HDFC Bank want their customers to opt for Email Statements. But why? The bank says it is more convenient for us (customers) and it supports the environment too. Oh yeah it supports the environment but they forgot to mention one thing. It increases their "Net Profit" as they save lakhs of rupees as postage. I have registered for Email Statements earlier and de-registered within no time. You know why? I’ve to pay them Rs. 100 each time I request the statement at the bank branch. I must say that "Banks are clever".

I’ll be happy to sign up for Email Statements if they provide the statements for free at their branch when the customer requests the same. What do you say?

I know lot of people that are hesitant to use their Credit Cards online due to the fear of fraud and misuse by hackers. Few of them would like to use a Credit Card but may not have one due to the income streams applied for getting a card. Some bank such as Bank Of Baroda offers Credit Cards without fulfilling basic salary limit but then you need to have a fixed deposit with them. Apart from that they would also ask for submitting final income proof. But then I recently came to know about HDFC Bank ForexPlus Card, when I called up customer care people to know whether I could use this card as a prepaid one they said they are doubtful about it. In addition, customer care person suggested to me use HDFC Bank NetSafe, although I was aware of the service I never tried the same but this time I wanted to.

I was excited to try this service and got registered with as the process; once the process was over I registered my HDFC Bank EasyShop Visa Debit Card with them and created a Virtual Credit Card. I could not believe it actually worked! Then the curiosity augmented and I wanted to test this card. So for the first time I tested the card to purchase a domain name from Netfirms and it worked! That was truly amazing and the process went on without any hassle and all you required doing is that set the card limit which is very important to make a purchase. Say for example, you need to buy stuffs worth 50$ then set the limit at a premium to current forex rates it’s an approximately about 3.5% extra. But I really suggest you to set the forex rate as Rs. 50/USD 1.

When NetSafe was newly launched it was accepting only Visa Debit and Credit Cards, however they now have MasterCard too. Not only that, it works amazingly for people that already use credit card for shopping. I feel it is an extremely good out if you are using cards online, why I say this is because when you buy some stuff online with your Credit Card using the foreign sites stores your credit card info in their database. For example, you buy a stuff online which has a recurring fee, then they would continue charging year on year or month on month without your permission. Yes, you could claim it back but then it a pain and you would certainly loose some % of your money in it as Forex Charges. Conversely, if you use NetSafe card it is a one time card only that simply means if you use this Virtual Credit Cards once it will not work next the company try charging you.

This is important – If you try using HDFC NetSafe card on some merchant it may not work. I have discovered two reasons for this:

1. If the merchant’s Credit Card processing is very powerful then they probably know that you are using a Virtual Credit Card and hence they will reject your card.

2. Credit Limit could be a problem with some site. For example, if you are need to buy things wroth $5 and you create a NetSafe card worth Rs. 250, but still the merchant’s Credit Card processing fails. This is because they are using a system which charges say $10 initially just to test your card and to make sure your card it a valid one. So in that case you need to set higher credit limits.

Google AdWords is the best example I could share with you. They charge only Rs. 60 as setup fee but you need to create a NetSafe card with a limit of Rs. 300 for signup else they will decline your card!

Steps to Get a Free Virtual Credit Card:

It is very easy to obtain a Free Virtual Credit Card via HDFC NetSafe card. Just go to HDFC Bank and open a savings bank account with them. It must be a regular savings account as you would be eligible to get a Visa Debit Card. Going with Visa Debit Card is a good option as it works with almost all online merchants. And then you need to pay annual fee of Rs. 100 plus the tax for the debit card/annum. That’s the only charge to maintain this amazing service. Make sure you maintain the minimum average quarterly balance of Rs. 5000 or Rs. 2500 for semi urban.

There is no other additional charge for using HDFC Bank NetSafe or HDFC Bank Regular Savings account, it is totally free, however the bank charges 3.5% of transaction amount, which is applicable for all banks and all cards – be it debit card, credit cards or virtual credit cards. It can make your life simpler as it is universal acceptance – there are no fees for using and creating NetSafe.

NetSafe, is a unique online payment solution that offers you complete security while shopping on the Internet. With NetSafe, you can now shop online through a virtual credit card, without revealing your actual HDFC Bank Credit Card number. What’s more, you can now use your HDFC Bank Debit Card also for online purchases.

The key benefits of NetSafe are as follows:

1. Your HDFC Bank credit / debit card number is never used on the merchant website

2. The NetSafe card you create is a one time use card

3. You can set your own limit for the NetSafe cards you generate

4. You can use it on any merchant website that accepts VISA/MasterCard cards

5. All purchases you make with NetSafe Cards will appear on your statement, just like any other transaction.

6. Registration for NetSafe is a onetime process after which you can generate NetSafe Cards anytime, anywhere.

The NetSafe Card is a virtual card that is generated through the NetSafe offering and can be used for shopping on the Internet. The NetSafe Card can be generated by logging onto the HDFC Bank website and can be used at any online shopping website that accepts VISA/MasterCard cards. Every NetSafe Card can be used for a single transaction only.

If you are using debit card, then your per day limit to generate virtual cards is 5 subject to your daily point of sale. This is possible only if there is sufficient balance in your current or savings account. If you are using credit card then is purely upon the credit limit available on your card. All purchases you make with NetSafe Cards would come with your statement, just like any other transaction. If there is any amount that you did not use it from NetSafe card it would be credited bank to your corresponding accounts. Any risk disclosure on NetSafe card is restricted to the chosen limit. So get registered with HDFC NetSafe and enjoy the secure online transaction now!

Source(s): HDFC Bank, HDFC Bank NetSafe Demo, HDFC Bank NetSafe FAQ

What is a Yield Curve?
Yield Curve is the graphical description of the relationship between yields on bonds of same credit quality but with different maturities. By having a look at the yield curve one can see what rates are being offered by bonds of the same credit quality of different maturities. There are 3 different types of yield curve shapes: 1) Normal or positively sloping yield curve. 2) Inverted yield curve. 3) Flat yield curve.

Type of Yield Curve
The shape of the yield curve is closely scrutinized because it helps to give an idea of future interest rate change and economic activity. Due to this historical correlation, the yield curve is often seen as an forecast of the turning points of the business cycle.

Normal Yield Curve
A normal yield curve is yield curve in which short-term debt instruments have a lower yield than long-term debt instruments of the same credit quality. This gives the yield curve an upward slope. This curve is also referred to as positive yield curve. This yield curve is considered normal because the market usually expects more compensation for greater risk. Longer-term bonds are exposed to more risks such as changes in interest rates and an increased exposure to potential defaults. Also, investing money for a long period of time means an investor is unable to use the money in other ways, so the investor is compensated for this through the time value of money component of the yield.

Inverted Yield Curve
An inverted yield curve occurs in an interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the same credit quality. This type of yield curve is the rarest of the three main curve types and is considered to be a predictor of economic recession. Partial inversion occurs when only some of the short-term Treasuries (One or five years) have higher yields than the Thirty year Treasuries do. An inverted yield curve is sometimes referred to as a negative yield curve. Historically, inversions of the yield curve have preceded many of the US recessions.

Flat Yield Curve
A flat yield curve is a yield curve in which there is little difference between short-term and long-term rates for bonds of the same credit quality. This type of yield curve is often seen during transitions between normal and inverted curves. When short- and long-term bonds are offering equivalent yields, there is usually little benefit in holding the longer-term instruments – that is, the investor does not gain any excess compensation for the risks associated with holding longer-term securities.

For the week ended 15th March’08 inflation numbers came in at a high of 6.68% as compared to 4.89% on 16th February’08. Inflation is the rate in change in the Wholesale price Index (WPI). The three major components of the WPI index are a) Primary Articles with a weightage of 22.02%, b) Fuel, Power, Light and Lubricants with a weightage of 14.23% and Manufactured products with a weightage of 63.75%.

Trends in WPI numbers and its constituents

The trend in inflation from March’07 to December’07 was that of easing. The main reason for the lower growth in inflation numbers was the lower rate of growth in manufacturing articles which has the highest weightage in the WPI. Lower fuel price inflation also was responsible for the slower growth in inflation numbers. However primary price articles contributed positively to inflation numbers. Since December’07 the fuel and power component of the WPI also led to a positive up tick in inflation numbers.

However since January’08 the manufacturing inflation has risen sharply which has resulted in a spurt in inflation numbers from 3.79% 05th January’08 to 6.68% for the week ending 15th March’08. On a week on week basis the sudden spurt in inflation numbers by 289bps is mainly due to the nearly 2% rise in the prices of manufacturing articles which has the highest weightage in the WPI. Primary article prices have been rising at a fast pace contributed by a rise in prices of food and non food articles. The fuel and power group have also started contributing to the inflation numbers as global crude oil prices have risen significantly resulting in prices of oil based products. As the impact of high crude prices was not fully passed on to the consumer, the contribution of the fuel and power group was lower than expected.

Going ahead, we expect inflation to continue to remain at higher levels for the next 1-2 months on the back of high commodity prices both agricultural and industrial. However various measures by the government like banning iron ore exports, reducing duties on edible oil and other agricultural prices could result in inflation numbers. Since the impact of these measures would take time to bring down commodity prices it would take a while before inflation numbers start showing a downward trend.