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Learning from Nmart the latest Mega Scam

Shitanshu Kapadia
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0
Learning from Nmart the latest Mega Scam

Nmart Scam

Before one year only we have witnessed mega scam of “Speak Asia” online survey based company they have cheated people through MLM route. Where investor has lost several lakh rupees, history repeats again and many people are cheated again by using MLM concept by Nmart retail chains.

NMart Retails, a division of Newlook Multitrade Pvt Ltd has run collective investment scheme (CIS) based on the multi-level marketing (MLM) business, under the excuse of selling products through its retail chain.

Now most of the stores of Nmart are closed and this scheme is declared as fraud. It is estimated that more than 20 lakh people are cheated through this scheme. Estimated scam value is 1400 Cr. Master Mind behind this scheme is Mr.Gopal Sekhawat.

Let’s look at mouthwatering scheme proposed by Nmart Retail to customer.

Nmart Fraud Scheme Details:-

According to information available on the company’s Website, anyone wanting to join the NMart Retail system or business plan, has to invest or deposit Rs5,500. The company provides 48 vouchers of Rs220 (it needs to be consumed each month over a period of four years), a ‘smart’ card, credit facility of Rs1,500 per month (provided you settle the bill by the 7th of the following month), and last but not the least, a bonus of Rs11,000, if at all you remain with the company (and continue to enrol new recruits and buy products from its shop) for 48 months.

The company also promises to pay other incomes, like binary income, spill-over income, royalty and repurchase incomes.

For any two new joinees, on either your left or right leg or down line, you would get Rs600 as pair income for an unlimited depth. (But it is capped at 100 pairs, or a payment of Rs60,000 per week.) So, the company says, enrolling 8,000 new distributors below your rank can earn a binary income of Rs24 lakh. If your success percentage is just 1%, you could still earn Rs24,000 just as binary income!

It, however, does not mention that for this you still need to enroll 80 new people with an investment of Rs5,500 each, or a total Rs4.40 lakh, of which the company would pay you Rs24,000. That’s about 5% only and it keeps the rest with itself! If this is not enough, then the company promises to pay you spill-over income, or Rs200, for every new joinee below your line for an unlimited depth. In addition to this, NMart also promises to pay royalty and repurchase income.

The company projects an income of Rs48 lakh for a down line of 16,000 distributors, with 8,000 associates on the left and right legs, each earning Rs24 lakh. But the next presentation slide suggests that you to do ‘smart work’ and instead recruit your own family members (like your spouse and your mother) instead of outsiders, to you can keep all the money (Rs48 lakh + Rs24 lakh + Rs24 lakh = Rs96 lakh) within the family!

Learning from Nmart the latest mega scam:-

After going through scheme details let look for learning from this scam how you can safeguard yourself from this type of fraud scheme.

Avoid participation in Ponzi Schemes:-

Please remember there are no shortcuts for long term goals/dreams. I don’t see this more than a ponzi scheme. One must analyse the compensation plan to determine whether participants are paid from actual sales/profit to customers and not from money received from new recruits. If participants are paid primarily from money received from new recruits, then the company is on illegal pyramid or running Ponzi scheme. This is what Nmart was doing.

Research before participation:-

Before participation in any scheme you must do enough research about scheme including background of company and promoters.

Nmart Company is promoted by Gopal Shekhawat, who is also said to be chairman for Asia of the International Human Rights Association. In some places, Mr Shekhawat is also referred to as being the nephew of the President of India, Pratibhai Patil, but this information is false.

Newlook Multitrade, the parent of NMart Retail, has its corporate office in Surat and mentions a Mumbai address in the records of the Registrar of Companies (RoC).

Control your Emotion:-

What we have seen here is most of the people has attracted by mouthwatering scheme details of Nmart. So request is you should control your emotions don’t get let emotion get controlled over your behavior.

Apart from this type of schemes in market you will find many companies including banks offering discounts & special offers to sale their products, remember they are not fool that they are giving lucrative offers for your betterment.  Ultimately they are getting business benefit and that is pretty higher than what offer they are giving to you.

Avoid participation in Pyramid Schemes:-

Pyramid schemes is referred to as “chain referral”, “binary compensation” or “matrix marketing” schemes, these are marketing and investment frauds which reward participants for inducing other people to join the program.

NMart has also adopted same practice they paid commissions for recruiting new people.On the issue of MLMs, the United States Federal Trade Commission states, “Steer clear of multi-level marketing plans that pay commissions for recruiting new distributors. They are actually illegal pyramid schemes. Why is pyramiding dangerous? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people-except perhaps those at the very top of the pyramid-end up empty-handed.”

Conclusion:-

Truly Nmart Fraud has happen due to lake of knowledge & awareness. People have participated in scheme considering their money will get double and ultimately they lost all hard earned money.

If we don’t educate ourselves and participate in schemes based on emotion and not by data, these types of fraud will keep on happening, very few are big enough that comes to everyone’s notice including Nmart & speak asia.

Do light lamps of financial freedom this Diwali!

Shitanshu Kapadia
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0
Do light lamps of financial freedom this Diwali!

Financial Freedom

Diwali or Deepavali is popularly known as the “festival of lights,” is a five day festival which starts on Dhanteras, this is the time when everyone wants to buy new cloths, gold, electronics, sweets and other items. In this festival with lots of joys and happiness we decorate house, light lamps and fire crackers.

Essence of lighting lamp/diyas on diwali is illuminations of this lighted diyas bring the supernatural brightness and joy with the hope of finding light in darkness, achieving knowledge where there is ignorance, and spreading love.

This diwali let us try to light the lamp of financial freedom which will bring real light and happiness in your life for years to come. We at moneyexcel.com advise you to start working on at least following four personal finance essentials from this Diwali in order to step forwards towards financial freedom.

Insurance of life and all other assets:-

Each of us is driven by a common goal, providing a safe and secure future for our loved ones. It starts with giving them the necessities and luxuries of life and protecting them from any financial losses. Insurance helps us do that. It’s a medium to protect us from the risk of any uncertain loss that may occur. It does not protect us from the damage but will help recover the financial loss faced by us. It works in a fairly simple way wherein we pay a premium to the insurance company in return of a promise by them to recover losses faced by us if any.

There are two types of insurances, Life insurance and general insurance. Life insurance is meant to protect and provide for the family members in case of untimely death of the earning member of the family. Life Insurance is a must for anyone with dependents and must be high on the priority list. General insurance is meant for homes, vehicles and other assets wherein any loss to the asset will be compensated for by the insurance company. Hence anyone with dependents they want to protect or assets which they have bought with their hard earned money must ensure that insurance is on the top of their list of priorities.

Investing for Life Goals:-

The life of each individual is marked with specific times for specific events like marriage, purchase of a house or vehicle, children’s education and their marriage and finally retirement. Each of these is goals which have to be planned for well in advance. Every individual decides upon a certain amount to be invested into the event. So to achieve our goals we invest. However each of our investments must be directed keeping in mind a certain goal and its time horizon. This enables us to ensure that we have adequate amounts of funds in times of need.

Debt Reduction & Management:-

Nowadays, debt isn’t a dirty word. But like the earlier times it still brings unimaginable burden to the family. Debt allows people to buy items that they couldn’t have otherwise been able to afford. However sometimes repayment of unsecured debt may become a problem. In such cases debt management schemes can be employed where a third party organization assists the debtor to repay his debts by re-negotiating the interest rates with the creditors.  It proposes re-negotiated interest rates after taking into account all the priority payments. A debt consolidation method can also be used in order to manage debt wherein, one can take a secured loan in order to pay several other unsecured loans. In case of this method, a reduced or stable interest rate provides the debtor with relief.

Estate Planning:-

Over the years one saves and accumulates funds to own assets, namely property, cars, jewelry and even retirement investments. Each one would want the assets to be properly given off after their death. Hence an estate plan should be in order. It ensures the accumulated wealth from over the years goes to the intended person and is not wasted away. It also ensures the family has less bad blood amongst them as assets are shared as per wishes of the deceased person. However it does not mean that only wealthy people should have an estate plan in place. Anyone who has a family must make sure he has a will, an attorney who will take care of the affairs and also appoints a guardian for his children as lack of it will pass over the custody of your children in the hands of the court. An estate plan will ensure your life earnings are not wasted and will be passed over to your family to help them feel protected and secure.

So do work on these four financial plan essentials to make sure you move forward to financial freedom and bring upon our families the happiness they deserve.

Remember financially secure life is a happy life.

What Super Mario Game Taught Me about Money

Shitanshu Kapadia
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0
What Super Mario Game Taught Me about Money

mario game

Are you a 80’s or 90’s kid? If you are, then you KNOW that Mario games were the best. Simple concept, somewhat hard, and addicting! Mario Games are a ton of fun to play. Many of us had played this game for fun but along with fun this game taught us following lessons about money.

1. Every Coin Counts

In Super Mario, golden coins are everywhere. There’s so many of them that they’re easy to ignore. “I don’t need that coin on top of the pipe,” you tell yourself. “I’ll get more later.”

But every single one of those coins matters. If you collect 100 coins in the game, you earn an extra life. And that extra life could mean the difference between beating Bowser’s Castle and starting back at the first level in the game.

The same holds true in real life: every penny matters. You never know when you’ll need that money for something important, so grab all the coins that you can.

2. Don’t Gamble Your Life for a Little Money

There are plenty of coins in the game that look impossible to get. They’re suspended in air off the edge of the cliff, taunting you. Of course they’re technically reachable (they wouldn’t be there if it was impossible to get to them). But there’s a pretty good chance you’ll fall right off the ledge if you try to grab it.

On the one hand, every cent matters. But on the other hand, don’t go risking your life to earn an extra buck. In real life and in the Mushroom Kingdom, every rupee has an opportunity cost, including what it takes to earn it. And sometimes, it’s not worth the risk.

3. Be prepared for change

In Super Mario at every level you have been assigned with separate set of role and responsibility. This concept teaches us that we have to be ready for every type of changes. Remember that No job is always secured so we should diversify our skill set to fit in ourselves for different hats.

4. Keep Your Eye on the Prize

It’s easy to get caught up in the little tasks during the game. Grab the mushrooms, collect the coins, stomp the Goombas… You’ll often feel like you’re in survival mode, just trying to stay alive until you can reach the end of the level and walk through that castle.

But remember you have a bigger purpose. Remember your ultimate goal: to pass the level and save the Princess. So when times get rough, when you don’t think you can make it past the flying fish and fire balls, or when you get distracted by the hundreds of shiny coins in the air, think about the Princess, the reason why you’re going through all of this hassle in the first place.

Like in the real world, it’s easy to get distracted by the short-term goals and obstacles in front of you. Stay motivated and focused by keeping you eye on the prize.

Besides, money is useless unless you have someone you love to share it with your princess.

Super Mario Infographic:-

super mario

Do share your opinion  learning from this game.

Special offers by banks on financial products

Shitanshu Kapadia
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0
Special offers by banks on financial products

special offer

Diwali season has started, banks has started giving discounts and various offers on various financial products, so we are herewith list of special offers provided by bank on saving bank account, credit card, home loan & car loan. If you are planning to adopt any of these financial products you can prefer this list to get added advantage.

Saving Bank Accounts:-

If you have been given choice which feature you want in your saving bank account than your wish list will be something like:-

  • High interest rate
  • Nil Minimum balance requirement
  • Personalize Services
  • High limit for Daily ATM Transaction
  • Customized products, services depending on loyalty and size of account
  • No annual fees

We have some banks which provide some interesting services fulfilling your wish list.

  • If you want high interest rate on your saving bank money bank like Yes Bank and Kotak Mahindra Bank give 6.00% and 5.50% respectively on savings accounts with balance less than Rs. 100,000. For balances above Rs. 100,000 the rates are 7% and 6% respectively. Other banks do not match this figure.
  • If you want that your bank should not charge you for not maintaining minimum balance State Bank of India is the bank they have removed minimum balance criteria for saving bank account. Other bank charge penalty if you don’t maintain minimum monthly/quarterly balance specified.
  • If you are looking for High limit for daily ATM transaction than you can avail this facility from SBI (State Bank Of India). SBI provide 40,000 Rs/- as daily withdrawal limit whereas most of the bank this limit is cap at 25,000 Rs/-
  • When it comes to online banking, Citibank India has a really good internet banking facility. There is multi level security, ease of use, no multiple registrations when it comes to adding new services like trading in mutual funds.  For a monthly SIP amount up to Rs. 20,000 in mutual funds there are no charges. Whereas most of other banks with demat facility charge certain amount for Mutual Funds purchase.

Credit Card:-

If you have been given choice which feature you want in your Credit Card than your wish list will be something like:-

  • High Credit Limit
  • No/Low Annual Fees
  • Customized Reward Points

Here are some credit cards worth taking a look and maybe even having them.

  • Credit cards from Citibank generally have a 55 day credit period. Most other banks have the credit period around 48-52 days.
  • The American Express Gold card is high on reward points for customers. You get 1000 points if you use it once a week. You get points on purchase of grocery, fuel, travel and utility bills. At the end of one year of usage of the card, you get additional 5000 points. There are discounts of up to 20% in premium in fine dining restaurants.
  • Citibank Jet Airways Citi Business Credit Card is another interesting card. It is perfect if you are a corporate executive who has to travel frequently. You earn 2 points for every Rs. 100 spent and double the points for tickets booked on Jet Airways.

Many banks have special privileges on Gold cards and Platinum cards. You must try to upgrade to these type cards by calling up the bank as the normal cards do not have too many offers/goodies for the customer. If you become a preferred customer or get a high priority status, you can avail of more benefits as a credit card customer.

Home Loan:-

Your wish list for home loan will be something like:-

  • Low/Nil Processing Fees
  • Low Interest Rates

Here are some offers given by bank on home loan this festival season.

  • Starting offer discount SBI has slash processing fees on home loan and car loan by 50%, while ICICI bank has reduced interest rate on housing loan. ICICI bank is now offering floating rate home loans at 10.25% up to Rs 30 lakh and at 10.50% for amounts above Rs 30 lakh and up to Rs 3 crore until the end of the calendar year. This rate is around 0.25% to 1% lower than the normal rate on housing loans.
  • HDFC has also followed ICICI and reduced home loan rate to 10.25% up to Rs 30 lakh and   10.5% for loans above Rs 30 lakh.
  • While UCO bank has come up with combo offer on taking both car loan and home loan. They have waived off processing fees on home loan. Union Bank of India’s also offers processing fee waiver for home and vehicle loans.
  • Similarly, Bank of Baroda has slashed interest rates on home loans by up to 1.50% and auto loans by up to 1.75% in addition to waiving off processing charges.
  • Corporation Bank is offering a concession of 0.25% on interest rate for vehicle loans, if the borrower avails of both home and car loans. Processing fees are also waived off.

We doesn’t mean you get attracted and take home loan due to this discount offers, Essence of this post is you must try to get best benefits from financial product you use. This will help you to make more money which is beneficial to you.

If you know some additional offers from bank which can be beneficial to all do share with us via adding comments.

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