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Beware! You Could Be the Next Victim of Financial Fraud

Tue, 29 Nov 2022 03:53:25 +0000

The Buyt Desk

Online banking, UPI transactions, and quick cash withdrawals have made out financial transactions very easy. We have also gotten accustomed to this mode of financial transaction in the last few years. However, it has a dark side as well and with ease comes the danger of fraud too. Many fraudsters use the loopholes of digital transactions to scam people, and even minor negligence from the customer can cost you dearly.

Digital scams have become common these days. We list here some methods that fraudsters use to fool people. Here are a few ways that can scam you –

Phishing Or Vishing

This is one of the most common practices fraudsters use to scam people. Scammers create a website with having URL similar to the original website. It can be a bank website or any other. They distribute that link via email, SMS, instant messenger, etc. Unaware users open that link and enter their banking details, which scammers collect and use to do banking fraud. The scammers reach customers over the phone pretending to be bank officials, insurance agents, government employees, etc., and trick users to get their crucial details, like OTP, PIN, CVV number, etc. They win users’ trust by giving their details like their name and date of birth. Sometimes, they show a sense of urgency, like the user’s account, might get blocked, the government is updating KYC, etc., to fetch details.

Keep This in Mind: No authorized person from any department asks for confidential details like OTP, ATM PIN, CVV number, etc.

Collection Request Scam

In this mode of operation, scammers convince users to share their UPI details to get a refund or payment. Usually, they send their barcode to the target person’s WhatsApp number and convince them to scan the code and enter the UPI PIN to receive funds.

Keep This in Mind: You never have to enter your UPI PIN to receive funds from any source.

Loan Fraud

This is again one of the most common frauds people report. In this fraud, scammers lure lenders by giving them fake offers and promises. They show a sense of urgency and promise to process the loan in exchange for money at minimal conditions. In some cases, scammers present all identities of prominent banking and non-banking institutions that gives loan to befool people.

Keep This in Mind: Experts say one can abstain from such fraud easily by checking the credentials of the person talking, cross-checking website URLs, etc. Also, genuine lenders never take an upfront fee or advance payments to process a loan.

ATM Card Skimming/Quick Response (QR) Codes Scam

This is another tactic scammers use to bluff people. Often, they install skimming devices, such as a dummy keypad, small cameras, etc., in ATMs. When a person enters his card details, the skimming device captures detail. With stolen details, scammers create duplicate ATM cards do fraud.

Keep This in Mind: Scammers install skimming devices in unattended ATMs. These devices are easily recognizable. Whenever you use unattended ATMs, check the keypad area. Always stand in front of the ATM to avert any recording of your card and its details.

Unverified Mobile Apps

Sometimes scammers use app links to trap people. They send the link of apps and request people to install them for too-good-to-be-true offers. When a person clicks to down the app, it removes all the restrictions from the device and gives complete mobile access to scammers. Sometimes, these apps can be screen-sharing like

any desk. It gives scammers full access to the device. With that access, the scammer can do transactions on mobile without permission.

Keep This in Mind: Never click on an unauthorized link or download apps. Always check the link details before downloading it.

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What Is E-RUPI and How Will It Work?

Thu, 05 Aug 2021 07:39:47 +0000

The BuyT Desk

At the time when the government was planning to bring demonetization, it was also making the blueprint of digitalization. The intent behind the same was clear, reducing currency circulation and promoting digital payment. E-RUPI is an initiative in the same row. On 2nd August, the Prime Minister of India announced its launch.

The platform is named e-RUPI Digital platform, and it is a cashless and contactless platform for making payments digitally.

The e-RUPI digital payment platform has been developed by the National Payment Corporation Of India.

What is The Use Of E-RUPI, And How is it Different From Other Digital Payment Making Apps?

E-RUPI is a QR-Code or SMS string-based e-voucher that is redeemable. The beneficiary would be able to redeem the voucher without any application, card or internet banking. This program aims to connect service sponsors with service providers and beneficiaries. With this program exchange of money could be done without any physical interface and intermediary step. The app would be used to exchange money digitally in any part of the country. The only requirement of this application is that users must have a mobile phone to receive the e-voucher.

How would E-RUPI Transfer Money?

Various leading banks in India have been incorporated in this program, and they would assist users in transferring the amount. Just like other digital payment options, in this arrangement also, the receivers would be identified by their mobile number. The e-voucher generated by the sender could be redeemed only by the receiver. In easy terms, e-RUPI is a prepaid gift voucher used for money exchange.

In the coming time, the government will provide many of its services through e-RUPI as it is a leak-proof way to exchange money on the digital platform. The E-RUPI is a QR-Code or SMS string-based e-voucher. As of now, the government has announced that it is going to use this program supporting schemes made for drug and nutrition such as TB Eradication program, Ayushmann Bharat Pradhan Mantri Jan Arogya Yojana, mother and child welfare scheme, fertilizer subsidies, etc.

What Are The Key Benefits Of E-RUPI Digital Payment Platform?

It is a cashless and contactless payment system.
It is a leak-proof and secure payment process as it is prepaid.
It will ensure timely payment of service as it does not involve any intermediary.
The beneficiary does not have to have a digital payment app, internet banking, or card to receive the payment.
The beneficiary does not have to provide any personal details

Simple Work Process

The beneficiary receives e-RUPI QR Code or SMS.
The beneficiary presents the voucher at the service provider outlet.
The beneficiary would receive an OTP.
They would share the OTP with the service provider.
The service Provider would enter the OTP.
The payment gets transferred to the beneficiary after the service provider clicks on the proceed button.

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RBI’s New FD Rule

Wed, 07 Jul 2021 05:43:43 +0000

The Buyt Desk

You have to ensure that if your bank fixed deposit is maturing then you must inform your bank as to what would be the next step. Whether you want to continue further by extending the term of your fixed deposit or time deposit or you want to withdraw your money? The Reserve Bank of India has introduced new rules for fixed deposits and term deposits. As per RBI’s circular when your fixed deposit matures and the proceeds remain unclaimed, post-maturity the banks will credit the interest applicable to the savings bank account. The higher interest of FD/TD will be rolled back immediately after maturity.

RBI’s Circular

RBI stated- “It has been decided that if a Term Deposit (TD) matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract a rate of interest as applicable to a savings account or the contracted rate of interest on the matured TD, whichever is lower.” The new rule will be applicable to all types of banks commercial banks, small finance banks, co-operative banks and regional banks too.

What is a Fixed Deposit?

You invest in a fixed deposit for a fixed period of time. It could vary from 6 months to 1 year, 3 years or a 5-year tenure. The deposit will give you a fixed interest for the chosen tenure.RBI’s new rule will apply to all kinds of FDs such as cumulative, recurring, reinvested deposit and cash certificates as well. Even post office FD/TD will have to adhere to this new rule. Though this rule does not apply to tax saver FDs which have a tenure of 5 years.

What was the Old Rule?

The unclaimed deposits with the bank have been increasing every year and according to news reports, it stands at Rs 18,380 Crore in FY19. As per the old rules if the account holder did not renew his/her FD upon its maturity, in the event of the completion of the maturity (term) of the fixed deposit the bank used to renew it automatically for the earlier period. Due to this the bank customers also used to rest assured. But, on July 2, RBI issued a circular to change this rule. Now the customers will have to reach the bank and convey the future course of action regarding their FD/TD.

Bad News for Senior Citizen

This order of the RBI is a big blow for senior citizens. Fixed Deposit and Time deposit are their favourite tools of parking their fund. Due to COVID-19 lockdown and restriction, they are not stepping out of their homes. They were rest assured that even if they were unable to extend their FD it used to get an automatic extension. But not anymore.

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5 Financial Changes from July 2021

Fri, 02 Jul 2021 07:31:12 +0000

The BuyT Desk

From July, there will be 5 major financial related changes that you must know about. Especially if you are an account holder of State Bank of India, Syndicate Bank, Andhra Bank and Canara bank. Apart from this New TDS rules are also getting implemented from July 2021. Under the new TDS rule, you may have to pay a higher TDS if you do not file your income tax return.

Take a quick look at 5 of these changes-

1) Cap on cash withdrawal from ATM

The Basic Savings Bank Deposit (BSBD) account holders of the State Bank of India will be able to withdraw free of charge cash from the ATM only four times. After the exhaust four withdrawals, the account holder will have to pay an amount of Rs 15 plus GST for each withdrawal.

2) Limited free cost Cheque leaf by SBI

The State Bank of India account holders will be permitted only 10 free of cost cheque leaves in a financial year. If you want to use more than 10 cheques in a year then be ready to pay a charge of Rs 40 plus GST for a 10 leaf cheque book and Rs 75 plus GST for a 25 leaf cheque book.

3) Higher rate of TDS/TCS

Finance Minister Nirmala Sitharaman had announced the provision of higher TDS for non-filers of income tax. Budget 2021 made this provision through Section 206AB and 206CCA. If an individual’s TDS/TCS deduction is more than Rs 50,000 then he/she must furnish proof that they have filed their Income Tax return for the previous two years. In case they fail to prove that they have filed their return they will have to pay a higher TDS/TCS.

4) Change of IFSC Code

Syndicate bank has been merged with Canara bank. Thus if you are a Syndicate Bank’s account holder you will need to get new IFSC codes for your banking transaction.

5)New cheque books

The account holders of Andhra and Corporation Bank have to get new cheque books from their respective banks. Both Andhra Bank and Corporation Bank have been merged into Union Bank of India on 1st April 2020. The old cheque book of both the banks would be invalid from 1st July 2021.

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New Rules of National Pension System (NPS)

Sat, 26 Jun 2021 06:09:20 +0000

The Buyt Desk

To allow more flexibility to the National Pension System (NPS) there have been 3 key changes. Pension Fund Regulatory and Development Authority’s (PFRDA) new gazette notification has specified the new rules. NPS is very strict when it comes to withdrawal of money. At the time of maturity i.e when the subscriber turns 60 he/she can withdraw a lumpsum of just 60% from their accumulated corpus but with new provision in place a subscriber will be allowed to withdraw 100% of the corpus with certain conditions.

What is NPS and how does it work?

NPS is an investment cum retirement plan. You can start the investment with a monthly contribution of only Rs 1000. You will contribute to market linked pension funds and accumulate a corpus. The performance of the pension fund will add return to your deposit. Once you turn 60 years of age you can withdraw 60 % of the pension corpus and you will have to mandatorily purchase an annuity plan from the rest of the 40% of the corpus.This 60-40% rule has been relaxed by PFRDA. Let’s dive deep and look at the new rules of NPS and how it will impact the NPS investors.

Withdrawal Rules Relaxed

The NPS subscriber is now allowed to withdraw the full contribution amount in one go without diverting any part toward annuity if his/her accumulated pension corpus is equal to or less than Rs 5 lakh. Small investors with a smaller corpus i.e upto Rs 5 lakh and less are allowed to withdraw the full amount thuus giving them the option to choose to further invest it in instruments of their liking or use it as per their own situation. This increases freedom for small investors.

Entry Age Increased

The maximum entry age of NPS has been 65 but now as per the new gazette notification of PFRDA the entry age has risen to 70 years. The exit age limit has also been increased and it is now 75 years. A person upto the age of 70 years is allowed to join NPS and the final age of NPS maturityuy goes up by 5 years and will be upto 75 years.

Premature Withdrawal Limit

As per the existing rules an NPS subscriber can partially withdraw upto 25% of the corpus for specific reasons like illness, higher education of children or purchase of house. Now PFRDA increases the premature withdrawal limit to Rs 2.5 lakh which was earlier Rs 1 lakh. This increase in threshold means that the investor whose accumulated corpus is just Rs 2.5 lakh or less he/she can withdraw the entire 100% lumpsum.

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A Cheer Among Central Government Employees and Pensioners: DA and DR to Increase on 1 July 2021

Mon, 31 May 2021 05:39:24 +0000

On 1 July 2021, the Central Government employees and pensioners will welcome a significant increase in their salaries and pension. Dearness allowance (DA) for employees and dearness relief (DR) for pensioners are the components of the salary/pension that counter inflation. DA relates to the cost of living, and thus, varies depending on where the employee resides. The Government fixes the amount of DA and DR twice in a year for the periods from January to June and July to December. The Government uses the average inflation over the past 6 months to calculate DA and DR.

Because of the COVID pandemic, the last three instalments of DA i.e. January 2020, July 2020, and January 2021 have not been paid. However, the Ministry of Finance announced in March 2021 that DA and DR would be resumed from July 2021. More than 50 lakh employees and around 61 lakh pensioners will receive benefits from this announcement.

Currently, DA is 17% of the basic salary. The rate of DA is expected to increase to 28%.

Based on the inflation rate, the rise in DA is calculated. Accordingly, the rise in DA should be 3% for January 2020 to July 2020, 4% for July 2020 to January 2021, and 4% for July 2021 to December 2021. Thus, a total increment of 11% will take place in the DA amount. As a result, Central Government employees and pensioners will receive a 28% hike in DA and DR on 1 July 2021.

As per the pay matrix, the monthly salary will increase by Rs.2, 700 due to the hike in the DA.

The minimum basic salary of a Central Government employee as per the pay matrix is Rs.18, 000. The rise in DA, to be announced on 1 July 2021, will add a 15% DA component to the basic salary according to the pay matrix. Thus, DA of Rs.2, 700 will be added to the salary per month and a total DA of Rs.32, 400 per annum.
Other allowances like traveling allowance (TA) and house rent allowance (HRA) are also a part of the salary. A hike in DA translates into a hike in TA. Thus, once the DA increment is announced, there will also be a rise in the TA. The calculations of employee’s provident fund (EPF) and gratuity depend on the DA amount. As a result, an increased 28% DA will cause a rise in EPF as well as gratuity.

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Scrappage Policy 2021: What do we know about fitness tests and penalties?

Tue, 16 Feb 2021 11:13:36 +0000

The BuyT Desk

We have been hearing about the scrappage policy for some time now. Much before the time, the first draft was announced in 2019. With Finance Minister’s announcement in the budget 2021-22, the scrappage policy is formal now. Now we have to wait for the fine prints, to figure out the carrots and the sticks.

What we know about the scrappage policy right now-

Finance Minister announced a voluntary vehicle scrappage policy which included private vehicles, more than 20 years old and Commercial vehicles more than 15 years old will have to go for a fitness test.
Driving vehicles without going for the fitness test or a vehicle failing the fitness test would attract penalties.
There are many automated fitness test facilities proposed where fitness tests will be conducted.
We might see a green tax and some amount of additional road tax post the fitness test.
Customers could get incentive on their new purchases in the form of reduced road tax or registration tax.
Road Transport and Highways Minister, Nitin Gadkari assured that the details of penalties and incentives would be announced very soon.

When the scrappage policy was announced, it was said that it is going to have three main benefits because of the shift from old and polluting vehicles-

It will reduce pollution
Scrappage policy would help in reducing oil import bills and
Add employment, while setting up the scraping yard and recycling centres.

However, more evident and urgent issue it could address was a depressed car market. The industry which was struggling with low car sales from long before the corona pandemic hit it. The pandemic hit the market on various fronts, shutting the sector completely, for the first time in history. Carmakers hope that the new scrappage policy would bring back the footfall in their showrooms when consumers have to scrap their old cars. But, is it so simple and straight? Not till we get all the details on this policy.

The success of this upcoming scrappage policy would depend upon many factors-

What are the barriers for an older vehicle, increase in fitness test fees and penalty if the car fails the fitness test?
How transparent and corruption-proof the fitness test mechanism could be?
How many automated fitness test centres can be set up by the government as promised?
How are the scraping yards or recycling centres are being built, and how is the progress?
Finally, what is the incentive Indian customers get when they let their dream cars, from blood, sweat and tears, go! Don’t forget that we are the country of recycling and the land of ‘kitna-deti-hai’. We will think a hundred times before spending on a new car when the old car is still running.

According to the Federation of Automobile Dealers Associations, scrappage policy would impact approx 52 lakh passenger and 37 lakh eligible commercial vehicles. This number looks huge and the scrappage policy very important. Let’s hope that the policy implementation is seamless and brings all the positive changes we are hoping for.

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Highlights of Budget 2021

Wed, 03 Feb 2021 05:51:50 +0000

The BuyT Desk

The Union Budget 2021 has not changed the common man’s tax liability but will change many other things around him/her. Let’s take a look at how things will change-

Budget Impact On Sectors

Consumer Goods – Government has announced an Agricultural Infrastructure and Development CESS (AIDC) on petrol, diesel, gold and silver bars, alcohol, sunflower oil and crude palm oil. There will be an agricultural cess Rs 2.5per litre on petrol, Rs 4 on diesel and 100% on alcoholic beverages. The aim is to generate funds for the agriculture sector. However, to keep these consumer goods’ prices unchanged, basic excise duty and special additional excise duty have been reduced. So, no impact will be visible in the short term. Mobile phones will get costlier. The precious metals, gold and silver, will get cheaper.

Steel Industry – Government has opened the gate for steel and steel products import by reducing duty. The cheap scrap may reduce cost. The impact of this change will be visible on infrastructure and other sectors.

Healthcare – Healthcare has been the core sector which saw a massive jump in allocation. An outlay of 64,180 crores will be made towards PM Atma Nirbhar Swasth Bharat Yojna whose objective would be to ensure a network of primary, secondary and tertiary health centres. Finance Minister has doubled the spending on the healthcare sector to boost healthcare infrastructure. The government will be spending around Rs 2,23,846 crore on health and well being. A generous outlay of Rs 35,000 crore was made towards COVID19 vaccination.

Employment – The Developmental Financial Institution will aid the government to collect investments for infra projects. It will give a spending boost and create jobs. The government’s move to bolster infrastructure in all sectors like rail, solar energy, water, roads, etc. will reinforce demand and generate new jobs.

Education – Finance minister has allocated Rs 93,224 crore for education, keeping her attention more on digital education and National Education Policy 2020. Government’s aim to set a hundred new Sainik schools. This move will give a boost to the sector and will strengthen the education system.

Agriculture – Government has announced the integration of 1000 more Mandis into E-NAM market place, the development of five more fishing hubs and a seaweed park in Tamil Nadu. It has kept more focus on the strengthening of agriculture infrastructure. The project, operation green will cover 22 more perishable commodities.

Taxes – Government has not done changes in the tax slab. However, the senior citizens have received some rewards in terms of filing ITR. People above the age of 75 who get pension and earn interest from their deposits don’t have to file ITR. Though unchanged tax slab has given no immediate benefits to taxpayers, amid pandemic crises, the government has not taken anything from people’s pocket, which is plausible.

These are the beneficiary sectors of budget 2021-22. Other strong government moves are two PSU banks and one general insurance organization to be disinvested this financial year.

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5 Ways 2021 is Going to Change Your Finances

Sun, 03 Jan 2021 10:52:11 +0000

By The Buyt Desk

New year comes with new rules. There have been many changes in the way we are spending and making our purchases. Here are 5 things that will have an impact on your finances and you must know about them.

Clearance of high-value cheque

The cheque clearance system will change from the new year 2021. RBI has mandated banks to implement ‘positive pay system’ for cheque clearance. A cheque payment of the amount greater than Rs 50,000 will go through the positive pay mechanism. Apart from signing the cheque, the cheque issuer will have to send the beneficiary’s details separately to the bank. Details like the beneficiary’s name, the amount, cheque number and date of the cheque issue will have to be sent electronically to bank through SMS, mobile app, internet banking or ATM. The cheque will be cleared only after cross-checking the information, and they must match. If there is any discrepancy between the sent data and the cheque details, then payment will not be honoured. The RBI notification says that availing positive pay mechanism will be at the consumer’s discretion, but banks may consider making this mandatory for cheques valued more than Rs 5 lakh.

Contactless card transaction limit increased

The limit of contactless card transaction is raised from Rs 2000 to Rs 5000. In the ‘new normal’ era enhancement of contactless transaction is a welcome move. The consumers can make payment of up to Rs 5000 from their credit/debit cards without even punching the PIN. The chip fitted in the card identifies the radio frequency from the terminal. When the card is tapped on the card reader, the device uses NFC (near-field communication) to read the card and process the transaction.

E-mandates for Recurring transaction

The e-mandate processing limit of credit and debit cards for recurring transactions will be Rs 5000 from 1st January 2021. The consumers can give an e-mandate for credit and debit cards and do away with the two-factor authentication process for payments of up to Rs 5,000.

A simple and basic Insurance

To make insurance simple and easy to understand the Insurance Regulatory and Development Authority of India (IRDAI) has mandated the life insurance companies to bring easy to understand standard life term plans. This standard policy will be named – ‘Saral Jeevan Bima‘. The term plan will be written in simple to understand language, with similar features and standardised terms and condition. All the 24 life insurance companies have to put a common name in the prefix, i.e. Saral Jeevan Bima followed by the companies name.

Structure of multi-cap mutual fund scheme changes

Earlier the fund managers were free to decide how much of the scheme’s asset will go to large-cap, mid-cap and small-cap. It was mandatory for multi-cap funds to have a minimum of 65% of their assets invested in equities at any given time. Sebi issued new norms for multi-cap mutual fund schemes in September 2020. Now multi-cap mutual fund schemes are mandated to invest at least 25% each in large-cap, mid-cap, and small-cap stocks. SEBI also increased the minimum allocation to equities from 65% to 75%. Sebi has given fund houses time till January 2021 to comply with the new norms.

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Don’t trust your honey! Centre for Science & Environment’s (CSE) claims – ‘Made In India’ honey is loaded with ‘Chinese Sugar’

Thu, 03 Dec 2020 10:00:16 +0000

Priyanka Sambhav

If you have replaced sugar with honey in your nimbu-paani or green tea to reduce the sugar intake, then the possibility is it may have been doing just the opposite. Significant brands of honey failed a purity test conducted by the Centre for Science and Environment ( CSE). The investigation found that the ‘Made in India’ honey is adulterated with sugar syrup.

The CSE conducted the test at two levels- first one in Gujrat’s National Dairy Development boards’ lab in which all the big brands (except Apis Himalaya) passed this test barring few smaller brands. But when it came to the second round of lab test, almost all the brands big or small failed. This second round of test was Nuclear Magnetic Resonance (NMR) – a test done by specialised labs in Germany. The NMR test checks the presence of modified sugar syrups, and almost all big and small brands failed this test. Out of the 13 brands tested, only three passed the NMR test.

The CSE test finding as reported on their website are-

77 % of the samples were adulterated with the addition of sugar syrup
22 samples were tested, and just 5 cleared the test
Leading brands such as Dabur, Patanjali, Baidyanath, Zandu, Hitkari and Apis Himalaya, all failed the NMR test.
Only 3 out of the 13 brands – Saffola, Markfed Sohna and Nature’s Nectar — passed all the tests.

“It is a food fraud more nefarious and more sophisticated than what we found in our 2003 and 2006 investigations into soft drinks; more damaging to our health than perhaps anything that we have found till now – keeping in mind the fact that we are still fighting against a killer COVID-19 pandemic with our backs to the wall. This overuse of sugar in our diet will make it worse,” said Centre for Science and Environment (CSE) director general Sunita Narain , while releasing the CSE investigation into honey adulteration.

When we are gulping down dollops of honey to boost your immunity in COVID19 era, but all it has been doing is boosting your sugar levels.

“What we found was shocking,” says Amit Khurana, programme director of CSE’s Food Safety and Toxins team. “It shows how the business of adulteration has evolved so that it can pass the stipulated tests in India. Our concern is not just that the honey we eat is adulterated, but that this adulteration is difficult to catch. In fact, we have found that sugar syrups are designed so that they can go undetected.”

CSE just didn’t sample of honey for lab tests but also investigated on how Chinese companies were selling sugar syrup that can bypass Indian lab tests.

Though brands like Dabur, Patanjali and Emami(makers of Zandu Honey) have denied usage of the so-called Chinese sugar syrup.

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