Weve reached the end of this weeks course that started on Monday. Heres a test you should take. et pen and paper! Question 1: Which of the two cannot accept deposits from depositors? -ank -N remote island. And they delivered. They used a helicopter because that was the fastest way to reach the island. Obviously, this was no regular crdit quarter stood at Rs 4.51 lakh cr , or 25.3 of annual estimates . + LIC Mutual Fund announced the completion of the takeover of schemes of IDBI Mutual Fund . These are the main incoe sources for credi card companies. You might be wondering E2 80 93 if creit crd bills are paid on time, you will neer have to pay interest. Rs 27,000 cr to unit holders of 6 shut dbt schemes till date. Total AUM of a 6 schemes combined was cr. +Output of India ore sectors rose 2in June E2 80 93 fastest in 5 months . Thats not a typing mistake. A woman was on a private island E2 80 93 most likely at a remote location. She called her credt card company E2 80 99s concier ge service and said that she didn't have ice cubes for her drink. India. Smart people are reaping the benefits of these cards. And then, of Missed the previous days of this 6-day course? We sent the emails to you. Just search 'Groww Digest' in your email's search box. Did you enjoy this issue? The information contained in this Groww Di Creit cards in the US earned a total of billon in 2020 from late payment fees in the USA. And then of course, there are those people who nver pay back. Those are called bad lans or non-performing assets (NPA). Question 4: Which of the two needs to adhere to the reserve ratio com pliance? -Banks -NBFC -Both op 50 wilful defaulters including Gitanjali Gems and ABG Shipyard owe Rs 87,295 cr to banks and finacial institutions: Finnce Ministry. +The number of Incme Tax Returns filed till 31 July deadline stood at 6.77 cr , 16.1 Creditcard dbt is a serius poblem in the USA where crdit cards are more common. As you saw, crdit rd companies want more people to have cedit cards. To minimize their losses, for each person, they imp CreditCard Perks Creditcard companies are desperate to make al their customers happy not just the richer ones. Regular crdit cards come with tempting perks. Even entry-level creit cards come with perks like cashback points. places, etc. There are crdit cards that let you use these cashback points to pay for fuel, airline tickets, hotels, and so on. It oly goes up from Eventually, the mony owed becomes huge. Remember, mney spent using a creditcard is basically a lan. Some famous personalities like actors, singers, sports stars, etc have gone bankrupt because of creit card dbt. Crdit Cards in India Crdit cards are grat for people who are smart with them. Crdit card companies make a big portion of moey from people who a Question 5: Which can give hoe lons?-Banks NBFC -Both Answers: Q1: NBFC Q2: Bnk will collapse Q3: ll above Q4: Banks Q5: Both Missed this week's course? You can download the course PDF - clik to download . The Indian government has restricted Imports of laptops , tablets, al-in-one personal computers, and ultra small fom factor computers, and servers fall ing under HSN 8741. e already booked, accss to closed-door events, evacuation from remote locations, purchse of luxry items that are already sold out, you nae it. They have done it. You're getting this email because you're a Groww user and we believe you deserve grat finnce content and the latest updates from us. However, you have the option to unsubscibe her. Disclaimer: The above-mentioned details have been collated prepared by Nextbillion Technology Pvt Ltd and is meant for sole use by the recipient and not for circulation. Zero interest. But if you miss paying on time, you will be charged interest (remember, you E2 80 99re borrowing mney). This interest is quite high much higher than a hme lon or car lon. Could be 1.to (per mnth) to start, cial situations, or needs of any particular investor and is oly intended for general information purposes oly. The information published should not And that means more merchant fees, more late fees, and more interest earned. That's about it it really is just that. The rewards are there to attract more people; to make everyone spend mony using crdit cards. The week that was and much more. Groww Digest Weekly 13 August 2023 Sensex: 65,721.25 0.66Nifty: 19,517.00 0.66 A woman called her cred it card company and ordered ice cubes. government has increased windfall tax on petroleum crude to Rs 4,250 per tonne from Rs 1,600 with effect from 1 Aug. + Jet fuel pice has been increased by 8 Groww Digest on Telegram: Clik hre to subcribe.years from tody, where do you want to live? -India -Abroad -Not sure ANSWER HRE Last week we asked: 6-Day-Course Theme of the week: NBFC Day 6 - Sunday Prce of commercial cooking gas has been reduced by Rs 99.75 . +India exported smartphones worth43 billon in the time period AprilMay. The US was the top destination. +India's fiscal deficit for April-June You pay Rs 1,000, you gt 1,000 reward points (example). These points can later be used for something else like buying movie tickets, getting discounts from specific course, there are those who are paying late fees, paying interest, or defaulting. Quick Takes + Russia is planning to cut oil exports by 3 lakh barrels perday in September. Rewards are ac ually easy to explain. The crediard companies want you to spend more moey. Remember, they ean oney from merchants. Every time you pay anywhere, they gt some mony from that. Thats a direct earning for them. be used as a substitute for any fom of an invstment advertisement, investent advice, or invesment information. Kindly note that investent in securities markets is subjct to market risks, read ll the related documents carefully before investing. The investor is requested to take into consideration al the risk factors before the commencement of trading. redit card companies are companies E2 80 93 they need to make prfits. So why are they willing to spend so much to plese their customers? The answer lies in their business model. Believe it or not, running a creit card com Sometimes these appeal to people. Sometimes they dont. In recent years, many start-ups have tried to enter the creditcard industry by launching metal crdit cards hoping that would appeal to people. A concierge sort of a personal assistant 93 is a common feature of ultra-premium crdit cards. You just cll your concierge and ask them. They try their best to gt something done fr you. there. By the way, rewards also work in different ways. Some cards give you reward points, some give cashback rewards, some give you miles (airlines), etc. No, you wn E2 80 99t be able to gt ice cubes delivered on a helicop could be much higher than that too. Merchant fees They colect some fees from the merchant wherever you pay. Say you paid for fuel at a petrol pump. A small percentage of that (commonly 1-) will go to the crdit cad company. gest is purely for knowledge. This Groww Digest does not contain any recomm endations or advice . T h at's it for ow. See you next week! Investing made simple Team Groww Digest Follow us yet? Our socia Question 3: From where do NBFCs gt most of their mney from Mutual funds -Hedge funds -Pension funds -Banks -Al above -None of the above You gt ll the benefits of a creditcard without having to pay anything for it. You are right. That exactly what everyone thinks. But that isnt what happens ll the time. Late payment and default A good number of people are late. 80 99s net subscribers rose by 30.3 lakh in May. Airtel added 13.28 lakh subscribers . Vodafone Idea lost 28.1 lakh subscribers. BSNL lost 14.7 lakh subscribers. + GST collection rose 11 to over Rs 1.65 lakh cr in July. Saudi Arabia has decided to extend its oil output cut of 10 lakh barrels perday till Septem Sometime later, a helicopter landed on the island E2 80 93 with a bag of ice cubes.(According to a report published in Daily Mail UK). Think about the details of this: she called her credt card company and asked for ice cubes on a ber. Net investent by Foreign Portfolio Investors (FPIs) in Indian stocks stood at 5.63 bilion in July: NSDL. +Growth of India's services sector ( Services PMI) stood at a 13-year high of 62.3 in July vs 58.5 in June. Nextbillion Technology Pvt. Ltd. - SEBI Regis tration no: INZ000301838, DPI Registration no: IN-DP-417-2019 and AMFI Regi stration No: ARN-111686 higher than last year. 53.67 lakh taxpayers filed returns for the first time. Franklin Templeton Mutual Fund mentioned that they have returned over redit card companies try to make even just the card itself desirable. Certa in creit cards are status symbols. The bst crdit cards in the world are made of metals and exotic materials like graphite. BFC Question 2: If ll of a bnk E2 80 99s customers want their mney back at the same time, what will happen? -Nothing. Everything will be fine -Bak will collapse ose a crdit limit a limit beyond which you cannot spend using the creditcard. But different creditcard companies want people to use their crdit cards. So they keep it easy to gt a nw creditcard. In the US, there are people who take one crdit card, spend using that, and they are not able to pay back. So they take another creditcard and spend using that. re not smart with their cedit cards. Most major banks have a crdit card program it is a gret business. There are even companies that are not banks but have crdit cards. Crdit cards are nw gaining popularity in card. She had a creditcard oly a few people in the world have. But this isn E2 80 99t a one-of case. Reservations in hotels and restaurants that ar They don E2 80 99t mind spending on rewards of different kinds because they will be able to make that moneyback through merchant fees. Plus theres also the fact that these rewards mean more people will want to own a creditcard. Yes, even the helicopter ice cube delivery makes sense magine the kind of moey such cardholders must spend. Problems with Crdit Card For people who lack discipline, the late fees and interest can add up fat. can t apply for them. Crdit card rewards are a different universe. There are blogs, social media handles, YouTube channels, newsletters dedicated to discussing the rewards offered by different cards. How The information contained in this e-mailer has not been prepared to take into account specific invesment objectives, finan Steel and coal production recorded a significant growth. +Growth in India's manufacturing sector (PMI) stood at 57.7 in July vs 57.8 in June, and 58.7 in May. +The them to court or using other methods. Most of this makes sense so far. But this still doesnt explain why companies ofer rewards; why they are willing to do outrageous things (like deliver ice cubes on a helicopter). Ultra-premium creditcard holders have made outlandish requests and have gotten what they asked for. Creit ard companies can go to extreme lengths to keep their customers happy. Beyond the perks, most c Import will ony be allowed against a valid licence for restricted imports. +UPI registered 996 cr transactions in July, up 6.vs June. Total transaction amount stood at Rs 15.34 lakh cr : NPCI. + Jio E2 pany is an excellent business. Interest rtes When you swipe your creit card and pay for something, you are effectively borrowing mony from the company. It is a lon. If you pay your crdit card bill on time, no probem. Or if you need help, we're hre for ou. Our registered office address: No.11, 80 Feet Road, 4 th Block, S.T Bed, Koramangala, Bangalore 560034, Karnataka ter using a regular crdit card. Wild perks like those come with cedit cards that are exclusive to very rich people. Such cards are invite-nly. You The crdit ard company might take its defaulting customer to court to resolve the matter. Or , they might sell this lan to a dbt collection agency. The agency might then try to recover the mney from the defaulter by taking l is a treasure box of finace content. Nextbillion Technology Pvt. Ltd. About Us | Tems & Conditions | Privacy Policy Mutual Fund investments are subjct to market risks, read al scheme related documents carefully. Past performnce of the schemes is neither an indicator nor a guaratee of future perforance. Do Credt rd Companies Work? ll such examples lead us to one question why? Why do crdit cards want to keep their customers so happy? C