Category: Personal Finance

What Is Fiat Money?

Most of the money we use today cash, cards, or online payments is fiat money. But few people truly understand the meaning of fiat money. This money isn’t backed by gold or silver, but by government guarantees and public trust. Inflation, interest rates, investments, and your savings all are directly linked to fiat currency. In this blog, we’ll explain it in simple terms.

What is Fiat Money and How It Functions

Fiat Money Meaning

Fiat Money or Fiat Currency simply means money that has no intrinsic value, but rather its value is determined by legal tender status enforced by the government. For example, the Indian rupee or the US dollar their denominations are often much higher than their actual paper value. Gold and silver are valuable because of their metal content, but fiat currency is valid only because of its legal status and government guarantee. People accept it because taxes, bills, and other transactions are all conducted in it, maintaining its trustworthiness.

What is Fiat Money?

Fiat money refers to currency legally issued by a country’s government and required to be accepted for all transactions. In India, the Reserve Bank of India (RBI) performs this function, while in the US, the Federal Reserve performs this responsibility. Fiat currency enters the economy through government spending, bank lending, and digital payment systems. Decisions such as interest rates, currency printing, and liquidity are controlled by government monetary policy. Today, everything trade, banking, UPI, and online transactions runs on this system.

How does Fiat Money work?

Fiat money derives its value from government approval : Fiat money has no inherent physical value; its true strength comes from the government’s legal approval. When a government declares a currency “legal tender,” all transactions in that country are conducted in that currency. This is why people accept it with confidence.
The Central Bank Controls the Money Supply : The central bank of every country determines the amount of money in the market. In India, the RBI performs this function. When the economy needs to be supported, the money supply is increased, and when inflation rises, the supply is reduced. This balance is what keeps the system running.
Government spending brings money to the common people : When the government spends on roads, projects, employee salaries, and subsidies, fiat money begins to circulate in the market. This money reaches shopkeepers, employees, companies, and investors, boosting economic activity.
The banking system multiplies the power of money : Banks provide loans based on people’s deposits. This keeps the same amount of money circulating among many people. This promotes trade, encourages the start of new businesses, and creates employment opportunities.
Interest rates control spending and investment : When interest rates are low, loans become cheaper, leading to more spending and investment by corporates and households. However, when interest rates rise, spending decreases and inflation is controlled. This keeps the flow of fiat money in balance.
The strength of a currency is linked to a country’s economic situation :The value of a fiat currency depends on a country’s economic growth, government policies, and political stability. If a country’s economy weakens, its currency value may also fall.
Trust is the foundation of this entire system : Fiat money remains strong only as long as people have confidence that the same money can still be used for purchases tomorrow. The biggest responsibility of the government and the central bank is to maintain this trust.

Read Also: What is Margin Money?

Evolution of Fiat Currency

When Gold and Silver Were the Only Real Money : In the early days, people used gold, silver, and other precious materials for transactions. These had their own value, so people accepted them without any doubt.
Paper Notes Simplified Transactions : As trade grew, paper notes replaced heavy coins. This practice first began in China and gradually spread throughout the world.
As Long as Money Was Linked to Gold : For many years, countries’ currencies were linked to gold. This kept money stable, but governments could not issue more notes even if they wanted to.
Everything Changed After 1971 : In 1971, the US delinked the dollar from gold. After this, most countries adopted the fiat system, where the value of money depended on the trust between the government and the people. This was known as Nixon Shock.
Today’s Digital and Fast System : Fiat money made banking, loans, investments, and digital payments faster. Today UPI, cards and online transactions are the modern form of the same system.

Major Examples of Fiat Currency Across the World

Country / Region	Fiat Currency	Symbol	Key Insight
India	Indian Rupee	₹	It is the official currency of India, issued by the RBI and all transactions across the country take place in it.
United States	US Dollar	$	It is considered the most powerful currency in the world and is most widely used in global trade.
Euro Zone	Euro	€	Many European countries have a common currency, which makes mutual trade easier.
United Kingdom	British Pound	£	It is considered one of the oldest and strongest currencies in the world.
Japan	Japanese Yen	¥	It is the major currency of Asia and plays a major role in international trade.

Advantages of Fiat Money

Governments gain financial flexibility : Fiat money allows governments to increase or decrease the money supply based on economic conditions. This makes it easier to better manage situations like recession, growth, and inflation.
Quick decisions are possible during economic crises : In times of financial crisis, pandemic, or recession, governments and central banks can quickly provide relief packages and liquidity support, which is not possible in a commodity-based system.
Support for digital payments and cashless systems : Today, UPI, cards, mobile banking, and online transactions operate entirely on the fiat currency system. This has made transactions fast, easy, and secure.
Boosting the business and loan system : Banks are given the flexibility to provide loans, which helps start new businesses, expand companies, and create new employment opportunities.
Facilitates international trade : Fiat currencies allow countries to trade with each other, attract foreign investment, and facilitate the smooth functioning of the global financial system.

Risks and Limitations of Fiat Currency

Inflation reduces purchasing power : When more money enters the market, prices rise. This means that the same money can buy fewer goods over time, reducing people’s purchasing power.
Excessive printing weakens the currency : If the government prints too much money without balance, the currency’s value can fall. This makes imports more expensive and everyday essentials costlier.
Government debt continues to rise : Governments can easily borrow money in a fiat system. If this debt spirals out of control, the burden falls on the general public in the form of taxes and inflation.
There is a risk of economic instability : Fiat currencies can quickly come under pressure during sharp changes in interest rates, recessions, or global crises, increasing market uncertainty.
The system can weaken if trust is lost : Fiat currencies operate entirely on trust. If people start doubting the stability of the currency, they start distancing themselves from it, which can become a threat to the entire system.

Fiat Money vs Commodity Money vs Cryptocurrency

Basis	Fiat Money	Commodity Money	Cryptocurrency
Basic Structure	Government-issued currency with no physical asset backing	Physical assets like gold, silver, or other commodities	Digital currency based on blockchain technology
Control System	Fully controlled by government and central banks	Limited control, supply depends on natural resources availability	Decentralized, no direct government control
Stability	Comparatively stable but affected by inflation and policies	More stable in long term due to limited supply	Highly volatile, prices change very fast
Inflation Protection	Weak protection against inflation over time	Strong protection as supply is limited	Partial protection, depends on market demand
Usage in Daily Life	Used everywhere for salaries, shopping, banking, taxes	Rarely used in daily transactions today	Limited real-world use, mostly for trading and investment
Long-Term Sustainability	Very strong due to global acceptance and government support	Limited due to practical usage issues	Still evolving, future depends on regulation and adoption

Conclusion

The simple truth is that the money we use every day for everything is fiat money. There’s no magic or mystery to it, just a government guarantee and public trust. Sometimes inflation increases, sometimes spending, and sometimes savings are affected. Therefore, it’s enough to understand how money works so we can use our money wisely.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Margin Trading vs Short Selling – Key Differences
2	What is Intraday Margin Trading?
3	Top Tips for Successful Margin Trading in India
4	What is SPAN & Exposure Margin?
5	Difference between Margin Trading and Leverage Trading

Frequently Asked Questions (FAQs)

What is fiat money?
Fiat money is money that is backed by government guarantee.
Is the Indian Rupee a fiat currency?
Yes, the Indian Rupee is a fiat currency.
Why is fiat money not linked to gold?
So that the government can easily control the money supply.
Does fiat money lose value over time?
Yes, its value can decrease due to inflation.
Is crypto a replacement for fiat money?
Not yet, fiat money is the most reliable in everyday life.

December 25, 2025

What is Free Float Market Capitalisation?

Free float market capitalisation plays a major role in how market indices are built and how stocks are ranked. When you check index weights or compare companies, you will often see free float values instead of the full market value. This method provides a more realistic picture of a company’s tradable shares, improves index accuracy, and ensures that only actively available shares influence market movements.

In this guide, we break down what is free float market cap, how it is calculated, and why investors track free float market capitalization while studying stocks.

What Is Free Float Market Capitalisation?

Free float market capitalisation represents the market value of only those shares that are freely available for public trading. It removes promoter stakes, government holdings, employee lock-ins, and any long-term strategic investments. These are the ones that are not likely to actively trade.

When investors check the free float market cap, they get a clearer sense of how much of the company’s equity is actually influencing daily price movement. This is why many major indices prefer the free float method over the full market value.

The idea of free float simply helps you understand how much of the stock is open to regular buyers and sellers instead of being tied up with large insiders.

Key Features of Free Float Market Capitalisation

Before you look at index weights or compare companies, it helps to know what makes free float market capitalisation different from the full market value. These features show why analysts and index providers rely on it to understand real liquidity and trading activity.

Only includes shares available for public trading.
Excludes promoter, government, and strategic holdings.
Gives a clearer picture of active market participation.
Helps assess how easily a stock can be traded.
Used by major indices to assign weights based on actual liquidity.
Reduces the impact of large inactive shareholders on stock ranking.

Example of Free Float Market Capitalisation

Let’s look at a practical example using generic company names so the focus stays on understanding the concept.

Company A

Total outstanding shares: 1,00,000
Share price: ₹40
Publicly tradable shares (free float): 35,000
Remaining 65,000 shares are held by promoters, institutions, and long-term investors.

Market Capitalisation

1,00,000 × ₹40 = ₹40,00,000

Free Float Market Capitalisation

35,000 × ₹40 = ₹14,00,000

Why This Matters

This example shows that even when a company appears large based on total market value, the actual free float market capitalisation or free float market capitalization can be far lower. Free float tells you how much of the company’s equity truly participates in daily trading. It reflects real liquidity, not just theoretical size.

What Is Free Float Factor?

The free float factor is a percentage that shows how much of a company’s total shares are actually available for public trading. Instead of using the full share count, the free float factor helps index providers adjust a company’s weight based on only the tradable portion. This factor removes promoter holdings, government stakes, employee lock-ins, and other restricted shares.

In simple terms, the free float factor tells you what part of the company truly reflects market activity. A higher factor means more shares are open to regular buyers and sellers, while a lower factor means most shares are held by insiders.

Advantages of Using Free Float Market Capitalisation

Using free float market capitalisation gives a more accurate picture of how actively a stock participates in the market. It filters out shares that never trade and focuses only on the portion that real investors buy and sell. This makes it useful for index construction, stock comparison, and liquidity analysis. Here are the key advantages.

1. Shows Real Trading Value

Free float market capitalisation highlights only the shares that trade actively in the market. This helps you understand the company’s true market presence instead of relying on the full share count.

2. Reduces Promoter Influence

Promoters and government holdings do not trade often. Removing them gives a clearer view of the company’s active size and prevents inactive stakes from creating a false impression of strength.

3. Improves Liquidity Analysis

By focusing on freely tradable shares, it becomes easier to judge how liquid a stock is. Investors can quickly understand how easily they can enter or exit positions.

4. Enables Fair Stock Comparison

Free float values allow companies to be compared on practical terms. It avoids situations where a business looks large on paper but has very little actual market participation.

5. Creates More Reliable Index Weights

Most major indices use free float to decide stock weights. This keeps the index balanced and ensures that stocks with high promoter holdings do not get oversized representation.

6. Prevents Distorted Market Rankings

Companies with large locked-in stakes often appear bigger than they are. Free float market capitalisation avoids this distortion and gives a genuine picture of a company’s market position.

How Market Volatility Connects With Free Float Market Capitalisation

When you study how stocks behave during sharp market movements, the size of the free float becomes very important. Free float tells you how many shares actually trade in the market. When this tradable portion is small, prices react faster and move more sharply. When the free float is large, the stock absorbs buying and selling better. This is why volatility and free float are closely linked.

1. Smaller Free Float Creates Higher Volatility

When a company has a low free float, fewer shares are available for trading. Even small buy or sell orders can push the price up or down quickly. This makes the stock more volatile.

2. Larger Free Float Helps Stabilise Prices

A stock with a high free float has many active shares in the market. This absorbs buying and selling pressure better. As a result, price swings are usually smoother and less extreme.

3. Volatility Affects Free Float Market Cap Directly

Free float market cap depends only on tradable shares. When prices fluctuate, this value changes faster because it reflects the behaviour of public traders, not promoter-held shares.

4. Low Free Float Amplifies Market Reactions

If news or sentiment hits the market, stocks with low free float react sharply. With a limited supply of tradable shares, the impact of fear or excitement becomes stronger.

5. High Free Float Reduces Manipulation Risk

Stocks with very low free float can be moved easily by a few large trades. A higher free float reduces this risk and keeps volatility closer to normal market conditions.

Difference Between Free Float and Full Float

Free float and full float are two ways of measuring a company’s value, and the difference lies in the type of shares they count. Free float focuses only on the shares that trade actively in the market, while full float includes every share the company has issued. Investors use free float to understand real liquidity, whereas full float helps in seeing the company’s total size. The table below shows the difference clearly.

Point of Comparison	Free Float Market Capitalisation	Full Float Market Capitalisation
Shares Counted	Only shares available for public trading	All shares issued by the company
Excludes	Promoter, government, and locked-in holdings	Nothing is excluded
Market Behaviour	Shows real liquidity and trading activity	Shows total theoretical company value
Sensitivity to Volatility	More sensitive because it reflects active traders	Less sensitive due to inactive holdings
Use in Indices	Commonly used for realistic index weights	Rarely used for index calculation
Best Used For	Liquidity study, volatility analysis, stock comparison	Understanding overall company size

Conclusion

Free float market capitalisation gives you a clearer, more practical view of how a stock behaves in the real market. It removes the noise created by promoter and strategic holdings and focuses only on the shares that actually trade.

This makes it useful when you study liquidity, volatility, index weights, or compare two companies on real activity rather than theoretical size. Understanding free float helps you read market behaviour with better accuracy and make more informed decisions.

For more such simple and useful market insights, you can always explore Pocketful.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Top Sugar Companies In India
2	Business Cycles of a Company
3	Miniratna Companies in India
4	How Many Companies Are Listed on NSE & BSE?
5	Mukesh Ambani Companies List 2024: Mukesh Ambani Stocks

Frequently Asked Questions (FAQs)

What does free float include?
It includes only the shares that are available for public trading and excludes promoter, government, and locked-in holdings.
Is free float always lower than total market cap?
Yes. Free float market cap is always a part of the total market value, never equal to or higher than it.
Does a low free float increase volatility?
A low free float often leads to sharper price swings because fewer shares are available to absorb buy and sell pressure.
Why do indices prefer free float market cap?
It reflects the value of tradable shares, which makes index weights more realistic and aligned with actual market behaviour.
Can free float change over time?
Yes. If promoters reduce holdings or locked shares open for trading, the free float increases and the factor changes.

December 21, 2025

Best Car Loan Banks in India 2026

Car demand in India is growing rapidly in 2025. Passenger vehicle sales increased by over 17% in October 2025, with the significant impact of the GST reduction on small cars from 28% to 18%. Lower prices have led people to take out more loans to purchase new cars. In this environment, it’s important to know the best banks for car loans in India in 2025, their interest rates, and their easiest processing options. This blog will provide clear and practical answers to these questions.

What is a Car Loan?

A car loan is a financial product where a bank or NBFC lends you money to buy a new or used car. You repay this amount in EMIs, which include factors such as interest rate, processing fees, loan term, and down payment. Faster digital processing has made getting a car loan even easier in 2025 many banks now offer instant pre-approval.

Best Car Loan in India 2026

S.No	Bank Name	Interest Rate Range	Processing Fee / Other Charges
1	State Bank of India (SBI)	8.65 % – 9.45 % (New Car)	0.40% of loan amount (Min ₹750; Max ₹10,000 + GST)
2	HDFC Bank	9.40% p.a. onwards	1.00% of the loan amount (minimum of Rs.3,500 and maximum of Rs.9,000)
3	Axis Bank	8.80% – 11.80%	Processing Fee: ₹3,500 – ₹12,000 + ₹750 Stamp Duty
4	Canara Bank	9.15% – 11.95%	Processing fee: 0.25% of loan amount (min ₹1,000, max ₹5,000)
5	Bank of India	7.85% p.a. onwards	1% of loan amount; subject to a minimum of Rs.500 and maximum of Rs.10,000
6	Indian Overseas Bank	7.35%–11.30%	Up to Rs.5 lakh: 0.50 % (minimum of Rs.500) Above Rs.5 lakh: 0.60 % (maximum of Rs.10,000)
7	ICICI Bank	9.15% – 11.25% p.a.	Up to 2% of the loan amount plus GST
8	Bank of Baroda	7.6% up to 14.25%	Start from ₹500 + GST
9	IDBI Bank	8.30% – 10.60%	Minimum: Rs.1,500 plus taxesMaximum: Rs.2.500 plus taxes
10	Federal Bank	10.00% p.a. onwards	–

Overview of the Best Car banks Loan in India

1. State Bank of India (SBI)

SBI is India’s largest public sector bank, and its car loan scheme is considered a reliable option for those looking to purchase a car without much hassle. Under this loan, the bank provides funding up to the on-road price, which also covers initial expenses like RTO and insurance. The EMI tenure is up to 7 years, and the good thing is that there is no initial EMI advance. Typically, salaried or self-employed individuals between the ages of 21–70 can easily apply by providing the required income and documentation.

SBI Car Loan :

Point	Description
Funding	Up to 100% of the on-road price
Duration	Maximum 7 years
Eligibility	Applicants aged 21-70 years with a stable income

2. HDFC Bank

HDFC Bank is known for its fast processing and digital convenience in new car financing. The bank offers 100% on-road funding on many models, eliminating the need for customers to incur any upfront costs. Applications are completely online, and in many cases, pre-approval is received within minutes. Eligibility is also simple: both salaried and self-employed individuals can easily apply with basic documentation and a stable income. Processing fees and documentation charges are clearly outlined, making it easy to understand the total cost.

HDFC Bank Car Loan :

Point	Description
Funding	100% on-road on select models
Duration	12 to 84 months
Eligibility	Salaried/self-employed with stable income

3. Axis Bank

Axis Bank car loans are considered a good option for those who want a quick and streamlined process without much time. The bank offers financing for both new and used cars, and many models offer loans up to almost the entire on-road amount, significantly reducing the initial down payment. EMI tenures range from 1 year to 7 years, making it easy to manage your budget. Processing fees and other charges are clearly stated, and the online application process makes the entire process feel very simple.

Axis Bank Car Loan :

Point	Description
Funding	100% on-road on select models
Duration	12 to 84 months
Eligibility	Salaried/self-employed with stable income

4. Canara Bank

Canara Bank’s vehicle loan is a good option for those looking to purchase a new car without high fees and with a straightforward process. The bank offers loans up to 90% of the on-road price of a new car, reducing the need for a large down payment. Loan tenures can be up to 7 years for new vehicles, while those for slightly used cars can be up to 5 years. The processing fee is usually very low, and the bank sometimes waives it during the offer period. Overall, the low fees and straightforward process are its biggest strengths.

Canara Bank Car Loan :

Point	Description
Funding	Around 90% on-road on new cars
Duration	New: 84 months, Old: 60 months
Eligibility	Salaried/self-employed with stable income

5. Bank of India

Bank of India car loans are popular among those seeking low interest rates and reliable service. The bank typically offers rates starting at around 7.85% on new cars, which is considered quite affordable in this segment. The processing fee is also low around 0.25% of the loan amount, keeping the initial outlay low. EMI tenures are available up to 7 years, so installments can be set to your convenience. Overall, if you’re looking for a simple, clean, and affordable car loan, Bank of India seems like a reliable option.

Bank of India Bank Car Loan :

Point	Description
Funding	100% on-road on many models
Duration	12-84 months
Eligibility	Stable income, good credit score

6. IOB Car Loan

Car loans from Indian Overseas Bank are considered a good option for buyers who want low interest rates and a straightforward process. The bank typically offers competitive rates on new cars and, in most cases, offers loans up to 90% of the on-road price, making it easier to raise a large down payment. Loan tenures are available up to 7 years, so EMIs can be adjusted to suit your budget. The documentation requirements are also not onerous basic KYC and income-related documents are sufficient. Being a government-owned bank, the trust factor is also strong.

IOB Bank Car Loan :

Point	Description
Funding	Approximately 90% on-road
Duration	12–84 months
Eligibility	Stable income, good credit score

7. ICICI Bank

ICICI Bank’s car loan is considered a good option for those who need a loan with a fast process and simple documentation. The bank often provides financing up to the on-road price of a new car, reducing the worry of an initial down payment. Interest rates are tailored to your profile and are generally competitive, making EMIs easy to manage. The entire application process is online, and the documentation is very basic making loan approval time quick. Overall, the convenience and speed make ICICI’s car loan a reliable option in 2025.

ICICI Bank Car Loan :

Point	Description
Funding	100% on-road on many models
Duration	12–84 months
Eligibility	Stable income, good credit score

8. Bank of Baroda

Bank of Baroda’s car loan is a good option for buyers seeking affordable financing with reliable service from a government bank. The bank offers loans up to the on-road price on a variety of models, reducing initial outlays. Interest rates are generally competitive, and customers can choose between fixed and floating rates depending on their profile. The processing fee is also quite low, keeping overall costs under control. The application process is straightforward, and the eligibility criteria are quite simple, making this scheme a balanced and reliable option for car buyers in 2025.

Bank of Baroda Bank Car Loan :

Point	Description
Funding	100% on-road on many models
Duration	12–84 months
Eligibility	Stable income, good credit score

9. IDBI Bank

IDBI Bank car loans are considered a great option for buyers looking for a hassle-free loan from a trusted bank. Interest rates are generally affordable, and loan tenures are available up to 7 years, allowing EMIs to be set to your convenience. Finance is available for both new and used cars, and documentation is simple: basic KYC and income documents are all you need. Processing fees are low, and there are no additional prepayment charges after a certain period, making it even more affordable.

IDBI Bank Bank Car Loan :

Point	Description
Funding	100% on-road on many models
Duration	12–84 months
Eligibility	Stable income, good credit score

10. Federal Bank

Federal Bank car loans are considered a good option for buyers who want a streamlined process and a reliable banking experience. Interest rates typically start around 10%, which are stable and transparent compared to private banks. The bank also offers financing up to the on-road price on many models, eliminating the need for a large down payment. Loan tenures up to 7 years are available, making EMIs easily manageable. Overall, this Federal Bank scheme is ideal for those seeking a reliable financing option without complications.

Federal Bank Car Loan :

Point	Description
Funding	100% on-road on many models
Duration	12–84 months
Eligibility	Stable income, good credit score

Read Also: Best Private Banks in India

How to Choose the Best Car Loan Bank

Interest Rate : Every bank displays a “starting rate,” but the actual rate is determined by your profile, CIBIL, and car model. Always compare the effective rate; don’t make a decision based solely on the lowest number.
Processing Fees and Other Charges : Many banks charge fees ranging from 0.25%–1%. Also, consider adding documentation, valuation, and prepayment charges to get a clearer picture of the total cost.
Loan-to-Value Funding : Some banks offer 85–90% of the on-road price, while banks like HDFC/ICICI offer up to 100% funding on select models. This makes a significant difference to the down payment.
Loan Tenure : Options range from 1 to 7 years. Longer tenures lower EMIs but increase the total interest. Choose a tenure based on your income and monthly budget.
Speed of Approval and Disbursal : If you need to buy a car quickly, choose a bank with digital approval and fast disbursal. Private banks are generally faster here.
Special Schemes : EV loans, used-car loan schemes, and festival offers can often reduce the total cost. Include these offers in your comparison.

With the rising demand for passenger vehicles in 2025, the banks financing these cars are also witnessing significant growth in their loan books. If you are interested in the stock market, you can look beyond just taking a loan and consider investing in these banks for potential long-term returns.

Open a Demat Account: To invest in banking stocks, you first need a Demat and Trading account with a SEBI-registered stockbroker.
Identify Top Lenders: Focus on banks with a strong retail loan portfolio. Banks like SBI (SBIN), HDFC Bank (HDFCBANK), ICICI Bank (ICICIBANK), and Axis Bank (AXISBANK) are leaders in the auto loan segment.
Analyze Financial Health: Before investing, check key metrics such as NPA (Non-Performing Assets) to ensure the bank is managing its loans well, and NIM (Net Interest Margin) for profitability.
Monitor Auto Sales Data: Since car loan growth is directly linked to vehicle sales, keep an eye on monthly auto sales reports and quarterly bank results to gauge future performance.

Investing in these banking stocks allows you to benefit from the booming automobile sector in India without buying a car yourself.

Read Also: Best Education Loan in India

Conclusion

The simple thing is, before taking out a car loan, carefully consider two or three things: the applicable rate, the funding available, and whether the bank’s process is easy enough for you. Understanding this will prevent the possibility of choosing the wrong one.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Small Finance Bank Share List in India
2	Best Banking Stocks in India
3	Best Banks for Savings Accounts in India
4	10 Best NBFC Stocks List in India
5	Top 10 Best Credit Cards in India
6	10 Best Bank Penny Stocks List
7	List of Government Bank Stocks/Share in India
8	Top Cash-Rich Companies in India
9	Why Debt Funds Are Better Than Fixed Deposits of Banks?
10	Top 10 Sectors in the Indian Stock Market

Frequently Asked Questions (FAQs)

Which bank is best for a car loan in India?
It depends on your profile, but SBI, HDFC, and ICICI are suitable for most people.
What is a good interest rate for 2025?
A rate between 8%–10% is generally considered good.
Can I get 100% funding?
Yes, some banks offer up to the full on-road amount on select models.
What loan tenure is best?
5 years is cost-effective; if you need a lower EMI, you can choose 7 years.
Is prepayment allowed?
Yes, most banks allow it, but some may charge an initial fee.

December 16, 2025

Check Free CRIF Credit Score Online

In today’s time, the approval of any loan or credit card depends largely on your credit score. This score tells banks and NBFCs how reliable you are in making payments on time. CRIF High Mark is an RBI-recognized credit bureau in India, which prepares your complete CRIF report. In this blog, we will learn how to check credit score i.e. how to check credit score for free on CRIF and why it is important to track it regularly.

What is a Credit Score & Why Does it Matter?

A credit score is a three-digit number (300 to 900) that reflects your financial credibility. It can also be called a “financial report card” because it determines whether you will be able to repay your loan or credit card bill on time.

Who calculates it?

In India, the credit score is generated by four RBI-approved credit bureaus CIBIL, Experian, Equifax and CRIF High Mark. Of these, CRIF High Mark provides both personal and business credit information.

Importance of the score

Whenever you apply for a loan or credit card, banks and NBFCs first look at your credit score. It gives them an idea of your repayment capacity and trustworthy behavior.

Score range and meaning

750+ (Excellent): Loan approval is easy and interest rates are low.
650–749 (Fair): Loan can be obtained but the terms may be a little stringent.
Less than 650 (Risky): Chances of approval are low and interest rates are high.

Why is a regular check important?

Credit score directly impacts your financial future be it a home loan, personal loan or credit card limit. Hence, it is important to check your credit score from time to time. The CRIF score and its detailed CRIF report give you a clear picture. This is why a regular credit score check with CRIF is extremely important for your financial health.

Introduction to CRIF High Mark

Global and Indian History of CRIF

CRIF (Centre for Research in International Finance) is a global company, established in Italy in 1988 and spread across all four continents with presence in around 50+ countries.

The same company acquired High Mark Credit Information Services in India which was established in 2007 and has been operating as CRIF High Mark since March 2011 after it received a license from RBI as a credit bureau.

RBI approved Credit Bureaus in India

CRIF High Mark is an RBI approved Credit Information Company in India, providing credit reports and scoring for both individual and business lenders.

What makes it special?

It is India’s first Microlending-enabled Credit Bureau and the world’s largest Microfinance Bureau database.
It covers all borrower segments: retail, agriculture, rural, MSME, commercial and microfinance.
So far, it has tied up with 4,000+ financial institutions including cooperative banks, NBFCs, insurance companies, etc.

Both personal and business reports

CRIF High Mark provides two types of credit scores:

Personal Credit Score
Business Credit Score

This is useful for both large and small businesses, and this data is used by banks, NBFCs, and other entities for their risk assessment.

Thus, CRIF High Mark is not only a trusted and RBI-approved credit bureau, but is also unique for its comprehensive coverage, analytical capabilities, and providing both types of scores (personal and business).

How to Check Credit Score with CRIF (Step-by-Step Guide)

Step 1: Visit the official website

First, open the website of CRIF High Mark. Here you will find the option of “Free Credit Score” or “Get Your Score”. By clicking on it, you can start the process of checking the score. Remember, according to RBI rules, you get a free report once a year.

Step 2: Fill in your information

Now you have to enter some basic details like name, date of birth, PAN (or any other valid ID), mobile number and email ID. This information is taken so that the system can identify you correctly.

Step 3: Verify with OTP

After filling the form, tick “I agree” and proceed. An OTP will come on your registered mobile number. As soon as you enter it, your identity will be confirmed.

Step 4: Answer additional security questions

Sometimes CRIF asks you some questions related to your credit history like an old loan or credit card details. The system shows your report only after giving the correct answer.

Step 5: View your score and report

Once the verification is complete, your CRIF score will be displayed on the screen. You can also view the full CRIF report by going to the “My Report” section and download it as a PDF. The report is password-protected, usually the password is the first four lowercase letters of your name + the last four digits of your mobile number.

Step 6: Keep the report safe

Once downloaded, save your report in a safe place. It will be very useful for your loan or credit card application.

Understanding Your CRIF Report

When you check your credit score on CRIF, you not only get a number but also a CRIF Report of your entire credit history. By looking at it, you understand how you have used your loan and credit card and banks trust you after seeing it. Let’s understand it in a simple way:

Personal Details : The report starts with information like your name, date of birth, PAN or Aadhaar number and mobile number. This is important so that the report is completely related to you and there is no mistake.
Credit Accounts Summary : This section shows all your loan and credit card accounts – which ones are active, which ones are closed, and how much credit limit you have. This gives you a complete idea of your expenses and debt.
Repayment History : This section tells whether you have repaid your loan or credit card installments on time or not. If a payment is late, it is shown as “DPD Days Past Due”. Paying on time strengthens your credit profile.
Enquiry Details : When you apply for a loan or credit card, the bank or NBFC looks at your report. This is called a Hard Enquiry. Having too many enquiries can have a slight impact on your score, so avoid unnecessary applications.
Your CRIF Score : And finally comes your score CRIF Score (300-900). The higher the score, the more trustworthy you are. Generally, a score of 750 or above is considered good. To increase the score, timely payment and balanced use of limits are necessary.

Read Also: How to Improve Your Credit Score?

CRIF Score vs Other Credit Bureaus (Comparison)

Bureau	Score Range	Free Report	Coverage Strength
CRIF High Mark	300 – 900	1 free per year	Microfinance, Retail Loans, Grameen Data
CIBIL	300 – 900	1 free per year	Widely accepted by banks
Experian	300 – 900	1 free per year	Consumer loans and credit cards
Equifax	300 – 900	1 free per year	NBFC data

Common Reasons for a Low CRIF Score

If your CRIF score is low, it indicates that there may be some things in your credit behaviour that may cause concern for lenders. Let’s know the reasons due to which your score can be affected:

Missing EMI or credit card payment : If you have not paid EMI or credit card bill on time, it negatively affects your score. Even a single default can reduce your score by 50-80 points.
High Credit Utilization Ratio : If you are using 40% or more of your credit limit, it indicates that you are using more credit, which can lower your score.
Multiple loan/credit applications in a short period of time : If you have applied for multiple loans or credit cards in a short period of time, it can lead to a drop in your score. Every application is accompanied by a “hard inquiry”, which affects your score.
Long-overdue accounts : If you have accounts whose installments are pending, it negatively affects your score. Not making payments on time leads to a drop in your score.
Limited or no credit history : If you have a very short credit history or none at all, it can affect your score. Lending institutions find it difficult to evaluate your credit behavior.
Identification errors in the report : If your report has an incorrect PAN number or incorrect loan information, it can affect your score. You should contact CRIF to correct such errors.

How to Improve Your CRIF Score

CRIF score shows your financial health and it is directly related to your daily banking behavior. To improve it, there are some small but effective steps by adopting which you can gradually strengthen your score.

Pay EMI and credit card bills on time : The easiest and effective way is to pay every EMI and credit card bill on time. Even one or two delays can harm the score. Try to always make the payment before the due date.
Keep credit usage balanced : If you are using the entire or most part of your credit limit, it indicates to the bank that you are heavily dependent on debt. Try not to use more than 30–40% of the limit.
Do not apply for new loans or credit cards frequently : Applying for many loans or cards in a short period of time affects the score. Every new application is recorded as a “hard enquiry”, which can pull down the score slightly.
Keep the right mix of credit : If you have a balance of secured and unsecured credit, it is good for the score. For example, having a small home loan or car loan and a credit card can be beneficial.
Check your CRIF report from time to time : Incorrect or outdated information can harm your score. Therefore, it is important to check your credit report at least once a year. This will help you correct the mistakes in time and track your progress.
Build credit history gradually : If you have a short credit history, start with a small loan or secured credit card. Gradually, proper use increases the confidence of banks and NBFCs in your ability to pay.

Conclusion

Your CRIF score tells your financial story to your bank and lenders. If it is correct and strong, it is easy to get a loan or credit card. Therefore, it is very important to pay EMIs and bills on time, use credit limits in a balanced manner and pay attention to your report. If you see any mistake in the report, correct it immediately. These small habits gradually strengthen your credit and make it easier for you to make financial decisions in the future.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Non-Convertible Debenture (NCD) vs Fixed Deposit (FD): Meaning, Features, and Differences Explained
2	Sectoral Funds Decoded: Riding the Investment Roller-Coaster
3	NISM Certifications: An Easy Explainer
4	The Art of Value Investing: Meaning and Strategies
5	A Guide To Investing In Gold In India
6	Top 10 personal finance lessons for self-learning
7	CRED Case Study
8	A Guide To Fixed Deposits: Exploring Types And Interest Rates
9	Best Personal Finance Books to Read
10	How to Set Financial Goals for Your Future
11	Guide to Behavioral Finance: Definition, Biases, and Impact
12	10+ Best Investment Plan for Monthly Income in India
13	Mastering Your Finances: Beginner’s Guide To Tax Savings
14	How to achieve financial freedom before retirement

Frequently Asked Questions (FAQs)

What is CRIF Score?
CRIF score ranges between 300-900 and it indicates the strength of your credit profile.
How can I check my CRIF score for free?
You can check your score and report for free once a year by visiting the official website of CRIF High Mark.
Why is my CRIF score low?
Late payments, high credit utilisation, too many loan applications or incorrect information in the report can lower the score.
How often should I check my CRIF report?
It is good to check your report at least once a year.
Can CRIF score affect my loan approval?
Yes, a low score may make banks or NBFCs not approve your loan or credit card application easily.

December 13, 2025

What is Per Capita Income?

In the world there are different types of companies, some countries are rich and some are poor. Also we also hear that some countries are developed and the other is a developing company. Have you ever wondered how the experts decide this?

Per Capita Income (PCI) it is one of the simplest ways which helps us to identify this.

In this blog we will be learning about Per Capita Income, how it is calculated and the benefits of Per capita income.

What is Per Capita Income?

Per Capita Income (PCI) is the average amount of money earned by each person in a country in a given period of time, generally a year. The term “per capita” means per head. So, it’s the average income per head.

In Per Capita Income, the calculation includes all the individuals consisting of working adults, retired persons, college students, and even newborn children. PCI is not considered as an average salary of a working person, rather it is the average income that is spread across the entire population. Per capita income is generally used to check the financial health of a country.

How is Per Capita Income Calculated?

The formula to calculate Per Capita Income is simple and you only require the data of a country’s total income and the total population of the country to find it accurately.

Formula: Per Capita Income = Total income / Total Population

Let’s understand it by a simple example:

Imagine a small village in India with a population of about 1,000 people. Here you need to find out the total working people in the village and let’s say they collectively earn Rs.5 cr. in one year then,

Per Capita Income of the Village = Total Income (5 Cr) / Total Population (1,000) = 50,000 income of an individual per year

Therefore the Per capita income of the village is Rs.50,000/year. This gives us a single number to understand the average income in India for that village.

You must be curious about “Total National Income” and how we get it. This is closely related to GDP (Gross Domestic Product), it is important to understand the difference between GDP and PCI.

GDP is the total value of goods and services produced in a country within a given year, on the other hand PCI is the average income earned by each person in the country in a given time (a year).

Read Also: What is Earnings Per Share (EPS)?

Why is Per Capita Income Important?

PCI is a very useful tool for the following reasons.

Standard of Living: It helps us in knowing the standard of living in a country, here a higher per capita income generally indicates that the people can purchase more goods and services, quality healthcare and better education.
Better Decision Making: PCI is also used by Governments to understand which parts of the country are doing well and which part needs attention. If any of the states have low PCI then the government might allocate more resources and give opportunities to increase the PCI.
Helpful for Businesses: Businesses use this data to decide how and where they can expand their operations or sales, like a company selling expensive laptops will preferably target cities with a high PCI, as people there would have more purchasing power.
Country comparison: PCI also helps in comparing the economic health of different countries. Some organizations like the World Bank use Gross National Income (GNI) per capita which is identical to PCI, to classify countries into different income groups. Currently India is classified as a lower middle income economy.

Problems associated with Per Capita Income

The biggest challenge associated with PCI is that it excludes inequality from its search, as it is an average of the total income which can be sometimes misleading. Let’s go back to our village example where the Per capita income was Rs.50,000 but think what if one wealthy person in the village alone earns Rs.2 crores in a year and the rest of the population (999 people) earn only Rs.30,000 each. Here the total income generated by the village is still Rs.5 crore and the PCI is Rs.50,000, but in reality most of the people are earning less than the average calculated. As we can see, the massive income generated by one person can pull the average for everyone in the country. This is the limitation of PCI as it hides the gap between the rich and the poor.

In PCI, the cost of living in different places is not considered as a person living in the village can easily live a good quality life with an income of Rs.1 lakhs a year as compared to someone who is living in a tier 1 city as everything from rent till food is comparatively expensive in the city. PCI doesn’t account for these price differences.

To correct this, economists also use something called Purchasing Power Parity (PPP). PPP adjusts the income accordingly to show how much you can purchase with given money in a specific place. In India, the PCI adjusted for PPP is much higher than the simple number, giving a better picture of the actual standard of living.

Per Capita Income also avoids many important things that contribute to our well-being like:

Unpaid Work: Some works are not considered or counted under PCI such as work done at home like cooking, cleaning, washing.
Informal Economy: A large chunk of the population in India is associated with the informal sector such as street vendors or a daily wage worker; the income generated by such people are not fully recorded in the official numbers, leading to a different PCI than reported.
Quality of Life: PCI does not include quality of life factors like public transport, clean air, safe roads, high-quality hospitals, or how much free time people have. A country may have a high PCI but might have a bad quality of life.

Conclusion

Per Capita Income helps us in getting the gist of a country’s economic health. It helps us in making a broad comparison of the economies and helps us in understanding the economic trends of the countries.

However, it is among some few numbers that are calculated in a country’s GDP. PCI helps in understanding how well a country, its economy and its people’s average income. Though we shall also consider other factors like income inequality, the cost of living, and all the non-monetary things as well.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Best Places To Park Your Short Term Money
2	Types of Investment in the Stock Market
3	Top 10 personal finance lessons for self-learning
4	How to achieve financial freedom before retirement
5	How to Register a UPI Complaint?

Frequently Asked Questions (FAQs)

What is the meaning of Per Capita Income?
It is the average income earned by every single person in a country or region in a year. It’s calculated by dividing the total income of the area by its total population.
Why is one income different from India’s Per Capita Income?
One’s salary may differ from the PCI as it is the national average of income including everyone, which includes everyone from children to retirees. It also includes everyone from high income people to small income generating individuals as well as extremely wealthy individuals putting everyone in the same pool, so it doesn’t represent a typical person’s earnings.
How is GDP per capita and Per Capita Income different?
GDP per capita is about the value of goods and services produced and made by each person on an average. Per Capita Income is about the average income each person earns in a country. They both measure different aspects of the country or region.
How is GDP per capita and Per Capita Income different?
GDP per capita is about the value of goods and services produced and made by each person on an average. Per Capita Income is about the average income each person earns in a country. They both measure different aspects of the country or region.
Can a country with a higher Per Capita Income be considered good?
A country might have a high PCI but there can be a huge gap recorded between the rich and the poor. Also the living conditions of the country like clean air, high pollution might not be good as PCI only calculates the average income.
Why is India’s Per Capita Income (PPP) higher than its normal PCI?
This is because the cost of living in India is lower than in many Western countries. The PPP (Purchasing Power Parity) adjustment accounts for this, showing that the money earned in India can buy more goods and services locally. This gives a more realistic idea of the standard of living.

December 13, 2025

What Are Undervalued Stocks?

During the festive season you spot your favourite brand’s shirt on sale, the one that was available for Rs.3500 is now available for Rs.2000 in sale. A normal human tendency would be to grab this extraordinary deal because you are getting the same shirt, same quality just the price is temporarily low due to the festive sale.

The stock market also has such deals, where some stocks of great companies are sold for a lesser value as compared to their actual worth. These types of stocks are known as undervalued stocks.

The art of finding these undervalued or bargained stocks is called value investing.This strategy of buying undervalued stocks is not a getting quickly rich scheme, rather it is a patient way and a smart strategy for long-term investing tips.

If you are a beginner in the stock market you should learn how to identify undervalued stocks, especially those with a low P/E ratio, which can make a huge difference. Let’s look at it in this informative blog.

What Are Undervalued Stocks?

In the stock market the price of stock is different from the value of the stock. Price is what you pay for a share in the stock market, which changes every second and value is the company’s real worth based on factors like financial health, profits and future potential.

An undervalued stock is simply a stock whose market price is way below its true value. A value investor searches these stocks, buys them, and waits for the market to rise back, due to this rise the price goes up and the investors earns the profits.

A low stock price is not considered as a good deal always, as a Rs.10 stock might seem cheap at the moment, but a falling stock is not the bargain; it’s just a bad investment. It is also known as value trap, these cheap looking prices are just traps because the company might have serious fundamental issues in its functioning.

Features	Undervalued Stocks	Value Trap
The Company	A strong, profitable business with a bright future.	A weak business that’s losing money or is in a dying industry.
Reason for Low Price	A temporary setback, market panic over some news, or the whole industry is just suffering.	Deep-rooted problems like too much debt, bad management, or unwanted product range .
Future Outlook	Likely to bounce back and grow.	Likely to get worse. The stock is cheap for a reason.
Investor’s Goal	Buy a great company at a discount.	Avoid a failing company, no matter how low the price is.

How to Find Undervalued Stocks

To look for an undervalued stock the investors need to first do the fundamental analysis of the company as well as the stock. Fundamental analysis consists of analysing the company’s financial health to check the stocks true worth. One can use websites like moneycontrol and screener.in to access the data and then make rational decisions. You should consider the following to judge the company’s financial health:

1. Price to Earnings (P/E) Ratio

This is the most popular tool for a reason.

The P/E ratio tells you how much you’re paying for every Rs.1 of profit the company makes. A low P/E can be a sign of a bargain.
The formula of P/E Ratio is to divide the current market price of the stock divided by the EPS (Earnings Per Share). For example if the stock price is Rs.500 and its Earnings per share (EPS) is Rs.50, then the P/E ratio will be 10 (500/50).
Note investors shall always compare the other companies in the same industry as well because a P/E ratio of 15 might be high for a steel company but it might be very low for a tech company.

2. Price to Book (P/B) Ratio

This is another way to analyse the opted share.

The P/B ratio compares the stock price to the company’s “book value.” Consider the book value as the company’s net worth on paper meaning the worth of the company after selling everything and paying all its debts.
To calculate the P/B ratio investors need to divide a company’s market capitalization by its book value of equity as per the latest reporting period.
A P/B ratio below 1 is considered very good for investors as it means you are buying the company share for less than what its assets are worth.

3. Net Cash Flow

Cash flow generally means the amount of cash that is coming in the company after all the expenditures are done. A company may report highly profitable but it still might be running out on real cash.
Investors shall look for companies which have more cash coming consistently rather than cash going out of the company, as this shows that the company is having a healthy business that can easily pay its bills, invest in their future growth and also reward its shareholders.

Who Should Invest in Undervalued Stocks?

Investing in Undervalued stock is a long term game, here investors who are patient for the results shall generally invest in such stocks. If you are looking for quick profits you should avoid this.
Value investors bid for something that is being sold by everyone in the market, so investors who are calm and confident about the stock shall go for it.
Investors that have basic knowledge about how the businesses work, their financial health and future growth possibilities of companies shall opt for undervalued stocks.

Advantages of Undervalued Stocks

High Return Potential: The investors goal is to buy it low and sell it high, by investing at a discounted price they set themselves for bigger profits when the stock price eventually rises to its true value.
Less Stress: Undervalued stocks are generally unpopular and they do not generally fall during the market crash, making your investment less susceptible to the market fluctuations. so they often don’t fall as hard during a market crash.
Wait & Get Paid: Many undervalued companies have stable businesses that even pay dividends to its investors, which means you can also earn a stable income while you wait for the stock price to go up.

Disadvantages of Undervalued Stocks

Value Traps: This is the biggest risk attached to the undervalued stocks, as investors may think they have found out the best stock but this bargain can be of a failing company giving you an overall loss.
Long Wait: The waiting time of the stock revival can be anything from 1 week to 1 year due to which the returns are not certain as per your expectations.
Stagnant Investment: Investors can miss out on some fast growing stocks due to value invested in some stocks that might give returns in the future, making your investment stagnant.

Read Also: 10 Best Copper Stocks in India

Conclusion

Value investing is a smart, proven way to build wealth over time but it is not just about the timing of the market or entering the market trending shares. It is about having knowledge, looking at the company’s fundamentals and understanding the changing market along with all this, investors need to have patience and discipline as using all these strategies the end result can be highly rewarding.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	List Of Best Healthcare Stocks in India
2	List of Best Telecom Stocks in India
3	List Of Best Footwear Stocks in India
4	List Of Best Logistics Stocks in India
5	List of Best Liquor Stocks in India

Frequently Asked Questions (FAQs)

Where shall investors search for P/E and P/B ratios?
Investors shall look for financial websites like Moneycontrol, Screener.in, and Tickertape, as well as on the NSE and BSE websites.
Can value investing be good for a beginner?
Yes, but they need to buy good companies at a fair price. However, they should know such investments require patience, as they are for investors who have long term goals and are not not looking for quick money.
What can be considered as a “good” P/E ratio for an Indian stock?
A “good” P/E is always relative; investors need to compare it to other companies in the same industry and to the company’s own past P/E ratios.
Can I lose my investment in undervalued stocks?
The biggest risk is buying a “value trap”, a stock that looks cheap but keeps falling because the business is not stable, one should always do a solid research.
How different are they from day trading?
Value investing is about owning shares for years of time and day trading is about buying & selling of shares with a day making them poles apart from each other.

December 12, 2025

Sanchar Saathi App: Features, Registration & Mobile Security Guide

Today, mobile phones have become the most reliable tool for our daily tasks, but with it, challenges like phone theft, fake SIM cards and increasing fraud calls have also increased rapidly. To handle these problems in a systematic manner, the Department of Telecommunications developed the Sanchar Saathi platform, which many people also know as sanchar sarthi. This saathi app launched by DoT provides important tools related to mobile security at one place. In this blog, we will understand in detail what Sanchar Saathi is, how it works, how to register for the sanchar saathi app, and why it is useful for mobile users.

What Is Sanchar Saathi?

Sanchar Saathi is a citizen-centric digital security platform developed by the Department of Telecommunications (DoT), Government of India, to provide security-oriented services to mobile users. Available as both a mobile app and a web portal, Sanchar Saathi aims to protect users from mobile phone and SIM-related fraud, theft, and fake connections.Sanchar Saathi was launched on January 17, 2025, to allow users to check their phone’s IMEI, block lost/stolen devices, check the number of mobile connections in their name, and report suspicious calls/SMS.

The platform is particularly known for features directly related to mobile security, such as:

IMEI verification and blocking: Instantly block any stolen or lost phone and prevent it from being used on the network.
SIM connection information: View all mobile numbers issued in your name and report any unauthorized numbers.
Possible fraud reporting (Chakshu): Report suspicious calls, SMS, or WhatsApp messages directly from the platform.

Using Sanchar Saathi is completely voluntary. The government recently clarified that the app is not mandatory and users can choose to download or remove it at will, respecting user privacy and control.

Why Sanchar Saathi Was Launched ?

Mobile-related crimes have steadily increased in India over the past few years. Sometimes a phone is stolen in a crowd, or sometimes multiple SIM cards are found issued in someone’s name without their knowledge. In response to these growing concerns, the Department of Telecommunications (DoT) launched the Sanchar Saathi platform. Its purpose is to provide people with a tool to manage their own mobile security without any technical hassles.

Increasing Cases of Mobile Theft : After a phone is stolen, there is a risk of data misuse, misuse of banking apps, and leakage of personal information. Through Sanchar Saathi, users can instantly block their device’s IMEI, making the phone inoperable on any mobile network.
Preventing the Use of Fake SIM Cards : New SIM cards are often issued in a user’s name by misusing their identity. This has become a common method of identity theft. The platform allows users to see how many numbers are active in their name and if they find any unknown numbers, they can report them.
Increase in Fraud Calls and SMS : Fraud calls and SMSes posing as bank, KYC, electricity bills, or parcel delivery issues target people daily. Sanchar Saathi’s “Chakshu” feature directly relays these suspicious calls and messages to the relevant department, facilitating further investigation and action.
Empowering Users to Self-Reliant in Digital Security : The primary objective is to enable everyone to self-monitor their mobile and identity-related risks. The platform is designed with simple language, simple steps, and a user-friendly approach, allowing anyone to use it without technical knowledge.

Key Features of Sanchar Saathi

CEIR : The most important part of Sanchar Saathi is CEIR (Central Equipment Identity Register). It allows users to instantly block the IMEI number of their lost or stolen phone. Once blocked, the phone cannot be activated on any mobile network, preventing misuse of the device and data
.IMEI Check : The app features IMEI verification, allowing you to determine whether your mobile phone is genuine or has been altered. This feature is especially useful for second-hand phone buyers, as it ensures that the phone is not stolen and its IMEI matches the government database.
Know Your Mobile Connections : This feature allows users to view the number of SIM cards issued in their name on a single screen. If an unknown number is entered, a report or disconnection request can be submitted from there.
Chakshu : Chakshu is a reporting tool where users can enter information about any suspicious call, SMS, or WhatsApp message. These reports are routed to the DoT team, helping to detect fraud patterns and take timely action.
Trusted Contacts and Verified Helpline Directory : The app has a small but useful section that provides authorized helpline numbers for banks, financial institutions, and other essential services. This allows users to quickly compare a suspicious call with the actual number and avoid fraud.

How the Sanchar Saathi App Works ?

How to Download and Access

Download the app by searching for “Sanchar Saathi” on Google Play or the Apple App Store.
Open the app and enter your mobile number to verify it with an OTP. For some features, you may need to complete registration by sending a one-time SMS (e.g., 14522) to the portal. This is a one-time mandatory step.

Registration on the Sanchar Saathi Portal/App

Portal/App Register / Login Enter mobile number and verify the OTP.
Options for linking KYC (Aadhaar/PAN, etc.) will appear. Once linked, you will be able to use the “Numbers in your name” feature.

Blocking a lost/stolen phone through CEIR (Fast-Step)

Select “Block lost/stolen mobile” in the app/portal.
Enter your phone’s *IMEI (found by dialing #06#) and the associated mobile number.
Upon submitting the request, you will receive a Request ID. Keep it safe; You’ll be able to track the status using this ID (sent from CEIR to blocked operators).

IMEI Verification

Go to the App/CEIR IMEI verification page.
Enter your 15-digit IMEI (or send KYM <IMEI> to 14422 via SMS) and verify with an OTP. The result will indicate whether the IMEI is clear or blacklisted.

Know Your Mobile Connections

Login to the Know mobile connections in your name section.
Look at the list; if a number appears unfamiliar, select “This is not my number / Not required” and report it. The portal will send it to the operator for action.

Fraud Report and Status Tracking

Fill out the Report Chakshu/Complaint form (add details of the suspicious call/SMS, along with a screenshot or copy of the message).
Upon filing, you will receive a Complaint/Request ID. You can use this to check the status further.

Privacy & Security Considerations

Data Use and Control : Sanchar Saathi only processes information that users enter for a service such as mobile number, IMEI, or basic complaint information. The data goes directly to the Department of Telecommunications (DoT)’s secure servers and is not shared with any external entity.
Permissions Requested by the App : The app’s requirements are limited, so it only obtains basic permissions such as OTP verification and internet access. It does not ask for unnecessary permissions, such as camera, microphone, or location, thus maintaining user control.
Server-Side Security and Reliability : The platform runs on the CEIR and DoT government networks, where IMEI and complaint data are stored encrypted. Being a government system, its security framework is considered stronger than that of regular apps.
Clarity in Installation Policy : In early 2025, there was talk that the app would be pre-installed on new mobile phones, but the ministry later clarified that this was completely optional. The user can download it or can use the services from the portal even without the app.

Conclusion

Sanchar Saathi provides a single view of mobile identity, SIM connection, and device information. This makes phone-related processes much clearer and more organized than before. The platform’s purpose is to provide basic mobile usage information without complication.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Best Fundamental Analysis App in India
2	10 Best Paper Trading Apps in India
3	Top 10 AI Tools for Stock Market Analysis
4	Best SIP Apps in India for Investment
5	Best Apps & Tools for Option Chain Analysis in India
6	Best Share Market Learning Apps in India
7	Best Apps for IPO Investment in India
8	Best Online Commodity Trading Platforms in India
9	Best UPI Apps in India
10	Best Algo Trading Platform in India

Frequently Asked Questions (FAQs)

What is Sanchar Saathi?
Sanchar Saathi is a platform that provides basic mobile and SIM-related services in one place.
How can I block my lost phone on Sanchar Saathi?
The phone can be instantly blocked from the network on Sanchar Saathi by entering the IMEI.
How do I check SIM cards issued on my ID in Sanchar Saathi?
“Know Your Mobile Connections” shows all the active numbers in your name.
Is the Sanchar Saathi app compulsory?
No, Sanchar Saathi is completely optional.
Can I report scams through Sanchar Saathi?
Yes, suspicious calls or messages can be reported in the Check section.

December 11, 2025

Stock Market Timings in India

Think about how a supermarket runs in India, it doesn’t just open whenever it feels like. The government has set rules for markets and supermarkets opening timings, the staff gets in early to set things up, then the doors open for business, and finally, they close for the day to count the sales.

The Indian stock market works in a similar pattern where it runs on a strict schedule to keep things fair and orderly for everyone. If you’re a beginner then you must be aware about the stock market timings, as this is the first step. So, what are the share market timings in India? When is the official share market opening time, and what’s the market open and close time? People also have a doubt, does the stock market open on Saturday? In this blog we will learn the exact stock open time and walk through a day at India’s major stock exchanges, the BSE and NSE.

Pre-Market Timings (9:00 AM – 9:15 AM)

Before the main trading starts, there’s a special 15-minute window called the “pre-open session.” You can think of it as the market’s warm-up time, where it helps traders to look for overnight market changes like how global markets did or if a big company made an announcement related to its operations or finances. This session was introduced back in 2010 to stop prices from fluctuating massively the moment the market opens. It makes sure the opening price of a stock is fair and reflects what people are actually willing to pay.

This 15-minute session is split into three parts.

1. Placing Your Orders (9:00 AM – 9:08 AM)

During the first eight minutes of the market, you can place new orders, change, or cancel your buy and sell orders. It works like an auction where everyone submits their bids before the market really opens for trading. The system collects all the information of these orders to know the mood of the market (positive or negative).

2. Finding the Opening Price (9:08 AM – 9:12 AM)

For the next four minutes the exchange systematically looks at the buy and sell orders placed by traders and then it calculates the equilibrium price by looking at all these orders as equilibrium price is the price where the most shares can be bought and sold. This becomes the official opening price for the day, and during these four minutes you cannot place any new orders.

3. Getting Ready (9:12 AM – 9:15 AM)

The last three minutes before 9:15 is the buffer period, this is the moment that helps the market move smoothly from the pre-open session into the main trading day. No orders or trades take place during this time and everything stays calm before the market starts to function.

Market OperatingTime (9:15 AM – 3:30 PM)

The financial market fully starts to function from 9:15 AM to 3:30 PM, this is the time when people can buy and sell stocks in the financial markets. The buying and selling of shares works on matching buy and sell orders, meaning when the buyer’s price matches a seller’s price for a stock, a trade happens right away. This happens thousands of times every second for all the companies listed on the exchange.

How the Closing Price is Decided

You might think a stock’s closing price is just its price at 3:30 PM on the dot, but it is not exactly that, here the stock exchanges calculate the closing price as the weighted average of all the trades that happened between 3:00 PM and 3:30 PM. This gives a much fairer and more stable price that reflects the stock’s value over the last half-hour of trading.

Post-Market (3:30 PM – 4:00 PM)

As soon as the time is 3:30 PM the main session of the stock market ends but the day is not over yet as from 3:30 PM to 3:40 PM, After that, from 3:40 PM to 4:00 PM you can still place buy or sell orders, but only at the official closing price. This period is known as the “post-market session” where a trade will only happen if there’s someone on the other side who is willing to trade at that same price.

You should also be aware about After Market Orders (AMOs) as these are a bit different, an AMO lets you place an order for the next trading day after today’s market has closed (starting from 3:45 PM, for example). This is a handy tool if you’re busy during market hours and want to set up your trades ahead of time.

Conclusion

The stock market can seem complicated for beginners, but knowing the details can help you in easy decision making for your financial investment journey. You should know that from the pre-open warm-up to the post-close wrap-up, timings are set to make trading fair for everyone.

Understanding these timings is like learning the rules of a game. Once you are aware of these facts you can trade more confidently. It’s a great first step before you start your investment journey, as it helps in planning better decisions and trade more effectively.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	What is Muhurat Trading? Timings and Benefits
2	How Does the Stock Market Work in India?
3	20 Things to Know Before the Stock Market Opens
4	What is the Best Time Frame for Swing Trading?
5	Intraday Trading Rules and New SEBI Regulations
6	Different Types of Trading in the Stock Market
7	Best Intraday Trading Apps in India
8	Top 10 Intraday Trading Strategies & Tips for Beginners
9	How to Trade in the Commodity Market?
10	Best Fast Order Execution Broker Platforms in India

Frequently Asked Questions (FAQs)

What are the market timings in India?
The trading hours for both BSE and NSE start from 9:15 AM and the closing time is 3:30 PM from Monday to Friday.
Can trade orders be placed on Saturdays or Sundays?
No, the Indian stock market is closed on Saturdays, Sundays, and even on public holidays.
Why is the pre-open session important?
It helps figure out a fair opening price for stocks based on overnight news and helps prevent big price swings right at the start of the day.
Can order be placed after the market closes at 3:30 PM?
Yes, investors can trade between 3:40 PM and 4:00 PM at the day’s closing price. You can also place an After Market Order (AMO) that will be sent to the exchange on the next trading day.
Do NSE and BSE have exactly the same market timings?
Yes, the trading schedules for all sessions are the same for both the BSE and the NSE.

December 8, 2025

Types of Interest Rates Explained

Interest rates play the most important role in the world of money. They are not just a percentage, but the real cost of borrowing and investing. It is important to understand the different types of interest and types of interest rates, because some of them are such which type of interest can change over the life of a loan? That is, such interest rates which can change over time. In this article, we will understand 10 types of interest rates in simple language and know how they affect our financial decisions.

What is Interest Rate?

Interest rate is the price that is paid on any borrowed money. In simple words, if a loan is taken from a bank or NBFC, the additional amount that has to be paid on it is the interest. It is measured in percentage (%) and this rate decides how much your EMI will be or how much return you will get from the investment.

Why is it important to understand interest rates?

Interest rates are not just a number or percentage, but they affect your entire financial journey. Many people take a loan just by looking at the “low interest”, but do not understand whether the rate is fixed or variable.

Example : Suppose someone took a home loan and thought that the interest will always be 8%. But after a few years he came to know that he had chosen a floating interest rate, and after the change in RBI policies, the EMI increased to 10%. Result—he had to pay thousands of rupees more every month.

Interest rate game in banks and credit cards

Banks, NBFCs and credit card companies apply different types of interest rates. For example, personal loans and credit cards have higher interest rates because they are unsecured loans. On the other hand, home loans or car loans may have lower rates because they have collateral.

Why is it dangerous to look at only the percentage?

Most people look at the interest rate only as a percentage (%). But due to not understanding the “type” of the rate, the actual cost can increase manifold. That is, despite the low percentage, if the rate is compound or floating, then the payment in the end can be very high.

The 10 Types of Interest Rates Explained

1. Fixed Interest Rate

What is it?

Fixed interest rate is a type of interest rate in which the interest rate remains fixed during the entire loan tenure and there is no change in it. Whether interest rates rise or fall in the economy, the EMI on your loan will remain the same as it was decided in the beginning.

How does it work?

When you take a loan from a bank, the bank offers a fixed rate. If you choose it, your EMI will be calculated at the same interest rate for the entire loan tenure. The bank locks this rate so that you have to pay the same installment (EMI) every month.

Advantages:

EMI remains stable, which makes budget planning easier.
Your loan will not become expensive even if the interest rate increases.
You get peace of mind for a long time as there is no uncertainty in payment.

Disadvantages :

Even if interest rates go down in the future, you will still have to pay the same high rate.
Initially, the fixed rate can be a little more expensive than the floating rate.
Some banks have a reset clause, which means the rate can be reset after 5–10 years.

Example : Many banks in India offer fixed rate home loans for 10–15 years. Suppose, someone has taken a loan of Rs 20 lakh at a fixed rate of 8.5%. For the next 15 years, even if RBI reduces the repo rate to 6%, the EMI of that person will remain the same.

This interest rate is best suited for people whose income is stable, like government employees or people with fixed salaries. Such people do not want to take risks and they want stability in EMI.

2. Floating Interest Rate

What is it?

Floating interest rate is a type in which the interest rate of the loan keeps changing from time to time. This rate depends on RBI policies, repo rate, and market conditions. That is, your EMI can increase or decrease during the loan period.

How does it work?

When you choose a floating rate, the bank links your interest rate to the repo linked lending rate (RLLR) or marginal cost of funds-based lending rate (MCLR). As soon as the RBI decreases or increases the repo rate, your EMI also changes accordingly.

Advantages:

If interest rates decrease, your EMI also decreases.
Initially, floating rate is cheaper than fixed rate.
There is a possibility of saving interest in the long run.

Disadvantages:

There is uncertainty in EMI, which can make budget planning difficult.
EMI can be very high if interest rates increase suddenly.
Loan tenure can increase if EMI is kept the same.

Example : Suppose someone has taken a home loan of 20 lakhs at 8.5% floating rate. If RBI reduces the repo rate to 6%, then the interest rate can also come down to 7%. But if RBI reduces the repo rate to 7%, the interest rate can increase to 9%.

This interest rate is good for those whose income is likely to increase, like private sector employees or business people. It gives them an opportunity to take advantage of low interest rates, but there is also a risk of fluctuations in EMI.

3. Reducing Balance Interest Rate

What is it?

Reducing Balance Rate is the interest rate in which EMI is calculated on the decreasing principal amount every month. That is, after paying every EMI, the principal decreases and the next month’s interest is charged on the same reduced principal.

How does it work?

Suppose, you have taken a loan of 10 lakhs. After paying the first EMI, the principal will decrease a little. The interest of the second EMI will be charged on the newly reduced principal. In this way, your interest keeps decreasing over time and the loan gets repaid quickly.

Advantages:

Interest is charged only on the remaining principal, due to which the total interest has to be paid less.
It proves to be economical for the borrower in the long run.
Gradually the interest part in EMI decreases and the principal part increases.

Disadvantages:

The initial EMI may be a little higher.
Understanding the EMI structure can be difficult for new borrowers.
Some banks may have higher processing fees or hidden charges.

Example : Most banks follow the reducing balance method for home loans and personal loans. For example, taking a loan of Rs 10 lakh at 8% reducing balance rate results in lower total interest than a fixed rate loan.

This interest rate is best for those who take a large loan for a long period. This saves on interest and repayment is faster.

4. Simple Interest Rate

What is it?

Simple Interest Rate is the interest rate in which interest is charged only on the principal, not on the previously added interest. It is often used in short-term loans, education loans or small borrowings.

How does it work?

Simple Interest is calculated as (Principal × Rate × Time) ÷ 100. Suppose 1 lakh rupees is taken at 10% simple interest for 1 year, then the interest will be only Rs 10,000.

Advantages:

The calculation is easy and transparent.
The borrower knows how much interest he will have to pay.
It is economical for short-term loans.

Disadvantages:

The borrower does not get much benefit in long-term loans.
There is a lack of compounding benefit.
EMI repayment structure is not flexible.

Example : Many microfinance loans or short-term agriculture loans are given using simple interest methods.

This interest rate is suitable for those who need a loan for a short period and want a clear calculation of repayment.

5. Compound Interest Rate

What is it?

Compound Interest Rate is one in which interest is charged on the principal as well as on the previously added interest. That is, the concept of “interest on interest” applies.

How does it work?

Suppose, Rs 1 lakh is taken annually at 10% compound interest. After the first year, the interest will be Rs 10,000, which will make the amount Rs 1,10,000. Next year interest will be charged on Rs 1,10,000 i.e. Rs 11,000.

Advantages:

The lender gets higher return due to compounding effects.
In short-term loans, the borrower does not make much difference.
Banking and credit card interest is based on this.

Disadvantages:

In the long run, the borrower may have to pay a lot of interest.
Loans can be expensive if repayment is not done on time.
Interest calculation may seem complicated for the borrower.

Example : Credit card dues and overdraft facilities are based on compound interest rates.

This interest rate is beneficial for the lender. Borrowers should always repay the loan taken at compound rate on time, otherwise the debt can increase rapidly.

6. Prime Lending Rate (PLR) – (Prime Lending Rate)

What is it?

Prime Lending Rate (PLR) is the minimum interest rate at which the bank gives loans to its most trusted and creditworthy customers. It works like base rate.

How does it work?

Banks decide PLR by looking at RBI’s monetary policy and their cost of funds. Customers with good credit scores and strong repayment capacity get loans at PLR. Other borrowers are given loans at rates above PLR.

Advantages:

Borrowers with high credit scores get loans at lower interest rates.
Loan rates are transparent and RBI linked.
PLR is a benchmark for creditworthy borrowers.

Disadvantages:

Average borrowers do not get loans at PLR.
Changes in PLR depend on RBI’s policy.
The actual loan rate for common borrowers is higher.

Example : Top corporates and big companies get working capital loans and term loans at PLR.

This rate is more useful for high-profile borrowers and corporations. Common borrowers usually have to take loans at rates above PLR.

7. Discount Interest Rate

What is it?

Discount Interest Rate is the rate at which commercial banks do short-term borrowing from RBI. It mainly applies to discounted bills of exchange and short-term securities.

How does it work?

This rate is applicable when RBI discounts commercial papers, treasury bills or promissory notes. It is a monetary tool of the RBI to control short-term liquidity.

Advantages:

Helps to overcome short-term liquidity crunch.
Maintains credit flow in the market.
Regulates borrowing cost.

Disadvantages:

Short-term borrowing becomes expensive when the rate is high.
The general public does not get the benefit directly, it is relevant for banks.
This rate is often dependent on market conditions.

Example: If a commercial bank suddenly needs short-term liquidity, it borrows from RBI at a discount rate.

Discount rate acts as a short-term liquidity stabilizer in the banking system. It does not directly affect borrowers, but indirectly affects loan rates and market liquidity.

8. Real vs Nominal Interest Rates

What is it?

Nominal Interest Rate – This is the rate in which inflation is not included.
Real Interest Rate – It is derived by subtracting inflation from nominal interest rate.

How does it work?

Suppose nominal interest rate is 8% and inflation is 5%, then real interest rate will be only 3%. Real rate shows actual purchasing power and return.

Advantages:

Nominal Rate Easy to understand and compare.
Real Rate Shows real return and cost.

Disadvantages:

The nominal rate is not inflation-adjusted, which can hide the actual benefit.
Accurate inflation data is required to calculate the real rate.

Example: An FD gives 7% nominal interest. If inflation is 6%, then the actual return will be only 1%.

Investors and borrowers should always pay attention to the real rate, because it shows their real cost and real return.

9. Secured vs Unsecured Loan Interest Rates

What is it?

Secured Loan Loans which are given against collateral (such as property, gold, FD).
Unsecured Loan Loans which do not have any security, such as personal loan, credit card loan.

How does it work?

If there is collateral, the risk to the bank is reduced, so the interest rate on secured loan is low. Whereas in unsecured loans, the rate is high due to higher risk.

Advantages:

Secured Loan Lower interest rate and higher loan amount.
Unsecured Loan Fast approval and no need for collateral.

Disadvantages:

Risk of losing assets on defaulting on secured loans.
High interest rate and short repayment period in unsecured loans.

Example:

Home loan and car loan are secured.
Personal loan and credit card loans are unsecured.

Secured loans are cheaper for borrowers, but there is collateral risk. On the other hand, unsecured loans are expensive but prove useful in an emergency.

10. Penalty Interest Rate – (Penalty Interest Rate)

What is it?

Penalty Interest Rate is the additional interest that is charged in case of delay or default of loan EMI.

How does it work?

If the borrower does not repay on time, a penalty rate is charged over and above the normal interest rate. This rate may vary according to the terms & conditions of the banks.

Advantages:

Makes borrowers disciplined for timely repayment.
Helps banks cover default risk.

Disadvantages:

The financial burden on borrowers increases.
High penalty rates can put borrowers in a debt trap.

Example : The EMI of a personal loan is Rs. 10,000 and the borrower delays. The bank can charge an extra 2% per month penalty rate on it.

Penalty rate is a harsh financial cost for borrowers. The best way to avoid it is by repaying on time.

How to Choose the Right Type of Interest Rate?

Look at the stability of income : If the income is stable and EMI can be paid comfortably every month, then fixed rate proves to be better. But for those whose income is variable, like people working in business or commission-based jobs, floating rate is more practical.
Importance of Loan Tenure : For short-term loans i.e. 1 to 5 years, floating rate is a good option, because short-term fluctuations remain manageable. On the other hand, for long-term loans i.e. 10 to 20 years, fixed rate keeps EMI stable and financial planning becomes easy.
Effect of Inflation : If inflation is expected to increase in the coming time, then fixed rate keeps EMI stable. On the other hand, in case of inflation decreasing, floating rate benefits the borrowers, because interest rates can come down.
Risk Appetite : For conservative borrowers, fixed rate is better, so that EMI remains predictable. Floating rate is good for those whose risk-taking capacity is moderate or high, so that they can get the benefit of low interest rate.
Purpose of Loan : Fixed rate provides more stability for home loan and education loan. Floating rate is more suitable for working capital or business loans because it provides cash flow flexibility. In case of investment-linked loans, one should choose after understanding the real interest rate and compound effect.
Practical Checklist : Before taking a loan, it is important to think about how much percentage of income EMI is manageable, for how long the loan has to be taken, how much impact will inflation and RBI policy changes have on EMI, what will be the long-term difference between fixed and floating and what will be the penalty charges or foreclosure rules.

Conclusion

It is important to understand the different types of interest rates as they determine your loan cost and financial planning. Choosing the right interest rate depends on your income, loan tenure and market conditions. A wise decision not only makes EMI management easier but also ensures financial stability in the long term.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	What is a Fixed Income Mutual Fund?
2	10+ Best Investment Plan for Monthly Income in India
3	Types of Bonds in India
4	Lowest MTF Interest Rate Brokers in India
5	Impact of Interest Rate Change on Financial Markets
6	What are Bond Valuation?
7	Simple Interest vs Compound Interest?

Frequently Asked Questions (FAQs)

What is Fixed Interest Rate?
The fixed rate remains the same throughout the loan tenure.
What is the Floating Interest Rate?
Floating rate changes from time to time according to market and RBI policy.
What is the Penalty Interest Rate?
When the borrower does not pay EMI or loan on time, the bank charges an extra penalty rate.
What is Base Rate?
Base rate is the minimum interest rate at which the bank can give loan to any customer.
What is the Nominal Interest Rate?
The nominal rate is what the bank officially shows, inflation is not adjusted in it.
What is the Real Interest Rate?
The real rate shows the actual cost of borrowing after subtracting inflation.

December 3, 2025

Unified Pension Scheme: All You Need to Know

Retirement planning has always been a key financial goal for an individual. For Central Government Employees, there are various retirement schemes such as PPF, NPS, etc. But recently, the Government has introduced another scheme commonly known as “UPS” or “Unified Pension Scheme”, this scheme offers a minimum guaranteed Pension.

In this blog post, let’s understand about the Unified Pension Scheme, its eligibility criteria, the process to apply and the key difference between NPS and UPS.

What is the Unified Pension Scheme?

The Unified Pension Scheme was introduced by the Government of India on 24th August 2024, and it became effective from 1st April 2025 for Central Government Employees. This scheme does not include armed- force personnel. The central Government employees can continue with the National Pension Scheme or switch to UPS. If the employee opts for UPS, they cannot be changed back to NPS.

Eligibility Criteria for Unified Pension Scheme

The following are the eligibility criteria for an individual to become eligible for the Unified Pension Scheme:

Only central Government employees who are serving on 1st April 2025 and are covered under NPS can invest in UPS.
Any new employee joining after 1st April 2025 is eligible for UPS.
Any central Government employee covered under NPS who has taken voluntary retirement on or before 31st March 2025.
The spouse of a Central Government employee, who was an NPS subscriber and passed away before exercising the option to opt for the OPS.

Who is Not Eligible for the Unified Pension Scheme

The following persons are not eligible for the Unified Pension Scheme:

Employees retiring from their service before the period of 10 years.
Employees who have been removed from the service.
The Central Government of an employee who has been dismissed from the service.

UPS Scheme Minimum Pension Amount

The minimum Pension amount guaranteed under the Unified Pension Scheme will be 10,000 per month only for employees who have completed 10 years of service.

Benefits of Unified Pension Scheme

The key benefits of the Unified Pension Scheme are as follows:

Fixed Pension: An individual will receive a fixed sum of amount after their retirement, which is equal to 50% of their average basic pay over the previous 12 months of retirement.
Contribution: The employee will contribute only 10% of their basic salary, whereas the Government contributes 18.5% of the employee’s basic salary.
Family Pension: In case of the demise of the account holder before retirement, 60% of the Pension will be given immediately to the spouse of the Pensioner.
Minimum Amount of Pension: An employee who has completed only 10 years of service and retires is eligible for 10,000 INR of monthly Pension.
Inflation Benefit: The individual will get the benefit of inflation adjustment based on the dearness allowance.

Process to Apply For the Unified Pension Scheme

One can apply for the Unified Pension Scheme either online or offline:

1. Online Process:

To apply for UPS through online mode, one can follow the steps mentioned below:

First, an employee needs to visit the Protean Website.
On the home page of the website, there is an option for the Unified Pension Scheme. Click on it.
There you will find Register for UPS; however, if you want to migrate NPS to UPS, you can also select the same on this page.
You can fill out the form and submit the details.

2. Offline Process:

For the offline process, one can follow the steps mentioned below:

The first step is to visit the Protean website.
You will find a ‘Forms’ section under the Unified Pension Scheme. Download the relevant form depending on your service status.
You need to fill in the form and submit it to the drawing and disbursing officer.
The DDO will check the form and send it to the Pay and Accounts Officer for approval.

UPS Withdrawal Rule and Conditions

The conditions related to the withdrawal are based on two rules, namely complete withdrawal or partial withdrawal, the details of which are as follows:

Complete Withdrawal: An employee can withdraw a maximum of 60% of their corpus under the Unified Pension Plan. The remaining amount of the corpus will be utilised towards the regular monthly Pension. However, if the withdrawal is made, the monthly Pension can be reduced proportionately. In case of the death of an employee, their spouse receives 60% of the last Pension for their lifetime.
Partial Withdrawal: An employee can make a partial withdrawal a maximum of three times during their service period. The provision of partial withdrawal is applicable only after a period of three years. Only 25% withdrawal is allowed each time for specific circumstances, such as children’s higher education, medical expenses, etc.

Difference Between UPS vs NPS

The key difference between the Unified Pension Scheme and the National Pension Scheme is as follows:

Particular	UPS	NPS
Pension Amount	UPS offers a fixed Pension amount.	The Pension through NPS depends on the corpus accumulated.
Minimum Pension	A minimum guaranteed Pension of INR 10,000 is provided in this scheme.	There is no provision for a minimum Pension.
Eligibility	This scheme applies only to central Government employees.	Both central and state Government employees, along with private individuals, are eligible for NPS.
Market Risk	There is no market risk in it.	As the amount under this scheme is invested in market-linked instruments. Hence, it carries a high risk.
Inflation	The amount of the Pension is adjusted for inflation.	There are no provisions for inflation adjustment.
Portability	Central Government employees opting for UPS can port their investment.	Portability across sectors applies to it.

Conclusion

The recent introduction of the Unified Pension Scheme by the Government of India is a major reform by the Indian Government in providing benefits to Central Government Employees. It offers an assured Pension without any market risk. However, the Pension amount depends on the corpus accumulated by the employee during their service period. However, it is advisable to consult your investment advisor for your comprehensive retirement planning, as it can help you in managing your expenses post-retirement.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	What is National Company Law Tribunal?
2	Sources of Revenue and Expenditures of the Government of India
3	Explainer on UPI Scams
4	How to Register a UPI Complaint?
5	Best Annuity Plans in India
6	Essential Tips for Retirement Saving
7	Military Wealth Management: Strategies for Growing and Preserving Your Assets
8	How to achieve financial freedom before retirement
9	How to Set Financial Goals for Your Future
10	Top 10 personal finance lessons for self-learning

Frequently Asked Questions (FAQs)

What is the minimum Pension amount under the Unified Pension Scheme?
If an employee has served a minimum period of 10 years, they will get a minimum Pension of 10,000 INR per month.
Can a private sector employee get a Pension under the Unified Pension Scheme?
No, a private sector employee cannot invest in the Unified Pension Scheme; therefore, they are not eligible to get a Pension under UPS.
Will UPS provide a Pension to the employee’s family after their death?
Yes, UPS provides a family Pension scheme, which means that in case of the death of an employee, their spouse or an eligible family member will get 60% of the Pension that the employee would have received.
Can an existing employee opt for the Unified Pension Scheme?
Yes, an existing central Government employee can opt for the Unified Pension Scheme once in their service tenure. However, once they opt for UPS, they cannot switch back to NPS.
When will the Unified Pension Scheme come into effect?
The Unified Pension Scheme came into effect from 1st April 2025.

December 1, 2025

Category: Personal Finance

What is Fiat Money and How It Functions

Fiat Money Meaning

What is Fiat Money?

How does Fiat Money work?

Evolution of Fiat Currency

Major Examples of Fiat Currency Across the World

Advantages of Fiat Money

Risks and Limitations of Fiat Currency

Fiat Money vs Commodity Money vs Cryptocurrency

Conclusion

Frequently Asked Questions (FAQs)

What is fiat money?

Is the Indian Rupee a fiat currency?

Why is fiat money not linked to gold?

Does fiat money lose value over time?

Is crypto a replacement for fiat money?

What Is Free Float Market Capitalisation?

Key Features of Free Float Market Capitalisation

Example of Free Float Market Capitalisation

Company A

Why This Matters

What Is Free Float Factor?

Advantages of Using Free Float Market Capitalisation

1. Shows Real Trading Value

2. Reduces Promoter Influence

3. Improves Liquidity Analysis

4. Enables Fair Stock Comparison

5. Creates More Reliable Index Weights

6. Prevents Distorted Market Rankings

How Market Volatility Connects With Free Float Market Capitalisation

1. Smaller Free Float Creates Higher Volatility

2. Larger Free Float Helps Stabilise Prices

3. Volatility Affects Free Float Market Cap Directly

4. Low Free Float Amplifies Market Reactions

5. High Free Float Reduces Manipulation Risk

Difference Between Free Float and Full Float

Conclusion

Frequently Asked Questions (FAQs)

What does free float include?

Is free float always lower than total market cap?

Does a low free float increase volatility?

Why do indices prefer free float market cap?

Can free float change over time?

What is a Car Loan?

Best Car Loan in India 2026

1. State Bank of India (SBI)

2. HDFC Bank

3. Axis Bank

4. Canara Bank

5. Bank of India

6. IOB Car Loan

7. ICICI Bank

8. Bank of Baroda

9. IDBI Bank

10. Federal Bank

How to Choose the Best Car Loan Bank

How to Invest in Car Loan Bank Related Stocks

Conclusion

Frequently Asked Questions (FAQs)

Which bank is best for a car loan in India?

What is a good interest rate for 2025?

Can I get 100% funding?

What loan tenure is best?

Is prepayment allowed?

What is a Credit Score & Why Does it Matter?

Who calculates it?

Importance of the score

Score range and meaning

Why is a regular check important?

Introduction to CRIF High Mark

Global and Indian History of CRIF

RBI approved Credit Bureaus in India

What makes it special?

Both personal and business reports

How to Check Credit Score with CRIF (Step-by-Step Guide)

Step 1: Visit the official website

Step 2: Fill in your information

Step 3: Verify with OTP

Step 4: Answer additional security questions