In this post we cover the major Personal Finance news that happened in the week of January 4 – 10 , 2016
10-year National Savings Certificate Discontinued
National Savings Certificate (NSC) issue IX which had tenure of 10 years and was offering interest rate of 8.8% has been discontinued with effect from December 20, 2015. This was done as the instrument was locking a high interest rate for a long period of time in a falling rate scenario. The 5 year NSC offering 8.5% is still available. Click here to read more on ET.
ITR Verification Deadline Extended to January 31
The income tax department has extended the verification deadline for ITR V till January 31, 2016. Ideally the verification for the ITR filed should be done within 120 days. In the extended period you would not be able to e-verify your returns. You have to go back to the old method of printing the ITR V, signing it and posting it to I-T Department CPC in Bangalore. Click here to read more on ET.
Negotiable Instruments (Amendment) Act, 2015, notified
The government has notified the Negotiable Instruments (Amendment) Bill, 2015 which clarifies the jurisdictional issue for filing of cheque dishonour cases. Now the case can be filed at the court in whose jurisdiction the payee bank falls. This act has come in force since June 15, 2015. Click here to read more on ET.
LIC launches Jeevan Labh
To encash the tax saving investment season LIC has launched LIC launches Jeevan Labh Plan. This is a limited premium paying, non-linked endowment assurance plan.
Lifelong Savings Plan by Reliance Life Insurance
Reliance Life Insurance has launched Lifelong Savings plan, a traditional with profits endowment insurance plan that also offers a loan facility to policyholders. In the standard variant, the lump sum at maturity comprises the base sum assured and guaranteed additions. The extended cover variant provides an option to extend the life cover.
Kotak Premier Life Plan launched
Kotak Life Insurance has launched Kotak Premier Life Plan. This limited premium payment, participating whole life plan, provides customers the option to save and protect up to 99 years of age. It has the income payout options after premium payment term ends and two bonus options.
Word of Advice:
It’s tax saving season and all life insurance companies would launch new plans to capture this market. Do not invest in these endowment/ whole life insurance plans blindly as the returns are poor, the insurance provided in not enough and the amount is locked in for a long time.
Read Best Tax Saving Investments in case you are confused about tax saving investment options.
Universal Sompo General Insurance launched KBL Suraksha
Universal Sompo General Insurance has rolled out a group personal accident insurance KBL Suraksha, for savings bank account holders of Karnataka Bank. The annual premium starts from Rs 50 for a sum insured of Rs 5 lakh and Rs 100 for a Rs 10 lakh cover. The cover is being extended to customers between 18-70 years age.
Axis Bank introduces eSign with e-Mudhra
Axis Bank in association with e-Mudhra has introduced eSign, an online electronic signature service allowing Aadhaar holders to digitally sign documents. Customers will be able to transact with the bank without having to physically sign application forms.
eNPS developed by PFRDA
eNPS an online platform to enable registration of new NPS subscribers and allow online contribution for existing NPS subscribers has been developed. As of now, account holders of the following ten banks can do online KYC and open NPS through eNPS: Allahabad Bank, Bank of India, Bank of Maharashtra, Oriental Bank of Commerce, South Indian Bank, State Bank of Travancore, State Bank of Hyderabad, State Bank of Patiala, Tamilnadu Mercantile Bank and United Bank of India.
Also Read: How to Open NPS Account?
PFRDA has asked other banks to join eNPS.
Existing subscribers with PRAN can make subsequent contribution online through net banking /debit card/credit card at any time and the same will be credited in the subscribers PRAN account on T+2 basis.