Difference between NRI and NRE Accounts
Key Difference: The term "Non-resident Indian" is differs from "Non-Resident External" and "Non-Resident Ordinary", where NRI is a legal status and NRE and NRO back accounts. NRI refers to the tax status of a citizen, while NRE and NRO are different types of back accounts that are available to the NRI. A person is deemed an NRI or a Non-resident Indian when an Indian citizen stays abroad for purposes such as employment, business and vacation. NRE and NRO accounts were created specifically for NRIs, as it is illegal for an NRI to hold a resident account in India.
India, which has the second largest population in the world, is also one of the Asian countries with the highest amount of migration to other nations. This migration is fueled by various reasons such as earning more money, a better living, and a better education. Due to the high amount of migration, a big percentage of India's income depends on money transactions from abroad or foreign money being introduced to the Indian economy. When a person of Indian origin migrates abroad, he comes into contact with terms like "Non-resident Indian" (NRI), "Non-Resident External" (NRE) and "Non-Resident Ordinary" (NRO).
The term "NRI" is differs from "NRE" and "NRO", where NRI is a legal status and NRE and NRO back accounts. The legal definition of an NRI is that this term only refers to the tax status of a citizen, while NRE and NRO are different types of back accounts that are available to the NRI. A person is deemed an NRI or a Non-resident Indian when an Indian citizen stays abroad for purposes such as employment, business and vacation. People working for United Nation (UN) organizations or officials posted outside of India by the government are also included in the definition. A person's liability to pay tax also depends on his residential status, as the income tax rates differs for each resident type. In order to be labeled as a resident of India, a person must fulfill certain conditions such as "the person must reside in India for a minimum of 182 days or more during the previous year or a person must reside for a minimum of 365 days or more over four preceding years." If these conditions are not fulfilled a person is considered as an NRI.
NRE and NRO accounts were created specifically for NRIs, as it is illegal for an NRI to hold a resident account in India. These accounts allow the NRIs to deal with money matters in India, such as acquiring income from or paying income for rent, property, etc. These accounts are two different types of bank accounts that are available to NRI, and these both accounts offer different benefits compared to the other.
An NRE account is denominated in rupees, and could be a savings, current or a fixed deposit account. This account is opened by depositing money, foreign currency not rupees, in to the account. The money in the bank can be withdrawn in terms of rupees or transferred from the bank in terms of foreign currency; however, depositing money in rupees is not allowed. Also any interest acquired from an NRE account is tax free. 'Repatriation' or 'sending money abroad' in different currencies also allowed using an NRE account. Commonly, NREs are held by a single person, but it can also be jointly held if both the holders are NRIs. If any NRI returns to India for good, then the account can be converted into a normal resident back account.
An NRO account is also a rupee based account, where currency can be maintained in the form of rupees. This account can also be a savings, current or fixed deposit account and must be opened by an NRI. An NRO account allows holders to deposit the funds in rupees along with other currencies. Originally, remitting funds from an NRO account was not allowed, however terms have been changed and now allows users to remit up to a up to a million USD.. One can make only local (within India) payments using funds in a NRO account. NROs can be jointly opened with other NRIs or resident Indians. Interest earned in an NRO account is not exempted from tax and will require the holder to pay taxes under RBI rules.
Originally NRO accounts were preferred compared to NRE accounts because the low interest rate given by NRE account, but now new RBI guidelines have given the power of setting interest rates to the banks, and NRE accounts gives approximately same rates as NROs. NRO accounts are not exempted from tax, while NRE accounts are. Both NRO and NRE accounts allow transferring money abroad in different currencies. Deposing currency in rupees is not allowed in NRE accounts but is allowed in NRO accounts. It is best to have both accounts as each has their own unique benefits.
Difference between SENSEX and Nifty
Key difference: SENSEX is the stock market index for BSE Limited, previously known as the Bombay Stock Exchange. SENSEX Index is comprised of 30 of the largest and most actively-traded stocks on the BSE. Nifty is the stock market index for the National Stock Exchange (NSE). Nifty comprises of 50 of the largest and most actively traded stocks on the NSE that covers 22 sectors of the Indian economy.
The SENSEX and Nifty are both stock market indexes. A stock market index, also known as a stock index is a method of measuring the value of a section of the stock market. The stock index consists of a selected number of stocks, which represent the strength of the stock market exchange as a whole. The stock index is calculated by taking an average, usually weighted of the selected number of stocks as included in the index.
SENSEX is the stock market index for BSE Limited, previously known as the Bombay Stock Exchange. Located on Dalal Street in Mumbai, BSE was established in 1875. BSE has emerged as one of the leading exchange groups of India. Two major shareholders of the BSE are prominent global exchangers – Deutsche Bourse and Singapore Exchange. As mentioned in Wikipedia, BSE is the first exchange in the world to obtain 9001-2002 certification on its on-line trading system.
An index in a stock exchange is basically an indicator to give a general idea about the stocks; whether they have gone up or most of the stocks have gone down. The popular benchmark equity index of BSE is known as S&P BSE SENSEX. SENSEX Index is comprised of 30 of the largest and most actively-traded stocks on the BSE. Previously it was known as SENSEX but after tying up with S&P now it is known as S&P BSE SENSEX. This tie-up aimed to use the global rating agency's brand for its index.
Nifty is the stock market index for the National Stock Exchange (NSE). The NSE is another stock exchange which operates in India. NSE came into existence in 1991 by Government of India on the recommendation of the Pherwani Committee. NSE is mutually owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India. Ownership and management operates separately in NSE. NSE covers segments like mutual funds, indices, exchange traded funds, equities, etc. of the capital market. NSE is the first exchange in the world to use screen based system for trading, which connected members through a satellite network and allowed them to easily access trade opportunities irrespective of being located in various parts of the country as they are.
Nifty comprises of 50 of the largest and most actively traded stocks on the NSE that covers 22 sectors of the Indian economy. These 50 stocks are also known as the National Fifty. Nifty is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and Credit Rating and Information Services of India Ltd. (CRISIL). After tying up with S&P, NSE Nifty, as it was previously known, changed its official name to S&P CNX Nifty, where S&P stands for Standard & Poor and CNX stands for 'CRISIL NSE Index'. However, S&P CNX Nifty is still commonly known as Nifty or NSE Nifty.
The main difference between SENSEX and Nifty is that SENSEX is the stock market index for BSE Limited, while Nifty is the stock market index for National Stock Exchange (NSE). Another is that SENSEX is comprised of 30 stocks, while Nifty is comprised of 50 stocks.
Difference between Legislation and Regulation
Key Difference: Legislation is another term meaning statutory law. These laws have been enacted by a legislature or the governing body of a country. Legislation can also mean the process of making the law. Regulations can be used define two things; a process of monitoring and enforcing legislations and a written instrument containing rules that have law on them.
Legislation and regulation are two terms that often confuse people that are not well-versed with law terminologies. Law is one of the most complicated subjects and has various different terms and words that often mean different things in different contexts. These two words are a type of those words. Legislation refers to the laws that are enacted by the legislature or a law that is in process of being enacted, while regulations are the process of monitoring and enforcing a law as well as a document that contains the details of a written rule. These two should not be confused as they are completely different from each other.
Legislation is another term meaning statutory law. These laws have been enacted by a legislature or the governing body of a country. Legislation can also mean the process of making the law. Let's first understand how a law is made.. The law starts off with being an idea. The idea is then put down a piece of paper, which is known as a bill. This bill goes then goes to the legislative branch, who will vote either to approve or reject the bill. If the bill is approved, it then goes to the regulatory branch, which is responsible for writing out the details of the bill and the implementation process. This bill then becomes a law. This process varies depending upon the countries. Under the Westminster system, the primary legislation, after it is approved is known as an Act of Parliament. The term 'legislation' may also include other forms of law making such as referendums, constitutional conventions, orders in council or regulations. However, the term primary legislation can exclude these laws.
Dictionary.com defines 'legislation' as:
· The act of making or enacting laws.
· A law or a body of laws enacted.
Regulations can be used define two things; a process of monitoring and enforcing legislations and a written instrument containing rules that have law on them. David Levi-Faur's Regulation and Regulatory Governance, Jerusalem Papers in Regulation and Governance states that regulation creates, limits, or constrains a right, creates or limits a duty, or allocates a responsibility. It can come in many forms including legal restrictions, contractual obligations, self-regulation, co-regulation, third-party regulation, certification, accreditation or market regulation. Regulation is basically ensuring that a law or legislation is put into effect and the details of how it is put into effect. The regulations are the responsibility of the executive branch.
Dictionary.com defines 'regulation' as:
· A law, rule, or other order prescribed by authority, especially to regulate conduct.
· The act of regulating or the state of being regulated.
· A governmental or ministerial order having the force of law
· As required by official rules or procedure
Legislations and regulations are quite different from each other. While, the legislations are passed by the government or legislature, it falls up to regulations to ensure and enforce the law. It has the ability to maintain and regulate the laws that govern the people.
Difference between Listening and Hearing
Key Difference: Hearing is one of the five senses of a person and it is the ability to perceive sound by detecting vibrations through an organ such as the ear. Listening also known as 'active listening' is a technique used in communication which requires a person to pay attention to the speaker and provide feedback. Listening is a step further than hearing, where after the brain receives the nerve impulses and deciphers it, it then sends feedback.
Hearing and Listening, though synonymous, are complete different things. You can listen to someone without actually hearing anything. Let's put it this way, have you ever day dreamed in class? In this, though you were hearing the noise in the classroom, you did not listen to what the teacher was saying.
Hearing is one of the five senses of a person and it is the ability to perceive sound by detecting vibrations through an organ such as the ear. According to Merriam-Webster, hearing is "the process, function, or power of perceiving sound; specifically: the special sense by which noises and tones are received as stimuli." In hearing, vibrations are detected by the ear and then converted into nerve impulses and sent to the brain. A person who is unable to hear has a condition known as deafness. Hearing occurs even in sleep, where the ear processes the sounds and passes them on to the brain, but the brain does not always react to the sound.
Listening also known as 'active listening' is a technique used in communication which requires a person to pay attention to the speaker and provide feedback. Listening is a step further than hearing, where after the brain receives the nerve impulses and deciphers it, it then sends feedback. Listening requires concentration, deriving meaning from the sound that is heard and reacting to it. Listening is a process of communication, where if the person is not listening it can cause a break in communication. Listening is defined by Merriam-Webster as, "to hear something with thoughtful attention: give consideration."
There are four types of communicators, a 'non-listener' is a person that is preoccupied with his/her own thoughts and though he is hearing he is not paying attention; 'passive listeners' hear the words but do not absorb the meaning and only provide vague answers; 'listeners' hear and listen, but they only grasp the meaning of talks that interests them, this is most common for people who do not want to listen to a topic on which their views differ and will cease to listen to that and start providing their own ideas.. Finally 'active listeners' are the best listeners, not only do they hear the person speak, but they also listen with patience and an open mind. They are completely focused on the speaker.
It is said that a good listener becomes the best communicator as he/she understands the value of the words and emotions. They take in importance of speaking in a clear manner to remove chances of misunderstandings. An active listener has lesser chances of misunderstanding and misinterpreting ideas and words as they also pick up on emotions that are attached with the words.
So the main difference betwee
n hearing and listening is, while hearing only refers to your ears picking up noise, listening means to interpret the noise, understand it and provide an adequate response to it. Listening also uses other sense in order to be receptive to the other person's body language.
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