Friday 25 May 2012


What is Aadhaar?

Aadhaar is a 12 digit individual identification number issued by the Unique Identification Authority of India (UIDAI) on behalf of the Government of India. It is a random number generated, devoid of any classification based on caste, creed, religion and geography.

What is this Aadhaar for?
• This number will serve as a proof of identity and address, 
anywhere in India.
• Each Aadhaar number will be unique to an individual and 
remain valid for life.
• Aadhaar number will help you provide access to services like banking, mobile phone connections and other Govt. and Non-Govt. services in due course.
• Great potential for not-so-privileged, poor and the 
marginalised people, mostly living in the rural areas.
• Facilitate entry for poor and underprivileged residents into 
the formal banking system.
• Giving migrants mobility of identity.
• Financial inclusion with deeper penetration of banks, 
insurance and easy distribution of benefits of government schemes.


Who is eligible for Aadhaar?
Any individual, irrespective of age and gender, who is a resident in India and satisfies the verification process laid down by the UIDAI, can enrol for Aadhaar.

What does it cost?
Each individual needs to enrol only once which is free of cost.

Is Aadhaar mandatory?
No, it is voluntary.

Does every member of a family need Aadhaar? 
Each individual of a family including infants will have a separate Aadhaar UID number.

Where Should I go to get the Aadhaar?
You can go to any authorized Aadhaar enrolment centre anywhere in India. The list is available in the link below.

What documents are needed for it?

• Aadhaar application form
• Residence proof
• Identity proof with photo
Common proofs of identity and address are election photo ID card, Ration card, passport and driving license.
Photo ID cards like PAN card and Govt. ID cards are permissible for identity proof. Address proof documents also include water – electricity – telephone bills from the last three months.

What if I don’t have these common ID proofs?
In case you do not have above common proofs, Certificate of Identify having photo issued by Gazetted Officer/Tehsildar on letterhead is also accepted as PoI. Certificate of Address having photo issued by MP or MLA /Gazetted Officer/Tehsildar on letterhead or by Village Panchayat head or its equivalent authority (for rural areas) is accepted as valid PoA.
Even if someone in a family does not have individual valid documents, the resident can still enrol if his/her name exists in family entitlement document. In this case the Head of Family in entitlement document needs to be enrolled first with valid PoI & PoA document. The head of the household can then introduce other members in the family while they are enrolling. UIDAI accepts 8 document types as Proof of Relationship.

What if no documents are available?
Where there are no documents available, resident may also take the help of Introducers available at the enrolment centre. The Introducers are notified by the Registrar. 

Do I have to go to the Aadhaar centre?
Yes you have to personally visit the centre.

What is the process to get the Aadhaar?
• Go to the enrolment centre
• Fill your personal details in the form.
• Your photo, finger-prints and iris scan will be taken.
• You will get an acknowledgment slip with a temporary enrolment number and other details captured during enrolment.
• After verification of your information an Aadhaar number will be generated and mailed to your address.

How long it will take to get the Aadhaar?
Approximately 60-90 days. In case of any errors, a rejection letter guiding resident to re-enrol is dispatched.

Aadhaar helpline toll-free number is +919049555929


Aadhaar application form
How to fill the form?
• USE CAPITAL LETTERS TO FILL THE FORM (LIKE THIS LINE)
• In Part A, in Section 'Name' fill the name of the applicant
• Below that tick any of the options 'Mother' or 'Father' or 'Husband' or 'Guardian' option. Write their name. For children below 5 years the name of the Father/Mother/Guardian is must.
• Write Date of birth of applicant in format Day/Month/Year. If the date of birth is not known, write approximate age in years.
• Tick the applicant's gender.
• Write complete address of the applicant, where he/she is currently living.
• In Part B, Additional information can be given, like phone/mobile number, email address. These are optional.
• In Part C, Financial information can be given to open a new Aadhaar enabled bank account or link your existing bank account to Aadhaar number. This option is very useful, as in future the government intends to use Aadhaar number for subsidies and other government schemes. Thus opening an Aadhaar enabled bank account or linking your existing bank account to Aadhaar would be very useful.
• If you are linking your existing bank account number, write the complete account number (not the short one that is sometimes written on your passbook especially national banks).
• Write clearly, avoid cuttings.

Check Aadhaar status online
https://portal.uidai.gov.in/uidwebportal/enrolmentStatusShow.do?_HDIV_STATE_=JTdFJUFEJTNDYiVGMyUxRSVBMiUxOCVBNCU4OVdwWlAlQzUlOUQlM0MlRTYlRkUlMDEyJUQ5JTE4JTJDUyUyRlAlRkQlODIlMTZkJUE1JUZDJTNDJTg

Sunday 20 May 2012


Internet Scams… Income Tax Refund

Internet scams have become very common these days. We often receive mails from someone wanting to transfer money from Eastern Europe or some widow of a war lord in Africa asking for our help in return for a fortune.

Well this is the season of Income Tax refunds……..

The latest internet scam targeting Indians specifically is in the form of an email that tells you about income tax refund, but is actually trying to get your online banking log-in ID and password so that your account can be emptied!

This is phishing!
Phishing is an e-mail fraud designed to steal your web identity and capture your personal data like Credit/Debit Card numbers, bank account information, or other sensitive financial information.
Click below for full story....

Quit smoking and get a Hyundai EON!

Many of us spend over Rs.100 per day on smoking and other forms of addictions.
If we could give this up and start investing in mutual funds by way of Systematic Investment Plan (SIP) this amount of Rs.3,000/- per month would grow to Rs. 1,37,038/- assuming the equity mutual fund schemes generate 15% CAGR for the next 3 years.

The on-road price of a Hyundai EON today is approximately Rs.2,77,273/-

Assuming the car price would increase by 4% every year, the car would cost Rs. 3,11,894/- after 3 years.


At this point in time withdraw the investment amount of Rs. 1,37,038/- and use this for the down-payment for the car.
Then the amount of loan to be availed from the bank will be Rs.1,74,856/-
Assuming the rate of interest to be 11% on reducing balance method for the car loan the EMI for 60 months will be Rs. 3,802/- per month.


Assuming your savings go up by 9% every year you could pay the EMI of Rs. 3,802/- instead of the SIP of Rs.3,000/- per month with no additional burden as your savings potential under this head would be Rs.3,885/- per month.


Stop the SIP and use the amount to pay this EMI.
There you go! The EON is yours and you are also healthy!
Simple isn’t it?

Slow & Steady Wins The Investing Race!


Slow & Steady Wins The Investing Race!

 

In the famous Aesop fable "The Tortoise and the Hare," a hare constantly teases a tortoise for moving so slowly. One day the tortoise challenges the hare to a race. The hare is so sure he'll win that he goes to a nearby field to eat cabbage while the tortoise crawls his way on the race course. Tired from the meal and the sun, the hare falls asleep about halfway through the course. To the hare's surprise when he awakes, the tortoise had beaten him to the finish line.

The moral of this fable, slow and steady wins the race, is often used in investing. It reminds people that they can be rewarded if they continually invest money over a long time period—like the tortoise winning by staying on the race course.

People who focus on getting rich quickly can make bad decisions and mess up their investment plan, and ultimately fail to reach their goal.

Let us look at the case of Suresh and Raman.
Suresh worked as a school teacher and saved Rs. 5000/- per month from the age of 30 till the retirement age of 60. He started a SIP in a diversified equity mutual fund that delivered 15% CAGR. Suresh had invested Rs. 18 lac in 30 years. His corpus was Rs.3,50,49,103/- when he was 60 years old! He is a typical tortoise investor – slow and steady.
Check these links for knowing the value of the investments after 30 years.

Raman on the other hand is a software professional earning twice as much as Suresh. He enjoyed a high lifestyle with lots of gizmos and foreign holidays. The latest car was a must for him. Only when he was 45 years old did he think about saving for  retirement and immediately started a SIP of Rs. 10,000/- per month till the age of 60 generating 15% CAGR, the same as Suresh. At 60 his corpus was only Rs.67,68,631/- although he was saving 10,000/- per month and had put away Rs. 18 lac in 15 years, the same as Suresh.
Check these links for knowing the value of the investments after 15 years.
Raman was the hare investor.
Just as in the fable Suresh turned out to be the winner.
For the same amount invested, look at the difference:
Suresh the tortoise has Rs.3.50 crore.
Raman the hare has only Rs.67.68 lac.
Now, that’s the power of compounding!

Like the Aesop's hare, hare investors are overconfident and turn a blind eye to the ravages of volatility, which take a long time to recover from. Tortoises, having sustained less damage, continue their slow but steady progress.
The math of recovering from huge losses may astonish you. Let's say your portfolio value is Rs. 15 lac and it loses 33 % of its value, leaving you with only Rs. 10 lac. Many believe they'd be back where they started if they gain 33 %. But this gain wouldn't restore their losses. They would actually need to make a 50 % gain to get back to Rs. 15 lac.
Investing is a marathon. Slow and steady wins the race. Trying to catch every rally and moving from one sector to the next ‘hot’ area of the market is a mug’s game. It makes you feel like you’re doing something but you’re really just chasing your tail.