Dhanlaxmi Bank will provide electronic payment services to the corporation using NEFT mode to credit funds to the policyholders' bank accounts
Private sector lender Dhanlaxmi Bank said it has signed a memorandum of understanding (MoU) with Life Insurance Corporation of India (LIC) to facilitate policy-holders to receive policy payments through electronic funds transfer.
As per the agreement, the bank will provide electronic payment services to the corporation using national electronic funds transfer (NEFT) mode to credit funds to the policyholders' bank accounts, a statement issued here said.
"LIC's decision to tie-up with Dhanlaxmi Bank highlights the bank's advancement in terms of technology, transaction processing systems and its superior delivery mechanisms. With this tie-up, LIC policyholders can expect immediate disbursal of payments in a convenient and secure environment," the bank's Head, Cash Management Service Sales Group Sidhartha Routray said.
This move will not only benefit customers of the bank who hold LIC policies but also said LIC policyholders having accounts with other banks, he said.
"Instead of the customary process of LIC sending the cheques through postal services and customers depositing in their bank accounts, e-payment will now happen within 24 hours," Routray added.
With this tie up, customers can pay their monthly instalments for Nathella’s “zero% purchase plan” and save gold at their nearest post office
India Post and Nathella Sampathu Chetty Jewellers have signed a memorandum of understanding to facilitate investment in gold saving scheme for people of Chennai.
With this tie up, customers can pay their monthly instalments for Nathella’s “zero% purchase plan” and save gold at their nearest post office. The payments will be accepted in cash and a receipt will be issued in a similar way as it is done at the Nathella Showrooms. The monthly installments need to be in multiples of Rs1000.
Prapanna Kumar, managing director, Nathella Jewellery said, “We have joined hands with 106 post offices across Chennai to reach out to our potential customers. This initiative is a part of our Customer Centric program to make it convenient for our clients to pay their monthly instalments for the “zero% purchase plan” and ensuring that their target of saving in gold is met. We are planning to expand our tie up with more post offices branches in Chennai and extend this service to Vellore &Hosur to make savings easier and accessible.”
“The added benefit for our saving scheme customers is that they need not pay for the wastages and making charges while purchasing gold jewellery which will certainly enrich their shopping experience,” added Prapanna.
Neville Tuli, chief advisor of the fund, explained that many buyers, who had promised to buy art at preset prices in 2007-08 refused to pay those prices in 2009 when redemption demanded it. Besides, banks also refused to led to the fund, leading to the failure in redemption
After much delay in the final payout and lack of clarity over the final redemption, Osian Art Fund has once again ambiguously stated that the payments will be soon completed. Neville Tuli, chief advisor of the fund, who according to the unit-holders was evading questions, has for the first time explained the reason for failure of his fund and timely redemption.
Recently, Osian’s announced that it plans to hold an auction on 15th December in Delhi, a decision which has irked many investors. Neville Tuli has invited all for an auction preview for ‘Creative India Series I- Bengal’, which features paintings from the colonial era. The auction will be held at The Imperial, Janpath, New Delhi.
Mr Tuli, through an essay named ‘A Note on the Osian’s Art Fund’ in the Auction Catalogue, has explained in length about the fund’s failure. The Art Fund, a three-year closed-ended fund launched in 2006, ran into trouble after it declared Net Assets Value (NAV) but when investors tried to redeem the money, it was not possible.
According to the Mr Tuli, many buyers, “who had promised to buy art at preset prices in 2007-08 (upon which the ongoing NAV was based) refused to pay those prices in 2009 when redemption demanded it, as by then the prices had fallen by more than 50%-60% of the agreed value, but more importantly confidence was at an all-time low and liquidity at an exceptional premium.”
He explained that the assumption that art would be sold at a discount of 20%-30%, compared to earlier sales, proved wrong. “…as the art would not sell at any price, given a relatively large amount of absolute value was required to be sold. The cash liquidity just did not exist even at a junk value discount.”
The fund, instead of writing down the NAV to 54.65, decided that Osian’s – Connoisseurs of Art, who is the asset manager, could cover defaults to protect the unit- holders’ capital. The NAV of 54.65, according to the fund, “could have been the value if the defaults had been accepted and sales made at whatever prices.”
Accordingly, various banks were approached to lend to the fund, so that the unit-holders would be paid in three to four years. Few banks, agreed to lend and on that promise, in December 2009, the NAV was kept at 111.72. 85% of the capital was to be paid to all unit-holders. However, three months later the banks refused to lend.
Till date many of the investors have not been repaid and have demanded that the forthcoming auction, where investors are allowed to participate on their choice, be blocked unless they are paid in full.
Meanwhile Osianama—a grand museum of art, culture, cinema and architecture, and Mr Tuli’s dream project—will be completed in 2012. Mr Tuli had bought the plot where Mumbai famous Minerva Theatre used to stand for Osianama, but the deal got delayed when Osian’s ran into trouble with the civic authorities.
Osianama will be completed next year. However, Mumbai Mirror, a tabloid reported that the project has been shelved and is moving to Delhi due to the legal battle over the land, which Mr Tuli purchased from the original owner, film producer FC Mehra in 2006.
Mr Tuli says that, “we have been totally committed to closing the Fund, and whatever the costs, this will happen very soon.”