P015 - Lessons learned from 30 years of banking

[hgkeller771]

@rski Can tell us what kind Demat Fraud you experienced and if possible the account provider (Broker). So others can be aware such fraud.

 

[resjudicata]

@hgkeller771 If you have a cdsl demat, you can lock your securites online at the depository level thru their app. Debit lock or credit lock or full lock.

One possible negative outcome is that your broker may not provide online valuation of your portfolio ( at least with zeroda). And I am not sure if the unlock is instantaneous or takes time

NSDL folks.. sorry. I think you have to approach thru the broker.

SEBI has also introduced provisions that allow brokers to do away with POA. Apparently a pin will be sent to the account holder to validate the transaction. This is compulsory for all new demat accounts.

Duniya badal rahi hai.

 

[olyasemikina]

@rski Is your expenditure account a current or savings account? If have a high volume of transactions, say more than 30 in a month, can we still use savings account?

 

[transcon]

@olyasemikina Yes, you can!

 

[lovelifelln]

@rski Do you keep most of your money in the savings account or the income account? Also have you decided a fixed amount that will be transferred to the expenditure account every month? Thanks, I really like your approach and I want to try it.

 

[rski]

@lovelifelln I track expenditure and saving , income accounts don’t have much balance

 

[lovelifelln]

@rski When you receive salary or income in your income account what do you do with it? Do you transfer them to your expenditure account or saving account or both? Where do you keep the money that you got from an investment but you are not immediately investing some where else?

 

[rski]

@lovelifelln One part to expenditure , one to investment

Redemption proceeds that are not immediately invested are held in arbitrage funds

STCG is 15 %
LTCG is 10 %

Both much lower than my marginal rate of 30 % plus 10 % surcharge

 

[jackou]

@rski Never knew this approach had as much support and validation. I seem to have landed on A, B & C just by trial and error I guess. Good to know I'm on roughly the right track.

 

[rski]

@jackou You are very much on the right track , never keep your assets and liabilities in the same bank

 

[resjudicata]

@rski Lol, you should have just moved to US or Singapore.

 

[revealedtruths]

@rski I believe talking about the frauds in detail would have helped the forum more.

 

[rski]

@revealedtruths That is not the purpose of this thread . Fraud is something one will face in life , I would rather talk about how to mitigate it

 

[resjudicata]

@rski Please do whenever you get time

 

[patriotraider]

@rski Thank you very much for sharing the lessons learned. Your solutions make a lot of sense. It will be good for lesser experienced of us if you elaborate a little more on frauds you witnessed - particularly demat one.

 

[resjudicata]

@rski @rski

7.Forex cards not working in foreign countries
8.Cards being blocked as soon as I have tried to use them in a foreign land

Can you elucidate on 7 with instances.

Buying online with forex cards is a hit/miss. Based on personal experience Apple/Dell etc do not accept. It depends on the payment processor but physical swipes should not be a issue.

On 8, it is likely the fraud detection software at the bank raising a false alarm. Normally banks will try to call/text you to verify or send a notification mail at the very least warning of access attempts.

 

[resjudicata]

@rski Interesting. What was the reason provided by the card issuer, if I may ask ?

Normally these cards are activated/updated daily @ 8-9 pm in a batch run, once the cards are funded in INR.

48 hrs seems a lot unless there have been funding issues.

 

[rski]

@resjudicata I have no clue , what’s weird is they were used 3 days after they had been loaded I.e money had left my account .

The last thing I am Interested in spending 40 min with customer support from a foreign country .

 

[resjudicata]

@rski

The last thing I am Interested in spending 40 min with customer support from a foreign country .

This is the most messed up thing a person can face.

I was curious about you repeatedly facing this issue. I have heard of one off cases but they are due to pin problems.

Especially since I have been associated with this product for more than a decade from most major issuers and it seems that it has settled down well for standard physical swipes so I was trying to analyse the issue.

 

[daizy]

@rski Completely agree with everything you said. As a wise man said, "only the paranoid survive!"

Obviously the diversification across companies is endless, but I wonder whether you plan to have 2 demat accounts, possibly across two different depositories?

Also, why is it important to you to have a salary account which has no assets and liabilities? If I understand your logic, you want to ensure the entity who has your liabilities does not have a direct claim on your assets. But why do you need a salary account which has no assets or liabilities? Is the only reason to avoid a MAB, if and when you change your employer? Or is there anything else?