Precauation during E-PAYMENT

e-payment is made compulsory for the taxation payments for the corporate and others covered under mandatory tax audit. This would reduce the time at various level in the organization and also increase the accuracy of the data. While there are benefits of making e-payments, quite obvious, there needs to be some disadvantages too. The main disadvantage of epayment
is related to the security aspects. Finally we are dealing with money which get transferred from one account to another instantly, but knowing the rate by which cyber crimes are increasing, frauds take place over internet, it is very much necessary for all the payees to take care of the following precautions while they make e-payment for taxes or they make payments over
internet for any shopping (buying tickets of airlines, movies, shopping over the internet, etc…)
Online Frauds
Online Frauds occur when someone illegally conducts transactions on your existing accounts. Often called as 'phishing' or 'spoofing', the most current methods of online fraud are usually through fake emails, Web sites and pop-up windows, or any combination of such
methods. The main objective of both offline as well as online fraud is to steal your 'identity'. This phenomenon is commonly known as "identity theft". Identity theft occurs when someone illegally obtains your personal information — such as your credit card number, bank
account number, or other identification and uses it repeatedly to open new accounts or to initiate
transactions in your name.
'Phishing' is an attempt by fraudsters to 'fish' for your banking details. 'Phishing' attempts usually appear in the form of an email appearing to be from your bank. Within
the email you are then usually encouraged to click a link to a fraudulent log on page designed to capture your details. Email addresses can be obtained from publicly available sources or through randomly generated lists.
Although they can be difficult to spot, 'phishing' emails generally ask you to click on a link which takes you back to a spoof web site that looks similar to your bank's website, wherein you are asked to provide, update or confirm sensitive personal information. To prompt you into action, such emails may signify a sense of urgency or threatening condition concerning your account.
The information most commonly sought through such means are:

• Your PIN numbers
• Your Internet Banking Passwords
• Your Bank Account/Credit Card/Debit Card number
• Other verifications parameters, like; your date of birth,
mother's maiden name, etc…
Some fake emails may also contain a virus known as a “Trojan horse” that can record your keystrokes or could trigger background installations of key logging software or viruses onto your computer. The virus may live in an attachment or be accessed via a link in the email.
Never respond to emails, open attachments, or click on links from suspicious or unknown senders.

How to identify the fake email/website
Fake emails/ websites are not always easy to identify,however the below given indicators can help you safeguard against such emails or websites, should you ever come across one of these –
• They ask you for your sensitive information
• They appear to be from the legitimate source
• They often contain spelling mistakes tough the website would appear the same, even the URL of the website would contain spelling mistakes.
• They sometimes promise a prize or gift in exchange of completing the survey, where the sensitive information goes out
• They might contain fraudulent job offers giving workat- home positions
Other precautions
• Always type the address of the website in the address bar of your browser or access it from your stored list of favourites. Never use a link stored in the mail etc…
• Change your Passwords Frequently. Almost all the banks have 2 passwords – Login and Transactions. Try to keep them separate as far as possible. This provides additional security for financial transactions through Internet banking. There were various tips given about managing and maintaining the passwords in the article earlier published by this bulleting in the
month of December 2007.
• Do not share your user ID and passwords with anyone. This is a very common practice that is seen in corporate, where the Internet banking ID and Password are with many. This is the 1st
• Use Virtual Keyboard. Many internet baking websites have started using Virtual keyboard for
passwords. It is the keyboard on the screen and the person has to click (use MOUSE ONLY) on the password letters. If the website is offering this feature, then use it. This is designed to protect the passwords from malicious “Spyware” and “Trojan Programs”. Use of Virtual keyboard will reduce the risk of password theft.
• Check you last login time. Mostly all the internet banking sites provide the user with the details of last login date and time. You should constantly have a watch on this. This will help you to keep yourself alert in case someone else have also logged in using your ID and password.
• Sign up for SMS Alerts. Register for Mobile Banking and receive alerts upon all significant transactions in your account. Anything fishy can immediately be noticed.
• Login Frequently. Enter your internet banking account frequently. This helps to control accounts and also enable you to notice and stop any fraudulent activity quickly.
• Be Cautious. Do not leave internet banking session unattended. Always sign off from your online banking session.
• Never enter, confirm or update your accountrelated details on a pop-up window. The pop ups
can contain links to counterfeit Web sites carefullystep to invite fraudulent practices designed to look real. Hence such websites may look very similar and familiar to you, but are actually used
to collect personal information for illegal use.
• Every transaction you do would generate the unique transaction ID. Store this transaction ID
with you. This is only way to find out by your bank, if there is any thing missed in the transaction.
o It is quite possible that due to technological hazards at that mili-second, your account is debited, but the credit is not passed on. It is the transaction ID by which the bank can track the credit.
o The problem of single entry can also happen if the internet connection in which you are operating is too slow.
• Do not make payments in case the response from the site is very very slow. Sometimes, due to the internet speed at your end or due to the load on the banking website, it is quite possible that the response from the website is very slow. It is not advised to make payments during this time. These are the times when transactions might not get totally completed.
• Enjoy added security when using your credit card online. If you tend to use your Credit Cards
frequently for online shopping, make sure that you sign up for the Verified by Visa and/or Master Card Secure Code program(s).
• Beware of online offers that require you to provide your account details for 'verification'.

INFLATION

CONTINUED FROM YESTARDAY............

DEFINITION OF INFLATION

Inflation is a rise in general level of prices of goods and services over time. Although "inflation" is sometimes used to refer to a rise in the prices of a specific set of goods or services, a rise in prices of one set (such as food) without a rise in others (such as wages) is not included in the original meaning of the word. Inflation can be thought of as a decrease in the value of the unit of currency. It is measured as the percentage rate of change of a price index[1] but it is not uniquely defined because there are various price indices that can be used.
Many economists believe that high rates of inflation are caused by high rates of growth of the money supply.[2] Views on the factors that determine moderate rates of inflation are more varied: changes in inflation are sometimes attributed to fluctuations in real demand for goods and services or in available supplies (i.e. changes in scarcity), and sometimes to changes in the supply or demand for money. In the mid-twentieth century, two camps disagreed strongly on the main causes of inflation at moderate rates: the "monetarists" argued that money supply dominated all other factors in determining inflation, while "Keynesians" argued that real demand was often more important than changes in the money supply.
There are many measures of inflation. For example, different price indices can be used to measure changes in prices that affect different people. Two widely known indices for which inflation rates are reported in many countries are the Consumer Price Index (CPI), which measures consumer prices, and the GDP deflator, which measures price variations associated with domestic production of goods and services.
Measures of inflation
Inflation is measured by calculating the percentage rate of change of a price index, which is called the inflation rate. This rate can be calculated for many different price indices, including:
Consumer price indices (CPIs) which measure the price of a selection of goods purchased by a "typical consumer." In the UK, an alternative index called the Retail Price Index (RPI) uses a slightly different market basket.
Cost-of-living indices (COLI) are indices similar to the CPI which are often used to adjust fixed incomes and contractual incomes to maintain the real value of those incomes.
Producer price indices (PPIs) which measure the prices received by producers. This differs from the CPI in that price subsidization, profits, and taxes may cause the amount received by the producer to differ from what the consumer paid. There is also typically a delay between an increase in the PPI and any resulting increase in the CPI. Producer price inflation measures the pressure being put on producers by the costs of their raw materials. This could be "passed on" as consumer inflation, or it could be absorbed by profits, or offset by increasing productivity. In India and the United States, an earlier version of the PPI was called the Wholesale Price Index.
Commodity price indices, which measure the price of a selection of commodities. In the present commodity price indices are weighted by the relative importance of the components to the "all in" cost of an employee.
The GDP Deflator is a measure of the price of all the goods and services included in Gross Domestic Product (GDP). The US Commerce Department publishes a deflator series for US GDP, defined as its nominal GDP measure divided by its real GDP measure.
Capital goods price Index, although so far no attempt at building such an index has been made, several economists have recently pointed out the necessity of measuring capital goods inflation (inflation in the price of stocks, real estate, and other assets) separately.[citation needed] Indeed a given increase in the supply of money can lead to a rise in inflation (consumption goods inflation) and or to a rise in capital goods price inflation. The growth in money supply has remained fairly constant through since the 1970s however consumption goods price inflation has been reduced because most of the inflation has happened in the capital goods prices.
Other types of inflation measures include:
Regional Inflation The Bureau of Labor Statistics breaks down CPI-U calculations down to different regions of the US.
Historical Inflation Before collecting consistent econometric data became standard for governments, and for the purpose of comparing absolute, rather than relative standards of living, various economists have calculated imputed inflation figures. Most inflation data before the early 20th century is imputed based on the known costs of goods, rather than compiled at the time. It is also used to adjust for the differences in real standard of living for the presence of technology. This is equivalent to not adjusting the composition of baskets over time.
TO BE CONTINUED TOMORROW......................

Golden Quotes

“The most time you will have to spend in your life is with yourself. so make yourself as interesting as possible”

Circular soon for exchanges to audit accounts

India Infoline News Service / Mumbai Jul 11, 2008 15:26
Securities and Exchange Board of India (SEBI) has decided to make it mandatory for stock exchanges and depositories to annually audit their transactions as per new code of conduct evolved by the market regulator.

Securities and Exchange Board of India (SEBI) has decided to make it mandatory for stock exchanges and depositories to annually audit their transactions as per new code of conduct evolved by the market regulator, disclosed its Whole Time Member, Dr. T C Nair.

read more CLICK..........

Stock market players may have to hike capital

MUMBAI: The operating rules for stock brokers and other capital market intermediaries may soon be redrawn, a move which could force all these players to bolster their capital. Stock market regulator SEBI is reviewing the capital requirements of brokers and other market intermediaries, said people familiar with the development. SEBI is reportedly vetting a proposal, under which the net worth norms for intermediaries will be redefined according to the risk each of its arms is incurring in its operations. To read more CLICK.................

CBEC to be renamed

CBEC to be renamed due to phenomenal service tax rise
The ministry of finance is contemplating changing the name of the Central Board of Excise and Customs (CBEC) to Central Board of Excise, Customs and Service Tax (CBECST), announced PC Jha, chairman CBEC. This is because service tax, the latest entrant to the family of indirect taxes, has shown a phenomenal growth ever since it was introduced in 1994.
to read more click..............

MONEY MARKETS

In finance, the money market is the global financial market for short-term borrowing and lending. It provides short-term liquid funding for the global financial system. The money market is where short-term obligations such as Treasury bills, commercial paper and bankers' acceptances are bought and sold.
The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend. Participants borrow and lend for short periods of time, typically up to thirteen months. Money market trades in short term financial instruments commonly called "paper". This contrasts with the capital market for longer-term funding, which is supplied by bonds and equity
Participants
The core of the money market consists of banks borrowing and lending to each other, using commercial paper, repurchase agreements and similar instruments. These instruments are often benchmarked to the London Interbank Offered Rate (LIBOR).
Finance companies such as GMAC typically fund themselves by issuing large amounts of asset-backed commercial paper (ABCP) which is secured by the pledge of eligible assets into an ABCP conduit. Examples of eligible assets include auto loans, credit card receivables, residential/commercial mortgage loans, mortgage backed securities and similar financial assets. Certain large corporations with strong credit ratings, such as General Electric, issue commercial paper on their own credit. Other large corporations arrange for banks to issue commercial paper on their behalf via commercial paper lines.
In the United States, federal, state and local governments all issue paper to meet funding needs. States and local governments issue municipal paper, while the US Treasury issues Treasury bills to fund the US public debt.
Trading companies often purchase bankers' acceptances to be tendered for payment to overseas suppliers.
Retail and Institutional Money Market Funds
Banks
Central Banks
Cash management programs
Arbitrage ABCP conduits, which seek to buy higher yielding paper, while themselves selling cheaper paper.
Trading takes place between banks in the "money centers" (London, New York, and Tokyo).

Common money market instruments
Bankers' acceptance - A draft issued by a bank that will be accepted for payment, effectively the same as a cashier's check.
Certificate of deposit - A time deposit at a bank with a specific maturity date; large-denomination certificates of deposits can be sold before maturity.
Repurchase agreements - Short-term loans—normally for less than two weeks and frequently for one day—arranged by selling securities to an investor with an agreement to repurchase them at a fixed price on a fixed date.
Commercial paper - An unsecured promissory notes with a fixed maturity of one to 270 days; usually sold at a discount from face value.
Eurodollar deposit - Deposits made in U.S. dollars at a bank or bank branch located outside the United States.
Federal Agency Short-Term Securities - (in the US). Short-term securities issued by government sponsored enterprises such as the Farm Credit System, the Federal Home Loan Banks and the Federal National Mortgage Association.
Federal funds - (in the US). Interest-bearing deposits held by banks and other depository institutions at the Federal Reserve; these are immediately available funds that institutions borrow or lend, usually on an overnight basis. They are lent for the federal funds rate.
Municipal notes - (in the US). Short-term notes issued by municipalities in anticipation of tax receipts or other revenues.
Treasury bills - Short-term debt obligations of a national government that are issued to mature in 3 to 12 months. For the U.S., see Treasury bills.
Money market mutual funds - Pooled short maturity, high quality investments which buy money market securities on behalf of retail or institutional investors.
Foreign Exchange Swaps - Exchanging a set of currencies in spot date and the reversal of the exchange of currencies at a predetermined time in the future.

INFLATION

INFLATION
The following is the text of the statement made by Finance Minister P. Chidambaram Saturday, a day after India's inflation reached 11.05 per cent. "Yesterday, the WPI (wholesale price index) for the week ending June 7, 2008 was released. Predictably, grave concern has been expressed at the rate of inflation crossing 11 per cent. "I have carefully read the news reports and the statements made by a number of people. I have also read the editorials in the newspapers. "It is necessary to place the matter in context. The context is a relentless rise in crude oil prices as will be seen from the following table:
Date WPI Inflation (percentage) Nymex Crude Oil Price ($/bbl)
24 Nov 2007 3.11 98.19
1 Mar 2008 6.21 101.85
31 Mar 2008 8.75 127.37
7 June 2008 11.05 137.54
"Since the Budget was presented on Feb 29, 2008, crude oil prices have increased by 37 per cent. "Besides, we administer the prices of only four petroleum products - petrol, diesel, LPG (liquified petroleum gas) and kerosene (PDS - public distribution system). All other petroleum products and derivatives are sold at market prices. When crude oil prices rise, those prices also rise. For the week ending June 7, 2008, the week-on-week increase in inflation was 1.77 per cent. Of this, the petroleum products under administered prices contributed 0.79 per cent and other petroleum products contributed 0.88 per cent, making a total of 1.67 per cent. Thus, fully 94 per cent of the week-on-week increase in inflation is attributable to petroleum products. "In the primary articles group, the index for food articles declined by 1.11 per cent. For the group as a whole, the index declined by 0.37 per cent. Even the manufactured products group registered only a small increase of 0.30 per cent. It is the 'fuel, power and light' group that has sharply pushed up the inflation rate. The most important driver of the current inflation is crude oil prices. "Last evening (Friday), I called on the prime minister and had a long discussion with him. This morning, I invited the Governor, RBI (Reserve Bank of India) to meet me and we have reviewed the situation. "I am happy to take note of the sober and reasonable advice given by Shri Yashwant Sinha, a prominent leader of the principal opposition party. He has suggested that Government could have gone for 'deeper cuts in taxes'. I have no quarrel with the proposition. After the Budget Estimates were presented to parliament, we have cut taxes and sacrificed considerable revenue. Only recently, we gave up revenues of Rs.22,000 crore (Rs.220 billion). I may point out that giving up revenues and borrowing an equivalent amount in the market in order to finance expenditure would also be inflationary. Nevertheless, I take Shri Sinha's suggestion on board and will explore the options. "We take comfort in the fact that there has been record production of wheat and paddy and we have adequate stocks of wheat and rice. We have procured 220 lakh (22 million) tonnes of wheat and, so far, 260 lakh (26 million) tonnes of rice. We will provide adequate wheat and rice to the PDS and we will also use our stocks to moderate prices in the open market. Hence, there is no cause for worry regarding wheat and rice. "Given the difficult circumstances, government will take appropriate measures in order to contain and moderate inflation. A number of well-meaning experts as well as the editorials have advised that the authorities should take monetary measures; that we should not give room for panic; that we should take steps to quell inflationary expectations. That is precisely the course that the government has adopted in the past and will adopt in the future too."

to be continued tomorrow........

ELECCTION OF MEMBERS OF COMMITTEE OF JAB WE MET CA

ELECCTION OF MEMBERS OF COMMITTEE OF JAB WE MET CA

Please suggest NAMES for the following positions of JAB WET CA GROUP:

1) PRESIDENT:
2) VICE PRESIDENT:
3 General Secretary –SOURAV SONI OR ANY OTHER PERSON WHO HAD DONE CS.

4) Treasurer:

5) Press Secretary: the person should have the links with media

Please suggest the names of responsible, dedicated, helpful, disciplined and pleasing personality. All of the above will be responsible for conducting future meetings and making arrangement of JAB WE MET CA group. These will be doing the work to strengthen the unity and co-ordination among all of us . Decision will be taken on the basis of MAJORITY.

Please suggest the names by the end of tomorrow. you can suggest me the names by e-mail or message at my mobile no 09872233989. Please intimate other member of the group also through mobile to regularly check their e-mails and reply either via e-mail or through message if they did not have the access to internet.

IF ANYBODY HAVE ANY OTHER IDEA TO BRING UNITY AMONG US PLEASE LET ME KNOW.

"Coming TOGETHER is a beginning
Keeping TOGETHER is process
Working TOGETHER is SUCCESS

Golden Quotes

Coming TOGETHER is a beginning
Keeping TOGETHER is process
Working TOGETHER is SUCCESS