Inquisitive Gallivanter

Monday, 9 October 2017

CRACKED, !! How to save money in india !!

How to save money in india !! CRACKED,

Experts write billion words about investment. But it's surprising that how little's written on how to save money. People save money in India naturally. But how to save money consistently year after year? Saving money is an art. Saving and investment of money is required for long term wealth creation.

Second Step is to budget all expenses. Recall all expense that you made in last one year. It should cover all expenses starting from utility bills, cooking gas, groceries, vegetables, vehicle fuel, house rent, EMI etc. Expense that we fail to budget are vehicle insurance premiums, emergency funds, unplanned purchases, property tax, miscellaneous expenses, vehicle maintenance, gym, dining out, prepaid mobile recharge, etc. The point I am trying to emphasize is, our list of expenses shall be exhaustive. Once we have identified all expenses, start putting values against each.

Third Step will be to identify how much we can pay to ourselves. Suppose monthly income is $100. Total expenses comes out as $85. It means $15 is the money we can save from salary. This $15 is that money that no matter what we do, will never be needed to manage our day-to-day needs. Pay yourself first this amount ($15). How?

Fourth Step will be how to pay oneself. Remember, you have two bank accounts, ‘salary’ and ‘savings’. Online transfer this $15 from your salary account to your savings account. This transfer of money should be done the day pay cheque gets deposited in your salary account. Before you pay any bills, pay yourself first. You should never feel that this money ever existed in your salary account. You should not miss this money. Consider it as a dead beat. Making yourself feel poorer is better. If we have less in your hand, we will spend less.

But remember that feeling poorer is not the real goal. Feel poorer for long term wealth creation is the objective. If we have excess money visible, our mind start playing pranks with us. It will generate ideas of spending on needless things. This is the reason why the world richest man Warren Buffett leads a humble life. His focus is wealth creation by saving and investing and not on lavish spending.

The picture should be pretty like going on cruise for vacation. Your family should get an idea that they can save anything from small coins to big notes. The objective is to save heavily so that the piggy bank gets full in quick time. This type of exercise does two things for us. Firstly the family realizes that if they want to buy a big thing it takes time to realize a dream. Your family will learn that it takes effort and patience to buy a thing. Your kids will learn how to fight the temptation of immediate gratification. Make it a habit of your family that in case they want to buy a thing they shall discuss with family and start a piggy bank for creating a savings fund. This cultivates the habit of savings which they will cherish all their life.

At the end of the year when we get a pay rise It is always very satisfying. But generally we end up spending all of our our pay rise by increasing only our expenses column.

So lets see how WE can trick our mind to save more. If you have kids you can also involve your kinds in this game. Buy a piggy bank and set-it-up in the middle of your home. Sit with your family and try to picturize what you will buy when this piggy bank is full. For sure when we get a pay rise we can expect a proportional rise in standard of living. But a proportional rise should also reflect in ‘pay yourself column. Till last month your salary was $100 and your were paying your self $15. If your salary grew to $120 then you pay-yourself should also rise proportionately to $18. The advantage of increasing the Pay Yourself Column is that it adds to the income. The higher you are contributing to your Pay yourself column the more be your cash-in in the form of income. It creates a cyclic process. High Income > High Savings > High Income.

Suppose you decide that you want to buy a car, it is very easy to get car loans these days. If you will decide today, tomorrow you will get a car loan and within a week the car will be at your door steps. But I will suggest to delay your gratification. As a rule of thumb, instead of paying just 20% as downpayment for a car you must pay at least 50% as your downpayment.Suppose your want to buy a car whose price is $13,350 (INR 6,00,000). Ideally a bank will pay you loan for 80% of the cars value ($10,700, INR 4,80,000). But do not go by this temptation to pay just 20% and have a car. Instead wait till you have 50% funds ready for down payment. You must create a piggy bank for buying this car. This piggy bank will be like a mutual fund SIP or a money market fund. Rule is, you are not allowed to but the car till you have 50% funds ready for down payment in your piggy bank. You can also do similar exercise while buying a house. Set aside each month a sum of money that on a later date you can use for buying your house or your car.

5. Pay a Hypothetical EMI for your New

Home

Presently 1gm gold will cost approximately $40. This nothing compares to what we spend on weekends. It means every month if we save $20 it will be sufficient to buy a 5gm gold coin at the end of the year. The idea of highlighting gold purchase here is because of its ability to lock funds. Once we buy gold it is not easy to spent it (like cash). Moreover gold also show reasonable price appreciation in long term. Suppose you buy 5gm of gold each year for next 20 years. At the end of 20th year you will have 100gm of gold. If gold price appreciates even at a decent rate of 6% per annum, after 20th year its rate will be close to $1500/10gm. It means 100gm gold will be worth close to $15,000 (Rs 9,00,000). I personally consider gold/silver as an excellent way to save money from salary. It is a great tool of locking money from getting spent on trivial things.

This is one practice that I am personally following and had saw its benefits. Prepayment has not only allowed me to save on interest but it also allowed me to close my loan in half the tenure. There was a stage in my life when I was diverting all of my ‘pay yourself funds’ towards my loan prepayment. Home loan prepayment is a very realistic way of saving money. Every time I make a prepayment I know that I have saved huge interest. I will suggest my readers to at least once read this article on loan prepayment and decide for yourself whether this is worth trying or not.

But let me ask you this question, do we have an option? If we are not opening a savings account can we manage with something else? No we do not, we must have a savings account. Our savings account helps us to have salary, helps us to pay bills, helps us to have debit card/credit cards, pay home loan etc. So why to needlessly ponder about low yields from savings account. Better option is to choose best among worst. Yes, these days not all banks offer same interest on savings accounts. Lets open a savings account in a bank that is offering highest interest on savings accounts.

Interest Rates on Savings Account

Deposit Type	Name of Bank	Offered Interest Rate
Saving	YES Bank	7%
Saving	Kotak Bank	5.50%
Saving	Ratnakar Bank	5.50%
Saving	All Other Banks	4%

Small savings like these can make hell of a difference in long term. In India, rules allow us to save money from salary as listed below:

U/s 80C - Over all exemption is Rs 100,000/year (Investment in ELSS, PPF, NSC, LIC, Home Loan Principal etc)

U/s 80D - Over all exemption is Rs 15,000 (Rs 20,000 for Senior Citizen)(Health insurance for Self, family, dependent parents)

U/s 80E - 100% interest on education Loan is exempted from Income Tax (Education loan taken for higher studies of self, spouse, children) .

When we practice small small, we also inculcate these good habits in children. Small saving habits works on the principle of 'delaying gratification". Lets see some small savings habits that we can implement in our day to day life:

Driving a diesel car will save you Rs20/liter compared to Petrol. Driving aCNG car will save Rs 35/liter compared to petrol.
Buying groceries in bulk from places like D-Mart can reduce your monthly bill by about 3-5%.
Instead of buying new books to read, try a smart phone app that provides free audio-books. This can save at least Rs500 per month.
When you leave your house switch-off electrical appliances. Never leave chargers/TV/Phone/Music/Laptops/Microwaves on standby mode. This itself will reduce your electricity bill by nearly 3%
Buy clothes in bulk on those February month SALE. Idea shall be to buy all news clothes for that year in February (as far as possible). Use these new clothes as and when the occasion comes. This can save you nearly 30-50% of cost you spend annually on clothing's.
Try jogging early morning in open air. This can reduce your gym bill by Rs20,000 anually.
Before you swap your credit card, ask yourself if you had to pay by cash, would you have paid for this purchase? Generally because we are using credit cards, we buy things we cant afford. This small habit of self checking ca reduce your unnecessary purchases by 5-10%.
Plan your annual vacations in advance. Book air tickets 3-4 months in advance. Do hotel bookings 3-4 months in advance.

If we are not aware of our affordability we will fall prey to overspending. How to prevent oneself from overspending? How to save money in India each month and prevent it from getting overspend? I will give a solution to these problems from my personal experience. I tried many alternatives to check my bad habit of overspending. But nothing seem to work. One day I was conceptualizing an article on personal financial statement and I got this idea. Since that day I have followed this practice and it really helped me to save money each month. I will give few examples to explain how I use this cash flow report. One day my family decided to replace our old dilapidated refrigerator with a new one. The cost of that refrigerator was Rs 49,000. Before we commit to buy that refrigerator I ask to my self "Can we afford it"? To answer such questions I dig deep into my cash flow report. In 'miscellaneous shopping' row I checked how much saving we have accumulated. I found that we can easily buy one. In the same time, I was suppose to pay school fee of my child. The fees was close to Rs 35,000. When I checked my cash flow report I found that I was running out of funds. As this was uncompromisable expense I decided to borrow money from 'miscellaneous shopping' fund. As a consequence we were not able to buy refrigerator. But we knew that probably in next couple of months we can buy one. So such cash flow reports not only helps us to check affordability but it also helps to manage emergencies.

Depending on ones requirement, it is advisable to save 12 months prior to the real expense date. We are 3 people in my family. It is inevitable to buy gifts & arrange a small party during 3 birthdays and 1 marriage anniversary. If the expense is inevitable why not save for it from start of the year? If we are not saving it means we are spending it somewhere else. It means, when the priority comes (like Birthday's) we dig into our emergency funds or investment to meet the needs. This causes a very serious dent to our goal of financial independence. The best way to save for Birthday's & Anniversary is to start a recurring deposit (RD). This will also earn decent returns and will also lock your savings for each 1 year. I have started following recurring deposits for my family.

In my house I have noted items like kabuli chana (white gram), rajama (kidney beans), maida (wheat flour), tooth paste etc frequently appearing in forgotten-list. This list is endless. We can only come to know about it when we start searching for it. Best way to start searching is by not doing grocery shopping one weekend. Then, looking into your inventory for any thing that can be cooked and eaten. This will not only clear your food-store, but will also save good money. It is really an interesting habit. I will suggest everybody to try it once in 2 months.

This may sound too foolish suggestion to save money but it really works. Almost all household maintains a huge inventory. Funny thing is that we are not even aware that we maintain it. Sometimes it happens that this inventory gets stale and then we realize it.

Not only it will make us debt free, but it will also save huge money. Many people does prepayment of home loan. They accumulate money (savings) & then make prepayment. I will propose an easier alternative. As soon as you get your annual pay-hike, make visit to your home loan bank. Tell them that you would like to increase your home loan EMI. I will suggest you to increase your home loan EMI by 5-12% each year. I have observed one of my friend using this trick very effectively. They managed to pay back their home loan in less than half the total tenure. So go on and increase your home loan EMI. Make it a good habit. Increase the EMI judiciously each year.

First, it initiates a strong desire to save money. If idea is to generate future-fixed-income, its very inviting. Higher will be the fixed income (like from MIP) less dependent we will be on our salary. It ultimately translates income financial independence. The only drawback with MIP's are low returns. But believe me, do not discourage yourself to start a MIP because of lower returns. Look at MIP as Savings option that is given long term returns close to 5-6% per annum. A savings plan giving these returns is very good. Some might ask that if we are locking our money for long term (in MIP max is 11 years), why not invest in equity? Some might even say that if return is close to 5-6% why not buy a Fixed Deposit? Both questions are valid. But in MIP we are able to generate fixed income after some years. Equity can never promise fixed income. Fixed deposits can give higher returns its too liquid. People are often found redeeming their FD's prematurely. Considering that purpose is to generate fixed income, MIP's are very good 'savings' option.

16.Lock Your Savings Forever

One day I asked one of my friend, how much is your saving? He replied 30% of his take home salary. I said that’s very good, but how much do you save out of it? He became puzzled, so rephrased my sentence. I asked, out of 30% how much you never spend? What happens is, though we save money today, but we eventually end-up spending them.

This does not help our cause. Real saving is that saving that never get spent. Generally, what we keep in savings is very liquid form. Liquid money gets spend very easily. Savings account, recurring deposit, fixed deposits are good saving options but it does not lock our money. When we do not lock money it gets spent. So the efficient saving is that money that can never get spent & keep appreciating in value. Suppose one has home loan, use the savings to make prepayment of loan. Once prepayment is made, that money can never be spent elsewhere. Moreover, prepayment also saves huge sums of interest component. Similarly if one is carrying any type of loan (auto, personal, education, credit card etc), saving must first be used to prepay loans. This is one very effective way of locking savings from getting uselessly spent elsewhere. One can also use savings to buy as much as tax-savings options. It is a rule that says, be 100% tax efficient and 100% debt free before investing money. We spend so much time thinking about stocks and mutual funds. But instead, we make more money by simply saving tax & clearing-out outstanding loan by prepayments.

17.Budget higher than necessary

People who spend money according to budget can use this tool to save more money. The trick is simple which will helps to save money unknowingly. It is common belief that if one has to save, it must be done unknowingly.

Too much awareness about saved money will ultimately lead to spending. If saved money is ultimately getting spent then that saving is useless. Try this trick and you will be surprised how easy it becomes to save money month after month. The trick is, we adapt to higher expense within couple of months. So after a couple of months one does not realize that they are budgeting more than necessary. Hence this savings gets accumulated month after month. It is important to proper channelize the savings. One can either put them in fixed deposit, invest the money, lock it in emergency account etc.

18.Trick Yourself & Save Money

We are all natural spenders of money. We can spend money more easily than we earn them. Hence it requires special tricks to continue saving money for long time. We can actually trick our mind and influence it to save more money.

a) Buy a Day of Financial Independence: Suppose ones annual expense is $24,000. Divide this by 365 and the value you get is $66. This value can be used to motivate our mind to save. The value is more achievable and encouraging. Every $66 saved means the person is actually buying a day of financial independence for his/her family.

b) Reduce frequency of spending: When we say that we must give something all together to save money, that statement itself makes it difficult to practice. Instead of giving up something all together its more practical to reduce its frequency. A habitual dinner cannot give up drinking in a day. But if frequency of drinking can be reduced to once month, that itself can be considered as a success.

c) Idling triggers spending's: Have you ever noticed yourself planning to buy a Smart TV while you are knee deep in work in office? No, when we are busy doing something our mind cannot go on a spending spree. Its the idle mind that's the culprit. Keep yourself busy. Developing a hobby is a good way to keep oneself engaged all the time.

d) Make all your big Purchases in Cash: Credit cards has made spending's too easy for us. We buy now and pay later. This facility has made us a compulsive spenders. We do not feel the money leaving our pocket. On the contrary, studies say that people who pay by cash are more likely to live more frugal life.

e) Spend only on things you use most: We spend most of time home in our living room. In metropolitan cities, people spend more time driving on road. In smaller cities people spend more time watching TV. Its a good idea to identify which activities take most of your time. Spend money to make only these areas better. This realization will help you understand that where you can avoid your spending's.

Build Wealth In Your 30s? How? Click to know more ..

Build Wealth In Your 30s? How?

If one knows the formula to build wealth, making money becomes more effective. Majority live a mediocre life. The reason for this mediocrity is, people do not know the wealth formula. In order to effectively build wealth, knowledge about wealth formula will give lot of clarity. Wealth formula is not a short-cut to build wealth. It just shows the right path to build wealth.

Building wealth should be on everyone's priority. But not everyone is seen following this priority. People generally get used to do their 9-5 job. At the end of month they get paycheck that makes them happy. Some people are paid more, and some are paid less. People get used to this mediocrity. It takes times for people to realize that they are only like a robot.

Same job they have to day after day, year after year. Even if they do not like it, they still have to do it for paycheck. Over time, people get extremely dependent on their paycheck. By the time they realize their evil dependency on paycheck, its already too late. It is essential for people to start developing a foundation for self early in life. In wealth terms, this foundation is called 'financial independence'. Complete financial independence can only be achieved gradually. It cannot happen in one day or one year. Developing a parallel source of income (alternative to paycheck) is essential.

How to realize ones financial dependency on paycheck

Its not so difficult. Consciously take a decision not to use one months salary. That month, only savings will be used to pay for all expenses. Try this experiment for a month. The longer you can survive without using paycheck, the more financially independent one is. Majority cannot pass the first 10 days of the month. Its true that this experiment will make you very uncomfortable. But once you come out of it, you will be a changed person. You will start asking difficult questions to self. What happens if I loose my job? How will my child continue education? How will I pay my EMI? Realizing how dependent we are on salary is step one to build wealth. Everything after that will start happening automatically.

Realize how asset and liabilities contribute to wealth building

When people do not have financial goals, they tend to get distracted. Instead of accumulating assets they start buying liabilities. To know difference between asset and liability we can use simple mathematics. We know that 1+1 = 2, & 1-1 = 0. Asset is +1 and Liability is -1. Our effort shall be to accumulate as much +1's and minimum of -1's. In the process of building wealth, important is to realize, which items are +1 (asset) and which is -1 (liability).

Do not confuse Liability with an Asset

There is difference between an asset and liability. Assets adds money to pocket. Liabilities takes money out of pocket. To build wealth wealth, accumulate more and more assets and minimize possession of liabilities. Asset accumulation does not mean buying a house, fast car etc. Assets are like cash reserves, equity, bonds, bank deposits, rental property etc. Our financial goals should be to accumulate income generating assets. Financial goal can be like "In next 10 years time I shall be earning at least Rs 50,000 in form of rental income from property". Here rental property is the ‘assets’. The rental income is the return on investment. If one wants to build wealth, then they must learn these keywords, 'asset' and 'return on investment (ROI)'. This is a litmus test for any asset. It helps us to differential asset from other items (liabilities). We may consider an item as asset, but if it is not generating ROI is cannot be an asset. A combination of asset and ROI has potential to build wealth over time.

Magic Formula to Build Wealth

See that magic formula that can guide anybody on how to become wealthy. This formula is a result of excellent research work done by experts in the past which when applied will certainly lead to wealth creation.
INA = Income from Assets
INJ = Income from Job
FI = Money required for Financial Independence
EX = Expenses

In order to understand this formula lets take an EXAMPLE 1:

INA (Income from Assets) = $0 / month
INJ (Income from Job) = $1,500 / month
FI (Money required for Financial Independence) = $2,000/ month**
EX (Expenses) = $ 1,000/ month

Applying this on Magic Formula:

$0 + $1,500 < 2,000 + 1,000

INA + INJ < FI + EX.
Income from asset (INA) is zero. Income from job (INJ) is $1,500 against expense (Ex) of $1,000. But in order to become financially independent one requires $2,000 each month which is unavailable. Hence person is not on right way to become wealthy. Income from Asset (INA) must be increase to support income from job (INJ). A stage must come where INA > EX. This is a condition of financial independence.

EXAMPLE 2:

INA (Income from Assets) = $2,000 / month [return on investment]
INJ (Income from Job) = $1,500 / month
FI (Money required for Financial Independence) = $2,000/ month (money invested will strengthen INA)
EX (Expenses) = $ 1,000/ month

Applying this on above formula of wealth:

$2,000 + $1,500 > 2,000 + 1,000 Income from asset (INA) is $2,000 against expense (EX) of $1,000. It means the person is financially independent. He is already making $1,000 more from Asset income, above EX. Hence the additional $1,000 goes to fund FI. As he is already financially independent, money diverted to FI is only making the person more and more wealthy.

INA + INJ > FI + EX

Conclusion

In order to become wealthy one must have streams of income more than than expenses. From above formula we will notice that almost 90% of population will have INA equal to zero or amounting to negligible. To become wealthy increase the weigtage of INA. Also, most people in this world have never thought of applying Financial Independence to their expenses. In order to become wealthy channel your income to feed your “money requirement for financial independence”. There are several investment options that allows investors to feed money for their goal of Financial Independence.

Double Our Money By Investing , How?

Double Our Money By Investing , How?

Focusing on wealth creation is more important than making money. The best investing tips we can give to our reader is to concentrate on wealth creation. If quick-money comes in easily, it goes out even quicker. Saving and investment is the foundation of all wealth creation. In order to save properly one must create a budget.

How to double our money? All investors has this notion running in their brains. Very often I find myself subconsciously dragged in the discussion of doubling money by investing. The idea of how fast we can double our money makes us even more curious. Needless to say that if we are doubling our money in 20 years its not worth.

But if we only knew how to double our money in a year, we for sure it will attract lot of attention. Whether we accept or not, but all investors desire to double our money faster. For this if we need to take more risk then we will take it. In stock market people speculate heavily with their money with objective of faster multiplication. But in this article are not going to discuss factors of speculation. We will see only those options which are pure investment option. If we can learn to double our money by investing, we will emerge as clear winners in long term. I call speculators as gamblers. They are not investors, as investors do not gamble, they take calculated risks.

All investors shall aim to double their money by investing them wisely. This is one milestone that will keep you charged and going. Without goals, for sure, you going to end nowhere. So all investors must set a target of doubling their money by investing. Here we see how to double our money by investing.

Double our Money by Investing in Balanced Funds

Investors shall accumulate all types of productive assets. Assets we shall look for are real estate, stocks, mutual funds, ETF, Debt Linked Schemes, Gold etc. But it is not easy for common investor to be able to effectively manage so wide variety of asset types. For me the best solution will be to opt for a balanced fund. Investing in a balance fund through SIP route will give maximum benefits in long term. A balanced fund usually give an average return of 9% per annum. Which means your money gets doubles in nearly 8 years.

Double our Money by Investing in Undervalued Stocks

There are moments in stock market where stocks market index falls very steeply. I am talking about moments like the great depression of 1927, .com debacle of 2001 and US debt crisis of 2008. At these times prices of some best quality stocks fell disastrously. These are the moments when there is maximum pessimism in the market. In these moments of mayhem everybody seems to be busy in only selling their holdings. Investors sell their stocks and keep their money parked in risk free schemes. Some may even keep hard cash in their closet. This is what is a point of Maximum Pessimism. But value investors do just the opposite of what majority does in these situations. Value investors buy more stocks in moments of maximum pessimism. In year 2009, I saw a stock which was trading at 170 levels and within a matter of one 12 months its value rose above 400 levels. It means, in less than a year, there was a possibility of doubling the money. One year back the same stock was trading at 650 levels and now at 410 levels. The point I am trying to make is that, if we concentrate on buying value stocks, doubling our money will be easy. The problem here is that such moments do not come very often and we have to wait for long period. But still this market gives lots of opportunity to those investors who tracks the stocks very intently.

Double our Money by Investing in Stocks Like a Gambler.

Believe it or not but most of the people in stock market falls under this category. They buy stock and “hope” that its market price will appreciate in future so that they can sell their holdings for profit. Such investors never bother to know about investing basics. They simply buy stock by getting influenced by an external agency, without doing any stock evaluation themselves. This form of investing is highly unpredictable. I personally feel that potential investors should not follow this investing strategy. Trained stock market traders use “Future and Options” to add some certainty to this speculative form of investing. But I will suggest that normal investors need to first learn this trade and then venture into this form of investing.

Double our Money by Investing in Retirement Scheme managed by Employer.

In India, it is compulsory for service class to invest in retirement schemes. It not only gives the income-tax advantage buy also develops a retirement corpus. Suppose an average person has a basic salary of Rs 10,000/month. As per rules 12% of basic salary (Rs 1200) will be deducted towards contribution to retirement plan. The same amount of money i.e. Rs 1200 per month will be contributed by your company to your retirement fund. Now this saving will also earn you post-tax return of approx 5.5% per annum.

10 Countries With The Most Beautiful Women.

10. Philippines

Liza Soberano – The Philippines Beauty.

The Philippines people are well known for their good attitude and sweetness but there is another side to this country. It has the most wins in the “Big Four International Beauty Pageants”. See the top 10 list of most beautiful Filipina female stars.

India from space

This is latest pic of map of India from space !!

Wednesday, 26 July 2017

Snapdeal's board accepts Flipkart's up to $950 million buyout: Sources

Snapdeal's board accepts Flipkart's up to
$950 million buyout: Sources !!

Snapdeal has accepted Flipkart's revised takeover offer of up to $950 million, two sources said on Wednesday, providing heft to its bigger rival in a high-stakes battle with Amazon.com.

The board of Jasper Infotech, which runs Snapdeal, approved Flipkart's bid of $900 million-$950 million last week, the sources who were familiar with the matter said. A deal is now pending the approval of Snapdeal shareholders, they said.

Snapdeal declined to comment, while Flipkart was .. not immediately available for comment.

But Flipkart's leg up in this ecommerce war requires Azim Premji's blessings. According to ET Now, the merger needs Premji Invest's approval and Flipkart is yet to agree to the terms put forward by the billionaire investor.

Premji has objected to special payments to certain shareholders including its two co-founders and two early backers, Bloomberg had said in an earlier report.

The sticking point has been the differential payments, which are seen as an attempt to win over larger Snapdeal investors and the founders who have to agree to a vastly lowered valuation. Under the proposed terms, early investors, like Kalaari Capital and Nexus Venture Partners, would receive $60 million in addition to their new equity in Flipkart, while founders, Kunal Bahl and Rohit Bansal, would get a combined $30 million.

India's fledgling e-commerce sector is in the midst of a fierce war for supremacy between Amazon and Flipkart at a time more and more Indians shop on the web, helped by a spurt in availability of cheap phones and data plans.

Japan's solar-to-tech conglomerate SoftBank, Snapdeal's biggest investor, is keen to consummate the deal and take an equity stake in Flipkart to profit from India's booming online retail market.

A 2016 report from accounting firm EY noted that e-commerce has grown at a compound annual growth rate of over 50 percent in the last five years in India and the pace of growth is expected to continue, with e-commerce sales topping $35 billion by 2020.

Bengaluru-headquarterd Flipkart had revised its initial offer for Snapdeal to up to $950 million, Reuters reported last week

The board also considered a $700 million share-swap offer by listed e-commerce firm Infibeam but rejected it as too low, one of the sources said.

Infibeam declined to comment.

Separately, Indian private-sector lender Axis Bank is the frontrunner to acquire Snapdeal's digital payments unit FreeCharge for $60 million, the sources said.

Axis Bank did not immediately respond to a request for comment. All sources spoke on condition of anonymity as the discussion are not Public.

RBI stops printing Rs 2000 notes, focus turns to Rs 200 notes

RBI stops printing Rs 2000 notes ??

The Reserve Bank of India (RBI) has reportedly stopped the printing of Rs 2000 currency notes and the new Rs 200 notes are likely to be introduced next month. Mint on Wednesday reported sources as saying that printing of Rs 2000 notes was stopped around five months ago and the government is unlikely to print more Rs 2000 notes.

Officials of the central bank reportedly told the newspaper that the RBI had also accelerated the process of printing the Rs 200 currency notes. The new notes are expected to start circulating by next month.

"About 3.7 billion Rs 2,000 notes, amounting to Rs 7.4 lakh crore, have been printed; that more than compensates for the 6.3 billion Rs 1,000 notes that were withdrawn after demonetization on 8 November 2016," Livemint said, citing an RBI source.

The RBI has reportedly already started printing the first batch of Rs 200 note in June to ensure easy currency availability in the country.

In fact a report by SBI even says that the introduction of Rs 200 note will fill in the "missing middle" even as the new currency in circulation (CIC) has already reached 84 per cent of the pre-demonetisation level.

The 19 July report from SBI’s economic research wing showed that cash on hand with banks was high at 5.4 per cent of currency in circulation, compared with 3.8 per cent before demonetisation. This shows that there is excess cash lying in ATMs or bank branches, most of which could mostly be Rs 2,000 notes, according to the report.

The SBI report noted that though there had been a significant move towards reallocating the distribution of currency towards smaller denominations after demonetisation, there was a mismatch caused by the presence of Rs 2,000 denomination straight after Rs 500.

The new notes of Rs 200 should be out before the end of 2017 and would greatly help narrow the demand-supply gap in smaller-denomination currency bills, it said.

Besides, an ATM machine typically holds 10,000 bills and if these were to comprise, say, only Rs 100 notes, the number and cost of replenishment would go up significantly.

"Herein lies the paradox. Notes of Rs 2,000 denomination in ATMs may find few takers because of the missing middle/Rs 200 note," the report said.

Last week, the Economic Times had reported that eight months after demonetisation and the introduction of new currency notes, bankers felt there was now a drop in the circulation of Rs 2,000 notes. The report had added that the supply of Rs 2,000 notes from the RBI had declined recently, leading to the speculation that there might be a deliberate plan to limit the supply of these notes.

State Bank of India Chief Operating Officer Neeraj Vyas had told ET, "We are receiving currency notes from the Reserve Bank in the denomination of Rs 500 in high-value currency”, and that the Rs 2,000 notes were only coming in as a result of recirculation.

Business Standard had earlier this month reported that RBI would issue the new Rs 200 notes to tide over the shortage of low-denomeination notes, in some parts of the country.

“It will also help in bigger transactions. You can give change for Rs 2,000 in ten Rs 200 notes rather than twenty Rs 100 notes,” said an official, adding that the notes should be in circulation by the end of 2017.

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Monday, 9 October 2017

1. Pay Yourself First

2. Open a Piggy Bank at Home

3. Your Pay rise should also reflect on “Pay You Self First” rule

4. Set a piggy bank for yourself and your wife

5. Pay a Hypothetical EMI for your New

Home

out of college and had joined your first job. If you start this virtual home buying, by the time you are 30 and you actually need to buy a home, you might have already

6. Accumulate Precious Metals Like Gold or Silver.

7. Prepay Your Loans

8. Open Savings A/c in Bank offering highest interest rate

9. Save huge money by Planning Taxes

10. Develop Small-Saving-Habits

11. Prepare a Personal Cash Flow Report

12. Always Save Money for Birthday's & Anniversaries

13. Skip Grocery Purchase once in every two months.

14. Increase Home Loan EMI by 5% each year

15. Save Money to Generate Future Monthly Income