what is insurance for bank deposits?

Dear Friends,
Do you know there is insurance coverage for your money in the bank, the amount could me savings account money or deposits.

Deposits up to Rs 1 lakh are insured under the government's Deposit Insurance and Credit Guarantee Corporation (DICGC).

As per this scheme, even if you keep multiple deposits (savings and fixed deposits) across branches of one bank, only a total of Rs 1 lakh is insured.

However, spreading your money across two-three banks helps. "This way you can get the maximum coverage on your deposits", Chabria.

There is another good news. The government is in talks with the RBI to raise the ceiling on deposit insurance from the present Rs 1 lakh to Rs 2 lakh.

Smart tips

Hazari has some tips for the safety of your money:

-- Stay away from banks that offer you a comparatively higher interest rate on FDs than other banks. This is known as 'adverse selection' in banking terms. “They would offer higher rates only because they need funds," he adds.

-- Beware of banks that have grown too fast, too quick.

Despite the rumors that have been doing the rounds, Chabria brings in assurance by saying," Depositors in India are extremely well protected. Even if a bank goes bust, the RBI should take care of it, and the investors may suffer, not the depositors."

how to know bank financial health -- Some points

Dear Reader,

Recently when i am reading some article about the financial crises across the world i came to know few points regarding "how to know bank financial health". I would like to share those points with you.

When you are estimating the financial health its important that you take both qualitative and quantitative aspects into account as weakness in one area could easily be compensated by strength in another segment.

Reserve Bank of India (RBI) will maintain the details about the banks which are in India, this date will be collected by RBI in regular time periods you can find details about the banks in Bank Profiles provided by RBI

Lets look into the details how we can estimate the financial health.

SLR (Statutory Liquidity Ratio):
In simple terms SLR means minimum amount of reserves (held in cash, gold, short term securities and other liquid assets) a bank must maintain during all times, after all it's investments and lending.The SLR for Indian banks is normally 25 per cent of the capital. For example, if a bank has Rs 1000 with it, before it gives away all of it, it has to maintain at least Rs 250. This helps in case depositors want to withdraw money, or for liquidity purposes.

Non-performing Assets (NPA) Ratio:
NPAs refer to the loans given by a bank that it classifies as doubtful. This means that the bank has low or no hopes of recovering money on these loans.A non performing asset or a loan is when the interest and/or installment of principal on it has remained 'past due' or unpaid -- for more than 90 days

CRAR(Capital Adequacy Ratio) :
In INDIA Commercial banks need to maintain a minimum capital to risk-weighted assets ratio (CRAR) of 9 per cent. In simple terms this means that if the bank has given out Rs 100, it should have at least Rs 9 with it as capital.


Related Links :

Assessing the health of your bank

3 ratios that tell if your bank is safe

Information about Bonds

Dear Readers,
There is a great investment option in fixed returns Bonds, These bonds are offered by one of the India's most trusted company called Shriram Transport Finance Company Ltd. These Bonds are rated by RBI, and few more India's most trusted asset management companies like UTI, Reliance.

UTI Bond Fund
Reliance Liquid Plus Fund
And there are many more.
Interest rates offered are as flows

Invested Amount	Deposit Term in Months	Interest Rate(Monthly)	Cumulative Rate of Interest	Interest	Amount
10000	12	11.50%	12.10%	2100	11210
10000	24	12.00%	13.50%	2700	12700
10000	36	12.50%	15.07%	4521	14521
10000	48	12.50%	16.12%	6448	16448
10000	60	12.50%	17.24%	8620	18620
10000	62	13%	18.39%	9500	19500
10000	65	13.00%	18.74%	10150	20150

you can redeem the interest on Quarterly bias's, Half yearly bias's also.

To get the deposits in these bonds contact :
Ramana D V
Phone no: +91-9741598945
e-mail id : sriram.adviser@gmail.com

Personal Financial Management presentation

Dear Friends,
Greetings form Ram Financial Consultancy. We are planning to conduct some training programmes (seminar) about financial planning & its use in day to day life. This is a free seminar which covers the following topic including so many other topics, followed by Q&A section.

• Personal Wealth Creation and Finance Management

You just have to register with us for free of cost by simply sending mail to sriram.adviser@gmail.com . We are not any commercial Financial Consultancy, This is started with a Greeting vision by the team of financial experts.

contact person : Ramana
phone no: +91-9741598945 
e-mail id : sriram.adviser@gmail.com

Time : 1st Section : 09:30am to 12:00am
2nd Section : 02:30pm to 05:00pm

venue:
Building No: 237/1,B.M.P No:36
6th C Cross KaggadasPura,
C.V.Raman Nagar Post,
Bangalore-560093,
India

Report about the Banks

Dear Readers,

There are so many rumors about the Banks and there cash flow, i found some data related to this in RBI web site, I think there is any problem you can find the report in the following link.

http://rbidocs.rbi.org.in/rdocs/Publications/DOCs/87122.xls

For any question please write us @ sriram.adviser@gmail.com