@Leisure - Vol-17 | srei
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@Leisure - Vol-17


Want to open a Swiss Bank Account:
6 things you should know

Switzerland is famous for its banking industry. Millionaires and billionaires from all corners of the world come to this alpine nation every year to benefit from the wealth management, investment banking and asset management services offered by its numerous financial institutions. But more importantly, they come to open a Swiss bank account. Before opening a Swiss bank account, you need to know certain things:

  1. Rules for opening a Swiss bank account
    Any adult can open an account with any currency: euros, dollars, pounds, etc. There are not too many rules regarding the opening of an account except that if the bank were to suspect that the money has been derived from illegal means, they can reject your application.
  2. Documents required
    To open an account, you will need: Passport copy, tax returns, proof of employment or business, proof of where the money you are depositing has been earned from, birth certificates, proof of residence, and any other contact information.
  3. Numbered accounts and the element of secrecy
    Numbered accounts offer maximum secrecy but are not easily given. The depositor has to be physically present while opening the account and has to provide an initial deposit of at least USD 100,000 and a further USD 300 to maintain the account every year.
  4. Accessing your money
    You access your money the way you do with any other bank account; using credit cards, cash withdrawals, travellers’ checks and bank transfers. If you have a numbered account then the element of secrecy will be lost every time you make a withdrawal as you will leave a trail.
  5. Selecting the right Swiss bank
    Most customers take their business to the big two - UBS and Credit Suisse, but you can choose from nearly 400 regional and private banks.
  6. The politics and the regulations
    Lastly, before you open a Swiss bank account, make sure that you actually want one. Nations across the world are coming down hard upon the Swiss to do away with their secrecy laws. But whatever the recent political and regulatory developments, thousands of millionaires and billionaires from across the world still continue to head towards those palatial buildings in the heart of magical hill towns to open a bank account.

Srei Advantage

How India’s economic revival is beneficial to Srei?

Indian economy appears well set on its path of recovery after going through a phase of cyclical downturn for the past few years. Macro indicators like inflation, Current Account Deficit, Fiscal deficit etc. have turned favourable setting the stage for softening of interest rates. This coupled with the policy and reform initiatives of the government is likely to set the economic activity rolling briskly. Given the deficiency of infrastructure in India and the government’s keenness to pump-prime the economy, this sector appears all set to buzz with activity. Many projects that have been stuck at the approval stage have now been activated and should start work in the immediate future.

Project financing mechanism

Promoters of infrastructure projects cannot be expected to bring this kind of money single handedly. These companies typically put in a part of the required capital, say 20%. This part is the equity component and reaps the profits (and even loss) of the project. The balance requirement of funds is provided by lenders like banks, financial institutions and even individuals through bonds and debentures. They get compensated with a specified rate of interest and are reasonably protected from the project risks.

Limitations to bank funding

Most businesses utilize bank financing for both capital expenditure and working capital needs. Infrastructure projects also utilize bank financing but there are limitations to this source of project funding. Some of them are:

  • Size and prudential limitations: Many infrastructure projects run into thousands of crores. Banks, due to availability constraints of funds and the need to limit their exposure to individual sectors and projects as a risk management measure, cannot provide this kind of money. Sometimes they form a syndicate to fund such projects.
  • Long gestation: Infrastructure projects extend to decades for completion and eventual recovery of capital. Banks, which depend on deposits of few years’ tenor, cannot afford to wait so long to get their money back.
  • Higher interest rates: Since banks take money from depositors at an interest rate over which they have to add their costs and profits, the cost to the borrower works out relatively higher.

Project financing by Srei
Srei FinancingThis scenario is effectively advantageous to Srei. Being a dedicated infrastructure financier, we provide specialized financing solutions to our clients which include advice and of course tailor made funding solutions covering debt, equity and mezzanine capital. Srei’s unique package of fund and non-fund facilities sets it apart from its competitors. Client specific solutions like leasing, receivables discounting, deferred payment agreements etc. provide flexibility to its customers in the various business sectors. Professional competence in credit appraisal, risk management, collection management and creative marketing activities lend Srei enviable business strength. With a wide presence across India and a team of experts taking care of each customer’s unique financing needs, Srei is well placed to reap the benefits of the recovering Indian economy. Srei presently manages Rs 35,241 Crores of Consolidated Assets as on March 31, 2015. Srei Group has a PAN India presence with a network of 99 offices.


Rupee One Note Makes a Comeback!

Recently, Government of India announced the re-launch of the Rupee 1 note after a gap of 20 years since it had stopped being printed. The decision to reissue this note is very interesting for a variety of reasons. 

It is the only note that is issued by the Central Government, and signed by the Finance Secretary, of the Ministry of Finance. Whereas all other currency notes in India are issued by the Reserve Bank of India (RBI) and signed by the central bank governor himself.

The Rupee 1 note was first introduced by the British in 1940 as a war-time measure during World War II. The Rupee 1 note was issued under the currency ordinance of 1940 with the status of a coin, and the minting of coins was the responsibility of the central government; Rupee 1 note is the liability of the Central Government as well.

In 1994, the note was discontinued and replaced with coins, as the cost for printing, maintenance and replacement of the notes was very expensive.

The Rupee 1 note, which will utilize a combination of pink and green colour, will be entirely made of recyclable cotton rag. As with the earlier Rupee 1 notes, it will not have Mahatma Gandhi's picture, but will have the 'Ashoka Pillar' instead, with the word 'Bharat' written vertically on the side, in a hidden manner, which will be visible when the note is viewed against light.

The Finance Secretary, Mr Rajiv Mehrishi released the note at the famous Shrinathji temple in Nathdwara, Rajasthan. These currency notes are legal tender as provided in The Coinage Act, 2011. Even after the launch of these notes, the coins and old notes of the same denomination will continue to be legal tender. Government of India, or RBI, haven't officially announced any reasons for reintroduction of the note. However, a possible reason can be the often experienced shortage of coins, caused by illegal melting of coins due to their metallic worth being higher than their denomination value.


Buddy Jokes

1. We live by a Golden Rule – ‘Rules are made by the one who have the gold’

2. Money is the opposite of the weather. Nobody talks about it, but everybody does something about it.– Rebecca Johnson

3. In this world nothing can be said to be certain, expect death and taxes. - Benjamin Franklin


Buddy Quiz

Fill in the blanks

1. ________ is the only note that is issued by Central Government, and signed by the Finance Secretary, of the Ministry of Finance.

  1. Rupee 100
  2. Rupee 10
  3. Rupee 1


2. The Rupee 1 note was first introduced by the British in ______ as a war-time measure during World War II.

  1. 1949
  2. 1940
  3. 1952


3. The Initial deposit to open a Swiss Bank account is at least ___________

  1. USD 100,000
  2. USD 150,000
  3. USD 200,000


4. Infrastructure projects by nature are _______ intensive, running into hundreds or even thousands of crores.

  1. Capital
  2. Goods
  3. Labour


5. The Finance Secretary, Mr Rajiv Mehrishi released the note at the famous ______________.

  1. Vaishno Devi Mandir, Jammu Kashmir
  2. Shrinathji temple in Nathdwara, Rajasthan
  3. Badrinath Temple, Uttarakhand


Answers: 1. (c); 2. (b); 3. (a); 4. (a); 5. (b).