RBI to now open up UPI for digital wallets like Paytm and MobiKwik

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Apr 082017

RBI to now open up UPI for digital wallets like Paytm and MobiKwik

The RBI has announced a policy to integrate the digital wallets like Paytm and MobiKwik in the UPI payment system and make them inter-operable. This step will end the dependency of each platform and will allow users to make cashless transactions across several digital wallets, conveniently. The UPI framework opening will allow the wallet users to accept money from Paytm to their PhonePe account or send money from MobiKwik to Paytm, directly. This will expand more scope for the general masses to involve in more digital payment systems and bring a less-cash economy in the country. After the demonetization policy of the Modi Govt. in the November, 2016, Indian masses are getting used to these digital wallets and are using them for their daily transactions, regularly. So integration of all the wallets will help the peers to get more involved.

RBI to now open up UPI for digital wallets like Paytm and MobiKwik

Unified Payment Interface for digital wallets

The UPI transaction system has been widely used for money transfer from one bank account to other, with the help of a smart phone. Almost all nationalized banks have their own UPI apps for their valued customers which will help them in making digital transactions. One can make direct payments to merchants or pay utility bills. One can make direct bank transfers through the UPI payment system. Now, integration of the digital wallets like Paytm, MobiKwik, PhonePe, FreeCharge, etc. in this network will boost up business for both the wallet companies as well as help govt. in achieving more digital transactions among masses. At present, the digital wallets can only use the UPI system via a partner bank but does not have direct access to the system.

 Granting permissions of inter-operability to the digital wallets

The RBI is chalking up the working plan under which it will provide inter-operability to all the major digital wallets operating in India. This means, the wallets will tend to become platform independent and users of one digital wallet can transact with another user of separate digital wallet. This inter-operability will be achieved through the UPI payments procedure. As per internal reports, the RBI will grant the permissions for the digital wallets to join the inter-operable UPI platform, within the next 2 – 3 months. The move will be highly beneficial to all the digital wallet operators also as they will be able to grow their business more easily. Below are some of the steps which will be taken by RBI in the upcoming months to bring the digital wallets under the UPI umbrella:

  • Necessary guidelines will be issued by the RBI for all the wallet agencies operating within India for the inter-operability in the UPI framework. The digital wallets must follow those guidelines to become members of this big change.
  • Guidelines on the KYC documents for the digital wallets’ users will be issued shortly. As the UPI transactions involve direct bank to bank transaction, so KYC documentation is must. Till now, the digital wallet companies did not pushed for KYC documents from customers. Now, it will be mandatory for each company to get details of each and every customer by collecting and verifying their identity proof, address proof, etc.
  • There should be some interchange fees which will be applied on the wallets for opening up the inter-operability on the UPI framework. This interchange fees will be soon decided by the RBI and those wallet agencies who will take part in this system must adhere by these regulations.

Why inter-operability will be beneficial for the wallet operators?

This will be a great chance to open up for all the digital wallet agencies and shed down their platform dependency. The wallet companies have already shown their keen interest and welcomed the RBI’s initiative to allow the digital wallets to operate on the UPI network. This will be a win-win situation for all the wallet companies as they will not need to register both the customers as well as merchants under their platform. The inter-operability will definitely result in expansion of market and the wide promotion of digital payment ecosystem.

Collaboration of banks and wallets to stay

As the recent RBI move will make the wallets more independent, but this will not mean that the bank wallet relation will end up easily. The dependency of the wallets on the collaborated banks will surely reduce but will not terminate entirely. This is because, the movement of the money will still continue through the partnered banks. Also for other aspects like grievance redressal, settlements, reconciliation activities, the digital wallet agencies will need the help of the banks. Alternatively, the banks also need these wallets for getting more customers under their digital payments radar as these wallets have strong innovative technical teams which will be needed to making the system more stable. Several researched show that more transactions were recorded in digital wallets, compared to the UPI apps of banks. So the idea of collaborating the digital wallets with the UPI system will be a great initiative to achieve a less-cash economy.

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 Blog  Comments Off on PPF Vs ELSS
Nov 132016

PPF or ELSS! Which is best to invest in order to save taxes? 

India, where people are supposed to pay taxes a lot. Especially when it comes to Income tax, which is often referred as the tax which is collected by the government on basis of individual’s income amount, well there are relaxations from paying taxes from certain types of incomes. On accounting that employees across the nation urges to invest their hard earned money in order to skip paying taxes.

elss vs ppf

Annual Income Percentage of Tax should Pay
Annual Income up to Rs.2.5 Lakh No Tax for the Income
Annual Income above 2.5 Lakh Should pay 10% of their income as tax amount
Annual Income for the next 5 Lakh from the fixed limit of 2.5 Lakh Should pay 20% of their income as tax amount from the base limit of 2.5 Lakh
Annual Income beyond the 5 Lakh limit after the base of 2.5 lakhs 30% of their income earned beyond the 5 Lakh from the base limit of 2.5 Lakh

Ways to save Taxes

Investment experts across the nation suggest two main ways by which individuals can save their income amount from paying taxes to the government. According to the Indian section 80C investing in Equity Linked Savings Scheme (ELSS) and Public Provident Fund (PPF) are eligible for tax relaxations.

For the retired person who doesn’t want to take any kind of risk when it comes to investments activities then preferring PPF (Public Provident Fund) would be the best and apt option to move.

What is PPF?

Well PPF is well known as Public Provident Fund which can able to be referred as the savings and also the effective tax saving methodology in country like India. The PPF is introduced by the ministry of Finance in 1968, which is fully supported by the central government of India in order to conduct small savings among the employees with guaranteed returns along the benefits of tax relaxations in the name of Income tax.

Investment procedure followed in PPF (Public Provident Fund)

  • According the terms and conditions, each and every citizens of Indian are eligible for opening a Public Provident Fund account, and able to invest on their own interest.
  • In order enjoy the various benefits offered by PPF organization, investors from India should invest minimum amount of Rs.500 (yearly deposit) for availing valid PPF account.
  • Also investors from India are allowed to invest the maximum amount of Rs. 1.5 lakhs in their own self PPF account on every financial year.
  • According to the new rule which is amended few years ago, each and every PPF account holder must include guardian details for their PPF account. For new registers, guardian details are mandatory to be mentioned.

What is ELSS?

ELSS known as Equity Linked Savings Scheme is a type of investment where investors can invest their money with the lock period of 3 years. Also this type of investment option would enable investors to avail various tax benefits. For individuals who are about to invest up to 1 lakh is eligible to avail tax benefits.

Protocols to be considered while investing in ELSS:

In order to avail effective financial planning from incomes in the name of ELSS (Equity Linked Savings Scheme) individuals must consider the factors like Investors Age, Income amount, Financial Goal and Risk Appetite involved.

If the investor well aware of the handling those factors the verdict of ELSS mutual funds would offers more benefits apart from tax relaxations under the Indian penal section 80C.

Which is favorite for Availing tax Relaxation PPF/ELSS?

  • Well ELSS as early mentioned it’s fully loaded with risk as the investment would be done mostly in stocks, however, being a mutual fund scheme with the fixed lock in period. Investors would surely improve their wealth by investing in ELSS with the fixed lock in period.
  • On the other hand the PPF is the government supported firm which has zero percent risk factor in it. However, the interest rates which are offered under the scheme would various on basis of certain fixed time period. But the PPF scheme would ensure on lending the interest to its investors.


For retired person or any individual who doesn’t want to take any risk when it comes to investment then opting for PPF would be the right option. However, for employees with having more working years can opt to ELSS mode of investment as it provides more benefits in terms of finance.

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The amazing ways in which you can save tax legally

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Oct 152016

The amazing ways in which you can save tax legally

After the budget has been released a large number of people are wondering whether they shall be able to save any amount of money or not after clearing the different taxes implied on them. This article is going to offer certain tricks and tips that will be really effective in saving a considerable amount from the tax burdens. Check out the following tips to know the ways in which you can save your hard earned money.

  1. Remember that your taxable income is not the same as your income

We know that your employer are all aware about your complete salary and calculates the tax deduction according to that. But you can easily disclose details for any other taxable incomes like bank interests. This shall not be included while the calculation of your income and a certain amount of money shall be saved. Also you can opt for the tax benefits like tax exemptions within HRA.

  1. Use tax benefits for boosting your salary

It does not matter if it is your first job or the last, but the income tax that is deducted from monthly salary definitely hurts. Now, you can make use of the CTC components and different tax breaks. We know that everyone wants to live in their own house, but remember that if you have to make rental payment, then it shall offer you the “House rent Allowance” which is extremely beneficial in saving a good amount. Apart from that, you can also opt for the travelling allowances, education allowances and transport allowances.

  1. Make your savings work

To make the most of your savings, opt for the tax breaks. Within section 80C, there is a limitation of Rs 1.5 Lakh for investments. The New Pension Scheme is also a good choice in the present market which offers a good amount and monthly pension. This is going to be a fixed income for your future. A tax free interest is available if you can make a certain contribution to PPF.

  1. The home advantages

Home loan is the best option if you have a long time of work ahead of you. With the longer loan tenure, you shall have lower monthly EMI, but on a higher interest outgo. A deduction on housing loan shall be available within section 80EE. It is cheaper to book apartments which are still under construction and the total interest during pre0delivery is deducted within five installments.

  1. Group medical insurance

It is a fact that with the increase in hospitalization cost, you shall definitely need a medical insurance policy which would cover your family needs. The premium that is being paid by your employer for you and your family is completely tax free. And if you make a claim within this policy cover, the money that will be received is also tax free.

A tabular view of different tips to save money

SL NO Tips features
1. The taxable income is not same as your income Disclose the bank interests which shall not be included within your income calculation. This will save you a good amount of money.


2. Tax benefits The CTC components can be used and other allowances like House rent, educational and travelling allowances are good ways for saving taxes.
3. Make savings Check the new pension schemes; look for the contribution on PPF which offers a tax free interest of 8.7%.
4. Home loan advantages With longer tenure you shall have a lower EMI, on higher interest outgo. Also deductions are available on housing loans.
5. Group Medical insurance Opt for the medical insurance policies that cover family needs. Premiums paid by your employer shall save you a lot of money.

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PPF Account Form H (Extend PPF Account Form)

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Sep 302016

PPF Account Form H (Extend PPF Account Form)

If you are an earning person and if you are worried about your future, you must have thought of saving money. There are literally hundreds of investment options out there in market. From insurance to mutual funds, from share trading to government scheme – choices are so many that you will literally feel lost.

You aren’t alone in this cobweb. Every single person who thinks of investment, goes through this problem. So, how do you cope with it? You start with the safest option you have. PPF is the safest investment arena because it is government-backed.

So, if we are advising you on investing in PPF, there must be some solid reason for the same. Don’t you want to know? Yes, of course you do! We will skip the details of PPF because this article has a different purpose altogether. We will just give you a surface-touch view of PPF benefits and then you can Google for more details if you want to. But we are pretty sure that you already know about PPF. Consider this quick brush up as a refresher course for yourself.

So, what are the benefits of PPF which compels us to advise you for PPF investment? Here they are:

  • PPF is a government scheme. It was launched by central government of India. This means that PPF is immune to bankruptcy.
  • PPF allows loans. Don’t you take loans? How about loans at just 2% yearly interest? We have your attention right? Yes, PPF allows loan against standing balance at only 2% yearly interest. We are damn sure, no other financial organization in India can beat this rate.
  • PPF has provisions for premature withdrawal (though partial). This helps to deal with sudden financial cramps you can often experience in your balance sheet.
  • PPF follow EET rule of taxation. This stands for Exempt-Exempt-Taxed. What does that mean? It means that what you invest is not taxed. What you earn is not taxed. When you withdraw, you will be taxed. That is actually TDS or tax deduction at source.
  • PPF allows extension after maturity in 5-year blocks. No further investments are required but interest earnings continue.
  • PPF account cannot be liquidated by third party organizations (such as banks or other financial organizations). Even the court has no authority to pass a liquidation mandate on PPF account. Only government holds the right to do so to grab unpaid taxes or under other circumstances as deemed fit by the government. This however doesn’t happen unless you have tons of pending tax payments.
  • A yearly minimum of 500 rupees of deposit as mandated by PPF guidelines makes PPF a very easy-maintenance investment.

Now that we have covered some of the most vital benefits of PPF, we need to divert our attention to the actual topic of this article. So, what is this PPF Form H? This form is connected to one of the benefits mentioned above. Can you guess?

Well, we will spare you the trouble. This form is related to extension of PPF account post maturity. So, let us take a look at Form H.

All About PPF Form H

Let us lay down the ground works for elaborating on the Form H of PPF. We mentioned in one of benefits above that PPF account can be extended for a period of 5 years. Let us give you an example.

Let us assume that you opened your PPF account on 1st April, 2001. The account matured after completing 15 years of tenure. So, the account matured on 31st March, 2016. Now you want to keep the account instead of withdrawing the entire amount. In such a case, the following things can happen:

  • You can extend your account till 31st March, 2021.
  • You will not be allowed to make any further investments in the account.
  • Whatever money is present in the account will continue to earn interest.

Let us fast forward and assume that today is 31st March, 2021. Today you decide that you want to extend your PPF account again. In such case:

  • You can extend the account till 31st March, 2026.
  • Again, no further investments will be allowed.
  • Interest earning will continue.

You can do this as many times as you want. Just remember that:

  • Every time you decide to extend your account, your account gets locked for 5 years.
  • During these 5 years of extension, you cannot withdraw any funds. Not even partial withdrawal.
  • The account can be extended only in 5-year blocks – no less no more.
  • For further extension, you will have to make fresh application using Form H.

Hopefully we have explained properly how extension of PPF account works. Now, let us take a look at the Form H itself. As we said, this form is specifically designed for extension of PPF account. No other form can be used. But, what’s there in the form?

As a matter of fact, Form H is the easiest or simplest of all PPF forms.  There are only a few elements that you need to take care of. Let us take a look at each of the elements of the form in details.

You can download SBI PPF Form H from this link .

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 Blog  Comments Off on PPF Account Form G (DECEASED CLAIM)
Sep 162016


A person investing money in some financial product has, almost always, one of the following reasons in mind:

  • Financial security of the loved ones in case of his or her death.
  • His or her own financial security during the silver years, i.e. during the retirement days.
  • Tax savings.

While tax savings is always a reason, the other base reason can be either financial security of the loved ones or the person’s own financial security post retirement or both. Whatever the case be, there is one thing that everyone should remember while investing:

“Death is the ultimate truth of life. Everyone dies sooner or later. A person making an investment for his or her own financial security might not eventually be able to enjoy the fruits because of  sudden and unfortunate death.”

What happens to the money in such a situation? There are two things that can happen:

  • Either the money is lost and no one gets it. It is taken by the financial institution where the money has been deposited.
  • Or, a war of ownership begins between legal heirs. In this case, things can get a bit messy – you know very well what we mean! Don’t you?

The PPF account investments are not shielded against these problems and hence, it is always wise to keep nominee so that all the messy battles of ownership are avoided. However sometimes, people do not appoint nominees and in such situations a legal heir has to claim the fund by furnishing proper documents. If proper nominee(s) are there claiming the money becomes simple.

Either way, in the unfortunate case of the death of the PPF subscriber, one has to fill up the Form G in order to be able to claim and withdraw the funds. Filling up this form is mandatory and without this – whether a claimant is a nominee or a legal heir – the bank or the post office will not release the funds.

So, it is time that we take a close look at PPF Form G and learn all about this form in details so that if you are trying to claim the PPF funds of a deceased, you will know what exactly you need to do while filling up this form.

All about PPF Form G

Before we start discussing about PPF Form G in details, we need to mention that we will be creating four different tables in this section comes with three different annexures which are required for legal heirs in case of absence of a proper nominee. So, the first table will focus on the actual form while the remaining three will focus on the annexures. So, let us begin:

You can download SBI PPF Form H from this link and Post office from this link

Actual PPF Form G
Form G elements Explanations for each element
Declaration This is the segment where the claimant(s) need(s) to declare the relationship with the deceased subscriber of the PPF account. Also the PPF account number has to be provided along with the declaration. This is mandatory. In absence of the PPF account number, nothing can be done and bank or the post office is not obligated to pay any money to  anyone claiming the funds.
Enclosed section This is a section where several documents are to be enclosed along with the form. Remember that not all of the mentioned documents will be required. What is required depends on the relationship of the claimant with the deceased person. Let us take a look at what has to be enclosed:
1. Death certificate of the deceased subscriber.
2. If any of the nominees appointed by the deceased subscriber is also dead, a death certificate for that dead nominee is to be provided too. If there is no dead nominee, this one is not required.
3. A succession certificated issued by the High Court is to be provided by the claimant in case the deceased subscriber has left no nominee. If there is/are nominee(s), this too is not required.
4. The passbook of the PPF account of the deceased person is to be provided.
5. If there is no nominee but a legal heir is claiming the money, a letter of indemnity is to be provided. This letter will not be required if there is a proper nomination.
6. A proper affidavit is to be provided by the legal heir claiming the money. This too is not required if there is a proper nomination.
7. An affidavit disclaimer letter must also be provided by the legal heir claiming the fund. In case of proper nomination, such a letter will not be necessary.
Date and Place The applicant (nominee or a legal heir) has to provide the date and place. The place refers to the city or state where the funds are being claimed and the date is the day on which the claim is being made.
Signature The person claiming the fund needs to provide his or her signature or in case the person doesn’t know how to read or write, he or she can provide a thumb impression. In case of multiple nominees or claimants,  signatures or thumb impressions of all of them will be required.
Section for bank branch or post office use In this section the bank branch or the post office will declare that a settlement amount (which is full and final) of certain amount against PPF account number (as provided by the applicant) has been made though a demand draft or bank cheque (DD or bank cheque number is to be provided) on the given date in favor of  the bank (name of the bank). This section is to be used by the bank or post office only.
Date and signature of the service manager or the bank branch manager is to be provided too.
A money receipt The claimant has to provide a money receipt to the bank or the post office. This section is also included in the form and the bank or the post office will be retaining it.
This section mentions the amount that has been received by the claimant from the bank branch (name or the bank branch is to be mentioned). This is also a declaration that full and final settlement has been made.
A rupee 1/- revenue stamp is to affixed in the provided place. This stamp is to be carried by the claimant or perhaps it can be provided by the bank or the post office.
Date and signature(s) of the nominees or the claimant(s) is to be provided to.

Now that’s the whole of PPF Form G. There is nothing else in the actual form. However, there are several annexures as mentioned earlier. These annexures are mentioned in tables below:

Annexure I – Indemnity Letter
What is indemnity letter? It is a letter guaranteeing that contractual povisions have been fully made. If it is found that some of the provisions have not been met, financial reparations will take place.
Elements of the letter Explanation
Declaration In case the claimant is not an appointed nominee but just a legal heir, he or she or they has/have to provide this letter declaring that the bank/post office is paying him/her/them (names are to be provided) the standing amount in the PPF account (the account no. has to be mentioned) even though a proper letter proving the legal succession or administration has not been offered by the claimant(s).
The claimant(s) also need to declare (providing their names) that if there are any legal consequences and that the bank or the post office has to bear any financial burden because of paying out the money, the claimant(s) will be responsible for paying back that money to the bank/post office.
The final declaration is that the claimant(s) declare to have put their hands at the money of the deceased subscriber on the date (date has to be mentioned discreetly) of a given month and a year.
Counter signed by Surety A surety is a person who takes the responsibility of the action of another person. Two sureties are to provide their details (name and address) as well as their signatures.
Counter signed by witness Two witnesses are to provide their details (names and address) along with their signatures.
Notary signature and attestation A notary has to attest the letter and has to provide a seal/stamp and his or her signature.


Annexure II – Affidavit
What is an affidavit? An affidavit is a written statement which is considered as an affirmation or an oath and can be used in court.
Elements of affidavit Necessary explantion
Declaration 1. The claimant(s) need to declare themselves as husband or wife or son or daughter of whoever (their respective spouses and parents) along with the residential address
2. The declaration should mention that the claimant(s) are the only legal heirs of the deceased person (subscriber) whose name is to be provided and that the claimant(s) are the only representatives of the estate left by the deceased subscriber.
3. The deceased person (name of the subscriber is to be provided) did not leave behind any will and that the claimant(s) are the only successors who are left.
4. There is a section where all the claimant(s) need to provide their names and their signatures. The signatures are to be provided above the word ‘Deponents’. Deponents means the people who are providing the affidavit.
Verification section This is the section where the deponents need to declare that the information provided in the affidavit are true to the best of their knowledge and that it contains no fabricated information or no material information has been deliberately fabricated. In this declaration the name of the place where this affidavit is being created and signed is to be provided.
Also, the names of each individual deponent and their signatures are to be provided. The signatures are to be provided right above the word ‘Deponents’.
The date on which the verification is given is to be provided as well.
Attestation This is the section where an oath commissioner has to attest the affidavit with his/her seal and signature.


Annexure III – Disclaimer Letter on Affidavit
This letter is to be provided by the spouse(s) or child(ren) of the claimant(s) who claim the PPF fund of the deceased subscriber. In short, it is a declaration that the spouse(s) or child(ren) of the claimant(s) are relinquishing their rights on the money
Elements Explanation
Declaration by spouse(s) The spouse(s) of the claimant(s) need(s) to provide name or their names along with full residential address.
Declaration by child(ren) The child(ren) of the claimant(s) need(s) to provide name or their names along with full residential address.
Affirmation A solemn affirmation that the person or the subscriber (name is to be provided) died on (date is to be provided) and that they (spouse(s) or child(ren)) are relinquishing their rights to the claimant(s) for the balance of rupees (the rupee amount is to be mentioned) once that amount has been realized from a demand draft or check (the DD or bank check number is to be provided) that was issued on (date of the issuance of the DD or bank check is to be provided). Further it has to be declared that the spouse(s) or child(ren) have no objection in the bank or the post office issuing the money in the PPF account (account number is to be provided) to their spouse(s) or parent(s).
Name of the people providing this disclaimer letter is to be provided along with their signatures right above the word ‘Deponent(s)’.
Verification section This letter of disclaimer is also an affidavit and hence the verification section is mandatory wherein the spouse(s) or child(ren) of the claimant(s) are required to mention that the information they have provided is not fabricated and that they have not concealed any information whatsoever. They need to provide their names and their signatures. The signatures are to be provided above the word ‘Deponent(s)’.
The date for this declaration is also to be provided.
Attestation This is the section where an oath commissioner has to attest the affidavit with his/her seal and signature. The date must also be provided.

That concludes everything about Form G of PPF Account and all its annexures. In case you have any question or concern, feel free to drop us a comment and we will revert back to you as soon as possible.

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