WhatsApp to enter digital payments in India next week, partners with 3 banks

Facebook is all set to launch its WhatsApp payment services in India as early as next week, reports Mint.

WhatsApp Pay has partnered with HDFC Bank, ICICI Bank and Axis Bank for transaction process. State Bank of India (SBI) will also join once it has the necessary systems in place, according to people privy to the information.

Facebook was eyeing a full rollout with four partners but decided to go ahead with just three as competitors in the space were racing ahead.

Many are comparing WhatsApp’s entry into digital payment space to that of WeChat which had reshaped payments in China expanding beyond messaging.

A pilot version of WhatsApp Pay, launched in February with 1 million users, received rave reviews, threatening the market share of its rivals Google Tez and Alibaba-backed Paytm. Both platforms lack the benefits of a social network.

“WhatsApp has a great starting point: a monopoly in chat,” said Vivek Belgavi, Leader for Financial Technology at PwC India. “High engagement makes it a credible competition.”

More than 200 million Indians already use WhatsApp messaging, equivalent to 60 percent of the US population and a daily active usage that Forrester Inc. estimates to be about 20 times higher than Paytm’s.

WhatsApp’s entry in India’s payments space marred with controversies

When WhatsApp first entered India’s payments space with its pilot project it was surrounded with controversies. Paytm’s CEO Vijay Shekhar Sharma had accused the company of trying to enter the market via unfair means.

Among the concerns raised by the Paytm founder was the fact that WhatsApp’s trial service does not require a login session and Aadhaar-based payments. Sharma believed a lack of a login makes WhatsApp payments a security risk, akin to giving an open ATM to everyone.

 

Source by:-moneycontrol

Tax implications of SIP: Know all about how tax is calculated on mutual fund SIPs

SIP (Systematic Investment Plan) is the best way to invest your money in mutual funds (MFs) for creating wealth over a long period and achieving your long-term goals. However, to make the most of SIPs, it is also necessary for you to be aware of its various tax implications.

When you redeem mutual fund investments, you are liable to pay capital gains tax in that year. Capital gains on SIPs are applicable on a First-In-First-Out (FIFO) basis. What this means is, the gains are calculated against each instalment, starting from the first one.

Suppose you have a monthly SIP of Rs 10,000 in an equity fund, running from 1st March 2017. You decide to redeem Rs 50,000 on 10th June 2018. Investments from the earlier months will be redeemed until the amount specified is reached.

For equity funds, redemption made beyond 12 months of purchase attracts Long Term Capital Gains (LTCG) tax while redemption up to 12 months attract Short Term Capital Gains (STCG) tax. So, in this case, LTCG tax will be applicable  on gains from the first three months and STCG tax on gains of the fourth month of your SIP, as illustrated below:

Date NAV Units allotted(10,000/NAV) Value of units sold @ NAV 27.5 on 10thJune 2018 Gains/Profits Tax
1st Apr 2017 21.25 470.59 12,941 2,941 LTCG
1st May 2017 21.68 461.25 12,685 2,685 LTCG
1st June 2017 22.41 446.23 12,271 2,271 LTCG
1st July 2017 22.72 440.14 12,104 2,104 STCG
1st Aug 2017 23.04 434.03 11,936
1st Sep 2017 23.45 426.44 11,727
1st Oct 2017 23.89 418.59 11,511

However, you will have to pay the tax only if your aggregate gains from equity exceeds Rs 1 lakh in a year. This includes gains from both equity mutual funds and direct investment in shares.

The same principle of tax calculation applies to SIPs in the non-equity funds. The only difference is in the investment holding period; for non-equity funds LTCG is applicable beyond 36 months and STCG up to 36 months.

Some more pertinent things to note:

# Your equity fund SIP redemptions are taxable only if your gains from equities exceed Rs 1 lakh in a year.

# Tax rates are different for equity and non-equity funds. They are higher for non-equity funds by 10-15%.

# If you have invested in the dividend option, Dividend Distribution Tax (DDT) will be applicable.

# TDS is applicable for NRI (Non-resident Indians) investors.

Tax rate ready reckoner:

SIP in LTCG STCG DDT
Equity funds 10% 15% 10%
Non–equity funds 20% with indexation 30% 25%

 

Source by:-financialexpress

EPFO cuts administrative charges; employers to save Rs 900 cr annually

New Delhi: Now over 5 lakh employers together would save around Rs 900 crore annually following the retirement fund body EPFO’s decision to cut administrative charges, with effect from June 1, 2018. The Employees’ Provident Fund Organisation’s (EPFO) trustees had decided to cut the administrative charges to 0.50 per cent from 0.65 per cent of total wage paid by employers in its meeting on February 21, 2018.

“The labour ministry has notified the decision to cut administrative charges, which would be effective from June 1, 2018. This will encourage employers to formalise their workers employment by bringing them under the ambit of social security schemes run by the EPFO,” the retirement fund body’s Central Provident Fund Commissioner V P Joy told PTI.

The EPFO decided to cut the administrative charges in view of its expanding business and high recovery of such fees. According to the EPFO estimates, the employers would save in total around Rs 900 crore annually after this move.

During the last fiscal, the EPFO had collected around Rs 3,800 crore as administrative charges from the employers for running its social security schemes.

The EPFO has accumulated surplus of over Rs 20,000 crore in the administrative charges account which earns an interest income of over Rs 1,600 crore per annum.

Explaining the rationale behind cutting administrative charges, Joy said the EPFO would not be affected by the cut in administrative charges because of increasing subscribers’ contribution base.

The administrative charges are levied as proportion of total wages of employees on which employers pays their contribution.

The EPFO had reduced administrative charges from 1.10 per cent to 0.85 per cent from January 1, 2015. It was further reduced to 0.65 per cent from April 1, 2017.

The EPFO has a subscribers’ base of over five crore and the body manages a corpus of over Rs 10 lakh crore at present.

Source by:-timesnownews

Latest Fixed Deposits interest rates: SBI, Post Office, HDFC, ICICI, PNB, Axis Bank compared

Fixed deposit (FD) accounts offered by banks and post offices is a financial instrument that provides the customer with a higher rate of interest than their savings and recurring deposits. The interest rates remain fixed until a particular maturity period. The rates don’t change and the subscribers know about the returns that he/she will make on his/ her FD investment at the time of applying. The banks and post offices are the best option to open a fixed deposit account. To open a fixed deposit account, a customer needs to have a savings bank account in a particular bank and branch. The rates of interest, however, vary from bank to bank. Nowadays an individual can open a fixed deposit account online.

Let us look at the rate of Interest offered by SBI, HDFC, ICICI, PNB, Axis Bank and Post Offices:

SBI: The country’s largest lender provides an interest of 5.75 percent to those who want to fix a certain amount of money from a period of ‘7 days to 45 days’. For a period of ’46 days to 179 days’, it provides 6.25 per cent while for ‘180 days to 210 days’, it provides an interest of 6.35 per cent. For a period of ‘211 days to less than 1 year’ and for a period of ‘1 year to less than 2 years’, it offers an interest of 6.40 per cent. The SBI provides an interest of 6.50 percent for a term of ‘2 years to less than 3 years’, ‘3 years to less than 5 years’ and ‘5 years and up to 10 years’.

HDFC: HDFC is India’s largest private sector bank by assets. To open a Fixed deposit with HDFC Bank, the rate of Interest on Term deposits are calculated in four ways-

(a) The quarterly basis for deposits >= Six months.
(b) Simple interest paid at maturity for deposits < 6 months.
(c) Cumulative Interest or Re-Investment Interest- Calculated every quarter.
(d) Monthly deposit scheme- Calculated every quarter

Given below is a chart showing the details of term deposits in HDFC bank:

ICICI: ICICI Bank, stands for Industrial Credit and Investment Corporation of India is one of the leading private sector bank in the country. The bank has total consolidated assets of Rs 11,242.81 billion at March 31, 2018. The bank has a network of around 4,867 branches and 14,367 ATMs across India. Minimum tenure for Domestic and NRO term deposits is 7 days while maximum tenure is 10 years.

Given below is a chart showing the details of term deposits in ICICI Bank:

PNB: PNB (Punjab National Bank) is one of the oldest bank in India. It commenced its operations on April 12, 1895. During the long history of the Bank, 7 banks have merged with PNB. Minimum tenure for Single Domestic and NRE term deposits is 7 days while maximum tenure is 10 years.

Given below is a chart showing the details of term deposits in PNB:

Axis Bank: Axis Bank is India’s third largest private sector bank. It has around 3,589 domestic branches and 13,977 ATMs across India as on 31st December 2017. Here, an individual can start a fixed deposit with a minimum investment of Rs 5,000 through the Internet or Rs 10,000 through branch offices. For fixed deposits with a period of six months and above, the rates of interest will be calculated on a quarterly basis. Minimum tenure for Single Domestic term deposits is 7 days while maximum tenure is 10 years.

Given below is a chart showing the details of term deposits in Axis Bank:

Post Offices: Post offices also offer an individual to invest in the Fixed Deposit. An individual requires a sum of Rs 200 to open a Fixed Deposit account in it. Minimum tenure for term deposits is one year while maximum tenure is five years.

Given below is a chart showing the details of term deposits in Post offices:

 

Source by:-financialexpress

No free Jet Airways tickets, says airline as it alerts flyers about fake contest

Jet Airways on Wednesday clarified it has not come up with any special offers on its 25th anniversary. It was in response to a fake message being widely shared on social media and WhatsApp claiming that the airline is offering two free tickets to every family to celebrate its 25 years.

In a statement on Twitter, the airline alerted its customers and also advised them to trust information that is shared on its verified accounts. “#FakeAlert There’s a fake link being circulated regarding ticket giveaways for our 25th Anniversary. This is not an official contest/giveaway and we advise caution. Genuine contests & giveaways are hosted only on our verified social media accounts, indicated with a blue tick,” the tweet read.

The free air ticket message that had gone viral on social media asked users to share the message with 20 other friends on WhatsApp. It also claimed that once the message is forwarded, the users will receive tickets within 48 hours by mail. Similar fake messages claiming free air tickets from Air Asia and Emirates went viral in the past.

Jet Airways, the second largest airline in the country after Indigo, operates over 300 flights daily to 65 destinations. It began full-fledged operations in 1995 with international flights added in 2004. The airline went public in 2005 and in 2007, it acquired Air Sahara. The airline flies to various destinations, including New Delhi, Hyderabad, Ahmedabad, Bagdogra, Coimbatore, Bangalore and Pune.

 

 

Source by:-indianexpress

“No One Can Harm Your Bank Account Just By Knowing Your Aadhaar,” Says UIDAI

What if someone gets to know your Aadhaar card number? Can an unauthorized person having access to your Aadhaar number steal money from your bank account? Any Aadhaar transaction requires authentication and no financial transaction can be made in absence of such authentication. This was said by the UIDAI or Unique Identification Authority of Indiaon microblogging site Twitter. Making the general public aware about Aadhaar card security, the UIDAI said: “Just by knowing your Aadhaar number, no one can cause any harm to your bank account…”

That means, an individual having knowledge of someone else’s Aadhaar number – also known as Unique Identity Number (UID) – will not be able to commit a bank fraud against the Aadhaar holder with the 12-digit personal identification number alone. Seeking to allay concerns of Aadhaar holders on safety of their bank accounts, the UIDAI said: “Any transaction requires authentication – biometric (your fingerprint or Iris scan) or OTP (sent to your mobile). Without which, a financial transaction cannot be made.”

“No one can harm your bank account just by knowing your Aadhaar,” explained the UIDAI, the issuer of the 12-digit Aadhaar number as well as the Aadhaar card.

“Aadhaar number alone cannot be used for banking or any other service.” That is a message from the UIDAI on its website – uidai.gov.in – where the Aadhaar-issuing body has debunked many misconceptions. Just like by merely knowing someone’s ATM card number, no one can withdraw money from the ATM machine, according the UIDAI.

Aadhaar authentication requires either a biometric verification or verification on the basis of an OTP or one-time passcode. Biometric verification is carried out by scanning a person’s thumbprint or iris. OTP-based verification, on the other hand, is carried out through an SMS-based verification. This SMS is sent by the Aadhaar system to an Aadhaar holder’s registered mobile number.

The UIDAI has time and again addressed concerns of the Aadhaar card holders. In a separate Tweet, the UIDAI said that digital Aadhaar card or ‘e-Aadhaar’ can be used just like an Aadhaar card in physical form. E-Aadhaar is a digitally signed, verifiable document “as valid as the Aadhaar letter delivered by post”, said the UIDAI.

Meanwhile, the UIDAI has set up a dedicated Twitter handle to address customer queries. Users will be able to reach the Aadhaar Help Centre via Twitter handle ‘Aadhaar_Care’.

Source by:-ndtv

Full Refund, No Cancellation Fee Proposed As New Flight Rules

If a cancellation is made within 24 hours of booking a flight ticket, no charges should be imposed on passengers, the government proposed on Tuesday. The proposal also seeks to provide full refund to passengers if a flight is delayed by more than four hours. The new air passenger charter seeks to amend the current norms for charges incurred by travellers on cancellation and rescheduling of air travel, among other things. During this 24-hour “lock-in period”, passengers would be able to make correction in the name or amend the travel date free of cost, said Minister of State for Civil Aviation Jayant Sinha, while unveiling the draft air passengers charter.
Here are 10 things to know about the draft air passengers charter:
  1. The proposed rule won’t apply if the tickets are booked less than 96 hours (four days) before the scheduled departure time of the flight.
  2. The charter also proposes that passengers would be compensated Rs. 20,000 on missing connecting flights if the delay is over 12 hours, and Rs. 10,000 if the delay is between 4-12 hours, reported news agency Press Trust of India (PTI).
  3.  If the passenger is informed about cancellation of flight less than two weeks before and up to 24 hours of the scheduled departure time, the airline must offer an alternative flight allowing the passenger to depart within two hours of the booked scheduled departure time or refund the ticket, as acceptable to the passenger.
  4. Further, if the flight delay is communicated by the airline more than 24 hours prior to the original scheduled time and if the flight is delayed for more than 4 hours, then airlines will have to offer an option of full refund of ticket.
  5. However, the government made it clear that airlines could not be held accountable in case of weather-related disturbances.
  6. In case of denial of boarding, airlines are liable to pay a minimum compensation of Rs. 5,000 or more, according to the proposed charter.
  7. To make the airlines disabled-friendly, the charter proposes that airlines should have seats – which are accessible for persons with disabilities – blocked, along with provision for adequate leg space, free of charge.
  8. According to the charter, the cancellation charges should be printed prominently on ticket and airlines and their agents together should not, under any circumstances, levy cancellation charge more than the basic fare plus fuel surcharge, reported PTI.
  9. The Directorate General of Civil Aviation (DGCA) could look into issues where the airlines are not in agreement with the passenger on the compensation issue, said Mr Sinha.
  10. The charter has been placed in public domain and the consultation process will be open for 30 days. The new norms are expected to be notified by July 15 after public comments on the draft charter have been received by the Ministry of Civil Aviation. (With PTI inputs)

 

 

Source by:-ndtv

Now get cashless hospitalisation facility on your mutual fund investments; here’s how

Financial planners often advise individuals to set apart at least six months of their earnings as an emergency fund in order to meet unforeseen expenses such as sudden hospitalisation, loss of jobs, etc. Such a fund is generally maintained in cash at home or in a savings bank account, which earns an interest of around 3.5%.

As a means to add value to investment services, mutual fund houses from time to time come up with novel ideas like life insurance cover linked to one’s Systematic Investment Plans (SIP) and others. On the same lines, most of the major MF schemes provided by ICICI Prudential Mutual Fund have a novel feature, called Medical Advantage Feature (MAF), which is designed to address the financial needs during times of hospitalization. This is interesting because arranging funds in times of emergency hospitalisation is a hassle which most often investors live through.

Features of the Scheme

In order to offer this service, ICICI Prudential Mutual Fund has a tie-up with Vidal Healthcare Services, a third party health management and services company, to provide certain value added services to the investors of the mutual fund house. For all practical purposes, Vidal works like Third Party Administrator (TPA).

The services rendered by Vidal are through its pan-India network coverage of more than 5000 hospitals, 1000 diagnostic centres and doctors, spread over 125 cities. Under the MAF facility, an investor with ICICI Prudential Mutual Fund gets cashless hospitalization facility through their investments made in selected schemes with the fund house. So, with cashless hospitalisation against one’s investment, there is no need to worry about arranging money for hospitalisation as long as value of the investments made is sufficient to address the expected cost of treatment.

In addition to cashless facility, there are a slew of free facilities that one can avail. Under MAF, one has access to doctors on helpline no. 080 49101010, such that a health query can be addressed. Also, one has the option of seeking second opinion on submission of one’s medical reports. The other benefit is that the investor can avail discount of up to 25% in selective hospitals, diagnostic centre and pharmacies. There is a dedicated helpline number to aid investors to access the closest network hospital in case of an emergency and avail discounts, if any. The highlight of these offerings is that all of the above-listed benefits are free. So, one can avail these facilities free of cost, without making any hole in your pocket or even in your investments with the fund house. Please note that the MAF enrolment does not stop an investor from redeeming one’s investment for other requirement.

Who can avail these benefits?

MAF can be availed by an existing as well as a new investor. Currently, MAF is available across 45 schemes covering all categories ranging from liquid funds, short term funds to equity funds. This facility is available on direct and regular plans as well as growth and dividend options of the specified eligible scheme. You can avail this against your SIP or lump sum investments.

Under this facility, an investor can cover one’s family members like spouse, parents, in-laws and two dependent children. While filling the form, it is advisable to make investments in either or survivor mode so that any of the holders can transact in the scheme in case a need arises. Apart from individuals, companies too can nominate and enrol their employees for availing this facility against investments made by them.

How MAF functions

For availing these facilities, one has to opt for MAF while making one’s investments. Once registered, a Medical Advantage Card is issued by Service Provider either in physical or electronic form. This is sent to one’s registered address mentioned in the folio.

At the time of hospitalisation (planned/unplanned), the investor has to inform Vidal Health in order to avail cashless facility at a network hospital. Post intimation, one has to sign a special redemption form, called medical redemption, which will be made available at the hospital. Here, based on initial estimate given by the hospital, the service provider redeems some units immediately, while some more units are earmarked/ blocked for subsequent payment. The proceeds of redemption are then credited to the service provider who pays to the hospital.

Please remember while applying for the redemption request, one has to keep in handy documents such as the Medical Advantage Card issued and other identification papers as listed by the service provider. In special circumstances, if the investor is not in a condition to sign the redemption form, the same can be signed on his/her behalf by Vidal Health.

Final Take

MAF is not an insurance scheme to cover cost of your hospitalisation, but a facility extended by ICICI Prudential Mutual Fund to utilise the money invested in their schemes to meet hospitalization expenses. As a result, the investments in selected schemes can double up as your emergency fund as well, instead of keeping cash at home or even in a savings bank account. Also, this facility can come in very handy in case of any medical emergency, while on a vacation, away from one’s home, thereby making it a very attractive proposition.

Source:- financialexpress

What you don’t know about Aadhaar

NEW DELHI: The 12-digit unique identity, Aadhaar, provides identification to more than a billion Indians. Its ability to uniquely identify individuals and its digital interface have made it a compelling identification platform.

Even though the government is taking various measures make it a necessity to avail of financial services, subsidies and so on, not many people are aware of the Aadhaar related nitty-gritties. A recent study, State of Aadhaar, conducted by IDinsight, a global development analytics firm, found that only 7 percent were aware of the full Aadhaar authentication process.

The survey covered 2,947 rural households in 21 districts across the states of Andhra Pradesh, Rajasthan, and West Bengal.

While 85.1 percent of the people surveyed were aware of fingerprint authentication, less than half of them, i.e., 41.6 percent, know that Aadhaar enrolment is free of cost.

With regards to safety of data, although many are afraid about the possibility of misuse of information linked and stored, not many know about the precautionary measures that can be taken.

To prevent misuse of Aadhaar data, the Unique Identification Authority of India (Uidai) provides a mechanism to lock the biometric information. Biometric information refers to the iris and finger prints scans which are used for authentication. The survey notes that only a lowly 3 percent Aadhaar cardholders are aware of biometric locking and unlocking.
Here’s a snapshot:

High number of self-reported errors
The study found that the Aadhaar has more self-reported errors than the voter ID database. According to the study, 8.8 percent of Aadhaar holders reported errors in their name, age, address, or other information on their Aadhaar letters. Compared to this, the error-rate of the voter ID database is 5.7 percent. What this means, is that the error-rate on Aadhaar was 1.5 times higher.

e-KYC, update Aadhaar card and all that you can do with government's mAadhaar app

This is of significance because of the since the government made it mandatory to link PAN card with Aadhaar for income tax returns to be processed, many were unable to do it due to mismatch in data in both the IDs. Further, since many people couldn’t comply to this directive, the government had to extend the Aadhaar-PAN linking deadline a few times. As per the UIDAI website, the turnaround time for Aadhaar updation is 90 days.

Exclusion from Public Distribution System due to Aadhaar related issues
Not just the errors, the report also highlights that exclusion from receiving benefits due to Aadhaar-related factors have been significant. While the government has repeatedly insisted that no beneficiary should be denied benefits due to lack of Aadhaar, the IDinsight report suggests that on the ground this is not what is happening.

According to the study, 0.8 percent, 2.2 percent, and 0.8 percent of Public Distribution System (PDS) beneficiaries in rural Andhra Pradesh, Rajasthan, and West Bengal, respectively, are excluded from their entitlements due to Aadhaar-related factors. This extrapolates to about 2 million individuals a month. However, non-Aadhaar reasons, such as ration unavailability, contribute much more to exclusion from PDS. Aadhaar-related issues refer to non-seeding of Aadhaar and mismatch in biometric data.

Overall, monthly exclusion from PDS in Rajasthan is 9.9 percent, whereas it is 1.1 percent in Andhar Pradesh.

Ajay Bhushan Pandey, CEO of Uidai, said, “PDS exclusion due to failure of local administration, should be taken very seriously by the concerned agencies. They should ensure that not a single beneficiary is denied. The Aadhaar Act and Government instructions provide for alternate means of identification for genuine beneficiaries who encounter problems in authentication.”

Section 7 of the Aadhaar Act states that Central or State Governments can make possession of an Aadhaar number or Aadhaar authentication mandatory for receipt of subsidies, benefits or services funded out of the Consolidated Fund of India. At the same time, the section also states that an individual who has not been assigned an Aadhaar number, shall be enrolled for Aadhaar and offered an alternate and viable means of identification for receipt of subsidy, benefit or service till the 12-digit biometric number is assigned to him.

Aadhaar based e-KYC has limited reach

The study found that Aadhaar’s digital usage for financial inclusion (e-KYC) has had limited reach, while its analogue version (the letter or card) has been an enabler of inclusion, particularly in opening bank accounts. The physical Aadhaar card is much more widely used to open bank accounts than its digital version. As per the survey, 67 percent of bank account holders used their Aadhaar letter to open their most recent account, while only 17 percent used e-KYC. Ronald Abraham, partner at IDinsight, says “While the ease of Aadhaar based e-KYC needs to be promoted, the government also needs to safeguard the data of analogue users, which is as high as 67 percent.”

People are still okay with Aadhaar

Despite all these issues, the study found that 87 percent of people approved of the government’s mandatory use of Aadhaar, while 76.9 percent approved Aadhaar’s mandatory use by the private sector. 77 percent of respondents approved of the mandatory linking of Aadhaar to services, including mobile.
Although the respondents are fine with mandatory linking their Aadhaar with various services, they do value their right to privacy over everything else. Over 96 percent of respondents valued privacy and think it is important to know what the government will do with their Aadhaar data.
Source by:-gadgetsnow

GST return filing deadline for April extended till May 22

New Delhi: The government has extended the due date for filing GST summary sales returns for April by two days till May 22 following technical glitches on the online portal of GST Network. An official statement said that certain technical issues are being faced by the taxpayers during the filing of GSTR-3B for April.

“In order to resolve the same, emergency maintenance is being carried out on the system. Therefore, in the interest of taxpayers it has been decided to extend the last date for filing of returns in GSTR-3B for the month of April by 2 days till May 22,” the statement said.

The goods and services tax (GST) mop-up in April — the first month of current fiscal — came in at Rs 1.03 lakh crore.

From 2018-19 fiscal year that began last month, the government has shifted to a cash basis of accounting where revenues accrued at the completion of a month would be taken on record immediately at the end of the month.

Accordingly the Rs 1.03 lakh crore GST collected in April reflects the central GST and state GST which accrued in March.

The GST collections which accrue in April and collected in May will be released on June 1.

Meanwhile, GST Tech, which is the official twitter handle for IT related queries on GST tweeted: “Due to emergency maintenance activity, GST Portal will be unavailable on 18th May, 2018, from 2:45 PM to 3:15 PM”.

Source by:-timesnownews

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