Validity and filling of cheques

A more efficient way to receive payouts is by registering for an electronic transfer to your bank account.

Information on the precautions that have to be taken while writing out cheques when investing in mutual funds, and the recent rule changes on cheque validity are discussed in this article.

VALIDITY OF CHEQUES

In line with an RBI notification, the validity of all cheques, drafts, pay orders, banker's cheques is three months from the date of instrument with effect from April 1, 2012. Earlier, the validity of cheques and such instruments was six months. Investors in mutual funds must make sure that all dividend or redemption payments received through cheques are presented to their banks within three months of the date on the instrument for successful clearance.

A more efficient way to receive payouts is by registering for an electronic transfer to your bank account. It is safer, faster, and cost-effective to receive electronic transfers. Investors may register the IFSC codes with the mutual funds and opt for electronic payouts of dividend and redemptions.

FILLING CHEQUES

When applying for mutual fund units, care should be taken while filling out the cheque. The cheque amount, in words and figures, should match with the amount in the application form. Of course, the cheque should be dated correctly and signed, and the investment amount should be at least for the minimum amount mentioned in the scheme documents.

Writing a cheque incorrectly, or leaving a blank space for the signature could result in the cheque getting dishonoured; this would mean non-allotment of units and loss of the net asset value of the day. In addition, the bank may charge for cheque processing.

The fund and scheme name should be correctly mentioned on the cheque. At times, it has been noted that inadvertently, different scheme options are mentioned on the cheque and the application form.

THIRD-PARTY CHEQUES

As per Association of Mutual Funds in India guidelines, mutual fund investments made through third-party cheques will not be processed. A cheque issued by and signed by any person besides the first holder of the investment is a third-party cheque. When a payment is made from a bank account that is not held by the beneficiary investor, that is, the first holder, it is referred to as a “third-party payment”.

If the cheque is issued from a joint account, the first named applicant/ investor must be one of the joint holders of the bank account from which the instrument is issued. There are exceptions to the rule as mentioned below:

Parents: Payment may be made by parents/ grandparents/ related persons on behalf of a minor for a value which doesn't exceed Rs 50,000 (each regular purchase or per systematic investment plan instalment).

Employers: Payment may be made by employers on behalf of employees under systematic investment plans through payroll deductions.

Custodians: Payments made by custodians on behalf of foreign institutional investors or clients.

Such applications should be accompanied by the third-party declaration form, mentioning the relationship with the first holder. The form is available at mutual fund websites. Payments made by pre-funded instruments like a pay order, banker's cheque will be accepted if the instrument is accompanied with a certificate from the issuing banker stating the account holder's name and the account number which has been debited for issue of the instrument. The account holder's name mentioned in the certificate should be that of the first holder.

Alternately, investors may submit a copy of the bank statement evidencing the debit for the issuance of the instrument, or a copy of the acknowledgement from the bank wherein the instructions to debit the bank account are available. These should contain the bank account details and the name of the investor. The account number mentioned in these supporting documents should match with the one mentioned in the folio or the application form.

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Tying a Tie

                                

Excellent Leadership: Don't be afraid to ask dumb questions

Most leaders are very vocal when they believe they are an expert in a particular subject - especially, when they should be listening more. But most leaders ( not all) are also actually quite shy when it comes to influencing a discussion on a topic they know little about and thus don’t engage for fear of what people will think. 

Most of the few leaders who do speak up in these circumstances do it because they feel it is a failure not to be an expert in everything - and pretend to be more expert than they are.

Both of these reactions are missing an important opportunity to contribute positively as a leader.

While leaders should be transparent about knowing little about a subject, asking smart dumb questions can be very valuable in getting the "experts" to express known-knowns aloud and thus test assumptions. We all have opinions all the time about subjects we are not expert in, and posing these in public or in a meeting in the form of an open questions or as a statement that starts with sometihng like "it seems to me as someone who is not an expert in this subject that ....." can be very powerful in helping experts to think outside the box and come to new conclusions.

I was first made aware of this a number of years ago when my coach of the time**, helped me to understand that I was very confident in conversations when I knew the subject but tended to be quiet on topics where I knew less than others in the room. He helped me realise I was suffering from "fear" of what people would think of me if I said something stupid - and so it was only the fear I had to overcome. This is quite a test of a true inner self confidence.

Since then, it has often happened that people have come up to me afterwards and said "what you said was just what I was thinking and I am so pleased you asked it".

So overcome that "fear" of what people think and give your opinion or ask those questions. You will be amazed by how it can change discussions and decisions. It will also build your inner self confidence while bringing humility to your ego.

John Knights

Waiting For A Better Tomorrow

I happened to meet a young lady who was working in a company based in Delhi. She complained that the terms and conditions at work were not very good and that she was, as a result, suffering from stress. I asked her if she wanted a formula for de-stressing and since she seemed interested, I gave her a spiritual formula that was given by the Prophet of Islam. The Prophet said, “Waiting for a better tomorrow is also a form of worship.”

A few months later I happened to meet the same young lady again. This time she was happy. During our conversation, she said, “Now, I have got a job in another company which is better in every respect.” This is not an isolated instance. I have tried this formula several hundred times during my own life and on each occasion, I have found it to be the best in dealing with such situations.

This formula has nothing mysterious about it. It is based on the well-established laws of nature. When you face some unwanted situation and you become negative, then you are bound to suffer some deprivation. Due to your negativity, you will hinder your intellectual development and you will become discontented with your job. You may even start underperforming and become unwanted, This shortcoming in your performance will lead to negative result in your life.

However, if you adopt the above formula, you will become stress-free and full of hope. This will make thinking positively a habit. A positive nature will surely enhance your skills and make you a more sought-after resource.

The above formula is not a religious one. It is based on human psychology. If your mindset turns negative, you diminishes your abilities. But if you work hard with a positive mindset, you improve your abilities. This is a law of nature, and is irreversible.

It is an accepted fact that training enhances the scope for an individual, but training is not confined to professional institutions. There is another institution of training and that is one’s own mind. Positive thinking is a natural form of intellectual training. This training institution is continuously at work and progressively makes you acquire a better personality. This is a miracle of nature and each one of us has it in his control. Everyone can have this experience.

This aspect of the mind is a great gift from nature. When we shun negativity and adopt the way of positive thinking, we initiate a process in our mind – a process of enhancement of our personality. Positivity helps to unfold our potential. As a result of this process, a positive thinker improves his prospects in life. On the contrary, negative thinking is most injurious to the process of personality development. Only positive thinking can be truly helpful in this process.

Our world is governed by well-known natural laws. The only way to progress is to discover these laws and follow them. Almost all cases of failure can be explained by people failing to follow laws of nature. Following this course is like travelling along a highway which will lead you straight to your destination. If, instead, you allow your vehicle to stray from this path, it will be difficult for you to reach your destination.

The Creator is Himself a positive mind. He loves positivity. He loves those who follow the positive way of life. Develop positive thinking as it will enhance your personality. Consequently, you will experience success.

Maulana Wahiduddin Khan

Too hot to handle? Take a chill pill

The soaring temperature in the city is acting as a spoil sport for many. Apart from feeling lethargic, one also faces a host of health issues like heat stroke or dehydration in this season. Speak Up brings you tips on how to beat the summer blues and live healthy

Speak Up

Avoid eating non-veg during summers The amount of energy drain during the summers is immense and hence one needs to take measures in order to keep the energy level intact. A short session of light exercise at the end of the day is helpful. These exercises may include Pranayam and meditation as the body cannot cope up with strenuous exercises in such hot climate. Besides, one needs to increase the water intake during this season. It is a must to drink minimum three litres of water every day that too at an interval of 2-3 hours. Non-vegetarian food should be avoided or consumed in the form of soups. Juice intake should also be increased and one must avoid staying in the scorching heat for long. In fact, every two hours wash your face and eyes with cold water as this helps in cleaning the sweat and dirt. — Nitin Unkule, yoga guru Have desi drinks to prevent dehydration It is better to go for natural desi drinks in the summers rather than aerated ones. The problem with aerated drinks is that when consumed, it creates more demand of water in the body. The reason being the colours and sugar used in them are not natural. Have panna, neera or lemon and honey drinks to prevent dehydration. Besides, one must also drink fruit and vegetable juices as they are healthy. Any kind of juices made from melons and vegetables like tomato or cucumber help to detoxify and replenish the vitamins. Also avoid spicy food as it creates more demand of water in the body. Stick to light cooked meal as it keeps the body cool. Salads in summers are always a healthy choice. — Babu Joseph, director, National Institute of Naturopathy It is better to avoid drinking chilled water as it creates disparity in the body temperature During this season, the problem of acidity aggravates and one needs to take care of it by consuming a good amount of liquid but at room temperatures. Avoid drinking water which is refrigerated or topped with ice and add khas/ amla/ morabba to it, which is a healthier option. The problem with refrigerated water is that it creates a disparity in the body temperatures during the summers thus affecting the health. Also, natural drinks like kokum and lemon water is far better compared to aerated drinks. People who love consuming milk should restrict themselves from consuming it chilled as it can harm the body. People who consume alcohol should stick to red wine rather than settling for drinks like rum or whisky. These drinks increase the body temperature and hence one should avoid it. — Ashutosh Nanal, Ayurvedic doctor Cover yourself to avoid tanning A sunscreen can protect your skin from the adverse effects of the sun as it prevents the skin from tanning and rashes. People who cannot afford the luxury of a sunscreen should wear thickly weaved cotton clothes to protect themselves from the sun. One must at the same time consume plenty of water as it keeps the skin fresh and lively. In terms of diet, have seasonal fruits like pineapple, oranges and mango as they have are rich in minerals and vitamins that are extremely helpful during summers. One must also use a moisturiser on the skin and protect the hair with a scarf to avoid damage. —Dr Dhanashree Bhide, skin specialist Problems like jaundice increase in this season One must avoid stepping out too much during summers and even if you do, use sunglasses and caps to prevent the body from the scorching heat. People who suffer from skin problems should cover their body to avoid direct sunlight. Problems like vomiting, loose motions and jaundice increase during the summers and hence one should avoid junk food. Once back from the hot scorching heat, let the perspiration settle down before having water or any drink in order to avoid harm to the throat and lungs. Those who are suffering from gastric ulcers must increase their water intake. Another problem witnessed during summers is the occurrence of ring worms in the arm pits and groins. So regularly clean these areas to maintain proper hygiene. —Dr Avinash Bondwe, physician

Relax To Align The Three Centres

How should one deal with difficulties and contradictions?

Don’t try to break them; mould them with love, kindness and humility. Give them time to heal. In that space a different energy will flow in your life. There are two energies – one, an ordinary energy that supports ego, provides a reason for it to exist and gives deceptive goals; the other, a divine energy that dilutes and destroys the ego. This will make you look at life differently. For that energy to flow in, prepare yourself prayerfully, proceed positively and pursue persistently.

There are three centres: body, emotions and intellect. When all three are aligned in your daily life, divine energy flows and a magical transformation occurs. You will then find trees are greener, the sun is radiant and stars magically shining.

The moving centre is the body; your blood, and your breath, for instance. The body centre has to be relaxed and happy. The important aspect in yoga is to relax the body. Whatever you are doing, learn to do it in a relaxed way -- the way you sit, the way you bathe -- keep it very relaxed. The very intention to relax will make it happen.

When you relax, your body generates healthy chemicals whereas in tension, unhealthy chemicals spread. So learn to relax.

When you tense, there are more reasons for you to be ineffective. Whatever action you perform, relax. Also, let your being be happy by just trying to be happy. Smile more often. Practise laughing meditation; laugh without any reason. The best antidote for anger is laughter. When anger arises, laugh it out and you will find that tension from anger energy will slowly diffuse. One can purify the body centre by being relaxed and happy.

Just watch your negative and positive emotions each moment. Whenever a negative emotion like jealousy arises, just dissociate yourself with it. View it from a distance. Bring forth love and kindness in all your feelings; let the energy flow and embrace it in all your movements.

What is the technique to bring out positive emotions?

As anchor, wear a chain or ring or keep a precious stone. Once in a while, remember to use it as trigger to generate positive emotions. Remember the anchor in order to generate positive emotion. You can even chant God’s name and bring out devotion.By purifying your emotional centre, you will be open to divine vibrations.

Keep the mind open and receptive, as every difficult situation teaches something profound. Be a good finder. If someone creates problems, observe what existence tries to teach you through them.

Once I had to tell one of my students, ‘It is frustrating dealing with you.’ But I said it lovingly. Sometimes I use strong words to wake people up. She was unhappy. I explained that my words were from love, not anger. My counselling lasted nearly three days. I found that I had learnt something profound. A person hears a word and then mentally adds personal ‘overtones’ to it. If a word has five units of tenor, personal ‘overtones’ will add 90 units to it -- thereby she experiences 95 units of sorrow.

All that I told my student was that it was frustrating to deal with her. My tenor in the word ‘frustrating’ was five units, whereas the person added 90 units. Hence the word ‘frustrating’ generated great sorrow! This one incident helped me in purifying my intellect to a great extent.

Swami Sukhabodhananda 

Speaking Tree

For regular income, look to the Senior Citizen Savings Scheme

You can park the quarterly interest in your post office savings account and withdraw it every month if you wish to.

If you are above 60 and are looking for regular cash flows, the Post Office Senior Citizen Savings Scheme is a clear winner at this juncture.

With a return of 9.3 per cent per annum for five years and a tax deduction of up to Rs 1 lakh, the scheme will ensure that you earn returns that beat inflation. Inflation averaged at 7 per cent in the last five years.

This scheme allows you to invest up to Rs 15 lakh of your savings.

You can consider parking the quarterly interest in your post office savings account and withdraw it every month if you wish to.

Post office savings account will fetch 4 per cent in FY-13. That's about what many banks pay on your savings account today.

If you are somebody who values safety above all else, the post office account should be your first option as your bank deposits (including your savings account) are insured only up to Rs 1 lakh in a bank.

Currently most banks too offer this rate but remember the rates may fall in the months to come and you may be unable to lock-in to bank rates right away if you do not have a surplus.

The Senior Citizen scheme, though, will keep the rate unchanged for investments made up to March 2013.

Hence, if you are investing a lump sum later this year, compare the bank rates against the 9.3 per cent that you will get in post office.

MONTHLY INCOME SCHEME

If you are not a senior citizen and still want a monthly income option, do look for bank deposits that offer a monthly interest payout. Current interest rates on deposits of five to ten years is mostly 9.25 per cent. That is higher than the 8.5-per cent interest rate that a post office Monthly Income Scheme (MIS) will offer.

MIS makes for a good option only for those in the 10 per cent tax bracket.

Some of the deposits offered by credit worthy companies, with a monthly or quarterly payout option, are also a good bet for a five-year period. But ensure you don't hold over 10 per cent of your debt portfolio in company deposits as they can be a risky proposition.

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