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Ramalingam

Ramalingam Kalirajan  |9823 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 26, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - Dec 01, 2023Hindi
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Recently on 7 November 2023, changes made in SCSS scheme . Please guide me 1) what is penalty on premature payment after one year of deposit ? 2) whether new changes are also applicable to deposit kept prior to 7 November 2023.Thanks

Ans: Understanding the New SCSS Premature Withdrawal Penalty
That's a great question! Let's break down the recent changes to the Senior Citizen Savings Scheme (SCSS) and how they impact your situation.

1. Penalty on Premature Withdrawal After One Year:

If you withdraw your money from the SCSS after one year but before completing two years, a penalty of 1.5% will be deducted from the principal amount you deposited. This means you'll receive your deposit minus 1.5% as a penalty.

2. Applicability of New Changes:

The good news is that the new SCSS rules apply only to accounts opened on or after November 7, 2023. So, if you deposited your money before that date, the old withdrawal rules will still apply to your account.

Here's a quick summary:

Deposits before Nov 7, 2023: Old rules apply (interest reversal for withdrawal before 1 year)
Deposits on or after Nov 7, 2023: New rules apply (1.5% penalty for withdrawal after 1 year but before 2 years)
Remember: These are just the penalty details. It's always wise to consider the potential loss of interest you might incur by withdrawing your money prematurely.

I hope this clarifies the new SCSS rules!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |9823 Answers  |Ask -

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I have started one SIP of Rs40000/month, Dividend Two midcap growth Plan and one Smallcap Direct Growth Plan.. I want to know If after certain year, I can't able to pay by any means of my SIP amount, Is it acceptable. ? what will be my Financial loss to my deposited amount ? Plz Explain?
Ans: It's commendable that you've initiated SIPs (Systematic Investment Plans) to grow your wealth. However, life can be unpredictable, and circumstances may change, affecting your ability to continue these investments.

If you're unable to continue your SIPs after a certain period, it's essential to understand the implications. Firstly, discontinuing your SIPs prematurely can impact the potential growth of your investments. The longer you stay invested, the greater the power of compounding, which can significantly boost your returns over time.

Secondly, abruptly stopping your SIPs may lead to missed opportunities. Market timing is notoriously difficult, and exiting your investments at an inopportune moment could result in lost potential returns, especially if you're invested in mid-cap and small-cap funds, which tend to be more volatile.

Moreover, redeeming your investments prematurely might subject you to exit loads or penalties, further eroding your returns.

As a Certified Financial Planner, I would advise you to assess your financial situation carefully and explore alternatives before discontinuing your SIPs. Consider options like reducing the SIP amount temporarily, switching to a lower-cost plan, or pausing the SIPs if feasible, rather than stopping them altogether.

It's also crucial to have an emergency fund in place to handle unexpected financial challenges without resorting to withdrawing your investments prematurely.

Ultimately, every financial decision comes with its own set of consequences, and it's essential to weigh the pros and cons carefully before taking any action.

Best Regards,

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Chief Financial Planner,

www.holisticinvestment.in

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My son got 245 in bits .He can get any Brecht branch
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Recommendation: Considering consistent cutoff trends and seat matrices, prioritize B.E. Civil and Manufacturing Engineering at BITS Pilani for guaranteed allotment, consider Chemical Engineering at Pilani via waitlist movement, and secure Chemical, Civil, or Manufacturing Engineering at BITS Hyderabad or Goa for assured admission, capitalizing on slightly lower cutoffs and ample seat availability. All the BEST for a Prosperous Future!

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I am working as Business Analyst from past 4 years but I wanted to move to technical role. I have done Btech in CSE from tier-3 college. I wanted some advise on the the best way to switch to a tech role. 1. Taking some online boot camp to get in-depth knowledge and doing side projects over the weekends 2. Taking WILP from BITS in Software engineering/ data science 3. Prepare from GATE 2026 and aim for IITs
Ans: Manjunath Sir, To shift into a technical position, integrating structured learning, credentialing, and practical experience is essential. The recommended pathway combines immersive project-based training with a recognized postgraduate credential while keeping a long-term goal of elite technical qualification. Begin with a part-time online software engineering or data science bootcamp, dedicating weekends to substantial portfolio projects to build hands-on skills and confidence in key stacks . Concurrently, enroll in BITS Pilani’s Work-Integrated M.Tech (Software Engineering or Data Science & Engineering) to earn a UGC-approved postgraduate degree without leaving your job, benefitting from weekend live classes, remote labs covering full-stack or analytics tools, and a final semester dissertation that bridges theory with organizational impact . This dual track—bootcamp plus WILP—provides immediate upskilling, peer and mentor networks, and a formal degree. After 12–18 months, if aiming for top-tier R&D or core engineering roles, commence GATE 2026 preparation via a structured three-phase roadmap: concept building (June–August), full-length practice (September–November), and final mock-test calibration (December–January), targeting a CSE rank

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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