RBI’s New Credit Score Rules – What You Must Know (2025 Update)

By Dhan Shiksha | July 2025

The Reserve Bank of India (RBI) has introduced new rules to improve how credit scores are managed and reported in India. These changes will help people better understand their credit history, correct mistakes faster, and stay updated about their credit profile more easily.

 Let’s look at what’s changed and how it affects you.

🔄 1. Credit Reports Will Be Updated Every 15 Days

Earlier, banks and lenders updated your credit information once a month. Now, they must report updates every 15 days. That means:

• If you pay your loan or credit card bill on time, it will reflect sooner.

• If you miss a payment, that too will show quickly.

• Your credit score will be more current and accurate.

📃 2. One Free Full Credit Report Every Year

Every person is now allowed to get one free full credit report every year from each credit bureau (like CIBIL, Experian, etc.). This includes:

• Your credit score

• Details of your loans and credit cards

• Any delays or defaults, if applicable

You can use this report to track your credit health and take action if needed.

🛠️ 3. Credit Report Errors Must Be Fixed in 30 Days

If you find any wrong information in your credit report, you can raise a complaint. The credit bureau must:

• Investigate the issue

• Fix it within 30 days

This ensures your score isn’t affected by someone else's mistake.

📝 4. If Loan or Card is Rejected, You Must Be Told Why

If your loan or credit card application is rejected, the bank must now clearly tell you:

• The reason for rejection

• What part of your credit profile caused it

This helps you understand what to improve and how to apply again successfully.

📊 5. Credit Bureaus Will Follow Standard Format

All credit bureaus in India must now follow a uniform format for credit reporting. This means:

• Your score and report will look similar across all platforms

• No confusion due to different styles or data between bureaus

🔒 6. Better Handling of Bad Loans & Settlements

Companies that handle bad loans (like recovery or settlement firms) must now also report to credit bureaus in a standard format. This ensures:

• A complete and fair view of your credit history

• Even resolved or settled accounts are correctly shown

✅ What You Should Do Now

Here are some smart steps you can take:

• Check your credit report once a year for free

• Pay EMIs and credit card bills on time – now it reflects faster

• Raise a complaint immediately if your report has errors

• Ask for reason if any loan is rejected – it’s your right

💡 Conclusion

These new rules by RBI are designed to give more power and clarity to you – the consumer. Your credit history will now be more accurate, up-to-date, and easier to understand. It also means banks and lenders can no longer hide behind unclear processes.

Stay alert, check your credit regularly, and maintain a good credit score. This will help you get better loan offers, lower interest rates, and stronger financial freedom.

Stay smart with money – only on Dhan Shiksha.

🚗 Annual FASTag Pass for ₹3,000 | Govt’s New Toll Policy for Affordable & Hassle-Free Travel

India's highway travel is all set to become smoother, smarter, and more affordable. In a major move, Union Minister Nitin Gadkari has announced a new tolling reform—the Annual FASTag Pass—designed to simplify toll payments and ease the financial burden on frequent travelers.

This new initiative, set to launch from 15th August 2025, brings a sigh of relief for daily commuters and intercity travelers. By offering 200 toll trips or one-year validity at a flat fee of just ₹3,000, the scheme aims to make highway commuting on National Highways and Expressways more efficient, transparent, and cost-effective.

 Let’s understand what this pass is all about—and why it's a financial smart move:-

🔍 What is the Annual FASTag Pass?

Starting 15 August 2025, vehicle owners can opt for an Annual Toll Pass by paying a one-time fee of ₹3,000 per year. This pass will allow up to 200 toll trips or usage for one year, whichever comes first.

This facility is applicable to:

• Private vehicles: Cars, jeeps, and vans

• On all National Highways and Expressways

• Through the FASTag system already in use

💡 Key Highlights of the Scheme

Feature	Detail
Launch Date	15 August 2025
Cost	₹3,000 per vehicle
Usage Limit	200 trips or 1 year
Eligible Vehicles	Cars, Jeeps, Vans (Private Vehicles Only)
Available Through	FASTag-linked accounts (no new device needed)
App/Platform	Rajmarg Yatra App or NHAI Website

 

🤑 Why It’s a Great Deal

✅ Huge Savings

Currently, average one-way toll costs between ₹50–₹150. If you use the highway regularly, you’re likely spending ₹10,000–₹15,000+ per year. With this pass, you lock in 200 trips for just ₹3,000—that’s ₹15 per trip!

✅ Time Efficiency

Since the pass works through your existing FASTag, it’s a contactless, queue-free experience. Just zip through toll booths without worrying about recharge balances.

✅ Budget-Friendly for Commuters

For office-goers, traders, delivery drivers, and intercity travelers, this pass means predictable toll spending and better financial planning.

📲 How to Get It

You won’t need a new tag. Just:

1. Log in to your existing FASTag provider app (e.g., Paytm, ICICI, HDFC) or

2. Use the Rajmarg Yatra App or visit the NHAI/MoRTH website

3. Opt for the Annual Toll Pass

4. Pay ₹3,000 and you’re set for the year!

🚧 Why the Government Introduced This

Nitin Gadkari highlighted the need to:

• Reduce disputes at toll plazas

• Encourage digital tolling with FASTag

• Make travel affordable, especially for middle-class commuters

• Improve traffic flow and reduce congestion

⚠️ Things to Keep in Mind

• The 200 trips are valid across all toll plazas, but counted per trip.

• Applicable only for private vehicles.

• Once 200 trips are exhausted, normal toll rates will apply.

• The pass is non-transferable (tied to vehicle number).

📣 Final Thoughts by Dhan Shiksha

At Dhan Shiksha, we always advocate for practical financial tools that help manage everyday expenses better. The Annual FASTag Pass is a perfect example—spend ₹3,000 once, and potentially save thousands across the year.

This isn’t just a transport policy—it’s a money-smart decision for regular travelers.

🔔 Stay tuned for more updates on how to activate this pass step-by-step once it launches!

RBI’s New Nomination Guidelines: A Step Towards Protecting Your Wealth

In a significant move aimed at safeguarding depositor interests and reducing unclaimed funds in the banking system, the Reserve Bank of India (RBI) has rolled out new guidelines related to nominations in bank accounts and lockers. These changes are not just regulatory adjustments — they’re essential steps toward ensuring that your hard-earned money reaches your loved ones without unnecessary hassle.

 

Let’s break down what this means for you and how you can take advantage of the new provisions.

Why Are These Changes Important?

India has seen a growing volume of unclaimed deposits, often because there’s no nominee recorded or the nominee cannot be contacted. These situations place a huge emotional and financial burden on families. The RBI's updated nomination framework addresses these concerns head-on.

Key Updates You Should Know

✅ 1. Mandatory Nomination Across All Accounts

RBI has made it mandatory for banks to ensure nomination coverage for:

• Savings accounts

• Fixed deposits

• Safe custody articles

• Bank lockers

Banks must report their nomination compliance quarterly via the RBI’s DAKSH portal.

Why it matters: This forces banks to proactively engage customers in securing nominations.

✅ 2. Multiple Nominees Allowed

You can now nominate up to four individuals for your savings, fixed deposit, or locker accounts.

• Simultaneous Nomination: All nominees will have equal rights.

• Successive Nomination: Rights pass on in a specific order, as determined by you.

Why it matters: This offers greater flexibility and clarity, especially in families with multiple dependents.

✅ 3. Nominee Contact Information is Now Required

Banks will now collect email addresses and mobile numbers of nominees at the time of nomination. This ensures that banks can reach out directly to nominees in case of the account holder’s death or inactivity.

Why it matters: It speeds up communication and reduces the risk of the nominee being unaware of the funds.

✅ 4. Improved Customer Education & Staff Training

Banks are now directed to:

• Train their staff to help customers with nominations and claims

• Promote nomination awareness through branch campaigns, digital channels, and account opening processes

Why it matters: A more informed public means fewer disputes and faster access to funds in times of need.

What Should You Do Now?

If you haven’t already, here are 3 immediate steps you can take:

1. Check all your bank accounts to ensure a nominee is added.

2. Update nominee details with mobile numbers and email addresses.

3. Inform your family about your nominations — transparency avoids future confusion.

Final Thoughts from Dhan Shiksha

We always emphasize the importance of financial planning and legacy management. The new RBI nomination rules empower you to protect your wealth and your family’s future. Don’t delay — take action today and secure peace of mind for tomorrow.

💡 Tip: Make it a habit to review your nominations annually, especially after major life events like marriage, childbirth, or inheritance.

Stay connected with Dhan Shiksha for more updates, tips, and insights on growing and protecting your wealth.  💬 Share your thoughts in the comments 

NPS Vatsalya: A New Path to Secure Your Child’s Future with Tax Benefits

 As India increasingly emphasizes financial literacy and future security, the NPS Vatsalya Scheme, launched in 2024, emerges as a unique investment avenue for parents seeking to build a retirement corpus for their children—right from their early years. Beyond its long-term savings potential, this scheme offers attractive tax benefits under the Income Tax Act, making it a compelling option under the old tax regime.

In this post, we’ll decode the tax treatment of NPS Vatsalya and how parents or guardians can make the most of it.

🧒 What is NPS Vatsalya?

NPS Vatsalya is a child-focused extension of the National Pension System. It allows a parent or guardian to open an NPS account on behalf of a minor child (under 18 years). Contributions made to this account accumulate over decades, ensuring a financially stable retirement for the child.

💸 Tax Benefits of NPS Vatsalya

Let’s dive into how the scheme is treated from a tax perspective:

✅ 1. Deduction under Section 80CCD(1B)

• Contributions made to the child’s NPS Vatsalya account are eligible for a tax deduction of up to ₹50,000 per financial year.

• This is in addition to the ₹1.5 lakh deduction available under Section 80C.

• Important: This deduction is only available under the old tax regime.

🔁 2. Shared Deduction Limit

• If a parent contributes to both their own NPS account and the child’s NPS Vatsalya account, the combined deduction limit under Section 80CCD(1B) remains ₹50,000.

• This means the benefit cannot be claimed twice—it’s a cumulative limit.

📤 3. Tax Treatment on Withdrawal and Maturity

• Upon the child’s retirement age (60 years), the account matures.

• At that point:

  • 60% of the corpus can be withdrawn tax-free.

  • The remaining 40% must be used to purchase an annuity, which will provide pension income taxable in the hands of the child as per their slab rate.

💊 4. Partial Withdrawals – Tax-Free in Specific Cases

• Partial withdrawals (up to 25% of the contributions) are allowed for reasons such as:

  • Higher education

  • Treatment of critical illness

  • Disability

• These withdrawals are not taxed, provided they meet the specified conditions.

👨‍👩‍👧 Who Can Open NPS Vatsalya?

• Indian citizens who are parents or legal guardians of a minor child can open the account.

• Once the child turns 18, the account ownership shifts to them, and they can continue contributions.

💼 Investment and Contribution Rules

• Minimum Contribution: ₹1,000 per year

• No maximum limit, but tax benefit caps apply

• Offers flexible investment options—default, auto, or active choice

📌 Final Thoughts: Is NPS Vatsalya Right for You?

For long-term planners and parents looking to combine future security with present tax savings, NPS Vatsalya is a powerful tool. While the long lock-in period might seem like a drawback, it’s precisely what makes the scheme ideal for retirement-focused compounding.

Moreover, in a tax environment where benefits under the old regime are increasingly precious, this is one deduction you shouldn’t miss—especially if you're already inclined toward disciplined investing.

💬 Have questions or want to learn how to integrate NPS Vatsalya into your financial planning? Leave a comment or connect with us for a personalized consultation.

Gold and War: Why Indians Turn to Gold During Global Unrest

Throughout history, one truth has remained constant: gold shines brightest in times of darkness. Whenever the world grapples with war, economic turmoil, or uncertainty, Indians instinctively turn to gold—not just as a cultural asset, but as a time-tested financial shield.

🇮🇳 A Deep-Rooted Tradition

In India, gold isn’t just metal—it’s emotion, tradition, and security wrapped into one. Whether it’s a wedding gift, a Diwali investment, or a family heirloom, gold has always played a central role in Indian households. But during global unrest, this tradition transforms into a strategic financial decision.

 

🌍 War and Uncertainty: What Happens to the Global Economy?

When conflict breaks out—be it geopolitical tensions, wars, or economic sanctions—global markets react swiftly:

• Stock markets fall due to investor panic.

• Currencies weaken, especially those tied to volatile economies.

• Oil and commodity prices rise, pushing inflation higher.

In such times, gold emerges as a “safe haven” asset. It doesn’t lose value like paper money. In fact, gold prices usually rise during crises as global demand surges.

💰 Why Indians Flock to Gold During Global Crises

1. Historical Trust: Indians have seen generations weather economic instability by holding gold. From partition to pandemics, gold has been a silent protector.

2. Liquidity in Crisis: Gold can be easily sold or pledged. During emergencies, it’s quicker to get cash from gold than from most other assets.

3. Hedge Against Inflation: With rising global prices, money in the bank loses value over time. Gold, however, often appreciates in such conditions.

4. Weakened Rupee Advantage: Global conflicts often cause the Indian rupee to fall against the dollar. Since gold is priced in dollars, its value increases in rupees—giving Indian investors a double benefit.

5. Psychological Comfort: In uncertain times, owning something tangible like gold brings peace of mind. You can hold it, store it, and pass it on. It's not just wealth—it's wealth you can touch.

📊 Recent Examples

• Russia-Ukraine War (2022): Gold prices surged over 10% globally. Indian households increased gold purchases despite rising prices, signaling continued trust.

• COVID-19 Pandemic (2020): As global markets crashed, gold hit all-time highs, with Indian investors adding record quantities to their portfolios.

🛑 A Word of Caution

While gold is a solid hedge, it shouldn’t be your only investment. Over-reliance can reduce overall portfolio returns in the long term. Experts often recommend allocating 10-15% of your portfolio to gold for balance.

🪙 Forms of Gold Investment Today

• Physical Gold: Jewelry, coins, bars.

• Digital Gold: Buy & sell online without storage worries.

• Sovereign Gold Bonds (SGBs): Issued by RBI; offer interest and safety.

• Gold ETFs & Mutual Funds: For market-savvy investors.

✨ Final Thoughts by Dhan Shiksha

In times of war and uncertainty, gold becomes more than just an investment—it becomes assurance. For Indians, gold isn’t just a hedge against inflation or currency depreciation. It’s a legacy, a belief, and a symbol of resilience passed down through generations.

When the world shakes, gold stands still. And in that stillness, Indians find security.

⚠️ Disclaimer

The content on Dhan Shiksha is for educational purposes only. We are not SEBI-registered advisors and do not offer financial recommendations. Please consult a certified financial advisor before making investment decisions. We do not accept responsibility for any financial losses resulting from reliance on this information.

Defence Stocks in India: Ethical Investing or Profiting from Conflict?

As India strengthens its position as a global power, defense stocks have emerged as attractive investment opportunities. With rising defense budgets, strategic military developments, and a strong push for indigenous production under Atmanirbhar Bharat, companies like HAL, BEL, and BDL are catching investor attention and facing ongoing border tensions, companies in the defense sector have seen significant market momentum.

But this boom raises an important question for conscious investors:

Is investing in defense stocks an ethical decision, or are we simply profiting from conflict?

 

🇮🇳 The Strategic Importance of Defense Investments

India is the third-largest military spender globally. To reduce dependence on foreign suppliers and enhance national security, the government has been pushing for local manufacturing through initiatives like:

• Make in India

• Defence Acquisition Procedure (DAP)

• Increased FDI in defense manufacturing

As a result, companies like Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), Mazagon Dock Shipbuilders, and Bharat Dynamics Ltd (BDL) have become key players—and lucrative investment opportunities.

From a strategic perspective, investing in these stocks may be viewed as supporting national self-reliance and security infrastructure.

🇮🇳 Most Beneficial Aspects for India

Investing in defense companies isn’t just about returns—it also supports national development in key ways:

✅ 1. Strengthens National Security

Defense investments help India become more self-reliant and capable of defending its borders without foreign dependence.

✅ 2. Boosts ‘Make in India’ and ‘Atmanirbhar Bharat’

Defense production promotes domestic industry growth, reduces imports, and saves foreign currency.

✅ 3. Generates Employment and Technical Skills

The sector creates thousands of jobs in engineering, manufacturing, and advanced technology.

✅ 4. Drives Innovation and R&D

Indigenous research in defense technology can also benefit civilian applications like aerospace and electronics.

✅ 5. Increases Export Potential

India is becoming a reliable arms exporter, contributing positively to the trade balance and diplomatic ties.

✅ 6. Encourages Strong Public Sector Enterprises

DPSUs like BEL and HAL play a vital role in India's economy and strategic strength.

⚖️ The Ethical Dilemma: Profit vs. Principles, Where Do We Draw the Line?

Despite the financial upside, ethical concerns arise:

💣 1. Profiting from Conflict

Every spike in geopolitical tension often leads to a surge in defense stock prices. Does benefiting financially from regional instability or war-like conditions feel right? Critics argue that such profits come at the moral cost of human suffering and violence.

🌍 2. ESG and Social Responsibility

Globally, many ethical or ESG (Environmental, Social, Governance)-focused funds exclude defense manufacturers from their portfolios. These companies often fail to meet the social criteria of ESG due to the nature of their products—even if they're domestically oriented.

🔄 3. Opportunity Cost of Capital

Could the same investment in defense be redirected toward sectors that promote peace and human development, such as healthcare, education, or clean energy?

🧭 A Balanced Perspective: Defense for Peace

Ethical investing doesn’t always mean excluding certain sectors. It means aligning your investments with your values. It’s essential to differentiate between offensive militarism and defensive preparedness. India has a historically defensive military posture and follows a No First Use nuclear policy. Many defense companies, like BEL, also contribute to civilian technologies like electronics and radar systems for air traffic control.

Moreover, investing in Indian defense could be seen as supporting:

• National resilience

• Job creation in advanced manufacturing

• Technological innovation

For many investors, especially in India, this qualifies as value-aligned investing—supporting national interest without promoting aggression.

📈 What Should a Dhan Shiksha Reader Do?

At Dhan Shiksha, we encourage financial wisdom with ethical awareness. Here’s how you can approach this:

1. Define Your Values: Ask yourself where you draw the line—are you okay supporting defense as a necessity, or do you strictly avoid any association with weapons?

2. Do Due Diligence: Choose companies that are transparent, diversified, and contribute to dual-use technologies (military + civilian).

3. Balance Your Portfolio: If you choose to invest in defense, consider balancing it with sectors that promote long-term social good.

4. Stay Informed: Keep track of geopolitical developments and government policies to make informed decisions.

🔚 Conclusion: Ethics Is Personal—Invest Accordingly

The question isn’t black or white. For some, defense investing is a patriotic act. For others, it’s a red line. What matters is that your investment decisions reflect your values and financial goals.

Whether you choose to invest in defense stocks or not, let it be a conscious choice—because money should not just grow, it should grow with meaning.

📌 Final Thought

Defense investing isn’t just about weapons—it’s about protecting the nation, boosting innovation, and building a self-reliant India.

Still, it’s your money and your morals. Whether you invest in defense stocks or avoid them, do so consciously, not passively.

📢 Join the conversation:

What’s your take—are defense stocks a smart move, or a moral minefield? Let us know in the comments!

⚠️ Disclaimer

The content on Dhan Shiksha is for educational purposes only. We are not SEBI-registered advisors and do not offer financial recommendations. Please consult a certified financial advisor before making investment decisions. We do not accept responsibility for any financial losses resulting from reliance on this information.

💼 How to Use the RBI Integrated Ombudsman Scheme for Financial Grievances

Facing issues with your bank, NBFC, or digital wallet? Don’t worry – the Reserve Bank of India (RBI) has your back. With the Integrated Ombudsman Scheme, you no longer need to feel helpless when financial institutions don’t respond fairly or timely to your complaints.

At Dhan Shiksha, we believe financial awareness is your right. Here’s everything you need to know to take action and get your issues resolved the right way. 

🔍 What is the RBI Integrated Ombudsman Scheme?

Launched in November 2021, this scheme unifies various RBI grievance redressal mechanisms into one simple and powerful platform. It covers:

• Banks

• NBFCs

• Payment system operators (like UPI, wallets, etc.)

So whether your problem is with a delayed refund, a failed UPI transfer, or an unfair loan charge, the RBI is ready to help.

✅ Step-by-Step Guide to File a Complaint

Step 1: First, Complain to the Bank or Financial Institution

As per RBI rules, you must first:

• Register a complaint with the concerned financial institution.

• Wait 30 days for a resolution.

If they don't resolve your issue or you’re not satisfied with the response, you can approach the RBI Ombudsman.

Step 2: File a Complaint with RBI

You can lodge your complaint in three easy ways:

🔹 1. Online (Recommended)

Visit: https://cms.rbi.org.in

• Click “File a Complaint”

• Fill in your details and upload supporting documents

• Submit and note your reference number

🔹 2. By Email

Send your complaint with full  details to: crpc@rbi.org.in

🔹 3. By Post

Write to: 

Centralized Receipt and Processing Centre (CRPC)  

Reserve Bank of India,  

4th Floor, Sector 17, Chandigarh – 160017

Step 3: Follow-Up and Resolution

• RBI reviews your complaint and may contact you for clarification.

• If needed, they facilitate a settlement or mediation.

• Most complaints are resolved within 90 days.

• If the complaint is found valid, you may receive compensation or correction of the issue.

📝 What Kind of Complaints Can You File?

Here are common issues covered:

• Failed or delayed transactions

• Unauthorized debit/credit

• Excessive or unfair charges

• Misbehavior by bank staff or recovery agents

• Non-response to complaints

🚫 What Is Not Covered?

• Disputes already in court or tribunal

• Anonymous complaints

• HR issues between banks and employees

💡 Dhan Shiksha Tips

• Always keep a written record of emails, messages, and transactions.

• Make your complaint clear and factual, not emotional.

• Attach proof wherever possible (screenshots, statements, etc.)

Final Thoughts

Financial justice shouldn’t be complicated. Thanks to the RBI Integrated Ombudsman Scheme, every Indian has a reliable way to resolve grievances and hold institutions accountable.

At Dhan Shiksha, we empower you with the tools and knowledge to protect your wealth. Don’t hesitate to stand up for your financial rights!

🔔 Have a financial grievance? Try the Ombudsman portal today: https://cms.rbi.org.in

📱 RBI Retail Direct App: A Game Changer for Small Investors in India

💡 Introduction

The Reserve Bank of India (RBI) has taken a major leap towards democratizing investment in government securities with the launch of the RBI Retail Direct Mobile App. This digital initiative makes it easier than ever for retail investors like you and me to invest in Government of India bonds, Treasury Bills, and Sovereign Gold Bonds (SGBs) — all from the comfort of a smartphone.

In today’s article, we’ll break down what the app offers, how you can use it, and why it could become a smart component of your long-term wealth-building strategy.

🏦 What is RBI Retail Direct?

First launched as a scheme in November 2021, the RBI Retail Direct platform allows individual investors to open a Retail Direct Gilt (RDG) Account directly with the RBI. Until recently, the entire process was web-based. But now, with the mobile app available, investing in government securities is as simple as using your favorite UPI app.

📲 Key Features of the App

Here’s what makes the RBI Retail Direct App a powerful tool for Indian investors:

• ✅ Open an RDG Account directly from your mobile

• ✅ Invest in primary auctions of G-Secs, T-Bills, and SGBs

• ✅ Buy/sell in the secondary market through NDS-OM Retail platform

• ✅ Apply for Floating Rate Savings Bonds (FRSB) 2020 (Taxable)

• ✅ Single Sign-On (SSO): Seamless access between different platforms

• ✅ In-app video tutorials and guides for beginners

• ✅ Zero account opening or maintenance charges

🎯 Why Should You Use It?

• 🔐 Safety First: You’re investing directly with the Government of India, making these some of the safest financial instruments available.

• 💼 Diversification: Including government bonds in your portfolio can balance the risk from equity or mutual fund investments.

• 📉 Lower Volatility: Ideal for conservative investors or those nearing retirement.

• 📈 Better Than FD?: Long-term government securities often offer higher returns than bank fixed deposits, especially after tax adjustments.

🧾 Who Can Use It?

To get started, you’ll need:

• A Savings Bank Account in India

• A valid PAN Card

• A valid Mobile Number & Email ID

• An OVD (Officially Valid Document) for KYC

Even NRIs (Non-Resident Indians), as permitted under FEMA, can open an account.

📥 Where to Download?

• 📱 Android: Download from Google Play Store

• 📱 iOS: Download from Apple App Store

🧠 Final Thoughts from Dhan Shiksha

At Dhan Shiksha, we believe that financial wisdom must reach the grassroots. The RBI Retail Direct App is not just another fintech product — it’s a government-backed revolution in retail investing. With zero intermediaries, no fees, and absolute transparency, this app deserves a place on every serious investor’s smartphone.

Start small, stay consistent, and use tools like this to secure your financial future. 💰📊

📝 Ready to invest in India’s growth while building your own wealth?
Explore more at rbiretaildirect.org.in

⚠️ Disclaimer

The content on Dhan Shiksha is for educational purposes only. We are not SEBI-registered advisors and do not offer financial recommendations. Please consult a certified financial advisor before making investment decisions. We do not accept responsibility for any financial losses resulting from reliance on this information.

🛡️ What Happens If Your Bank Fails? DICGC Ensures Safety Up to ₹5 Lakh – Dhan Shiksha

 Is your hard-earned money in the bank truly safe?

What if your bank suddenly shuts down or collapses?

That’s where DICGC (Deposit Insurance and Credit Guarantee Corporation) steps in — an institution designed to protect depositors like you.

Let’s break it down in simple terms.

💡 What is DICGC?

DICGC is a wholly-owned subsidiary of the Reserve Bank of India (RBI). Its main function is to insure bank deposits, so that in case a bank fails, customers don't lose their savings.

✅ What Does DICGC Cover?

DICGC insures up to ₹5 lakh per depositor per bank, covering:

• 🏦 Savings accounts

• 📆 Fixed deposits

• 🔄 Recurring deposits

• 💼 Current accounts

🔸 The ₹5 lakh limit includes both principal and interest.

📌 Note: This limit applies per bank, not per account. So even if you have multiple accounts in the same bank, the total insurance is still capped at ₹5 lakh.

🚫 What DICGC Does Not Cover:

• Deposits of foreign governments or central/state governments

• Inter-bank deposits (bank to bank)

• Deposits kept outside India

• Certain obligations of cooperative banks

🔍 Real-Life Example: PMC Bank Crisis (2019)

In 2019, PMC Bank, a major cooperative bank, collapsed due to a massive loan fraud.

👉 Many customers had lakhs and crores of rupees stuck.
👉 Initially, RBI placed restrictions on withdrawals.
👉 But thanks to DICGC, each depositor received up to ₹5 lakh, even if their total deposit was much higher.

📅 As per updated rules, DICGC now pays eligible depositors within 90 days of a bank being declared under moratorium.

🔐 How to Fully Protect Your Money?

If you have more than ₹5 lakh in deposits, here’s how to stay safe:

1. 💳 Split your funds across multiple banks

2. 📈 Consider investing some portion in government-backed schemes or mutual funds

3. 🧐 Be cautious while depositing in small or cooperative banks – check their financial health

📌 Final Thoughts – Dhan Shiksha’s Advice

DICGC gives you basic protection up to ₹5 lakh, but for long-term financial security, smart money management is essential.

Never put all your eggs in one basket.
Remember — a wise investor always plans for both growth and safety.

👉 Stay tuned to Dhan Shiksha for more practical financial wisdom and insights that protect and grow your wealth.
Because where there is knowledge, there is prosperity. 💰📚

Essential Mobile Banking Security Tips for Safe and Smart Transactions

In today’s fast-paced world, mobile banking has become an essential part of managing personal finances. It’s convenient, efficient, and allows you to carry out transactions at the touch of a button. However, with the rise in cyber threats, ensuring the security of your financial information is more crucial than ever.

At Dhan Shiksha, we believe that financial safety goes beyond just managing your money—it’s about protecting it from potential threats. Below, we share top mobile banking safety tips you can’t afford to ignore to safeguard your finances.

1. Use Strong Passwords and PINs

Your password is the first line of defense against unauthorized access. Avoid using simple passwords, such as your name or date of birth. A strong password should include a combination of uppercase and lowercase letters, numbers, and special characters.

Furthermore, use a unique PIN for your mobile banking app that differs from the ones you use for other services. Changing your passwords regularly and ensuring they are complex will make it harder for hackers to gain access.

2. Enable Two-Factor Authentication (2FA)

Two-factor authentication (2FA) adds an extra layer of protection by requiring a second form of verification, such as a one-time password (OTP) sent to your phone or email. This makes it harder for cybercriminals to gain access, even if they manage to obtain your password. Always enable 2FA for your mobile banking app to enhance security.

3. Keep Your App Updated

Just like any other software, mobile banking apps frequently receive updates that address security vulnerabilities. Keeping your app up to date ensures that you’re protected from the latest cyber threats. Set your app to update automatically or check for updates regularly.

4. Avoid Using Public Wi-Fi

While it’s tempting to use public Wi-Fi networks in cafes or airports, these networks are notorious for being insecure. Hackers can easily intercept data transmitted over public Wi-Fi, including your banking credentials. If you must use public Wi-Fi, always use a Virtual Private Network (VPN) to encrypt your connection and protect your data.

5. Secure Your Device with Passwords or Biometrics

The security of your mobile device plays a pivotal role in protecting your banking information. Always secure your phone with a password, PIN, or biometric authentication (fingerprint or face recognition). This ensures that even if your phone is lost or stolen, your data remains secure.

6. Regularly Monitor Your Accounts

One of the best ways to detect unauthorized activity is by checking your accounts regularly. Make it a habit to review your bank statements and transaction history to spot any unfamiliar transactions. If you notice anything suspicious, report it to your bank immediately for further action.

7. Be Cautious of Phishing Scams

Phishing scams are a common way for cybercriminals to steal your banking details. These scams often come in the form of unsolicited emails, text messages, or phone calls pretending to be from your bank. They may ask you to click on a link or provide personal information. Always verify the authenticity of such messages before clicking on any links or sharing your details. Remember, your bank will never ask for sensitive information through email or text.

8. Log Out After Each Session

Many people make the mistake of staying logged into their mobile banking app after completing a transaction. This can leave your account vulnerable, especially if someone gains access to your phone. Always log out after each session to ensure your account remains secure.

9. Install Trusted Antivirus Software

Mobile viruses and malware can compromise your banking security. Installing a trusted antivirus or anti-malware app can help detect and remove harmful software that may try to steal your personal information. Ensure that the antivirus software is updated regularly for optimal protection.

10. Only Download Trusted Apps

When downloading mobile banking apps or other apps that may have access to your personal information, always use official app stores like Google Play Store or Apple App Store. Avoid downloading apps from third-party websites or suspicious sources, as they may contain malicious software designed to steal your data.

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Final Thoughts

Mobile banking offers an incredible level of convenience, but with convenience comes responsibility. By following these essential mobile banking safety tips, you can protect your financial information from potential cyber threats. At Dhan Shiksha, we aim to empower you with the knowledge and tools to make smart decisions, both in managing your finances and in securing them.

Take action now—secure your mobile banking today, and enjoy peace of mind tomorrow!

RBI’s Digital Lending Guidelines Explained: What Borrowers Must Know

The Reserve Bank of India (RBI) has issued comprehensive guidelines to regulate digital lending activities to protect borrowers and ensure a fair and transparent lending ecosystem. These guidelines address various concerns arising from the rapid growth of digital lending platforms, including issues related to data privacy, transparency in pricing, and unethical recovery practices. Here's what borrowers must know about these guidelines:

🔐 1. Data Privacy and Security

• Minimal Data Collection: Lenders are permitted to collect only essential information required for loan processing, such as name, address, and contact details. Sensitive data like biometric information is prohibited.​

• Data Storage: All borrower data must be stored on servers located within India, in compliance with regulatory requirements.

📄 2. Transparent Loan Terms

• Key Fact Statement (KFS): Before loan sanctioning, borrowers must receive a standardized KFS detailing:

  • Annual Percentage Rate (APR)

  • All applicable fees and charges

  • Repayment schedule

  • Cooling-off period

  • Grievance redressal contact information .​

• Cooling-Off Period: Borrowers can exit the loan within a specified period by repaying the principal and proportionate APR without any penalty.

• For floating rate loans, lenders must inform borrowers about changes in the APR via SMS or email whenever a revision occurs.​

💳 3. Fair Pricing and Charges

• APR Disclosure: Lenders must disclose the all-inclusive cost of the loan as an APR, which includes interest rates and all fees .​

• Prohibited Practices: Automatic credit limit increases without explicit borrower consent are prohibited.

🏦 4. Direct Transactions Only

• Fund Flow Restrictions: Loan disbursals and repayments must be conducted directly between the borrower's bank account and the regulated entity (bank or NBFC). Third-party pass-through accounts are not permitted .​

• Fee Payments: Any fees payable to Lending Service Providers (LSPs) must be paid directly by the regulated entity and not by the borrower.​

📞 5. Grievance Redressal Mechanism

• Dedicated Officers: Both lenders and their LSPs must appoint nodal grievance redressal officers to address digital lending-related complaints.​

• Accessibility: Contact details of grievance officers must be prominently displayed on the lender's website and within the digital lending app .​

🛡️ 6. Ethical Recovery Practices

• Recovery Agents: Borrowers must be informed about the recovery agents at the time of loan sanctioning. Recovery actions should be ethical and transparent .​

• Cash Collections: In cases of delinquency, cash-based recovery is permitted only when absolutely necessary, and such transactions must be duly recorded.​

🧾 7. Digital Documentation

• eSign Requirement: Loan documents must be digitally signed by both the lender and the borrower, ensuring compliance with the Information Technology Act.​

• Secure Consent: Borrowers must provide explicit consent for loan agreements, accompanied by a secure audit trail .​

🆘 8. Borrower Rights

• Right to Exit: Borrowers have the right to exit the loan within the cooling-off period by repaying the principal and proportionate APR without penalty.​

• Right to Information: Borrowers must be provided with clear and comprehensive information about loan terms, fees, and repayment schedules.​

⚠️ 9. Regulatory Oversight

• Compliance Enforcement: The RBI has taken action against non-compliant entities, including prohibiting certain non-bank finance companies from issuing new loans due to violations in lending practices .​