Why we are obsessed with money

What a way to exist!

For most of us, practically the whole day all we are thinking is about money and more specifically how to have more money!

As if money was the only thing in life. Unfortunately for most of us, circumstances just do not permit any other thought!

We are running behind money most of the time which is almost akin to have become obsessed with money. Everything that we are doing in life is centred around money.

Unfortunately, this is because we need money for anything and everything that we do. There’s nothing wrong and what are you doing, however the problem is that over time, it becomes a compulsive habit to keep earning more.

That’s where the danger is. The problem is that there is a point where from we chase money as an addiction, we chase money because we like to do so. If we did not chase money we would not know what to chase now because we get out identity from money and the amount of money we have.

Another thing is that right from childhood we are always taught and our minds are conditioned that everything that we are doing is going to be for the sake of earning money.

There is no one who told you that money is just a means, and then there is something greater in life to achieve. Some examples are legacy; building something, charity; to giving something / helping someone, passion; pursuing something and living; simply to enjoy life and your money

We have got addicted to this and how!

There are three reasons for this:

First, we are what we do. It is the human behaviour. I know I should exercise and I don’t. I know I should eat healthy and I don’t. I know I should spend time with my kids and I don’t. I know that, yes, money isn’t going to make me happy and I still keep trying to make money.

We live by the laws of inertia, in a pattern which is hard to break. But we have to break it. For ourselves and for the sake of people and reasons for which we are chasing money.

Secondly, we need signals of progress. Money is a measure of how far you have progressed in life. The more the money you have the more you can make sure your progress. It’s simply the logic of evolution. People need validation of their success. Bigger house, bigger car, branded goods and list goes on.

Thirdly, it’s the easy way out. It’s only human to avoid difficult things. Important things are very difficult to measure.  Have I been a good father or husband? Have I groomed my child well?  Such things take years to measure and we still don’t have answers.

So, should we not be focused on creating money for ourselves?

I’m not saying that. Definitely create. Take care of yourself for sure!! Use it to the maximum to make yourself happy!!! You need a certain amount and beyond that is extra.

The definition of their certain amount is naturally different from one person to another. If that extra is going to happen easily, without stress and without your involvement, then its fine. Basically don’t kill yourself for that extra. Be Smart.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a certified financial planner, wealth manager and financial freedom coach.

How the RBI actually helps you

RBI

Most of us in Mumbai, see this huge structure called the Reserve Bank of India and wonder what it really does. It’s also a tourist attraction!! It has so many other offices and again one wonders why they need to have so many offices. I’m going to try and highlight a very interesting part of RBI’s work and how it helps us directly on a day-to-day basis.

The RBI does a review of the monetary policy of the country at frequent intervals during the year. So how does the monetary policy help us investors to take smart decisions?

Monetary policy is a tool by which the RBI decides to raise interest rates or reduce interest rates or keep them steady.

In our country, as we’re an oil importing nation, this decision is very closely linked to Oil. Oil to a large extent contributes to inflation. We all know what happens when inflation keeps rising. We in India unfortunately do not see too much of inflation falling and things becoming cheaper.

Oil is Not Well

So when oil prices rise i.e. we see a rise in crude oil prices almost instantly we can expect rising food prices. This is because there is going to be a rising cost pressure for manufacturing & services. This rise obviously gets passed onto the retail consumers.

When this happens RBI adopts a hawkish stance, tries to pull money out of the system by raising interest rates. Now when interest rates rise no one seems to be interested in borrowing. This immediately puts a brakes on money circulation.  Less money chasing goods decreases the demand for money. This way it controls inflation.

There is yet another tool that the RBI has and that is known as the CRR or the cash reserve ratio.  This ratio in simple words means the amount of cash that the bank must maintain with the RBI as the percentage of the total assets. So when this increases banks are forced to park more with the RBI and this is also a way to control inflation.

On the other hand when things look dull, when there is a recession of sorts, the RBI comes to the rescue and gets into action to kickstart growth in the country. It does this by lowering the interest rates. This we all will understand quite easily because we see a direct benefit of this happening. We see a fall of interest outgo in our EMI’s for the home loan that we are carrying. New loans become cheaper.

Individuals are motivated to go out and make purchases, whether it is for a washing machine or a piece of real estate. Businesses are motivated to go out and borrow to buy more machinery, to expand capacity, to hire more staff and manpower and basically do everything that will add to the growth of business.

Economic growth results as a result of all this. It is also during this time that stock market rises, we see a rally in stock prices and mutual fund NAV’s jumping higher and higher each day. There is prosperity all around.

Critical Role

As you can see that the central bank of the country has a very very important role to play.  If it makes a mistake, things can go really wrong.  Imagine like the USA or Japan if our interest rates were very low; everyone would run to borrow, they would borrow more than they require because it would be cheap and easy to borrow. And that is very individuals would run into what is known as the debt trap, because someday you’ll have to pay back.

Each day the central bank attempts to make sure that everything in our country remains stable and financially there’s nothing that goes wrong dramatically.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager & Financial Freedom Coach.

The year of the bond, once again!

We are not talking of James Bond, we are talking of investment bonds.

We are in a situation where the fixed deposit rates are at a general low and there is a lot of discontent among depositors of fixed deposits.

Whenever we see a situation like this, one way or the other, the bond markets come to the rescue. It comes to the rescue of smart depositors, who are agile to move their money from fixed deposits to bond funds.

Let’s understand what is happening and why.

What Exactly is Happening in the Bond Markets?

It is likely that in this year, investors of bond funds will make handsome gains. Bond prices may rise and there may be capital gains. Investors of bond funds not only earn the rate of interest, but also earn capital gains. So that way, they make more than the return they would make on fixed deposits. The returns could be a high single digit or sometimes as high as double digits.

Over three years, this will become practically tax free or the tax would be a very small amount. So, basically, I am thinking that a rally will happen in the bond market. There are three main reasons for this — reduction in government borrowing (which is favourable), recovery of trading losses (which is favourable) and no change in monetary policy (which is neutral).

A word of caution, however, that such bond market investments are also subject to bond-market volatility and should be considered ideally with the help of a financial expert.

Before proceeding further, let us, therefore, quickly explain a bond, bond fund and bond market. We need to do this because few people understand the bond markets and even fewer invest in the bond markets.

Bond is nothing, but a commercial transaction where the borrower is issuing a bond to the lender and the lender will earn a certain rate of interest. When interest rates fall, everyone becomes interested in owning that bond.

As a result, the demand for the bond increases, the price of the bond increases and the bondholder makes capital gains.

A bond fund is a fund where ordinary investors pool in their money and a fund manager buys them a portfolio of bonds.

Moving onto the Reasons For a Rally in Bond Funds…

Now, the fundamental reason for a rally is reduction in interest rates as it stimulates economy and growth.

Firstly, the government is a massive borrower of funds. So a reduction in government borrowing reduces the demand for money in the economy. As a result, prices of bonds rise and this contributes to capital gains for bond holders.

Secondly, the Reserve Bank of India (RBI) recently announced that the commercial banks and RBI, which are the largest lenders to the government, will have another year to offset losses they have incurred on account of buying government bonds in the past. This action will lead to a rise in the price of bonds and this contributes to capital gains for bond holders.

Lastly, on one side due to the rise in oil prices, there is more inflation and thus more money is needed for circulation in the economy. On the other side, many government bonds are maturing, which will provide money supply. So, it is likely that we see a neutralising effect and thus RBI will take no action. This inaction here will support capital gains as explained above. Hence, this year might be a year of good gains for the bond investors.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager & Financial Freedom Coach.

Five new financial goals for you this summer

I am going to try and explain to you why the summer holidays of April and May are great months to get a lot of things started, financially speaking.

This time period in a way resets the financial clock. You also have the option to hit the reset button on everything you have done so far; financially speaking of course and hope to do better things better than you did last year.

Let’s look at some of the new and unusual things to do in April.

  • Make a learning budget

Learn something about money or anything you like. The best way to make money is to learn something about money. Just like if you wanted to learn cooking you will get into the cooking class. If you wanted to learn swimming you would enrol in the swimming class. If you find learning about money is too daunting task than learn something which is close at to your heart or related to your work. If you learn something new, there’s a possibility that you will use your new ideas to generate new income and in turn that will generate new wealth for you.  So make a budget, enrol somewhere and spend that budget. How about a % of your annual income? Spend it for sure!

  • Plan a unique holiday 

When you’re by yourself and without your mobile phone you will have the opportunity to think! When you have time to think, suddenly good ideas will come to your mind.  You may think this is silly but you can be sure that you will be amazed if your drivers experiment just once. So it might be a good idea to go for a holiday just by yourself. If you find that too intimidating, join a group of strangers. You can combine that with the adventures experience if you like.  Be extra careful if you’re going with your special buddies. Do this only if they are going to be in a position to help you discuss your idea and make it bigger. They must play the role of complimenting your thoughts. So make a schedule to do this holiday and obviously make a budget to make it happen. Think & create new ways of making wealth.

  • Make a prediction and make it happen

Be brave. Let’s aim to grow and multiply net worth by 50% by the time you come to the end of this financial year. This is not a joke and it is easier than you can imagine.  I’m speaking about NETWORTH and I’m not talking about return on investment. If your networth is Rs. 100 today, all I’m saying is that let’s aim to make this a 150 by the end of this year. This networth comprises of all your savings till date. This can be achieved by simply saving aggressively every month for the next twelve months. Just put this into a recurring deposit or liquid fund so you don’t spend it.  We just have to prove to ourselves that this is possible. Where and how we will invest this money will think about that later.

  • Eliminate a negative belief 

I want to give you an exercise here. Write down all your negative beliefs you have about money and wealth. Most people are not able to achieve the desired level of wealth because they think about wealth negatively. So even if you are earning a good amount of income you will never see yourself becoming wealthy. Examples are money causes problems, money causes a fight, managing money is complicated etc. Then for each negative thought, you have written down the positives i.e. the opposite for a few months. Soon negatively biased feelings will evaporate.

  • Make a new investment; something you have not done before

Again here you do not have to be a financial expert. The idea is to learn something new. There are hundreds of investment options. Our objective here is to learn something new. Talk to your advisor and seek his or her guidance. Just a word of caution here; don’t do anything which is speculative or is something that you just can’t understand. Do what do find easy you understand and do that then.

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager & Financial Freedom Coach.

Seeking financial freedom? The time is NOW!

John Lewis famously remarked, “If not now, then when? If not us, then who?” This is so appropriate in the current financial world that we live in.

That statement will leave to rest every other argument that is conservative and against the idea of wealth creation. We are often faced with the situation where there is no option but to create wealth. Read on to know why!

Interest rates are painfully low. For all those diehard fans of guaranteed investment returns, there’s hardly any place to go to. Thinking of fixed deposits? Feeling happy with 7%? And fully taxable? That period is over. Period.

That doctrine of investing into pure fixed deposits and similar instruments is unfortunately standing challenged. There is no option but to sprinkle it with a combination of a little something that will add to the returns earned from fixed income type of securities. In fact this category of investors are in a way, best placed in terms of the current tax laws.

They can earn about 9-10% with minimal or near zero tax over about five years and more. Starting to generate rate of return above the inflation level of 7% is starting to create wealth. So there it is; there is no option but to move in the direction of creating wealth.

For more evolved investors, who invest in equities and who and still sitting on the sidelines tend to run out of patience every now and then. They are sometimes waiting for the right time, sometimes waiting for correction, sometimes waiting for valuation and sometimes waiting for just nothing. Sometimes, just too busy to take action!

I totally understand not wanting to lose hard-earned money. But if the money does not move it will stagnate. That’s the problem with money.

Hit the Ground Running

Inaction and inactivity kills it. Makes it costly to hold. Makes us lose opportunities, sometimes small and sometimes significant. I know of many people including my dad, who just kept investing into equities and holding forever. No doubt they were hugely (big HUGELY) better off then the people in the same time zone. I think they could have done far better with some smart lessons on asset allocation. This is because if they compare the growth rate of their holding over a period of 20 or maybe 30 years the compounded rate of return earned is often not impressive.

It is just marginally better or a few percentage points above the fixed deposit rate. Hence the need for asset allocation, which simply put is not to have all eggs in one basket at any given point in time. These sections of investors anyways create wealth, and, asset allocation is the tool that ensures that the process of wealth creation continues uninterrupted. So again there it is; even for this section there is not option but to start enhancing their wealth creation activities, else returns will continue to remain forever mediocre.

Then there are skeptics and there is nothing much for skeptics of everything, except that they need a serious dose of financial education. Perhaps what if needed is a proof of concept and for that, which better country to live in other than India where financial transparency in investments is so high that I sometimes feel, it comes from another planet.

 Your Money Needs Action

Today, there is a whole lot of variety to choose from and we have never been more spoilt for choice. But the most important thing in all this is to understand that your money needs action. It needs activity and for that the time is now!

And furthermore, if you asked me this question 10 years ago; I would have said that, the Time is NOW. If you ask this question 10 years hence, I will still say the Time is NOW. Any time is the right time to start the process of creating wealth. All that is important is that you take your first step; then continue it all the way with zeal and determination… till you have the level of wealth that you desire. And if you accumulate more than you need, still do it and share it with the world.

If you want your financial freedom; then the Time is NOW!

Kartik Jhaveri is an expert at planning money, life and aspirations. He is a Certified Financial Planner, Wealth Manager and Financial Freedom Coach.

Young Turks: Here’s the success story of venture fund Aspada

Venture fund Aspada was co-founded by Kartik Srivatsa and Thomas Hyland in 2012 and has made 17 investments so far across Fin-tech, agriculture, health and edu-tech startups.

Young Turks takes a look at their investment thesis, their differentiated VC model and meet three of their portfolio companies – Capital Float that underwrites unsecured loans to startups and SMEs; Dunzo, a hyper local concierge and delivery player that is also Google’s first direct startup investment in India; WayCool, a Chennai-based agriculture-tech startup.

Shareholders, creditors approve Shriram City-Shriram Transport Finance merger

zee entertainment, sony india

Non-banking finance company Shriram City Union Finance Ltd on Thursday said the company has received approval from equity shareholders and secured and unsecured creditors for the merger of Shriram City with Shriram Transport Finance Company.

Of the total final votes, 99.7 percent of the equity shareholders, 100 percent of the secured creditors, and 99.9 percent of unsecured creditors were in favour of the deal, according to a vote count at the company’s National Company Law Tribunal (NCLT) convened a meeting on July 6, 2022, the company said in a statement.

Chennai-based diversified financial services company Shriram Group, in December last year, announced the merger of Shriram Capital Ltd and Shriram City Union Finance with Shriram Transport Finance.

Also Read: CBI arrests Power Grid Corporation ED and 5 others in bribery case involving Tata Projects

The shareholders’ and creditors’ approval marks the completion of one of the few remaining closing conditions for the merger. The company now awaits approval from NCLT, CCI, and IRDA, it added.

Speaking about the merger, YS Chakravarti, managing director, and chief executive officer, Shriram City said, “With the shareholders’ and creditors’ vote out of the way, only a few more steps remain before the deal can be closed and we start a new era for Shriram.

The merger will give us greater scale, lower operating costs, access to lower-cost of funds, increase competitiveness, and wider geographic coverage. For my customer, I will be able to offer him a suite of products under the same umbrella and with convenience like never before with the Super-App.”

Also Read: Product complaints, unit closures, ‘act fast, think later’ culture led to recent Ola troubles, say former execs

Last month, the group said it received approval for the merger of SCL and SCUF with STFC from the Reserve Bank of India (RBI).

The merged entity will be known as Shriram Finance Ltd and it will be the largest retail finance non-banking finance company (NBFC) in the country.

Shares of Shriram City Union Finance ended at Rs 1,700.20, down by Rs 47.80, or 2.73 percent on the BSE.

Production from captive, commercial coal mines increases 79% in June quarter

The production from captive and commercial coal blocks has increased by 79 percent to 27.7 Million Tonnes (MT) in the June quarter. The Coal Ministry also expressed hopes that the targeted production of 32 MT from captive and commercial mines during the second quarter of FY23 would be achieved.

“Production from coal blocks during the first quarter of the 2022-23 fiscal year was reviewed by the Additional Secretary and Nominated Authority, the Ministry of Coal on July 6, 2022 in the presence of project proponents. Coal production achieved during the first quarter is 27.7 MT, which is 79 percent higher than the 15.5 MT coal produced during same period in the 2021-22 fiscal year,” the Ministry said in a statement. The government also appreciated the efforts of coal blocks owners in achieving such high growth.

Two coal blocks sold last year under commercial mines auction have become operational and produced 1.57 MT in the first quarter, it said. At present, a total of 36 captive and commercial mines are under production and it is likely that at least 12 more new mines will start production during the year. This will significantly contribute to meet the coal demand in the country, it added.

Further, project proponents also shared the efforts made by them and the challenges they are facing. The Ministry of Coal assured to extend all possible support in resolving the issues.

Also Read: India’s trade deficit at record high of $25.63 billion in June

Finance minister tells public banks to join account aggregator ecosystem by July 31

Union Finance Minister Nirmala Sitharaman on Friday directed the heads of all public sector banks to become part of the account aggregator ecosystem by the end of the month. The account aggregator ecosystem, aimed at transforming how credit is processed and accessed in the country, went live last September.

According to an official press release, Sitharaman headed a meeting of heads of public sector banks and regional rural banks (RRBs) to review operational and governance reforms (in the latter) and the performance of Kisan Credit Card KCC) scheme for animal husbandry, dairy and fishery industries.

While reviewing the performance of RRBs with their chairmen and heads of sponsor banks, the finance minister underlined the role being played by RRBs in financial inclusion and serving the credit needs of rural economy. She urged the sponsor banks to formulate a clear roadmap to further strengthen the RRBs and support the post-pandemic economic recovery. She also told the sponsor banks to champion technological advancements in RRBs.

Also read: Finance Ministry releases revenue deficit grant for July to 14 states

She also suggested that a workshop be conducted so that RRBs can share best practices with each other.

Recently, with an aim to provide the benefits of KCC loans to as many farmers as possible, a special KCC saturation drive was launched under the Atma Nirbhar Bharat programme, covering 2.5 crore farmers with a credit boost of Rs. 2 lakh crore. “It is noteworthy that as on July 1, 2022, 3.26 crore farmers (including 19.56 lakh animal Husbandry, dairy and fisheries farmers) have been covered under the KCC scheme, with sanctioned credit limit of Rs. 3.70 lakh crore,” the release added.

During a detailed review of KCC, Sitharaman told banks to ensure time-bound disposal of pending KCC applications and to hold camps to cover farmers engaged in cattle rearing and fishing under KCC. She also instructed officials to periodically review the KCC scheme to ensure the maximum number of eligible beneficiaries are covered.

Also read: RBI steps in to bolster sagging rupee and attract more foreign flows

Experts discuss implications of possible government regulation for edtech sector

India’s booming edtech sector that was clocking a 200 to 300 percent rise in users during the pandemic has now hit turbulent waters as growth slows down amid a global funding winter coupled with the fact that after schools and colleges reopened, adding new users has become an uphill task.

To discuss the road ahead for the edtech sector CNBC-TV18 spoke to Mayank Kumar, Co-Founder & MD of upGrad, Co-Chair of India Ed-Tech Consortium; Ravi Bhushan, Founder & CEO of BrightChamps and Krishna Kumar, Founder & CEO of Simplilearn.

In just 2022, Indian edtech companies including big ticket unicorns laid off more than 4,000 employees in a bid to streamline teams that were expanded during a period of heady growth.

Conserving capital to ensure a longer runway seems to be the new mantra as most want to go slow on expansion, cut down on excessive spends, and explore new revenue streams. Some of course have even shut operations. The pain is writ large for a sector that had become the poster boy of the pandemic’s digital boom story!

So while the success was stupendous, controversies have also been many — from mis-selling, to overly aggressive sales tactics and misleading advertisements, flags have been raised on how this hyper competitive sector has been going about growing its business.

Just last week, the Consumer Affairs Ministry in a meeting with the edtech consortium, warned them against unfair business practices saying that if self-regulation does not work, then the government will formulate stringent guidelines.

Now remember that in a bid to bring in self-regulation, earlier this year, edtech companies formed the India EdTech Consortium (IEC), to work under a common ‘code of conduct’ and establish a two-tier grievance redressal mechanism.

In fact, a Local Circles poll found that 66 percent Indians want the centre to regulate the edtech sector. At least 69 percent of those who have taken online coaching or learning classes say that they have faced issues.

The warning from the government comes at a time when the Advertising Standards Council of India’s annual report for 2021-22 found that the education sector led by edtech platforms accounted for 33 percent of all complaints on misleading advertisements.

Watch video for more.

Goa gets monsoon red alert, schools closed for 2 days

With the Indian Meteorological Department (IMD) issuing a red alert and predicting very heavy rainfall in Goa, the state government on July 7 said it has declared a holiday on July 8 and 9 for students of classes 1-8.

However, normal classes will be held for class 9-10 students, the State Directorate Of Education said in a circular.

“In view of the red alert issued by the Indian Metrological Department, Goa Centre, predicting heavy to very heavy rainfall and extremely heavy rainfall over the two districts, it is decided by the competent authority to declare holiday on 8th and 9th July 2022 for the students from STD I to VIII in the state of Goa,” it said.

Also Read: Late monsoon pushes India’s June unemployment rate to the highest post COVID lockdowns

The IMD has forecast extremely heavy rainfall in Goa on July 8, and very heavy rainfall from July 9-10. A red alert has been issued for July 8.

Under the influence of the low-pressure area over central parts of Madhya Pradesh, an associated cyclonic circulation, and an off-shore trough from Gujarat to Maharashtra, fairly widespread rainfall has been forecast for the next five days in these regions as well as in Telangana, Kerala, coastal Karnataka and Odisha, the India Meteorological Department said.

A good spell of rainfall over the past couple of days has helped reduce the cumulative deficit for the country to 2 percent from 8 percent last Friday (July 1), the weather office data showed.

Also Read: Rains LIVE Updates: High alert in Mumbai, local train services delayed; 3 dead in Karnataka landslide

Monsoon continues to remain deficient in Uttar Pradesh (-48 percent), Jharkhand (-42 percent), Kerala (-38 percent), Odisha (-26 percent), Mizoram (-25 percent), Manipur (-24 percent), and Gujarat (-22 percent), the IMD data on daily rainfall showed.

China criticises PM Modi, US Secretary of State Blinken for greeting Dalai Lama on his 87th birthday

China on Thursday criticised Prime Minister Narendra Modi for greeting the Dalai Lama on his 87th birthday, saying India has to fully understand the ”separatist nature” of the exiled Tibetan spiritual leader and it should stop using Tibet-related issues to ”interfere” in China’s internal affairs. Prime Minister Modi greeted the Dalai Lama over the phone as he turned 87 on Wednesday.

“Conveyed 87th birthday greetings to His Holiness the Dalai Lama over the phone earlier today. We pray for his long life and good health,” Modi tweeted on Wednesday. The prime minister wished him on his birthday last year as well.

The Dalai Lama’s supporters celebrated his 87th birthday at Dharamshala where he has lived since fleeing from his Himalayan homeland in 1959.

Reacting to a question on Modi’s greetings, Chinese Foreign Ministry spokesman Zhao Lijian told a media briefing that “the Indian side also needs to fully understand the anti-China and separatist nature of the 14th Dalai Lama.”

“It needs to abide by its commitments to China on Tibet-related issues, act and speak with prudence and stop using Tibet-related issues to interfere in China’s internal affairs,” Zhao said in response to a question from China’s state-run media.

Also read: Dalai Lama turns 87: Best quotes by the spiritual leader

“Tibet-related affairs are China’s internal affairs and brook no interference by any external forces. China firmly opposes all forms of contact between foreign officials and the Dalai Lama,” he said.

In New Delhi, India rejected China’s criticism over Prime Minister Modi’s birthday greetings to the Dalai Lama, asserting that it is a consistent policy of the government to treat the Tibetan spiritual leader as an honoured guest. External Affairs Ministry Spokesperson Arindam Bagchi said that the birthday greetings by the prime minister to the Dalai Lama should be seen in this overall context.

“It is a consistent policy of the government of India to treat His Holiness Dalai Lama as an honoured guest in India and as a respected religious leader who enjoys a large following in India,” Bagchi said at a weekly media briefing.

“His Holiness is accorded all due courtesies and freedom to conduct his religious and spiritual activities in India. His birthday is celebrated by many of his followers in India and abroad,” Bagchi said.

“The birthday greetings by the prime minister to his Holiness on his 87th birthday should be seen in this overall context,” he said, noting that Modi greeted him last year as well. China accuses the Dalai Lama of indulging in “separatist” activities. But the Tibetan spiritual leader insists that he is not seeking independence but “genuine autonomy for all Tibetans living in the three traditional provinces of Tibet” under the “Middle-Way approach”.

Also read: Top Vivo executives may have fled India amid ED money laundering probe

The Chinese reaction came on a day External Affairs Minister S Jaishankar held bilateral talks with Chinese Foreign Minister Wang Yi in Bali on the sidelines of a conclave of G20 foreign ministers’ meeting. It is not known whether the issue figured in their talks.

In Beijing, Chinese foreign ministry spokesman Zhao also lashed out at US Secretary of State Antony Blinken for greeting the Dalai Lama. In his greetings, Blinken said, ”His Holiness brings light to his fellow Tibetans and so many around the world by promoting peace, encouraging inter-faith harmony, and advocating for the preservation of Tibetan language and culture”.

“I admire His Holiness’s ongoing commitment to non-violence to resolve the grievances of the Tibetan community. I am also grateful for his dedication and service to humanity,” Blinken said in his message posted on the US State Department website.

“The United States will continue to support His Holiness’s and the Tibetan community’s efforts to preserve Tibet’s distinct linguistic, religious, and cultural traditions, including the ability to freely choose their religious leaders,” he said.

Criticising Blinken’s greetings to the Tibetan Buddhist leader, Zhao said the 14th Dalai Lama is a “political exile disguised as a religious figure” who has long engaged in anti-China separatist activities and attempted to split Tibet from China.

“We urge the US side to fully understand the importance and highly sensitive nature of Tibet-related issues, seriously respect the core interests of China, understand the anti-China and separatist nature of the Dalai clique, abide by US commitments on Tibet-related issues, refrain from all forms of contact with Dalai and stop sending wrong signals to the world,” Zhao said.

He claimed that Tibet has long witnessed booming economic development with social harmony and stability and cultural traditions protected and promoted. “People of all ethnic groups in Tibet enjoy the freedom of religious belief, and the freedom to use and develop their their ethnic languages. Other rights and freedoms are also fully protected,” Zhao said.

Also read: ED conducts search operations against Vivo at more than 40 locations

5 Indian-origin women make America’s Richest Self-Made list: Take a look

Five women of Indian-origin feature in Forbes’ annual list of America’s Richest Self-Made Women. The list ranks America’s most successful women entrepreneurs, executives and entertainers. Among the notable new faces: movie star Sandra Bullock, recurring Shark Tank judge Emma Grede and Daily Harvest founder Rachel Drori. But here are the five Indian-origin women who have made it big in the US. (Image: Shutterstock)
No.5 | Reshma Shetty | Rank on America’s Richest Self-Made Women 2022 list: 97 | Net worth: $ 220 million | About Reshma Shetty: Reshma Shetty cofounded Gingko Bioworks, a synthetic biotechnology company, in 2009 with four others, including her husband Barry Canton. Shetty received a Ph.D. in biological engineering at MIT, where she met Ginkgo Bioworks' other cofounders. Ginkgo, named after a dinosaur-era tree, uses data analytics and robotics to speed up the process of discovering and making new organisms. Ginkgo Bioworks went public in a SPAC merger in September 2021; shares fell 80% from their peak in November through mid-May 2022. As Covid-19 spread, the company opened its Boston facilities for research into the coronavirus and to ramp up testing for the disease. - via Forbers | Source of wealth: Biotechnology. (Image: IAmBiotech Twitter)
No.5 | Reshma Shetty | Rank on America’s Richest Self-Made Women 2022 list: 97 | Net worth: $ 220 million | About Reshma Shetty: Reshma Shetty cofounded Gingko Bioworks, a synthetic biotechnology company, in 2009 with four others, including her husband Barry Canton. Shetty received a PhD in biological engineering at MIT, where she met Ginkgo Bioworks’ other cofounders. Ginkgo, named after a dinosaur-era tree, uses data analytics and robotics to speed up the process of discovering and making new organisms. Ginkgo Bioworks went public in a SPAC merger in September 2021; shares fell 80% from their peak in November through mid-May 2022. As Covid-19 spread, the company opened its Boston facilities for research into the coronavirus and to ramp up testing for the disease. – via Forbers | Source of wealth: Biotechnology. (Image: IAmBiotech Twitter)
No.4 | Indra Nooyi | Rank on America’s Richest Self-Made Women 2022 list: 85 | Net worth: $ 320 million | About Indra Nooyi: PepsiCo’s former chair and CEO Indra Nooyi retired in 2019 after 24 years with the company, half of which she spent in the top job. As CEO, she thwarted a bid to break up PepsiCo, nearly doubled sales and introduced healthier products and environmentally friendly practices. Her fortune stems from stock she was granted while working at PepsiCo. Nooyi joined the board of Amazon in 2019. Nooyi grew up in India and got an MBA from Yale before becoming one of corporate America’s few female CEOs in 2006. – via Forbes.| Source of wealth: Pepsico. (Image: Reuters)
No.3 | Neha Narkhede | Rank on America’s Richest Self-Made Women 2022 list: 57 | About Neha Narkhede: Neha Narkhede is cofounder and former chief technology officer of cloud company Confluent. As a LinkedIn software engineer, she helped develop the open source messaging system Apache Kafka to handle the networking site's huge influx of data. In 2014, she and two LinkedIn colleagues left to found Confluent, which helps organizations process large amounts of data on Apache Kafka. The $388 million (revenues) company went public in June 2021 at a $9.1 billion valuation; she and her family own around 8%. Narkhede, who grew up in Pune, India, studied Computer Science at Georgia Tech and today advises numerous technology startups.
No.3 | Neha Narkhede | Rank on America’s Richest Self-Made Women 2022 list: 57 | About Neha Narkhede: Neha Narkhede is cofounder and former chief technology officer of cloud company Confluent. As a LinkedIn software engineer, she helped develop the open-source messaging system Apache Kafka to handle the networking site’s huge influx of data. In 2014, she and two LinkedIn colleagues left to found Confluent, which helps organizations process large amounts of data on Apache Kafka. The $388 million (revenues) company went public in June 2021 at a $9.1 billion valuation; she and her family own around 8%. Narkhede, who grew up in Pune, India, studied Computer Science at Georgia Tech and today advises numerous technology startups. – via Forbes | Source of wealth: Software.
No.2 | Neerja Sethi | Rank on America’s Richest Self-Made Women 2022 list: 24 | About Neerja Sethi: Neerja Sethi cofounded IT consulting and outsourcing firm Syntel with her husband Bharat Desai in 1980 in their apartment in Troy, Michigan. French IT firm Atos SE bought Syntel for $3.4 billion in October 2018. Sethi got an estimated $510 million for her stake. Sethi, who had served as an executive at Syntel since 1980, did not join Atos after the acquisition. Sethi met her husband in the U.S. while working for pioneering IT firm Tata Consultancy Services, which they attempted to emulate. The couple started the business with an initial investment of just $2,000.
No.2 | Neerja Sethi | Rank on America’s Richest Self-Made Women 2022 list: 24 | About Neerja Sethi: Neerja Sethi cofounded IT consulting and outsourcing firm Syntel with her husband Bharat Desai in 1980 in their apartment in Troy, Michigan. French IT firm Atos SE bought Syntel for $3.4 billion in October 2018. Sethi got an estimated $510 million for her stake. Sethi, who had served as an executive at Syntel since 1980, did not join Atos after the acquisition. Sethi met her husband in the U.S. while working for pioneering IT firm Tata Consultancy Services, which they attempted to emulate. The couple started the business with an initial investment of just $2,000.- via Forbes | Source of wealth: IT consulting and outsourcing. (Image: Rediff)
No.1 | Jayshree V Ullal | Rank on America’s Richest Self-Made Women 2022 list: 15 | About Jayshree V Ullal: Jayshree Ullal has been president and CEO of Arista Networks, a computer networking firm, since 2008. She joined the board of directors of Snowflake, a cloud computing company that went public in September 2020. The publicly-traded company recorded revenue of $2.3 billion in 2020, a decrease of nearly 4% compared to fiscal year 2019. Ullal owns about 5% of Arista's stock, some of which is earmarked for her two children, niece and nephew. In August 2018, Arista settled a multi-year patent infringement battle with Cisco, Ullal's former employer, agreeing to pay Cisco $400 million. Born in London and raised in India, she is one of America's wealthiest female executives. - vai Forbes
No.1 | Jayshree V Ullal | Rank on America’s Richest Self-Made Women 2022 list: 15 | About Jayshree V Ullal: Jayshree Ullal has been president and CEO of Arista Networks, a computer networking firm, since 2008. She joined the board of directors of Snowflake, a cloud computing company that went public in September 2020. The publicly-traded company recorded revenue of $2.3 billion in 2020, a decrease of nearly 4% compared to fiscal year 2019. Ullal owns about 5% of Arista’s stock, some of which is earmarked for her two children, niece and nephew. In August 2018, Arista settled a multi-year patent infringement battle with Cisco, Ullal’s former employer, agreeing to pay Cisco $400 million. Born in London and raised in India, she is one of America’s wealthiest female executives. – via Forbes |  Source of wealth:  Computer networking.

Explained: Ethereum Name Service and the reason behind the 216% spike in ENS domain registrations

The demand for Ethereum domains seems to be rising in July, with over 126,141 registrations taking place in the first week of the month. The spike appears to have come after the domain ‘000.eth’ was purchased for 300 ETH (or USD 315,000) — the second-largest sale measured in both ETH and USD.

Last weekend saw a 200 percent rise in domain registrations, with over 108,000 registrations, as per data by ENS developer Nick Johnson. Spurred by these sales, Ethereum Name Service’s (ENS’s) daily revenue rose to over USD 680,000 – rising by as much as half a million dollars.

On Monday, the registrations peaked at 34,457, pushing ENS to the top of the seven-day non-fungible token (NFT) sales collection, as per data from Dapp Radar. Simultaneously, ENS’s social media mentions also saw new highs, with the engagements rising over 100 percent within a week, as per data from Lunar Crush.

But what is ENS, and what’s behind the sudden spike? Let’s find out.

What is Ethereum Name Service (ENS)?

The ENS is an open and distributed naming service and the domain name protocol built on the Ethereum blockchain. Essentially, it is a lookup system that links information to a name. ENS allows users to create a simple username for all their wallet addresses and decentralized websites.

Also Read: Explained: Cold staking and its benefits

These names are similar to domain names on Web2 and are sold as NFTs. They aim to replace a wallet’s private address with a human-friendly name that is easier to remember. For example, it can map machine-readable wallet addresses like ‘6f867cm28ih8wk’ to a human-readable name such as ‘XYZ.eth’.

ENS allows crypto users to buy and manage their own domain/usernames on Ethereum. It aims to simplify decentralized transactions without putting the users through the hassle of remembering long-winding, machine-readable addresses. Replacing wallet addresses with domain names also decreases the chances of input errors while typing the address.

In a way, it is very similar to the Domain Name Service (DNS). DNS replaces IP addresses with human-readable tags we know as URLs. Before the invention of DNS, users had to remember complex, machine-friendly IP addresses to browse the internet.

Why are ENS registrations spiking now?

As per Delphi Digital, the spike could be due to ‘000.eth’ being bought for 300 ETH, a record-breaking number. This event may have triggered a chain reaction of purchases, causing a spike in registrations. At the same time, gas fees on Ethereum fell to single-digit levels in the past few days.

On July 3, 2022, Ethereum’s average gas fee fell to $1.57 — a number not seen since 2020. Gas fees are the transaction charges for nodes to approve any transaction. It is also one of the roadblocks to Ethereum’s mainstream dominance.

Also Read: Fighting fire with fire: Spain, Dubai and the US investing in blockchain tech to help combat crypto crime

In the past two years, Ethereum’s average gas fee has barely slid below USD 40, nearly touching $200 in May 2022. However, the narrative seems to be changing now. The gas fee had surged as a bull rally gripped the markets, and the hype around NFTs and decentralized finance (DeFi) spiked.

Now, the crash in gas fees has occurred at a time when daily NFT sales have dropped to one-year lows amid a ruthless bear market. June was the worst month in 2022 for NFTs, as daily sales fell to 2021-levels of 19,000 per day. In September 2021, daily sales were the highest at 224,768 NFTs per day.

Boris Johnson quits as PM: The shortest stays in 10 Downing since World War II

With over 50 members of parliament resigining from his government, UK Prime Minister Boris Johnson is set to resign and step down. With Once Johnson resigns it will mark the end of his controversy-blighted leadership of the United Kingdom and the Conservative Party. Once Johnson's time as the UK PM is over it would leave him close to the top of the list of post-war prime ministers spending the shortest time in No. 10 at 1,080 days. Here are the UK Prime Ministers with the shortest stints after the War. (Image: Reuters)
With over 50 members of parliament resigning from Boris Johnson’s government, he has been forced to step down as the Prime Minister of the UK. Once Johnson resigned, it marked the end of his controversy-blighted leadership of the UK and the Conservative Party. As Johnson’s time as the PM of UK concludes, he would become one of those PMs who spent the least time holding office post World War II. Here are the prime ministers with the shortest stints after the war. (Image: Reuters)
Edward Heath | Start Year: 1970 | Days as the PM of UK: 1355
Edward Heath | Start Year: 1970 | Party: Conservative | Days as the PM of UK: 1355 (Image: Reuters)
James Callaghan | Start Year: 1976 | Party: Labour | Days as the PM of UK:1,124 (Image: Reuters)
James Callaghan | Start Year: 1976 | Party: Labour | Days as the PM of UK: 1,124 (Image: Reuters)
Theresa May | Start Year: 2016 | Party: Conservative | Days as the PM of UK:1,106 (Image: Reuters)
Theresa May | Start Year: 2016 | Party: Conservative | Days as the PM of UK: 1,106 (Image: Reuters)
Boris Johnson | Start Year: 2019 | Party: Conservative | Days as the PM of UK:1,080 (as of July 7 2022) (Image: Reuters)
Boris Johnson | Start Year: 2019 | Party: Conservative | Days as the PM of UK: 1,080 (as of July 7 2022) (Image: Reuters)
Gordon Brown | Start Year: 2007 | Party: Labour | Days as the PM of UK:1,049 (as of July 7 2022) (Image: Reuters)
Gordon Brown | Start Year: 2007 | Party: Labour | Days as the PM of UK: 1,049 (Image: Reuters)
Sir Anthony Eden | Start Year: 1955 | Party: Conservative | Days as the PM of UK: 645 (Image: wikimedia commons)
Sir Anthony Eden | Start Year: 1955 | Party: Conservative | Days as the PM of UK: 645 (Image: Wikimedia Commons)
Sir Alec Douglas-Home | Start Year: 1963 | Party: Conservative | Days as the PM of UK: 363 (Image: Wikimedia Commons)
Sir Alec Douglas-Home | Start Year: 1963 | Party: Conservative | Days as the PM of UK: 363 (Image: Wikimedia Commons)

CBIC issues circular on penalties for transactions involving fake invoices

The Central Board of Indirect Taxes and Customs (CBIC) on Wednesday issued a circular that clarified a number of concerns regarding the application of the demand and penalty provisions under the Central Goods and Services Tax Act, 2017, in relation to transactions involving fake invoices.

The circular states that there have been several instances when registered people have been found to have issued tax invoices without supplying any services and/or products in order to enable their recipients the opportunity to fraudulently claim and utilise input tax credit (ITC).

The CBIC said it received requests from the trade and field formations for clarification on the issues regarding the implementation of demand and penalty rules in respect to the transactions using forged invoices. 

Also read: Industry body says 5% GST on hospital room rent will increase expenses for patients

“The clarification is provided with respect to what constitutes ‘supply’ and, in cases of circular trading, there may not be tax brunt in several cases when the transaction does not qualify as supply. This was the argument advanced in various courts as well,” said Khaitan & Co partner Abhishek A Rastogi, who is presenting dozens of these petitions in multiple courts.

He said the clarification stipulates that there will be penal actions with no demand in most circumstances. “As a corollary, there are chances that the number of arrests on this matter will drastically decline,” he added.

Clarifications

-If a registered person issues a tax invoice to another registered person without making any underlying supplies of goods, services or both, the transaction is not considered a “supply”. The person that issued the invoice can be held liable for the same and faces penal action for issuing fraudulent invoices, though no penal action or tax will be applicable on the actual transaction under section 73 or 74 of the CGST Act. 

-If a registered person issues a tax invoice to another, without any underlying supply of goods and services or both, and the latter then avails input tax credit (ITC) on it and also issues an invoice to his/her buyers so that s/he can use the input tax credit to pay of tax liabilities on the outward supply, then s/he will be liable for the demand and recovery of the ITC. S/he could be penalised against provisions of Section 50 of the CGST Act because s/he fraudulently claimed and used an ITC based on the aforementioned tax invoice without receiving the goods and services or both.

-If a registered person issues a tax invoice to another without any underlying provision of goods, services of both, and the recipient of the invoice then claims ITC and issues tax invoices to a third person without any supply of goods or service or both, then the second person will not have to pay tax. The ITC availed of by the second person becomes ineligible, and the person will attract penal action under sections 122(1)((ii) and 122(1)(vii) of the CGST Act for issuing invoices without having supplied any goods or services and for taking any input tax credits without having actually received any goods or services.

Also read: Union Revenue Secretary Tarun Bajaj on the GST journey and the road ahead