India take on Pakistan in the first of the two Twenty20 games tonight

Where drama never ends

Emotions will run high as India take on Pakistan in the first of the two Twenty20 games tonight

In 1986, Javed Miandad had smashed Chetan Sharma for a last-ball six to steer Pakistan to victory in the final of Asia Cup in Sharjah. At that time the T20 format didn’t even exist. Years later in 2007, India could have suffered a similar fate. Thankfully, this time it was Pakistan at the receiving end. As Misbah-ul-Haq tried to go for another six off the last ball, he was caught at short fine-leg by Sreesanth. With that India became the 2007 T20 World Cup Champions. The last time the two sides played in a T20 match was at the ICC World Cup earlier this year. At that time India were responsible for throwing Pakistan out of contention. The drama, frenzy never dies in an India-Pakistan match. Off the field as affable as the players may try to sound, the picture on field could be as volatile. India skipper MS Dhoni said that both teams would try as far as possible to avoid any untoward incident on the pitch, but then agreed that while playing for country it was sometimes difficult to restrain. “As far as sledging and controlling emotions go, both teams will wish that such a thing — that can be a point of debate — doesn’t happen,” he said. “But if you’re playing for your country, some bickering, arguing will keep happening.” Emotions apart, when India take on Pakistan in the first of the two T20s, the result is likely to be as unpredictable as the last-ball Sreesanth catch. Though not overtly vocal, Pakistan will definitely be banking on their ace off spinner Saeed Ajmal to “bamboozle” the Indian batsmen in his own words. But then the same Ajmal could not pluck out a single Indian batsmen in the World Cup match earlier this year. On the other hand, the Indian batsmen traditionally good players of spin struggled against England’s Monty Panesar and Graeme Swann. Yet again, Pakistan’s bowling unit is also about Umar Gul, Sohail Tanvir and Shahid Afridi who have proved themselves effective in this pygmy version of the game. For India, the bowling has been its Achilles Heel for some time now. Ashok Dinda and Parvinder Awana’s bountiful performance in the last T20 against England gives little hope. Surprisingly, for India it was part-timer Yuvraj Singh who did exceedingly well bowling brilliantly in both the matches against England. India were found wanting against a depleted England side. So a young full-strength Pakistan side could as well ring the death knell for India. If bowling is India’s Achilles Heel, then fielding is Pakistan chink in the armour. The Pakistan team conceded at least 15 runs in misfields in their last match against India. Kohli who went on to become the hero of Indian victory was dropped by Umar Akmal. And this is where India could actually make a difference. With sharp catchers like Virat Kohli, Ajinkya Rahane and Yuvraj Singh among them, the team can easily expect to save 10-15 runs. In T20s, every run saved gets you closer to victory.

‘Uninformed buying is as bad as wrong selling’

‘Uninformed buying is as bad as wrong selling’

Ask Rajiv Bajaj, MD, Bajaj Capital, as to where the buck stops in mis-selling or, for that matter, mis-buying. His answer is categorical: The accountability is with the players themselves which need to take corrective measures. And it’s expected that with proposed regulations on financial distribution and advisory services, things can get only clearer from here. In an interview with Aswathy Varughese and Megha Mandavia, he underlines the need to catch investors young and prepare a road map for their investment as “they can amass wealth and guide the economy, going ahead”. How are you dealing with the challenges faced by the distributor community? Do you think the new regulations the Securities and Exchange Board of India (Sebi) is working on will make any difference? We are going by the spirit of the regulation, which is quite healthy. We have interpreted the regulation that there will be a clear demarcation between distribution and advisory services. In the distribution system, there is a principal-agent relationship and basically, you are getting a commission from the principal and adding value to the consumer, simply by selecting the best possible schemes. So, we are helping them with product selection and basic need analysis. Essentially, the responsibility of choice and execution is on them. So, we support them with good execution and support. That has been the growth capital of Bajaj Capital over the past 50 years. We have a million clients and continue to help them out. In addition, we will start an advisory service where we do not charge commissions and work only on a fee-based model. We will not reserve this service only to high net worth individuals (HNIs) and will take it to the emerging wealth segment.   What is your target segment, going ahead? We will find people who are going to become wealthy in future. We will catch them young and talk to them regarding the necessity of it because they are going to be the people who amass wealth and guide the growth of the economy. So, our focus will be on that segment, which is most time constrained. They do not have time but they have the intent and the knowledge. So, they have the will to create wealth and we are going to roll out a service for this particular section soon.   Mis-selling of financial products has been rampant. From your side, how are you trying to curb it? There is mis-selling and there is mis-buying. So, uninformed buying is as big as wrong selling. So, there is no denying this fact. But as a responsible long-term player, we take corrective actions for that. We could have a strong self-regulatory regime in the company. We not just follow the regulation that comes from Irda or Sebi, but internally we have very strict guidelines. In our company, no one is fired for being unproductive, rather we fire employees when they do wrong selling. We have created the right environment in the company to control internally. Also, we have systems and processes to track. Financial advisory services are still not very popular with Indian investors. In your view, how should this segment evolve and have some iconic wealth managers? Currently, there is no momentum in the market. Wealth management is a push business. You have to really sit with the people and make them aware about their financial needs and goals. People come by themselves when markets are bullish. There has been no pull because we are 5-6 years down cycle. With every bull run, the growth comes. Now, you need to utilise this opportunity to fix the business model. There is customer opportunity over customer value. Most of the current business models are customer opportunity driven. For instance, I am in the loan business that lets me also sell financial products. This is just 10% of your income, for banks it may be 5% of the income. So, it’s not as important business segment for them whereas in the other model if this is your bread and butter where you are a small financial planning or distribution firm or if you are an international bank which has a strategic intent to be in this business and have a wealth management background for quite long, it is a core business and does not matter on the percentage of income. We want more committed players in this segment and do not want the concept of third party distribution. Now, we do not have any iconic wealth managers. When will people from this segment emerge as iconic and credible wealth managers? If core committed people will be stepping into this space, that will improve the perception of people, too. Also, they will invest capital and train more people, which will create role models. That is how you build reputation and credibility.

Start saving in 20s, compound your gains

Start saving in 20s, compound your gains

Compounding works best for those who have a larger earning period left

Einstein calls it the eighth wonder of the world. It has power to create enormous wealth for people who persevere and hold on to it. This is compounding rate of return (CRR). Compounding return is nothing but earning returns over returns as well as principal. The wealth created by the compounding rate works in favour of those who have larger earning period remaining in their life. I will worry about it later, I am young and I will have fun for now. While this is certainly something that all of us do in our young age, we have to also build the discipline to save a part of our income and invest to reap benefits in future. Moreover, compounding works in favour of people who start investing early than those starting later in life. Sample this. It assumes that a person starts investing `1 per month at various stages of his life till he or she is 65. It means if you are 25, your investment horizon is 40 years while the horizon is 30 years for a 35 year old. The top table also shows how your future wealth varies with the rate of return. If you can start investing `5,000 per month at the interest of 12% from 25th year, you will accumulate `5,88,23,850 by the time you turn 65. Does it really look like the 8th wonder? You bet. Where to find money for investment? The important point is you save something. Some of the things you can use to save money and invest in appropriate funds are as follows: 1. Pay your credit card bills on time. No exception. 2. Make a budget for your expenses. This may sound like a tough job, but do it for 2-3 months and you will have a fair idea of where the money is going. Now, curtail useless expenses. For example, going to an expensive restaurant 3-4 times in a week. Cut it down to once or twice a month. 3. Pay yourself first: Resolve to save a specific amount every month. Put it in an investment account. 4. Buy a car or bike having resale value. If possible, buy a second hand car. 5. Stop splurging on sale and discount. Where to invest your money Most importantly, you should have a long-term view of your investment. Let’s see what options you have. 1.Equity & equity MFs: Equity investment is known to give the highest returns. This includes individual stocks, diversified equity funds, sector equity funds, index funds and the like. Between 1990 and 2010, Nifty has given an annualised return of more than 20%. However, the volatility of the returns is high. 2.Bonds and debt funds: There are good quality bonds available from the government and companies. These are fairly safe and returns can be between 8-12%. 3.Safest instruments: There are others which are very safe such as PPF, PF, bank deposits, but they have lesser returns. Your company anyway does the PF for you. 4.Others: Other options could be ULIP, gold ETF and index funds. However, before you start investing in the market, you must have 3-6 months gross salary in your savings account for any emergency. Here is a typical asset allocation for a 25-year-old person – assuming you already have sufficient money in your savings account for emergency purposes. Building a strong foundation for your future It is extremely important to plan for your financial future. Often, in the case of finance, failing to plan is planning to fail. First, resolve to save a part of your salary every month and invest. If you cannot maintain discipline, start a systematic investment plan (SIP) with a brokerage firm such as ICICI Direct, Kotak Securities or Angel Broking. Second, have a long-term view of your investment. If you look at any stock price or NAV of mutual fund, the prices go up and down in the short term, but generally go up long term for good stocks and mutual funds. And last, learn about investment, planning, and don’t hesitate in taking professional help. You work hard in your youth; it is natural but to lead a comfortable life when you retire. You deserve it.

Govt OK with boozing till dawn, not midnight mass

Govt OK with boozing till dawn, not midnight mass

Christians fume over forced wrap-up of mass on open grounds much before Christ was born

While midnight masses on open grounds have not been allowed for a while now, come every Christmas, the fact that they can’t have it at midnight continues to dishearten the city’s Christians. And it is for this reason that they ask why the government can’t think of doing something along the lines of what it does for the New Year’s Eve. “We understand that the rules need to be followed. But what I don’t understand is that if the government can relax rules for New Year celebrations and revelry, why can’t norms be relaxed for a solemn thing like mass service,” said Anil Joseph, a resident of Bandra. Churches that conduct masses indoors can have them and continue to do so at midnight. But, as per the rules, masses cannot be held in open after midnight. This, despite the certain number of days on which the sound restriction is eased. Otherwise, the sound restrictions make sure that loudspeakers can’t be used after 10pm. “The mass is supposed to start at midnight as that is when Jesus was born. Anywhere in the world it is at midnight. It is a tradition that has been going on. At St. Pius Church, where I go for mass, it wraps up by midnight. Earlier, it would start at midnight. There’s a reason why it’s called midnight mass,” said Thomas Anthony, a resident of Mulund. “It is awkward to have mass at a time before Christ was born. Though we did write a letter in this regard to the government, it was late to take it up with it. Also, the session was in Nagpur and most of the leaders were there. It is better to meet the chief minister,” said Joseph Dias of the Catholic Secular Forum.

House parties, not open ground jigs, are flavours of this festive season

House parties, not open ground jigs, are flavours of this festive season

Until a few years ago, Esparanca Fernandes, a resident of IC Colony, would rush to St Francis ground for a dance programme after the midnight mass. However, with sound restrictions being put into place, the way people enjoy Christmas has changed. Now, dance parties are held indoors. “We have house parties on our terrace or at home,” said Fernandes who has been organising them at his home for the past four to five years. House parties are preferred by a lot of people now. “You can do a lot more activities other than dancing with friends,” said Wendy Watts who lives in Four Bungalows and has been organising parties for the past six years. “Going out is not worth it as you cannot start partying before the midnight mass. There is little time to party after that. By the time you begin to enjoy, the party is over,” she added. Regulars at house parties swear by them. They say such parties can go on till the wee hours and there is no problem of commuting or harassment faced at night. While most people prepare delicacies at home, at some house parties guests are asked to get something. “We have planned secret Santa, where people receive anonymous gifts. The gifts are put inside a bean bag. No one knows who will pick what,” said Joy D’Souza who lives in Andheri.

Clubs to go footloose with jive, waltz

Clubs to go footloose with jive, waltz

Even as clubs and restobars are gearing up to host wild Christmas parties with peppy music by resident DJs, city gymkhanas and a few clubs are bringing alive the traditional ballroom dance forms such as jive, foxtrot and waltz. Western music and retro dance forms mark the spirit of Christmas at Catholic Gymkhana in Marine Drive. “We’ll have a western band called Brin to play retro and jive music on Christmas day. This is also the 100th year of Catholic Gymkhana, so the celebrations will be bigger. We want to restrict ourselves to retro music but if people want to listen to Bollywood, we may play a song or two,” said Norbert Periera of Catholic Gymkhana. He said that because of police restrictions they have stopped hosting Christmas party outdoors. “We will host it in a hall between 8pm and 2am.” At Willingdon Catholic Gymkhana in Santa Cruz, too, the focus is on ballroom dancing. An officer at the gymkhana said: “We will not play any fast numbers; we want couples to sway to waltz and jive. The band will only play music from the 60s and 70s.” “Many youngsters like to move to the latest music. We try to incorporate our beats. This time the popular ones that will be played are Senorita, Fevicol and Gangnam style,” said Dion Rodrigues, director of Lynn Sound, whose group will be playing at Bandra Gymkhana. But for jive enthusiast Ryan Oliver, the tradition of ballroom dancing on Christmas day is unique. “For Catholics, jive and ballroom are traditional dance forms. It cuts across age groups. The atmosphere in clubs is Christmasy and the attire is formal.” Mary Lobo, who organises salsa parties, said, “Salsa takes a backseat on Christmas. I make it a point to be part of the rock and roll parties as there is high energy and a sense of camaraderie too.”

India vs Pak: High voltage contest

India vs Pak: High voltage contest

India-Pak T20 clash, first bilateral match since 26/11, tonight

India last played Pakistan in a bilateral series in 2007 The two teams would be playing a bilateral series after five years India won the last bilateral series (2007) beating Pakistan 3-2 in the ODIs and 1-0 in Tests India-Pakistan have faced each other only thrice in T20 matches. All were ICC events India have not lost a single T20 match to Pakistan. India won two matches; one was a tie The first T20 match (Durban 2007 WT20) between the two was a tie. India won in bowl out India-Pakistan have played 16 ODI bilateral series of which Pakistan have won nine and India five. One series was drawn and other abandoned

What is Co-pay in health insurance policy ?

What is Co-pay in health insurance policy ?

Following the diktat from finance ministry to cut  losses, the public sector general insurance companies — New India, United India, National Insurance and Oriental Insurance– are likely to introduce co-pay ratio in all new group policies sold by them.

In simple terms, co-payment refers to the part of the eligible claim that a policyholder has to pay for, with the insurance company taking care of the balance amount. Typically, this ratio ranges from 10-25%. That is, for every claim of Rs 100 made, the policyholder has to shell out Rs 25 from her pocket, before the company contributes Rs 75.

Insurers employ this tool to discourage policyholders from availing of treatment which they would have avoided in the absence of the health cover. Similarly, it also keeps policyholders from opting for high-end hospitals.

However, the presence of co-pay clause in your policy does not necessarily imply that all your claims will be subject to the same. It could be triggered only in case of certain conditions. It can also come into play if the insured undergoes treatment in certain metropolitan cities despite paying premiums applicable to smaller cities.

Likewise, choosing healthcare facilities that are not part of the insurer's network of hospitals could necessitate co-payment by the insured. However, most senior citizen health covers include this clause in their terms, and it is typically applicable to all claims made.

Given the monetary implications of this clause, it would make immense sense to study your policy's terms and conditions closely before signing up for a new cover or renewing the existing one.

LPG Consumers can now fill up KYC form till 15th November

LPG Consumers can now fill up KYC form till 15^th November

 

Consumers in the KYC form have to gives all the necessary details like name, date of birth, father's name, mother's name, spouse name, complete address with pin-code and also an optional information about bank details

 

New Delhi: The government has extended by 15 days the deadline for filling the know your customer (KYC) form by LPG consumers to 15th November, reports PTI.

In a nationwide exercise to weed out multiple or ghost connections, the state-owned oil companies had previously asked their domestic cooking gas (LPG) distributors to collect and verify duly filled KYC forms from the consumers by 31st October.

"We have now decided to extend the deadline by 15 days to 15th November," a senior Oil Ministry official said here.

The drive to weed out multiple connections at same address follow last month's government decision to cap supply of subsidised LPG to six cylinders per household in a year.

The official said oil companies are implementing the policy of 'one household, one connection' and have asked consumers to voluntarily give up additional connections.

Multiple LPG connections in the 'same name and at the same address' as well as 'husband and wife' owning connections at the same address would be summarily disconnected.

In case of multiple connections at same address under different names, distributors have been asked to collect KYC forms to verify genuine users.

Consumers in the KYC form have to gives all the necessary details like name, date of birth, father's name, mother's name, spouse name, complete address with pin-code and also an optional information about bank details. They have to submit self-attested photocopies of address and ID proof along with the filled in form.

The official said transfer of LPG connection to family members during lifetime would be permitted, subject to certain conditions.

Also, transfer of LPG connections to legal heir in case of death of consumers would henceforth be done through a self-declaration by the next of kin and death certificate.

Previously, legal heir/succession certificate was required.

"All LPG consumers are eligible for three subsidised domestic cylinders during the remaining part of the current year ending 31 March 2013," the official said.

New subsidised LPG connections will be issued after completion of the KYC formalities and multiple connection check.

There is no restriction on the number of domestic non-subsidised cylinders that consumers can avail beyond the three subsidised LPG refills to meet their genuine demand.

From 1st April, next year, LPG consumers can avail six domestic subsidised LPG refill cylinders in a financial year.

There will be no restriction on the number of domestic non-subsidised cylinders that consumers can avail, beyond the six subsidised cylinders to meet their genuine demand.

Non-CTS 2010 Standard Cheques withdrawal time limit extended to March 31.2013

Non-CTS 2010 Standard Cheques withdrawal time limit extended to March 31.2013

 

RBI/2012-13/335
DPSS.CO.CHD.No.955/04.07.05/2012-13

December 14, 2012

 

Standardisation and Enhancement of Security Features in Cheque Forms-Migrating to CTS 2010 standards

 

1. A reference is invited to our circular DPSS.CO.CHD.No. 399/04.07.05/2012-13 dated September 3, 2012 advising all banks to arrange to issue only multi-city/payable at par CTS-2010 standard cheques not later than September 30, 2012 and to withdraw the non-CTS-2010 Standard cheques in circulation before December 31, 2012 by creating customer awareness. Further, banks holding post-dated EMI cheques (received either on their own behalf or on behalf of their NBFC clients) were advised to ensure the replacement   of non-CTS-2010 Standard cheques with CTS-2010 standard cheques before December 31, 2012.

 

2. While most of the banks have confirmed that they are issuing only multi-city/payable at par CTS-2010 standard cheques at present, representations have been received from various stakeholders requesting for extension of the time beyond December 31, 2012 for withdrawal / replacement of non-CTS-2010 Standard cheques / post-dated EMI cheques with CTS-2010 standard cheques.

 

3. Taking into consideration these representations, it has been decided to extend the time up to March 31, 2013 for banks to ensure withdrawal of non-CTS 2010 Standard cheques and replace them with CTS-2010 Standard cheques. However, it may be noted that the residual non-CTS-2010 Standard cheques that get presented in the clearing system beyond this extended period will continue to be accepted for the clearing but will be cleared at less frequent intervals. The modalities, charges applicable if any, etc. are being discussed with stakeholders and a separate  communication will follow in this regard.

 

4.  The above instructions are issued under section 18 of the Payment and Settlement Systems Act 2007 (Act 51 of 2007).

 

5. Please acknowledge receipt and ensure withdrawal of non-CTS-2010 Standard cheques within the extended  target date indicated above.

Nomination facility available for joint deposit accounts also

Nomination facility available for joint deposit accounts also

RBI/2012-13/333
RPCD.RRB.BC.No. 51/ 03.05.33/2012-13

December 12, 2012

All Regional Rural Banks

Dear Sir

The Banking Companies (Nomination) Rules, 1985 – Clarifications

 

1. Witness in nomination forms

As you are aware, the Banking Companies (Nomination) Rules, 1985 have been framed in exercise of powers conferred by Section 52 read with Sections 45ZA, 45ZC and 45ZE of the Banking Regulation Act, 1949. The nomination forms (DA1, DA2 and DA3) have also been prescribed in the Nomination Rules. These forms, inter alia, prescribe that the thumb impression of the accountholder is required to be attested by two witnesses. It has come to our notice that some banks also insist on attestation of signature by witnesses.

We have examined the issue in consultation with Indian  Banks’ Association and clarify that for the various Forms (DA1, DA2 and DA3 for Bank Deposits, Forms SC1, SC2 and SC3 for Articles left in Safe Custody, Forms SL1, SL1A, SL2, SL3 and SL3A for Safety Lockers) prescribed under Banking Companies Nomination Rules, 1985 only thumb-impressions(s) shall be attested by two witnesses. Signatures of the account holders need not be attested by witnesses.

 

2. Nomination in case of joint deposit accounts

It is understood that sometimes the customers opening joint accounts with or without “Either or Survivor ” mandate, are dissuaded from exercising the nomination facility. It is clarified that nomination facility is available for joint deposit accounts also. Banks are, therefore, advised to ensure that their branches offer nomination facility to all deposit accounts including joint accounts opened by the customers.

Banks are advised to ensure strict compliance of the instructions as per the clarification given above.

Bank should not levy penalty on conversion of one term deposit in other

Bank should not levy penalty on conversion of one term deposit in other

RBI /2012-13/334
RPCD.RRB.BC.No.52/03.05.33/2012-13

December 14, 2012

All Regional Rural Banks

Dear Sir/Madam

Conversion of Term Deposits, Daily Deposits or Recurring Deposits for Reinvestment in Term Deposits by Regional Rural Banks

As per extant instructions on interest rates on Deposits, RRBs on request from the depositor, should allow closure of a term deposit, a deposit in the form of daily deposit or recurring deposit, to enable the depositor to immediately reinvest the amount lying in the aforesaid deposits with the same bank in another term deposit. RRBs are required to pay interest in respect of such term deposit without reducing the interest by way of penalty provided that deposit remains with the bank after reinvestment for a period longer than the remaining period of the original contract.

2. On a review of the extant regulatory norms, and in order to facilitate better Asset Liability Management  (ALM), it has been decided to permit banks to formulate their own policies towards conversion of deposits with immediate effect.

Yours faithfully

(Beena Abdulrahman)
Deputy General Manager

Steps taken by Department to expedite Income Tax Refund

Steps taken by Department to expedite Income Tax Refund 

 

              Processing of returns of income , including those with refund claim, is a continuous process. Statutory time limit to process returns of income is with reference to the financial year of their receipt. As per the Income Tax Act, 1961 returns received during the financial year can be processed upto one year from the end of the financial year in which the return is received. Therefore, returns for the accounting  periods as F.Ys 2009-10 and 2010-11 if filed during F.Y. 2011-12 can be processed upto 31.03.2013. Normally, after processing of return, the refund generated is used in due course. The timelines for processing of return of income are complied with as these are contained in the Income Tax Act and statutorily enforceable.

The data for amount of refunds paid is maintained on all India basis and not region-wise. The all India data for refunds alongwith interest paid is tabulated as under:

Sl.No.	Financial Year	Refund (in Rs. crores)
1	2009-10	57349
2	2010-11	73441
3	2011-12	*95278
4.	2012-13 (upto Oct. 2012)	*51908

*figures are provisional

As the veracity and quantum of refund is determined on processing of the return of income (including matching of tax payment  data), there may be variation between the refund allowed and the claim made in the return of income. Thus, data about number as well as amount of refund due to be paid is not maintainable.

Grievances or claims about refunds, if any, received are looked into by the Assessing Officers concerned and appropriate action in accordance with the provisions of the Income Tax Act is taken.

Various steps taken by the Department to expedite refunds are as under:

i)                  Promoting e-filing of the returns for speedy processing

ii)                 Issuance of refunds through Refund Banker

iii)               Centralized Processing Centre (CPC) at Bengaluru has been set up to process e-returns.

iv)               Through Citizens’ Charter and other press releases issued by the Department, tax payers are requested to carefully mention the relevant particulars in return of income.

v)                TDS deductors are required to compulsory e-file their TDS returns on quarterly basis.

vi)               Mandatory quoting of deductee PAN in the quarterly statement of TDS filed by the deductors.

vii)             Facility of viewing the Tax Credit Statement in Form 26AS is made available to tax payers so that they can verify the TDS details before filing the return of income and take proper steps with the deductor(s) to rectify mistakes, if any.

viii)            Online viewing of status of tax payers refund is available for better information dissemination.

This was stated by the Minister of State for Finance, Shri S.S. Palanimanickam in a written reply to a question in the Lok Sabha today.

Your Motor insurance claim may be rejected if your friend dives your car ?

Your Motor insurance claim may be rejected if your friend dives your car ?

If you are thinking of going on a long drive and allowing your friend to drive your vehicle, you go to think again. God forbid, but in case if an accident occurs there are chances that your motor insurance claim may get rejected.

Among the latest proposal which the general insurance industry is taking to the  IRDA to boost profitability, it is said that claims in case of accidents would be rejected, if the vehicle is driven by a person not a part of the list provided at the time of buying the policy. Moreover, there are chances that your motor insurance premium would go up depending on how many in your family use the vehicle. 

The proposal is forwarded by general insurers to IRDA in an aim to increase their profitability, because it’s been quite some time now that a number of them have been facing losses. Such a move could also help in reducing fraud in case of third party claims. But I think that enforcing such a proposal could be difficult, because authenticity of the case could remain under doubt.

Five Points Govt Strategy taken to bring black money

Five Points Govt Strategy taken to bring black money

 

Government Adopts Five Pronged Strategy to bring back the blackMoney

 

The Central Government has been vigorously pursuing the cases of black money stashed abroad and in bringing them back. For this purpose, a five pronged strategy has been adopted which is as follows:

 

i) Joining the global crusade against ‘black money’ (for example out action in G 20, Global Forum on Transparencyand Exchange of Information for Tax purposes, Task Force on Financial Integrity and Economic Development, Financial Action Task Force, UN, OECD, etc.);

 

ii) Creating an appropriate legislative framework: (various anti tax evasion measures legislated in existing Act and proposed in the DTC, New DTAAs and TIEAs, amend existing DTAAs);

 

iii) Setting up institutions for dealing with illicit funds (10 Income Tax Overseas Units, dedicated computerized Exchange of Information [EIO Unit], FIU);

 

iv) Developing systems for implementation (ne manpower policy); and

 

v) Imparting skills to the manpower for effective action (constant training for skill development).

 

While these measures have started yielding results, Government is facing difficulties to bring back the money deposited with the Foreign/Swiss banks on various grounds such as non-availability of official estimates of black money stashed abroad, lack of information on the identity of the account holders who possess illicit money in foreign banks, the prohibition of fishing expedition in the taxtreaties, etc.

 

Drive against tax evasion is a continuous and ongoing process. The Income Tax Department takes several punitive and deterrent steps to unearth unaccounted money and curb tax evasion. These include scrutiny of tax returns, surveys, search and seizure actions, imposition of penalty and launching of prosecution in appropriate cases. Information technology is also used in a systematic way for collection and collation of information to take action against tax evaders.

This was stated by the Minister of State for Finance Shri S.S. Palanimanickam in a written reply to a question in the Rajya Sabha today.

SBI: Reduce fixed deposit minimum tenure to 3 days

SBI: Reduce fixed deposit minimum tenure to 3 days

 

Initially, SBI was paying 8.5 per cent interest for the scheme, now brought down to 6.5 per cent.

 

GRAND SCHEME

Unfixed deposit scheme of SBI, launched earlier in the year, became a huge success as the bank allows depositors to withdraw funds after seven days Initially, SBI was paying 8.5 per cent for the scheme, now been brought down to 6.5 per cent SBI had earlier requested RBI to allow banks to offer interest rate to current account holders. Present regulations do not allow this

 

Speaking on the issue of interest rates on savings bank deposits, SBI Chairman Pratip Chauduri said he had requested the regulator to reduce the tenure of minimum deposit from seven days to three days.

“We think a savings bank is not about rate of interests alone. It is about the facilities, the experience and so on. In fact, I am requesting RBI, time and again, that the tenure of minimum deposit be reduced from seven days to three days,” he said.

While most banks are facing difficulties in mobilising resources, reflected from the fact that deposit growth has been sluggish for two years, SBI’s deposit mobilisation remained robust. Chaudhuri said the bank had excess liquidity of Rs 55,000 crore to Rs 60,000 crore.

The central bank has remained non-committal on SBI’s request, bankers said. “If the tenure of a minimum fixed deposit is brought down to three days, then it is as good as a current account, which does not offer any interest. RBI has reservations on the request,” said a banker.

Bankers said in a recent interaction with RBI officials, SBI had also requested the central bank to allow banks to offer interest rate to current account holders. Present regulations prohibit this.

Source : BS

How IT will change our lives massively?

How IT will change our lives massively?

Gartner Inc’s annual predictions says a nexus of forces will drive massive transformation in many industries. The Gartner Predicts 2013 says most industries will face massive changes during the period from 2013 through 2015. CIOs and other IT and business leaders can use Gartner’s predictions and recommendations to better understand the forces that are changing their world and develop strategies to address the requirements of a fast-changing business environment. The top industry predictions include:

2014 Pay-as-you-drive insurance will rise significantly to account for 10% of overall annual auto insurance premiums. Less than 2% of consumers globally will adopt Near Field Communication (NFC)-based mobile payments. More than 50% of government shared-service organisations that provide cloud services by 2015 will discontinue or downscale them by 2017. Enterprise software spend will increase by 25% from current figures as a consequence of the proliferation of smart operational technology (OT). 2015 Non-traditional money creation and exchange will enable 125 million more people to participate in the mainstream global economy. Natural-language processing (NLP) use among large healthcare delivery organisations (HDOs) in English-speaking countries will quintuple, fueled by documentation, coding, quality reporting and research. To avoid becoming simply transaction factories, successful payer organisations will turn to information integration as their competitive differentiator. 50% of Tier 1 consumer goods manufacturers will invest in technology startups to maintain access to emerging business-to-consumer (B2C) technology. 2016 Three automakers will have announced concrete plans for upcoming automobile launches that will offer autonomous — or self-driving — vehicle technology. Patients will be harmed or placed at risk by a medical device security breach. National governments will require institutions to surrender student records for a redesigned, cost-cutting curriculum based on big data analysis. Half of US utility customers will have access to standardised energy usage data, but only 20% will use it. At least 25% of discrete manufacturers will adopt 3D printing to produce parts for products they sell or service. 2017 More than 50% of the media sold to advertisers by agencies will be priced based on performance.

Cash-on-delivery is old hat. So what’s new? Swipe-on-delivery.

Banks make card-swipe payments mobile

Cash-on-delivery is old hat. So what’s new? Swipe-on-delivery. More banks are tying up with payment system providers to tap the doorstep delivery market. On Thursday, Yes Bank launched a mobile point-of-sale (POS) payment mechanism. A small device connected to a GPRS-enabled mobile phone of the delivery person will help its customers to make payments by simply swiping their debit or credit card on doorstep delivery. “About 60-70% of the sales in the `9,300 crore e-commerce industry happen through the cash-on-delivery option,” said Chitra Pandeya, senior president of savings liabilities management, cards and direct banking at Yes Bank. “The idea is to not only take a part of the cash-on-delivery market, but also expand the pie.” Yes Bank is looking at insurance companies, restaurants chains and large corporates that offer home delivery or payment collection at home/office. The bank said mobile POS will reduce the high cost of the cash-on-delivery option and also make the system more transparent. Yes Bank’s move follows Axis Bank’s tie-up with Prizm Payments and Mswipe Technologies several months back to roll out Swipeon, a mobile phone-based card acceptance service. “It is disruptive in a way — it takes card acceptance to locations which were difficult to reach because of telecom connectivity issues or because of high cost of POS devices,” said Loney Antony, MD of Prizm Payments. Paymate, a mobile payments company, also launched an application called PayPOS that can be downloaded on the mobile phone along with the launch of a similar mobile POS device in May this year. Paymate, however, is more focused on attracting small businesses and community-run businesses. “India has many mom-and-pop businesses. We are looking at a huge segment of people who are outside the scope of electronic transactions because they are largely transacting in cash,” said Ajay Adiseshann, MD of Paymate. “This (swipe-on-doorstep option) helps the small businesses compete against the big guys, empowering them by giving them a payment option.”

KYC once done by one branch of bank should be valid for transfer of account within the bank

KYC once done by one branch of bank should be valid for transfer of account within the bank

 

RBI/2012-13/122
UBD.BPD (PCB) Cir. No. 3/14.01.062/2012-13

July 10, 2012

The Chief Executive Officer of
All Primary (Urban) Co-operative Banks

Madam/Dear Sir,

Intra-bank Deposit Accounts Portability

It has been brought to our notice that some banks are insisting on  opening  of fresh accounts by customers when customers approach them for transferring their account from one branch of the bank to another branch of the same bank. In such cases, insisting on opening of a fresh account or subjecting the customers to the full KYC procedures again causes inconvenience to them resulting in poor customer service. Further, in case of banks that are CBS enabled, the KYC records of a customer could be accessed by any branch of the bank and hence it is not reasonable for such banks to  subject the customer again to the full KYC procedure.

2. Banks are advised that KYC once done by one branch of the bank should be valid for transfer of the account within the bank as long as full KYC procedure has been done for the concerned account. The customer should be allowed to transfer his account from one branch to another branch without restrictions. In order to comply with KYC requirements of correct address of the person, fresh address proof may be obtained from him/her upon such transfer by the transferee branch. It may be noted that the instructions regarding periodical updation of KYC data in terms of paragraph 2.4(c) and those on  maintenance  of records of identity and transaction in terms of paragraph 2.15 of our Master Circular UBD. BPD. (PCB). MC. No.16 /12.05.001/2012-13 dated July 02, 2012 remain unchanged and banks will be required to carry out the updation at prescribed intervals as also maintain records of  transactions  and verification of identity as prescribed.

3. Please acknowledge receipt  to our Regional Office concerned.

Yours faithfully,

(A. Udgata)
Chief General Manager-in-Charge

 

What are soiled, mutilated and imperfect backnotes ? How and where it can be exchanged

What are soiled, mutilated and imperfect backnotes ? How and where it can be exchanged 

What are soiled, mutilated and imperfect banknotes?   
(i) "soiled note:" means a note which, has become dirty due to usage and also includes a two piece note pasted together wherein both the pieces presented belong to the same note, and form the entire note.

 (ii) Mutilated banknote is a banknote, of which a portion is missing or which is composed of more than two pieces.  

(iii) Imperfect banknote means any banknote, which is wholly or partially, obliterated, shrunk, washed, altered or indecipherable but does not include a mutilated banknote.  

Can soiled and mutilated banknotes be exchanged for value?   
Yes. Such banknotes can be exchanged for value.  

Where are soiled/mutilated banknotes accepted for exchange?  
All banks are authorized to accept soiled banknotes for full value. They are expected to extend the facility of exchange of soiled notes even to non-customers. All currency chest branches of commercial banks are authorised to adjudicate mutilated banknotes and pay value for these, in terms of the Reserve Bank of India (Note Refund) Rules, 2009  

How much value would one get in exchange of soiled banknotes?   
Soiled banknotes are exchanged for full value.  

How much value would one get in exchange of mutilated banknotes?   
 A mutilated banknote can be exchanged for full value if,  

(i) For denominations of Re. 1, Rs. 2, Rs. 5, Rs. 10 and Rs. 20, the area of the single largest undivided piece of the note presented is more than 50 percent of the area of respective denomination, rounded off to the next complete square centimeter.  

(ii) For denominations of Rs. 50, Rs.100, Rs. 500 and Rs. 1000, the area of the single largest undivided piece of the note presented is more than 65 percent of the area of respective denomination, rounded off to the next complete square centimetre.   Banknotes in denominations of Re. 1, Rs. 2, Rs. 5, Rs. 10 and Rs. 20, cannot be exchanged for half value.   A mutilated banknote in denominations of Rs.50, Rs.100, Rs.500 or Rs.1000, can be exchanged for half value if,The undivided area of the single largest piece of the note presented is equal to or more than 40 percent and less than or equal to 65 percent of the area of respective denomination, rounded off to the next complete square centimetre.  

How much value would one get in exchange of imperfect banknotes?   

The value of an imperfect note may be paid for full value / half value under rules as specified for mutilated notes if,  
 (i) the matter, which is printed on the note has not become totally illegible, and  
 (ii) it can be satisfied that it is a genuine note.  

What types of banknotes are not eligible for payment under the Note Refund Rules?   

 The following banknotes are not payable under the Reserve Bank of India (Note Refund) Rules 2009.  

A banknote for which the area of single largest undivided piece of note presented is less than or equal to 50% of area of the note for denominations of Re. 1, Rs. 2, Rs. 5, Rs. 10 and Rs. 20. the area of the single largest undivided piece of the note is less than 40 percent for denominations of Rs.50, Rs. 100, Rs. 500 and Rs. 1000.

A banknote which cannot be identified with certainty as a genuine note for which the Bank is liable under the Act,has been made imperfect or mutilated, thereby causing the note to appear to be of a higher denomination, or has been deliberately cut, torn, defaced, altered or dealt with in any other manner, not necessarily by the claimants, enabling the use of the same for making of a false claim under these rules or otherwise to defraud the Bank or the public, carries any extrinsic words or visible representations intended to convey or capable of conveying any message of a political or religious character or furthering the interest of any person or entity, has been imported into India by the claimant from any place outside India in contravention of the provision of any law.  

 What if a banknote is found to be non-payable?   
Non-payable banknotes are retained by the receiving banks and sent to the Reserve Bank where they are destroyed.

How to keep your financial documents in order?

What is your net worth?" This simple question from a financial advisor totally stumped a highnetworth businessman.

 

He had two cupboards full of papers – documents related to real estate agreements, fixed deposits, insurance policies and premium receipts, income tax filings, mutual fund investments and share certificates.

 

He definitely knew that he was worth something, but he just couldn't put a number to it. He just didn't have any idea of the worth of his investments or his liabilities to arrive at a ballpark figure. The amused advisor gave the businessman six folders, one each for insurance , income tax, real estate, shares, mutual funds and fixed deposits, and asked him to sort the documents accordingly.

 

Yes, finally the businessman figured out his net worth; but only after hours of hard work. According to investment experts, many individuals have documents scattered all over the place, some in office, some at home, some in a locker, some in some drawers. A part of it may be sorted systematically, and the remaining work is left for another day.

 

Such attitude can spoil all the hard work, say financial experts. What is the use of an insurance plan if it doesn't help the dependents to cope with the loss of the breadwinner ? Or what is the use of investments if you can't liquidate just in time? Financial advisors can recall many instances where the family came to know about the existence of an insurance policy or valuable investments accidentally after the death of the head of the family.

 

"Arrange your documents into two sets. One, where you need to store physical documents like PAN card, passport, insurance policies, and physical shares. The other set could include documents like mutual fund statements, bank statements, where retaining physical copies is not important.

 

"Involve your family and keep them informed about your investments so that it can be passed on to them with ease in case there is a need. Check your documents for accurate names tallying with your PAN card and nominate a person if you have not done so

 

SORTING THE DOCUMENTS

 

Keep the originals of documents related to your life insurance policy, medical insurance policy, PAN card, passport, driving licence safely. Not having original copies of these may cause a lot of inconvenience.

 

"Keep these documents in one separate folder. You could also get them scanned and store them in your computer or on a pen drive,".  If you hold physical shares, get them dematerialised immediately through a depository participant like a bank or a broker. "Today you cannot sell physical shares. In case you need the money, you would be stuck. Hence get them dematerialised at the earliest.

 

Having a demat account also helps to take care of your dividend warrants . All the dividends coming in for such shares will electronically be credited to your bank account, and hence there is no risk of losing them. In case of mutual fund investments , there are multiple statements which you receive. There is a quarterly statement from the registrar and an annual statement from the mutual fund you have invested in. Storing all statements in physical form is not essential.

"Your last transaction statement will give you details of all the investments in your folio. If you are comfortable, try storing them electronically. "We suggest investors open a new e-mail ID and register that with mutual funds. Once this is done, all your transaction statements will go to this mail ID, and it will be easier for you to locate them when required

 

While sorting the physical documents , you must also ensure that the documents are in order. For example , ensure that in a mutual fund statement the names of the holders should match that on the PAN cards. In case you have investments in a single name, ensure that you nominate a person. You can also scan important physical documents and store them electronically.

 

Many firms like ICICIDirect , oneassist and Perfios, among others, offer you electronic lockers to store your financial documents. The facility serves as a backup and retrieval tool for important documents . It can be used to store electronically scanned copies of important documents like legal agreements, policy documents, degree certificates and bank statements.

 

"In case you were to lose any physical copy of any document or need a printout and you are not carrying one, you can always access these copies from anywhere in the world

 

KEEP YOUR FAMILY INVOLVED

 

Don't keep your investments and insurance policies as the biggest surprise for your family after your death. Keep at least one member of the family in the loop, so that the person can do the needful. "At least one person close to you should be aware of your finances. In case people are hesitant to talk about numbers with their family or children, we ask them to share details with a close friend or a family member

 

You can also inform your family about these matters without giving them the numbers. For example, you can casually mention that you have a life insurance policy from XYZ company . Or you have invested in some mutual fund schemes.

Banking Laws Amendment Bill.

Banking Laws Amendment Bill.

 

The imminent passage of amendments to the Banking Laws in the lower house of the parliament is expected to pave the way for issuance of the new bank licenses by the RBI. Amongst various other things, the bill offers vital powers to RBI, firstly to supervise group companies (i.e to oversee connected lending) and secondly to supersede the entire board and make changes that can last upto 12 months (in a way power to control banks in the event of non-compliance to necessary standards). Additionally, the bill also increases the cap on voting rights proportional to shareholding for Private banks from 10% to 26% (with a key restriction entailing the RBI approval for acquisition of 5% or more of a bank's paid-up capital) and for PSU banks from 1% to 10%.

As per our long held view, based on the discussion paper and draft guidelines for the issue of licenses, L&T (through L&T Finance) looks like the most eligible candidate amongst corporates who have evinced interest in getting a bank license, as it is not a promoter driven corporate and has the requisite financial strength and corporate stature to promote a bank, in our view. However, post the sharp run-up, we believe L&T finance stock is very expensively priced (to put it in perspective, its market cap is similar to an existing new generation private bank, which is also growing rapidly and has 3x L&T Finance Balance sheet and PAT). Likely entry of new banks in the banking industry would also increase the acquisition prospects of older private banks. Amongst the old private banks, we like South Indian Bank, both as a standalone investment and also as a potential acquisition candidate, keeping in mind current valuation parameters like P/ABV and Market cap/Branch.

Ease in KYC norms for banks, could make banking hassle-free

You may have found the whole Know Your Client (KYC) process with banks thus far irksome, as some banks often ask for identification proofs over and over again. Some of them insist on introduction by an existing customer, even if you want to open a new bank account with them; which can be quite annoying if you are already furnished and complied with your KYC. 

But recently the Reserve Bank of India (RBI) eased the KYC norms for banks, which can make opening bank accounts and transacting hassle-free task for customers. In a communication to banks, RBI asked them not to insist on introduction by an existing customer while opening a new account, as it is not mandatory under any rule of the central bank. As long as the identity proof has an address that is the same as the address on which an account is being opened, there is no need for a separate address proof, said the RBI. 

Thus far banks have been asking for separate documents for the identification and address verification process. Now banking regulator has allowed rent agreements registered with the state Government or any other registration authority as a proof of address, while "Aadhar cards" as proof of residence and identity, if the address on the account opening form and Aadhaar are the same. Moreover job cards given under given under the rural job scheme, would also suffice as a valid document to open a bank account. 

I am of the view that, this initiative from RBI would indeed make opening bank account and transacting hassle-free for many individuals, and could aid in its agenda of inclusive banking as wider reach could be achieved with ease in KYC norms.

Can a bounce back in IIP, induce RBI to keeps interest rates high for long?

The Index of Industrial Production (IIP), after showing a slump in growth in the month of September 2012, bounced backed in October 2012. A favourable base effect helped the industrial output to touch 8.2%, it being the highest since the level clocked in June last year. Earlier in the month the core sector data of 6.5% for October 2012 also hinted that IIP could be better, and indeed it did.

Stronger upticks in manufacturing index, consumer goods index (both consumer durables and consumer non-durable), and capital goods had a bearing on the IIP data. 

But we are of view that, going forward industrial growth can occur with a lag, although slew of reform measure have been taken by the Government. There are yet many crucial bills which are awaiting clearance (such as the Pension Bill, Banking Law Amendment Bill, Insurance Bill, Real Estate (regulation & development) Bill), in the winter session of the Parliament; which are needed for inclusive growth to occur. 

The bounce back in IIP as mentioned earlier is a result of a favourable base effect and the advantage which the data has enjoyed by it being for the immediately preceding month before Diwali (which was celebrated in November 2012 this year), where industrial output is generally high in order to meet festive demand.

Can the RBI hold the interest rate at elevated for long? Well, the bounce back could be an excuse for the RBI not to reduce policy rates in it 3rd quarter mid review of monetary policy 2012-13 (scheduled on December 18, 2012) since WPI inflation is yet over the comfort zone and not showing signs of moderation. But going forward from the first quarter of the new calendar year, we could see policy rates being cut gradually taking into account growth-inflation dynamic, liquidity condition and external developments.

Now your Mutual Fund distributor can be booked under a case of mis-selling - a fraud!

Many of you may have encountered horrendous experience of financial products being mis-sold, in times where financial innovation is galore and competition in the financial services industry is severe. Fragmented knowledge on financial products on part of investors often causes this mis-selling to occur and this evil has been prevalent since quite some time now, especially in case of mutual funds and insurance products.

But now to crack the whip on the practice rampant mis-selling in mutual funds, the Securities and Exchange board of India (SEBI) has decided to to bring such activities under the ambit of fraudulent trade practices. The capital market regulator has recently brought in an amendment to the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, to include mis-selling of units of a mutual fund scheme under its ambit. 


Mis-selling of a mutual fund scheme under the aforesaid regulation will mean any sale of units of a mutual fund scheme by any person, directly or indirectly, by:

• making a false or mis-leading statement, or
• concealing or omitting material facts of the scheme, or
• concealing the associated risk factors of the scheme, or
• not taking reasonable care to ensure suitability of the scheme to the buyer

 

Thus now you could book your mutual fund distributor /agent under a case of fraud, if the he's "mis-selling" a mutual fund scheme to you. 

This move has come at a time, where there are rising numbers of cases of mis-selling of mutual fund products to investors. As investors, it is important to be responsible while making an investment decision, because eventually it could be difficult to prove cases of mis-selling. 

I also think that the industry should come-up with less complicated products which are unique in nature and not merely duplicate product by proffering fancy names. In their attempt to widen the reach and penetrate into the markets, the mutual fund industry should impart financial education which can be engaging and interesting for investors

No Messing around

No Messing around

If you’re a believer that professional sport is essentially a form of entertainment, then Lionel Messi has been unbeatable in 2012. He is the sports equivalent of The Beatles, Michael Jackson, Steven Spielberg or George Clooney — in the sense that, like them, so much of what the striker does is a hit

It’s the season for making merry and for choosing our top sports men and women of the year, two distinctly separate annual rituals that in fact dovetail neatly, because part of the joy and merriment of following sports is debating who is best at them. This being an Olympic year, we were spoiled for choice in 2012. Oscar Pistorius is a tempting candidate for most admirable sports person of the year, because of the Olympic history he made on his prosthetic legs. Click, click, click they went on the Olympic track, dismantling with a bang, bang, bang so many notions of what is and isn’t humanly possible. A fair play award should go to German footballer Miroslav Klose, for having the honesty to admit to the referee that his goal for Lazio against Napoli in September should not count because he knocked it in with his hand. Lance Armstrong would not have been stripped in 2012 of his Tour de France victories if, like Klose, he had resisted the temptation to cheat. Sports Illustrated went for LeBron James as its Sportsman of the Year, a safe choice because it was also the obvious one. James could not have had a more successful 2012 on a basketball court, winning the NBA championship with the Miami Heat, the NBA’s most valued player awards and Olympic gold in London with the US team. Olympic champion 20-kilometre race walker Chen Ding picked up an athlete award in his native China. The governing body of track and field gave its annual gongs to sprinters Usain Bolt and Allyson Felix. David Rudisha would have been an equally fine choice for the IAAF because the Kenyan runner was so impressive, as fluid and as powerful as the sea in a storm but controlled, too, when he won the Olympic 800 meters in world record time at the London Games. But in any language and across all disciplines, the sports person of 2012 should be Lionel Messi. For pure athleticism, a muscular colossus like Bolt is always going to stand taller than “the flea” — the nickname given by some to the 5-foot-5 footballer for Barcelona. Bolt is right: becoming the first sprinter this August to win both the 100 and 200 metres at consecutive Olympic Games made the Jamaican legendary. Another legend, swimmer Michael Phelps, also deserves a mention in any athlete of the year debate, because 2012 was when the American became the most decorated Olympian ever. Because of his chosen sport, Messi will never get remotely close to Phelps’ career haul of 18 Olympic golds — twice as many as anyone else — and 22 medals. Where Messi and Phelps do compare is longevity: Phelps won his medals over eight years at three Olympic Games; Messi made his competitive debut for Barcelona’s first team in 2004, the same year Phelps got his first Olympic medal, and has excelled ever since. The consistent brilliance of Messi’s play again this year is strengthening the argument that he should be considered above Pele and Diego Maradona as the best ever footballer. Messi will win that debate if, like them, he wins the World Cup in 2014. In football, there is an argument to be made that Cristiano Ronaldo should be elected player of the year in 2012 — because of the importance of his goals and play in helping Real Madrid become champions of Spain, ending the three-year lock Messi’s Barcelona had on that title. Football governing body FIFA hands out the Ballon d’Or award on January 7. Messi? Ronaldo? In truth, the margin between them in terms of success on the field is wafer-thin this year. But if you’re a believer that professional sport is essentially a form of entertainment, then Messi was unbeatable in 2012. He is the sports equivalent of The Beatles, Michael Jackson, Steven Spielberg or George Clooney — in the sense that, like them, so much of what Messi does is a hit. He seems so rarely, if ever, to have a bad game. Even when Barcelona loses, and it lost some big matches in 2012 with him playing, Messi still shines. The speed of his play, his agility, his passes, the way he draws defenders and opens up gaps that teammates exploit, makes the team visibly better. Proof of his quality as an entertainer is Messi’s new world record, for goals scored in a single year. His staggering 88 goals in 67 matches for Barcelona and Argentina works out at an average of more than a goal per game. Messi surpassed the 40-year mark of Gerd Mueller, who got 85 goals in 60 matches for Bayern Munich and West Germany in 1972. Barcelona have two final games in 2012 in which Messi could increase his total. In some games, of course, Messi scored more than once, in others none. But, essentially, if you tuned in or bought a ticket to watch Messi in 2012, you were pretty much guaranteed a good time. When opponents hack him down, Messi gets up again, no fuss. When he sets footballing milestones, he reminds everyone that he wouldn’t be so successful without teammates passing him the ball. Watching Messi dart here and there on the pitch never gets tiring. You never want to yell at your television when Messi is playing or talking. We expect a lot from our sports icons, often too much. But perhaps most of all we want the time that we spend with them — the 90 minutes of a match, the evening in a stadium — to be diverting and to make us feel good. With Messi, in 2012, it always did.