How an IT engineer tripled his networth in 8 yrs

How an IT engineer tripled his networth in 8 yrs – An exclusive story

Posted on June 4, 2018November 19, 2019 by Jagoinvestor

Do you want to read the story of an investor who has tripled his net worth in just 8 yrs and learn about his great skills in financial planning?

We bring you the money story of one of our readers from Pune, who agreed to share about his life journey and his achievements. Over to him …

—

Hi Manish

First, let me start by thanking you and Jagoinvestor team for running this great learning portal (Jagoinvestor) and giving me an opportunity to tell my money story which may help some of the readers.

A little bit about my family

To give you some quick background on myself, I live in Pune and I am an IT architect by profession working with Wipro. I come from an upper-middle-class background with my father (passed away last year) been a banker and mother being a housewife.

Money Story

I also have a younger sister who has been married and well-settled. I have been married with a 4- year old kid now and my wife takes care of the home.

My childhood experience with money

My introduction to money management started at a very early age. My father and mother were always advising us both kids to spend it right and all genuine/reasonable demands were met. However, we didn’t get any pocket money any time as we had been asked to ask for our needs and no money was just given to spend as we like.

Even during my teens, we had a simple practice of giving complete account to mother/father for the money that was given to buy any items. So, I have always valued money to be spent and would continue to do that with my kid.

My father was also a good investor in his time even with no internet and mobile phones available. He had invested in some stocks, some land/flat, FDs and PPF during my growing up days. As a kid, when I used to see him receive cheques for shares dividends for paltry sums, I used to ask him what is this that you keep receiving. He used to tell me that you will understand more with time.

So, curiosity started very early.

I got a job in Bangalore

My hands-on work in personal finance and financial planning space began when I started working in Bangalore at a very low salary (~10K in hand) and was always trying to see the best I could make out of it in terms of savings. To me, money saved was always money earned.

penny saved is penny earned

So, I looked upon all possible legal ways of reducing income tax to start with and then investments in other avenues. It also gave me a great boost that all friends used to ask me on how best to save taxes. Later, I did the same even when I was outside India by understanding the IT laws of that country and ensuring I only paid required taxes.

Expanding the horizon

As my interest grew in financial planning, I started covering all bases including insurance policies, PPF investments. Interest in investments led to Stocks, MF, real estate and eventually Portfolio Management Services (PMS).

For fixed-income instruments, I keep some investments in Sukanya Samruddhi, NPS, Fixed Deposits and of course PF. I had created cash inflow/outflow projections for the next 20 years and my estimated expenses at various stages considering inflation.

This has led to investing as per goals at various stages like buying flat, child’s education expense at age of 15, 18, 21 and then marriage, retirement corpus, etc.

My Financial Achievements

From where I started (10K per month salary with zero bank balance) 15 years back to today with well-over 6 figures take-home salary, of course, the salary has grown many folds but then expenses have too. My net worth has tripled in the last 7-8 years (my salary went up by 50% in that time), Stocks/MF/PMS portfolio stands over 1 cr, 2 flats owned.

Money attracts money and so, more investments I made, more returns I got. I bought a flat with no home loan a few years back because of the investments made and that gave me great satisfaction.

My Equation with money

In one sentence, my equation with money is to maximize my potential. Be it earning through all legal means or maximizing returns on my investments. Money has and will always be important to me just like others. Having enough money to me means all needs (and not necessarily all wishes) at different stages are met with ease.

Spending money to me means that every rupee spent is worth the object to be bought. When I meet either of these, I am a happy and content man. If I fail on either one, it’s not losing money which troubles me but it’s the standard/process that I couldn’t follow which led to the loss of money.

How my perspective towards money changed

My primary experience with money is that you need to be diligent with money management. When I was not diligent enough with a couple of investments, I made bad calls and lost money. Similarly, informed decisions in investments have given me substantial returns. Like other aspects of life, Wealth creation takes time and knowledge.

You have to be alert and keep reading to understand views from experts. Blogs like Jagoinvestor help a lot when you start on this journey.

Money is not everything as they say but not having enough money brings everyday problems, I believe.

money and happiness

People crib about not earning enough but they don’t know how to manage and invest what they are earning which leads to higher dissatisfaction. Then come compromises on various needs that have a butterfly effect on other aspects of life.

I have seen someone in my family who has retired from a very high post in Income Tax department, still doesn’t even own a single house and not enough retirement kitty which shows not being diligent enough with money management. He lost money in bad investments with no tracking and his family simply loved spending on shopping time and again.

Then came excuses and defensive attitude. That’s the worst case of lack of money management that I have seen around.

Summary of learning

While I am still learning, there are some experiences/habits/ which have helped me and would like to share –

Cover your bases – Before you invest, make sure you insure yourself/family with the right policies for Life, Medical, Critical diseases, House and Car (in that order).
Start Early – It’s been said multiple times that when you start early, the magic of compounding works big time. Make sure you start the habit of saving and investments early even for small amounts. Remember it is a habit and with time, you can increase investments. I started at the age of 23 with saving not more than Rs 1000 in taxes but the habit was developed.
Ask/Look for help – Solid financial planning is not everyone’s cup of tea. Leave it to experts (check with Jagoinvestor team) where required and don’t hesitate in paying small fees for that work. You also get paid for the job that you do because of your skillsets.
Track your net worth – It is critical to track your net worth i.e. difference of assets and liabilities. Similarly, track your cash (FD/Savings Acc, Liquid Funds), fixed (real estate, PF/PPF, NPS) and variable assets (Stocks/MF/PMS/Gold). I try to maintain a healthy cash balance too.
Return on Investments – Your investments should grow when you sleep. Make sure there are no dead investments. A lot of bank balance in savings account looks good but it is detrimental to wealth creation and leads to “money erosion”. Ideally, Your investments should take care of at least your regular payouts i.e. Loan EMI, Credit Cards, Policies premium.
Track your monthly expenses – I have created a simple excel sheet to track all expenses in a month. I then bucket them in real expenses, Liabilities payout (Loan EMI/Insurance premiums etc) and investments (SIP, Endowment Policies, NPS, Sukanya Samruddhi etc). The idea is to capture % of your income from getting allocated to these sections and avoid unnecessary expenses. Typically, I average 35% in expenses, 35% in liabilities, 25-26% in investments and remaining as just savings.
Share with spouse – Share with spouse details of your bank accounts with passwords, complete details of assets and liabilities. You never know when would they need it suddenly and you may not be around. Trust me, it becomes impossible for someone new to find all your investments. I have created simple excel sheets, keep updating them and share them with my wife. I store all physical documents in one place.
Diligence in money management – As there are no shortcuts, make sure you read enough and then make informed decisions. Respect your hard-earned money.
Wealth Creation – The key is to create wealth over a period and increase your net worth. We are not born millionaires.
Aspire, not greed– When you see someone successful/failure in money matters, try to learn. Aspire to be successful but don’t envy or have greed. Don’t lose night’s sleep because everyone makes mistakes. There’s always a chance to make a comeback but with patience and again, no short cuts. I learned this from my father who made all right investments but was still very detached emotionally from those investments.
Follow the right processes and money will follow – Wealth creation is a result or even a by-product (if you may). Following right processes of money management will lead you on the right path.

So, that’s it, folks. I hope my story helps some of you and you can benefit from learnings/best practices I shared. I would like your views on areas that you think I might be able to do better in money management.

What is your money story?

I hope everyone has learned a lot from his story.

If you want to write your money story, Leave your details here and Jagoinvestor team will get in touch with you with the next actions.

Rags to Riches money story of Mohit (Employee vs Entrepreneur mindset)

Posted on June 29, 2018November 18, 2019 by Jagoinvestor

Mohit, one of our readers has agreed to share his rags to riches story which will help a lot of you to build the mindset to become rich and do what it takes. Over to Mohit.

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My story is going to be about two generations and how each view, treats and values money differently. Some background first…

Imagine sitting under a lamp-post or under the stair-case of your palatial home (shared) for your studies, way back in the 1970s? Sounds like a scene from a Bollywood potboiler? Well, this was exactly how my father scrapped through his school and college education.

rags to riches money story

He was born to a joint-family that had a huge house but no income. A vain father, no mother and zero income; my father’s money story is a true rags-to-riches one in the sense that he had absolutely no support and progressed on scholarships by his college to complete his degree.

Also in true Hindi-film style; the love of his life (then) rejected him for lack of money.

How my father got his first job

In the 1970s, a generation waking up to the post-independence yet pre-liberalized era of working; he got his first job in the then Hindustan Computers (HCL) under its founder, Shiv Nadar. He still remembers fondly that his employee code was 0002, i.e, he was HCL’s second recruit.

My father faced such money hardships in his childhood that the only objective in his life was to acquire wealth. But there were no equity markets or organized financial planning back then. One invested in real-estate of whatever surplus they had, and he was no different.

My father started his own business

After a brief stint with HCL, my father decided to venture out on his own and set up a small logistics company (for the uninitiated, logistics is responsible for import of goods in India from a foreign-country and vice-versa), and again as my father fondly recalls now, the first month’s profit he made in 1980 was fifty thousand rupees!

That was more than what he earned in his five years in his job! Therefore he immediately recognized that business is the way to be if one wants to make more money.

job vs business - which one gives you more money?

From the early-1980s to the early 2000s, i.e. in a span of 20years, he made the tables turn in his favor and even though he did not make an Ambani out of himself; he acquired a 9-digit net-worth starting from absolute scratch. As much as I am proud of his achievement, I objectively analyze his money journey and mistakes in following bullet points –

My analysis on my father’s money journey – “Achievements and Mistakes”

He was never a big risk-taker. So his entrepreneurship success is a bit surprising (no risk = no gain) to everyone. Yet as a close observant and first-hand beneficiary; I attribute it to immense HARD WORK! Really he amplifies the cliche that there is no substitute to hard work. I have seen him work weekdays and then Sundays too.
He made some mistakes in businesses like a factory went wrong, but he knew what his A-game was and stuck to his guns. Often people over-diversify (even in investments) but he invested his majority time to the business he knew best.
He had absolutely no knowledge of shares. But he did make some IPO investments on advises etc but they never yielded any returns. It happened with endowment plans from LIC etc.
At the “right” time, he made some real estate investments, which paid off big-time and are the real reason behind his swelling net-worth.
The best part was – he was never a miser. I don’t recall a single day during my childhood when we felt we were missing anything for lack of money. He spent on cars, jewelry, travel, and the typical good things of a lavish life.
Typical old-school style, he kept his entire money either in property or in spending; which I often remind him as a mistake.

Cut to 2004 – This is where my own money story begins.

Having seen his business success story (which as a child, I often took lightly. I didn’t quite acknowledge that making money is this difficult), I had a few things clear to me –

Born to such a successful person, the benchmark was quite high.
My mother kept reminding me the importance of money during my growing up years, and so, making huge money was always a priority.
I was eager to get out of the world of business and take our net-worth to the next level, i.e, 10-digits!

Just like my father, I knew business was the way to be and set-up my venture in December 2004 (although I had a kickstart – firstly space was provided by him, secondly I didn’t have to be the breadwinner).

Again the first few months were so profitable that my self-belief was sky-high. In fact, I became over-confident, or maybe a better word would be snotty. Yes, today I can admit it; even though back then I didn’t realize it. So I set-up another business. And then another.

I wanted to become super-rich and in super quick time that I started losing sight of value-addition by my business. I learned 2 important lessons.

Lesson # 1: Never take things for granted

A couple of years later, my businesses started going downhill. I had to shut down a couple of them and like my father before me, I focused on the A-game. Thankfully a new trade-lane emerged in India and my business and money-journey started improving brightly.

As it became more consistent, I again ventured out in a couple of new fields. Whatever surplus I had, I either put in my businesses OR in bank FDs. Looking back, I am shameful to admit but I didn’t utilize India’s maturing equity markets especially between 2008-2010 period.

In late-2013, I had my first brush with mutual funds. Through a banker (I still credit him for bringing me to equity), I made my first SIP and my first lump sum mutual fund investment. Because the markets grew rapidly since Modiji came to power, my investments swelled handsomely.

And that’s when I made another mistake – I shifted all my FD money into equity. My 7-digit portfolio was 100% equity, full of mutual funds, NFOs, direct stocks, you name it!

Lesson # 2: Take financial planners seriously

Thankfully, better sense has prevailed since then and I have deliberately re-designed my portfolio with a 50:50 equity: debt allocation in late 2017.

As things stand today, I am doing two businesses and while the first one is doing great, second is still in nascent stages. My money is invested in these two, with no investments in real estate or FDs. A third stream is markets (as shared above, 50% equity and 50% debt) with running SIPs.

As of March 2018, I am proud to share that my own net-worth (not counting father) is nine-digit itself and the aim is to attain 10-digits by 40 (I am 34 now). That’s when I shall hang-up my boots and stop working for money.

getting rich quote

Am I happier today because of my high net worth?

Personal happiness is a state of mind. When one is feeling rich (not only money-wise but overall), then one is bound to feel happy too. In that sense, I do attribute a lot of my happiness to my growing net worth.

I have never been too much into ‘brands’ or ‘consumption’ per se, yet it is mentally comforting and moral-booster to see your net worth grow. So yes, I will agree that happiness levels have increased definitely with growing money in the bank.

However, there is a very thin line to be identified here. One tends to cross that line unknowingly (as I did at the little success at the beginning of my career). If one gets obsessed with their money-success, then it captures your mind.

You start expecting more out of yourself every day, and in the process – keep pressurizing yourself. So the trick is to find the “right balance” and acknowledge that you are separate from your “material success”. Appreciate the money success, yet keep reminding yourself that it can all go wrong tomorrow – so don’t bet your life on it.

Rich have their own set of problems

A lot of people tend to feel that their problems will vanish once they get rich. This is largely true as well, however, once you settle into “the rich” life, a different set of pressures and problems will take over. Your lack of resources for foreign travel or a Volkswagen car; will be taken over by problems of beating your neighbor’s car or foreign travel with a business-class flight etc.

My point is – money problems will disappear temporarily but new ones will soon take their place. To counter it – always try and live a lifestyle one-level below the one you could afford. If say (in the Indian context) there could be five levels of income, and you are on the fourth level, then try to deliberately follow a lifestyle you deem fit for third-level income.

Those ways, your ‘money problems’ shall always be 1-step behind you.

10X money definitely can bring 10 times comfort or even 10-times security; but definitely not 10 times happiness. Unless again, your life is one-dimensional (i.e. only about money) which is definitely not the case with anyone.

Some money lessons out of my own experiences

Don’t become a philosopher, before you become rich. Nobody listens to a poor philosopher. This implies that one needs to get rich (whatever an individual’s definition of rich maybe) in life, to be taken seriously. You can reject the notion of “money is not important” only after you have conquered it.
Beyond your line of work (business, job, professional – whatever it may be), you need to develop a passive income. It can be through equity markets, interest income, rental or combination of all. One must aim that such passive income can match their monthly-expenses at some point in their life (earlier the better).
Do not consider your ancestral wealth as your own. At best it should be your fallback option. I speak this not only from my own experience, but n number of observations out of families around me. By the time you inherit it, you have lived past your prime life (i.e. past your 20s and 30s, even 40s). Also, you have to carve your own identity and make your own money for improving your self-worth.
Living on debt or on a monthly paycheck-to-paycheck can be mentally demoralizing. One must have a decent amount of savings tucked-up somewhere, to live with dignity and a sense of security.
And finally, DO NOT think of money as the only thing in life. One must value the balance of life very highly. It is of no use to have a high net-worth when you are occupied with it 24*7 or are living an unhealthy lifestyle plagued with physical problems. Always try to create equilibrium between money/income, health, close-ones and entertainment (travel, a hobby or something etc). I especially emphasize the last one as I have known people who are so much into their careers that they do not know how to spend their spare time, or what to do on their weekends except watching tv. That is quite sad.

Let me know what did you learn from this money story?

What is your money story?

I hope everyone has learned a lot from his story.

If you want to write your money story, Leave your details here and Jagoinvestor team will get in touch with you with the next actions.

Money story of Mr Rajat – How they lost major part of their wealth overnight

Posted on April 20, 2018November 6, 2019 by Jagoinvestor

Today we are going to look at the Money story of Mr. Rajat Agarwal. He has been kind enough to share his story in detail and we all will learn some important aspects of financial life from his sharing.

Over to him…

I was born in 1982 into a wealthy Marwari joint business family, with combined sales of about ~5500 Crs (as of 2017). My father retuned to India in 1980 after completing his MBA from the University of Austin, Texas and was asked by my grandfather to start an aluminum extrusion company, which was founded in 1981.

Money Story of a family who lost their money and business

The aluminum business was in addition to the joint family’s other businesses like – Transportation, Gases, Steel, Power, etc. My mother was from an average middle-class family which helped keep my brother and I grounded in reality while growing up. Even though we had domestic help all the time, we were taught to do our work on our own and not depend on anyone for daily chores.

My father always made it a point to schedule monthly short vacations and longer annual international vacations and spend a lot of time with the family each evening – playing cricket, watching movies, taking us for sports activities, etc.

Luckily I grew up in a wealthy family

As it was a joint family (until the late ’90s), we did have a budget to adhere to, but it was more than sufficient to have a comfortable upbringing. We never splurged on luxury items – the only cars we had back then were Maruti’s and a Contessa.

Having said that, my father never compromised on vacations wherein we used to always stay in the best of hotels and fly business class to international destinations.

My first Pocket Money

I started getting my first pocket money once I graduated high school and started college. This is the first time I experienced the joy and thrill of money and what it actually symbolized. Until then, everything was provided for and I had never felt the need to ask/save money.

Getting Pocket Money

I had the same experience after completing my undergrad degree in 2004 in Boston, USA. My father made it clear that from this point on, I would have to provide for myself. This was one of the most stressful periods I had experienced to date. I spent weeks doing interviews and a few part-time jobs until I finally landed my first full-time consulting job after 3 months of graduation. I was working 10-12 hours a day, hardly meeting friends and spending my weekends just trying to recover from the grueling week. Though it was really hard and painful at the time, it turned out to be a blessing in disguise, as it prepared me for the tough times that were just around the corner.

I started my earning through family business

After working for 4 years in the consulting role, I returned to India in 2008, joined the family business and started working under my father. Based on my experience with money in the US, I was adamant that I will draw a salary based on my education, experience, market trend etc and will pay for all my personal expenses other than housing as I was still living under the same roof as my parents. This is also the time I got married, which again is a life-changing experience and taught me a lot more about money than I had hoped for!

And then we lost major part of our wealth overnight

Due to various events between 2008-2011 the aluminum division was declared an NPA overnight, resulting in our selling the company 100% to a Japanese conglomerate by 2013. This entire experience of losing most of the family wealth overnight and having to sell the company and my house in Bangalore, which I had bought in 2008 upon my return, further made me realize the importance of savings.

Big loss in business

My father never separated business and personal finance and therefore after almost 30 years of running a business, he did not have any personal savings to fall back on. I was glad that I made the right call in 2008 of drawing a salary and keeping my personal income personal.

I had started reading Jagoinvestor around 2010 and was following a disciplined investment approach through SIPs in Mutual Funds, Gold ETFs, PPF, etc. Most importantly as I was drawing a formal salary based on my worth, the Japanese acknowledge this during the transition and made me an attractive offer to stay back as a Director for India looking after daily operations.

Money is very important, but finally, a means to an end

My first experience with money was when I started getting my pocket money after high school. Then in 2004 when I started my first job and again in 2013 after having sold the aluminum business and going from a promoter-director to a salaried director.

I don’t harbor any specific fantasies about money and realize that it’s a means to an end. Yes, money needs to be appreciated, valued and respected. It is important to save for the future and have an emergency fund. It is important to be aware of the reality that nothing lasts forever and one can lose assets, jobs, health overnight.

Being able to lead a healthy, comfortable and dignified life and giving back to society is what is most important.

Unfortunately, the world we live in today does not give us the luxury to harbor idealistic beliefs such as this. Money is and will always be the most important thing in life as it akin to the blood in our veins or the oxygen in the air.

My parents point of view towards money

Both my parents always respected money and never splurged on wants. However, they used to always tip heavily at restaurants, travel tours, domestic help etc and it gave me the feeling that they never had a desire to accumulate wealth.

Money and Wealth

I have come to believe that money/ wealth only come to those who desire it and plan for it.

Money – Now and Then

In both phases of life, I knew that money was and is important, as it was the only way I could fulfill my needs and wants. It’s just that when I was in high school, my inability to fulfill my needs and wants to effect only me and now when I am 35, it affects my family, domestic help or anyone dependent on me.

As one grows older, the number of people dependent on us also increases and so does the importance of money!

How do I look towards people having more or less money?

I think less/more is a function of income/expenditure and savings/growth. It’s a very subjective notion.

For example, I know people living contently earning 50,000/month and earning 50,00,000/month. Each one is wired differently and if one has the desire to grow financially, they need to make a conscious sustained effort and not leave it to chance.

The biggest mistake people make with money

I think one of the biggest mistakes people make wait a lot and not start saving at a younger age! I know so many people at the age of 21-25 who are starting their first jobs and they just don’t believe in or understand the concept of savings. I think its a big mistake! If you cant save much, that’s fine, but at least start with some amount and start building the discipline.

In the US for example, parents demand that their kids start paying for their own expenses from the age of 16 and by the time they are adults, most of them come to appreciate the magic of savings and compounding!

How money is linked to happiness?

I think for one to embrace happiness, the person needs to be in a peaceful state of mind. For one to be in a peaceful state of mind, you need to be healthy, provide well for your family and have a fallback corpus for the unknowns which again requires money

How I’m feeling after writing my money story?

Writing my money story makes me more determined in continuing on my path of spending intelligently and looking for more ways in which I can contribute to today’s youth who are just joining the job market by helping them understand the value and the various avenues available to them for saving and investing.

What is your money story?

I thank Mr. Rajat to share his story on this platform. Hope everyone has learned a lot from his story.

If you want to write your money story, Leave your details here and Jagoinvestor team will get in touch with you with the next actions.

What do you think about my money story? Did you enjoy it? Can you share your views about money and how it changed over the years?

How to quickly check your bank balance without internet on phone?

Posted on June 14, 2018December 27, 2018 by Jagoinvestor

Everyone wants to check bank balance and keep a track on their bank accounts. Smartphone’s, internet and banking system together has made this process easier by providing the facility to check your bank account details online.

But what in case of those people who don’t have a smartphone or internet connection?

Now you can check your bank balance and a few other details of your bank account without internet also.

Check bank balance on mobile without internet

Let’s see 2 methods of checking your bank balance when you do not have internet and also you want the information quick fast.

Method #1: Missed call feature to know your bank balance

This is a very simple process by which you can check bank balance easily without having an internet connection.

How does this process work?

As I said earlier, it is a very simple process which will be completed in just 2 simple steps.

Dial the 10 digit mobile number which is allotted to your bank (Select from the list given below.)
After 2-3 rings your call will be disconnected and you will receive a message which will show you your bank balance and mini-statement of last 5 transactions.

If your number is not registered to the bank, you will get an SMS which will show that your number is not registered with the bank and it will also include details of how to register your mobile number.

Given below is the list of banks and the 10 digit contact numbers which you can use to know your bank balance and mini-statements. You can simply save the related number of your bank in your contacts list and you can easily check your balance anytime.

Public sector banks and their contacts for missed call service:

Bank name	The contact number for missed call facility
Allahabad Bank	09224150150
Andhra Bank	09223011300
Bank of Baroda	09223011311
Bhartiya Mahila Bank	09212438888
Bank of India	02233598548
Indian Bank	09289592895
IDBI Bank	18008431122
Canara Bank	09289292892
The Central Bank of India	09222250000
State bank of India	For balance: 09223766666 For mini-statement: 09223866666
Syndicate Bank	09664552255
Punjab National Bank	18001802222
Union Bank of India	09223009292
UCO Bank	09278792787
Vijaya Bank	18002665555

Private sector banks and their contacts for missed call service:

Bank Name	The contact number for missed call facility
Axis Bank	09225892258
Dhanalaxmi Bank	08067747700
Kotak Mahindra Bank	18002740110
HDFC Bank	18002703333
ICICI Bank	02230256767
Karnataka Bank	18004251445
Yes bank	09840909000

Some salient features of this facility are given below:

This facility is completely free for everyone.
To get the benefit of this facility your mobile number should be registered with your bank account.
If you have more than one account, then your latest opened account will be considered as a default account and you will get the details of that account in this facility. However, the default account can be changed.
These features are the same for all banks. However, the process might be different in some of the banks.

Method #2: Know your bank account balance using *99#:

The code *99# is also called as USSD code which is not related to any particular mobile network service providers or any bank. This facility is introduced by NPCI to provide the facility to common people to have an easy access to their bank account.

Below given are the steps to check bank balance using USSD *99#:

Dial *99# from your mobile.
Select the option of bank balance from the list which will be opened on your screen (which is most probably 3 for all users).

Check bank balance without internet.

Then enter the 3 letter name of your bank or first 4 letters of your IFSC code.

OR

It might ask your UPI pin if you are already registered for that.

Check bank balance without internet.

Enter 3 letters of your bank name (for e.g. SBN is the 3 latter name for State bank of India) or first 4 letters of your IFSC code (OR UPI pin).
Your account balance will be shown on your screen.

Basic features of *99# service

This facility is a relief for those people who can’t have access to the internet all the time. This unique code has some basic features which you should know if you are going to use it.

The feature of this USSD code is as follows:

This code works without internet.
No hidden charges or roaming charges are applicable on use of this code.
It works across all the GSM service providers on all kinds of mobile handsets.
You can use this code 24/7 including holidays.
No need to download an app or activate any service on your mobile phone.

What kind of services you will get under *99#?

*99# is a USSD based mobile banking facility introduced by NPCI which brings together the two diverse ecosystem partners i.e. Banks and Telecom service providers.

Apart from the balance inquiry this banking system also provides some other facilities which are listed below. Let’s have a look at those facilities.

Send Money Using IFSC code and bank account number of the beneficiary.
Balance Enquiry
Mini Statement
Generate or change MPIN or Mobile PIN.
Send Money Using Aadhaar number of the beneficiary which must be linked to his bank account.
Know your MMID
Send Money Using MMID and mobile number of the beneficiary.

The only difference between these two methods of mobile banking is that by using missed call service you can know your bank balance and mini-statement only.

On the other hand, if you go for USSD code service, you can also transfer money from your account to any other account by using his mobile number and MMID OR account number and IFSC code or even Aadhaar number.

Isn’t a very easy way to know your bank balance without any internet connection?

I hope you enjoyed the article. What do you think, is this facility helpful or not? Leave your opinions in the comment section.

Want your Insurance Claim to be Processed? Link your Aadhaar/PAN asap!

Posted on August 28, 2018January 22, 2019 by Jagoinvestor

As per IRDAI, the insurance regulator – it is now mandatory to link your Aadhaar and PAN number with your insurance policies. Though this linking process does not have a deadline right now, its advised to act fast and complete this action asap to avoid any last minute rush and issues which you might face at the time of renewal or claims.

Note, that those investors who still don’t have PAN , have an option to submit form 60.

How to link Aadhaar & PAN in your LIC policy?

If you have any existing life or health insurance policies, you should link your Aadhaar and PAN soon.

As most of the investors have LIC policies, I am covering the online and offline process for LIC policies right now in this article and will give the links to update the Aadhaar for some other companies as well.

Online Process for updating Adhaar in LIC policies

If you want to update your Aadhaar in your LIC or any insurance policy, the first criteria is that your active mobile number should be linked to your Aadhaar number, so that you can generate OTP which is necessary for the registration process.

Here are the 3 steps you need to follow

Step #1: First of all visit this dedicated link from LIC’s website

Step #2: Fill the details like your

Name

Date of birth

Email ID

Aadhaar number

PAN number

Policy number

Aadhaar registered mobile number

and then click on generate OTP. Here is how it looks like.

Step #3: You will get an OTP on your mobile, which you need to enter on the site and click on submit. You will see the massage of successful registration for Aadhaar linking with LIC.

It might take few days to link your Aadhaar number with your Policy. Once this linking process is completed after verifying your details from UIDAI, you will be informed via SMS/e-mail on your registered mobile number or mail-ID. You can also watch this video to know the process.

Online Process for updating Aadhaar in LIC policies

You can also have an option to visit your LIC branch and fill up the offline form to link your adhaar and PAN with your policy. Make sure to take an acknowledgement letter once you complete the process.

How to link your Aadhaar and PAN with non-LIC policies?

Each and every insurance company has implemented the solution of linking Aadhaar with policies and you will find a dedicated page on their website. Just search for “Aadhaar + PAN + Linking + <<enter Insurance company>>” in google and you will surely get the link for completing the Aadhaar linking process.

However we are putting up a small list of some insurance companies and their respective links to make it easy for you.

[su_table responsive=”yes”]

Sr. No.	Insurance Companies	Link to update Aadhaar and PAN
1	ICICI Prudential	https://www.iciciprulife.com/services/update-your-aadhaar.html
2	SBI life insurance	https://www.sbilife.co.in/en/aadhar-updation-form
3	HDFC standard life insurance	https://cp.hdfclife.com/Aadhar_Info/Default.aspx?Source=Website
4	Max life insurance	https://www.maxlifeinsurance.com/customer-service/aadhaar-update.html
5	Bajaj Allianz life insurance	https://general.bajajallianz.com/BagicNxt/ValidateAadhaarPAN/LinkDtlsCorpPortalDirect.do
6	Reliance Nippon life insurance	https://customer.reliancenipponlife.com/AadhaarUpdation/
7	Tata AIA life insurance	https://apps.tataaia.com/UnclaimedAmount/AadhaarDetail.jsp
8	PNB Metlife India insurance	https://www.pnbmetlife.com/wps/portal/Home/aadhaar_updation
9	Apollo Munich health insurance company limited	https://ekyc.apollomunichinsurance.com/ekyc/#/login
10	Star health and allied insurance company	https://retail.starhealth.in/updatecustomerdetails
11	Religare health insurance company	https://www.religarehealthinsurance.com/aadhaar-linking-verification.html
12	United India insurance company	https://portal.uiic.in/polclaim/tb/CustomerUpdateFirst.do

[/su_table]

Note that this takes just 1-2 minutes of your time, but its an important thing to complete. If you still have any doubt regarding this linking process you can leave your query in the comment section.

EPF Form 11 – Just fill one single form to transfer your EPF while changing jobs

Posted on October 23, 2018November 18, 2019 by Jagoinvestor

Good news …

Now it has become much easier to transfer your EPF accounts while changing jobs. You no longer have to file separate EPF transfer claims using Form-13 after changing jobs. It will now be done automatically. EPFO has introduced a new composite form called Form 11 that will replace Form 13 in all cases of auto transfer.

In this article I will tell you the process of transferring your EPF account in case you are changing your job.

Transfer EPF account online

EPFO i.e. Employee’s Provident Fund Organization has introduced the online portal to transfer your EPF account from one employer to another employer.

How to transfer EPF online automatically in case you change your job?

Old Process –

Earlier, transferring EPF account from one employer to another employer was quite a hassle for an employee for which employees needed to wait for a prolonged time period. As per the old process, one had to complete the process only through offline mode which resulted in various problems like misplacing your documents, taking a long time to get the claim approved and a communication gap which had proved as a major problem.

New EPF composite form 11 –

Form 11 is a composite declaration form, which includes all the basic details of the employee such as Name, registered mobile number, bank account number, PAN number, date of birth, date of joining, etc.

From now on, employees have to fill only form 11 to his employer at the time of changing his job, and his EPF account will be transferred to his new employer automatically. But for this process employee’s UAN must be linked with his Aadhaar number, so that the employer can verify employee’s details and e-KYC.

The introduction of this new online portal has saved lots of effort from every employee and made this process a lot easier.

Let’s see the process of how to transfer EPF online.

Online mode of transferring EPF Account:

Here in this process, I have classified all the steps into 3 categories according to the work done by employee, employer, and EPFO. Now let’s see the steps –

What employee has to do –

Fill form 11 – providing all your details.
Provide all the details regarding your previous job.
Sign and submit this form to a new employer.

What employer has to do then –

Get the form filled by the employee and check the details entered.
First, enter all the details of the employee and then upload form 11.

Further process –

The employee will get an SMS on his registered mobile number to inform him that his auto-transfer request is in process.
Once the process of transferring the account is completed, the employee will be informed via SMS or e-mail ID register with UAN.

The process will be completed unless –

Employee stops it in between
The new employer deposits his 1st contribution

Watch this video to know how to merge EPF account from one company to another company:

Let us know if you understood the process? Have you tried doing this?

Congrats loyal employees – Gratuity limit raised from 10 lacs to 20 lacs

Posted on May 24, 2018November 19, 2019 by Jagoinvestor

Do you know anything about gratuity? It is one of the components of your salaried income which you will get at the time of your retirement. A lot of people are not even aware of the term gratuity and tax exemption on this amount.

In this article, I’m going to tell you what is a gratuity, how it is calculated and how much tax exemption you can get on this amount.

Gratuity

Recently limit of gratuity payment has been increased from Rs.10 lac to Rs.20 lac. This hike is a kind of good news for employees who are working in the non-government sector for more than 5 years in the same company.

First of all, let me tell you what is a gratuity.

Meaning of Gratuity

Gratuity is the reward given in the form of money by an employer to his employee for being loyal to the company and completing 5 or more than 5 years of service in the same company.

Various countries have different gratuity limit. In India, this limit was Rs.10 Lac earlier but after implementation of the 7th pay increment of salary this limit has been increased from Rs.10 lac to Rs.20 lac.

Mode of Gratuity payment:

Just like your provident fund gratuity is also paid totally by the employer only. It depends on the employer’s decision that either he will pay you this amount or he may take a group gratuity plan with an insurance company. The employee can also contribute to his gratuity if it is paid through insurance company whereas it is not mandatory.

How gratuity is calculated?

Once you complete 5 years of your service, gratuity will be calculated for 15 days per year of your employment. The total working days considered are 26. It will calculated the number of years of your employment.

While considering years of service if the time period is more than 6 months then it will be considered as 1 year. For example, if your service period is 5 years and 7 months then for gratuity calculation it will be taken as 6 years.

Below are the terms taken into consideration while calculating gratuity:

Last drawn salary including basic pay and dearness allowance.
No. of years of your employment.
Paid for 15 days per year of employment considering working days as 26.

The formula for calculating gratuity is given below.

Gratuity formula

Let’s take an example of gratuity calculation.

Suppose you are working with a company from the last 5 years and 7 months and your salary is Rs.50,000 including DA. Then your Gratuity will be –

= 50000*6*15/26

= Rs.1,73,076.9

At what time gratuity is given?

Gratuity is a kind of superannuation. When a person completes 5 or more years of his service in the same company then he is eligible to get gratuity.

The criteria for gratuity payment is given below.

Retirement of employee
When an employee resigns the job after completing 5 years.
In case of death or permanent disability because of an accident.

The criteria of completing 5 years of employment will be relaxed in case of death or permanent disability caused due to an accident. In this case, the employer will pay gratuity for 15/26 days of every completed year of service.

Companies are supposed to pay Gratuity?

The gratuity act was originally passed in 1972. This act covers all the workers or employee’s in various companies, factories, mines, etc. As per this act, all the companies who have at least 10 employee’s have to pay gratuity.

If a company has 10 employee’s though for a single day in a period of 12 months then the company is eligible for paying gratuity.

Who is eligible to get Gratuity?

There are 3 criteria’s for an employee to become eligible for Gratuity which is as:

The employee should retire after completing 5 years of service in the same company.
Employee must resign after 5 years of service in the same company.
In case the Employee passed away or suffers from any kind of deficiency while he was still working.

Whereas as per the rule under section 4(2), 5 years doesn’t mean 365 days/ year. As per this rule, an employee who satisfies the criteria given below is eligible for Gratuity, the criteria are as –

The employee should work 240 days a year – if the company has 6 working days.
The employee should work 190 days a year – if the company has 5 working days

This rule is will not be applicable if the employee dies or becomes disable while he is still working. In that case, the company will provide Gratuity to such employee or the nominee.

Is gratuity Amount Taxable?

In the current situation all the government employee has a tax benefit on their gratuity. There will be no tax on the amount received as gratuity for government employees for state government, central government or a local authority.

For non-government i.e. private sector or public sector employee’s tax exemption is depending upon either the employer company is covered under gratuity act or not.

1. Employer covered under payment of gratuity act:

When a person is working in a private sector and his employer company is covered under gratuity act then he can get tax exemption on his half months salary i.e 15 days salary of every year of his employment.

2. Employer not covered under the payment of gratuity act:

When your employer company is not covered under the gratuity act then you can get tax exemption on any one of the three options given below. Whichever is less will be considered for exemption –

Rs.20,00,000
Actual gratuity received by an employee.
15 days salary of every year of employment.

[CP_CALCULATED_FIELDS id=”6″]

Change in taxable income because of hike in gratuity limit:

Hike in gratuity limit is more beneficiary for employee’s working in private or public sectors. In any case, government employees are getting tax exemption on the entire amount of gratuity payment.Let’s see the difference in tax exemption after this hike in the gratuity limit.

I hope you got an idea of calculating gratuity and tax exemption on it. If you have any query let us know by leaving your reply in the comment section.

5 simple steps to check EPF balance through UMANG platform

Posted on February 5, 2019November 16, 2019 by Jagoinvestor

After the launch of the BHIM and TEZ app, the government of India has now launched a new multi-channel platform which is known as Umang App. This move has been taken by the GOI to unite all the government services and schemes in one place and make it more convenient for all the citizens to take the benefit of these services.

umang app download from google play or app store

What is UMANG APP?

Umang (Unified Mobile Application for New-age Governance) is an all-in-one mobile app that has 1200 services including state and central government. It is a multi-channel platform that is absolutely free for everyone. This app will reduce your efforts of going to the regional government offices. It will also save you precious time and energy.

How to register for the Umang app?

Downloading and registering for the Umang app is as easy as downloading other apps from the Google Play Store and the iPhone app store. It can be completed with a few simple steps. Let me tell you how?

Download the Umang app from your mobiles Play store

Select preferred language and click on terms and conditions

Click on register (if you don’t have login id and password) and proceed by entering your mobile number (make sure that you have this number in front of you because you will receive an OTP)

Enter that OTP and proceed to set MPIN.

Now enter all the other details like your name and all and click on submit.

Once you save all the data then you get confirmation at your registered mobile number .It also says if you have not updated your details then you can give missed call at this number- “1800-11-5246.”

That’s it. With these simple steps, you will be registered with the Umang app. If you enter your Aadhaar number, it may use your Aadhaar number for E-KYC purpose and your data linked with your Aadhaar will be automatically linked with the Umang profile. You don’t need to provide any other details for the registration process.

Watch this video to know about all the features of Umang app :

Many of our investors, when we ask them about their accumulated balance in their Provident fund account or pension fund, they don’t have any idea about the same. So for all those investors, Umang app is very useful to get to know the balance of all their investments in EPF/PPF, or other government schemes, on just a few clicks. So, in this article, we have focused on how to check EPF balance. By following the same process you can get to know about other government schemes balance.

What is EPFO?

EPFO (Employee Provident Fund Organization) assists the Central Board in administering a compulsory contributory Provident Fund Scheme, a Pension Scheme and an Insurance Scheme for the workforce engaged in the organized sector in India.

How to check EPF balance and view passbook on the Umang app?

Step#1 – Open the Umang app and click on to EPFO :

Once you click on the Umang app and click EFPO. After you click EFPO the below window opens. Then click on to employee-centric services to know your EPF balance.

Step#2 – Click on to view passbook :

After clicking on to employee-centric services, below window appears. Now click on to view passbook and wait.

Step#3 – Login :

After you click on to view passbook now you will have to log in. For login, you need UAN (Universal Account Number) allotted by the EPFO to every employee that contributes to PF. You can ask your employer for your UAN number. Once you enter UAN number, you will have to click on get OTP. You will receive OTP on your registered mobile number. Put the OTP and log in.

Please note – If you leave your current job and move to another job then your UAN number will not change. This UAN number will be with you forever.

Step#4 – Again click on to view passbook :

After you log in the below window appears. You will have to click on view passbook and

Step#5 – Details of your EPF balance :

After you click on to view passbook the below window will appear which will show you the entire EPF balance created during your employment with various employers. You can open each of the links that are mentioned employee wise to see complete details of the deposit made towards PF.

List of other services available on UMANG APP:

Central Services :

AICTE ( All India Council for Technical Education)
Aadhaar Card
Bharat Bill Pay
Bharat Gas (BPCL)
Buyer Seller – mKisan (Sell product to Better Price)
CBSE (Central Board of Secondary Education)
CHILDLINE 1098 (Night and Day)
CISF (Ministry of Home Affairs, Govt.of India)
CPGRAMS (Centralized Public Grievance Redress and Monitoring System (My Grievance)
Crop Insurance (Department of Agriculture, Cooperation and Farmers Welfare)
CRPF (Central Reserve Police Force)
DAY – NULM (Deendayal Upadhyay Antyodaya Yojana National Urban livelihood Mission)
Digi Sevak (Digital India Volunteer Management System)
Directorate of Marketing & Inspection (Department of Agriculture, Cooperation and Farmers welfare)
e-RaktKosh (A Centralised Blood Bank Management System)
eMigrate (Ministry of External Welfare)
ePashuhaat (GPMS Transportal)
ePathshala (National Council of Educational Research and Training)
EPFO (Employees’ Provident Fund Organisation)
eRahi Sukhad Yatra (National Highways Authority of India)
ESIC – Chinta Se Mukti (Employees’ State Insurance Corporation)
Extensions Reforms Monitoring System (Ministry of Agriculture and Farmer Welfare)
Farm Mechanisation (Ministry of Agriculture and farmer Welfare)
Goods & Service Tax Network ( Ministry of Finance)
HP GAS
INDANE GAS (Indian Oil Corporation Limited)
Kendriya Vidyalaya Sangathan
Khoya Paya (Citizen’s Corner of Track Child)
Kisan Suvidha (Ministry of Agriculture and Farmer Welfare)
MADAD (Ministry of External Affairs, Government of India)
Ministry of Petroleum & Natural Gas
My Pan (Income Tax Department )
National Consumer Helpline (Department of Consumer Affairs)
National Scholarship Portal (Ministry of Electronics and Information Technology, Government of India)
NDL India (National Digital Library of India)
NPS (Retired Life ka Sahara, NPS hamara)
ORS (Online Registration System – Patient’s Portal for e-Hospital)
Parivahan Sewa – Sarathi (Ministry of Road Transport & Highways)
Parivahan Sewa – Vahan
Passport Seva
Pay Income Tax
Pensioner’s Portal (Department of Pension and Pensioner’s Welfare)
Pharma Sahi Daam (National Pharmaceutical Pricing Authority)
Pradhan Mantri Awas Yojana – Urban
Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
Soil Health Card (Department of Agriculture, Cooperation & Farmers Welfare)
Swayam Prabha (Free DTH Channels for Education)
TRAI (Telecom Regulatory Authority of India)

State Services :

AKPS (Annapurna Krishi Prasaar Seva – Agro Advisory Service)
Chhattisgarh e-District (Citizen Services on Mobile)
District administration Department (ASSAM)
e-Dhara Land Records (Government of Gujarat)
e-District Chandigarh (Chandigarh administration)
e-District Manipur (Government of Manipur)
e-District Mizoram (Governance in Mizoram)
e-District Nagaland (Government of Nagaland)
e-District Uttarakhand
e-Mitra Rajasthan (Government of Rajasthan)
Election Department (ASSAM)
eSampark Chandigarh (Government of Chandigarh)
General Administration Department (ASSAM)
m4agriNEI (Agro Advisory Service)
MP BSE (Madhya Pradesh Board of Secondary Education)
MP e-Nagar Palika (Directorate of Urban Administration and Development)
MP MSME (Department of Micro, Small and Medium Enterprises)
MP RCMS (Revenue Case Management System)
MP Transport ( Department of Transport)
Municipal Administration GOA
NDMC (New Delhi Municipal Council)
OJAS (Online Job Application System)
PHED Haryana (Public Health Engineering Department)
Political Department (ASSAM)
Revenue Department (Tamil Nadu)
Revenue Department (Himachal Pradesh)
Revenue & Disaster Management (Badalta Haryana – Badhta Haryana)
Revenue Department ASSAM
Revenue Department GUJARAT
Revenue Department – Delhi (eDistrict Delhi)
SARAL (Transforming Citizen service delivery in Haryana)
SSRD KYRC (Special Secretary Revenue Department – Government of Gujarat)
The welfare of Plain Tribes & Backward Classes Department (ASSAM)

As you now know that, with just a few clicks you can know your EPF balance. I have checked mine, what are you waiting for go and check yours. If u still have any doubt or query please ask in the comment section.

DigiLocker – A Free and Secure way to store your important documents online

Posted on May 15, 2018November 6, 2019 by Jagoinvestor

Digilocker is a Digital Locker service provided by the Indian Government for the citizens to reduce the efforts of carrying hard copies of their documents everywhere. It is a part of the digital India campaign.

Many times it is difficult to carry the hard copies of your documents everywhere. And there is also the possibility of misplacing or losing your documents. So to reduce your efforts and keep your documents safer, the government has introduced this new feature where you can save all documents and use them whenever you want.

Now, let’s see how digilocker works.

DigiLocker

Key Components of Digilocker

When you log in to Digilocker account, on the first page you can see some key components which are useful for the user. These key points are as:

Dashboard
Activities
Shared documents
Issued documents
Uploaded documents
Issuer
Requester

Features of Digilocker:

Digilocker is available in both website and Digi locker app form. Various features of Digilocker make it more attractive and convenient for the users. Some of the main features are listed below:

1 GB space.
Part of digital India.
Can store both uploaded and issued documents.
You can then also share this URI link of the documents to others when you need to submit your document anywhere.
Both Aadhaar holder and non Aadhaar holders can open this account.
Easy and more secure to use.

What are issued and uploaded documents?

Issued documents:

Issued documents are the documents which are shared by the issuer to the Digi locker of the user through push or pull way of sharing documents.

Push way means sharing the documents to the Digi-account of the user by using his Aadhaar number to search his Digilocker account if he has already linked it with his Digi-account.

Pull way is the way of sharing documents through URI link if the user doesn’t have his Aadhaar number linked with his Digi-account.

Uploaded documents:

Uploaded documents are the scanned copies of the documents which are saved by the user to his Digi-account.

How to use DigiLocker?

To take the benefit of Digilocker account you have to sign up first which is very simple. To start a Digi-account first sign up for Digi locker and create a Digi-locker account. Go through the steps given below to sign up for a new Digilocker registration.

Step 1: Download Digilocker app or visit the government authorized Digi locker link https://digilocker.gov.in and click on the sign-up button on your right.

Step 2: Enter your mobile number and click on continue. You will get an OTP on your registered mobile number. Once you enter the OTP and click on continue you will be directed to the next page.

Digilocker signUp step1

Step 3: Now enter your username and password and click on sign up.

Digilocker signUp step2

Step 4: Here you will be asked to enter your Aadhaar number. To link your Aadhaar with your Digi-account, your mobile number must be registered with Aadhaar so that you can get OTP. If your mobile number is not registered with Aadhaar, you can skip this step by clicking on the “continue here” button given below.

Digilocker signUp step3

That’s it. Your Digilocker account is ready to use now.

Digilocker account

You can read the user manual for Digilocker here.

Three entities in Digilocker:

Any person having an Aadhaar card can open a Digilocker and save his documents safely in it. There are generally three categories of people considered as the users of Digilocker. These categories are made on the basis of users of this facility.

Three entities in digilocker

1) Citizens/Individual:

The first category includes the person holding the Digi locker account. The person here has all the authorities regarding his Digi locker. Only he can manage the account. And no one can use his Digilocker documents without his permission. On the other hand, this person can use his documents whenever and wherever he wants.

For example: if you go to any government office for some very urgent work and then you realize that you have forgotten to bring one of your document which is very important. what will you do in such a situation?

If you hold a Digilocker account and have saved a copy of that document in that account then you can take print of that document or can simply share the URI link.

2) Issuer:

The issuer can be any Governmental or private institute or company. This issuer provides the e-documents through URI by using persons Aadhaar number. It will help the issuer and the receiver both to provide the document on time and avoid delay.

Besides, there is no need to send the documents physically to each individual on their respective address and track those documents in case that person doesn’t receive it.

3) Requester:

Requesters is the institute or individual who uses your e-documents through Digilocker for the verification or any other legal procedure. When you provide your URI link to the requester then you don’t need to submit any hard copy of that document.

Requester can be universities or any government officials etc.

Benefits of Digilocker:

All the documents shared are paperless so it reduces the efforts of maintaining the paper documents for government officials.
When you save any document to your Digilocker account you can add you e-sign so that it becomes a more authenticated document with self-attestation.
The issuer can directly issue the documents to an individual which makes the document delivery procedure more safe.
User can use the documents saved in Digilocker anywhere, at any time which proves more convenient for the users.
When you use the URI link of the documents directly shared by the issuers, it reduces the possibilities of submitting fake documents.

#Digilocker helpline:

If you have any complain regarding digilocker then you can send your query at [email protected].

Now get a short term loan in your Paytm account by ICICI Bank

Posted on December 7, 2017January 11, 2019 by Jagoinvestor

Paytm, India’s largest mobile payment network has partnered with ICICI bank to provide short term small loans to its users. This is India’s first scheduled commercial bank tie-up with a mobile payment platform, and it is named as Paytm-ICICI bank postpaid.

The main motive behind this partnership is to provide 24/7 digital money support to millions of Paytm and ICICI banks common customers across all over India.

This feature is introduced to ease the daily expenses of all ICICI bank customers who are using Paytm, by providing them Digital credit. The below image shows you how it works

Paytm ICICI bank tie up

As per this tie-up, you can take digital credit in your Paytm account from ICICI bank, which you can use for your daily expenses like paying bills, booking flight or bus or even buying a movie ticket. You can use this credit anywhere where Paytm payment is accepted.

Please watch below video to know the details.

Type of loan and interest rate

This credit will be interest free for first 45 days. If you repay it within 45 days, then you will have to to pay only the principle amount and no interest will be charged. But if you delay the payment for more than 45 days, then you will have to pay a late fee of Rs.50 and 3% interest.

How much maximum credit can you take?

This credit limit ranges from Rs.3000 to Rs 10000. It means you can take digital credit of minimum Rs.3000 and maximum of Rs.10,000. And if you have a good repayment history which means you payed all your credit loan in time, then the limit can be extended for you upto Rs.20,000.

Which means that this is going to be useful mostly to students and those people who are left with no money by the end of the month or have severe cash crunch.

Right now this facility is available for the customers of ICICI bank who are using Paytm, but soon all the Paytm users also can get benefit of this newly introduced postpaid digital currency.

Who should use this?

If you are using Paytm heavily and if you are the type of person who has severe cash crunch and want to take short term credits, then this facility if for you.

We do not recommend this facility to be used unless you really need the money. Its better to always maintain liquidity in your bank account and not fall for this kind of service.

I hope this information is useful for you. If you have any query, leave your reply in the comment section.