Catch and Cater

Gender Diversity and Numero Uno By CA.Kannan Sundar Rajan

“I raise my voice not so I can shout, but so that those without a voice can be heard. We cannot succeed when half of us are held back. Malala Yousafzai

“The scrutiny on our bodies distracts us from what’s really going on here: control. The emphasis on our appearance distracts us from the real focus: power” Alok Vaid-Menon, Beyond the Gender Binary

Having triggered and enthused with the success stories of leading corporates, let us delve into the Why, How and What makes Women in the Work Place Shine better and make an impact on the cultural, social, financial and economic well-being of the entity as well as the nation at large.

Beyond fairness, increased gender diversity brings a competitive advantage to modern companies, which face extraordinary competition in an economy that puts an unprecedented premium on knowledge. Women comprise more than half of the pool of human capital. Companies that fail to fully leverage and draw from more than half of the pool risk losing an edge.

Furthermore, companies connect better with their stakeholders – be it customers, employees, owners, and the communities in which they operate – when they have greater diversity, including on their boards.

Both men and women should feel free to be strong. It is time that we all perceive gender on a spectrum not as two opposing sets of ideas. How important it is for us to recognize and celebrate our heroes and sheroes!

Women Empowerment has five components: women’s sense of self-worth; their right to have and to determine choices; their right to have access to opportunities and resources; their right to have power to control their own lives, both within and outside the home, and their ability to influence the direction of social well-being.

Women Empowerment is not the menu for the day, since almost 90% of the Women in our Society are well empowered and are leading in their respective fields. We have too many Sudha Murthys and Nirmala Seetharamans amongst us and are shining silently.

Throughout history, women have played pivotal roles as leaders across various fields – from activist movements, such as the suffragettes, to politicians, such as Shirley Chisolm, educators and writers.

WHY do Companies should have more Women in their work force and especially to be part of the Top management, and in particular to have a Women as the CEO of the company, leads us to too many positive inputs.

Clause 2 of Sec.149(1) of the Companies Act, 2013 mandates every Listed Company must include at least one-woman director on their boards. The above rule also applies to every other public company with Either Paid-up share capital of INR 1 Billion (approx. US $ 12 million) or more or Turnover of INR 3 Billion (approx. US$ 36.02 million) or more.

It is important to recognize that while the law mandates the inclusion of a woman director, whether independent or otherwise, the significance of this requirement should be acknowledged in the broader context of the positive impact a woman on the board brings to the company culture and overall performance.

Katharine Graham became the first Women CEO globally in the late 60’s taking over the position at Washington Post. Born on june 16,1917 she was instrumental and supported the Post’s investigation into the Watergate Scandal in 1972-74,since then there was no looking back as the Post increased its circulation and became the most influential newspaper in the US.

Indra Nooyi, on the other hand was the First Women CEO in India and held the position at PepsiCo from 2006 to 2018. Born in a Tamil Hindu family in Madras on 28 Oct,1955 Indra did her schooling from Holy Angels Anglo Indian School at T Nagar, Chennai and went on to excel in every field. Indra has consistently ranked among the world’s 100 most powerful women. Nooyi as senior VP of PepsiCo during late 90’s led the company’s restructuring and divestiture of Tricon brands that included Pizza Hut, KFC and Taco Bell under its umbrella.

Companies with highest woman representation on their boards include

Apollo Hospitals 6 Women out of 11 Directors, Zomato (4 out of 7), Cummins India (5 out of 9), Nestle India (4 out of 8), while L & T has only 1 woman director out of 19 and LIC has 1 out of 15 and Page Industries has 1 out of 15 as lowest representation of Women Directors.

An EY Report from October 2022 shows that women’s representation on the Boards of India Inc has tripled from 6% in 2013 to 18% in 2022.

Women CEOs remain unsurprisingly underrepresented, accounting for only 5.4 percent of all CEOs globally. Norway has the highest with 13.4 % women CEOs.

Gender diversity on boards has a positive impact on the financial performance of the entity with increased return on equity, return on assets and stock price movements. A McKinsey study found that companies in the top quartile for gender diversity on executive teams were 25% more likely to have above average profitability that companies in the bottom quartile. Boards with more women are known for greater innovation and creativity.

Feminist leadership is about striving for equality and looking at power in a new way. A function of feminist leadership is to make power dynamics more transparent. This is something both men and women can and will benefit from.

A report by Credit Suisse says that companies with higher female representation on boards exhibited superior innovation capabilities, as evidenced by higher rates of new product introductions and patents.

Successful Female CEOs bring out the following characteristic for any female CEO:

The CEOs should be resilient and make judicious decisions at appropriate time.
A good leader should also be a good mentor.
CEOs should lead the way and be the best example for workers to emulate.
CEOs should be unbiased at all times and be democratic and impartial.
Women CEOs may prioritize creating a more collaborative and inclusive work environment.

Women CEO at her best, presenting her ideas on an upcoming project

Female CEOs are great at Collaboration, whether that looks like your sales team going the extra mile to meet objectives or allowing for enough flexibility to accommodate your employees, a Korn Ferry study found that female CEOs were “more likely to engage the power of teams” than their male counterparts.

They are Capital Efficient – Companies with Women at the C level typically generates more profit as well produces superior stock price performance than those led by men, according to a 2019 S & P Global analysis.

They are Emotionally Intelligent – Emotionally intelligent CEOs understand that business is personal and rooted in relationships, they also build their businesses, as confirmed by a recent research where women are rising to the Top tiers of companies due in large part to their emotional intelligence.

They are Multi-Dimensional – According to studies, women tend to use both sides of their brains simultaneously. These studies show that women tend to connect both sides of their brain with more ease, which means they can think in a linear, logical and serial manner at the same time that they generate intuitive, holistic and creative thought patterns. This allows women to use both sides of the brain simultaneously, whereas men tend to use each hemisphere sequentially.

They care – On average, women tend to be more empathetic and sensitive to the emotions of others than their male counterparts. Women are often nurturers, and that inherent level of care often extends to their work, companies and teams.

Generally, a strong woman is not afraid of doing what she wants, follows her passion and is not afraid of what people think of her. She is someone to look up to, and is a mentor for others, but also caring and kind. She understands deeply.

In comparison Female leaders, despite their relatively low representation as start-up founders, tend to perform better than all-male teams: they have 35% higher ROIs and 63% higher valuations and generate $ 0.78 revenue per dollar raised compared to all male teams’ $ 0.31.

HOW to get more Women on the Board of Directors –

To attract more female board members to your company, you really do not have to look far. In fact, you should proactively connect with female board directors through your network. This could include attending conferences, industry events, and seminars dedicated to promoting diversity and women in leadership roles.

Begin with data and transparency: With a serious intention to expand board opportunities to women and minorities, the Top management should start by disclosing where do they stand today, where they want to go and include measureable targets and a time period over which such targets will be achieved.

Start at the Top: Too often, board diversity initiatives are outsourced to consulting firms or external stake holders. To be effective, research finds that existing board members, together with the CEO of the company, must be intentional and actively engaged in bringing more women to the table.

Mentorship and Sponsorship Programs: Connecting aspiring women leaders with experienced mentors can provide guidance and support.

Unconcious Bias Training: Helping leadership recognize and address unconscious biases can level the playing field for women.

Work-Life Balance Initiatives: Offering flexible work arrangements can help women manage career goals and family responsibilities.

There are many accomplished Women CEOs leading the pack in various industries.

Kiran Mazumdar Shaw, the executive Chairperson and founder of Biocon group based in Bengaluru, a biotechnology company and former Chairperson of IIM, Bangalore. She was 68^th on the list of most powerful women in the World released by Forbes in 2019.

Leena Nair, a British-Indian business executive is the global CEO of Chanel. Before joining Chanel, Leena held a key leadership position at Unilever. She is acclaimed for her people-centered approach to leadership.

Mary Barra, CEO of General Motors. Mary became the first Women CEO of a major automaker in 2014.

Karen Lynch, CEO of CVS Health since 2021, leading the company’s focus on healthcare.

Roshni Nadar, the CEO of HCL Technologies, combines business acumen with philanthrophy. Her initiatives in education and healthcare uplift communities.

In conclusion, while the Corporate world has conceived the concept of having Women CEOs or bosses so as to stay on top in terms of market leaders, profitability as well as consistent stock price performers, it is for those start-ups and MSMEs to understand the reality and start from scratch with a Women CEO and march ahead.

Tax Planning and Investment Strategies – By CA Kannan Sundar Rajan

The World at large goes through financial and economic downturn as we move from year to year with various governments striving to maintain status quo as also to bring in measures to improve the same. While this is the case with the ruling governments, the common man in general will be concentrating on how to remain financially strong irrespective of the regional economy and other factors. But there is a set of humans called Salaried Class or Businessmen who were kept in suspense as they move from one financial year to another in order to know what will be left with them by remaining a legal resident and tax abiding individual.

As we are moving ahead with the eventful year 2024, with a new Parliament expected in the sub-continent by the second quarter we are in for a courageous financial budget from the new Indian Finance Minister. With this back ground the interim budget was released on the expected lines on 1^st Feb’24, that has opened the Pandora’s box with brief highlights as provided below and expects the tax payer to plan well in advance so as to avoid Tax Liability in the ensuing Assessment Year 2024-25 or the Financial Year 2023-24 of which we are left with only around thirty days to execute.

Brief Highlights of the Year 2024-25 Interim Budget:

There are No Changes in Direct and Indirect Taxes including Export Duties
Income tax dues were withdrawn till Rs.25,000/- for FY 2009-10 and before and till Rs.10,000/- for FY 2010-11 to 2014-15.
A Scheme to help middle class living in rented houses, to buy or to build their own house.
Tax benefits to start-ups and investments made by sovereign wealth or pension funds extended by 1 year till 31 March 2025.
The government has allocated Rs. 15,500 crore for various electronics manufacturing programmes, including semi-conductor mission, mobile and IT hardware schemes.
The government has also proposed Rs. 4,203 crore incentives for assembly, test and packaging plants.

We hereby provide guidance for Tax Planning and Investment Strategies for Tax payers in general to stay financially strong.

Tax Planning is nothing but the analysis of one’s financial situation from tax efficiency point of view. In order to remain as a law abiding citizen, it becomes mandatory to plan and meet tax liability and same time to reduce the same by way of investments in schemes supported by the Income Tax Rules and Regulations.

Tax Planning in real terms is nothing but Plan your Cash Outflow against your Income or Cash Inflow in such a way that you can harvest your outflow and gain income over the same, while you reduce your Tax Outflow which may end up as No Return.

General Principles of Tax Planning are

Maximize non-taxable receipts
Minimize non-deductible expenses
Apply Capital receipts in the acquisition of qualifying capital expenditure and
Avoid outright default of tax provisions to eliminate payment of interests and penalties.

Tax planning or Tax Avoidance can be accomplished by way of utilizing retirement plans, holding on to investments for more than a year and offsetting capital gains against capital losses.

In spite of applying various strategies to reduce our tax outflow, still tax planning has its own limitations like the tax laws and regulations undergo changes at short notice that will affect long term planning, investment schemes with the sole purpose of tax avoidance may end up with legal consequences as also we may need professional assistance that will result in additional expenses in the name of fees and charges.

With the Income Tax Department introducing New Tax Slabs, effective from Financial Year 2020-21 available in parallel to the Old or existing Slabs and which is yet to gain popularity, 6 out of 10 Assesses are in a dilemma to adopt the new tax regime and are yet to embrace its benefits as they go with the fact that majority of deductions that they used to claim under section 80C are not available under the new tax regime. But same time they fail to understand the overall benefit or definite reduction in tax liability guaranteed under the new tax regime.

New Tax Regime will be the default tax regime. However, taxpayers can opt for the old regime until further information.
A Tax rebate has been introduced under the new tax regime on income up to Rs.7 Lakhs, which means that there will be No Tax Liability for Income below Rs.7 lakhs

Taxable Income in Indian Rupees
Under Old Regime	Under New Regime	Old Tax Rates	New Tax Rates
Up to 2,50,000		NIL
	Up to 3,00,000		NIL
2,50,001 to 3,00,000		5%
	3,00,001 to 6,00,000		5%
3,00,001 to 5,00,000		5%
	6,00,001 to 9,00,000		10%
5.00,001 to 10,00,000		20%
	9,00,001 to 12,00,000		15%
Above 10,00,000		30%
	12,00,001 to 15,00,000		20%

	Above 15,00,000		30%

Under the New Tax Regime we have Standard Deduction of Rs. 50,000/- and the highest surcharge rate of 37% has been reduced to 25% to help those who earn more than Rs. 5 Crores with their overall tax rate decreasing from 42.74 % to 39%.

Before we proceed with the list of Investments that will boost your net wealth and same time avail tax deductions on the same, let us look into List of Exemptions available under the New Tax Regime:

Transport allowance w.r.t person with disabilities – available u/s 10(14) – with ceiling limit provided therein.
Conveyance Allowance exempted u/s 10(14)ii to the extent of Rs.19,200/- per annum
Travel/Tour/Transfer compensation – Section 10(14)( i )provides exemption towards actual amount paid as allowances for Travel or Transfer of duty including any sum paid in connection with the transfer, packaging, and transportation of personal effects of such transfer
Perquisites for Official purposes – Non-taxable perquisites/fringe benefits include travel allowance, computer or laptop provided for official use, refreshment provided by employer during office hours, medical aid, health club, sports club etc..
Exemptions for compensation received on Voluntary Retirement or Separation u/s 10(10C) up to Rs.5 Lakhs.
Leave Encashment u/s 10(10) – Any amount received as Leave Encashment is fully taxable for all employees. But tax relief is available u/s 89. Whereas the same received on retirement as well as by Central or State Government Employees are fully exempt. Also u/s 10(10)AA( ii ) Leave Encashment received by Legal Heir of a deceased employee if Fully Tax Free.
Interest on Home Loan u/s 24–Exemption available up to Rs.2 Lakhs for Owner Occupied Property and wholly on Let-out property
Gifts received by a tax payer is exempt up to Rs. 50,000/- and one can claim exemption even if it extends this limit provided the same is received from a relative. In terms of Gift / Surplus income paid/transferred by the tax payer the same is fully deductible IF it is given to Parents and invested in their name.
Employers’ contribution to Employees NPS Accounts u/s 80 CCD(2) – Deductible up to 10% of (Basic + DA
) or Rs.7.5 Lakhs. Also Employers can claim deduction up to 10% of Employees Salary (Basic+DA) as Business Expense in their Profit and Loss Account.
Additional Employee Costs u/s 80JJA – Under this section Employers’ or Businesses can claim up to 30% on increased employee expenses for a consecutive period of three years.
Deductions on Deposits in Agniveer Corpus Fund u/s 80 CCH(2) – The entire amount of Deposit by an Individual/Applicant and the Central Government can claim Deduction, on subscriptions on or after Nov 1^st 2022. This Deduction is available under both Old and New Tax Regimes.

In case of Salary Income, New Tax Regime allows Standard Deduction as also family pensioners can claim either Rs.15,000/- or 1/3^rd of their Pension whichever is lower. Benefit of Standard Deduction will be allowed to pensioners only IF the pension is taxable as Salary Income. If you choose pension as income from other sources, then the benefit of standard deduction will not be applicable.

Let us approach this with an Assesse being a Resident Individual having Taxable Income of Rs.10.50Lakhs and how he/she can Plan under both the New and Old tax regime and ends up with Zero Tax Liability:

Best Investment options with limitations on Tax Liability:

S. #	Scheme	Returns Past 5 yrs	Lock-In Period	Features
1	NPS	8.16%	Till Retirement	1) Open to Individual Indian Citizens in the age group 18 to 70 yrs other than HUF and Persons of Indian origin 2)Tax Savings available u/s 80 ( c ) upto 1.5 lakh / 80( CCD)1b additional 50,000 and 80(CCD)(2) upto 10% of basic salary provided by the employer
2	ELSS	18.24%	3 Years	Two in One mutual fund investment with Tax Savings + Wealth Creation.80% of your Portfolio will be Invested in Equity for a positive long term wealth. Most promising ELSS Funds with Returns in % 1Yr 3 Yr 5 Yr Quant ELSS Tax Saver 31.51 34.90 31.09Bandhan ELSS TAX Saver 28.83 26.82 20.91Parag Parikh ELSS Tax Saver 29.07 23.80 -Kotak ELSS Tax Saver 23.99 22.01 19.49Canara Robeco ELSS TAX Saver 24.32 19.79 20.05
3	ULIPs	8.15%	5 Years	Maturity proceeds from ULIPs are tax free u/s 10(10d) provided the life cover is at least 10 times the annual premium.
4	SCSS	8.2 % Jan-Mar’24	5 Years	SCSS with interest rate of 8.2% offered by most banks has a maximum investment limit of 30 Lakhs and the investor has the benefit of extending the SCSS account multiple times. Though the interest earned is taxable, senior citizens will get tax exemption upto Rs.50,000/-, which means an investment of Rs.6.25 Lakhs will earn tax free interest.
5	Sukanya Samrithi Yojana	8.2 % Jan-Mar’24	Till 18 Years of the Child	In comparison to SCSS, Interest earned under Samridhi Scheme is fully tax free. Only challenge to select this scheme is that it is open only to Tax payers whose daughters are below 10 years.
6	Retirement MFs	7 – 9 %	5 Years	Top 5 Retirement Funds with Returns in % 1Yr 3 Yr 5 Yr UTI Retirement Fund 17.61 13.83 10.96 Franklin India Pension 15.29 9.76 9.86 Tata Retirement Savings 13.41 7.54 9.13 HDFC Retirement Savings 12.42 9.05 9.59 Nippo India Retirement Income 10.94 6.55 8.38
7	NSCs & FDs	7 – 8 %	5 Years	NSCs provide ease of investment with less paper work.Compared to Bank FDs, NSCs are more attractive as they offer 7.7 % and the Interest earned are deductible in the following years
8	Pension Plans	7–14%	Till Retirement
9	PPFs	6 – 7 %	5 Years	PPFs are 100% Tax Free as maximum amount that can be invested is 1.5 Lakh equivalent to deduction u/s 80( c )
10	Life Insurance Policies	5 – 6 %	Minimum 5 Years

Photo by Frans van Heerden on Pexels.com

Apart from the above, we have other investment options to choose from:
1.Section 80TTA provides Tax Deduction on Interest on Post Office Savings Account including Time-Deposit Accounts up to Rs.10,000/-
Apart from the above, we have other investment options to choose from: 1.Section 80TTA provides Tax Deduction on Interest on Post Office Savings Account including Time-Deposit Accounts up to Rs.10,000/-
2. Bonds – Interest Income on Investment Bonds, both listed and unlisted are Tax Deductible u/s 193 up to 10%. In terms of Unlisted Bonds held for less than 36 months, any gain realized will attract STCG and is taxed at the individual’s slab rate. If the same is held for more than 36 months it will come under LTCG and is taxed @ 10% without indexation or @ 20% with indexation plus surcharge and cess.
3. Capital Guarantee Plans – Premium payment is eligible for tax deduction up to 1.5 lakhs u/s 80(c) but the drawback here is that these plans are locked for longer period and is suitable only for investors with long-term investment goal.
4. Liquid Funds – Dividends received on Debt Mutual Funds are tax free but any Redemption of units are subject to STCG or LTCG.
5. Child Savings Plans – Premiums paid on Child Education Plans are tax deductible up to Rs.1.5 Laks u/s 80( c )
6. IPOs – Investments on Shares & IPOs does not invite any tax liability but will invite Capital gains when the same is Sold.
7. Gold – Investment on Gold can be considered the best move to park our savings as the same will be giving good returns in the long run. But when the same is Sold in the market it will attract Capital Gains.
8. Real Estates – Investment in immoveable property is again considered for good returns. Whenever the property is Sold, then the proceeds from the sale of the residential property is reinvested in a house property within three years of purchase, then such amount is tax free. Morever, if an investor has invested in a residential property one year prior to selling a capital asset, then there will be No Capital Gain tax.
9. Cryptocurrencies – Investment in Cryptocurrencies invites a much higher risk and any gains from trading on these are taxed at 30% plus 4% cess u/s 115BBH, even though one can expect high returns.

Tax planning for Senior Citizens -Senior Citizens aged 75 Years and above need not file IT Returns IF they have only Pension Income. -Senior Citizens can claim a deduction up to Rs.50,000/- per annum on the interest earned on FDs u/s 80TTB. This deduction is available only to senior citizens and is in addition to the tax deduction available u/s 80C.

Advance Tax: Having successfully planned our tax outflow and worked out on various investment avenues to reduce the same, with specific Gross Income in hand as received over the last ten months from April 2023 to Jan’2024, without waiting for Form 16 or Form 16A from the employer, it is advisable to make an ad hoc amount as Advance Tax right now during February or March 2024 so as to avoid Tax Burden during July’24.

Wish you all Success with a well optimized Tax outflow, while you have laid the foundation for maximum returns on your investments.

SIM Swap, Deep Fake and other trending Frauds and Scams

CA. Kannan Sundar Rajan

With the advent of Digital technology on a large scale and our mounting dependence on them, we are open to hackers and fraudsters waiting at our door step to prowl on our finances. It is the responsibility of each one of us to alert and comfort all those who are likely to be victims of such frauds.

Recently a successful businessman from South Delhi lost a whopping 50 Lakhs to fraudsters from his personal bank account after receiving multiple missed calls in his registered mobile phone and later came to know that he was victimized to the latest financial fraud named SIM SWAP SCAM through smartphones.

Initially your Mobile will go blind with No bars. While you are wondering as to the cause of this, the phone will be active instantly followed by a call from an unknown person introducing himself as from your mobile phone operator and will volunteer to help you and will ask you to Press 1 to carry out the service, knowing very well your innocence to have the phone back to life. This is the moment that you are likely to face financial losses. You are hereby alerted “Not to press 1 or any stab but to END the Call and Stay quiet”. If you press 1 the network will work suddenly and almost immediately go blind with zero bars and by that you can understand that your phone is HACKED.Within a second your bank account will be emptied and you won’t receive any alert. You will soon realize that your line is without network, meanwhile your SIM has been SWAPPED and the danger here is that you will not receive any alert of any transaction at your bank account.

Here the victims end up with financial loss in their bank account after receiving repeated miss calls on their registered and linked mobile numbers. Initially the fraudsters take personal details such as phone numbers, bank account details and addresses with the help of phishing or vishing in which the scamsters send malware links to victims through mail or messages. Once the link is opened the malware steals all of the victim’s personal information.

Next they approach your telecom provider and impersonate with your Aadhar card freely available in the Net and raise a fake request for a SIM Card with your number and collect the same stating that your original SIM has been stolen/lost. At this stage you are totally unaware that someone is using your SIM card, while the Telecom Company does not deactivate the Original SIM Card which is held by you and accordingly your mobile number has a duplicate usage by the fraudster without your knowledge. Notably, scamsters can get a duplicate SIM even when the original is working as they reported a loss or theft of the original sim card and all the activation messages and details go to the scamster and not the victim.

You will start receiving miss calls in your number and even if you happened to attend any of these calls, there will be No response from the caller and the call will be disconnected instantly without raising any doubt on the nature of the call. Here it is understood that the fraudster gives miss calls just to test your innocence and that your SIM is still active and is connected with your bank account. Also the victims are naturally get irritated by the repeated miss calls and switch off their mobile out of frustration. But your duplicate SIM with the fraudster will be still active and will be receiving the OTP and other communication supporting the transactions. By the time we switch on the phone and check any SMS from our bank it will be too late. It is for us to learn that Not to Switch Off our Phones at times like this.

Unlike other scams, where scamsters trick people into giving OTPs and private information on a phone call, SIM swap scam doesn’t require direct communication with the victims. However, fraudsters do give missed calls to their victims so that the latter leave their phones and ignore the lost network connectivity.

Having Swapped the SIM of the victims these fraudsters gain complete control of the SIM and start making transactions as they only will be receiving the OTPs or other authentication. Even most of the victims are not checking their mails regularly and by pass any financial transactions as alerted by banks. We might be wondering as to why it may not be possible to recover the funds back to the victim’s account, while it may take more time but the fraudsters convert the confiscated money into digital currency like Crypto coins or Bitcoins which will prove more difficult for the authorities to trace it back to the victims.

Next in line is Online Air Intelligence(AI) Fraud, where Economic fraudsters have developed a new technique in which you will receive a video call from your known individual citing financial emergency. This known individual can be your wife, husband, father, brother or a close friend. But in fact it’s a type of online fraud in which the fraudster uses “Deep Fake AI bot” technique via Air Intelligence to con you. In this type of fraud the fraudsters rely on Deep Fake technique using Air Intelligence technology. The victims will be forced to believe the call as it is from their near and dear ones or a close friend and part with their wealth assuming that the money will be returned in time, but in reality it is a fake video call and a one-way financial transaction. So, one has to remain vigilant and use one’s IQ when a known individual calls from an unknown number using a tech based video call.

AEPS Scam or Aadhar enabled payment system Scam that came to light by last week of October 2023 as Karnataka Police have busted a gang from Bihar who have misused Property Documents uploaded in the Property Registration Portal of the State Government. The Fraudulent operation involved in this Scam came to light through complaints received from property owners of Bengaluru, Mangaluru, Chikkamagaluru and other parts of the state who were shocked to find money siphoned off from their bank accounts soon after property registration was over. The modus operandi of these scamsters were found to be that they download the documents freely available in the registration portal that includes Thumb impressions, finger prints and bio metric authentication. These prints were replicated and developed on a material made of plastic. These finger prints along with Aadhar numbers were used to withdraw money from Point of Sale(POS) machines. This way the fraudsters have withdrawn millions of money from victims account, even though Police have arrested the criminals, but still it is lesson for us as well for the Banks for enabling payments through Aadhar Cards especially in the rural areas of India.

Online Electricity Bill Scam – A pervasive online electricity bill scam is on the rise. Scammers are duping individuals across the country. Fraudsters are sending phony messages that pose as official electricity departments and threaten with power disconnection over unpaid bills and trick people into paying through a false link.An elderly woman in T.Nagar, Chennai was the latest victim on this count as reported by TOI on 5^th Nov’23 where she was conned for Rs.12,998/-. To stay safe from these scams, ignore unsolicited messages about unpaid bills.

In view of fraudsters and scamsters freely moving around, let us check and stay safe from these types of frauds:

Loan Scams – Scamsters in the guise of Bank Staff, approach victims having outstanding Loan repayable to Banks with promise for foreclosure of the Loan Accounts with a service fee payable to their personal accounts.

Credit Card Scams – Credit Card frauds typically occurs when hackers fraudulently acquire people’s credit or debit card details in an attempt to steal money or to buy goods using the card details.

Business Fraud – If you own a small business you can be targeted by hackers who will impersonate you and will fraudulently approach your customers

Identity Theft – When someone steals your personal identity like your name, Aadhar number or social security number or credit card number to commit fraud and thereby implicate you with legal authorities.

Phishing – Here a scammer impersonates a business or a person to trick them into giving out personal information such as passwords, credit card numbers, or bank account information.

Mail Frauds – Scamsters approach victims through letters or mails with fake promise to provide services for low cost but request for an upfront fee only to abscond later.

Emergency Scams – Here the fraudsters will approach the victims with some fictitious news like an accident for any of his/her close relative or an urgent medical need for them and request them for help in a non-existent emergency.

Authorized Push Payment Fraud – When you are likely to make a payment for an online purchase scammer will intercept the genuine email of the company with whom you are in communication and sends you a message asking for the payment and will escapes, the moment the payment is made.

Imposter Scams – Scammers will impost as someone close to you or one you trust so that you can make payment to him.

Computer Malware – When you approach a tech specialist for a support service of your Computer Systems, may have to end up with fixing or downloading malicious software or computer programs and thereby getting hacked by them.

Online Auction Scams – Con artists can pose as either buyers or fake sellers and deal with you to part with the goods pretending to buy from you and assuring to make payment either by a fake cheque or other means and the moment they collect the goods, they will abscond by some means.

Advance Fee Fraud – Also called upfront fee fraud where fraudsters collect a fee or sum of money as advance for services which may or may not happen as also by promising some kind of fictitious benefit.

Charity Scams – These involve scammers collecting money by pretending to work for a fictitious cause or charity or even collect food or non-food items.

Lottery Fee Fraud – Fraudsters typically craft emails or SMS messages that look sound and believable and approach the victims stating that they have won a big Lottery or sweepstakes and demand paltry sum as advance for processing their prize money.

Romance Fraud – Fun loving young individuals or those who are depressed in life, fall victims in this category. Scammers create fake profile on legitimate dating and romance sites and befriend the victims either online or mobile apps and demand sizable fee in advance for comforting them and go into oblivion the moment such payment is made.

How can one protect themselves from Fraud

Should be vigilant of vishing or phishing attacks
Must not neglect messages or switch off their phones after receiving multiple missed calls. They should enquire with the mobile operator immediately if such an activity takes place on the phone.
One should change bank account password regularly.
Should register for regular SMS messages as well as e-mail alerts for their banking transactions.

In case of fraud, one must immediately get in touch with banking authorities to have their account blocked and avoid further frauds, while your case will be handled by Cyber Crime. All the Best.

Thirupoonthuruthi Kaateri Amman 36th Annual Pooja,most reverential and ethereal moments

By CA.Kannan Sundar Rajan

It could be a dream come true moment for any devout Hindu to visit his/her Clan Deity or குலதெய்வம் atleast once in a year and for one who stays far away with his otherwise regular activities, it could be the most precious moment. It was one fine Sunday morning in July 2023 that I got a call from one of my longtime friend inviting me to Join him yet again on the 36th Annual Pooja of his குலதெய்வம் or Clan Deity being conducted on 24th Sep’2023 at Thirupoonthuruthi in Tanjore District, Tamilnadu. As a non-family member to attend such an event, me and my wife were so ecstatic and could not wait to be part of this Divine Pooja and being Second year in succession for us, we have dedicated ourselves mentally as well as physically to this great cause.

The event was planned as usual well in advance by early June or July 2023 and Printed Invitation was sent to almost each member of TSTS TRUST Members and their Family, as also to Close Friends Circle. This shows the involvement and dedication by the said Trust, especially Sri. & Smt. ManiShankar of Chromepet. The said Annual Pooja slated for 24th Sep 2023, has been a regular event in the Calendar of TSTS Trust and Family members who were holding this event during a selected weekend of September of every year so as to have a good Assembly of all the members. The said Trust is very conspicuous by its members holding high caliber and responsible position in the society and are all highly Charitable minded in nature. With that brief introduction, I am desirous to take each one of you, attendees and non-attendees of this annual Pooja to the family deity of TSTS Trust, to share our once in lifetime experience.

திருப்பூந்துருத்தி remains a very famous religious and spiritual village, a temple one among the sapthasthanam, encapsulated with Kumbakonam and Papanasam on the east, very close to Thanjavur in south, Trichy and Thirukaatupalli on the west came into prominence as early as 7^th Century AD and is home for the famous Sri. Pushpavananathar Temple for Lord Shiva which goes into history as the meeting point of Tamil Saints ‘ அப்பர்’ and ‘திருஞானசம்பந்தர்

’. Any visitor to this temple can see the Big Nandhi at the entrance as also all Nandhis inside were all slightly moved to the left. The reason being, knowing that அப்பர் has done good service in this Temple for Shiva and HIS Devotees, when திருஞானசம்பந்தர் visits this Temple, he doesn’t go inside the temple in reverence to அப்பர், then Lord Shiva asks the Main Nandhi at the entrance to move a little so that Thirugnanasambandhar can have HIS Darshan.

23 Sep’2023. By 7 in the morning, we have assembled at Trust Office in Chromepet embarking on our spiritual journey, in a 20 seater AC Bus arranged especially for this program with halt at Vandalur to pick up our friend Mr. Poonthuruthi Balakrishn Ganesh and confidante Mr. Ramasubramanian Elango at around 8.15 am. Reached Sri. Shankar house in Thirupoonthuruthi @ 3.30 pm and were instantly off to the nearby Cauvery River with some of the selected members of our group for a dip and bath session for about an hour after having hot and fresh பஜ்ஜி and போண்டா with Coffee for our evening snacks. We were in for a good surprise to realize that one of the 108 Divyadesam Temple is quite nearby at around 20 minutes’ drive, namely அருள்மிகு ஹர சாப விமோசன பெருமாள் கோவில் and were quick to visit and spend the Divine Saturday evening for about one hour. By 7.30 pm we were inside Sri. Pushpavaneshwarar OR Pushpavananathar Temple, famous Shiva Temple in Thirupoonthuruthi as explained earlier that houses Sri. Soundaranayagi Amman sannadhi too. In the absence of regular Archaka, Sri. Manishankar took the role of Archaka and decorated Shiva Linga with Vastrams and PushpaMalai taken from Chennai for this purpose and sang some devotional numbers with awestruck vibration running around family members. This way the main deity ‘Shiva Linga’ beautifully decorated after the evening abishegam done earlier and took us, the devotee to an enthralling divine experience chanting ” Om Namah Shivayya “. The day was extended with a most satisfying Dinner of mix of Sevai, Rava Dosa and veg. pulav and the likes. We retired to our sleep at around 10.30 pm, but to a great surprise of an Electric Power Cut in the entire area that went on until 5 in the morning. We were elusive of such a situation and managed a reasonably good sleep due to our long drive from Chennai and an eventful evening.

24 Sep 2023-The day opened up on a bright note with a hot coffee followed by refreshing bath and everyone assembled at KAATERI AMMAN TEMPLE for Ganapati Homam and Navagraha Homam being performed with high divinity. It is to be mentioned here that Sri & Smt Manishankar were the First attendees at the Temple as if Kaateri Amman wish their Presence ahead of others. The Homams were conducted in full fervor by M/S. Balasubramaniam, Swaminathan, Natarajan, Kowshik and Venkatesan, that has automatically had all the devotees full involvement as everyone sang some devotional songs to please the main deity – Kaateri Amman with special songs by Manishankar. Once these homams are over we took a break for Breakfast at around 8am and returned back to the Temple by 9.30 am. The Main Annual Pooja for Kaateri Amman is here to start with decoration to the deity with flowers, Saree, Jewels and other adornment. Songs and Chants by the devotees were so high that it made the entire area a devotional divine and highly spiritual environment by Singers of high caliber to mention Mrs. Sundari Sekar sister of Shankar, Mrs.Umashankar and Sri.Manishankar. Sri. Swaminathan had everyone’s attention with his reference to the effect of attending to this event with specific quote expecting everyone to keep a small amount say one anna in our house Swamy Sannadhi with devotion to attend this Annual Pooja for Kaateri Amman by next year then Amman will automatically make their Wish come true. Also Sri.Manishankar had a small discourse putting forward the Success of last year’s Pooja and the status and how the Temple was in Sep’2022.He has explained in detail the involvement and support of various people starting from Engineer Venkatesan, Sri. Shankar and Mrs. Anu of Thirupoonthuruthi, Sri. Ramalingam the ex-landlord of the Temple premises, Sri. Karthick and Mrs. Lakshmi the care takers of the Temple premises throughout the year. Sri. Manishankar as also Mrs. Lakshmi Manishankar were very emotional as he explained how close is the Temple and Kaateri Amman to him, following the foot steps of his uncle, Sri.Subramanian Swaminathan brothers, his family members who initiated this Kula Deivam Worship for 24 years and his entire family as also to all the members of TSTS Trust and how HER Devotees are being taken care.

Felicitation:

The event also included felicitation of everyone who has put a great job for the Temple Construction and Legal documentation and registration with the Authorities. First in line was Sri. Ramalingam, the neighbor at Thirupoonthuruthi who has lent and surrendered his portion of the Temple Land in favor of the temple and TSTS Trust, followed by Engineer Venkatesan who stood as a Pillar in giving the Temple its current status of well laid flooring, well covered roofing, dedicated pipeline as well as an independent rest room inside the temple premises which was a dream in earlier years. Then comes Sri. Shankar and Mrs. Anu another resident of Thirupoonthuruthi who has supported the rituals year after year by taking care of the devotees needs in every way, Sri. Ramasubramanian Elango, a long-time friend of Sri. Manishankar who lend his support for successful Temple Registration by physically present himself at the Land Registrar as an Authorized Witness as also Sri. CA. Kannan Sundar Rajan, practicing Chartered Accountant, another long-time friend of Sri. Manishankar who has had the blessings of Kaateri Amman along with his wife attending second year in succession and for providing Professional Service to the Trust as an Auditor. Apart from this Sri.Manishankar took time to personally thank each and every member of the TSTS Family that included Mr.Nagarajan Srinivasan, Mr.Dhandapani Raghuraman, Mr. Ramamoorthy Jayakumar, Mr. Swaminathan Gurusubramanian, Mr.Umashankar and more such intellectual members who were present both mentally and physically.

AARTHI and Maha Prasadam:

With this we were ready to witness the much awaited AARTHI to the main deity followed by Prasadam by way of Aval Pori, Sundal, Puliodarai and Panagam. The devotees are then taken to the dining hall for the delicious Maha Prasad prepared by Chef Pattabhi and Team by around 12 noon.

By 1 pm we could witness so many emotional moments as devotees or family members of TSTS Trust, bid adieu to each other with firm commitment to Family traditions and a will to visit each other at opportune moments and in particular to meet again next year at the feet of KAATERI AMMAN.

By 3pm we packed off from the Temple well equipped with food packets for our journey back to Chennai and with loads of Memories and emotional moments. It was close to 11 in the night when everyone of us are back at home. See You in 2024.

Nuances of ITR Filing, made simple and easy

Photo by Nataliya Vaitkevich on Pexels.com

With the passing of each Financial Year, the period from April to June or July, many Tax Payers especially the Salaried Class are perplexed with too many Forms and Documents to be collected and reconciled so as to avoid any defects or any penalty or fine on top of their tax liability or to claim any refund. Having crossed the last date for filing of income tax returns, being 31st July’2023 it is time for professional accountants like us to find ways of comforting these tax payers.

In order to have a hassle free filing of Income tax returns, Tax Payers are expected to have a sound Tax Planning as early as by April of each Year rather than waiting for the IT Dept. to announce Tax Reliefs on their Taxable Income and end up with minimal benefits.

With the Government of India as well as the Income Tax Authority introducing a New Tax Regime so as to make it simple and beneficial to the Tax payers by way of reduced Tax Liability, it is for the Tax Payers to make use of the same.k

By now most of the Tax payers are aware that they are bound to get Full tax Rebate for an Income of up to Rs.7 Lakhs under the New Tax Regime, as against Rs.5 Lakhs at present, still there is a gloom of suspicion that they are not able to press Chapter VI or Section 80 Deductions, which needs to be clarified as they are bound to reap much harvest by way of Savings in the years to come.

Let us take up some of the nuances of ITR Filing for the Current Assessment Year which is likely to be closed by 31^st July’2023 without any Penalty or Fines or Interest u/s 234 A/B or C.

The selection of the right ITR Form from ITR1 to ITR5 going with the type of Assessee, whether an Individual or HUF or a Corporate Entity along with the section under which it is being filed are mandatory and takes centre stage.

Next in line will be the Heads of INCOME falling under the Categories as:

(a)Income from Salary, Wages, Pension, Annuity, Gratuity, Fees, Commission, Leave Encashment.

(b) Income from House Property by way of Rental Income.

(c) Income from Business or Profession in the form of Profits or Gains including any interest, salary, or bonus received by a Partner of a firm.

(d) Income from Capital Gains both Long Term and Short Term on the sale of any Capital Assets owned by the Tax Payer and

(e) Income from Other Sources namely Interest on Savings Account and or Bank Deposits, Securities, dividends, royalty income, winnings from lotteries races and gifts.

Earnings that are Non Taxable–Section 10 of the IT Act provides Tax Exemption on

Income from Agriculture or of Hindu Undivided family, Immovable ancestral property are not taxed.
Gifts including Jewelry. property, money, valuables are Not taxed provided the gifts are received from a relative. But same time Gifts received from a Non-relative will get Tax Exemption only to a Limit of Rs.50,000/- as per Section 56(ii) of the IT Act.
Gratuity received by a government employee on death or retirement are completely exempted. In case of Private Employees the exemption is limited to Rs. 10 Lakhs.
Scholarships received by students as also pension received by winners of gallantry awards are tax free.
Interest income on Savings account are taxable, but certain interest income like those received under Sukanya Samriddhi Yojana, Gold Deposit Bonds, local authority or infrastructure bonds are totally Tax Free as per Section 10(15).

Some of the interesting update:

Taxability of Interest Income earned from Savings account held Jointly with Spouse

Interest earned on joint accounts are taxable in the hands of both the account holders, but at the same time there is No TDS on the Post Office MIS, while Section 80TTA entitles an individual to claim deduction of the interest earned on savings accounts held with a bank, post office or a cooperative society upto Rs.10,000/-.In case of Senior Citizens, this limit is upto Rs.50,000/-, as provided u/s 80TTB.Also Interest on Savings Bank Account is exempt up to Rs.3,000/- for a single account holder and Rs.7,000/- in the case of a Joint Account u/s 10(15) of the IT Act.

Conditions for Claiming HRA and Interest on Housing Loan: If your Salary Income includes House Rent Allowance and residing in a rented house and also you have taken a Housing Loan, then you are eligible to Claim both HRA and the Interest on the Housing Loan provided you do not reside in the same city where your house property is situated. In the case of an under construction house, he can claim only the home loan interest deduction over five years in equal instalments starting from the year in which the construction is completed.

Gratuity is a benefit given by the employer to employees, as per Section 10(10) of the income tax Act, payment of Gratuity in the event of Death or resignation or Disablement on or after 29 march 2018 is Exempt upto Rs.20 Lakhs. Expected clarification on exemption of Gratuity under different situations: 1.Employees covered under Payment of Gratuity Act and Employees of Private Sector – Least of actual Gratuity Received or Rs.20 Lakhs or Last Salary Drawn X No. Of Years of Employment x 15/26 2. Employees Not under Payment of Gratuity Act – Least of Actual Gratuity Received OR Rs.10 Lakhs OR Last 10 months average Salary X No. of Years of employment x ½ 3. Exemption of Gratuity Received by Government Sector Employees – Fully Exempted. Leave Encashment or Payment received under such heading by a Non-Government Employee at the time of retirement or resignation will be fully taxable in the year of receipt, Same time Section 10(10AA) provides exemption to the extent of Rs.25 Lakhs (earlier it was 3 Lakhs) upon satisfying certain conditions. Avoidance of TDS Deduction – By submission of Form 15G/15H Individuals can avoid deduction of TDS on such Dividends whether or not the same exceeds Rs. 5,000/- IT Rules in relation to Expenses and Deductions covered u/s 80DDB Section 80DDB provides deductions in respect of Medical Expenses incurred for treatment of specified disease or ailments for self or dependents like Neurological Diseases such as Dementia, Chorea, Ataxia, and Parkinson’s Disease, Malignant Cancer, AIDS, Chronic Renal Failure and Haematological disorders like Hemophilia or Thalassaemia. The deduction under this section can be claimed from Rs.40,000/- ( for age less than 60 years) to Rs.1,00,000/- (for senior citizens) whichever is lower. Section 80DDB also clearly defines dependents as a person’s spouse, his children, parents, sisters, and brothers. One can claim tax deduction on his/her mother-in-law also if she is dependent on his spouse.

Deductions in a Nut Shell – Chapter VI– ONLY for those opt for Taxability under Old Regime

Section Details & Limit 80 C LIC/ ELSS / EPF / Home Loan Principal / Children Tuition Fees / PPF/ Sukanya Samridhi for Girl Child / NSC / PO FD – Overall Limit u/s 80C. Rs.1,50,000/- 80 CCC Investments in Pension Funds 80 (CCD)1 Employee Contribution in APY & NPS 80 (CCD) 2 Employer Contribution in NPS up to 10% or 14% of Basic Salary 80 D Medical Insurance Premium & Medical Expenses 50,000/- 80 DD Medical Treatment of Dependent with Disability 1,25,000/- 80 DDB Specified Diseases 1,00,000/- 80 E Interest on Higher Education Loan 100% of Interest up to 8 Years 80 EEA Interest Paid on Housing Loan 1,50,000/- 80 EEB Interest on Electric Vehicle Loan 1,50,000/- 80 G Donation to Charitable Institutions 100% or 50% 80 GGA Donation to Scientific Research & Rural Development 100 % 80 QQB Royalty Income Lower of Rs.3 Lakhs or Specified Income 80 TTA Interest on Savings Account 10,000/- 80 TTB Interest on Deposits and Senior Citizens FDs 50,000/- 80 U Exemption for Disabled Individuals Minor Disability 75,000/- Severe Disability 1,25,000/-

On a different note some of the Tax payers wish to know, as to how to address a situation where the information shown under Annual Information Statement (AIS) in the Income Tax portal differs with actual financial transactions as backed up through Bank Statements or other Data.

Experts clearly advice as under such situations, if you have sufficient evidence backing your facts through authorized sources like bank Statements etc., then use that data to file ITR and do not solely depend on AIS to file the ITR. For instance, some tax payers saw that their AIS is not showing information about interest earned from savings account backed by Interest Certificate provided by the bank then they should take or rely on the Interest Certificate to file their ITR.

Some of the common mistakes by Taxpayers while filing an ITR

1. Wrong ITR – Many Individual Tax payers being Salaried Assessee file ITR1 but in reality they have to file ITR2. 2. Disclose only one Salary, when they have worked with two employers and has drawn two salaries. 3. Disclose a Wrong Bank Account that may or may not be active for receipt of Refund due. Not disclosing Foreign Account Shares. 4. Fail to Claim Interest Deductions u/s 80TTA or 80TTB as the case may be. 5. Not checking AIS/TIS reconciliation, which is a critical error as this will affect the ITR processing. 6. Knowingly or unknowingly does not Claim Senior Citizen Medical Expense, that provides a deduction limit of Rs.50,000/-. 7. Fail to claim deductions just because they are not part of Form 16. 8. Fail to Verify ITR within 30 days from date of filing. 9. Fail to maintain documents relating to Deductions for Ten Years.

While a tax payer undergoes strenuous effort to file his/her income tax return following all legal rules and regulations, there is a set of Assessee, particularly the salaried class, who exerts a cavalier attitude towards filing an ITR, complete with fake rent receipts from close relatives, extra claims against home loans, false donations and a slew of dodgy practices encouraged by some of the tax practitioners with a promise to slash tax outgo and prop up refund, may come back to haunt them, in the form of Notice from the Income Tax Department asking them to produce documentary proof for claiming exemptions.

One of the most asked questions by a Tax Payer immediately after filing the ITR is “How Long does it take to get the IT Refund “. Refunds against an ITR relates to Tax Paid in excess of Tax payable, by way of TDS or Advance Tax, but the time taken by the IT Dept. to process the Refund depends on several factors like Information Accuracy which includes amongst others to mention proper bank account held by the Tax payer along with fund transfer credentials, Filing Deadline that relates to filing the ITR well in time and the process of verification duly completed, Filing Mode where the IT Dept. encourages E-Filing as against the conventional paper filing, in order to process the ITR electronically, and finally Verification which means that only after successful verification the reimbursement process can be taken up.

With this we wish Happy Filing for All our Readers and to Enjoy more Tax Free Income in the Years to come.

Obese, we are here to comfort

Dear All Greetings for bright days ahead. We have successfully passed through the first quarter of 2023 and if time permits we should travel back to 1^st of the year and recap on the New year resolutions made by us and how far we make it a reality.

Forbes Health –One Poll Survey on 2023 resolutions provides the Top Five as:

Improved Mental Health 45%
Improved Fitness 39%
Lose Weight 37%
Improved Diet 33% and
Improved Finances 30%

Health and Fitness remains the most sought after amongst the current generation, but remains a mystery since they are prone to unhealthy food habits and is static at most of the day with digital gadgets and one really expect them to run after physical movements to stay healthy. With most of the Corporates and Employers are likely to return to Offline Work habits, there is certain set of employees who have used their WFH periods with regular workouts in the Gym and are not ready for any compromise on the same once they return to their work sites.

One of my neighbor, a very successful Women Entrepreneur and a Loving Home Maker, remains a perfect role model for being positive in all her deeds, in spite of being over weight. She is definitely not a heavy weight but stays at the next level to todays’ normal men and women in their 80 or 90 KG category, but goes through visible travails in her daily routines while she remains a strong willed self reliant women. Having come across her difficulties in close encounter, I am forced to pen this and would like to create awareness amongst the future generations.

It has been more than two years that I was contemplating to take up a Health related topic and highlight its nuances and the dos and dont’s. Being a Professional, not in the Medical Field, I have spent good time to pick up valuable inputs from experts and Health Professionals.

Going forward certain incidents in our neighborhoods puts a brake in our onward journey in life and brings out the other side of our humanness. One such incident that swallowed much of our time recently happened to be a much talked about wedlock between a well known Producer and Distributer of South Indian Films and Television Serials and a much sought after heroine of TV Serials. They were trolled in the social media not for their tying the knot and not even for their big age gap but unfortunately for the over Weight physical structure of the Bride Groom. They were body shamed with too many un parliamentary words and texts, even though the trolling died off in no time and the pair are happily wedded thereafter.

In another incident, while waiting in the reception of a multi-speciality Hospital, happened to witness the difficulties of two of the Healthcare Workers struggling to move an overweight Obese Patient from the Stretcher to the Bed and to take care of the cleaning requirements of the Patient thereafter.

While being Fat or Overweight is a natural state of an individual, the society need to comfort them at every given opportunity. Let us talk about the humanness of these individual and how they are also achieving in various fields and what we can learn from them, rather than just advising them for weight reduction or otherwise. When it comes to fitness and health care, Nature has gifted us with umpteen number of workouts and fitness programs includig yoga. Research has shown that it is important to have all four types of exercise, endurance, strength, balance, and flexibility.

It is very clear from the above, that “ more than half of world’s population will be overweight or obese without significant action. It is need of the hour to take this in right spirits and do the needful. In spite of being Obese he/she can still be healthy, provided they are free from chronic diseases like hypertension or diabetes.

How does one know that he/she is obese – If an Adult Body Mass Index is less than 18.5,it falls within Underweight range. If the BMI is between 18.5 and 25, then it comes in the Healthy Weight Range. If the BMI is in the range of 25 to 30 then it can be termed as Overweight and when the BMI falls above 30, then the individual falls in the Obesity Range.

With metric measurements, the formula

for BMI=Weight/Height Squared=Weight in Kgs/ Height X Height in Metres

For example Sam’s Weight is 60Kgs and Height is 152 cm or 1.52 m then

Sam’s BMI = 60/(1.52×1.52) = 25.96

Based on above we have Class 1 Obesity (Low Risk), where the BMI will be between 30.0 and 34.9, Class 2(moderate Risk) with BMI at 35.0 to 39.9 and Class 3 ( high Risk) where the BMI will be equal to or greater than 40.0

Mukesh Ambani and Nita Ambani, one of the most Successful Couple both in the Corporate World and Social Circles as well at home as a loving pair and remains a role model to this date. Their Son Anant Ambani expected to carry forward the families’ business empire, is otherwise known for being overweight and obese due to his overeating and love to junk foods. But this was the case until he took up a strenuous training program by famous trainer Vinod Channa and has lost a whopping 108KG in just 18 months on a perfect diet plan that contained Proteins, low carb and fibres.

The percentage of young people eating unhealthy foods has risen by 35% and overall obesity by 44%. The kind of food you put in your body when you are young will mostly stay on for the rest of your life. So it is incredibly important to follow a healthy and nutritious diet.

Causes of Obesity – Diet, Lack of Exercise, environmental factors and genetics.

What leads to Obesity – An individual who Eats uncontrollably and makes very less physical movements then he pushes himself / herself to fall in the Obesity Category. If we consume high amounts of energy, particularly fat and sugar, and do not burn off the energy by regular exercises and physical activity, then much of the surplus energy will be stored by the body as fat.

Types of Obesity: Researchers have identified six types of obese person which can be classified as

Heavy drinking Males
Younger Healthy Females
Physically Sick but Happy Elderly
Affluent Healthy Elderly
Unhappy anxious middle-aged and
Person with Poorest Health

On a brighter note I was impressed to note how the governments can instill fitness habits to its citizens, when I came across a news article that reads “ Bahrain National Cycling Team has launched a campaign aimed at raising awareness about the implications of Obesity and Diabetes, by conducting Cycling Races and Fitness Challenge.

Simple Dos and Don’ts – An Obese person who is conscious enough to realize his health condition and is serious to reduce the excessive weight shall follow certain steps like

Choosing healthier foods which includes whole grains, fruits and vegetables, healthy fats and protein sources.

Limiting unhealthy foods like refined grains and sweets, potatoes, red meat, processed meat, and beverages especially sugary drinks.

Increasing Physical activity, Limiting Television time and avoid having food at the Dining table and instead practice the yesteryear habit of Dining Food on the Floor

Sit and relax on the floor for a minute and get up without hand support. Definitely difficult initially, but quiet easy with regular practice.

Some facts on our lifestyle changes

Recently Residents of Madhavaram, a suburb of Chennai and those staying in and around Thapalpetti area staged a protest against CMRL, Chennai Metro Rail Ltd for scrapping the planned Thapalpetti Metro Station since the next Metro Station is very nearby at around 1 KM. This shows peoples mentality that they could not walk even a distance of 1 KM which will help maintain their health.
Majority of the World’s population are quite busy with their hectic life style and do not have time to keep themselves healthy or stay fit.
The Modern definition of Fitness describes either a person or machine’s ability to perform a specific function or a holistic definition of human adaptability to cope with various situations.

It is very much important that every household elders to inculcate good habits and the necessity to keep fit with the next generation children. Children will be more motivated if the entire family participates in a group activity like family bike rides, walks, yoga sessions or backyard games at least once or twice in a week.

With that it is time to test our fitness level back home and carry out the fine tuning process for a longer healthy and happy life ahead. See You soon, of course in good shape.

War of Rates and Fancy Investment Schemes

The Best Investment you can make, is an Invest in yourself. The more you learn, the more you’ll earn. Warren Buffet

There is no end to learning in our daily Life and when we eye for a Happy and Healthy Life it is mandatory to show the best path for our wealth. Media, it be in print or in visuals remains the best platform to gain expert inputs on the where to and how to invest your savings to gain maximum and timely returns. My mornings normally starts with a brief visit to the Times of India at my door step and with a detailed visit to the Times Business or Times Finance section in the course of the day. I dwell in depth or fall a trap for such a piece of news, when something interesting catch me. As is the case with most of my readers who are looking for that extra income or way of making money out of money, I too came across a catchy advert which invites your money, especially senior citizens to gain that extra percentage of interest on their idle money.

One such invitation happened to be from Axis Bank who are ready to provide 8.01% interest on Fixed Deposits from Senior Citizens or SC in short while it is 7.26% for others with a mention in minute font as usual that such special rates will be valid only for 15 days, which is more than enough to trap this set of population.

‘Make a smarter choice this year’ shouts out Yes Bank to SCs with an offer @ 8.25% and 7.75% to others, with a lock in period of 35 months.

ICICI Bank for its part offers 7.5% on a tenor of 15 months to 2 years, while it is 7.15% for others.

Here is a mega offer for SCs @ 8.8% on FDs maturing between 2 to 3 years from a well registered Small Finance Bank from Bengaluru, while it is 8.1% for others which does not allow both Auto Renewal and pre-mature withdrawal.

Also the current trend in the financial market is that the Investment offers are coming with fancy schemes like 444 days / 555 days / 999 days etc.

Investors in general will be on the lookout for best Rate of Return or the Investment Yield, which is nothing but the annual income on their investment that includes dividends, coupons, interest or net income, expressed as a percentage by dividing the same by the investment.

Before we analyze the rate of return on our investments, it makes sense to check as to why do different banks offer different rates of interest on their uniform inflow from the public. Banks and NBFCs are engaged in optimizing their profitability by Investing in income generating sources like equity or mutual funds and the likes, which are in turn highly flexible in a volatile market. This will have direct effect on their interest payments.

On a detailed analysis Debt Funds remains the choice of younger investors but with Senior Citizens it is Fixed Deposits with the right scheme.

How to select the best Fixed Deposit Scheme

Fixed Deposits with a minimum interest rate of 6% in line with current offers.
The Bank or the NBFC with a good Credibility and Safety Ratings through recognized rating agencies like ICRA or CRISIL. For FDs prefer ICRA’s MAAA rating or CRISIL’s FAAA rating.
Depending on our Interest payouts, select between cumulative and non-cumulative schemes.Under cumulative scheme the Interest will get accumulated for the entire tenure, whereas under non-cumulative the Interest earnings will be credited to our account on a monthly, quarterly or semi-quarterly periods. Normally cumulative FDs offer higher payouts.
Ease of approval and simplified application process will have to be considered since most lenders provide Online application that allows enough time to make our review and decide as also less paper work and documentation.
Rate of penalty to be considered that is applied by the lender for premature withdrawal.
Other points to consider namely, a)Safety of investments as guaranteed by Public Sector banks against private sector. b)Comparative analysis of the Investment schemes to achieve optimum returns. c)Unlike Corporate lenders the Fixed Deposit Schemes offered by Banks are independent of Ratings. d)Interest earned are taxable in the hands of the investor as also many of the FD schemes comes with inflation adjusted returns.

Effective 21 Feb’2023 Fixed Deposit Interest Rates for Senior Citizens offered by Top

Both Public and Private Sector Banks quite frequently are affected by the fluctuations in the Repo Rate charged by the RBI which is nothing but the rate at which the Central Bank lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by Monetary Authorities to control inflation.

Reverse Repo rate on the other hand is the rate at which the Central Bank pays to Commercial Banks to park their excess funds.

At a given point in time the Reverse Repo rate given by RBI is generally lower than the Repo Rate. Repo Rate is used to regulate liquidity in the economy, Reverse Repo rate is used to control Cash Flow in the Market.

The Recent Budget proposals announced by The Finance Minister of India Mrs. Nirmala Seetharaman includes “ Mahila Samman Savings Certificates” which is a boon for Women, especially for Girl Child under which, deposits upto Rs.2 Lakhs for a period of two years comes with an interest rate of 7.5% as also with a Partial Withdrawal option. “ Suganya Samrithi Yojana” another interesting savings scheme targeting Girl Child up to 10 Years, and a maximum limit of 1.5 lacs and Interest rate of 7.6% with additional benefit of IT deductions.

Effective 1^st Jan’2023, Shriram Finance Rated (ICRA)AA+ by ICRA and IND AA+ by India Ratings, has come out with a Fixed Deposit Scheme with Interest Rates as high as 9.05% p.a. that includes 0.50% p.a for Senior Citizens and 0.10% p.a for women.

On a different note Senior Citizens are being empowered with more secured options in the form of Pension (PMVVY) and Savings Schemes (SCSS) that comes with very attractive features.

Senior Citizens Savings Scheme (SCSS) introduced by the Government of India in 2004 and Prime Minister’s Vaya Vandana Yojana (PMVVY), a Pension Policy especially for the Senior Citizens introduced by Life Insurance Corporation in 2017 are two of the Top Rated and most sought after in terms of Accrued Interest Payments or Monthly Annuity, but still they differ on certain features and invite investors’ attention for long time benefits:

On a Comparison of Investment Yield of both the Scheme which differs from period to period, as of now SCSS gives a better Yield since the Interest Rate at Quarterly Payout is fixed which is not the case with PMVVY as also with Tax Benefits as shown above.

Having put forward the various avenues available and the ways of selecting best Investment suitable to our needs, it is equally important to avoid Auto Renewal option so as to avail the fluctuations in the interest rates at the time of maturity, which will peak in a developing economy.

With this, it is time to move on to our next phase to put our wealth to the best use it deserves. See you soon.

Investment, Exit Strategies & the Impending Recession

The much awaited year 2023 is here with a bang on all fronts. India has pushed UK to the 4^th position in World Economy Rankings. China, in spite of being in the second place, still maintains its superiority over the New Coronavirus Variants and is keeping WHO on a constant check to control the Pandemic.

The real global GDP growth in 2023 is estimated to be 2.3%, while experts assign a 65% chance of severe global recession.

Ironically Recession emanates from the word Recess that we have frequented during our School days that brings joys to our mental self as we will be allowed to stay away from classes and have some fun. But in reality “Recess” means a period of time in which an organized activity such as study or work is temporarily stopped or Paused. In contrast Recession is the period of decrease in wealth, industrial production and employment, which in every way may not go well with most of us.

Barclays Capital Inc. says 2023 will go down as one of the worst for the world economy in four decades. It may be one of the most anticipated recessions of all time, but that doesn’t mean it will hurt. IMF chief Kristalina Georgieva said that 2023 will be tougher than last year as the US, EU and China see their economies slow while it comes with the backdrop of Ukraine War, rising prices, higher interest rates weigh on the global economy.

As the federal reserve ramps up its most aggressive tightening campaign in decades, the consensus view is that a recession, even though a mild one will hit globally.

We are in for much clearer picture as to the impending recession with a well narrated news item by “The Epoch Times “that reads “2023 spells Big trouble for US Economy, Majority of Large Banks warn “The vast majority of economists at 23 large financial institutions surveyed by the Wall Street Journal predict that the US will fall into the grips of a recession in 2023 and that millions of Americans will lose their jobs. More than two thirds of the nearly two dozen institutions which include trading firms and investment banks that do business directly with the federal reserve, expect the US economy to contract in 2023, according to the Report. While this is the case with the situation in the US, still some of the experts feel that the United States will manage to avoid a downturn as has happened in 2008.

The Editors of the Collins English Dictionary have declared “permacrisis” to be their word of the year for 2022.Defined as “an extended period of instability and insecurity”, it is an ugly portmanteau that accurately encapsulates today’s world as 2023 dawns.

With so much uncertainty about the new year, a cautious outlook seems prudent. Long-term trends and investing norms are shifting. Investors must watch carefully for sector changes and make smart stock picks.

Some analysts see value stocks outpacing growth stocks, as big tech stocks continue to seek new footing. Other expert’s 2023 stock market predictions call for strength in infrastructure stocks and opportunities to profit from mergers and acquisitions

On a recapitulation of how the market fared in 2022, Investors suffered a beat down, with all three major indexes, The Dow Jones Industrial Average down by 8.8%, the tech-heavy Nasdaq endured an ugly fall of more than 33% and the S & P 500 sank 19.5%, making their biggest declines since the 2008 financial crisis. The year was even more challenging for growth stock investors. This was evident from the innovator IBD Stock market outlook, who has switched from confirmed uptrend to uptrend under pressure and to correction several times in 2022.

Asian Stock Markets too came down on 2^nd Jan’2023, extending losses from the previous week as concerns over rising interest rates and a potential recession in 2023 weighed on sentiment, with uncertainty over China’s economic reopening denting regional markets.

Indian banks may have weathered the pandemic with high capital buffers and improved asset quality, but going forward, they face a highly uncertain outlook, the RBI said in a report dt.3 jan’23. “With global growth set to deteriorate in 2022 and with rising prospects of a recession in 2023, credit growth could procyclically decelerate across major economies which, in turn could shrink bank profitability” the report added. On a similar note RBI pegs GDP growth at 6.8% for FY23, projects inflation to fall below 6% by March’23. Shakthikantha Das, RBI governor further added that despite the downward revision in the economic growth projection, India will remain among the fastest growing major economies in the world in 2023.

Indian equities outperformed other global markets in 2022, largely due to the fact that Indian economy is placed in a much better shape amongst the global economies. Unlike other developed markets, recession is not yet on the horizon in India and inflation too is under control for now. Most of the top broking firms expect this trend to continue during 2023 but same time does not expect big positive slides. Almost all of them considers Banking, Consumer staples and Auto Sector to make big strides while Telecom, Industrials, Energy and Utilities to remain neutral at least during the first half of 2023. Nomura predicts Nifty at 19, 030 in 2023 and expects medium term growth in earnings from a high margin base to be largely dependent on broader economic growth. Motilal Oswal expects two themes to play out for the Calendar Year 2023 namely Credit Growth and CAPEX.

In effect we can expect better growth for ICICI Bank, HDFC, SBI, Axis Bank, Infosys, HUL, L&T & Bharti Airtel, while Zydus, Medplus, TCS, IGL & RIL to remain Neutral and Stocks like M & M, Honeywell, Info Edge and DMart are rated to underperform.

From an Investor’s point of view, we normally look at the past 12 months and count on the number of errors and corrections made and the possibility of happy tidings in the current year. In other words, we are bound to fine tune our investment strategies and closely follow the market in terms of fresh investments or the when to exit without any losses.

To sum up, year 2022 had an interesting volatile journey, from sticky inflation forcing us to tighten our spending habits, to the ongoing geopolitical tension that triggered a surge in crude oil and petroleum prices as also to a deluge of rate hikes by RBI. Despite a variety of downers assaulting the market, 2022 has also provided number of demat or retail broking accounts which touched an elusive 10.5 crore accounts, indicating the sustained appetite for equity investments.

Photo by Burak The Weekender on Pexels.com

As we look at 2023, the stock market may have to follow the volatile trend as seen in 2022 as the market tracks the US Fed closely. FMCG Companies, Pharma and Hospitality sector are expected to do well as also the BFSI sector due to strong revival in credit demand, higher interest rates and lower provisioning costs. Companies with strong fundamentals are expected to remain primed for growth. Investors who are patiently stay invested for at least two to three years are likely to have good returns.

In an interesting Economic times report we understand that “as the monetary policy regime moves from Quantitative Easing –easy money supply – to its opposite – Quantitative Tightening, making quick money from stocks will likely become challenging. In effect this will be a first for many investors who joined the rush into equities in recent years and for whom ‘buy-on-dips’ was a sure shot strategy to make money in the market.

Three Key Factors that determines best investment strategy to consider

Risk Tolerance or the amount of risk that we are willing to take prior to an investment. Generally, investors catching up higher risks should be rewarded with higher returns. Many investors are often attracted to high returns on their investments. However, when markets get volatile, and see a sudden dent in their portfolio’s value, they get shaken and unable to stick to their plans and end up panic selling and crystallizing huge losses on their portfolio.
Expected Returns on our investment as we are contemplating a certain amount of returns at a specific time period to achieve our financial goals. This expects us to do some simple arithmetic calculations, by back testing our investment using historical prices and calculating the annualized returns.
Effort required to implement the strategy – the third factor is the amount of effort that we are ready to commit ourselves to successfully implement the investment.

When it comes to Exit from an Investment, it does not necessarily mean to exit and utilize the capital towards non-investment plans, but also include to exit from a more volatile fund and reinvest in a less volatile or high return investments.

Corruption Free India, where do we stand?

Government of India is observing “Vigilance Awareness Week – VAW’2022” from 31 Oct to 6 Nov’22 with the theme” Corruption Free India for a Developed Nation”. Triggered by one of my close associate I felt it’s apt to address the same from a different perspective, from the mindset of a Common man and more particularly from the view point of a conscious tax payer.

The Central Vigilance Commission (CVC)observes vigilance awareness week every year during the week in which October 31-the birth anniversary of India’s First Home Minister Sardar Vallabhbhai Patel – falls.

CVC is responsible to undertake or cause an inquiry into complaints received under the Public Interest Disclosure and Protection of Informer and recommend appropriate action.

We are expected to be Vigilant at all times even in our sleep as we are not sure of a wake up when we go for a sleep. As I am penning this awareness article I did come across the fateful end of three precious lives few days before, near Urappakkam in Chennai. They faced their end in their sleep due to suffocation caused by the Refrigerator explosion from an electrical short circuit. Such is the short life that each one of us going through. Let us be Vigilant ever with our Surroundings.

Before we jump into the positive outcome of VAW’22, let us delve in detail the theme “Corruption Free India” on a broader outlook.

As a common man it is natural to feel the impact of Corruption at all levels over the years and the Governments remains a mute spectator at most of the times in spite of numerous indictments by the Judiciary.

The causes of Corruption in India include excessive regulations, complicated tax and licensing systems, numerous government departments with opaque bureaucracy and discretionary powers, monopoly of government controlled institutions on certain goods and services delivery, and the lack of transparent laws and processes. This includes officials siphoning off money from government social welfare schemes.

In simple terms “Corruption” is improper or selfish exercise of power and influence attached to a public office or to a special position in public life.

According to a 2017 Survey, greed for money or desires, higher levels of market and political monopolization, Low levels of democracy, weak civil participation and low political transparency, were the major factors that gives shape to the ugly face of Corruption.

Forms of Corruption vary but can include Bribery, Extortion, Lobbying, Cronyism, Nepotism, Parochialism, Patronage, Influence peddling, Graft and Embezzlement.

On a lighter note India is Ranked 85^th out of 180 Countries on a Corruption Perceptions Index (CPI) survey published by Transparency International in 2021 on a scale where the lowest –ranked countries are perceived to have the most honest public sector. As per CPI Rankings Denmark, Finland and New Zealand are Ranked Numero Uno followed by Norway, Sweden and Singapore at fourth place, whereas Somalia, Syria and South Sudan are Ranked as the most Corrupt Countries in the World.

CBI has registered 457 Cases of Corruption in 2021 against 549 civil servants including 221 gazetted officers.

Some of the day to day incidents where we indirectly encourage Corruption:

A Vegetable Vendor in our neighborhood Market is forced to pay Rs.100/- to the Police personnel or the Security every time he has to take his Cart inside the market.
It is a daily experience of most of us riding a two wheeler to pay Rs.100 to 500/- to the Traffic Police for petty offences in order to avoid hefty fines as stipulated by the Government.
She is a single Mother of two children, separated from her husband and is forced to approach the Court of Law for her monthly maintenance and each time she has to file a case against her ex-husband for non-payment, forced to bribe the concerned police personnel for filing a case.

On a serious note, we need to understand that Corruption is a serious economic issue as it adversely affects the country’s economic development and achievement of developmental goals. It promotes inefficiencies in utilization of resources, distorts the markets, compromises quality, destroys the environment and of late has become a serious threat to national security. It adds to the deprivation of the poor and weaker sections of the economy.

It is equally disheartening to note that the costs of corruption runs deep in an economy. The Tax Payers’ money is lost in different ways, siphoned off from schools, roads, and hospitals to line the pockets of people up to no good. Equally damaging is the way it corrodes the governments; ability to help grow the economy in a way that benefits all citizens. In effect, the moment taxpayers believe their governments are corrupt, they are more likely to evade paying taxes.

Having put forward the causes and effects of Corruption, it is time to think of preventive measures. One of the strategies successfully deployed by the CVC is by leveraging technology to combat corruption, by persuading organizations to adopt IT and automate the activities and processes vulnerable to corruption. It all started with the Demonetization efforts by the present Indian Government followed by Digitization of Financial Transactions at all levels from Street Vendors to Micro and Medium Enterprises. The results of this exercise have been encouraging and the efforts been recognized internationally.

An important requirement for the success of anti-corruption efforts is that it should be participative and involve all stakeholders and establish coordination among all agencies fighting corruption.

This requires political will to create strong fiscal institutions that promote integrity and accountability throughout the public sector.

Here are some points for the concerned department to help them build effective institutions that curb vulnerabilities to corruption:

Invest in high levels of transparency and independent external scrutiny: This allows Audit Agencies and the Public at large to come forward and provide effective oversight.
Reform institutions: The chance for success are greater when we design reforms to tackle corruption from all angles.
Build a Professional Civil Service: Transparent, merit based hiring and pay reduce opportunities for corruption. The heads of agencies, ministries, and public enterprises must promote ethical behavior by setting a clear tone at the top.
Keep pace with new challenges as technology and opportunities for wrongdoing evolve.
Fight Corruption jointly: Bring all involved to a single platform and device joint efforts to fight corruption.

Some of the recent Corruption Scams that rocked the nation and a blow to the economy:

Stamp Paper Scam of 2002 to the tune of Rs.200 Billion– Abdul Karim Telgi, a convicted Indian Counterfeiter, who earned illegal money for Printing Counterfeit Stamp Paper,
Stock Market Securities Scam of 2001 to the tune of Rs.320 Million – Ketan Parekh, a former Stock Broker of Mumbai, convicted in 2008 for his involvement in manipulation and rigging of Securities.
Coalgate Scam of 2009 for Rs. 1,856 Billion, a major Political Scandal involving Government’s allocation of Coal Deposits to Public and Private Sector Companies, unearthed by CAG.
AGUSTAWESTLAND VVIP Chopper Scam of 2006 for value of Rs.3,600 Crores where it is alleged that deal was signed after due Bribes to middlemen.

Corruption is deep rooted in Bureaucracy especially hospitals, income tax department as also in Tendering and awarding contracts, and invites immediate over hauling.

In line with observance of VAW 2022, the Central Vigilance Commissioner has come out with a notification dated 19 Oct’2022 stating that “ As we progress in the journey towards growth and development, there is an ever-growing need for transparency and integrity in public administration. It is the collective duty and responsibility of all citizens to fight corruption and build a strong and ethical india.”

The Purpose of VAW 2022:

1)Vigilance Awareness Week is one of the tools of the commission in increasing public awareness about the perils of Corruption.

2) All organizations are advised to conduct activities relevant to the theme “ Corruption Free India for a Developed Nation”, that strives to bring maximum public participation.

3) Activities to be conducted may include:

a) Employees may be encouraged to take e-pledge or integrity-pledge by visiting the CVC website (Sample Integrity Pledge Attached)

b) Conduct workshops/sensitization programs for employees and other stake holders, highlighting policies/procedures of CVC on Preventive Vigilance Measures.

c) Conduct various outreach and awareness programs through Vigilance Study Circles.

d) Conduct various Competitions and Quiz programs on issues relating to anti-corruption.

e) Promote the concept of e-integrity pledge by third party with whom the organization deals with.

As a responsible citizen, we are bound to extend total support for all preventive measures taken by CVC, instead of pointing the loop holes found in the system and remain a mute spectator. Let us hope 2022 ends on a high note with flourishing economy and corruption free India.

Green Banks – transition to Clean Energy

The World of Financial Market is in for a transformation every passing day in order to provide best service. Vendors, irrespective of their type of trade or size and volume of transaction are being supported by the technological innovations that comes to their aide. From street vendors to small traders to big corporates and business houses are dependent on the Digital Transactions, that pushes the paper currency to the archeological era, without any compromise on the quality of service.

In contrast to my earlier posts, I was prompted to take up the effects of impending Climate Change globally and what can be done as a responsible citizen.

Banking and financial sector stands tall to grasp any technological innovations when it comes to serving the society. We are already in the grasp of Digital transformation in financial transactions in the form of ATMs, Mobile Banking, Paperless digital payments, Block Chain, Big Data, Mobile Apps, Automated Wealth Managers and Fintech. The current decade has already engulfed by innumerable online financial transactions as customers prefer to stay indoors and use the technological developments thrust upon them.

On the other hand, corporates and business houses especially in the financial sector are encouraged to expand their business environmentally to facilitate clean energy development.

The concept of Clean Energy Institutions or Green Banks was originally developed in the US in the year 2008 followed by the adoption of an amendment to the federal cap and trade bill, called the American Clean Energy and Security Act. Simultaneously in UK in year 2009 a state-backed infrastructure bank was established exclusively for financing to green projects.

Green Banks are mission driven institutions that use innovative financing to accelerate the transition to clean energy to fight climate change, prioritize and care for deploying clean energy. They focus on commercially viable technologies, as opposed to early-stage innovative technologies, as they have been tested and can reliably produce revenue to project-owners. They also harness a diverse set of financing techniques, including credit enhancements, co-investment and securitization.

Also called ethical banking or sustainable banking, green banking is a category of banking practices considering all the social and ecological factors with an aim to defend the environment and preserve natural resources.

Green Banking is an umbrella term referring to practices and guidelines that make banks sustainable in economic, environment and social dimensions. It aims to make banking processes and the use of technology and physical infrastructure as efficient and effective as possible, with zero or minimal impact on the environment.

Green Banking optimizes costs, reduces the risk, enhance the banks’ reputations and contribute to the common good of environmental sustainability and serves both the commercial objective of the bank as well as its social responsibility.

The prime benefit of the green banking approach is the protection of the natural resources and the environment. Green Banking avoids paper work to the optimum level and focuses on electronic transactions like use of ATM, mobile banking, online banking etc. for various banking transactions by customers.

The concept of Green Banking actively develop a pipeline of clean projects and seek out opportunities in the market. All Green Banks have the mission to address climate change, though many also have additional objectives such as improving resiliency or serving low-income communities.

Green Banks use financing not grants, which means that capital financed should be repaid so that the same can be utilized financing another clean energy project. In other words these banks focus on markets where there is potential to pay back as also on projects which are proven and technically viable and well past the research and development stage.

With their focus on clean energy transition, green banks aim to maximize market penetration as quickly as possible in order to displace dirty energy.

It is equally important to note that Sustainable Development Goal 7 as designed by United Nations General Assembly targets Affordable and Clean Energy by 2030.It aims to ensure access to affordable, reliable, sustainable and modern energy for all. Access to Clean Energy is a very important pillar for the wellbeing of the people as well as economic development and poverty alleviation.

The goal has five targets to be achieved by 2030, with the first three are “outcome targets” or universal access to modern clean energy, increase global percentage of renewable energy and double the improvement in energy efficiency and the remaining two are “ means of achieving targets”, viz: to promote access to research, technology and investments in clean energy and expand and upgrade energy services for developing countries.

Green Banks can play an important role to this end for achieving SDG # 7 as above. Progress in expanding access to electricity has been made in several countries notably India, Bangladesh and Kenya. The global population without access to electricity and clean energy decreased to about 840 million in 2017 from 1.2 billion in 2010. Renewable Energy accounted for 17.5 % of global total energy consumption in 2016. Between 2018 to 2030, the annual average investment will need to reach approximately $ 55 billion to expand energy access, about $ 700billion to increase renewable energy and $ 600 billion to improve energy efficiency.

Following are some of the strategies that can be taken up by Banks in India for Green Bank initiatives:

1.Carbon Credit Business: Corporates and business houses are to be encouraged to produce fewer than the allocated carbon emissions and are to be allowed to trade or exchange the balance of the carbon credits with other benefits.

2. Green Banking Financial Products: Banks are to be encouraged to deal in Green Projects or Green based products as also to offer green loans with low rate of interest.

3. Paperless Banking: Customers and account holders are already encouraged to use cash deposit machines or ATMs.

4. Energy Consciousness: Banks and Corporates are to make use of the energy efficient devices and equipments for their day to day operations.

5. Mass Transportation: Employees and Office goers are to use common transport for their mobility.

6.Environmental Buildings: Banks should resort to green environment friendly buildings for their corporate offices, branches and ATMs.

7.Green Revolution: Banks are adapting plantation programs in rainy seasons to save the environment as also supplies Plants to Schools and Colleges.

Some of the Indian Banks who are taking up the Green Banking initiatives:

State Bank Of India: SBI became the first bank in India to venture into generation of green power by installing windmills for captive use. The Bank also offers Green Home loan scheme which supports environment friendly housing projects and offer subsidy and reduction on interest rates.
Punjab National Bank: PNB’s lending policy allows the bank to extend loans to those borrowers who can produce NOC from Pollution Control Board.PNB is the only bank who conducts Energy and Electricity Audit of all its offices and branches as a measure to energy efficiency.
Bank Of Baroda: BOB has implememted Lending Automation Processing Systems for appraisal of retail and SME Loans in order to reduce paper consumption. Lending for Real Estate projects the bank adopts to rain water harvesting and solar energy projects.
ICICI Bank: The Bank’s Green initiative includes-
- a)Instabanking: In order to reduce carbon foot-print of customers, the bank encourages internet banking, i-mobile banking, IVR banking.
- b)Vehicle Finance: The Bank’s Auto Loans offer 50% waiver on processing fee on car models which uses alternate mode of energy with identified models being Maruti’s LPG version of Maruti 800, Omni and Versa, Hyundai’s Santro Eco, Civic Hybrid of Honda etc..
IndusInd Bank: Human aur Hariyali campaign which introduced solar powered ATM’s.
IDBI Bank: Entered into agreements with multi lateral agencies and buyers of carbon offer complete range of clean development mechanism(CDM) related services tailor made to suit the needs of its customers.
Axis bank: Encourage Customer to avoid Paper Statement andaccept e-statement.
Small Industry Development Bank Of India: SIDBI offers a line of credit for financing Energy Saving Projects in MSMEs in order to reduce energy consumption, enhance energy efficiency andreduce carbon-dioxide emissions.
Yes bank: YES BANK is the first Indian signatory to the Carbon Disclosure Project and has documented its carbon footprint.

The World is being slowly invaded by global warming and expects governments and public in general to get prepared for the same while constantly applying for innovative ways to avoid such situation. Financial institutions and banks in particular have an important role to play by way of creation of a strong and successful low carbon economy. In future, business with a higher carbon foot print would be seen as a riskier business and banks may not finance such entities.

In effect Green Banking will become order of the day with more and more organizations falling in line to protect the environment and come out with clean energy projects.