Frequently Asked Questions

What are the limitations of new GHS? Why another form of GH is required?

In new GHS we are limited to opening upto 25% of the net worth of the company as per regulations introduced under companies’ act 2013. At 25%, we would roughly be 60% of our old GHS levels. For example, if in the old GHS we had done sales of Rs 2500 Cr in one year, with the new GHS, we will be able to do Rs 1500 Cr. In next few months, we will start running out of our limits very early.

How will TJP operate?

Please refer SOP attached in an excel sheet in the same mail.

What will be discount benefit to the customer in TJP?

Discount = 12% ( Same as our new GHS )

The discount comprises of RD rate of return which ICICI Bank will pay (current rate of return is 8.75%) Remaining 3.25%, Tanishq will bear.But above information should not be shared with the customer as this may invoke some unnecessary questions from the customer side. Customer should be communicated the total benefit, like we do in new GHS.

Tax will be deducted at source under section 194A of the Income Tax Act, 1961 if the total interest amount earned by the customer on FD (for the entire financial year) and RD (from June 1, 2015 onwards) exceeds Rs 10,000

What will be the benefit of Tanishq Jewellery Plan (Tanishq ICICI GHS) for TITAN?

1. We are allowed to open unlimited number of enrolments
2. It is a golden opportunity to regain the lost sales due to regulations introduced under Companies Act.
3. Entire operations of the plan would be managed by ICICI Bank
4. Access to massive ICICI footprint i.e. over 3800+ branches, 12000+ ATMs, 20 Million salary accounts. We can do all sorts of enrollment activities cum promotion activities at over 26000+ companies where ICICI has salary accounts.

What will be the benefit of Tanishq Jewellery Plan (TJP) for the customer?

1. If the customer is an ICICI Bank A/c holder, he need not give any document i.e. ID proof at our store.
2. There will be high flexibility at redemption time i.e. there will be no condition like 390 days, which we have in our new GHS. Customer can redeem 6 months after completion of 12 months of TJP
3. More Absolute Benefit: TJP offers absolutely similar discount benefit i.e. 12% as our new GHS, however since the number of installments are higher, it offer slightly higher discount in absolute terms.
4. Payment flexibility- Customer need not come to showroom every month or pay via internet banking or pay via ACH etc. There will be a simple standing instruction (SI) to debit every month from his account at his due date.
5. Decision Flexibility- We should not encourage this but if a customer needs flexibility to either buy jewellery or take cash, he can do that. In that case he will get RD rate of return from his bank.
6. No passbook in TJP. Hence there is no ONUS on the customer to maintain the passbook and get it regularly updated.
7. No Id proof/documents required at the btq- Boutique just needs to fill the enrolment form. No need of any ID proof required at the boutique level. All documentation will be done by ICICI Bank representative.
8. Expert Backup: Customer will get pure play financial services benefit which as a jeweler we don’t have capabilities. ICICI Bank will put all its financial and technological expertise to manage these accounts
9. Simplicity- This will be a very simple scheme as compared to our new GHS.
10. This will not require any transfer facility as all accounts will have a central control and ability to redeem at any location
11. Greater redemption security- All accounts would be redeemed via a pin number given to the customer.

What are the limitations of Tanishq Jewellery Plan?

1. Customer after walking out of the store may change his mind and not enroll
2. Since the customer has the flexibility to take cash refund with RD return, customer may request bank to credit him the money, instead of him buying jewellery at our showroom
3. Like in our GHS, we allow prematurity for jewellery, in TJP customer will have to claim the money from the bank and then buy jewellery from us.
4. There is no grace period for the customer in paying installments as it is calculated by bank.
5. Tax will be deducted at source under section 194A of the Income Tax Act, 1961 if the total interest amount earned by customer on FD (for the entire financial year) and RD (from June 1, 2015 onwards) exceeds Rs 10,000.

However, you will notice that benefits of this programme far outstrip the limitations and it is a great opportunity for us to maximize our planned purchases like in old GHS.

Under what scenarios store should pitch the TJP to the customer considering we already have our own GHS?

1. When the store runs out of its GHS limit which is going to happen very often in next few months
2. When the customer is an ICICI Bank savings account holder
3. Customer needs flexibility of redemption time
4. Customer needs more absolute benefit
5. Customer needs payment and decision flexibility as mentioned above

What are the ways by which the store can maximize these enrolments?

The store now has the access to doing camps at ICICI branches and thousands of companies where ICICI has salary accounts. The store needs to do various joint exercises with ICICI bank staff. Lot of outdoor enrolments can happen without any payment concern and with full security. Also since ICICI branch network is much wider than us and they are present in many adjoining towns where we are not present. Lot of activities can be done there. It offers whole lot of opportunities.

Which are the most important points which a RSO should mention to the customer?

1. Customer should read all terms and conditions in the application form before signing them
2. All transactions of the customer will be managed by ICICI bank and hence the customer should contact the bank for any query.
   a. In case the bank is not able to revert to customer’s query within a stipulated period, he can share his/her concern with us. Store need to escalate to corporate office.
3. In case the customer wants to take back his money as refund, he needs to contact the bank. Tanishq Store will have no role in that.
4. In case customer wishes to drop before 12 months and wishes to buy jewellery. He first needs to claim refund from the bank and then buy jewellery from us. However, he will not get any discount benefit.
5. Customer will be eligible to club any ongoing offer our store with his total amount including discount, like we do with our GHS.

Commercial terms and conditions

1. In case if there are joint account holders in the ICICI bank TJP, we will invoice in one of the customer name and also issue encircle card in one of the customers in the joint account.
2. Boutique has to ensure to get id proof the customer who is redeem the account.
3. No partial redemption is permitted against the Tanishq CUG card, however on case to case basis jew.commercial team will give solution.
4. The maturity date shall be strictly calculated 12 months after the account opening date in ICICI Bank records. Prepayment of monthly installments for whatever reason will not alter the maturity date for purchase of jewellery.
5. In case the customer fails to pay his installments on time, there will be pro-rated deduction in his benefit.
6. In addition to the gold and stone charges, all jewellery purchased under the TJP will be subject to labour charges, making charges, wastage charges, sales tax or value added tax or surcharges as may be applicable.
7. No discount on purchase of jewellery will be given in case of premature closure of the TJP.
8. In the event of loss of the original Tanishq CUG card, customer needs to get in touch with the bank for re-issuance of a new card. Boutique has to inform the jew.commercial team and ICICI bank to block the card.
9. All other rules of a normal BANK RD are applicable on this account. Refer ICICI Bank website for more details.