8/14/2019 Finergo Episode 21 Dt 27apr09

1/1

ERGO Monday, April 27, 2009KALEIDOSCOPE04

In a small investor friend-

ly move, the Reserve Bankof India in its Annual Pol-icy Statement for 2009-

2010 has instructed banks tocalculate interest rates on

your money kept in savingsaccounts on a daily basis rath-er than the current practice ofcalculating interest on savingsbank accounts on the mini-mum balances held in the ac-counts during the period fromthe 10th day to the last day ofeach calendar month.

Benefit to you: the currentrate of interest prescribed bythe RBI is 3.5% per annum.But most of the account hol-ders rarely get to earn this in-

terest as the minimumbalance is the basis of interestcalculation. Thus for exampleeven if your account had abalance of Rs. 75,000 from10th to 29th and you withdrewRs 74,500/- on 30th and re-de-posited it on 31st, the interest

would be calculated only onRs 500. If you had not with-drawn you would have re-ceived Rs 218.75 as interestbut what you actually get isonly Rs 17.5.

Although on a broad basis,both the amounts look ridicu-lously low; considering the

current inflation and wother investments return.any interest on idle moneybonus and especially sinc

of us need to have some licash at our disposal.

Benefits to the banks:new system will initially to a higher cost of payoubanks, but on the long more and more custom

will retain money in saaccount thus reducing thependence of banks deposits.

The second benefit walso be that NRI accocould see higher inflows banks in most countrienot even give 2% interest

Why now? This decisiothe RBI has been easilycepted by banks and IBA

dian Banks Associationthe level of automation is high now and its easier toecute the calculations.

What should you do? Cbined with that fact thatcan use any banks ATMof cost, this new directivehelp you earn some moneidle cash lying at your ho

It even makes sense toposit you piggy bank mointo an SB account and keep a bare minimum in in hand.

After all better somethan nothing.

PRADEEP YUVARAJpradeep@finerva.com

EVERY DAYWILL BE

INTERESTINGRBI directs banks to calculate interest rateon a daily basis from 01 April 2010

The decision by theRBI has been easily

accepted by banks andIBA (Indian Banks

Association) as the levelof automation is very

high now and itseasier to executethe calculations.

My friends car met with an accident afew days ago. A bus rammed into the rearside of the car. He has been going to thepolice station to get an FIR so that he canclaim the damage from his insurancecompany. Is there a faster way to getthings moving?

T. Somasundaram, Vellore

Dear Somasundaram, Your friend does not need any police

FIR or complaint letter for claiming theinsurance. All that he/she needs to do is to

call up the insurance company and informabout the accident and fill up a claim formdescribing the incident. It is as simple asthat. All general insurance companies fol-low the same policy. The insurance policy

will have a call center number where youneed to inform. They will arrange for asurveyor to come and inspect the vehicle.In fact they will send the surveyor to yourgarage at their own cost. A police com-plaint or FIR is only needed if there is anythird party damage to property or life. Alsoin case there is any loss of life in the in-cident an FIR will surely be needed forclaiming both the general insurance as

well as Life insurance damages.Do you need some unbiased and

professional solutions to your personalfinance issues related problems? Ask Doctor

Finergo. Mail your queries tofinergo@goergo.in, Put subject as Doctor.

Q1: Which agency frames the Annual Pol-icy document relating to the Economy?

a.RBIb.Finance Ministryc.Economic Affairs committeed.State Bank of IndiaQ2: Which blue chip company recently

declared a 1:1 bonus?a.Wipro

b.Satyamc.Indian Oild.TCSSend your answers to finergo@goergo.in or

SMS your answers to 92813 98889. For

example if you choose A as the answer to

question 1 and B as the answer to question 2type it as 1A2B and send it. Winner will be

chosen by lucky draw from all correct

answers.Answers for last weeks mini-quiz1.9500002.National Stock Exchange

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