Bank-o-mania 2

‘‘‘‘SHRI SARASWATI NAMAHSTUBHYAM VARADE KAAMA RUUPINI TWAAM AHAM PRAATTHANE DEEVI VIDYADAANAM CHA DEHI ME!!!’’’’

ISSUE 02 / B & I Newsletter Date: 25th Nov GREAT THOUGHTS “Character, not brain, will count at the

MEANING:

I BOW TO GODDESS SARASWATI WHO FULFILLS THE WISHES OF THE DEVOTEES. I PRAY TO YOU TO ENLIGHTEN ME WITH KNOWLEDGE.

crucial moment.” “The weak can never forgive. Forgiveness is the attribute of the strong.” -Rabindranath Tagore

NOKIA PLANS TO LAUNCH M-BANKING SERVICES Despite a tough regulatory environment for mobile banking in India, Nokia expects to soon roll out its financial and banking services in the country under the banner of 'Nokia Money'. The world's largest mobile phone company has initiated talks with six banks in India who will be responsible for cash management and handling banking regulatory issues. As per Nokia's strategy, it plans to tap its huge network of 1.9 lakh phone retailers and dealers who will act as the consumer point and banking correspondents. Nokia will offer a universal platform where the mobile phone can be a medium for banking, international remittance, payment of utility bills, pay merchants for goods and services and buying tickets.“India figures amongst the top 20 countries where we plan to roll out Nokia Money in the first phase. While at present Indian banks may have a mobile banking platform, it is limited to a single bank and telecom operator. What we plan to offer is a full-fledged service which will bring together all banks, operators and even handsets of other brands,” said Teppo Paavola, global head of Nokia Money service. Talking about the regulatory challenges in India, Mr Paavola said the key issue will be to turn the Nokia retailers into Nokia Money agent. Nokia expects its service will be a huge success in India due to its vast dealer network from where consumers can deposit money or withdraw cash. The success will lie in the fact that the service needs to work in all handsets, it should be as simple and convenient as making a voice call or sending SMS and have a very low transaction fee. Nokia expects to globally debut its first Nokia Money service early next year. “The potential is huge in India due to the high population of under-banked and unbanked people,” Mr Paavola said.

EDITORS NOTE Dear Readers, The Banking and Insurance department takes exceptional pride in presenting before you the 2nd issue of our newsletter, handy yet comprehensive ‘Bankomania’. This issue would not have been possible without the support of Principal Sir, B & I faculties, other staff of the institution and you students at large. Last but not the least it would be our constant effort and indeed our commitment to provide you quality information for your benefit. It would be a matter of profound satisfaction for us, if this issue finds a place on your shelf and in your heart.

UPCOMING EVENTS th

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SPORTS DAY - 16 and 18 Dec th

TRADITIONAL DAY - 24 Dec PAGE NO. 1

Want to find out what your bank thinks of you? CIBIL (Credit Information Bureau of India Ltd) licensed by RBI under the Credit Information Companies Regulation Act, 2005 (CICRA) has introduced a manual system to provide consumers with their own credit history on a test basis through an interim solution. In this interim solution, CIBIL will be handling consumers request for a copy of their credit information report. CIBIL is also developing the infrastructure, system and process for an automated solution that would enable an individual to directly access his credit information from CIBIL online. This automated phase is expected to be ready by the beginning of the next fiscal year. Thus, when a customer approaches any bank for credit facility, CIBIL is in a position to go through its records and provide details of the existing credit facilities enjoyed by the customer to the bank, as well as his repayment history. This enables bank to take a more informed decision on customer's credit application. This is also beneficial for the customer if he has maintained a spotless repayment history, since he will be able to get the credit facility quickly and it will be cheaper based on his good record. A large number of consumers today feel helpless about erroneous repayment history being reported by the banks to CIBIL showing consumers in default. This is true in case of credit cards. But now, since consumers can have an access to their own report, the consumers can point out any error in the report to CIBIL. The erroneous entry will have to be deleted by CIBIL unless the concerned bank reverts within 30 days of the consumer filing his error report with the bureau. If the consumer is not satisfied with the action of the bank then he can always file a grievance before the banking ombudsman. Thus, by having access to their own credit report, good consumers can ensure that they do not fall victim to erroneous reporting by the bank. For your own credit report from CIBIL, you can download the form available on the Apna Paisa website at http://www.apnapaisa.com/credit-card-india/CIBIL-credit information bureau-report-request-form.html. - Manmeet & Group T.Y.B&I

THE MYTHS AND FACTS OF MUTUAL FUNDS. THE MYTHS · Equity mutual funds (MFs) are risk-free and will do well in any kind of market scenario. · A quick entry and a quick exit is the way to go. · One should have many well performing funds. The returns will multiply. · The lower the net asset value (NAV), the cheaper and better the fund. · One should quickly buy into sector which is hot at the moment. For example, the infrastructure sector will do well in the future, so one should go into it in a big way. THE FACTS · All market-related instruments, including MFs, will carry a risk. The only advantage equity MFs have over direct investing is that the fund houses are experts in the field.

TIME Imagine there is a bank which credits your account each morning with Rs. 86,400, carries over no balance from day to day, allows you to keep no cash balance, and every evening cancels whatever part of the amount you had failed to use during the day. What would you do? Draw out every Rupee, of course! Well, everyone has such a bank. It’s name is TIME. Every morning, it credits you with 86,400 seconds. Every night, it writes off, as lost, whatever of this you have failed to invest for a good purpose. It carries no balance. It allows no overdraft. Each day, it opens a new account for you. Each night, it burns the records of the day. If you fail to use the day’s deposits, the loss is yours. There is no going back. There is no drawing against tomorrow. You must live in the present on today’s deposits. Invest it so as to get from it the utmost in health, happiness and success! The clock is running. Make the most of today.

· Have at least a three-year horizon, even more if needed. Avoid equity MFs if your span is less than this. · Keep it simple. Don't forget that MFs invest in scrips. Too many schemes of the same type may mean duplication of sectors and scrips. · It is the increase and decrease in an NAV that counts, not the NAV itself. So whether the NAV is Rs.10 or Rs.1000 doesn't really matter. What matters is how much gain or loss the scheme makes. · Various sectors behave differently. Some are less volatile and give stable, if not high, returns, while others can go up and down a lot. Go by your risk endurance. · Invest in sectors or thematic funds if you understand how they work and what their returns can be. Ideally, these should be peripheral schemes, and not at the core of your portfolio.

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GOT NO CASH FROM ATM, BUT STILL A DEBIT?

NEVER UNDERESTIMATE YOUR CLIENTS' COMPLAINT, NO MATTER HOW FUNNY IT MIGHT SEEM! This is a real story that happened between the customer of General Motors and its CustomerCare Executive. Please read on..... A complaint was received by the Pontiac Division of General Motors: 'This is the second time I have written to you, and I don't blame you for not answering me, because I sounded crazy, but it is a fact that we have a tradition in our family of ice cream for dessert after dinner each night, but the kind of ice cream varies so, every night, after we've eaten, the whole family votes on which kind of ice cream we should have and I drive down to the store to get it. It's also a fact that I recently purchased a new Pontiac and since then my trips to the store have created a problem..... You see, every time I buy a vanilla ice-cream, when I start back from the store my car won't start. If I get any other kind of ice cream, the car starts just fine. I want you to know I'm serious about this question, no matter how silly it sounds "What is there about a Pontiac that does not make it start when I get vanilla ice cream, and easy to start whenever I get any other kind?” The Pontiac President was understandably skeptical about the letter, but sent an Engineer to check it out anyway. The latter was surprised to be greeted by a successful, obviously well educated man in a fine neighborhood. He had arranged to meet the man just after dinner time, so the two hopped into the car and drove to the ice cream store. It was vanilla ice cream that night and, sure enough, after they came back to the car, it wouldn't start. The Engineer returned for three more nights. The first night, he got chocolate. The car started. The second night, he got strawberry. The car started. The third night, he ordered vanilla. The car failed to start. Now the engineer, being a logical man, refused to believe that this man's car was allergic to vanilla ice cream. He arranged, therefore, to continue his visits for as long as it took to solve the problem. And now, he began to take notes. He jotted down all sorts of data: time of day, type of gas used, time to drive back and forth etc. In a short time, he had a clue: the man took less time to buy vanilla than any other flavor. Why? The answer was in the layout of the store. Vanilla, being the most popular flavor, was in a separate case at the front of the store for quick pickup. All the other flavors were kept in the back of the store at a different counter where it took considerably longer to check out the flavor. Now, the question for the Engineer was why the car wouldn't start when it took less time. Eureka - Time was now the problem - not the vanilla ice cream!!!! The engineer quickly came up with the answer: "Vapor lock". It was happening every night; but the extra time taken to get the other flavors allowed the engine to cool down sufficiently to start. When the man got vanilla, the engine was still too hot for the vapor lock to dissipate. Even crazy looking problems are sometimes real and all problems seem to be simple only when we find the solution, with cool thinking.

One fine day, Mr. Chatterjee went to an ATM of a reputed bank to withdraw some cash. He entered an amount of Rs. 15,000 on the screen and was waiting for his money to be dispensed by the ATM. To his horror, the money never came out of the machine. He immediately checked his account balance at the same ATM and saw that the amount that was not delivered to him had been debited from the account. There are many people who face this situation. Here are few things to keep in mind: 1)

How do you complain to the bank? Complain to the branch manager of the particular bank where the account

is linked to the card or the closest bank to the ATM. The complaint should be resolved within 12 days of receiving the complaint, as per RBI circular. 2)

Who are the higher authorities you can approach? RBI and Banking Ombudsman. It can be done by writing a letter or online

via the RBI website. 3)

How do you prove that notes were not dispensed by the ATM? The number of the notes put in the ATM and the amount dispensed is

tallied at the end of the day with each ATM. Also, there are cameras that are placed in ATMs and the recordings can be checked. 4)

What if the banks do not respond within 12 days? Non-adherence to the time discipline shall attract penalties prescribed

under the Payment and Settlement Systems Act, 2007. 5)

What precautions should we take?

1)

Ask for a receipt.

2)

Details of the transaction.

3)

If not, at least note down the details manually.

4)

Incase the money has not popped out; make sure you have an eye witness

to that incident.

PLASTIC Rs.10 NOTES Soon you won't have to worry about currency notes getting soiled or soggy. RBI plans to introduce plastic Rs.10 notes worth Rs.100 crore. The polymer banker notes, with a life cycle four times that of the usual paper currency notes, would be complicated to replicate. A senior official at RBI said, “Plastic notes would last longer. They would be waterproof and, most importantly, they would be difficult to replicate. Work on plastic notes is still on and details will be announced soon”.

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DIFFICULT QUESTIONS AND INTELLIGENT ANSWERS! Question and the Answer given by Candidates. Oh sorry!! They are IAS Officers now. Q. How can you drop a raw egg onto a concrete floor without cracking it? A: Concrete floors are very hard to crack!! Q. If it took eight men, ten hours to build a wall, how long would it take four men to build it? A: No time at all. It is already built. Q. How can you lift an elephant with one hand? A: It is not a problem, since you will never find an elephant with one hand. Q. If you throw a red stone into the blue sea what will it become? A: It will get wet or will sink, as simple as that. Q. What looks like half an apple? A: The other half. Q. Bay of Bengal is in which state? A: Liquid. GOOD THINKING Interviewer said, "I shall either ask you ten easy questions or one really

SOME INTERESTING FACTS 1. Coca-Cola was originally green. 2. The names of all the continents end with the same letter that they start with. 3. You can't kill yourself by holding your breath. 4. It is impossible to lick your elbow. 5. People say "Bless you" when you sneeze because when you sneeze, your heart stops for a millisecond. 6. The "sixth sick sheikh’s sixth sheep's sick" is said to be the toughest tongue twister in the English language. 7. Honey - This is the only food that doesn't spoil. 8. A snail can sleep for three years. 9. All polar bears are left handed. 10. American Airlines saved $40,000 in 1987 by eliminating one olive from each salad served in first-class. 11. Wearing headphones for just an hour will increase the bacteria in your ear by 700 times. 12. Like fingerprints, everyone's tongue print is different.

A SMALL STORY

A boy and a girl were playing together. The boy had a collection of marbles. The girl had some sweets with her. The boy told the girl that he will give her all his marbles in exchange for her sweets. The girl agreed. The boy kept the biggest and the most beautiful marble aside and gave the rest to the girl. The girl gave him all her sweets as she had promised. That night, the girl s lept peacefully. But the boy couldn't sleep as he kept wondering if the girl had hidden some sweets from him, the way he had hidden his best marble. Moral of the story: If you don't give your hundred percent in a relationship, you'll always keep doubting if the other person has given his/her hundred percent. This is applicable for any relationship like employer-employee relationship, friendship, love etc. Give your hundred percent to everything you do and sleep peacefully.

difficult question. Think well before you make up your mind!" The boy thought for a while and said, "My choice is one really difficult question." "Well, good luck to you, you have made your own choice! Now tell me this. What comes first, Day or Night?” The boy was jolted into reality as his admission depended on his answer, but he thought for a while and said, "It's the DAY sir!" "How?" the interviewer asked.

CHIEF EDITOR: EDITING TEAM:

OUR GROUP OF EDITORS Preeti Agarwal (T.Y.B&I) / Sakina Chevelwalla (S.Y.B&I) Pooja Modi (S.Y.B&I), Harshal Gaikwad (S.Y.B&I), Ankur (F.Y.B&I), Siddharth (F.Y.B&I), Sneha B. (T.Y.B&I), Nidal Farooqui (T.Y.B&I), Darshnil Patel (T.Y.B&I).

"Sorry sir, you promised me that you will not ask me a SECOND difficult question!" He was selected for IIM!!

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