Place of Effective Management rules target shell companies

Foreign companies operating in India will remain outside the purview of the rules for determining place of effective management (PoEM) that will come into effect from the next fiscal, while companies outside India engaged in active business are also exempt, the government said on Tuesday, adding that PoEM will not apply to firms with turnover of Rs 50 Crore or less in a year.

PoEM rul

Cabinet okays 60-day interest waiver on farm loans from co-op banks

The Union Cabinet on Tuesday approved interest waiver for November and December 2016, for farmers who have taken short term crop loans from cooperative banks for the Rabi sowing season.

Due to the cancellation of legal tender of old Rs 500 and Rs 1,000 notes the farmers were constrained due to inadequacy of cash in carrying out Rabi operations and paying the interest of the short term

Corporates unprepared for managing FX risk, says Ind-Ra

In the event of a 10 per cent rupee depreciation in FY18, the aggregate net leverage (net debt/EBITDA) of top 100 non-financial FX borrowers will increase to 5.6x from 5.1x (FYE16), while interest coverage (EBITDA/interest) will reduce to 2.6x from 2.8x (FYE16) says India Ratings and Research (Ind-Ra).

Based on the shift in net leverage and interest coverage of these corporates, Ind-R

`SBI, other PSU banks to intervene in Aircel-Maxis case`

The State Bank of India and other public sector banks on Tuesday moved the Supreme Court seeking to intervene in the Aircel-Maxis case as a substantial amount of theirs was involved as loans.

A bench of Chief Justice Jagdish Singh Khehar, Justice N.V. Ramana and Justice D.Y. Chandrachud agreed to hear the plea by the bank after Attorney General Mukul Rohatgi mentioned the matter befor

`Where are the fake notes? Even RBI doesn`t know`

The Reserve Bank of India has admitted it has no confirmed data of the number or value of fake currencies detected since the demonetisation of Rs 500 and Rs 1,000 notes, a RTI query has revealed.

"We presently don't have the confirmed data on this query," said a reply from the RBI's Department of Currency Management (Forged Note Vigilance Division), to prominent acti

Panel submits report to modify FRBM: Reports

The N K Singh-headed panel has said that it has submitted its four-volume report on modifying the 13-year old Fiscal Responsibility and Budget Management (FRBM) Act to Finance Minister Arun Jaitley. As per reports, the five-member panel was tasked to review the FRBM Act in view of suggestions that there should be a broad range for government's fiscal deficit in place of the current practice

Online portal for Government purchases to save Rs 40,000 cr: Ministry

The Commerce Ministry has said that the online portal launched for government purchases of goods and services would result in savings of Rs 40,000 crore annually for the exchequer. Commenting on the issue, a Commerce Ministry Official told the media, "Demand aggregation for most of the common use goods and services is estimated to result in annual savings to the tune of Rs 40,000 crore per

Union Budget to bring changes in tax framework: CARE

A rating agency has said that the much-awaited Union Budget for 2017-18 is expected to bring in some major changes to the tax framework for individuals and corporates following the demonetisation measure.

According to Care Ratings, the Budget on February 1 would be addressing issues with respect to "additional revenue garnered on account of the income disclosure scheme as part of

Government likely to set fiscal deficit target of 3.4%: Goldman Sachs

A research report has said that the Government is likely to set fiscal deficit target in the range of 3.3-3.4 per cent of GDP for the financial year 2017-18 in the upcoming Budget. The Budget for the financial year 2017-18 will be presented on February 1.

Commenting on the issue, a Goldman Sachs Official told the media, "We think that the government will have to tread very carefu

RBI may consider extending deadline for reduced MDR: Dharmendra Pradhan

Petroleum Minister Dharmendra Pradhan today said RBI may consider extending deadline for reduced Merchant Discount Rate (MDR) charges at petrol pumps beyond March 31 to promote digital transaction, reported PTI.

"RBI may reconsider looking into emerging acceptance of cashless payment, digital transactions. It is up to RBI how long they will extend that model of MDR," he said

DEA Secretary Shaktikanta Das gets 3-month extension

The government extended the tenure of Economic Affairs Secretary Shaktikanta Das by three months till May 31, reported PTI.

"The Appointment Committee of Cabinet has approved the proposal for extension in service in respect of Shaktikanta Das, IAS (TN: 1980), Secretary, Department of Economic Affairs, for a period of three months w.E.F March 1, 2017 to May 31, 2017," an offi

No schemes for poll-bound states in Budget, EC tells government

The Election Commission on Monday cleared the decks for the central government to present the Budget 2017 on February 1, but barred it from announcing any schemes for the five poll-bound states.

The poll panel also specified that the Finance Minister's speech should not refer to the government's achievements in these states either.

In a letter addressed to the Cabine

Note ban boosts deposits, lowers bank loan growth: Report

The recent demonetisation in India led to an immediate jump in current account and savings account (CASA) deposits, incremental lending saw a massive drop, while digital banking witnessed a major surge, a report said on Monday.

"Demonetization led to an immediate surge in CASA deposits and CASA ratio jumped 2-4 per cent QoQ (quarter-on-quarter) for banks," American investmen

Union Budget: Industry, experts want corporate tax slashed to 25%

In a bid to attract more investments in the country, both India Inc and analysts are looking for an immediate cut in the corporate tax to bring it down to 25 per cent in the upcoming Union Budget from the current 30 per cent.

"In its pre-budget presentation with the Finance Ministry, the Associated Chambers of Commerce and Industry of India (Assocham) has sought immediate reducti

Panel on digital economy to submit interim report

The committee of Chief Ministers and experts on digital economy will submit its interim report to Prime Minister Narendra Modi on Tuesday, said Andhra Pradesh Chief Minister N. Chandrababu Naidu, who is heading the committee.

He told reporters here on Monday that security aspect will be given top priority in the panel's recommendations.

Naidu said he was preparing the re

SBI calls for raising income tax exemption limits

Presenting an agenda for the forthcoming Union Budget at a time when banks are flush with funds post-demonetisation, state-run SBI on Monday called for raising various income tax exemption limits to boost economic growth.

"We expect an increase in personal income tax exemption limit from Rs 2.5 lakh to Rs 3.0 lakh, increase in Section 80C exemption limit from current Rs 1.5 lakh

UIDAI registration for all Aadhaar authentication devices soon

UIDAI is expected to make it compulsory, in next 4-5 months, for all biometric devices using Aadhaar authentication to embed Aadhaar encryption key into the device at the time of manufacturing. Today, all such devices are STQC certified but registration by way of embedding the encryption key of UIDAI will add another security layer to the hardware at a time when such devices are all set to take

Government to set FY18 fiscal deficit target at 3.3-3.4%: Reports

Government is likely to set fiscal deficit target in the range of 3.3-3.4 per cent of GDP for the financial year 2017-18 in the upcoming Budget, say research reports. The Budget for the financial year 2017-18 will be presented on February 1.

"We think that the government will have to tread very carefully between the need for stimulating demand in a weak economic environment after

RBI sets rupee reference rate at 68.0843 against dollar

The Reserve Bank of India today fixed the reference rate of the rupee at 68.0843 against the US dollar and 73.1498 for the euro. The corresponding rates were 68.0883 and 72.7319 on January 20, 2017, RBI said in a notification.

According to an RBI statement, the exchange rates for the pound and the yen against the rupee were 84.6492 and 60.10 per 100 yens, respectively, based on refere

India`s top court dismisses plea to delay annual budget

NEW DELHI - India's Supreme Court on Monday rejected a petition to delay the annual federal budget, which Finance Minister Arun Jaitley is scheduled to deliver on Feb. 1, dismissing concerns about potential giveaways ahead of critical state polls.

A panel headed by Chief Justice J.S. Khehar found no merit in a public interest litigation by lawyer M.L. Sharma,

RBI Governor reallocates DGs portfolios as Acharya takes charge

RBI Governor Urjit Patel has reallocated portfolios of Deputy Governors following assumption of charge by Viral V Acharya. Apart from Monetary Policy Department, Acharya will look after Economic Policy & Research, Corporate Strategy and Budget and Financial Markets Operations Department, RBI said in a statement today.

Acharya, a professor of Economics in the Department of Finance

FPI outflows at Rs 5,100 cr in January

Foreign investors have pulled out over Rs 5,100 crore from the Indian capital market so far this month over concerns regarding "lower prospects" of economic growth as compared to other emerging markets.

The latest FPI outflow followed withdrawal of close to Rs 77,000 crore on net basis from equity and debts together in last three months (October-December). Prior to that, FPI

Government should double I-T exemption limit to Rs 5 lakh per yr: EY

According to a EY survey the government should double the basic I-T exemption limit to Rs 5 lakh per year and continue with incentives and deductions to corporate houses for stimulating consumption demand and propel private investment post demonetization.

In a pre-budget survey by tax consultant EY, an overwhelming 81.42 per cent of the respondents felt the corporate tax rate would be

India to withstand global uncertainty: K V Kamath

Veteran banker and BRICS nation's National Development Bank chief K V Kamath has said that the world is going through very uncertain times but that may not have much impact on India.

At the same time, he also cautioned against excessive populism and said the country should do "what is right and what is required" and the first focus should be on driving economic growth, a

Restructured edu loans not to be classified as NPAs: RBI

RBI has said that rescheduling of payment period of education loans due to unemployment of borrower will not be treated as restructured accounts for computing NPAs. Commenting on the issue, a RBI Official told the media, “Banks may allow up to three spells of moratorium (not exceeding 6 months each) during life cycle of education loan, taking into account spells of unemployment/underemplo