FLAME Newsletter - April 23, 2014


“India has emerged as one of the biggest consumers of the ingredients that go into production of banknotes in the world” — Dr KC Chakrabarty, Deputy Governor, RBI


What documents NRIs need to opt for home loan to buy house in India
Every Indian staying abroad aspires to own a home back in his homeland—India. Home buying can be a tedious process especially if one is living miles away from one’s aspired house.

According to the definition of the Foreign Exchange Management Act, 1999 (FEMA), an NRI (non resident Indian) is someone who resides outside India for “employment, carrying on business or vocation in circumstances as would indicate an intention to stay outside India for an indefinite period. It also mentions that an individual will also be considered NRI if his stay in India is less than 182 days during the preceding financial year.

NRIs can usually avail home loans for purchase of flat, row house and bungalow from developers. NRIs can also avail home loan for home improvement or extension, purchase of plot and home furnishings & consumer durables... Read more

The A-Z syndrome of NRI taxation
An Indian living abroad is generally being considered as an NRI (non-resident Indian) and it has also been defined under two broader ways—First being under FEMA (Foreign Exchange Management Act) and second being under the Income Tax Act, 1961.

As per FEMA, the day a person leaves India to stay outside for an uncertain period for whatever purpose whether the same is for taking up an employment, carrying out business or vocation; the person is considered as an NRI.

In contrast to the FEMA, as per the Income Tax Act, 1961; the person is defined as an NRI according to the number of days being spent abroad. Therefore, if the person satisfies both the conditions given below, he will be considered as an NRI: An individual is not in India for 182 days or more during the previous year... Read more


Legends used in bank account statement 
When we receive our bank account statement, we just briefly go through it and keep it aside or store it in one of our folders. A few of us check whether our names and the transactions made (debit or credit) are correctly or not. The bank statement includes a host of technical terms such as ICONN, Autosweep, VMT, etc. Most of us are hardly aware about these terms. 

Basically a bank account statement offers all transaction details carried out within a defined time period. A bank statement or account statement is a summary of financial transactions which have occurred over a given period of time on a bank account held by a person or business with a financial institution... Read more


Sole Proprietorship: A sole proprietorship is the easiest to set up a business organisation because there is no complex paperwork. A sole proprietorship is an unincorporated business that is owned by one “individual”. Sole Proprietorship does not require government approval. The business has no existence apart from the owner. The owner is his or her own boss. He owns the business assets and is is personally responsible for all debts of the business. Thus, all liabilities of the business are the owner’s personal liability. The business ceases upon the death of the owner. 


FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.

In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.

Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.

This portal is but one of the various IIFL initiatives that would be part of FLAME.

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