">standards which is to be followed globally.</div><div style="text-align: justify;">The main aim or benefit of IFRS is the convergence of accounting standards. This will help the potential investors to invest at a lower cost. Different accounting standars will only make it difficult for the investors to compare the different financial results of different companies. If we follow IFRS the difficulty will be removed. So it is all about eliminating the differences between national and international standards and adopting a unique standard for financial reporting. This will be of great help for multinational companies.</div><div style="text-align: justify;">Most economies are now following the historical cost accounting system. The Ministry of Finance(MoF) in India has taken a view that the companies should continue to follow the historical accounting practices for taxation purpose. Historical cost is the original monetary value of an economic item as on the date of its acquisition. It may not generally reflect the current market valuation. But the use of fair market value is the more accepted principle and IFRS is based on the same. The MoF in India thinks that there will be some play by the industries in fixing the fair value which will lead to a loss in revenues for the government.</div><div style="text-align: justify;">However India had agreed to implement IFRS in three phases. Th first phase will cover 30 Sensex and 50 Nifty companies with a net over 1000 crore. But most of the countries like US and Japan are still to make IFRS mandatory. </div><div style="text-align: justify;">A unique standard for financial reporting is necessary. A good understanding by investors globally is a necessity for any company.</div></div>

IFRS India Some Facts

The implementation of International Financial Reporting Standards(IFRS) has been deferred by the Government of India. First of all take a ...

IRDA Distance Marketing Impact Part IV

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The Insurance Regulatory and Development Authority has framed certain regulations regarding distance marketing of Insurance Products. The regulations are meant to be followed by various agencies and persons who are carrying out the distant mode of insurance business.<br />
The guidelines are meant to be followed at all the stages of business viz offer, negotiation and conclusion of sale of policy. The guidelines will come to use whenever a policy is marketed via distance marketing which includes lead generation, solicitation etc. Any request by clients for information or sale of insurance products will also come under its purview.<br />
The regulation tells the need of training the telecallers and telemarketers for a good and smooth functioning of insurance business through distant mode. The regulation mandates the use of standardized script while using the distance marketing technique.<br />
Following the guidelines will definitely allow the insurers to know the customer better and the need of persons in various strata. This will benefit the business and policy formation in the future. The process will further ensure transparency. The same will attract more people to the business of insurance. The insurance sector has been more heightened to the level of service by laying down these guidelines. But the public comments is yet to come. Hope IRDA sticks to its policy of healthy and orderly growth of insurance sector.<br />
Read the other three related posts also:<br />
Part I : <b><a href="http://ifinancier.blogspot.com/2011/04/irda-regulation-distance-marketing.html"><span class="Apple-style-span" style="color: #6aa84f;">Important Terms</span></a></b><br />
Part II: <b><a href="http://ifinancier.blogspot.com/2011/04/irda-distance-marketing-duties-part-ii.html"><span class="Apple-style-span" style="color: #6aa84f;">Duties and Liabilities</span></a></b><br />
Part III: <b><a href="http://ifinancier.blogspot.com/2011/04/standardized-script-distance-marketing.html"><span class="Apple-style-span" style="color: #6aa84f;">Standardized Script</span></a></b><br />
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IRDA Distance Marketing Impact Part IV

The Insurance Regulatory and Development Authority has framed certain regulations regarding distance marketing of Insurance Products. The r...

Standardized script Distance Marketing IRDA Part III

<div dir="ltr" style="text-align: left;" trbidi="on">In the process of selling insurance products through distance marketing, various methods are used. Television, E-mail, postal mail, Telephone etc. The process of distance marketing is the indirect method ie apart from the 'in-person' direct market techniques. Read also the related stories of this post Part I, II and IV by going to the links shown below.<br />
This post discusses the specific norms created by the regulation of IRDA in collection of details of clients inorder to ascertain the intention in purchasing the insurance product and the inducement of the client to purchase the product etc. The process is to be carried out with the help of standardized scripts.<br />
The standardized script shall be prepared by the insurers or brokers who presents the benefits, features etc of the insurance products to the clients. Every solicitation and lead generation of insurance in distant mode shall be in line with the standardized script.<br />
<b><i>What things are required in a standardized script?</i></b><br />
The script shall contain the important features of the product and it must get the approval of compliance officers of the insurer and within 15 days of the said approval it shall be filed with the IRDA.<br />
It shall cover the specific response of the client relating to name of the product, nature of the product and its parameters. The script shall also contain the response of the client in the scope of the insurance coverage, its full features, deductibles, discounts and premiums, warranties, clauses etc.<br />
Thus the whole process is a very disciplined and smoother inorder to make the distance marketing convenient both to the insurer and the insured.<br />
Read also Related Post:<b><span class="Apple-style-span" style="color: #6aa84f;"> <a href="http://ifinancier.blogspot.com/2011/04/irda-regulation-distance-marketing.html"><span class="Apple-style-span" style="color: #6aa84f;">IRDA Part I-Important Terms</span></a></span></b><br />
<b><a href="http://ifinancier.blogspot.com/2011/04/irda-distance-marketing-duties-part-ii.html"><span class="Apple-style-span" style="color: #6aa84f;">IRDA Part II-Duties of Various Agencies</span></a></b><br />
<b><a href="http://ifinancier.blogspot.com/2011/04/irda-distance-marketing-impact-part-iv.html"><span class="Apple-style-span" style="color: #6aa84f;">IRDA Part III-Distance Marketing Regulation Impact</span></a></b></div>

Standardized script Distance Marketing IRDA Part III

In the process of selling insurance products through distance marketing, various methods are used. Television, E-mail, postal mail, Telephon...

IRDA Distance Marketing Duties Part II

<div dir="ltr" style="text-align: left;" trbidi="on">If you have read the first part of the IRDA Regulations defining certain important terms(link below) contained in the Regulations relating to Distance Marketing of Insurance Products, you can read this post which describes the various duties, liabilities and functions of different persons and agencies engaged in Distance Marketing of Insurance Products.<br />
<div style="text-align: justify;"><b><i>What are the Duties of Telemarketer as per the Regulations?</i></b></div><div style="text-align: justify;">The Telemarketer has to maintain every recordings of calls until the same is transferred to the insurer. It shall preserve the records of tele callers and authorised verifiers. The Telemarketer shall only employ those persons who are permitted for soliciting and concluding the sale of insurance products in distance mode.</div><div style="text-align: justify;"><b><i>What are the Duties of Telecaller?</i></b></div><div style="text-align: justify;">The tele caller shall ascertain the interest of the client in the process. The name of the caller should be disclosed. The telecaller has also the duty to inform the client that the voice copy of the recording of solicitation is available for him upon his request.</div><div style="text-align: justify;"><b><i>What are the Duties or Liabilities of Authorised Verifiers?</i></b></div><div style="text-align: justify;">The authorised verifiers cannot solicit insurance in their individual capacity. The authorised verifier must try to know the client's interest in continuing with the process. The process may only be continued upon the consent of the client.</div><div style="text-align: justify;"><b><i>What are the Duties of Insurers?</i></b></div><div style="text-align: justify;">The insurers shall not pay any remuneration other that brokerage to the brokers on the solicited or sold policies using distance mode. It is the duty of every insurer to obtain all the records pertaining to insurance policies procured by distance mode by identifying the same. The insurer has to preserve a voice copy of the entire process in an easily retrievable form for a period of six months beyond the policy term or until settlement of claim.</div><div style="text-align: justify;"><i><b>What are the Duties of Insurance Brokers?</b></i></div><div style="text-align: justify;">The insurance broker has to suggest the best option which is perfect for the needs of the client.</div><div style="text-align: justify;"><b><i>Common Duties</i></b></div><div style="text-align: justify;">The insurers, brokers and corporate agents shall maintain the register containing every identification details and documents of person whom are employed by them for lead generation, solicitation etc. Insurers and brokers will have to prepare standardized scripts for presentation of products. The communication shall give information about the insurer and the purpose. The telecaller, authrized verifier etc have to give the identification information to the client also for future verification purposes. The insurers and brokers shall monitor the calls live.</div><div style="text-align: justify;">Read also Related Post: <b><a href="http://ifinancier.blogspot.com/2011/04/irda-regulation-distance-marketing.html"><span class="Apple-style-span" style="color: #6aa84f;">Important Terms in Distance Marketing Regulations IRDA Part I</span></a></b><br />
Read also Related Post: <b><a href="http://ifinancier.blogspot.com/2011/04/standardized-script-distance-marketing.html"><span class="Apple-style-span" style="color: #6aa84f;">Standardized Script in Distance Marketing Part III</span></a></b><br />
Read also Related Post<b>: <a href="http://ifinancier.blogspot.com/2011/04/irda-distance-marketing-impact-part-iv.html"><span class="Apple-style-span" style="color: #6aa84f;">Distance Marketing Impact Part IV</span></a></b></div></div>

IRDA Distance Marketing Duties Part II

If you have read the first part of the IRDA Regulations defining certain important terms(link below) contained in the Regulations relating t...

IRDA Regulation Distance Marketing Terms Part I

<div dir="ltr" style="text-align: left;" trbidi="on">This post will enlist the most important terms in Insurance Regulatory Authority of India's latest regulation about Distance Marketing.<br />
<div style="text-align: justify;">The Insurance Regulatory and Development Authority of India(hereinafter referred as IRDA) has exercised the powers under Section 14(1) of the IRDA Act, 1999 and issued some guidelines on 5/04/2011 about Distance Marketing of Insurance Products.</div><div style="text-align: justify;">Now we should understand certain terms first.</div><div style="text-align: justify;"><b><i>Distance Marketing</i></b></div><div style="text-align: justify;">This is the soliciting and selling of insurance products through telephone-calls, short messaging service, e-mails, interactive television, postal, news papers, magazine inserts etc. So this is the type of marketing technique which is indirect.</div><div style="text-align: justify;"><b><i>Tele Marketer and Tele Caller</i></b></div><div style="text-align: justify;">These are the persons engaged in Distance Marketing. Tele caller interacts with the clients over distance mode upon the instructions of a Tele marketer. “Telemarketer” as per The  Telecom Commercial Communications Customer Preference Regulations, 2010  means a person or legal entity engaged in the activity of transmission of commercial communications. Every Telemarketer has to register with the Telecom Regulatory Authority of India as per the above Telecom Communications Regulations.</div><div style="text-align: justify;"><b><i>Authorised Verifier</i></b></div><div style="text-align: justify;">He is a person employed by the Tele Marketer for soliciting or selling insurance products over telephonic mode.</div><div style="text-align: justify;"><b><i>Lead Generation</i></b></div><div style="text-align: justify;">This is the process of collection of details of the prospect client and includes all activities which leads to solicitation of insurance products. This is done to know the interest of the client in purchasing the policy.</div><div style="text-align: justify;"><i><b>Solicitation</b></i></div><div style="text-align: justify;">This is the process of approaching a client by the insurer/intermediary in order to persuade him to purchase a policy.<br />
Read also Related Post: <b><a href="http://ifinancier.blogspot.com/2011/04/irda-distance-marketing-duties-part-ii.html"><span class="Apple-style-span" style="color: #6aa84f;">IRDA Distance Marketing Duties of Various Agencies Part II</span></a></b><br />
Read also Related Post: <b><span class="Apple-style-span" style="color: #6aa84f;"><a href="http://ifinancier.blogspot.com/2011/04/standardized-script-distance-marketing.html">Standardized Script in Distance Marketing IRDA Part III</a> </span></b><br />
Read also Related Post: <b><a href="http://ifinancier.blogspot.com/2011/04/irda-distance-marketing-impact-part-iv.html"><span class="Apple-style-span" style="color: #6aa84f;">Distance Marketing Impact Part IV</span></a></b></div></div>

IRDA Regulation Distance Marketing Terms Part I

This post will enlist the most important terms in Insurance Regulatory Authority of India's latest regulation about Distance Marketing. ...