Categories
Motivational

Meet IAS Officer Who Scored AIR 57 In UPSC While Working Full-Time With RBI

When Colin Powell said, “A dream does not become reality through magic; it takes sweat, determination, and hard work”, many people did agree with him. Human beings love to dream about their career, ambitions, and a lot more other things that they aspire to achieve in their lives.

Okay, so coming back to reality, we live in a society where we like to get things done instantly! Instant food, instant replies, food or grocery delivery in under 10 minutes, instant emails, and instant results. We all are guilty of instant gratification. But truth to be told, every good thing takes time and the best and the most valuable thing in life come from working hard to achieve them. An IAS officer Yashni Nagarajan is the leading example of that.

Yashni Nagarajan cracked the UPSC exam and bagged the All India Rank 57 in 2019. Union Public Service Commission or UPSC as it is popularly known is one of the most prestigious and difficult administrative service examinations in India. Lakhs of students prepare for this exam for years, before appearing for it from all over the country. But only a few aspirants clear the examination which is followed by a face-to-face interview that is equally famous for their high level of difficulty.

Yashni Nagarajan cleared her exam in her fourth attempt while working full-time and the reason behind her success was her excellent time management skills. What are the factors that contributed to making her journey successful? Let’s find out:

1. Education & Family Support Played a Crucial Role

Most people underestimate the quality of education in central government schools; there are students like Yashni Nagarajan who prove them wrong. She completed her schooling at Kendriya Vidyalaya, Naharlagun. She enrolled herself in the National Institute of Engineering, Yupia in 2014 and completed her B.Tech in EEE with flying colours.

Her father Thangavel Nagarajan is a retired state PWD engineer and her mother is a retired superintendent of the Itanagar branch at Gauhati High Court Registry. Both of them have been supported throughout her journey.

2. Worked Hard on Weekdays, Studied Harder on Weekends

Yashni believed that if you are working on weekdays, you will have to study on weekends. During her journey, Yashni used to study for 4 to 5 hours dedicatedly every day, while on weekends she used to study the whole day. Studying on weekends strengthens your preparation. And with the right time management skills, you can manage to take out 4-5 hours for studies every day.

3. Choose What You Excel At

Yashni cleared the UPSC exam on her fourth attempt. She failed in her first three attempts but took them as lessons of wisdom.  She shares that in her initial attempt, she chose Geography as an optional subject under the influence of other people. However, she changed the subject later on when noticed that she excel in another subject.

Yashni says that you should choose a subject of your choice so that you can read it with full interest. You will read about it and try to gain in-depth knowledge only if you like the subject. An optional subject plays an important role in the UPSC exam as it helps to score better marks.

4. One Piece of Advice for Other Aspirants

One important piece of advice that Yashni gives to all UPSC aspirants is that Essay and Ethics are two subjects in which they can score the highest. Therefore, it’s very important to give importance to these subjects. She says that though it is difficult to prepare for UPSC while having a full-time job, it is beneficial too! Along with gaining experience, you also master time-management skills. She says, “You will feel less stressed even if you don’t qualify UPSC. And because you already have a job, you don’t worry much about your career. You can become an IAS or IPS officer with hard work and better time management.”

So, if you want to enhance your learning, prepare for a competitive exam, or want to pursue that management course that you have been eyeing for a couple of months- go for it. The story of Yashni Nagarajan is full of inspiration and testimony that hard work, dedication, and excellent time management skills can help you achieve your professional and personal goals.

For more such stories, visit: www.badabusiness.com

Categories
Finance

Financial Policy Normalization Likely To Begin By The End Of FY22

With the interest rates continually declining, the Reserve Bank of India may start tightening the monetary policy. The gradual normalization of the policy is likely to begin by the end of this financial year.

While the CPI inflation moderated marginally to 6.26 percent, the retail inflation declined in June but remained above the 6 percent threshold for the second consecutive month.

A Kotak report noted that a peak in inflation may provide comfort to MPC.

“Softer-than-expected CPI inflation along with broad-based moderation in core inflation is expected to provide relief to the MPC to continue with the pro-growth policy guidance in the near term. While much depends on the incoming data, we expect the onset of gradual policy normalization towards the end of FY2022,” it said.

Core inflation (CPI excluding food, fuel, and pan, tobacco) moderated to 6.2 percent, with flat sequential momentum following a surge of 1.5 percent M-oM in May. After a broad-based increase in the components of core inflation in May, prices have risen a lot lesser in June across all categories except transport and communication.

“We expect core inflation to average 6.1 percent in FY2022 (5.3 percent in FY2021) amid pass-through of global commodity prices and pickup in demand across various services sectors through FY2022,” it said.

While the headline inflation remains elevated above MPC’s upper threshold of 6 percent, the June print suggests that inflation may have peaked and the trajectory in 3QFY22 will moderate towards an average of 4.7 percent.

“We expect RBI to continue to maintain a pro-growth bias in the August policy focus given that a large part of the increase remains supply-driven and, hence, transitory in nature,” it said.

However, as economic activity begins to normalize with progress in vaccination, RBI’s room to ignore the inflationary risks, as well as a closing of the negative output gap, will be restricted, prompting gradual monetary policy normalization from October, although much will depend on the evolution of the pandemic, vaccination, and data, it said.

Categories
Finance

No Complete Ban on Cryptocurrency or Blockchain And Fintech: Finance Minister Nirmala Sitharaman

New Delhi, March 17: Union Finance Minister Nirmala Sitharaman on Monday, March 16, 2021, cleared that there will be no complete ban on cryptocurrency or blockchain and fintech. The minister said that a Cabinet note will all details will get ready soon.

“My view on this is that of course the Supreme Court had commented on cryptocurrency and while the RBI may take a call on official cryptocurrency but from our side, we are very clear that we are not shutting off all options,” Sitharaman had said at an India Today conclave.

She said that people will get adequate time to experiment with bitcoins, cryptocurrency and blockchain. “We will allow a certain amount of window for people to experiment on blockchain and bitcoin. However, the what formulation of cryptocurrency will be part of the Cabinet note which will get ready soon,” Sitharaman said.

Currently, the Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) do not have a legal framework to regulate cryptocurrencies. Recently RBI governor Shaktikanta said that the RBI has certain “major concerns” regarding the financial stability of cryptocurrencies.

The apex court had virtually banned cryptocurrency trading in 2018. However, Supreme Court last year struck down RBI’s banking ban on digital currencies, terming it unconstitutional.

Categories
MSME

MSME Sector ‘Growth Engine’ of Indian Economy, Contributes around 30% to GDP, Says RBI Governor Shaktikanta Das

The Micro, Small and Medium Enterprises have been gaining momentum in past few years. Government at various levels, the MSME Ministry, Public Sector Banks, and NBFCs among other state agencies have been implementing several initiatives for the development of the sector and encourage more and more people to establish their businesses in the MSME sector. The sector did suffer owing to the coronavirus outbreak and the subsequent lockdown, which lead to curb on all the economic activities across the country. However, the various micro, small and medium enterprises are now on the path of revival and will soon bloom to its full potential soon again. Union Budget 2021: Here Is What the First Paperless Budget Has In Store for the MSME Sector.

Addressing the 185th Foundation Day Celebration of Bombay Chamber of Commerce and Industry, Governor of the Reserve Bank of India Shaktikanta Das said that the Micro, Small and Medium Enterprises (MSME) sector has emerged as the growth engine of the economy and is showing signs of revival after the COVID-led degrowth in early part of the current financial year (2020-21). Das added that the sector has been rendered vulnerable by the pandemic necessitating concerted effected effects to combat the stress and focus on the revival of the sector.

He informed that MSME sector -a vast network of around 6.33 Crore enterprises- is contributing about 30 per cent of the nominal Gross Domestic Product (GDP) of the country and 48 per cent to the total exports of India. “As digital capabilities improve and connectivity becomes omnipresent technological innovation and technology-driven revolution are poised to quickly and radically change India’s economy,”said Das. Adding that the Reserve Bank of India has also made necessary intervention to support economy’s critical sector- referring to the micro, small and medium enterprises. Major Boost to MSME Sector: Govt Trying to Make 5,000 MSME Clusters Under SFURTI Initiate, Says Union Minister Nitin Gadkari.

Meanwhile, the central government on its end has also been contributing towards the development of the MSME sector. In the Union Budget for the upcoming financial year 2021-22, Finance Minister Nirmala Sitharaman has proposed an allocation of a fund of over Rs 15,000 Crore to the Micro, Small and Medium Enterprises, which stands at double the amount apportioned to the sector last fiscal. A reduction in the custom duties has also been proposed, with duties on semis, flat, and long products of non-alloy, alloy, and stainless steels has been reduced to 7.5 per cent uniformly.

Categories
Startup

Loan App Scams: RBI Cautions Against Loans Offered by Unauthorised Platforms, Apps, Here’s How People Can Avoid Falling Prey to it

Mumbai, December 25: Loan app scams have surfaced lately and a result of which, RBI cautioned people asking them to be careful. Loans are being offered by unauthorised digital platforms, mobile applications promising a quick and hassle-free process.

RBI Cautions People Against Loans Being Offered by Unauthorised Platforms, Apps Promising Quick & Hassle-Free Approach

Several individuals/small businesses have fallen prey to the growing number of unauthorised digital lending platforms, Mobile Apps on promises of getting loans.

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Here’s what the scam is:

Loans are being offered by unauthorised digital platforms, mobile applications promising a quick and hassle-free process. Excessive rates of interest and additional hidden charges are being demanded from borrowers. This also follows high-handed recovery methods are being done.

Several unauthorised apps are involved in the scam, to name a few would be-Hey Fish, Monkey cash, Cash Elephant, Loan Zone, Cash Zone, Water Elephant, Mera Loan. Some instant personal loan apps involved were are Cash Mama, Loan zone and Dhana Dhan.

Here’s how people can avoid falling prey to such scams:

  • Don’t share copies of KYC documents with unidentified persons, unverified/unauthorised Apps
  • Fraudulent activities can be reported to law enforcement agencies or RBI’s Sachet portal (https://sachet.rbi.org.in)

    It is very important for people to be careful and as fraudsters are always finding ways to dupe people.

 

 

Categories
Finance

GST Council Meet: Compensation Gap Stands at Rs 2.35 Lakh Crore for FY 2020-21 Amid COVID-19 Pandemic, Centre Places 2 Options Before States

New Delhi, August 27: Union Finance Minister Nirmala Sitharaman on Thursday chaired the 41st Goods and Services Tax Council Meeting. During the meeting, the council estimated the compensation gap at around Rs 2.35 lakh crore in GST collections due to COVID-19 pandemic.

Addressing the press conference, Revenue Secretary Ajay Bhushan Pandey stated that the total shortfall in collection of GST is estimated at Rs 2.35 lakh crore, out of which Rs 97,000 crore is on account of GST shortfall while the rest is due to COVID-19 pandemic.

Following this, the Union Finance Ministry gave the states seven days time to get back on filling the compensation gap of Rs 2.35 lakh crore and hinted brief GST Council meeting soon. The Union Ministry also gave two options for states to fill the compensation gap.

The first includes a special window which can be provided to the states, in consultation with the Reserve Bank of India, at a reasonable interest rate for the borrowing of Rs 97,000 crore. The amount can be repaid after five years (of GST implementation) ending 2022 from cess collection. While the second option is to borrow the entire Rs 2.35 lakh crore shortfall under the special window.

Apart from this, the Union Ministry stated that it will provide a further relaxation of 0.5 per cent in states’ borrowing limit under Fiscal Responsibility and Budget Management Act, 2003 (FRBM Act, 2003). With this, states can choose to borrow more, beyond the expected compensation itself, since that is the injury caused by COVID-19.

Among other details, Union FM Revenue Secretary said that there was hardly any GST Collection in April and May. Adding more, he said, “Total GST compensation during April-July 2020 to be paid is Rs 1.5 lakh crores.” The Union Ministry informed that Centre released more than Rs 1.65 lakh crore as GST compensation to states for FY 2019-20, including Rs 13,806 crore for March.

Categories
Startup

RBI Says ‘Promoting Startup And Ensuring Their Survival is Critical in Generating More Employment’

Mumbai, August 25: Reserve Bank of India (RBI) on Tuesday said that the promotion of young firms and startups and ensuring their survival is critical for generating more employment generation and higher productivity-led economic growth in India. RBI’s annual report for 2019-20 mentioned that it will be essential to reorient resources and policy focus in this direction.

RBI in its report mentioned that Indian IT firms are already leading globally in terms of developing applications using artificial intelligence (AI), machine learning (ML), robotics, and blockchain technology. This niche advantage needs to be leveraged to strengthen India’s position as an innovation hub, coupled with India’s ‘Start-up India’ campaign which recognises the potential of young entrepreneurs of the country.

Commenting on the economic growth revival of the country following the impact of coronavirus, RBI said that the government’s consumption will continue to support current economic demand while private consumption is expected to lead the recovery.

 

 

 

Categories
Finance MSME Startup

Ministry of MSME Issues Circular Stating RBI’s Criteria for Classification of Enterprises Under MSMED Act, 2006, Here Are the Details

New Delhi, August 24: The Ministry of Micro, Small and Medium and Medium Enterprises on Monday issued the Reserve Bank of India’s notification for clarifications of small and medium and medium enterprises in the country. The re-classification of MSMEs have been done by the Union government under the Micro Small and Medium Enterprises Development Act, 2006 and is effective from July 1, 2020.

Under the Gazette notification, released by the RBI and reissued by Ministry of MSMEs, several criteria have been mentioned which contains the definition of Micro, Small and Medium Enterprises as per Section 7 (I) of the MSMED Act, 2006.

Definition of MSMEs under MSMED Act:

Micro Enterprise: A firm where the investment in plant and machinery or equipment does not exceed Rs 1 crore. Also, turnover does not exceed Rs 5 crore.

Small Enterprise: A firm where the investment in plant and machinery or equipment does not exceed Rs 10 crore. Also, turnover does not exceed Rs 50 crore.

Medium Enterprise: A firm where the investment in plant and machinery or equipment does not exceed Rs 50 crore. Also, turnover does not exceed Rs 250 crore.

Apart from this, the RBI notification mentioned composite criterion of investment and turnover for the classification of MSMEs. It says that if an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover, it will cease to exist in that category.

The notification said that all the enterprises — whose Goods and Services Tax Identification Number (GSTIN) are listed against the
same Permanent Account Number (PAN) — will be collectively treated as one enterprise. Adding more, it said that the turnover and investment figures for all of those entities will be seen together and only the aggregate values will be considered for classification of MSMEs.

Calculation of Turnover:

For the calculation of investment in plant and machinery or equipment in an enterprise, RBI said that it will link Income Tax Return (ITR) of the previous years filed under the Income Tax Act, 1961. For new enterprises — whose ITR details are not available — the investment will be based on self-declaration of the promoter of the enterprise.

However, those relaxations will end after the March 31 of the financial year in which it files its first ITR. Also, purchase — invoice — the value of a plant and machinery or equipment will be taken into account excluding GST — on self-disclosure basis — if the enterprise is a new one without any ITR.

Among other details, RBI said that it will exclude exports of goods or services or both while calculating the turnover of any enterprise for MSMEs for classification. Adding more, RBI circular stated that information related with turnover and exports turnover for an enterprise will be linked to the Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN. For an enterprise, who don’t have PAN, their turnover will be considered on a self-declaration basis for a period up to March 31, 2021. Following this, PAN and GSTIN will be mandatory.

Categories
Finance Legal Startup

RBI Extends Deadline For Udyog Aadhaar Memorandum of MSME Registrations Till March 31, 2021

New Delhi, August 24: The Reserve Bank of India on Monday extended the validity of Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandum (UAMs) from June 30, 2020, to March 31, 2021. The RBI circular even stated that all the enterprises are required to register online and obtain ‘Udyam Registration Certificate’ to be classified as MSME as per new definition.

Issuing the circular, RBI said, “The existing Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandum (UAMs) of the MSMEs obtained till June 30, 2020, shall remain valid till March 31, 2021. Further, all enterprises registered till June 30, 2020, shall file new registration in the Udyam Registration Portal well before March 31, 2021.”

Adding more, the circular noted, “‘Udyam Registration Certificate’ issued on self-declaration basis for enterprises exempted from filing GSTR and/or ITR returns will be valid for the time being, up to March 31, 2021.”

Following this, the Ministry of MSME said that the registration for Udyog Aadhaar Memorandum website is up and the registrations are underway. The Ministry said that the need for a document for classification purpose has been dispensed for a paperless approach.

Here’s what MSME tweeted:

Apart from this, the Ministry of MSMEs said in its circular that classification and re-classification of MSMEs is the statutory responsibility of the government. These classifications are done as per the provisions of the MSMED Act, 2006. With this, all lenders will have to obtain ‘Udyam Registration Certificate’ from the entrepreneurs.

Categories
Finance Startup Strategy

Narendra Modi Govt Operationlises Rs 20,000 Crore Stressed Fund to Benefit Around 2 Lakh MSMEs, Issues Guidelines for CGSSD Under Atmanirbhar Bharat Package

New Delhi, August 19: Prime Minister Narendra Modi-led Union Government on Wednesday operationalised Rs 20,000 crore stressed fund aiming to benefit around 2 lakh MSMEs. Apart from this, the Union government has also issued guidelines for Credit Guarantee Scheme for Subordinate Debt (CGSSD) which was announced under the Atmanirbhar Bharat package.

According to the plan of the government, the subordinate debt that will be provided by the banks would be fully guaranteed through the Credit Guarantee Trust for Medium and Small Entrepreneurs (CGTMSE) and be counted as quasi-equity. In the subordinate debt, support of Rs 4,000 crore would be given by the government to CGTMSE. Through the CGSSD, a guarantee coverage will be provided for MSME restructuring. Under the scheme, 90 per cent guarantee will be covered by the trust, while 10 per cent will be covered by the concerned promoter.

Here’s the MSME tweet:

Who are eligible for CGSSD?

1) MSMEs whose accounts have been standard as on March 31, 2018, with regular operations — standard or NPA — through FY 2019.

2) Stressed MSME units which were SMA-2 and NPA as of April 30, 2020.

Requirements for availing sub-debt under CGSSD:

1) After fulfilling the eligibility criteria, all the promoters of the MSME units will be given credit equal to 15 per cent of stake in the company or Rs 75 lakh.

2) A separate loan account needs to be opened. All the promoters will have to infuse sub-debt or loan amount as promoter contribution.

3) As per RBI norms, all MSME loans would be linked to an external benchmark.

4) The maximum tenor for repayment will be 10 years, with a 7-year moratorium on principal payment.

5) Following the completion of the moratorium, principal amount to be repaid within 3 years. However, no additional charge will be levied in case of pre-payment of the loan.