The actual cost for consideration is the cost of insurance which varies between different policies and in the policies between different terms (years).

It is indeed very easy to compute the cost of insurance, with Excel.

In this evaluation of Jeevan Anurag which I opted from my 21 yrs old son, I put all the information and computed present value of all future payments and present value of all future receipt. The difference is the cost of insurance. In this case, the cost of Insurance is Rs. 7252 and cost of insurance per 1000 of sum insured per year is Rs. 13.19. Any payment you get back is your own money invested at the rate given in the table.

I computed atleast five type of policies and found the Bima Gold to be the cheapest @ Rs. 5.76 per 1000 of sum insured per year.. However, the insurance  financial changes with the  policies and the person to be insured.

I am attaching the excel sheet so that you can play with it. The formulas used are quite simple. Please do let me know your feedback.

Excel File

With the increase in PPF interest to 8.6% it has become a very viable medium of investment.

For the purpose of my computation, I decided to buy term insurance for a similar amount of sum insured from the same insurance company and investment of the amount in PPF in the first year. The result was surprising. My PPF investment will give me double the return that is expected from ULIP Policy. For this study, we decided on single payment policy. The sum insured is Rs. 2.5 Lacs, single premium is 50,000, term is 10 years and the guaranteed return at the end of the term is 180% in the NAV Rate. Guarantee is in the NAV rate and not on the initial investment. The surprising factor was a host of expensed deducted by ULIP operator.

So a single premium ULIP policy is Rs. 57256 at the guaranteed rate of interest of 6%, and Rs. 88440 at a very optimistic rate of 10%. If a comparative term insurance is chosen with yearly payment the PPF balance will be Rs. 91796. The insurance agent, may say that you have to pay the premium yearly which is a hassle. Hold on. There are more surprises. If the same policy is taken with a single premium, the actual premium is Rs. 3348/- But for the terms of the policy the minimum has to be Rs. 5000/-.

Even considering Rs. 5000/- as the insurance cost, the return is more, even more than when the premium is paid monthly at Rs. 93082/-. The same money can buy you term insurance of up to about Rs. 5,00,000/-. Hence before taking ULIP you should do your homework well.

RBI/2011-12/251 DBOD.AML BC.No.47/14.01.001/2011-12 November 4, 2011

The Chairmen/Chief Executive Officers
All Scheduled Commercial Banks (excluding RRBs)/Local Area Banks

Dear Sir,

Payment of Cheques/Drafts/Pay Orders/Banker’s Cheques

In India, it has been the usual practice among bankers to make payment of only such cheques and drafts as are presented for payment within a period of six months from the date of the instrument.

2.  It has been brought to the notice of Reserve Bank by Government of India that some persons are taking undue advantage of the said practice of banks of making payment of cheques/drafts/pay orders/banker’s cheques presented within a period of six months from the date of the instrument as these instruments are being circulated in the market like cash for six months. Reserve Bank is satisfied that in public interest and in the interest of banking policy it is necessary to reduce the period within which cheques/drafts/pay orders/banker’s cheques are presented for payment from six months to three months from the date of such instrument. Accordingly, in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, Reserve Bank hereby directs that with effect from April 1, 2012, banks should not make payment of cheques/drafts/pay orders/banker’s cheques bearing that date or any subsequent date, if they are presented beyond the period of three months from the date of such instrument.

3.  Banks should ensure strict compliance of these directions and notify the holders of such instruments of the change in practice by printing or stamping on the cheque leaves, drafts, pay orders and banker’s cheques issued on or after April 1, 2012, by issuing suitable instruction for presentment within the period of three months from the date of the instrument.

4.  Please acknowledge receipt

Yours faithfully,

(Deepak Singhal)
Chief General Manager in-Charge

• Each Prior permission application should be sent for receiving a specific
amount, for a specific purpose and from a specific donor.
• Following documents should be enclosed with the application for grant of
Registration:
(i) Hard-copy of the online application, duly signed by the Chief
Functionary of the association;
(ii) Certified copy of registration certificate or Trust deed, as the case may
be;
(iii) Details of activities during the last three years;
(iv) Copies of audited statement of accounts for the past three years (Asset
and Liabilities, Receipt and Payment, Income and Expenditure);
(v) If functioning as editor, owner, printer or publisher of a publication
registered under the Press and Registration of Books Act, 1867, a certificate
from the Registrar of Newspaper for India that the publication is not a
newspaper in terms of section 1(1) of the said Act. (vi) A copy of the PAN, if issued by Income Tax authorities.
(vii) Fee of by means of demand draft or banker’s cheque of Rs. 2000/- in
favour of the “Pay and Accounts Officer, Ministry of Home Affairs”,
payable at New Delhi.
• Following documents should be enclosed with the application for grant of
Prior Permission:
(i) Hard-copy of the online application, duly signed by the Chief
Functionary of the association;
(ii) Certified copy of registration certificate or Trust deed, as the case may
be;
(iii) Commitment letter from foreign donor specifying the amount of foreign
contribution;
(iv) Copy of the project report for which foreign contribution is
solicited/being offered;
(v) If functioning as editor, owner, printer or publisher of a publication
registered under the Press and Registration of Books Act, 1867, a certificate
from the Registrar of Newspaper for India that the publication is not a
newspaper in terms of section 1(1) of the said Act.
(vi) A copy of the PAN, if issued by Income Tax authorities.
(vii) Fee of by means of demand draft or banker’s cheque of
Rs. 1000/- in favour of the “Pay and Accounts Officer, Ministry of Home
Affairs”, payable at New Delhi.
Note: The hard copy of the on-line application along with all the documents
mentioned above must reach the Ministry of Home Affairs, Foreigners Division
(FCRA Wing) within thirty days of the submission of the on-line application,
failing which the request of the person for grant of registration or prior permission,
as the case may be, shall be deemed to have ceased.
FCRA, 2010, FCRR, 2011, FAQs thereon and all other related information
and, the Forms FC-3 and FC-4 as also link to FCRA Online Services are
available at the website of the Ministry of Home Affairs at
http://mha.nic.in/fcra.htm

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A close look at the top page indicates that user should write an email to And for any problem in filing online application send an e-Mail to clsharma@nic.in indicating their problem.

Hope this solves their problem.

As per telephone directory of Home Ministry, the following numbers are for FCRA Department. The user may call them for their problems: The numbers are for Delhi (STD Cdoe: 011)

Foreign Contribution Regulation Act 2010

Foreign Contribution (Regulation) Rules, 2011

This raises an important question. As per the new FCRA, the NGO has to publish their account details in case the Foreign Donation exceeds Rs. 1 crore. This step taken by the Home Ministry can be taken as a sufficient compliance to the requirement of law and no further publication is needed? I personally feel that since the data is duly published, the NGO need not take any more action on this.

The total number of Association registered under the Act as on 31-3-2009 has been 36,414. Out of this only 20,088 has submitted their return indicating that about 44.84% of the association choose not to submit their return. A large number of these Association is likely to have no receipt of FC.

Total Amount that has been received is estimated at above Rs. 10,000 crore at Rs. 10802.67 crore. The highest recipient were all non Christian association. A very important point is about 50% of receipt is consumed by establishment expenses. In Other words. for every Rs. 100/- received as donation by an NGO, Rs. 50/- is consumed by the Association itself which is very high. To spend Rs. 50/- om charity an Association typically needs Rs. 50/-. Surprised….

The new provisions required that all gifts in kind or in currency exceeding Rs. 1,00,000 must be intimated to Central Government in Form No. 1 to FC Rules, 2011.

The said form requires not only your Income tax details, but also the income tax details of the giver / donor.

form 1 – initimation of receipt by way of gift from relatives

13.     In  the  event  of  receipt  of  foreign  contribution  in  excess  of  one  crore  rupees in a financial year. - 
In case a person who has been granted a certificate of registration or prior
permission  receives  foreign  contribution  in  excess  of  one  crore  rupees,  or  equivalent  thereto,  in  a  financial  year,  he/it  shall  place  the  summary  data  on receipts and utilisation of the foreign contribution pertaining to the year of receipt  as  well  as  for  one  year  thereafter  in  the  public  domain.    Besides,  the  Central Government shall also display or upload the summary data of such persons on its website for information of the general public.