Power of Aadhar - True potential to be unlocked !

Last week, we decided to upgrade my wife's phone connection from a pre-paid to a postpaid plan. After swirling around the town, we landed up in a showroom in Ashok Nagar. The showroom was
very busy and filled with people. All of the representatives were quite engaged in conversations with customers.  In fact, the store had a token system for customers to be serviced in order, by the Airtel representatives. We took a token and patiently waited for our turn. While waiting for our turn, my wife told me "I don't have a passport sized picture. Would that be a problem?". I gave her a stare, not knowing how to react to that.

Also read: Coimbatore Airport - Lost & Found

I looked around and saw some applications hanging off the shelf in the wall. I pulled a postpaid upgrade application form from the shelf. It was longer than the application form to apply for a H1B visa in US consulate. They had a place to affix photograph. "Oops!" I thought. I made my wife to sit inside the store and walked out to check if there is any instant passport photo shop nearby. I couldn't spot one. I walked back into the Airtel store with disappointment.

Around that time, one of the representatives called our token number. We walked to him and occupied the chairs in front of him. He looked at us and asked for the application form, photograph, address proof and ID proof. I told him with a "sorry" face "Sir! We don't have a passport sized photograph. We just have the Aadhar card. Would that be enough?". He said "No problem sir ! That would be enough". He pulled out a small finger print reader, connected it to his mobile phone... and opened an application from the mobile. He entered the Aadhar number and asked my wife to put her thumb on the finger print reader. The mobile application immediately pulled all of her information from the Aadhar database - picture, address etc., He entered the old pre-paid mobile number, selected the basic postpaid plan and clicked submit. He said "Sir! The transaction is complete. You'll receive an SMS in another 4 hours and the migration to a postpaid plan would be complete".

Also read: Money need to R2I

"Wow! No application form... no signatures ... no photocopies of proofs "... I was spellbound when I saw that. The experience that I had in the Airtel store was on par with some of the mobile activation experiences that I've had in the US (or even better than that). I was amazed by the power of Aadhar. I'm now quite excited to see other Aadhar integration applications. I'm hoping that we will soon live in a world, where we don't have to remember two dozen usernames and passwords. On one side I'm excited of the simplicity of Aadhar and on the other side, I'm nervous about its security features. In a country like India, it is very hard to protect online services from hackers. Hopefully, Nandan Nilekani had done a thorough job on the security of the Aadhar services, too. I feel that India is very well positioned to enable digital identity verification and digital payments with services like Aadhar based validation and UPI payments. We have the potential to leap frog some developing / developed nations in digital payments / customer identity validation.

Canon Camera Service Centers in Chennai - Scarce & Costly !

I have been owning a Canon Powershot A630 for nearly 4 years, now. Recently, the camera needed a service. The lens door wasn't closing or opening properly. I started looking for service centers in Chennai. I took the camera for service to a 'mom & pop' service center in Parson Complex (near Gemini Flyover). The shop was called V.V Camera Clinic. It looked very much like a 'watch repair shop' that you see on the road sides. After seeing the camera, he said, he'll charge Rs.950 for the repair. I was completely thrown away when I heard the price. I asked him - "Are you going to replace th entire lens". He said, "No sir! I'm going to just fix the lens door". I asked him "Can you just remove the lens door for me? Technically, I don't need a lens door as I'm keeping the camera away from dust all the times". He said "No sir ! It isn't possible". I was hesitant to leave my costly(!) camera there for service. I decided to check with a proper "Canon Camera Service Center" in Chennai. (Also read: Goods in US market - lots of options & cheaper prices)

One of my friends told that there is a Canon Service Center opposite to HCL Technologies, in Vadapalani. I took the camera there and came to know that the Service Center is taking care of only printer repairs, these days (They used to service cameras before). It looks like they've consolidated all the Canon Camera/Camcorder repair services to one location in Chennai.

The Canon Camera Service Center is located in Mylapore - right opposite to Thirumayilai MRTS/Railway Station. It is a busy area with buses flying left and right. and I had to park my two wheeler on the road near-by. The service center itself is a small shop and had neat interiors. There were atleast 3 people waiting before me. There was a board in the shop displaying the rates for various services. The minimum charge for any service is Rs.827 (Rs.750 + tax). They do a pre-inspection and will tell you "how much it would take to service the Canon camera". They'll give you a ball park estimate. After inspection, they'll tell you the exact amount for the service. If you think, you don't want to do the service, you can get the camera back. However, they charge Rs.200/- for inspection.

One of the service reps did a pre-inspection and told me that it would take Rs.950 for the service :-) [Thats when I realized why the "mom & pop" guy asked for Rs.950]. I asked the service rep "Why does it cost so much to just replace a small lens door?". He said "Sir ! Any time we open a camera for repair, we charge Rs.827. Charges for the parts will be extra". I thought "Hmm ! These guys are getting more than what I get paid for an hour of job". I didn't have much option. I decided to leave the camera there for service. They called me in an hour and asked me to collect the camera back. I couldn't go on the same day and collected the camera on the following day.

It costed me $20 to get a small lens door replaced, in Chennai. Of course, the same job would cost more in US. But, $20 still looked high for Indian standards. Considering the fact that many guys own Canon Camera/Camcorders here, having only one service center for Cameras/Camcorders was still surprising to me. Not sure if there are many mom & pop guys who are stealing "service" business from Canon. Or, the Canon cameras may not be getting faulty often :) Anyways, it was an interesting experience to me. Just thought of sharing the experience with others.

Here is the address for the Canon Authorized Service Center in Chennai. NO. 7 RK MUTT ROAD, 1ST FLOOR, MYLAPORE, CHENNAI, TAMIL NADU, Pin : 600028, Tel : 044-42101331/64602423. You can look at Canon India website for the latest details.

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How much money do you need to R2I?

Cost to Company (CTC) - Peeling the Onion

If you are planning your R2I and looking for a job in India, you need to have a good understanding of Cost-to-Company (CTC). CTC is the total money that company gives you - in some form or the other. If you expect your monthly salary to be (CTC/12 - appropriate tax deductions) you are going to be wrong ! The reality is - your monthly pay check will be way less than that.

Now, what is included in CTC? How do you calculate CTC? Is CTC formula common across all the organizations? You'll find answers to these questions and many more in this blog post.


The following are some of the things that are typically included in your CTC.

•     Basic Pay
•     House Rent Allowance (HRA)
•     Dearness Allowance (DA)
•     Conveyance allowance
•     Medical allowance
•     Leave Travel Allowance or Concession (LTA / LTC)
•     Telephone / Mobile Phone Allowance
•     Incentives or bonuses
•     Special Allowance
•     Company’s contribution to Provident Fund (PF)
•     Reimbursements (Medical Bills, Phone bills, magazine subscriptions)
•     Life Insurance
•     Health insurance

There are various tax exemptions that the government provides for many of these items. For example, you are eligible for tax exemptions for the HRA (if you are renting a home or if you have got a home loan to pay off.  All you need to do is just produce bills/proof.

The concept of CTC is very prevalent in India. However, the components of CTC vary from one company to the other. There is no common formula to calculate CTC. It is typically the SUM of all the promises that your company makes to you in-terms of payments/benefits.

It is perfectly fine to ask the HR person "How much would be my monthly take home salary". The HR person may give you a honest/straight-forward answer or a wishy-washy response. If he/she gives you a 'wishy-washy response', you can probe further to understand your REAL monthly take home salary.

Whenever your employer says that your CTC is "so much" - ask for a split-up. The split-up should give you an idea of how much you would get in your monthly pay check. Don't feel shy to peel the onion. When it comes to understanding your CTC, you'll cry if you don't peel the onion at the right time.

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10 tips for R2I salary negotiation
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US to India Money Transfer Strategies

Many of us go to US to earn money. The USD -> INR exchange rates make it lucrative for more and more people to go to US, to work. If we keep the hard earned dollars as dollars in US, we won't be able to appreciate the value of it. The real value of a dollar is seen, only when you transfer that to India and spend it in India. This blog post helps you to find the best strategy, to transfer money from US to India. Also, I've presented the findings of the survey that I conducted on this subject.

Aren't you curious to learn about the strategies adopted by people to transfer money to India? 

Regular Monthly Transfers - You can request your bank in India to automatically withdraw a fixed amount from your US Bank account, every month or at regular intervals. This technique is similar to Dollar Cost Averaging (DCA). Throughout my stay in US, I followed this approach & it proved to be very rewarding. I never have to "time the market" and didn't have to worry about the "conversion rates".

Timed Transfers - Some folks keep accumulating the money in their US bank accounts and do transfers to India only when the exchange rates are at their peak levels. However, the challenge with this approach is - it is difficult to "time the market". At the least, you cannot be RIGHT, all the times. For example,

    in 2006, 1 USD = 46 INR
    in 2007, 1 USD = 39 INR,
    in 2008, 1 USD went from 41 to 49 in just few months.

Looking back, you can say we could have gotten the best conversion rates by transferring all the money during 2008. But, how do you know 'what is the real peak' & 'what is the real bottom'? When 1 USD was 39 INR in 2007, people were speculating that it may go all the way down to 36 INR. When 1 USD was 41 INR in early 2008, who knew that it would go all the way to 52 INR in 2009? This is no way different from "Timing the Stock Market". But, similar to trading stocks, if you are disciplined enough to have your own self-targets for the exchange rates (& not become greedy), you'll be able to make some good money by taking advantage of the exchange rates.

Need based Transfers - There are a few folks who transfer the money only when there is a real need. They keep their investments in US Stocks, Bonds, Houses & at times, the money just sleeps in their US checking account. They transfer it to India only when there is a need such as buying a property, wedding, medical expenses etc., With the US FDIC providing insurance for only up to $200,000, you have to be a bit cautious if you are maintaining huge chunks of balance in your checking account.

Random Transfers - There are folks who don't transfer money to India, regularly. But they do the transfers only when they feel like moving some money to their Indian bank account. The disadvantage of this approach is, you may not be getting the best of "DCA" & also the "Timed Transfers".

I did a survey with my friends to find out

1.     Which bank/service they use for transferring money to India?
2.     How long does it take to transfer money from US to India?
3.     How often the folks transfer money from US to India?
4.     What is their money transfer strategy?
5.     Do they like their money transfer service/bank?

(click on the image to enlarge)

The findings of the survey are given below:

•  ICICI service is predominantly used for money transfers. Other services being used are SBIOnline, Citibank, Wells Fargo, Central Bank of India, and Fedwire.
•  It takes anywhere from 4 hours - 10 days to do the transfer. (Fedwire can do it in 4 hours. ICICI can do it in 3 days. SBI takes 5 days)
•  Most folks do the money transfers at regular intervals. They take advantage of DCA.
•  12% of the surveyed folks hated ICICI's service

(click on the image to enlarge)


Additional info found during the survey: SBI Online provides one of the best exchange rates. Citi gives the best exchange rates if you are looking out to transfer more than 25K USD.

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The need for more money never ends
How much money do you need to return back to India 

How much money do you need to Return to India (R2I)?

Many of us decide to go to US to earn money. However, after being in US for a few years, we find it difficult to decide "How much money is enough to settle in India?". Yes! the cost of living in India has gone up significantly in the last decade.  So, you may be wondering "How much money should I have to Return to India (R2I)?" The right answer is "It depends".

I've made an attempt to capture the cost of living in Chennai (as of 2009). The expenses have of course, sky rocketed. Given below are the approximate expenses for a 5 members family (Husband, wife, kid, grand parents), leading a comfortable (but, not luxurious) life.

Settling costs (Rs. 60 Lakhs - Rs. 1.15 Crore)

Own House         - Rs. 50 lakhs - 1 crore 
                    (depending upon the location. These days, you can find great deals on real estates and rental properties in online websites such as Magic Bricks & MyDeals India)
Car               - Rs. 7 - 13 lakhs
Furnishing        - Rs. 3 lakh 
                    (bed, TV, refrigerator, A/C etc.,)

Monthly Expenses (~ Rs.27K per month)

Groceries                - Rs.8K
Vegetables/Fruits        - Rs.3K
Electricity              - Rs.1K
Gas Cylinders            - Rs.1K
Petrol/Diesel            - Rs.2K
Doctor Visits/Medicine   - Rs.1K
TV/Phone/Mobile/Internet - Rs.3K
Dining out               - Rs.3K
Recreation/Entertainment - Rs.3K 
Wedding/Other Gifts/Toys - Rs.2K
       
Yearly Expenses (~ Rs. 80K per year)

Dresses for the family   - Rs.20K
Travel/Sightseeing       - Rs.25K
School expenses          - Rs.35K - 50K, per kid
                          

Note

- The above expenses do not include insurance payments, service/maintenance of items (car, A/C, refrigerator, washer etc.,). I'll update them when I get more details.

- In case you've decided to rent a house - renting a 3BHK house costs anywhere from 15K - 25K depending on the locality/facilities etc.,

- Some schools charge up to Rs.1 Lakh donation during the initial admission (Also read: Getting KG admission for a kid in school - the math behind it)

The money that you may need to settle in India is very subjective. It depends on your family size, life style, spending pattern, city in which you want to live etc., If you have spent 6 - 10 years in US and invested your savings wisely, you should be able to settle in India, very comfortably. At the end of the day, there is no end to the need for more money.

Related posts:


R2I Checklist
R2I - List of things to pack/bring from US
US to India Money Transfer Strategies
Cost to Company (CTC) - Peeling the Onion

The need for more money never ends

Years ago, we were small kids. Our needs were very simple. All that we had wanted is something to eat and something to play with. Our parents did a good job of taking care of all our needs. Occasionally, we used to get some pocket money. Even 5 Rupees is a lot. But, we always liked things that cannot be bought with just 5 Rupees. At times, we do some household work to get more pocket money to quench our desires.

Time went on ... we grew up, and did our schooling. Our pocket money grew with us to 50 Rupees. But, our needs continued to outgrow the money that we had. We then went to college. Our parents started giving Rs.500 as pocket money. Our needs didn't give up the race. They continued to outgrow the money that we had. Even things like a simple college tour costs a few thousand Rupees and we had to borrow money from our friends. We used to think "When I get a job and start to work, I'll earn a handful and I should be able to enjoy all that I'm missing today".

Time went on ... we completed your college studies and landed in a job. We started earning lots of money. Now we think, "Oh! I cannot be using this public transportation. It is always crowded and doesn't come on time. I definitely need a 2 wheeler". Our monthly salary isn't enough to buy a 2 wheeler. So, we apply for a loan to buy the 2 wheeler.

Time went on ... we got married and had kids. Our needs started exploding all of a sudden. We want to buy a car now, to travel with the family. We want to buy a home now, to live comfortably. But, our salary isn't enough to buy all of those. We apply for loans to meet our new desires.

Life goes on... but, our needs never end. Irrespective of whatever lump sum that we earn, we always get into debt. We may think, "Well! My boss or my company CEO should have lots of money. He shouldn't be having the money problems that I have". But, the reality is "They're also in debt. Their debt will be bigger than yours - proportionate to what they earn".

Everyone is on a leaking boat like yours. The moment you fix one hole, the other one pops out. We end up spending most of the time in our life, fixing those leaks. One fine day, our journey will end and we have to step out of the leaking boat. Until then, OUR NEEDS NEVER END and so is the NEED FOR MORE MONEY.

Also read:  

How much money do you need to R2I?
US to India Money Transfer Strategies