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Volume 1, Issue 1
BFS93
31
st
Jan, 2014
Weekly
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RBI panel wants retail inflation as new policy
benchmark
The Urjit Patel committee on monetary policy
framework has proposed setting up of a monetary
policy committee that will be headed by the RBI
governor and accountable for achieving inflation
target set by it.
The committee has recommended that retail
inflation, measured by the Consumer Price Index,
replace wholesale inflation as the price anchor.
FLIPs View: The focus will remain on inflation if
RBI were to accept these recommendations, which
is probably the right way to go based on the logic
that only low inflation can sustain higher growth
over the long term. The big question is, with
elections around the corner, will the finance
ministry want to signal lower rates to please
industry?
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Getting a PAN made stricter
The procedure for PAN allotment will undergo a
change from February 3. Every applicant will have
to submit self-attested copies of proof of identity,
address and date of birth documents and also
produce original documents for verification
Decision was taken after the Income Tax
Department noticed a lot of cases where people
were giving false information in the application to
get a duplicate PAN in some cases and to get the
card even when they were not eligible for it in other
cases.
FLIPs View: PAN and Aadhaar will be two
documents that will stand the test of time. Any
tightness on both is a good step.
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Hawkish action, dovish guidance from RBI
RBI has raised the repo rate by 25 bps on
inflationary concerns. However, it said if retail
inflation eased as projected, further near-term
monetary tightening is not anticipated.
FLIPs View: As the media said a hawkish policy
with a dovish guidance. I think, like the fed, all
future moves will be data dependent. Given the fed
tapering, my take the guv is in no hurry to drop
rates.
The week that was. The week that was.
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Updates @ FLIP
FLIP launches Excel for Professionals
Excel skills are becoming an imperative to survive
and perform in todays professional environment.
Recognizing the need for training here, we have
recently launched a comprehensive program on
MS-Excel.

The program is divided into 3 major sections:
Excel: Basics - This covers how to get started
with Excel, manage data, use formulae, and how
to present data effectively through visual
representations.
Excel: Advanced - This covers functions like Goal
seek, H-Lookup, V-Lookup, Pivot Tables etc. These
functions help in data analysis and report creation.
Excel for Finance-This part explains finance
related functionalities of Excel like PV, FV, NPV,
IRR, NPV, PMT, IPMT, PPMT, CUMPRINC etc.
through real-life examples.
The program is ideal for both students aspiring to
make their careers in finance as well as people
working in areas where data analysis is critical.
In fact, even sales teams in companies would it
find it useful for the data presentation and tracking
skills in excel.
Click here to know more and master the
spreadsheet.
FLIP - setting a BFS knowledge
benchmark.




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Did you know?

SBI is on YouTube now!
State Bank of India has recently started a channel
on YouTube, named as SBIconnex
(http://www.youtube.com/user/SBIconnex)


Term of the Week
Unclaimed Dividends








The bank aims to increase its social media presence to connect with
customers from the new generation. It already has a dedicated Facebook
page since Nov 2013.
The channel will initially have information about the banks products and
services and its legacy to begin with and will gradually include philanthropic
initiatives.
It also has plans to come up on Twitter soon.
One more testimony to growing power of social media!
For more interesting BFS updates, like us on facebook.

Well talk about unclaimed dividends this
week.
Lets begin with an interesting statistic -

The ministry of corporate affairs data
showed unpaid and unclaimed amounts
with companies stood at INR 700 crore
at the end of FY2013


BFS Crunch @ FLIP
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Lets first understand how we receive dividend:
The company either sends a cheque to the shareholder or the amount gets credited
to the shareholders bank account (if he/she has shared his account details with the
company and is KYC compliant).
Now, in case the cheque doesnt reach the shareholder or the account doesnt get
credited (due to change in address/bank account etc.) within 30 days of announcing
dividend, the company has to transfer the funds into unclaimed dividend account
(which is a separate bank account).
Investors can claim the amount from this account anytime in the next seven years.
After that, it goes to the Investor Education and Protection Fund (IEPF) managed by
the corporate affairs ministry.
Note: Investors cant claim the dividend amount once it gets transferred to IEPF.
These funds are shown under current liabilities in the liabilities section of the
company and are incorporated under bank balances in the current assets section.
Companies like Reliance Industries Limited (RIL) hold more than INR 100
Crores in their unclaimed dividend accounts.
The government wants to strengthen the penalties framework around this, to ensure
that these funds are not misused.