The World Opinion

Category: Economy

  • Cisco Layoffs: Tech Giant To Cut 5,600 Jobs In Latest Round | Economy News

    New Delhi: Tech giant Cisco has announced another round of layoffs, affecting about 5,600 employees which accounts for around 7 per cent of its global workforce. This follows a similar downsizing in February, when Cisco laid off over 4,000 employees earlier this year.

    Cisco, in August 2024 hinted at plans to cut staff. However, the company did not specify which individuals or departments would be affected. This lack of clarity made the recent wave of layoffs surprising for many.

    Employees were only informed in mid-September, leading to nearly a month of uncertainty. This delay has caused growing discontent among the workforce, with many feeling they were kept in the dark throughout the process.

    A report from TechCrunch reveals that the work environment at Cisco has been worsening. SEveral employees have described the atmosphere as “toxic.” citing poor communication as a major issue. One of the employees mentioned that this was the “worst work environment” they had ever experienced at Cisco. The report also indicates that the layoffs have impacted Talos Security, Cisco’s threat intelligence and security research division.

    Cisco in a statement from August explained that its second round of layoffs this year would allow the company to “invest in key growth opportunities and drive more efficiencies.” Despite the job cuts, the company reported that 2024 was its “second strongest year on record,” with an annual revenue of approximately 54 billion dollars. This financial report was released on the same day as the layoff announcement. Company records also show that CEO Chuck Robbins received a compensation of around 32 million dollars in 2023.

  • What Will Happen If You Have Opened 2 Sukanya Samriddhi Accounts For Your Daughter? Read New Govt Guidelines | Personal Finance News

    New Delhi: The Department of Economic Affairs (DEA), Ministry of Finance has issued guidelines for processing the cases of regularization of irregularly opened accounts under various National Small Savings Schemes through Post Offices. 

    DEA in a circular, issued on August 21 issued new guidelines, identifying — lrregular NSS accounts, PPF account opened under the name a minor, More than one PPF Account, Extension of PPF account by NRI, Small Savings scheme account opened under the name of a minor (Except PPF and SSA) and Regularization of Sukanya Samriddhl Account (SSA) opened by Grandparents, other than Guardian.

    DEA has issued giudelines on condition if more than two SSY accounts are opened in the name of a daughter and also in case of accounts opened under the guardianship of grandparents. What will happen in such cases?

    (a). ln case of accounts opened under the guardianship of grandparents (who are other than legal guardian), the guardianship shall be transferred to a person entitled under the law in force, that is, to the natural guardian (alive parents) or Legal Guardian.

    (b). lf more than two accounts are opened in a family in violation of Para 3 of Sukanya Samriddhi Account Scheme, 2019, then the irregular accounts shall be closed by treating it as account opened in contravention to the scheme guidelines.

    The circular said, all Post Offices are directed to obtain PAN and Aadhaar details of the account holder(s)/ guardian (if not already available) without fail and feed the same in the system before forwarding the regularization requests to this office.

    All Post Offices shall take urgent action to identify such accounts and inform account holders of the approved guidelines through all channels. All Circles/Regions/Divisions are requested to proactively track cases that need regularization, so as to avoid inconvenience to account holders of the small savings schemes.

    Who Can Open Sukanya Samriddhi Account?

    Sukanya Samriddhi Account can be opened in the name of a girl child till she attains the age of 10 years. Account can be opened in Post offices and notified branches of commercial banks. The rate of interest on Sukanya Samriddhi Account is 8% Per Annum, calculated on yearly basis, and Yearly compounded. 

    Account can be opened with a minimum of Rs 250 and Maximum Rs 1,50,000 in a financial year. Subsequent deposit in multiple of Rs 50. Deposits can be made in lump-sum No limit on number of deposits either in a month or in a Financial year. 

  • Government Urges Edible Oil Processors To Hold Retail Prices Despite Duty Hikes, Assures Ample Stock at Lower Tariffs | Economy News

    New Delhi: The government has asked edible oil processors not to hike retail prices following a recent increase in import duties, as there is an enough stock of cooking oils that were shipped at a lower duty.

    The food ministry said the stocks imported at lower duties would easily last 45-50 days, and therefore the processors should refrain from increasing maximum retail prices (MRP).

    Last week, the Centre implemented an increase in the basic customs duty on various edible oils to support domestic oilseed prices. Effective September 14, 2024, the basic customs duty on crude soyabean oil, crude palm oil, and crude sunflower oil has been raised to 20 per cent from nil, making the effective duty on crude oils to 27.5 per cent.

    Additionally, the basic customs duty on refined palm oil, refined sunflower oil, and refined soyabean oil has been increased from 12.5 per cent to 32.5 per cent, making the effective duty on refined oils to 35.75 per cent.

    On Tuesday, Food Secretary Sanjeev Chopra chaired a meeting with the representatives from the Solvent Extraction Association of India (SEA), Indian Vegetable Oil Producers’ Association (IVPA) and Soyabean Oil Producers Association (SOPA) to discuss the pricing strategy.

    “The leading edible oil associations were advised to ensure that the MRP of each oil is maintained till the availability of edible oil stocks imported at 0 per cent and 12.5 per cent Basic Customs Duty (BCD) and take up the issue with their members immediately,” an official statement said.

    “The central government is also aware that there is close to 30 lakh tonnes stock of edible oils imported at lower duty which is sufficient for 45 to 50 days domestic consumption,” it added.

    India imports a large quantity of edible oils to meet domestic demand. The dependence on imports is more than 50 per cent of total requirements.

    The decision to hike import duties is part of the government’s ongoing efforts to bolster domestic oilseed farmers, especially with the new soybean and groundnut crops expected to arrive in markets from October 2024, the food ministry said.

    “The decision follows comprehensive deliberations and is influenced by several factors: increased global production of soybean, oil palm, and other oilseeds; higher global ending stocks of edible oils compared to last year; and falling global prices due to surplus production.

    “This situation has led to a surge in imports of inexpensive oils, exerting downward pressure on domestic prices. By raising the landed cost of imported edible oils, these measures aim to enhance domestic oilseed prices, support increased production, and ensure that farmers receive fair compensation for their produce,” the ministry explained.

    India imports palm oil from Malaysia and Indonesia, while the country imports soyabean oil from Brazil and Argentina. Sunflower oil comes mainly from Russia and Ukraine.

  • Wholesale Inflation Falls For Second Month In A Row To 1.31% In August | Economy News

    New Delhi: Wholesale inflation fell for the second consecutive month to 1.31 per cent in August due to cheaper vegetables, food and fuel, government data released on Tuesday showed.

    The wholesale price index (WPI) based inflation was 2.04 per cent in July. It was (-) 0.46 per cent in August last year.

    “Positive rate of inflation in August 2024 is primarily due to increase in prices of food articles, processed food products, other manufacturing, manufacture of textiles and manufacture of machinery & equipment etc,” the industry ministry said in a statement.

    As per the data, inflation in food items was 3.11 per cent in August against 3.45 per cent in July. This was led by declining prices of vegetables, which recorded a deflation of 10.01 per cent in August compared to 8.93 per cent in July.

    Inflation in potatoes and onions continued to be high at 77.96 per cent and 65.75 per cent in August.

    The fuel and power category witnessed deflation of 0.67 per cent in August against inflation of 1.72 per cent in July.

    Data released last week showed retail inflation was at 3.65 per cent in August on higher prices of vegetables. This was higher than 3.60 per cent in July.

    The Reserve Bank of India (RBI), which mainly takes into account retail inflation while framing monetary policy, kept the benchmark interest rate or repo rate unchanged for the ninth consecutive time in August at 6.5 per cent.

  • Sovereign Gold Bond Scheme 2019-20 Series IV Premature Redemption Today: Check How Much Money Will You Get | Economy News

    New Delhi: You may prematurely redeem Sovereign Gold Bond Scheme 2019-20 Series IV issued in 2019 today, September 17.

    “SGB 2019-20 Series IV – Issue date September 17, 2019) on Sovereign Gold Bond Scheme, premature redemption of Gold Bond may be permitted after fifth year from the date of issue of such Gold Bond on the date on which interest is payable. Accordingly, the due date of premature redemption of the above tranche shall be September 17, 2024,” the RBI has said.

    Sovereign Gold Bond Scheme: How Much Money Will You Get?

    Further, the redemption price of SGB shall be based on the simple average of closing gold price of 999 purity of previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA). Accordingly, the redemption price for premature redemption due on September 17, 2024 shall be Rs 7,278 per unit of SGB based on the simple average of closing gold price for the three business days i.e., September 12, September 13 and September 16, 2024.

    What is Sovereign Gold Bond Scheme?

    Sovereign Gold Bond Scheme are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.

    How Is Sovereign Gold Bond Scheme being sold?

    The bonds will be sold through scheduled commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.

    Who can buy Sovereign Gold Bond Scheme?

    The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.

  • Govt Launches ‘BHASKAR’ One Stop Digital Platform To Connect Startup Ecosystem | Economy News

    New Delhi: The Union Minister of Commerce and Industry, Piyush Goyal on Monday, unveiled the Bharat Startup Knowledge Access Registry or BHASKAR digital platform for all the stakeholders of the startup ecosystem to connect and collaborate within the landscape.

    The platform is designed to centralise, streamline, and enhance collaboration among key stakeholders within the entrepreneurial ecosystem, including startups, investors, mentors, service providers, and government bodies.

    Part of the Startup India program, the BHASKAR initiative is a platform meant to help key players in the entrepreneurial ecosystem–startups, investors, mentors, service providers, and government agencies–centralise, simplify, and improve their collaboration.

    Launching BHASKAR!

    A one-stop digital platform for all stakeholders in the Startup space to:

    Connect
    Collaborate &
    Growth Together pic.twitter.com/rQxqY9uf9M
    — Piyush Goyal (@PiyushGoyal) September 16, 2024

    The platform offers a one-stop digital platform that tackles the issues faced by investors and entrepreneurs alike in an effort to fully utilise this potential.By serving as a centralised registry, BHASKAR will enable seamless access to a wide array of resources, tools, and knowledge that will help fuel the entrepreneurial journey from ideation to execution, the Ministry of Commerce & Industry informed.

    The platform will provide startups with immediate access to critical tools and knowledge, enabling faster decision-making and more efficient scaling.The platform will issue a unique BHASKAR ID to ensure personalised interactions with the stakeholders.

    It will also be able to locate relevant resources, collaborators, and opportunities, ensuring faster decision-making and action using the search feature of the platform.

    “The launch of BHASKAR marks a significant step forward in the government’s ongoing efforts to promote innovation, entrepreneurship, and job creation. It will serve as a central hub where startups, investors, service providers, and government bodies can come together to collaborate, exchange ideas, and accelerate growth,” the ministry said in the statement.

    By facilitating easy access to knowledge and resources, BHASKAR will help unlock the full potential of India’s startup ecosystem, driving the country’s emergence as a global leader in entrepreneurship, the ministry added.

    Expressing its hope, the Ministry of Commerce and Industry added that the platform will be pivotal in creating a more resilient, inclusive, and innovation-driven economy, laying the foundation for a prosperous future.As per the official figures of the ministry, there are over 1,46,000 DPIIT-recognised startups functioning in the country, making India one of the world’s most dynamic startup hubs. 

  • SBI Mutual Fund Launches SBI Nifty 500 Index Fund | Personal Finance News

    New Delhi: SBI Mutual Fund has announced the launch of SBI Nifty 500 Index Fund, open-ended scheme replicating/ tracking Nifty 500 Index, as a part of its passive offering. The New Fund Offer (NFO) period for the scheme is September 17 – 24, 2024.

    “The investment objective of the scheme is to provide returns that correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved,” said the company in a release.

    The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in stocks comprising the Nifty 500 Index and up to 5% in Government securities (like G-Secs, SDLs, treasury bills and any other like instruments as specified by the RBI from time to time), including triparty repo and units of liquid mutual fund. 

    The minimum application amount required is of Rs. 5,000 and in multiples of Re. 1 thereafter. Investments can also be done through daily, weekly, monthly, quarterly, semi-annual, and annual SIP (Systematic Investment Plan).

    Shamsher Singh, MD & CEO, SBI Funds Management Limited said: “As the largest fund house in the country, we continue to build on our strong franchise in the passive investment space, in addition to our actively managed funds. The SBI Nifty 500 Index Fund offers investors the opportunity to invest in companies across the entire Indian economy, encompassing over 92% of the total market cap of all listed companies. Investors who seek exposure to not only established large cap companies but also mid and small caps, passively and at a relatively lower cost can consider investing in this fund.”

  • Bank Holiday In THESE States Today For Milad-Un-Nabi — Check Full List | Personal Finance News

    New Delhi: As per the RBI holiday guidelines, banks are closed on account of gazetted and non-gazetted holidays depending on regional festivities and functions. Banks across several states will remain closed today (September 16) on account of Milad-un-Nabi or Id-e Milad (Birthday of Prophet Mohammad) (bara vafat).

    Banks in Ahmedabad, Aizawl, Belapur, Bengaluru, Chennai, Dehradun, Andhra Pradesh, Telangana, Imphal, Jammu, Kanpur, Kochi, Lucknow, Mumbai, Nagpur, New Delhi, Ranchi, Srinagar, and Thiruvananthapuram will be closed on account of Milad-un-Nabi.

    Banks in Kerala were closed on account of Onam. Meanwhile, September 14 also also being a second saturday of the month, banks across all the states were be closed. 

    Following Bank Holidays Are To Be Observed By Various States From September 16 September 18. But all the states will not observe holidays on all the below mentioned dates.

     

     

     

    September 16 — Eid-e-Milad (Monday) — All over India

    September 17 — Indra Jatra (Tuesday) — Sikkim

    September 18 — Sree Narayana Guru Jayanti (Wednesday) — Kerala

    Bank Closures for Weekends in September 2024

    In addition to the holidays, banks will be closed on the following weekends:

    – Sundays: September 1, 8, 15, 22, 29

    – Second Saturday: September 14

    – Fourth Saturday: September 28

    The Reserve Bank of India categorises its holidays into three groups: Holidays under the Negotiable Instruments Act; Holidays under the Negotiable Instruments Act and Real Time Gross Settlement Holiday; and Banks’ Closing of Accounts. However, it’s important to note that bank holidays differ from state to state and are not observed by all banks. These holidays are often based on local festivals or specific occasions announced in those states.

  • GST Council Forms GoM To Review Tax Rate On Health, Life Insurance; Report By Oct 30 | Economy News

    New Delhi: The GST Council on Sunday constituted a 13-member Group of Ministers (GoM) to suggest GST rate on premiums of various health and life insurance products and submit its report by October 30.

    Bihar Deputy Chief Minister Samrat Choudhary is the convenor of the GoM. The members of the panel include members from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu and Telangana.

    The 54th GST Council meeting on September 9 decided to set up a GoM to examine and review the present tax structure of GST on life and medical insurance. A final call by the Council on the taxation of insurance premiums is likely to be taken in the next meeting in November based on the GoM report.

    Currently, 18 per cent of Goods and Services Tax (GST) is levied on insurance premiums. The Terms of Reference (ToR) of the panel also include suggesting tax rate of health/medical insurance including individual, group, family floater and other medical insurance for various categories like senior citizens, middle class, persons with mental illness. Also, suggest tax rates on life insurance, including term insurance, life insurance with investment plans whether individual or group and re-insurance.

    “The GoM is to submit its report by October 30,” 2024,” said the Office Memorandum issued by the GST Council Secretariat on the Constitution of GoM on Life and Health insurance.

    Some opposition-ruled states, including West Bengal, had demanded complete exemption of GST on health and life insurance premiums, while some other states were in favour of lowering the tax to 5 per cent. Even Transport Minister Nitin Gadkari had in July written to Finance Miniter Nirmala Sitharaman on the issue saying “levying GST on life insurance premium amounts to levying tax on the uncertainties of life.” 

    In 2023-24, the centre and states collected Rs 8,262.94 crore through GST on health insurance premiums, while Rs 1,484.36 crore was collected on account of GST on health reinsurance premiums. Sitharaman in her reply to a discussion on the Finance Bill in the Lok Sabha in August had said that 75 per cent of the GST collected goes to states and the Opposition members should ask their state finance ministers to bring the proposal to the GST Council.

  • RBI’s Forex Reserves Set To Cross 700 Bn Dollars Sooner Than Expected In FY25 | Economy News

    New Delhi: Despite global economic headwinds and deepening geopolitical uncertainties, the forex reserves are at record all-time high levels and are set to cross $700 billion in FY25 sooner than expected.

    According to the latest note by global investment firm Jefferies, RBI’s forex reserve is estimated to go up by a massive $53 billion to reach $700 billion in the current fiscal (FY25E). The rupee is now the most stable currency among major economies, it added.

    However, the way forex reserves are surging in FY25, the $700 billion mark does not look very far. India’s forex reserves jumped $5.2 billion to a fresh all-time high of $689.24 billion (in the week ended September 6). According to the weekly RBI data, foreign currency assets (FCAs) grew by $5.10 billion to $604.1 billion.

    The country is currently seeing strong domestic flows. FPI flows into debt markets have also picked up. FPIs bought equities in the Indian stock market worth Rs 16,800 crore last week, taking the total buying to Rs 27,856 crore (till September 13).

    As per the NSDL data, FPIs were buyers of equity in the cash market on all days last week. In 2024, the total investments by FPIs now stand at Rs 70,737 crore to date.

    According to market watchers, positive FPI flows have helped in achieving record forex levels in the country. This is set to create external sector resilience and boost the economy across sectors.

    The substantial foreign exchange reserves will provide the RBI with greater flexibility in monetary policy and currency management. India’s reserve position with the International Monetary Fund (IMF) has gone up $9 million to $4.631 billion.

    According to market experts, India’s strong forex will boost its economic growth trajectory by strengthening its position internationally, drawing in foreign investments, and promoting domestic trade and industry.

    Meanwhile, with the inflation in the second quarter of FY25 likely to remain below the RBI forecast of 4.4 per cent, amid the cooling of food prices, the central bank may consider rate cuts in the forthcoming Monetary Policy Committee (MPC) meetings.

    According to Jefferies, interest rates across the world have seen a sharp jump and a cycle reversal seems likely in the coming quarters which would create headroom for the RBI to also taper down benchmark interest rates in India.