RBI releases paper on wholesale, long-term finance banks

MUMBAI  - The Reserve Bank of India on Friday released a discussion paper on a proposal to set up "differentiated banks" in the form of wholesale and long-term finance banks to fund large projects.

The new banks will focus on lending long-term and cater to the funding needs of sectors such as infrastructure and core industries, where projects take longe

FICCI lauds RBI policy outlook, seeks greater transmission by banks

Apex industry body FICCI has said that the industry is encouraged by the positive undertone that marks the policy outlook, while the GVA growth forecast for 2017-18 indicates that recovery is expected to gather pace in the current financial year. Commenting on the monetary policy announcement, Pankaj Patel, President, FICCI said, “We are encouraged by the positive undertone that marks the

Banks get time till June 30 to obtain PAN from a/c holders

The tax department has given banks three more months till June 30 to obtain permanent account number (PAN) or Form-60 from all account holders as it looks to tighten the noose around evaders. Though the deadline for getting the PAN or Form 60 (if PAN is not available) by banks ended on February 28, the tax department on April 5 notified the extension of the time till June 30.

In the n

EPFO to launch online Provident Fund withdrawal facility: Minister

Employees’ Provident Fund Organisation (EPFO) has taken various steps to provide various online services like for claims of provident fund, final settlement, withdrawals and pension fund withdrawal, etc. to its members in a quick and transparent manner, says Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in written reply to a question in Rajya Sabha. However, no

Reliance Infrastructure bags Rs 711 cr highways project in Tamil Nadu

 Reliance Infrastructure Ltd on Friday said it has received the Letter of Acceptance from the National Highways Authority of India (NHAI) for the construction of Vikkaravandi to Sethiyahopu section of NH-45C in Tamil Nadu.

The company emerged as the lowest bidder for the development of the project on Engineering, Procurement and Construction (EPC) basis.

In a statement

SBI bad loans balloon, post-merger provisioning may rise

State Bank of India's bad loans have ballooned approximately 50 per cent in the span of a year and those of its five associate banks by 170 per cent.

The bank will likely have to increase its provisioning for bad loans -- setting aside money to partly cover the non-performing assets (NPAs) following its merger with five subsidiaries.

SBI, which had a provisioning coverag

RBI sets rupee reference rate at 64.3928 against dollar

The Reserve Bank of India today fixed the reference rate of the rupee at 64.3928 against the US dollar and 68.5590 for the euro. The corresponding rates were 64.9791 and 69.3912, yesterday.

According to an RBI statement, the exchange rates for the pound and the yen against the rupee were 80.2592 and 58.19 per 100 yens, respectively, based on reference rates for the dollar and cross-cu

RBI raises ARCs` capital requirement to Rs 100 Crore

The Reserve Bank of India (RBI) has raised the capital requirement for asset reconstruction companies (ARCs) to Rs 100 crore, from the current Rs 2 crore, it has announced. This move was necessitated by the higher amount of cash required to buy bad loans from the current financial year, RBI said in note accompanying its first bi-monthly monetary policy statement of the current financial year pr

More scope for banks to cut lending rates: Urjit Patel

The Reserve Bank said there is more scope for the banks to cut lending rates and also asked for a downward revision in the small savings rates administered by the government, reported PTI. "The Monetary Policy Committee took note of the reduction in bank lending rates but saw further scope in a complete reduction, including for small savings and administered rates," Governor Urjit Pat

RBI to look into relaxation on CRAR for cooperative banks

RBI has assured to look into Kerala's request for relaxation of capital to risk-weighted assets ratio (CRAR) for cooperative banks, state Cooperation Minister Kadakampaly Surendran said according to the PTI report.

The state had sought relaxation in CRAR for cooperative banks for the financial year 2016-17 and RBI Governor Urjit Patel had assured the state that the issue would be

RBI's focus on inflation, bad loans to restore investor confidence: Bankers

Various policy initiatives taken by the RBI in its first bi-monthly review of 2017-18 with focus on inflation and stressed asset management will restore confidence of investors in the economy, say bankers according to the PTI report. While leaving the repo rate intact, the Reserve Bank said it will take steps to deal with the mounting problem of bad loans in the banking sector and try to keep i

Meeting inflation target will be a "challenging" task: RBI

Retail inflation is likely to jump to 5 per cent in the second half of current fiscal, RBI said while acknowledging that meeting its mandated target of 4 per cent will be a "challenging" task, said the media report. "What RBI is signalling is that the move to 4 per cent is going to be challenging. There are no lucky disinflationary forces on the horizon that were there in the pas

Banks should transmit lower cost of funds to customers: Industry Chambers

As the Reserve Bank kept its key lending rate on hold, the industry said banks should be nudged to transmit lower cost of funds to customers amid increased liquidity in the system, reported PTI.

Industry chambers also expect the RBI to change its policy stance going forward and effect a rate cut to refurbish business sentiment and support domestic demand. The Reserve Bank of India (RB

Still looking at July 1 for GST rollout: Arun Jaitley

Amid demands by industry and stakeholders to delay implementation of the Goods and Services Tax (GST) system, Union Finance Minister Arun Jaitley on Thursday said the government is still looking at July 1 date for rolling out the new indirect tax regime.

"We are looking at July 1 rollout. If any issues crop up, then the GST Council will address them," Jaitley told reporters

India to set up 100 more incubators

India will invest Rs 200 crore to set up 100 more incubators across the country to support start-ups in innovations, a top official said on Thursday.

"As we want to double the number of incubators over the next four years, we will spend Rs 200 crore on setting up 100 more incubators under the National Initiative for Developing and Harnessing Innovations (NIDHI) programme," S

Rajya Sabha passes all four bills to pave way for GST rollout

Rajya Sabha passed all four legislations to pave the way for roll out of the historic Goods and Services Tax (GST) from the target date of July 1, reported PTI. The Central GST Bill, 2017; The Integrated GST Bill, 2017; The GST (Compensation to States) Bill, 2017; and The Union Territory GST Bill, 2017 were returned by the Rajya Sabha after negation of a host of amendments moved by the oppositi

India`s biggest tax reform nears fruition

NEW DELHI  - India's marathon to overhaul its indirect taxes entered the last lap on Thursday after the Rajya Sabha approved key legislations, paving the way for the rollout of a nationwide goods and services tax (GST) as early as July.

The GST is one of the most significant reforms since India opened its economy in the early 1990s that will harmonise a mosai

Note ban will have positive impact in medium term: ADB

India's note ban will have a positive impact on the economy in the medium term as the banks' profitability is likely to go up with increased lending capacity and lowering of aggregate deposit costs, an ADB report said on Thursday.

"Demonetisation is likely to have a positive impact over the medium term. With more people channeling their savings into the banking system, ba

Liquidity will be factor in Monetary Policy Review in April: RBI

The RBI on Thursday hinted that the fall out of demonetisation, whereby the banking system is flushed with liquidity adding to inflationary pressures, could be a factor in its holding rates in the April policy review.

"With progressive remonetisation, the surplus liquidity in the banking system declined from a peak of Rs 7.96 lakh crore on January 4, 2017, to an average of Rs 6.0

Aiming at double-digit GDP growth: Dharmendra Pradhan

Asserting that there is enthusiasm in the country's energy sector, Union Petroleum and Natural Gas Minister Dharmendra Pradhan on Thursday said that by exploring natural resources, India is aiming at double-digit GDP growth.

Speaking at the Global Natural Resources Conclave (GNRC) here, the Minister for Petroleum and Natural Gas said his ministry is in talks with "Internation

`Mutual funds attract more retail investors`

The mutual fund industry is attracting more retail investors and it has become more relevant for Indians, said the Managing Director of HDFC Asset Management Company Ltd here on Thursday.

He also said an online financial planning tool will be helpful for investors to plan their savings.

"More number of retail investors are investing in mutual funds now. Of the total sav

RBI leaves repo rate unchanged, hikes reverse repo rate by 25 bps

In line with expectations, Reserve Bank of India on Thursday kept policy repo rates unchanged in its first bi-monthly monetary policy of this fiscal year, with the objective to bring down headline inflation and combat rising global oil and commodity prices.

“On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) dec

Developmental projects will put Jharkhand on world trade map: Narendra Modi

Prime Minister Narendra Modi on Thursday laid the foundation stones of a slew of projects, including a multi-modal terminal on the Ganga river here, and said the projects will put Jharkhand on the world trade map.

Besides the terminal, Modi laid the foundation stones of a four-lane bridge connecting Jharkhand's Sahebganj with Manihari in Bihar's Katihar district and a 311-km G

Lok Sabha takes up Taxation Laws (Amendment) Bill

 The Lok Sabha on Thursday took up the Taxation Laws (Amendment) Bill for discussion.

The bill, when passed, will amend the Customs Act, 1962; Customs Tariff Act, 1975; Central Excise Act, 1944; Finance Act, 2001; Finance Act, 2005; and repeal certain enactments.

Introducing the bill, Minister of State for Finance Santosh Gangwar urged the members to support it.

E-commerce investors sound alarm bells over impending slowdown

Indian start-ups have sounded alarm bells over an "impending slowdown" in the e-commerce ecosystem due to the "predatory" pricing tactics of foreign players to capture market share, even as homegrown firms wither away because of their inability to compete on funds.

Thus far, $18 billion in Foreign Direct Investment (FDI) has gone into Indian internet firms.