Banks with APIs are offering enhanced experience. Many fintech firms appreciate API and the ground-breaking effectiveness it entails. They also have implemented this third-party communication method, which helps in:
Centralising consumer data
Improving security
Quickening development
Better scalability
This one tool is modernising the banking system globally and in India. To understand what is API banking and how it benefits the banking system, read on.
What is API Banking?
The API full form in banking is Application Programming Interfaces. This is a technology that bridges the client with their banks. Designed with a combination of rules and protocols to prioritise interactions optimally, APIs help consumers access banking services more conveniently.
How API Works
Here are some aspects of how API banking helps consumers.
Easy Updates: Banks with APIs update individual components of their systems without affecting the entire infrastructure.
Isolated Changes: APIs ensure that the overall system remains stable and reliable, even during periods of development or maintenance.
Seamless Integration: They provide a standardised way for different systems to interact, making it easier to integrate new services or applications.
Small Improvements: APIs enable banks to implement small, incremental improvements to their systems, which is a less risky approach than large-scale overhauls.
Types of APIs
There are majorly four types of APIs. Every kind of API offers a specific usage, the details of which you can find below:
Public API: This is a third-party tool used for smoother interactions
Private API: It ensures security and optimises organisational tasks
Composite API: This type of API enhances performance and ensures speed
Partner API: This is a communicative device between developers and financial organisations
Benefits of API Banking
There are several significant advantages of using API in banking systems, such as:
Banks with APIs show real-time access to transactions
They offer better traffic to the banking institution
APIs hasten consumer data access
They simplify access to multiple applications and prompts
They enhance connectivity between transactional and financial accounts
APIs provide better security with diversified ways to develop an app
While API banking is a comprehensive way to approach a customer, open banking is another technological advancement changing the financial ecosystem. Open banking is a concept that allows you to share certain financial information within banks. Check out how APIs in banking and open banking differ from each other:
Parameters
Open Banking
API Banking
Aids
Tailors investment plansReal-time updatesPrice comparisonsSaving NotificationsTips on budget
Core Banking System (CBS)Customer onboardingPayment InfrastructureCustomer engagement support
Benefits
Better reimbursementEclectic borrowing optionsFlexibility of your financesBetter business opportunities
The power of API banking means seamless integration of banking services into your everyday life. For instance, leveraging India Stack, the largest API in the world, Fibe fast-tracks the loan disbursement process.
Once you apply for a Fibe Instant Personal Loan, you can get up to ₹5 lakhs at an affordable interest rate. The repayment tenure is also flexible, as you can repay your loan within 3 to 36 months. You can be debt-free earlier with zero foreclosure charges. Download our Personal Loan App or register on our website to get started.
FAQs on API Banking
Are there any additional fees for using API banking services?
Typically, customers do not have to pay additional charges directly to utilise API for different banking services.
Can I use the API for international transactions?
Yes, APIs connect financial institutions across borders, making it easier for customers to make quicker international payments.
How do I ensure that my API integration is scalable?
To ensure that API integration is scalable, you can:
Implement caching mechanisms
Utilise rate limiting
Leverage cloud services
Conduct thorough testing to handle increasing traffic and diverse usage scenarios
How do I report security vulnerabilities or issues with the API?
You can find several tools online that will scan and identify any common vulnerabilities. You need to review your code and monitor your API before there are any potential threats.
This article explains what fuel surcharge waiver means on a credit card, how the waiver process works in practice, and what conditions determine whether a transaction qualifies. It also compares 5 credit cards with fuel surcharge waiver benefits and shows how to get the most out of the feature.
Every time you pay for petrol or diesel with a credit card, there is a small extra charge sitting quietly on your bill. Most people do not notice it. But if you fill up every week, that charge adds quietly over a year. That is what a fuel surcharge is. And a fuel surcharge waiver is simply your credit card reversing it. Here is how the whole thing works and why it matters more than you think.
What is a Fuel Surcharge on a Credit Card?
Petrol pumps in India charge a small processing fee when you pay by card. Call it a convenience fee, a processing charge whatever the label is, it lands on your bill as a fuel surcharge. It typically sits between 1% and 3% of the transaction value. Not enormous on its own. But add it up across a month of weekly refueling and it starts to look like a real number.
QUICK STAT
A 1% surcharge on ₹4,000 of monthly fuel spend adds up to ₹480 over a year — enough to notice on an annual card fee comparison. Source: Illustrative calculation
Fuel Purchase Amount
Surcharge at 1%
Total Charged
₹1,000
₹10
₹1,010
₹2,500
₹25
₹2,525
₹4,000
₹40
₹4,040
What is a Fuel Surcharge Waiver?
A fuel surcharge waiver is exactly what the name says — your card issuer gives that charge back to you. It either does not apply in the first place, or the amount is reversed on your statement. Let us say you fill up for ₹2,000. A 1% surcharge adds ₹20 to your bill. If your credit card has a fuel surcharge waiver and the transaction qualifies, that ₹20 comes back. You effectively paid only for the fuel.
How Does the Fuel Surcharge Waiver Actually Work?
Most people assume they need to do something to trigger the waiver. They do not. The process is automatic.
You pay for fuel at a petrol pump using your credit card
The surcharge gets added by the merchant
Your card issuer checks the transaction; is the amount within range? Is the merchant code correct? Have you hit your monthly cap?
If everything checks out, the surcharge is reversed — either instantly or later in the billing cycle
Net surcharge paid: zero
PRO TIP
You do not need to raise a request for the waiver. It applies automatically when the transaction meets the card’s conditions.
Eligibility Conditions You Should Know
Here is where a lot of people get caught. The waiver does not apply to every fuel transaction by default. Your card has its own rules.
Condition
What It Means
Minimum transaction amount
Fuel purchase may need to be ₹400 or ₹500 minimum
Maximum transaction cap
Waiver may only apply up to ₹5,000 per transaction
Monthly waiver limit
There is usually a ceiling on total waiver per billing cycle
Eligible fuel stations
Some cards restrict to HPCL, IOCL or other partner pumps
Merchant category code
Transaction must be coded as a fuel purchase by the pump
Exclusions
Wallet top-ups, cash withdrawals, non-fuel purchases at pumps do not qualify
WATCH OUT
If you are not sure about your card’s specific rules, check the MITC document or call customer support. It takes two minutes and saves confusion later.
Benefits of a Fuel Surcharge Waiver Credit Card
The obvious benefit is saving itself. Regular commuters like officegoers, sales professionals, families with cars, delivery riders — all pay fuel surcharges multiple times a month. A waiver removes that ongoing cost. Beyond that, there are a few other advantages worth noting. You avoid carrying cash to fuel stations, which is genuinely useful late at night or at highway pumps. Some fuel credit cards also stack rewards on top of the waiver — cashback, reward points, or fuel points you can redeem later. And if your card has a low or zero annual fee, the maths becomes straightforward: the waiver alone may save you more than the card costs you annually.
DID YOU KNOW?
The practical test: think about how much you spend on fuel in a month. If it is ₹3,000 to ₹5,000, a 1% waiver saves you ₹360 to ₹600 a year. Does your card’s annual fee exceed that?
Five Credit Cards with Fuel Surcharge Waiver Benefits
Here is a quick comparison. Fees and offers change, so always confirm the latest details directly with the issuer before applying.
3% cashback on dining, entertainment, local commute; complimentary lounge visits
No joining fee, no annual fee
IndianOil Citi Titanium Card
1% waiver at IndianOil outlets
Turbo Points on IOCL fuel spends, redeemable for fuel
Check latest fee schedule — Citi cards have transitioned to Axis Bank
IndianOil HDFC Bank Credit Card
1% waiver at IOCL stations
Fuel Points on all spends, redeemable for fuel
Joining and annual fees may apply; fee waiver on eligible spends
ICICI Bank HPCL Coral Credit Card
1% waiver at HPCL pumps
Cashback and rewards on HPCL fuel spends
Joining and annual fees may apply; annual waiver on spend criteria
Standard Chartered Super Value Titanium
Waiver on eligible fuel spends
Cashback on fuel and selected categories
Annual fee may apply; waiver on meeting annual spend
How to Get the Most Out of Your Fuel Surcharge Waiver?
Getting the card is the only first step. Here is where most cardholders leave money on the table.
Use partner pumps if your card specifies them. A waiver restricted to HPCL or IOCL means nothing if you always fill up elsewhere.
Keep transactions within the eligible range. If the waiver applies between ₹400 and ₹5,000, and you usually spend ₹6,000, check whether splitting is possible — though confirm first with the pump and your card issuer.
Watch the monthly cap. Once you hit the maximum, the rest of that billing cycle’s fuel purchases carry the surcharge as normal. Knowing your cap lets you decide when to switch to a different payment method.
Look at the full card value, not just fuel. A card saving you ₹500 per year on fuel but ₹2,000 in dining and commute cashback is a far better deal. Evaluate total benefit.
Check your statement monthly. Waivers appear as credit entries. If one that should have applied is missing, contact your issuer with the date, amount and pump location.
Checklist Before You Apply for a Fuel Waiver Card
What is the waiver percentage?
What is the minimum transaction amount for eligibility?
What is the maximum transaction amount covered by the waiver?
Is there a monthly cap, and how much is it?
Does the waiver apply at all pumps or only partner networks?
What are the joining and annual fees?
Does the card offer cashback or rewards on other everyday spend categories?
Will you use the card consistently enough for savings to outweigh the fees?
Why Look at the Fibe Axis Bank Credit Card?
If you want everyday credit card value alongside fuel savings, the Fibe Axis Bank Credit Card is worth a look. It offers a 1% fuel surcharge waiver on transactions between ₹400 and ₹5,000. On top of that, 3% cashback applies to dining, entertainment and local commute — categories most urban cardholders spend across every week. There are no joining fee and no annual fee. The card is numberless, keeping your card details off the physical card and inside a secured app environment. It also supports UPI linking for quick digital payments. For someone who refuels regularly and wants a card that earns on daily spending categories, it covers a lot of ground without any fee overhead.
FAQs On Fuel Surcharge Waiver in Credit Cards
1. What does fuel surcharge waiver mean on a credit card statement?
It means the surcharge your credit card issuer waived or reversed on an eligible fuel transaction. It typically appears as a credit entry on your statement, offsetting the surcharge that was initially charged at the petrol pump.
2. How is fuel surcharge calculated on a credit card?
The surcharge is a percentage — usually 1% to 3% — of the fuel transaction amount. So on a ₹2,000 fill-up with a 1% surcharge, you would be charged ₹20 extra. If your card’s waiver applies to that transaction, ₹20 gets reversed.
3. Is the fuel surcharge waiver available at every petrol pump in India?
Not always. Some cards extend the waiver to any fuel station. Others restrict it to partner networks like HPCL or IOCL. Check your card’s specific terms — this one detail can affect whether you actually benefit from the feature.
4. Is there a monthly limit on how much surcharge can be waived?
Yes, most cards set a monthly ceiling. Once you reach it during a billing cycle, additional fuel transactions will carry the surcharge as normal. The cap varies by card and is typically mentioned in the MITC or product terms.
5. What happens if the waiver was not applied even though I meet the conditions?
Contact your card issuer’s customer support. Keep the transaction date, amount and fuel station details handy. If you met the waiver conditions and it was not applied, most issuers can investigate and reverse the charge.
6. Can I transfer fuel surcharge waiver benefits to another card?
No. The benefit is tied to the specific credit card it is issued with. It cannot be transferred to another card account.
7. Does the fuel surcharge waiver apply to wallet recharges at petrol pumps?
Generally, no. Wallet top-ups made at petrol pump outlets are not classified as fuel purchases and typically do not qualify for the surcharge waiver. Only direct fuel transactions at the pump are eligible.
Completing a contactless transaction when paying for any goods or services can be a safer way to go about it. This was popularised after the pandemic and includes the usage of credit and debit cards during payment offline, allowing you to pay without any physical contact.
There are many options to make effortless payments through your smartphone. It has become the new norm today, yet many are unaware of its full potential. By having a better understanding of how this works, you can make payments without any hassle.
Brief Introduction to Contactless Payments
It is a safe and secure method of making payments without cash. You can use your chip-enabled cards, such as credit and debit cards, for payment. While making a contactless payment, you can tap or wave your card over the card reader.
You can make payments faster without providing your PIN using such payment methods. This can enhance your checkout speed while paying toll tax, paying for parking and more. Due to an increase in the adoption of contactless payments, the RBI has increased the payment limit transactions from ₹2,000 to ₹5,000 without the need for a PIN.
Benefits to Keep in Mind
It is commonly misunderstood that contactless payments may pose a security threat, revealing the card’s information. The truth is that it is difficult for unauthorised logins as the card’s data is encrypted. This offers you more safety in carrying out such payments.
Fraudsters can steal your information from your magnetic chip by cloning it but tapping your card protects you against handing over your card. Additionally, swiping a card manually and entering your card details is a hassle and increases the risk of fraud. Thus, contactless transactions can cut down the processing time while ensuring better protection.
Another benefit of such payments is that you also pay using your smartphone or mobile. This is extremely beneficial when you want to make an urgent payment but forget your card at home. This involves using your UPI ID and an app that is connected to your bank account. You only have to scan the QR code using your smartphone and complete the transaction by entering the OTP or PIN on your own device.
Non-UPI contactless payments use radio frequency identification technology embedded in a card’s microchip. This makes the process successful without needing the personal identification number. When you hold the card near the point-of-sale terminals, the merchant identifies this with a special symbol.
The symbol resembles a wifi logo. Holding the card near the terminal transmits information electronically from the card to the bank. After accepting the tap, it signals success with a beep or light. The bank analyses the transaction and upon approval, the transaction is completed.
How to Set It Up on a Smartphone?
Now that you know the process and meaning of contactless transactions, you can use this facility smartly. To get going, you can set it up on your smartphone. This one-time set-up will enable you to access quick and safe transactions with just a tap. Follow the steps to set tap-and-pay on your smartphone:
Step 1: Log in to your official net banking account or mobile application
Contactless payments offer flexibility and security and may bring even more innovation to the fore in the near future. Today, you can combine the comfort of using credit cards with the safety and security of mobile phones via UPI.
If you’re looking for a credit card that offers such convenience, the Fibe Axis Bank Credit Card can be a smart choice. It is India’s first numberless credit card that links to your UPI ID, so you can scan and pay in seconds.
What’s more, you earn a flat 3% cashback on entertainment, local commutes and food. Get complimentary domestic lounge access and fuel surcharge waiver discounts with this credit card, too. Download the Fibe App or register on our website to get the Fibe Axis Bank Credit Card today!
FAQs on Contactless Payments
Are there limits to contactless payment transactions?
Yes, there is a limit of ₹5,000 on contactless transactions without using a PIN. For a higher amount, you need to provide your PIN.
What should I do if a contactless payment fails?
If your contactless payment fails, try a UPI app that is linked to your bank account. You can also get in touch with the financial company whose card you are using.
How do I deactivate contactless payments on my card?
You can deactivate it on your card by logging into your account and turning off the functionality.
Can I use my contactless payment card with a damaged chip?
No, you cannot use your card for contactless transactions with a damaged chip.
Wondering how you can pay rent with a credit card? Paying for recurring expenses without any hassle of remembering the due dates is among many attractive features of using credit cards. You can pay the monthly amount directly to your landlord’s account using a credit card.
Apart from the convenience, there are several other benefits attached to the payment process. By understanding the process properly, you can take maximum advantage of using a credit card to pay rent.
Advantages of Rent Payment With a Credit Card
Amongst the other responsibilities, certain routine payments may get overlooked due to your busy lifestyle. You can enjoy stress-free home rent payments by setting a standing instruction for rent payments. Here are a few added benefits:
Utilising the Grace Period: You can make use of the interest-free period of 45-60 days and repay the dues over an extended period. It can be most helpful in case of emergencies, as you can use the grace period as a financial buffer. This flexibility helps you allocate funds towards other liabilities for the month during a cash crunch.
Earning Rewards: By paying rent with your card, you can earn reward points, cashback and discounts. Ensure you select a credit card that provides a lucrative reward system on bill payments. That way, you can save more while paying the rent.
Making Use of Automatic Payments: By using the auto-debit facility for rent, you provide standing instructions on your credit card to make rent payments on a particular date every month. This ensures seamless deductions and eliminates any chance of missing your payment date.
Earning Welcome Bonus: Many issuers provide a sign-up bonus when you get the card. You can access the bonus by spending a specific amount in a certain amount of time. By paying rent using your card, you can cover a large amount of the required threshold. That way, you can earn the sign-up bonus without overspending.
Getting a Statement as Proof: You receive a statement showcasing your payment. This can act as proof of rent payment should you need to send it to your landlord. In addition, paying your rent this way also enhances your credit score. This is because timely payments are recorded in your credit history and reflect positively in your records.
How to Pay Rent Using a Credit Card?
By following the needed steps, you can ensure a smooth payment procedure:
Step 1: Confirm with your landlord whether they’re accepting rent payments via credit card
Step 2: Choose a secure and safe platform to pay rent, create an account by providing your details and link your credit card
Step 3: Set the necessary details like due date, amount and landlord’s details
Step 4: Check the details and confirm the payment
It is crucial to note that some third-party platforms may charge transaction or processing fees. Despite the convenience, this may outweigh the related benefits. Check this before proceeding with such an option. Besides that, you should keep an eye on your credit limit for other expenses, as there is a chance of maxing out. This can have an adverse effect on your credit score.
As of 2024, many credit card companies have stopped offering rewards on rent payments. This is also due to the fact that the Reserve Bank of India has expressed its concerns about payments between two individuals rather than an individual and a verified merchant. Such payments may be misused, which is why this facility may soon be banned.
While it is still allowed, knowing how to pay rent using a credit card can help you during a difficult time or increase your convenience. You can also use your credit card for various other payments, such as electricity bills, phone bills and more. The Fibe Axis Bank Credit Card can be an excellent choice for such recurring payments with an interest-free period of up to 50 days.
You can also enjoy hassle-free UPI payment and other benefits like a 1% waiver of fuel surcharge and free access to domestic airport lounges. Download the Fibe App or register on our website to apply for this credit card and enjoy its benefits without any annual and joining fees!
FAQs on Rent Payment Using Credit Cards
Can I earn reward points or cashback when paying rent with a credit card?
As of 2024, most financial institutions have discontinued reward points or cashback if you use a credit card to pay rent. However, you may be able to access benefits if you use certain third-party platforms or certain cards.
Are there any limits on the amount I can pay with a credit card?
Yes, you can only make transactions within your credit card’s credit limit as well as the limit the issuer has set on rental payments, if any.
Is it safe to pay rent with a credit card?
Yes, it is safe to pay rent with a credit card. The transaction also gets recorded in the card statement that you receive at the end of the month.
Are there any specific credit cards that offer better benefits for rent payments?
Since the features are updated often, check the benefits related to rent payments by reading the MITC document on credit cards.
How does paying rent with a credit card impact my credit card balance and utilisation?
When you make any transaction using your card, including rent payments, your credit limit is reduced by the corresponding amount. Therefore, you can only use your card up to the remaining credit limit for that particular cycle. Similarly, depending on your credit limit and rent amount, your credit utilisation ratio may also increase.
To find the best option for investment as a beginner, build your knowledge base and understand your risk appetite. For the best results, strive to strike a balance between secure investments and diversification. Depending on your investment horizon and risk appetite, you can consider a wide variety of instruments available in India.
As a beginner, you will require a dynamic strategy based on your ever-evolving financial aims and circumstances.
Top Investment Options in India:
Real Estate
It is one of the best option for investment and the most popular choice offering growth and wealth-building opportunities. It is a trusted choice as it has given stunning returns over the years. There are numerous options available to you, such as:
Investing through REITs
Buying a commercial property
Investing in a residential property
While there is no minimum limit or maximum cap, remember that you may need a large sum for the initial investment. Returns may vary depending on the market value and location. Like every investment option, it has its own set of risks and drawbacks.
For one, it’s difficult to liquidate by finding the right buyer and selling the property. In case of a rush, you may have to sell it at a highly discounted value. Nevertheless, in most cases, it gives some of the best returns on investment.
National Pension Fund
This is a contribution scheme which works both as a savings and a retirement fund. It is market-linked, has gained more demand over the years and is recommended among top investment options today. The government is adding improved features and benefits to encourage more investors, making it a lucrative option.
It offers you:
Tax benefits
Regular pension income
You can choose where you want to allocate your assets. However, it is crucial to note that in NPS, the maximum equity allocation can be 75% by the age of 50 years and it has a lock-in period.
To encourage more investment in sovereign bonds, the Government of India offers direct purchase of bonds to investors. Both state and central governments issue these bonds.
The bonds issued by the state government are state development loans
The bonds issued by the central government are referred to as G-sec or simply government bonds
Yon needs a bank account and a demat account to hold a government bond, similar to any other investment. If you are looking for a relatively secure and best option for investment, consider this.
You can also invest in government securities through mutual funds. The maturity period can be three years or more, depending on the offering. Taxation on government bonds works based on your income bracket and applies to the interest-generated bond. It has a fixed return throughout the bond’s life cycle till the maturity period. All these factors make it one of the best options to invest in India.
To access this kind of investment, you don’t need to buy physical gold as an underlying asset. If you are looking for an investment with higher returns, this may be the ideal one for you. It is issued by the RBI at regular intervals through both public and private sector banks. You can also invest using your demat account. It has a maturity period of 8 years.
For individual investment, you can invest up to the price of 4 kgs of gold. Interest earned on SGBs is taxable, whereas the maturity amount is exempt from taxation. It has low to medium risk, making it one of the best options to invest in India.
Considering the increasing inflation rate, choosing an investment with higher returns can be a smart choice. Investing is built on a bedrock of savings, which you can boost through a smart financial tool like the Fibe Axis Bank Credit Card. It is India’s first numberless credit card and gives you Enjoy 3% cashback on your transactions.
It also links to your UPI ID, so it gives better security against credit card fraud and identity theft.
You can get access to domestic airport lounges and fuel surcharge waiver discounts, too. Download the Fibe App or register on our website to get the Fibe Axis Bank Credit Card today!
FAQs on Top Investment Options for Beginners
What are the risks associated with beginner investments?
For beginners, choosing the best ROI investments can be difficult. It is with experience and knowledge that you can build a successful and profitable investment portfolio. Some of the risks you may face are losing your capital, letting your emotions get in the way of long-term investments and pursuing trends without understanding market dynamics.
Should I invest in stocks or mutual funds as a beginner?
It may be more appropriate to invest in equity mutual funds as a beginner since the fund manager has experience in allocating your investment to the right stocks and sectors.
Should I diversify my investment portfolio as a beginner?
Yes, you can diversify your portfolio in terms of maturity period, tax savings, risk exposure and other factors and get the best returns for investment.
When it comes to convenience in financial services, both mobile banking and online banking play a vital role in offering instant access and data. While online banking has been around for longer, mobile banking is relatively new. Both options provide access to financial services but have their separate advantages.
Many financial institutions offer both services to add more value to your banking experience. By understanding the similarities and differences between online banking and internet banking you can decide what to use and when.
Digital Banking Vs Mobile Banking
Using both, you can access numerous services from the comfort of your home or on the go. This includes:
Checking account balance
Paying credit card bills
Paying loan EMIs
Tracking credit card due amount and date
Setting up your mutual fund investment
Booking a fixed deposit
Checking the transaction history of credit card or account
The list goes on. To enjoy both, internet banking and mobile banking facilities, you need to log into your account with your customer ID and password. These credentials are a must every time you log in. However, you can set up a login PIN for mobile banking to save time and gain access faster and more conveniently.
Benefits of These Facilities
Here are some factors that you can consider when comparing the benefits of these two banking options.
Convenience
Both facilities require an internet connection to function. However, in the case of Internet banking, you need a laptop or PC. While you can use a smartphone, the experience may not be fully optimised for it. Via mobile banking, you can conduct financial transactions through your mobile phone with ease.
Many financial institutions have come up with an SMS feature that you can use to avail some features of mobile banking. Hence, you can conduct a few activities even without the internet. This can be helpful during travelling or if you are in a region where internet access may be impaired.
Safety
Both services have their own security measures. In the case of internet banking, the financial institution provides you with:
Username
Password
You may need one-time passwords or security tokens for added safety. In mobile banking, the authentication needs vary depending on the financial institution and what you set up using your smartphone. This may require:
PIN
Two-factor authentication
Biometric scans
Functionality
Mobile banking started off by offering basic facilities like:
Shop for electronics, book tickets and more using points or your cards
Track your spending and use budgeting tools
Get help via chatbots or customer support teams
Complain, send feedback or contact grievance redressal systems
Internet banking portals also offer the same or similar services, depending on the financial institution.
Notifications
Similar to any other application on your phone, a mobile banking app sends push notifications to you. Through these, you can get amazing deals and offers from the financial institution. You can also track purchases, account activity and more.
Online banking doesn’t have this feature. You can check the ongoing deals and offers by logging in to your banking account. This is one of the major differences between online banking and internet banking.
User Experience
Online banking is dependent on the Internet service and every website varies depending on the financial institution. In the case of mobile banking, the application is focused on optimising the interface for a better user. It may also help you find the services you need quicker than websites.
Accessibility
You can use any browser on your PC or laptop to access the Internet banking of your financial institution. Most of the features of mobile banking can only be used via a mobile app. You can download the app depending on what kind of device you use, iOS or Android.
You can choose any option between mobile banking and online banking depending on your financial needs and lifestyle. No matter which one you choose, if you see your account balance as insufficient for big-ticket expenses, get a Fibe cash loan.
We offer up to ₹5 lakhs with nominal paperwork and affordable interest rates. With no end-use restrictions, you can use the funds without giving any explanations. Enjoy a flexible tenure of up to 36 months with the option to pre-close the loan without any penalties. Register on our website or download the Fibe App now and get started!
FAQs on the Mobile Banking vs Internet Banking
Can I access my account through both mobile and internet banking?
Yes, you can access your account on internet banking and mobile banking using your credentials.
Is mobile banking more secure than internet banking?
Both mobile banking and online banking are secure. They have separate security features, encryption and authorisation processes.
Can I perform the same transactions on internet banking and mobile banking?
Yes, you can perform the same transactions through both of these options.
Are there any differences in security between Internet banking and mobile banking?
Yes, both of them use separate security measures to safeguard your data. While internet banking uses your credentials, security tokens and OTPs, mobile apps may use biometric scans, PINs and encryption.
Do internet banking and mobile banking require separate registrations?
Yes, both need separate registrations. For Internet banking, you need a user ID and password. For mobile, you can get a separate password or use a PIN.
Knowing how to calculate comprehensive income is an important aspect of managing cash flow and budgeting. When it comes to business, keeping a record of all your cash inflows and outflows is a priority.
Knowing the total earnings from your business venture helps you take calculated risks. You can also decide when and how to expand your business with funds available. This is where a record of comprehensive income becomes important.
Read on to understand the meaning of comprehensive income, how business is calculated and more.
Introduction to Comprehensive Income
By definition, it is a net gain in the company’s net equity over a specific period of time that results from non-owner sources. In simple words, it is all the income under the name of the business that includes the income from sales of the products/services as well as other sources.
Here are some pointers that better explain the meaning of comprehensive income.
This includes all the earnings of the company or brand, such as net income and unrealised income
Unrealised income is any income from indirect sources such as investment and foreign currency transaction
It also accounts for losses to the business from different sources
Businesses can choose any period of reporting to create a statement of comprehensive income for accounting
It shows how many assets and liabilities a company helms within a particular period
It also shows the securities available for sale to potential buyers
Both investors and company owners can use this data to analyse the business background. This is because it provides a big picture of the equity or the company’s value. On the other hand, stakeholders can get an idea if the company has investment potential or not.
If it shows continued growth in income, it means the business strategies are working. On the other hand, business owners can also use this to evaluate their investment and sales practices to garner better results.
Understanding the Statement of Comprehensive Income
This accounting document includes the revenues, profit, expenses, taxes paid, and interest earned on investments. After creating this document, you can calculate the total profits and losses.
To write this statement, you need to do the following calculations:
Add total earnings from sales
Subtract the amount paid to buy raw materials and transportation
Deduct the salaries of the employees, rent and other expenses
Add earnings from other operations and other sources
Deduct the gains from discontinued operations
Add gains from business investments and shares
After all this, complete the final calculation to get the comprehensive income.
Pros and Cons of the Statement of Comprehensive Income
Now that you know what it is and how to calculate it, here are its benefits and limitations.
Benefits
Limitations
Gives a comprehensive view of the net earnings and expensesTells you about the areas that need attention and financesHelps gather details for financial planning for business growth
The inclusion of unpaid bills gives distorted ideas, which may lead to misinterpreted dataMisreported data can lead to incorrect predictions about the success of the company It is susceptible to manipulation
You can also check your everyday transactions to plan your next business move with the statement. This document also tells you when you need to borrow funds to maintain cash flow or for any urgent big expense. This includes any urgent repairs or funds for raw materials. After that, you can decide if you can afford to take a loan.
Be it for your business or individual requirements, the Fibe Instant Personal Loan can help you arrange the funds with a streamlined application process. Get up to ₹5 lakhs loan at an affordable interest rate with minimum documents. You can even apply if you don’t meet the eligibility for a traditional loan from a bank.
This is because we have an alternative scoring mechanism which allows us to extend loans to individuals with low credit scores. Furthermore, we allow you to close the loan without any additional cost. Simply download our Personal Loan App on your smartphone or apply directly on our website.
FAQs on Comprehensive Income
How often is comprehensive income reported?
Different companies have different rules. It can be reported monthly, quarterly, or annually, depending on the company’s reporting practices.
What impact does comprehensive income have on dividends?
It has a positive correlation as more incomes lead to higher earnings by the stakeholders.
Where can I find comprehensive income information in financial statements?
You can find all the relevant information on the balance sheet.
Are there any standard accounting principles for reporting comprehensive income?
Yes, comprehensive income and other accounting details are presented as per the Indian Accounting Standard.
Can comprehensive income be manipulated?
In most cases, a statement of comprehensive income is used to analyse the profit and loss of the company for accurate calculation. However, it can be manipulated.
The working capital cycle is an essential financial indicator of your business’s financial efficiency. This measures and tracks your business’s time to convert assets and liabilities into cash. In simple words, this cycle dedicates how long it takes for you to arrange finds for your business.
Knowing this is important as liquidity is a crucial parameter to carry out the regular operation of your business. Gaining more information on the capital cycle can help you maintain stability during a challenging economic environment.
Understanding Important Components of Working Capital Cycle
Successful business management includes comparing all the current assets against current liabilities. However, there are a few important pillars to keep in mind for better management of working capital:
Billing
This indicates the time taken by the buyer to pay the seller for goods or services. The billing process includes:
This indicates the overall time a company takes to convert sales into inventory. This is an important component indicating your business’s inventory management and how well you manage the stock levels. All the money spent on buying inventory gets deducted from the working capital.
Receivables
Managing the receivables is important in terms of collecting the money owed to a company. Receivables are the amount owed to your company for purchasing goods or services indicating the rights to collect in future.
Cash
You can ensure a constant and steady cash flow to the business by ensuring the timely management of payables and receivables. That can help better optimise operation efficiency, which helps in making a strategy to balance the requirements.
Operating Cycle in Working Capital
The time required to convert the current assets to cash is calculated by adding different operating cycle days. The working capital days indicate the time period starting from the day you pay for inventory to the payment you receive by selling.
These are the cycles involved in the procedure:
Step 1: This cycle starts with cash in hand, but later, gets tied up in the payment of raw materials. It is known as inventory days, as your cash is used to acquire inventory for the business.
Step 2: The account receivable cycle represents the time period required to collect the payment from the customers after selling them goods or services.
Step 3: The account payable cycle represents the time period when your business’s cash is tied up in paying the suppliers for raw materials.
Knowing all the cycles and the days each takes, you can use the working capital cycle equation.
Using the formula for the working capital cycle, you can calculate the capital cycle:
Working Capital Cycle= Inventory Days + Receivable Days – Payable Days
What Strategies to Implement
To increase your business’s operational efficiency, you can implement various strategies such as:
Having good credit terms
This strategy can increase payable days by maintaining a good supplier relationship. You can negotiate to keep the cash for a longer period and utilise it in various other areas of your business.
Accelerating cash collection
You can reduce the receivable days with proper practice of maintaining invoices. You can also offer discounts for previous payments.
Speeding up sales
By improving demand forecasting and applying lean inventory techniques, you can reduce and decrease the length of inventory days.
You can also use certain software and tools to manage the capital cycle. Using inventory management software will help you to track stocks and optimise reorder points. Having a good invoicing system can help you in billing automation, eventually speeding up the payment cycle.
Using a financial planning tool can provide you with information on ongoing cash flow trends. This will help in better financial strategizing and business forecasting.
By using these techniques, you can effectively optimise your capital cycle to create sustainable financial health in the long term. While it is necessary to maintain the capital cycle, sometimes unforeseen expenditures can cause financial scarcity.
In this case, you can opt for a Fibe Instant Personal Loan to fund your business’s expenses. We offer you a ₹5 lakhs loan without requiring any collateral. You can use the funds without any restrictions and pre-close the loan at no additional cost.
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FAQs on Working Capital Cycle
What is a good working capital cycle length?
A short capital cycle is desirable, though having a long cycle is not bad. However, it depends on the nature of the business.
How does the working capital cycle affect a company’s cash flow?
The cycle represents the availability of liquidity and, hence company’s cash flow. The shorter it is, the better the business can run.
Can a negative working capital cycle be beneficial?
Yes, a negative capital cycle represents the availability of liquidity to carry out day-to-day business expenses, benefiting the company.
How does the working capital cycle impact financial statements?
A negative working capital cycle represents a financially healthy cash flow, maintaining a positive impact on the financial statement.
In business, cash flow and cash flow statements can be helpful in understanding the liquidity of funds. That way, you can improve your cash management to carry out day-to-day expenses.
Management of cash flow means control of cash outflow with analysis of possible sources of inflows. This ensures your business’s financial stability to perform the usual operations during a challenging period.
Here is a guide to help you understand cash flow and cash flow statements and their importance with complete information.
Understanding How Cash Flow Works
This involves knowing the total income over a specific period and taking note of spending. This also helps you make cutbacks on unnecessary expenses. To calculate the current cash flow over a period of time, you need to reduce the cash outlays from your cash inflows.
For cash flow analysis, you need a cash flow statement. This financial document outlines all the necessary information and detailed analysis of a business’s cash flow in a specific period of time. It shows all the data on cash received and cash used in different areas.
Upon completing an accurate calculation, you may get a positive or negative balance. A positive balance represents that you have enough liquidity to carry out regular expenses. A negative balance means you have inadequate liquidity. Thus, it helps you determine your current liquidity.
After learning what is cash flow, knowing the type can help you to understand where your business stands better. There are various kinds of cash flows depending on expenditure, such as:
Operation-related cash flow
When money is generated due to sales, either due to goods or services, it is included in the entity’s core business cash flow. Expenditures include cost of goods sold, rent payments and others. This is included in the outflow of cash in operations.
Financing-related cash flow
The cashflow changes if there is an increase or decrease in long-term financing activities such as:
Changes in dividend issued
Stock repurchases
Debts or liability incurred
This type of statement reflects such changes.
Investment-related cash flow
This cash flow statement includes the fluctuation in long-term assets in the business, such as:
It has both long-term and short-term effects on the business as it determines the smooth operation of the business and its financial position. These are the reasons why knowing understanding cash flow and cash flow statements is critical:
Increases Profit
You can optimise your expenses by managing the cash flow and lead the way towards overall growth. That will result in:
Minimising the debt
Increasing the value fir the shareholder
Decreases Risk
Cash flow analysis and management ensure that day-to-day expenses are met by maintaining the required liquidity to run the business. That way, you reduce the risk of cash shortage.
Correct forecasting of cash flow can improve the decision-making capability in various areas of business:
Resource allocation
Budgeting of various expenditure
Strategic investment
This creates growth opportunities for businesses while minimising risk.
Attracts Investors
Practising proper cashflow management can gain confidence from investors, lenders, stakeholders and others by fostering trust. This can build confidence to invest in the business, attracting more financial opportunities.
You can take certain steps for better cash flow analysis:
Investing the surplus funds smartly and maintaining a reserve fund for unforeseen needs
Keeping a proper record of all the cash transactions, including time-in entry
Analysis of the area of overspending and cutting down on these to increase cash flow
Monitoring the payment dates and terms with suppliers and negotiating for favourable terms
Preparing a cash flow statement to analyse the inflows and outflows
Forecasting future cash trends depending on past projections and data
By taking the necessary steps, such as creating an in-depth cash flow statement, tracking your expenses and others, you can have a good strategy to maintain your cash flow and cash flow statements.
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FAQs on Cash Flow
What tools or software can help me track cash flow?
Here are a few tools that can help you to track your cash flow:
Cash controller
Cash flow frog
ThinkOut
Strands BFM
PlanGuru
What’s the difference between cash flow and profit?
While the meaning of cash flow indicates a business’s inflow and outflow of cash, profit is the balance left after meeting all the expenses.
The credit card lifecycle has different phases. One of the important components to take into consideration as a user is the billing cycle. Every credit card comes with a billing cycle – some for 30 days, others for 28 days – depending on the issuer offering the credit card.
Understanding this is crucial, as failing to pay bills on time can adversely affect your credit score. However, this is different from a credit cycle, which is a concept of economics. As such, understanding the credit cycle and how the credit card billing cycle works can give you a clear picture.
A Brief Understanding of the Credit Cycle
It is referred to as the cyclical fluctuation in:
Interest rates
Availability of loans
This cycle has two phases that are intertwined with each other:
When the economy is contracting, lenders are less willing to give loans and, if so, offer loans at a high interest rate
Hence, during recessions, credit availability is low and at a high interest rate. However, when the economy is on an upswing, you can avail of personal loans easily at lower interest rates of interest.
Credit Card’s Lifecycle
This principle above is very different from a credit card lifecycle, which basically involves everything from getting a card to closing your account. On the whole, it involved the following:
Getting a new card from a credit card company on approval on your application
Activating your card via online and offline modes within 30 days of receiving it
Renewing your card once it expires by getting a new card and activating it
Replacing your card if it is lost or stolen
Closing the credit card account
How the Billing Cycle Works
Within a card’s lifecycle, the only way that you can maintain good financial health is by paying your credit card bills on time. For this, understanding your issuer’s bill payment cycle is crucial. It can help you plan your credit utilisation during the interest-free period and avoid late payment penalties.
Thus, your new billing cycle starts on 11 February and ends on 10 March
At the end of your billing cycle, the bill is generated, showcasing all your transactions
Now, if your due date is the 28th of March, you must pay the amount before the due date to avoid any extra fees and charges
You may assume that the repayment date is the bill generation date, which is not true. In fact, the issuer provides an interest-free period of up to 25 days to pay the bill. This is known as the grace period on the bill. You can pay the credit card bills during the grace period to avoid high interest rates later. In fact, as per the RBI, you get 3 days more to pay your bill after the payment due date. It is only after 3 days that you will be charged a late payment fee.
Knowing these terms will help you to clearly understand your credit card cycle and plan repayment.
Statement Date
This is the date on which you receive your statement after the completion of the billing cycle. After this date, the new billing cycle begins.
Credit Card Due Date
This is the day when you have to pay your complete credit card bill to avoid any charges. The issuer decides this date based on your credit card cycle, which remains fixed throughout the billing cycle.
Minimum Amount Due
In case of financial shortages, you can only pay a minimum amount. This is generally 5% of the total billing amount. The rest of the outstanding amount will be carried forward to your next billing cycle. This way you avoid late fees, but you still need to pay interest on the outstanding dues.
Repayment behaviour is an important part of how you manage your credit card. Understanding when to pay your bills can help you make the best use of your credit card. This way, you can also enjoy the maximum interest-free period.
For instance, you can get an interest-free period of up to 50 days with the Fibe Axis Bank Credit Card. Not only does it come with zero annual or joining fee, but it also offers you perks like up to 3% cashback.
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FAQs on Credit Cycle
How does the credit cycle impact interest rates?
Depending on the economy, the credit cycle differs. When it peaks, loans are easily available and interest rates are more affordable.
What is a credit card life cycle?
It includes the following stages:
Application
Issuance
Activation
Expiry and Renewal
Replacement
Closure
Can I change my billing cycle to align with my pay dates?
Yes, you can change your card’s billing cycle by contacting the issuer to align with the time you get your salary. This way, you can pay bills on time and maintain your creditworthiness.
How to best time my purchase as per the credit card cycle?
It is best to make a big-ticket purchase at the beginning of the billing cycle. This gives you the maximum amount to repay.
