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Showing posts from July, 2014

Small & Payment Banks: Future of Local Banking

The Reserve Bank of India has proposed major reforms in banking sector with issue of draft guidelines for setting up “Small and Payment Banks” which will cater to marginalized sections of the Society, including migrant laborers, for collecting deposits and remitting funds. These banks will provide a whole suite of basic banking products such as deposits and supply of credit, but in a limited area of operation. The payments banks will offer a limited range of products such as acceptance of demand deposits and remittances of funds. They will have a widespread network of access points particularly in remote areas, either through their own branch network or through Business Correspondents (BCs)/agents or through networks provided by others. ØThe existing non-bank pre-payment instrument issuers, non-banking finance companies (NBFCs), corporate BCs, mobile telephone companies, super-market chains, companies, real sector cooperatives and public sector entities may apply to set up a payments ba…

35 AC Registration: Don’t just donate, donate right…..

In India, where doing welfare of people is one of the core principle of society, there are about one charitable organisation for every 1000 people and we all get phone calls and door-knocks soliciting donations. As a human nature, everyone wants to help or to give for charitable cause, however, have we ever cross check or investigate the money which we have given is been use for the same cause or not? Many of us may argue that- who is going to monitor them or how can they monitor their small contribution towards the larger good of the society or the cause. With enforcement of Corporate Social Responsibility under Companies Act, 2013, many self claimed social organizations have grown up like mushrooms in every corner of the city has caused much confusion in the mind of reasonable donors. This situation has also created problems for genuine charitable organizations, who are actually working for the upliftment and development of society, as people start distrusting them also. One way to find…

35 AC Registration- Fund raising by Social Enterprises/Non-Governmental Organizations (NGOs)

Section 35 AC of the Income Tax Act, 1961, is one of the key provision which is relevant for raising funds and resources for NGO’s if understood and used effectively. The objective of Section 35 AC is to encourage business organizations to contribute more in social and economic welfare and upliftment of general public. With the increased emphasis on the corporate social responsibility in the corporate sector and ostentatious display of charity by people like Bill Gates and Warren Buffet, the contribution in the monetary term by the corporate sector in India towards socially relevant project cannot be undermined. NGO’s involved in eligible projects notified by the Central Government for promoting the social and economic welfare can raise resources for eligible project from corporate sector and fulfil their objective of development. Corporates simultaneously can fulfil their corporate social responsibility aspect of the business by contributing towards the eligible projects and gain by av…

Raising Funds by Startups…

It takes more than just a great idea to run a successful business. Entrepreneurs and existing business owners need capital to pursue their vision. But if you don't have the cash in your wallet, what do you do? Luckily, there are still options for funding new companies, but finding and securing the cash will take careful research, good negotiating skills, and, above all, dedicated commitment to launch your business. Few way out for raising funds by startups are provided below: 1.Family & Friends 2.Crowd Funding 3.Preferred Stock & Convertible Debt 4.Angel Investment 5.Venture Capital
1.Family & Friends- People like to invest not only in the idea but in the person involved in it. However using family and friends as a source of raising money can be risky. It can create a strain that can ruin personal relationships. It is also worth to note that over 70% of startups fail in their first three years often because of factors completely outside of the control of the owners. Make sur…