On October 31, 2023, the Reserve Bank of India (RBI) issued a master circular on the import of goods and services titled <a href="https://m.rbi.org.in//Scripts/NotificationUser.aspx?Id=12561&amp;Mode=0">Regulation of Payment Aggregator – Cross Border</a>.&nbsp;&nbsp;

According to the circular, the RBI will regulate all Indian entities facilitating online cross-border payments for the import and export of permissible goods and services. Moreover, these entities will be collectively termed Payment Aggregators Cross Border (PA-CB).

The circular comprises guidelines to streamline the existing cross-border payment framework in India. Previously, cross-border transactions were carried out through Online Payment Gateway Service Providers (<a href="https://www.skydo.com/blog/online-payment-gateway-service-provider-opgsp?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">OPGSPs</a>) as per a circular issued by RBI in 2015.

OPGSPs operate by partnering with an Authorised Dealer (Category I) Bank (AD Bank) and notifying the RBI. According to RBI guidelines, no formal license is needed to function as an OPGSP.

Hence, RBI has issued a circular to establish a concise and clear framework for cross-border payments. RBI will now oversee all cross-border payments in India related to the import and export of goods. The circular applies to PA-CB, PAs, authorised banks and OPGSPs.&nbsp;The PA-CB circular also denotes that there can’t be any new OPGSP.

This blog discusses the key provisions related to the latest RBI circular on the import of goods and services, RBI guidelines for payment gateway, and OPGSP guidelines.

Master Circular on Import of Goods and Services: RBI Bank Guidelines

The following are the key guidelines mentioned in the circular.

The following entities need to adhere to RBI guidelines/instructions provided in the circular.

Here are the key developments included in the new PACB circular.

Categories of Authorisation as per PA-CB Activity&nbsp;

Based on the cross-border payment activity undertaken by the PA-CBs, they can seek authorisation for one of the following three categories.

PA-CB, facilitating cross-border payments for Indian exporters, has to open an Export Collection Account (ECA) with an AD bank.&nbsp;

ECAs can be opened in either Indian currency or foreign currency. In the case of the latter, various ECAs have to be opened for different currencies.

The PA-CBs will credit all export proceeds in the respective ECAs. Additionally, export PA-CBs need to follow the below guidelines:

Similar to export PA-CBs, import PA-CBs have to open an Import Collection Account (ICA) with an AD bank.&nbsp;

They will collect the payment from importers in an escrow account managed by the payment aggregator. It will then be transferred to ICA and will eventually be transferred to the bank account of the foreign merchants.

These entities are allowed to directly onboard foreign merchants, e-commerce marketplaces, or other overseas entities that offer payment aggregation services.&nbsp;

Here are the guidelines Import PA-CBs need to follow.

Those PA-CB who engage in both import and export activities have to comply with the requirements for both Import PA-CB and Export PA-CB.

They also need to ensure that the maximum value per unit of exported or imported goods or services should be ₹25,00,000.

Non-banks who want to provide PA-CB services will have to seek authorisation from RBI. However, before seeking RBI authorisation, it is necessary to register with the Financial Intelligence Unit-India (FIU-IND).&nbsp;

However, RBI has issued the following net-worth criteria for non-banks providing PA-CB services.

The accounts of existing non-bank PA-CB who are unable to meet the net worth requirement will be closed by banks by 31 July 2024.

Snapshot Comparison Between OPGSP Circular (2015) and PA-CB Circular (2023)&nbsp;

Here are the key differences between the OPGSP Circular (2015) and the PA-CB Circular (2023)

Here is the process of seeking approval from RBI for existing or new PA-CBs.

Step 1: Draft the application through Form A, which includes the following parts.

Step 3: The RBI will process the application.

(RBI may raise queries related to various aspects such as shareholding, product processes, etc.)&nbsp;

Step 4: In principle approval from RBI.

Step 5: Filing of system Audit Report

(RBI may raise queries related to SAR audit observations)&nbsp;

Step 6: Final authorisation(state additional conditions that must be complied with)&nbsp;

The evolving cross-border payments environment and the emergence of several OPGSPs and other fintech entities encouraged RBI to issue the circular. Its main purpose is to ensure seamless and more transparent cross-border payment transactions.

Even though regulatory authorities are constantly working on making cross-border payment transactions seamless, transparent, secure, and quicker, businesses often face difficulties in receiving timely payments.&nbsp;

Skydo aims to simplify the cross-border payment landscape for businesses by automating various tasks and helping businesses open foreign bank accounts. <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Join Skydo today</a> to streamline your invoicing and financial management activities!

Q1. RBI’s master circular on the import of goods and services and cross-border payments applies to which entities?

Ans. AD banks, PAs, and PA-CBs involved in the online processing/settlement of cross-border payment transactions related to the import and export of goods and services have to comply with the guidelines mentioned in the circular.

Q2. What are various compliances according to RBI payment aggregator guidelines for cross-border payments?

Ans. All PA-CBs have to follow the guidelines provided in the circular dated October 31, 2023. Additionally, they also have to follow the various guidelines for payment aggregators mentioned under a circular issued by RBI on March 17, 2020.&nbsp;The circular includes guidelines related to customer grievance redressal and compliance with Baseline Technology Guidelines to ensure fraud prevention and risk management.

Q3. How can PA-CB seek authorisation for facilitating cross-border payment transactions?

Ans. AD banks do not need to seek authorisation to facilitate cross-border payment transactions. However, a non-bank PA-CB can seek authorisation from RBI by sending the application to the Department of Payment and Settlement Systems (DPSS), RBI, Central Office (CO), by April 30, 2024. PA-CB entities must fulfil the minimum net worth criteria before applying to RBI.

 Know more about RBI's circular that mandates payment aggregators to seek authorization for facilitating cross-border transactions by April 30, 2024.

BI’s PACB Circular: Key OPGSP Updates of 2024 to Note 

RBI’s PACB Circular: OPGSP Update 2024 th

Sukanya

small_63d28e01c7be52004a161364_63987d13bf44087d0456fe79_XXH7GqWC6qRqLN3JiqBOdGeCCuj9zTvek48aXG9prsY.png

thumbnail_63d28e01c7be52004a161364_63987d13bf44087d0456fe79_XXH7GqWC6qRqLN3JiqBOdGeCCuj9zTvek48aXG9prsY.png

Earlier, employees tired of working a 9-to-5 job often turned to one of the three: IAS, MBA, or Startup. However, with the rise of the gig economy, you may want to start freelancing to earn a side income or transition to being your own boss.

According to the World Bank, nearly <a href="https://explodingtopics.com/blog/freelance-stats">47% of workers</a> worldwide work as freelancers. Even the global freelance platform market will reach $9.19 billion by 2027.

While the freedom of working from anywhere, setting your own prices, pursuing your passion, and having more control over your life is good, it also comes with irregular income, lack of benefits, isolation, competition, and uncertainty.

This article will guide you through the steps and tips for successfully transitioning from a full-time job to a full-time freelancing job.

Before quitting your full-time job and diving into freelancing, you must ask yourself some important questions.

These questions will help you evaluate your financial stability, professional credibility, competitive advantage, and market opportunity. If you answer yes to all of them, then you are ready to take the next step. If not, you need to improve these areas before making the transition.

Here are some tips on how to assess your readiness.

Once you have assessed your readiness, you must create a strategic plan that outlines your goals and objectives, defines your target market and niche, estimates your income and budgeting, and identifies potential challenges and solutions.

Here are some tips on how to create a strategic plan.

Have contingency plans and solutions for each challenge, such as having a backup client, using a project management tool, setting up a payment system, hiring a lawyer, etc.

Before you quit your job and start looking for clients, try to create your presence in the freelance world while working your full-time job.&nbsp;

Your online presence is your digital footprint that shows who you are, what you do, and how you can help your clients. It includes your freelance brand, professional website, social media profiles, portfolio, and testimonials.

Here are some tips on how to build your online presence.

Your freelance brand is how you present yourself to your clients. It includes your name, logo, tagline, mission, values, tone, etc. It should be consistent, authentic, and memorable.

You can create your brand on something as simple as your LinkedIn page. If you want something more elaborate, you can go for a website (like <a href="https://www.kaleighmoore.com/">this one</a> by Kaleigh Moore, a well-known freelance writer, which gives a clear idea of who she is, what she does, and how she can help clients grow).

Create or update your professional website

Your website showcases your services, portfolio, testimonials, contact info, etc. This means you use your website to display what you do, what you have done, what others say about you, how to reach you, and so on. A website can help you to–

Your social media profiles are where you connect with your clients, peers, and influencers. Use the platforms that suit your industry and audience.&nbsp;

For example, a B2B SaaS writer may find their ideal clients (SaaS brands) on LinkedIn, whereas a social media manager might find it easier to reach out to D2C brands on Instagram.&nbsp;&nbsp;

Showcasing your portfolio and testimonials

Your portfolio and testimonials show your potential clients or employers what you can do and how you have helped others in the past. They are essential for building trust and credibility and demonstrating your value and results.

For example, suppose you are a freelance web developer who wants to attract more clients. You could create a portfolio website that showcases your best work and testimonials from previous clients or employers.

Your portfolio website could include the following elements.

Here is an example of a portfolio website that follows these guidelines: <a href="https://www.lokkeestudios.com/">Lokkee Studios</a>&nbsp;

This is an extension of creating your presence, but here, you are more actively looking for people that you can work with. Networking and marketing are essential activities that help you find and attract clients for your freelance business. They involve reaching out to people who can help you grow your network, reputation, and income.

Here are some tips on how to network and market yourself:

Learn <a href="https://www.skydo.com/blog/how-to-find-high-paying-remote-jobs?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">how to find high-paying remote opportunities here</a>.

Just finding clients and creating an income for yourself is not enough. Freelancers are responsible for managing their finances and taxes. You must keep track of your income and expenses, invoice your clients and collect payments, pay your taxes, comply with the law, and plan for your future.

Here are some tips on managing your finances and taxes:

As a freelancer, you can set your hours and schedules. However, you must also deal with multiple projects, deadlines, clients, and distractions. You must manage your time effectively and efficiently to deliver high-quality work and meet your goals.

Here are some tips on managing <a href="https://www.skydo.com/blog/implementing-effective-communication-practices-for-better-productivity?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">your time and productivity</a>:

Before you become a full-time freelancer, you need to have a roaster of study clients to sustain your income and grow your business. You must impress potential clients with your pitches and proposals, build rapport with them, navigate <a href="https://www.skydo.com/blog/global-negotiation-skills-for-tech-export-success?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">negotiations and contracts</a>, deliver high-quality work, and exceed their expectations.

Here are some tips on securing clients and projects:

For someone who doesn’t have to work a 9-5 anymore, the freedom that comes with freelancing might feel very liberating. But it can also be challenging to manage your time without external deadlines. As a freelancer, you can pick your projects, clients, and schedule. But you also need to be flexible, disciplined, and resilient.

Here are some tips on how to adapt to the freelancer lifestyle:

So, you now have the freedom to choose your projects and clients, but you also face uncertainty and stress. How can you cope with the ups and downs of freelancing?

Here are some tips on how to handle challenges and burnout:

Transitioning from full-time to freelancing can be challenging, and you must take care of yourself along the way. You have earned the right to reward yourself for your efforts and achievements, whether big or small.&nbsp;&nbsp;

Here are some tips on celebrating your milestones and successes:

Transitioning from a full-time job to full-time freelancing can be a rewarding and fulfilling career move. However, it also comes with its own challenges and risks.&nbsp;

To succeed as a freelancer, you must have a clear vision of your goals, a realistic plan of action, and a strong support network. You must also be prepared to deal with the uncertainty, isolation, and competition that freelancing entails.&nbsp;

Following the tips and advice in this blog can make the transition smoother and more enjoyable. Remember, freelancing is not for everyone, but it can be the best decision you ever make if you have the passion, skills, and mindset.

Q1. How can I assess if I'm ready to transition from a full-time job to freelancing?

Ans: Before making the leap, consider factors like having at least six months' worth of living expenses saved, a robust portfolio showcasing your skills, a diverse skill set, and a clear understanding of the freelance market and the demand for your services.

Q2. How do I evaluate my financial stability for freelancing?

Ans: Assess your financial stability by saving enough money to cover living expenses for at least six months. This financial cushion helps in case you don't secure clients or projects immediately.

Q3. How do I manage my finances and taxes as a freelancer?

Ans: Manage finances by setting up a dedicated business bank account, establishing a clear invoicing and payment process, and understanding self-employment taxes and obligations in your country or state.

Transitioning From Full-Time Job to Full-Time Freelancing Th

large_Transitioning From Full-Time Job to Full-Time Freelancing Th

medium_Transitioning From Full-Time Job to Full-Time Freelancing Th

small_Transitioning From Full-Time Job to Full-Time Freelancing Th

thumbnail_Transitioning From Full-Time Job to Full-Time Freelancing Th

Anyonya Sahayakari Mandali Co-operative Bank, the first one in India, was established in 1889 with 23 members and INR 73 to save Baroda’s residents from exploitation by moneylenders.

True to its name, cooperative banking is a small financial institution that operates on the principles of cooperation, mutual assistance, and shared ownership among the members. Group members commonly start cooperative banking to cater to the capital needs of a specific community. The members own, operate, and are responsible for all the activities executed through the cooperative banks, and the board members are democratically elected to manage operations.&nbsp;

The main motive behind establishing such institutions was to address the problem of rural or local credit and cater to the capital needs of artisans, farmers, daily wage laborers, and anyone with limited means. The Indian government amended the Cooperatives Societies Act in 1912 to include organizations to audit and supervise the supply of cooperative credit. These organizations were:&nbsp;

Currently, 31 cooperative banks in India are under the direct supervision of the RBI and are required to adhere to the regulations as per the Banking Regulation Act 1949 and Banking Laws Act 1955.&nbsp;

Cooperative banks differ from traditional commercial banks’ ownership structure, governance, and primary objectives.&nbsp;

Operation and Services of Cooperative Banks&nbsp;

Cooperative banks strive to provide all the basic banking services a traditional bank provides but at a much more affordable rate.&nbsp;

Cooperative banks generally focus on the low-income segments. Here are some of the major advantages of cooperating banks and their financial services:&nbsp;

Challenges faced by Cooperative banks&nbsp;

Their size, vision, and operations create many challenges for cooperative banks in India:&nbsp;

Cooperative banks in India have the potential to scale and offer improved financial services to a large customer base. The current era of digital services demands integrating their banking services with new-age fintech companies to offer seamless and quick online transactions, which is currently limited The growth of cooperative banks depends on promoting financial literacy about the bank’s products, services, principles, and economic development initiatives to their members.

Cooperative banks may strengthen their cooperation and collaboration with other cooperative financial institutions at regional, national, and international levels to ensure better services, data security and customer privacy.&nbsp;

Cooperative banks are an integral part of the Indian banking ecosystem as they focus on providing banking and financial services to underserved communities. They provide most of the banking services as traditional banks but ensure the offerings at a much lower cost, promoting much-needed financial inclusion.

These banks will continue evolving and adapting to changing market dynamics and member needs as time passes. By embracing technology, fostering innovation, and staying true to their cooperative principles, they can remain competitive, financially stable, and socially responsible while continuing to serve their communities and members effectively.

Q1. What is meant by the cooperative bank?

Ans: A cooperative bank is a financial institution owned and controlled by its depositors, who are also its members. They prioritize serving their members' needs over maximizing profit, fostering a community-oriented approach to banking.

Ans: Yes, cooperative banks in India are regulated by the Reserve Bank of India (RBI) under the Banking Regulation Act 1949. They adhere to the same regulations and supervision as other commercial banks.

Q3. How many types of cooperative banks are there?

Ans: There are two main types in India:

Additionally, there are specialized cooperative banks catering to specific sectors like industry or professions.

Cooperative Banking: Meaning, Structure & Advantages Th

large_Cooperative Banking: Meaning, Structure & Advantages Th

medium_Cooperative Banking: Meaning, Structure & Advantages Th

small_Cooperative Banking: Meaning, Structure & Advantages Th

thumbnail_Cooperative Banking: Meaning, Structure & Advantages Th

This guide is your manual to understand trade credit - the financial GPS that can keep your collaborations running smoothly, making success your constant companion.

Trade credit is an arrangement wherein a supplier allows a buyer to purchase goods or services, deferring payment for a specified period. It serves as a short-term financing option. Typically, trade credit terms outline the credit period, interest rates, and repayment conditions. Credit terms in international trade aren't uniform,&nbsp; varying across businesses and industries.&nbsp;

Trade credit is a common practice, enabling companies to maintain inventory levels, meet operational needs, and navigate economic fluctuations.&nbsp;

Credit limits are not static and can change over time based on the buyer's evolving credit history, based on assessment of the creditworthiness. Borrowers who consistently maintain a positive credit history may find opportunities for credit limit increases.&nbsp;

Consider this case study of Grasim Pvt Ltd. and US Fitness Inc.

In a <a href="https://www.skydo.com/blog/building-a-global-network-for-your-cross-border-business?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">cross-border collaboration</a>, Grasim Pvt Ltd., known for its custom mobile applications, engages with US Fitness Inc., a leading US fitness firm. The task involves delivering three specialized mobile apps tailored to suit the unique needs of US Fitness Inc.’s operations.

According to the terms, US Fitness Inc. commits to making payments within fifteen days of receiving each mobile application. Grasim Pvt Ltd. delivers the first app as the collaboration unfolds, and US Fitness Inc. has a fifteen-day window to complete the payment. This process repeats for the subsequent two applications, each installment with a fifteen-day payment timeline.&nbsp;

The trade-credit terms allow US Fitness Inc. to evaluate each application before making payments. This arrangement aids their decision-making process and benefits the working capital requirement.&nbsp;

For Grasim Pvt Ltd., the trade credit terms provide a stable cash flow, with staggered payments offering financial predictability throughout the transaction. This case study exemplifies the strategic use of trade credit in <a href="https://www.skydo.com/blog/cut-international-transaction-costs-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">international transactions</a>, fostering a mutually beneficial relationship between the two businesses.

Open account trade credit allows buyers to receive goods upfront and defer payment within an agreed period.

Trade acceptance introduces a more formal structure where a detailed draft outlines payment terms.

A promissory note is a written commitment where the borrower pledges to repay a specific amount by a predetermined date.&nbsp;

Understanding different types of effective financial arrangements is crucial for the following reasons:

Recording trade credit involves choosing between cash and accrual accounting methods, each impacting financial statements and cash flow differently.

mediaLibraryStrapi

The accounting of trade credit transactions is done when actual payment occurs. This provides a straightforward view of actual cash movements, making it simpler for small businesses. However, it doesn’t accurately represent the financial health as it doesn't consider credit transactions until payment.

Accrual accounting recognizes transactions when incurred, not when cash changes hands. For trade credit, this means recording transactions when goods or services are received, regardless of the payment date. It accurately represents a business's financial position, requires meticulous record-keeping, and may not align with actual cash flow.

<a href="https://www.skydo.com/blog/top-accounting-tools-for-tech-exporters?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Cash accounting</a> can make cash flow appear more stable. Accrual accounting, however, may reveal fluctuations in financial health, showing credit transactions that still need to translate into cash.&nbsp;

Larger businesses therefore adopt accrual accounting, which complies with Generally Accepted Accounting Principles (GAAP) and provides a more comprehensive financial picture.

The Cost of Trade Credit and How to Calculate It

Grasim Pvt Ltd. offers US Fitness Inc. a 2.5% discount on the project cost of 1 million USD for making payment within 7 days. The calculation of the early payment discount is as follows:

Early Payment Discount = 1,000,000 USD × 2.5% = 25,000 USD

However, US Fitness Inc. must weigh this discount against the value of their working capital. For example, if it needs to borrow funds for early payment, then the cost of borrowing must not exceed the early payment discount.

In the above example, late payments by US Fitness Inc. would incur a 1% penalty on the project cost. The calculation for late payment penalties is as follows:

Late Payment Penalty = 1,000,000 USD × 1% = 10,000 USD

To avoid these penalties, US Fitness Inc. must evaluate each delivered mobile application within the fifteen-day window, aligning with their decision-making process and minimizing the risk of late payments.

Best Practices for Extending and Utilizing Trade Credit

Implementing these best practices enhances the effective management of trade credit, minimizes risks, and optimizes financial resources for businesses.

1. Regularly Check and Analyze Customer Credit History

3. Finance Trade Receivables Through Invoice Discounting or Factoring

Trade credit is a catalyst for business expansion, fostering mutually beneficial relationships. But one must maintain a delicate balance in controlling credit and payment terms.&nbsp;

Businesses can navigate the complexities of trade credit by regularly assessing customer credit histories and considering tools like trade credit insurance. This proactive management safeguards against potential pitfalls and sets the stage for a resilient and prosperous B2B ecosystem.&nbsp;

Ans: Any business that buys and sells goods or services can use trade credit. Trade credit is particularly common in the business-to-business (B2B) context.

Ans: The cost of trade credit is the interest or discount a business may incur when it uses credit terms to make purchases. It is essentially the opportunity cost of not paying for goods or services upfront.

Ans: Trade credit can be long-term and short-term, depending on the agreed-upon terms between the buyer and the supplier. Short-term trade credit is more common, with payment typically due within a few weeks or months after the delivery of goods or services. However, some trade credit arrangements may extend to longer periods (in specific industries).

large_What Is Trade Credit Th

medium_What Is Trade Credit Th

small_What Is Trade Credit Th

thumbnail_What Is Trade Credit Th

What Is Trade Credit Th

Professional Tax is governed and levied by the respective state governments' professional tax acts. The amount you owe in taxes varies based on factors such as income, the nature of the profession, and the state in which the individual operates.

Here is everything you need to know about PT as a <a href="https://skydo.com/blog/freelancer-earning-potential-in-2024?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">freelancer</a>.

If a person is salaried, the employers are responsible for deducting the professional tax amount directly from the salary. However, the government requires professionals such as <a href="https://www.skydo.com/blog/top-5-new-age-freelance-services-going-to-take-off-in-2024?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">freelancers</a> to pay the P tax directly to their state government. Professional tax meaning is not based on income but rather on the nature of the profession or employment. It is meant to contribute to the state's revenue and development. The professional tax differs from other types of taxes mentioned below.&nbsp;

Here is the basic structure of professional tax in India.

Calculate your Professional Tax Liability

<a href="https://vakilsearch.com/professional-tax-registration/how-professional-tax-calculated">Professional tax liability</a> depends on a freelancer's state of operations and earnings. However, irrespective of these two factors, the professional tax limit is Rs 2,500 for a month.

Here is the process of how to calculate professional tax on salary or earnings.

To minimise your professional tax burden as a <a href="https://www.skydo.com/blog/top-10-freelancing-truths?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">freelancer,</a> leverage deductions and exemptions available in your location. Here are some deductions and exemptions that freelancers can utilise:&nbsp;

You can use various accounting software or apps, such as <a href="https://khatabook.com/?utm_source=google&amp;utm_medium=search_ads&amp;utm_campaign=brand-gen_kw&amp;gad_source=1&amp;gclid=CjwKCAiA8sauBhB3EiwAruTRJhfwyGzRw85xwgamLcwna0oixY1MjScYAHjtZdAMqNRewwPZ1LRiqxoCVp8QAvD_BwE">Khatabook</a>, <a href="https://open.money/automated-accounting?utm_term=accounting%20automation&amp;utm_campaign=IYD_AP_Automation&amp;utm_source=google&amp;utm_medium=ppc&amp;hsa_acc=9660999868&amp;hsa_cam=20910601824&amp;hsa_grp=163502573492&amp;hsa_ad=689290766627&amp;hsa_src=g&amp;hsa_tgt=kwd-300068243667&amp;hsa_kw=accounting%20automation&amp;hsa_mt=p&amp;hsa_net=adwords&amp;hsa_ver=3&amp;gad_source=1&amp;gclid=CjwKCAiA8sauBhB3EiwAruTRJoBtiurqa_a2MAgb-mcQBj-Ab196-Oe822q4DWHxHHuVZ4XjCLSZORoC_0cQAvD_BwE">Open Money</a>, <a href="https://tallysolutions.com/download/#gref">TallyPrime</a>, etc., to keep track of your expenses. Furthermore, it is wise to regularly reconcile your financial records to ensure accuracy and identify potential deductible expenses.

Certain freelance professions or industries may be subject to specific taxes or regulations beyond professional tax and income tax. For example, online content creators, such as bloggers, YouTubers, and influencers, may need to comply with digital services taxes or regulations specific to online advertising revenue.

Hence, consulting a tax advisor or <a href="https://www.skydo.com/blog/top-online-communities-you-should-join-as-a-freelancer-in-2024?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">researching extensively</a> is important to know your compliance and taxation liabilities. You may also <a href="https://www.skydo.com/blog/how-to-file-gst-monthly-and-quarterly-for-freelancers?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">have to register for GST</a> if your annual income from freelancing is above Rs 20 lakh.

Proactively managing your professional tax obligations <a href="https://www.skydo.com/blog/importance-of-fira-for-freelancers?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">as a freelancer</a> can minimise tax burdens and avoid potential penalties or legal issues. Moreover, seeking professional advice from tax consultants or accountants can provide invaluable guidance tailored to your specific circumstances.

For further resources on freelancing, you can read <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo’s</a> <a href="https://www.skydo.com/blog?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">blogs</a> and open a free virtual currency account if you receive<a href="https://www.skydo.com/blog/how-do-you-receive-a-foreign-remittance-in-a-savings-account?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link"> foreign remittances.&nbsp;</a>

Professional Tax for Freelancers in 2024 th

large_Professional Tax for Freelancers in 2024 th

medium_Professional Tax for Freelancers in 2024 th

small_Professional Tax for Freelancers in 2024 th

thumbnail_Professional Tax for Freelancers in 2024 th

<a href="https://www.skydo.com/blog/set-up-your-freelance-international-bank-account-in-just-5-minutes?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Banking operations</a> previously required visiting branches. Today, they are being heavily digitised, as users want to have access to banking services instantly through their mobile phones or laptops.

A new player has emerged on the financial scene – the Neobank. With their <a href="https://www.skydo.com/blog/the-impact-of-open-banking?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">innovative approach to banking</a> and emphasis on digital-first solutions, neobanks are revolutionising the banking sector.

Neobank meaning or neo banking meaning refers to fintech (financial companies backed by tech) that carry out operations similar to banks but are entirely digital and rarely have physical branches.&nbsp;

Neobanks invest heavily in creating a digital-first banking system to provide <a href="https://www.skydo.com/blog/checklist-to-get-the-right-bank-for-your-export-service-firm?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">cutting-edge financial services</a> similar to any other traditional bank.&nbsp;

Neobanks are not directly governed and regulated by the RBI but have various banking partners such as HDFC, ICICI, and Axis Bank to assist them in providing financial services through their banking infrastructure and channels.&nbsp;

Neobanks offer banking services such as savings accounts, checking accounts, payment processing, money transfers, and sometimes lending services entirely online.&nbsp;

Neobanks leverage technology extensively to provide a seamless and convenient banking experience. They often incorporate advanced features such as instant money transfers, automated budgeting tools, personalised financial insights, and round-the-clock customer support through chatbots or online messaging.

Here is how you can open a Neobank account online.

There are more <a href="https://www.startuphrtoolkit.com/neobanks-in-india/">than 20 neobanks in India</a>. Thus, comparing them on their cost structure and services is important.&nbsp;

Download the mobile app of the neobank or visit their website to start the account registration process. You will have to provide personal details such as name, date of birth, address, email, phone number, and identification proofs such as PAN or Aadhar. Then, choose the type of account you want to open.&nbsp;

Once you have submitted the account opening application, the neobank verifies the provided information. After successful verification, they set up the account.&nbsp;

Step 4: Confirmation and Activation&nbsp;

Once all steps are completed, you will receive confirmation that your account has been successfully opened. You may need to activate your account by following the instructions provided by the neobank, such as verifying your email or phone number.

Some common features offered by the best neobanks in India include the following.

For a better understanding of neo-banking meaning, here are the pros and cons of neobanks.

India has numerous neobanks that offer their services with unique banking features. Here are the top <a href="https://www.startuphrtoolkit.com/neobanks-in-india/">10 popular neobanks examples in India</a>.