It is good to be transparent in your financial dealings with people. However, you should remember to maintain the secrecy of specific financial details as there are chances of misuse. In your interest and the interest of your family, it is better to be secretive and keep specific financial aspects confidential.
Value of Your Investments
Many people in India love to invest in the stock market. In case you have started investing early in life, there are chances you might have made a lot of money.
Be very careful not to brag about your investments and net worth in public places, especially when there are a lot of strangers around you. It is better to discuss such matters with your financial advisor after executing a confidentiality agreement.
The Details of Your Loans
It is rare to find a household in India that does not have a loan liability today. People Apply for Home Loans, car loans, Personal Loans, education loans, Credit Cards, and other forms of credit. With the opening up of the economy in the 1990s, taking loans has become easy. It is not advisable for you to talk about your loans and your repayment capacity in public.
Yes, banks have access to your credit reports. They can view your loan accounts. They need to do so to understand your financial strength. At the same time, they are under an obligation not to reveal the details of their customers to others unless the orders come from a position of authority. You can discuss these matters with your bankers and financial advisors, but never in front of other third parties. Any third party should not know how much you owe to banks.
Debit and Credit Card Numbers
Have you noticed that many people have the habit of writing down their Credit Card numbers on a piece of paper? You must have also seen them sharing these numbers over the phone. It is a wrong practice. You should maintain absolute confidentiality of your Credit and Debit card numbers. Understand that there are websites that allow payment by disclosing a card number alone.
The CVV number printed on the reverse of the card is a critical bit of information. Never share the CVV number, expiry date, the name on the card and the PIN with anyone. There are instances of miscreants masquerading as bank staff prompting you to disclose the numbers. Remember, no bank ever asks for this vital information.
Your Income Tax Returns
In this era of aggressive marketing, you can get calls from salespersons seeking details of your income, your tax payments, and so on. Never disclose your tax details to anyone other than your financial advisor. Note that the Income Tax department sends you tax acknowledgement copies in a protected PDF file. There is a specific reason behind this.
The IT department does not want anyone other than you to view your IT returns. Therefore, it makes sense for you to remain secretive about your income tax returns. Yes, you will have to share your income tax returns with your banker when you apply for a loan.
You should assume full responsibility for the safety of your bank accounts. Never keep your cheques and debit cards in open view. Keep them under lock and key. People can misuse these instruments and cause financial harm. Similarly, you should not share your essential identity information such as PAN, Aadhar card insurance policy number and so on with third persons.
If any transaction involves NEFT or RTGS, you get the UTR number on your mobile. It is advisable not to share such information with third partiesnot connected with the transaction. These are small details, but it is better to be safe than to be sorry.
Transparency is necessary for financial transactions, but you should be transparent only when the occasion demands it. Otherwise, you should maintain the strict secrecy of your financial dealings with third parties. You never know who can misuse your information and clean up your accounts.
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