Questions that baffle me !!!

– By Meghashyam Sinkar
Sometimes observing people make you ponder , make you learn, make you laugh but sometimes make you puzzle .

On my recent vacation ,I observed people trying to break the line and enter in between while boarding the plan . The question came to my mind why such strange action /confusing behaviour inspite of having allotted seats .

That made me thinking of such confusing behaviour in investment world . Listed down some of such questions which baffle me .

During first interaction with the new client at his office , he mentioned that equity is risky and hence he has stayed away from it since last 10 yrs . After 30 mins , he goes out for smoking . When I enquired further about the number of cigarettes he smokes in a day . He said ten (10) and he finds investing in equity risky. What is more risky smoking cigarettes  or investing in equity ? I am confused .

Lot of investors get into LIC policies that to number of them and keep on investing in  it after agents convince them with the name of LIC brand or sovereign security . If the product is really good then why do you really need so many agents /middlemen inspite of having offices across most of the cities and need to pay them hefty commissions . LIC could have easily done it at least in the current age of technology.  I am confused.

When investors are advised to do 15- 20 years of long term SIP to get best risk adjusted returns then they are not sure of their future income for commitment . But the same investors take the home loan of 20 years wherein EMI is mandatory and investment is voluntary which can be paused , reduced or stopped completely unlike EMI. I am Confused.

Investors are obsessed with higher fixed interest rate and risk their principal amount for few percentage higher interest rate . Dont they ask these questions to themselves … Why someone is offering such higher interest rate ? Is that company in love with you ? Is trustworthiness questionable ? I am confused .

There are lot of trading classes which advertise  “ Earn Rs 1000 daily from stock market with capital investment of Rs 1 L   . Then why the class owners running the classes on Saturday & Sunday’s at the course fee of Rs 5000/- per person . Why don’t they earn these returns themselves without revealing the secret to become billionaire . I am confused .

Does it confuse you too ? Please share your thoughts if any or any strange behaviour . Meanwhile observation continues ……

Happy Investing !!!!

Be Careful

– By Rahul Mone

We receive almost on regular basis news like ……

  • Bank employee cheats senior citizen of a crore……..
  • Hackers steal Rs.20K from bank account……..
  • Company loses Rs. 24 lakhs to phishing scam…….
  • Retired Judge loses Rs.18k to card cloning…….
Fraudsters play with our psyche and lure us to go for easy money.The way we protect our Life by taking a Life and Health Insurance policies, we should protect our hard-earned money by not getting tempted by such easy traps.

Below are some of the Dos/ Dont’s  recommended to protect our Money.

BUT NO ONE CAN SAVE US IF WE REVEAL OUR OWN DATA.

For Bank Accounts:

  • Keep your Card/ Cheque Book in safe place.
  • Don’t keep signed cheques in a cheque book.
  • Never handover blank signed cheque to your Bank Relationship Manager as well. Always give crossed and mention Payee’s name on it before handing it over to anyone.
  • Always note the details on the counter slip in cheque book and do regular reconciliation with Bank statement.
  • Don’t log in to your Net Banking Account from unknown computer. Always log in through official bank website. (starts with https:// and not http://). Remember to log off from the website once you complete the transaction. Don’t close the browser window before logging out.
  • Check your last login date and time each time you log in.
  • Check if you are receiving SMS alerts for all the transactions, if not check with Bank immediately.
  • Don’t share password to anyone.
  • Memories your PIN, never write it anywhere.
  • Don’t take assistance from stranger at ATM.
  • Always press cancel key before moving away from the ATM.
  • Never use auto password saving option while logging in /out – the Banking website during/ after the transaction as almost all the website ask for the same.( Google Chrome/edge etc )
  • Some Banks offer option of switching transactions on / off for ATM Withdrawal / Online transactions / International Transaction etc.You can switch off the modes which you are not using to reduce risk.

For Credit Cards :

Card fraud basically involves theft of identity or information on your cards. This information is then used to make ATM withdrawals or conduct online or offline transactions.

No. Of cases of Debit / Credit frauds also termed as Vishing, increased fromv880 in 2017 to 2446 in 2018.

  • Always keep it in a safe place.
  • Don’t share your card details.
  • In some Banks, there is a facility of setting a cap on your limits even though you have a higher limit. Set that limit as per your regular purchasing habits. Make International limit as ZERO if you are not travelling abroad.
  • Check all the details in your monthly Bills.
  • Don’t get your card out of your sight during any transaction.
  • Please note that your Bank, Card issuing authority or any Govt. agency will never ask for details to be given over phone or submit on an email link.
  • Be discreet on social media. Don’t reveal your critical data like DOB, Home address, phone number.
  • Beware that someone who approaches you for your details for a ‘lucky draw’ may be data vendors, looking to sell your details. Shred boarding passes, phone bills, bank statements etc as they may carry a lot of your personal data.
  • Guard your email with a strong password that is changed regularly. The 2nd password authentication is also crucial. As an OTP is generated every time one logs from a new device, thereby alerting against any risk.
  • Experts advise caution as most data is now leaked through apps. Apps demand permissions and seek access to contact list, camera, sms, location etc. These apps also mine other people’s data stored in your phone. While you cannot stop using all apps, you can revoke permission given to apps.
  • Always keep your Bluetooth off when not in use. Avoid public Wi-Fi.

Customer Protection Policy – Electronic Banking Transactions

What to do when you find that some fraudulent transaction has happened in your Account or with your Card.>>>>>>> You need to immediately report the same to the concern bank and keep record of the same as the communication systems used by banks to send alerts and receive their responses there to record the time and date of delivery of the message and receipt of customer’s response, if any, to them. This shall be important in determining the extent of a customer’s liability.

Keeping in mind the increasing thrust on financial inclusion & Customer protection, RBI had issued a circular on Customer Protection – Limiting liability of Customer in unauthorized electronic Banking transactions. i.e. RBI/2017-18/15DBR.No.Leg.BC.78/09.07.005/2017-18 dated July 6,2017.

Unauthorised Transaction due to Bank’s negligence
Time taken to report the fraudulent transaction from the date of receiving communication from the Bank Customer’s Maximum Liability (Rs.)
Customer to report as soon as possible to prevent future losses Zero Liability
Unauthorised Transaction due to Customer’s negligence
Time taken to report the fraudulent transaction from the date of receiving communication from the Bank Customer’s Maximum Liability (Rs.)
Customer to report as soon as possible to prevent future losses 100% liability till it is reported to Bank
Maximum Liability of a Customer in case of unauthorized Electronic Transaction where Responsibility is neither with the Bank nor with the customer but lies elsewhere in the system & customer has reported unauthorized transaction from transaction date within working days specified in following table:
Type of Account Within 3 working days (Rs.) Within 4 to 7 working days (Rs.)
BSBD Accounts Zero Liability 5000
All other SB accounts 10000
Pre-paid Payment Instruments and Gift Cards 10000
Current/ Cash Credit/ Overdraft Accounts of MSMEs 10000
Current Accounts/ Cash Credit/ Overdraft Accounts of Individuals with annual average balance (during 365 days preceding the incidence of fraud)/ limit up to Rs.25 lakh 10000
Credit cards with limit up to Rs.5 lakh 10000
All other Current/ Cash Credit/ Overdraft Accounts 25000
Credit cards with limit above Rs.5 lakh 25000
Please Note : Any unauthorized electronic banking transaction reported after 7 working days will be treated as 100% customer liability.You should always stay SAFE in the ONLINE world ! So, now you have an Insurance policy which can protect you from risks such as risk of damage to your e-reputation, fraudulent  transactions with your credit cards, debit cards, theft of your personal information etc.for you and your family.

Please write us on support@pentagraph.co.in or call us on 74100-97093 to know more on this insurance if interested .

We are sharing the short video from famous serial on Sony – Crime Petrol which is on similar line . If not seen earlier , then worth watching it.

Please click here to see the video Hope you find this information useful .

Safe Investing !!!!