railway travel insurance

Railway Travel Insurance Scheme: Review

What Is Railway Travel Insurance Scheme?

Narendra Modi launched the Railway Travel Insurance Scheme on 1st September 2016, to ensure safer journeys via Indian Railways. This is another revolutionary government scheme that aims at providing complete insurance to a person if they become a victim of an unfortunate train accident. The aim is to provide better accident relief facilities and ensure an overall safety as far as Rail journeys are concerned. The insurance cover that can be claimed is up to 10 Lakhs.

railway travel insurance

How To Apply For Railway Travel Insurance Cover

After booking and generation of E-Ticket via IRCTC website, an SMS will be sent to the citizen who has booked the ticket. That SMS will state that the Railway Travel Insurance can be availed by paying a nominal amount of 92 paise per passenger. Also, a link will be given in the SMS from where the user will be redirected to apply for the insurance. This insurance is, of course, optional and a citizen may or may not avail it as per will. Also, this insurance option is available to all passengers irrespective of the class and status of the ticket. Therefore, all confirmed, waitlisted and RAC passengers can avail this insurance.

Exemptions In Railway Travel Insurance

There are certain criterions under which a passenger cannot avail Railway Travel Insurance. They are as follows:

  • Any passenger traveling by local or suburban trains cannot avail this insurance.
  • This insurance is applicable only if the passenger is above 5 years of age.
  • Foreign citizens cannot avail this insurance.

This premium amount of 92 paise per passenger is non-refundable and hence will not be credited in case of cancellation of a ticket.

Compensation According To Railway Travel Insurance Scheme

As per the set norms, the amount of compensation in case of an untoward accident is as follows:

  • In case of death and complete physical disability: 10 Lakhs
  • In case of semi-physical disability: 7.5 Lakhs
  • In case a person needs to be hospitalized due to serious wounds: 2 Lakhs
  • Transporting mortal remains after an incident like dacoit attack, Riots, Shooting, etc: INR 10,000

To conclude, the Railway Travel Insurance Scheme is a necessary step that had to be taken, for the Rail Department to take better care of their passengers and avoid any unwanted accidents by being more alert about the track conditions, foggy weather or potential attacks.

Railway Travel Insurance Scheme: Application Policy

Railway Travel Insurance Scheme offers compensation, but that is liable to certain terms and conditions. The application policy states that the intimation towards claiming the premium should be made within four months within occurrence of the untoward event that demands a compensation. Then the claim will be approved by the Railway Insurance Department and the premium will be processed within 15 days. The compensation will be extended towards the aggrieved in form of a cheque of the premium amount. Thus the application and cancellation policy are flexible as it occurs within a short period of time.


10 Things You Need To Know About GST

The Union Budget 2017 that was introduced by Arun Jaitley on 1st February 2017 stated that the GST bill is to be implemented from 1st July 2017. Both the central and state government have signed an agreement in order to commence the implementation of GST. Though in its initial years post demonetisation, GST will be difficult on the operation form, but here the future is being considered. Thus, even though a tough stride has to be taken to maintain the GST reform initially it will help generate excellent revenues in future. Thus the fiscal year 2017-18 is very crucial with the advent of GST bill.

What is GST?

GST stands for Goods and Services Tax. The GST bill was to be launched long back in April 2014, but since it faced opposition it will finally be levied from 1st April 2017. The GST bill is the 122nd amendment of the constitution which will bring one of the largest economic waves in the country. The bill states that every state, region and district in India will follow a common taxation structure in case of goods, products and services delivered. This will lead to the demolition of other taxes like state level service tax and state level VAT( Value Added Tax). This unification in taxation system will ensure a stable economic system and will completely abolish corruption in market transactions.

What other changes will be seen in the constitution on the issue of GST bill?

With the 122nd amendment being issued an Article will be added in the constitution stating that the right to legislating GST will lie with the Central and the State Governments.

What is the governing body responsible for GST framing?

A governing body known as GST Council will be formed to legislate the GST. The chairman of this council Finance Minister at the Central level and the State Finance Minister at the State level. At State level, there can be changes as per nominated by the State Government. The other ministers who will be part of this council will be nominated from the Finance department at both Central and State Level.

What is the framework for implementation of GST?

The GST is divided into two parts: The State Goods and Services Tax (SGST) and the Central Goods and Services Tax (CGST). Both SGST and CGST will be simultaneously levied for market transactions. The Central Government will be responsible for collecting the CGST and the State Government will be responsible for collecting the SGST.

How will the CGST and SGST be decided?

The GST Council will be responsible for taking all decisions regarding levying GST at both Central and State level. They will be reviewing the market rates of all the products and applying the unified tax rates on all goods and services.  The GST council may also decide to waive taxes on certain goods and change the uniform rates based on their discretion.

What are the exceptions to GST scheme rule?

All alcoholic liquor will not come under GST and will be exempted from the taxes levied by GST. Also, non-renewable fuel resources will fall under varied rates as decided by the GST council. They will not be subject to the unified rate.

How will GST function in case of the Inter-State trade framework?

In the case of inter-state trading, an additional 1% tax will be levied apart from the GST. This tax will have to be paid for demand and supply of goods.

What if a State incurs heavy losses under the GST Scheme?

In the case of major losses incurred by any State under the GST Scheme, the Council will compensate for the losses by paying the lost funds to the State for a duration of 5 years.

What will be the positive results of issuing GST?

The economic worth of a country is defined by its GDP rate. This system of unified taxation would mean a complete transparency in market taxation systems and an equality as far as economic gains due to taxes are concerned. This would also mean better trading systems as GST will affect the export of goods. As a result, an increase in GDP will be seen. Thus the stability of economic system will be retained, giving a profit turnover of over 10 billion dollars in India.

What will be the CONS of GST system?

The GST will be issued in accordance with the global market taxation scheme. The global range of taxation is 14% to 22%. Thus the average range is seen to be between 18%-20%. So the GST issued will levy an 18% tax on all goods, products as services. While this will maintain uniformity, certain tax values which were originally low will now rise.

Direct Benefits Transfer

Direct Benefit Transfer – What is DBT Policy, Pros and Cons

What is DBT Policy?

DBT stands for Direct Benefit Transfer is a government scheme via which all subsidies taken by a citizen is directly transferred to the bank account of the beneficiary if a citizen is below the poverty line. The primary aim of DBT is transparency in the process of monetary benefits transferred by the government whereas charging subsidies below the poverty line are concerned.

Direct Benefits Transfer

How Is DBT Implemented?

The Direct Benefit Transfer implementation is made via the Aadhar card. The Aadhar card has the unique identity number of every citizen and is directly linked to their account. Thus using the Aadhar number it is possible for benefits to be transferred from the government so that subsidies can be given to individuals who are living below poverty line. Another major reason for taking this step is to eliminate excessive poverty in the country. Plus using an Aadhar number to transfer the money, would also ensure complete transparency and hence eliminate any means of corruption in government funding schemes.

PROS of Direct Benefit Transfer

The benefits that are observed through the implementation of this scheme are as follows.

  • It eliminates black money pilferage and ensures complete transparency in transactions.
  • DBT is an organized process that helps the financially unstable citizens of our country to gain benefits in subsidies like LPG with minimum effort and saves their money.
  • The poverty line is reduced and thus the financial gap in the community is somewhat bridged.
  • Since it is a government initiated scheme, there are no faults in the subsidies or delay in delivery of services.
  • Since subsidized gains are portrayed transparently in the market, there is proper regulation of the market price framework.
  • Economic finances circulated by the government will ensure some rise in the GDP.
  • These subsidies will help the rural people in the following areas: health services, the growth in net worth of a rural farmer, simplicity in the distribution of funds.

CONS of Direct Benefit Transfer

  • The subsidies will be funded by the government as the money will be directly transferred to the bank account. This will mean more money in the hands of the rural citizens below the poverty line. Now, India is not a completely developed country, so it can be possible that the citizen is not educated enough to use this extra money where it is aimed at. Via DBT there are no means to monitor how the money once transferred is being handled, which can be a huge demerit.
  • The number of bank branches in rural areas is less. There are no steps being taken to look into that. Therefore, it may sometimes not be possible for rural locales to withdraw the money at desired time.
  • In rural areas, people are more conservative. Thus it is obvious that most bank accounts have male beneficiaries. Thus the money can be withdrawn only under their name, whereas the female rural locales may be completely denied of any advantage that DBT offers. This is again a case where money pilfered illegally by one individual will negatively affect another, and the government has no ways to keep tabs.
bhim app

BHIM App: All You Need To Know (Bharat Interface For Money)

“Technology is the power given to the poor”, declared Narendra Modi after he took yet another grand step with the introduction of the BHIM app in the Digi Dhan Mela. BHIM stands for Bharat Interface For Money, and is the new Android app which will play a vital role in cashless transactions in the wake of a new India post demonetisation.

bhim app

How does BHIM work?

The BHIM app is available on the Android as of now, but slowly it will be utilized in every device to make cashless payments through a Unified Payment Interface (UPI). Transactions done through BHIM app is free of processing charge. However, transaction cost will be levied by the user’s bank.

Benefits of BHIM App: How It Is Different From Other Apps

BHIM employs great flexibility with 30 major banks in its menu. For a transaction to be successful via BHIM app both the sender and the receiver should have a UPI enabled bank account. Then an account can be made in the app using only the registered mobile number. BHIM cannot be compared to other mobile wallet apps. In mobile wallet apps, the user has to transfer some amount of money to the app and then make cashless payments. But BHIM provides a direct link to the bank account as it works via UPI. So the money can be transferred to an account holder not having BHIM app, but only a UPI enabled account. Another advantage of BHIM app is that it does not require the account number of the receiver to complete transfer of money. When the bank enables UPI with an account a Virtual Payment Address (VPA) is generated in the form “[email protected]_name”. This VPA or the bank IFSC and MMID code is required for money transfers.

Installing And Using The BHIM App Step By Step

  • After downloading this app an account has to be created in BHIM for all transactions in your desired language (English and Hindi in the starting pack).
  • Then a 4-digit password is to be created and the app will ask for permission to send SMS and read receipts.
  • After allowing the app to continue, it will verify your phone number and scan data from all bank accounts linked to it.
  • Then listing all your bank accounts it will ask you to select any one account with UPI linked to it. If you do not have a UPI linked account you will require the last 6 digits of your visa debit card and the card expiry date to link BHIM to your bank account. Then a UPI pin number will be automatically generated. Then there are three methods of money transfer and either one can be used:
  1. VPA of the beneficiary
  2. QR code
  3. IFSC and MMID code.

Download BHIM app for Android – Link here

Different Modes Of Transactions In BHIM App

The UPI code or VPA mode demands that the beneficiary should also have a UPI enabled account. In the case of QR code transfers, the QR code needs to be scanned for a certain amount of money as chosen by the user for transactions. Then the amount transferred will be deducted from that money. The absence of either of the two options will require the bank IFSC and MMID codes for transactions to be done.

Success Rate Of BHIM App

Ever since its introduction by Narendra Modi, the BHIM App has been a very successful. It has been one of the most downloaded apps for financial transactions. Reviews say that BHIM app has revolutionized the form of digital payments. This app aims at changing the outlook of people towards cashless transactions and has so far been successful. Even though there were a few complaints and queries raised because an app with a new interface takes time to get used to, but most people were satisfied with the app. It is easy to download and has a user-friendly design which still continues to attract more and more customers.

government schemes by Modi

List Of Government Schemes Started By Modi Government In 2016-17

The reign of Narendra Modi as the Indian Prime Minister is inspiring, eclectic and an epic stamp that will be marked in the pages of Indian history. His relentless fight against corruption has lead to the issue of a list of government schemes that has turned the face of India. 2016 has been one turning point under the Modi government. Demonetisation has taken the entire nation by storm. So, as Modi hits the bulls-eye in his fight against corruption, the citizens of India should be educated about the other schemes of Narendra Modi in the fiscal year 2016-17.

government schemes by Modi

List of Government Schemes By Narendra Modi in The Year 2016-17:

  • Startup India Scheme: 16th January 2016

This scheme aimed at building a better India by supporting the ignited minds that thought of new startup businesses. These businesses if commenced would lead to the overall benefit of the nation. Thus under Startup India, the government extended funds towards these individuals and organizations that would be recognized as a potential startup.

Read More: Startup India Loan Scheme Review

  • Goods And Service Taxes Bill: 1st April 2016

The idea of this bill was developed long back, but Modi and Arun Jaitley came together at the beginning of the fiscal year 2016 to promote its immediate introduction. This bill states that a common service tax will be issued on all products across India and completely demolish state level taxes implied on goods.

Read more: GST and its benefits

  • Start-up India Loan Scheme: 5th April 2016

This scheme aims at providing financial aid to all aspirants who dream of opening their own businesses. A primary amount of  1 crore will be furnished to them after verifying their idea and the potential returns. This mainly aims at diminishing brain-drain and enabling development.

Read more: Startup India Loan Scheme

  • Gram Uday Se Bharat Uday Abhiyan: 14th April 2016

It states that promoting proper governance in rural India is mandatory for the overall development of the country. Thus this scheme aims at setting up an organized rural Panchayat in order to make the villages more self-sustained.

  • Pradhan Mantri Ujjwala Yojana: 1st May 2016

Pradhan Mantri Ujjwala Yojana is another welfare scheme started by Modi in order to provide LPG connections to domestic households that fall under the below the poverty line category. Basically, the scheme aims at providing a proper cooking fuel that will, in turn, improve the health of these poverty struck families.

  • Pradhan Mantri Surakshit Matritva Yojana: 9th June 2016

This scheme by the Modi government aims at providing free health checkups for pregnant women for the first 6 months of pregnancy. Also, a benefit of this scheme is a free treatment for the pregnant woman on the 9th of every month.

  • Vidyanjali Yojana: 16th June 2016

Vidyanjali Yojana has been introduced to provide equal primary education to all budding children across India. The action plan is that volunteers will provide free primary education in all rural government schools.

  • Gangajal Delivery Scheme: 10th July 2016

This scheme was launched in the state of Bihar to provide clean water of the Ganges to domestic areas via postal services.

  • Mission Bhagiratha In Telangana: 7th August 2016

The problem of safe drinking water in Telangana district was solved with the introduction of this scheme. It aims at building a proper pipeline and filtering infrastructure in order to provide clean water for drinking purposes and household use.

  • Smart Ganga City: 13th August 2016

This scheme was launched in 10 cities located on the banks of Ganga. The action plan is to provide proper sewage discharge by establishing sewage treatment plants.

  • National Apprenticeship Promotion Scheme: 19th August 2016

The National Apprenticeship Scheme states that according to the government of India, a monthly stipend of INR 1500 must be paid to all apprentices by the private and government companies that employ them.

  • Railway Travel Insurance Scheme: 1st September 2016

This scheme states that an insurance of 10 lakhs will cover each passenger traveling by Indian Rail while booking a ticket if an amount of 92paise is paid. It aims at providing proper accident relief in case of any major mishaps.

Read more: Railway Travel Insurance Scheme

  • Uday Desh Ka Aam Nagrik (UDAN Scheme): 21st October 2016

UDAN Scheme aims at providing affordable aviation by making domestic flight charges economically accessible for middle-class citizens of India.

  • Urja Ganga: 24th October 2016

Launched in Varanasi this scheme aims at providing cooking gas to all houses in the town of Varanasi and its neighboring areas along the banks of Ganga. About 50,000 domestic households have benefited from the Urja Ganga till date.

  • Ek Bharat Shrestha Bharat: 31st October 2016

Modi introduced this scheme to strengthen the bond between all the states, regions, and districts of India. This will involve a mandatory partnership between two states at a time and exchange of cultural and educational values between them.

  • Demonetisation-Cease of INR 500 and INR 1000 To Be Legal Notes: 8th November 2016

The end of 2016 was marked by demonetisation which collapsed the very foundation of every black money holder across India. Overnight the old 500 and 1000 rupees notes were withdrawn from the market and new currency notes of INR 500 and INR 2000 was introduced.

  • Pradhan Mantri Ujjwala Yojana: 23rd December 2016

This scheme aims at providing LPG connection to all domestic households in Maharashtra to solve their problem of limited cooking fuel for regular use.

Read more: Pradhan Mantri Ujjwala Yojana

  • Cashless Transaction Scheme: Effective From 2017

A supporting scheme for demonetisation, the idea is to promote cashless transactions via the unique Aadhar Card issued to the citizens of India. The bank account will be linked to the Aadhar card in order to enable complete cash-free transactions.

  • Union Budget Scheme: 1st February 2017

Effective from 1st February 2017, a Union Budget will be drawn by the Modi Government to support all transactions post demonetisation. This will include lower rates of interest on home loans and will largely affect the real estate sector in a positive manner. This bill will result in increased profitability for the citizens of India in other sectors as well.

Needless to say, we all see hopes for a new India under the governance of Modi.

national pension scheme

National Pension Scheme: How To Open NPS Account?

As the name implies, National Pension Scheme is a most popular retirement scheme. First, it was launched for employees who do receive any kind pension. Later on, it was made accessible to every resident. Pension fund regulatory and development authority (PFRDA) is an autonomous body behind this retirement scheme.

You must pay the contributions on regular basis. This way, you will earn significant interest on accumulated amount. You can enjoy the corpus after turning 60. Interestingly, this scheme lets you invest in share market and bond market. And the best part, you have the option to adjust the percentages of investments in different markets. Either you can appoint the fund manager or do it yourself!

national pension scheme

NPS Scheme: PPS Tier I & Tier II

Technically, the National Pension Scheme features three types of accounts:

  • Tier I: Under this type, subscribers are not allowed to make withdrawals before retirement. Secondly, all government employees are obliged to invest 10% of their salary towards National pension account.
  • Tier II: Under this type, you have complete freedom regarding investments and withdrawals. But you must own a regular Tier I account if you want to enjoy benefits of Tier II.
  • Swavalamban Account: We can ignore the efforts of Indian government for encouraging saving spirit among people. Under the type, every subscriber will receive an additional contribution of Rs. 1000 per annum for first four years. This step was taken to empower people with weak economic standing.

Open NPS Account Online Using PAN or Aadhar Card

Any individual residing in India,  between 18 – 60 years is eligible to apply for National Pension Scheme. Thanks to authorities, the registration process is easier than ever. One can use the PAN or Aadhar card to complete the registration. You can go for offline or online registration.

Registration At enps.nsdl.com

You can register online for NPS at the official website of NPS trust (enps.nsdl.com). You must arrange following things for online registration:

  • Aadhar card or PAN. The Aadhar Card must feature your current mobile number and address. Remember, every detail has to be correct.
  • A bank account with internet banking services or credit/debit card.
  • A scanned copy of your photograph with size of 4 kb – 12 kb.

Open National Pension Scheme Account With Aadhar Card

Here are the essential steps to complete the registration successfully:

The first Step to open NPS account

First off, please visit the eNPS web page (enps.nsdl.com).

Click on the Registration Button. But you must read the guidelines mentioned on the left side.

The next page will display a lot of option about preferences. You must go through each option and choose wisely.

The first row shows options for New Registration, Complete Pending Application, and Printout of the completed application. If you are a new investor, tap on the first option.

Next, choose the option of Individual Subscriber. For your employees, the option of Corporate Subscriber is there.

Second Part

Next, you need to pick the account type. In either situation, the registration for Tier I account is compulsory. If you want to withdraw corpus any time, go for Tier II account too.

Next, you have to complete the authentication process. If you have provided the details of Aadhar card, the One Time Password will be forward to your registered mobile number.

Next page asks for your personal details. Most of the details are taken automatically from your Aadhar card. You have to mention your father’s and mother’s name. Also, please mention the mobile number for OPT authentication in future for your NPS account. This page also demands email and PAN ID, etc.

After submitting the data, you will receive the acknowledgment slip. Please save it, as you will need it to access the application.

FInal Step : NPS Account Opening

The next page will receive the contact details from your Aadhar.

Now, you have to provide bank details. The same bank account will be used to pay contributions in future.

Next, you have to provide Nomination details.

At the same page, you must choose fund manager and investment modes (auto or active).

We are almost done, next page will ask for photo and signature. In the case of Aadhar, the system will fetch the photo automatically.

Next, choose the contribution amount. The minimum contribution for Tier I and Tier II are Rs. 500 & Rs. 1000 respectively.

After that, you will reach the payment gateway. The system utilizes the SBI ePay gateway. You must opt for the debit card to avoid transaction charges.

Once payment is done, you will receive the Permanent Retirement Account Number (PRAN).

Next, download the application form. Attach the passport size photo, sign it and send it at the following the address.

Central Recordkeeping Agency (eNPS)

NSDL e-Governance Infrastructure Limited 1st Floor, Times Tower,

Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013

That’s it!

Open NPS Account Using PAN Card

In case you are using PAN Card for registration, the above-cited process will be needed. Just the authentication will be done using your PAN and name of the Bank. Here, Bank will do the KYC in place of you. That’s it!

Did I miss anything on National Pension Scheme

Registration of NPS account is easier than ever. You don’t have to stand in line for hours at NPS offices. Not only registration, but you can also make a contribution via eNPS portal.

Raising Grievances Regarding NPS

Grievances can be raised against NPS if there is an error in the allocation of PRAN or there are certain problems arising in case of withdrawal of funds. While raising a grievance, the individual has to login to the official NPS portal with their ID and password. The grievance can also be submitted physically, but it is best to raise it online for better flexibility. If you are raising a grievance, the NPS site will ask for the appropriate details like the nature of grievance or whether it is a reminder to answer any previously raised query.