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Anil

Anil Rego  |388 Answers  |Ask -

Financial Planner - Answered on Dec 26, 2022

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more
Venkatesh Question by Venkatesh on Dec 26, 2022Hindi
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Money

I am a resident of Bengaluru. I and my family are relocating to US next month. We have made some investments in Post office (SB account and Term Deposit), LIC policies, pension policy in ICICI and PPF accounts in SBI. While we are planning to get our SB accounts in the Banks converted to NRO accounts, we aren't sure whether we can continue our post office accounts, PPF in SBI, Pension policy in ICICI Prudential and LIC policies. Request you kindly confirm if we can:

1. Continue to hold SB a/c and Term deposits in Post office?

Ans: You can continue to hold these accounts. I would recommend that you close the SB account immediately and also the Term Deposit account (If the interest rate is not much higher than the current interest rates).

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  |8151 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 20, 2025

Asked by Anonymous - Jan 02, 2025Hindi
Money
I m a person of Indian origin with citizenship of other country. I have bank accounts in India, both in INR and USD €. One of my Term deposit is with SBI while all others are BoB. I m thinking of options. 1. Encash it 2. Move to Bank of Baroda 3. Repatriate. As I m retiring option 3 is not favorable. If I encash it I m told I get INR equivalent to deposit. Moving to BoB appears to be best option but again according to SBI it will involve changing to INR and but USD snd then go to HQ of BoB to put it in Term Deposit. I also had cash USD 5,000 and wanted to deposit in Term Deposit but SBI says only District office can do that while in past they accepted it their branch. Another confusion is remittance of USD to be in Term deposit here but every time I try i get INR..... Plz if you have any guidance within thr laws guide me. Reason I want all in BoB is I am retired and want every thing within comfortable distance Thank yoy
Ans: As a person of Indian origin with overseas citizenship, your banking and term deposit management should focus on simplicity, accessibility, and compliance with regulations. Your goal to consolidate all term deposits in Bank of Baroda (BoB) for convenience is practical. Let’s evaluate your options and suggest the best approach.

Key Observations
You have INR and USD accounts in India, with term deposits spread across SBI and BoB.
You prefer keeping all deposits with BoB for ease of management post-retirement.
You face challenges in transferring USD and opening term deposits with USD funds.
You want a legally compliant and cost-effective solution that aligns with your retirement needs.
Option 1: Encash the Term Deposits
Process:
Encashing your SBI term deposit will provide INR equivalent to the deposit amount.
The proceeds can be deposited into your BoB account for reinvestment.
Advantages:
This is a straightforward process for INR deposits.
Funds can be reinvested into term deposits at BoB without additional conversion.
Disadvantages:
For USD term deposits, SBI may convert the amount into INR before crediting your account.
You may lose out on favourable USD interest rates or incur currency conversion charges.
Option 2: Move Term Deposits to BoB
Process:
Transfer INR term deposits directly to BoB upon maturity for reinvestment.
For USD deposits, SBI may convert them to INR before transferring to BoB.
BoB requires approval from their head office for accepting USD deposits, which could delay the process.
Advantages:
Consolidating all deposits into BoB ensures easier access and management.
BoB offers competitive interest rates on both INR and USD deposits.
Disadvantages:
Transferring USD term deposits requires conversion into INR and reconversion into USD at BoB.
Double currency conversion can result in exchange rate losses and fees.
Option 3: Repatriate the Funds
Process:
Transfer the USD term deposit amount to your overseas bank account.
Use these funds for investments or term deposits in your country of citizenship.
Advantages:
Repatriation is a compliant option under FEMA (Foreign Exchange Management Act).
Funds in your country of citizenship may be easier to access and manage.
Disadvantages:
You find this option unfavourable due to retirement and a preference for Indian banking.
Exchange rates and transfer fees may erode part of the value.
Additional Guidance for USD Cash Deposits
SBI's Policy on USD Deposits: As per current rules, only district or designated branches may handle USD cash deposits for term deposits. This rule ensures compliance with foreign exchange regulations.
Options to Consider:
Visit the designated SBI district branch to deposit USD cash into a term deposit.
Alternatively, convert the USD to INR and invest in a term deposit with INR.
Why Policies Changed: RBI regulations often impact how banks handle foreign currency transactions. These rules are in place to prevent unauthorised foreign exchange dealings.
Recommended Approach
Consolidate Deposits in BoB
This aligns with your preference for convenience and a single point of access.
Upon maturity, instruct SBI to transfer INR deposits directly to BoB.
For USD deposits, consult BoB to understand their procedures and avoid unnecessary conversions.
Minimise Currency Conversions
Currency conversion between INR and USD results in fees and exchange rate losses.
Avoid unnecessary conversions by keeping USD deposits in their original currency, if possible.
Check BoB's Foreign Currency Deposit Policies
Confirm with BoB whether your local branch can handle USD term deposits.
If not, clarify the procedure for head office approval and processing.
Use USD Remittances Wisely
If remittance results in INR instead of USD, it may be due to your bank's default settings.
Specify that the remittance should be credited to your USD account. This ensures funds remain in the desired currency.
Monitor Compliance with FEMA
Ensure all transactions comply with FEMA guidelines.
Seek assistance from your bank’s NRI desk for better clarity on compliance and documentation.
Final Insights
Your plan to consolidate all deposits in Bank of Baroda is a smart step for retirement management. Avoid unnecessary currency conversions and ensure compliance with RBI and FEMA rules. Consult the BoB branch manager and their NRI desk for personalised support to streamline the process.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

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Dr Dipankar

Dr Dipankar Dutta  |1061 Answers  |Ask -

Tech Careers and Skill Development Expert - Answered on Mar 25, 2025

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I am a first year student at MIT Manipal,currently pursuing Electrical and Electronics engineering(EEE),and I am have been given a choice to apply for branch change in my institute either to CSE,Mathematics and Computing(MnC) or ECE in my second year. I did not study Computer Science in 11th and 12th, and I coding in C for the first time as part of my 1st year syllabus.I am not very much interested to coding,but I am learning it since it is there in the course syllabus. My parents suggest switching to CSE, but they are not engineers and do not have insights into the current job market. Since my batch will be passing out in 2028, I want to understand the job scenario for CSE, MnC, ECE, and EEE graduates by then. Among these,which branch provides better opportunities for core engineering jobs with good or decent salary and stability? I have heard that many ECE graduates end up in IT jobs due to lack of core industries-is that true?Would ECE be a better alternative to CSE for core jobs or is it better to stay in EEE? Also between CSE, ECE, and EEE, which has less competition in the job market while still offering good career prospects? Additionally, I want to know which branch is broader, with ample opportunities in both the government and private sectors, especially for core jobs with good pay and stability. base on futuret rends, would it be a wise decision to change my branch, or should I continue with EEE?
Ans: Happy to see that you have asked very logical questions. I can say that, since you are already in Electrical and Electronics Engineering (EEE) at MIT Manipal and have the opportunity to change to CSE, Mathematics and Computing (MnC), or ECE, your decision should be based on:


Your Interests (Core Engineering vs Coding)
Job Market Trends for 2028 and Beyond
Competition & Industry Demand

Future Job Market (2028 & Beyond) for Each Branch
Branch Core Job Scope IT/Software Jobs Govt Jobs Competition Salary Stability
CSE Low (Software Focused) High Limited Very High High but Unstable
MnC Medium (AI/ML, Finance) High Limited High High but Research-Oriented
ECE Medium (VLSI, Chip Design, Telecom, IoT) High Moderate (ISRO, DRDO, PSU) High Medium-High
EEE High (Power, EVs, Automation, Energy, PSU) Moderate High (Railways, NTPC, BHEL, Govt) Low-Medium High & Stable

Should You Switch to CSE, MnC, or ECE?
If You Want Core Engineering Jobs with Stability
Best Option: Stay in EEE

If You Want a Balance Between Core & Software Jobs
Best Option: ECE

If You Want a High-Paying Private Sector Career (But Not Core Engineering)
Best Option: MnC or CSE

Hope this will help you in decision making.

...Read more

Milind

Milind Vadjikar  |1134 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Mar 25, 2025

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Hi sir I am investing when ever i have money not like in SIP. my most of investments are around 6 L invested in Quant different mutual funds. No a days i can see my all the Quant funds are going down. Im 34 years old female. My plan is 10 years. Can i exit from quant and invest in any some MF rather than getting more loss? Can you please review my portfolian. Do i need to exit from any MF. Since i'm maintaining too many MF. Thanks in advance. Mutual Funds List No' Scheme Name AMC Category Sub-category ISIN 1 DSP Small Cap Direct Plan Growth DSP Mutual Fund Equity Small Cap INF740K01QD1 2 Quant Focused Fund Direct Growth Quant Mutual Fund Equity Focused INF966L01853 3 Parag Parikh Flexi Cap Fund Direct Growth PPFAS Mutual Fund Equity Flexi Cap INF879O01027 4 Mirae Asset ELSS Tax Saver Fund Direct Growth Mirae Asset Mutual Fund Equity ELSS INF769K01DM9 5 JM Flexicap Fund Direct Plan Growth JM Financial Mutual Fund Equity Flexi Cap INF192K01CC7 6 Axis Growth Opportunities Fund Direct Growth Axis Mutual Fund Equity Large & MidCap INF846K01J46 7 Parag Parikh ELSS Tax Saver Fund Direct Growth PPFAS Mutual Fund Equity ELSS INF879O01100 8 Quant Small Cap Fund Direct Plan Growth Quant Mutual Fund Equity Small Cap INF966L01689 9 Canara Robeco Small Cap Fund Direct Growth Canara Robeco Mutual Fund Equity Small Cap INF760K01JC6 10 Motilal Oswal Midcap Fund Direct Growth Motilal Oswal Mutual Fund Equity Mid Cap INF247L01445 11 Nippon India Multi Cap Fund Direct Growth Nippon India Mutual Fund Equity Multi Cap INF204K01XF9 12 Nippon India Small Cap Fund Direct Growth Nippon India Mutual Fund Equity Small Cap INF204K01K15 13 ICICI Prudential Value Discovery Direct Growth ICICI Prudential Mutual Fund Equity Value INF109K012K1 14 Quant Flexi Cap Fund Direct Growth Quant Mutual Fund Equity Flexi Cap INF966L01911 15 Nippon India Small Cap Fund Direct Growth Nippon India Mutual Fund Equity Small Cap INF204K01K15 16 Quant ELSS Tax Saver Fund Direct Growth Quant Mutual Fund Equity ELSS INF966L01986 17 Aditya Birla Sun Life PSU Equity Fund Direct Growth Aditya Birla Sun Life Mutual Fund Equity Sectoral / Thematic INF209KB1O82 18 Quant Mid Cap Fund Direct Growth Quant Mutual Fund Equity Mid Cap INF966L01887 STOCKS LIST 1 APOLLO TYRES-EQ RE 1 2 ASIAN PAINTS EQ 1/ 3 BRITANNIA IND-EQ1/- 4 CG POWER-EQ2/ 5 IRCTCL-EQ2 6 NHPC LIMITED - EQ 7 TATA STEEL-EQ1/ 8 Deepak nitrate 9 LT 10 Narayana Hrudayalaya
Ans: Hello;

6 L worth investment in 18 different funds is spreading it too thin.

You have a time horizon of 10 years but how much corpus you want to accumulate after 10 years kindly clarify?

Also if you can specify the goal for which this investment is aimed at then it will help us to suggest suitably.

I will recommend you strategy to rationalize you MF holdings once you revert on the above points.

Thanks;

...Read more

Milind

Milind Vadjikar  |1134 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Mar 25, 2025

Asked by Anonymous - Jan 26, 2025
Money
Sir, I am Mudassar, 40 years old, i have 3 childrens, 2 daughter and son. Sir, i need your suggestions/guidance becaz i am in very crtical situation. My take home salary is 40K and my father (retired age 74 ) salary is 35K , we both have personal laons to build house. I have two running LIC's , on which i have taken loan also. Recenlty we build own house , if i sell now, i will get around 42 to 45 Lakhs . My lloan detailsbelow ; 1. HDFC 7,20,000 emi 14K 2. Company emi 1,50,000 emi 4K 3. LIC loan 2 laks emi 2K 4. Father loan 4 lacks , two year remaining, emi 14K Total emi : 34K Apart from we are paying 15K monthy to chit fund , still 15 months remaining. Summary: Total sal 75 K , after laon and chit fund deducting , will get 26K to run home , including grocery, children fees , health etc... its very difficult to manage, and keep thinking to take extra loan .. as i said earlier , have two LIC's , i am.paying 56K every year . What i am thinking is, i will sell my house And clear all my laons .. and approximate i will have 25 Lakhs remeaing , so i will inest in mutual fund , SIP , SWP, index fund for long time investment .. So i.am in very confusing mode , whether i have to sell my house .. and start my investment journey... pls help sir .. My finacial conditions are very similar to all middle class family.. Request you to please reply and give your sugestion for investment joury. Awaiting your kind reply .. Thanks in advance ...
Ans: Hello;

Suppose you sell your house and clear your loans and other liabilities but where will you & your family stay?

How much rental per month would be required to get an adequate house on rent?

Please clarify. Based on your input we can advise you suitably.

Thanks;

...Read more

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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