Demonetisation to have high short-term economic costs, Rajan cautioned government

The demonetisation tool used by the Indian government to drive out black money could have long-term benefits but its short-term economic costs would outweigh them, ex-Reserve Bank of India governor Raghuram Rajan feels.

"I was asked by the government in February 2016 for my views on demonetisation, which I gave orally. Although there might be long-term benefits, I felt the likely

India freezes bank accounts of suspected shell companies

NEW DELHI  - India has frozen the bank accounts of 209,032 suspected shell companies as part of a crackdown on illegal transactions and tax evasion, the finance ministry said on Tuesday.

The latest action against shell companies - which have no active business operations or assets - comes months after authorities ordered nearly 200,000 such firms to be shut down.

Water management to decide future elections: NITI Aayog CEO

Management of water resources will decide future elections in states as it is the "most critical" issue facing the country, NITI Aayog CEO Amitabh Kant said on Tuesday.

Kant said India, which was already a water-stressed country, was rapidly moving towards being a water-scarce country. 

"Water is an issue which will decide future elections. Governments wi

Rohingyas, infrastructure projects to figure during Modi`s Myanmar visit

The burning issue of the Rohingyas and India's capacity building measures and infrastructure projects are expected to figure during Prime Minister Narendra Modi's three-day visit to Myanmar starting on Tuesday following the conclusion of the BRICS Summit in Xiamen, China.

This is Modi's first bilateral visit to India's eastern neighbour. He had visited Myanmar in 2014

No info on amount of black money removed by note ban: RBI

The RBI has said that it has no information on how much black money has been extinguished as a result of demonetisation of Rs 500/1,000 notes or about unaccounted cash legitimised through exchange of currency post note ban. Commenting on the issue, a RBI Official told the media, “An estimated Rs 15.28 (rpt) 15.28 lakh crore in junked notes has come back "subject to future corrections

RBI sets rupee reference rate at 64.1164 against dollar

The Reserve Bank of India today fixed the reference rate of the rupee at 64.1164 against the US dollar and 76.2921for the euro. The corresponding rates were 64.0468 and 76.1516 on Sept 4, 2017.

According to an RBI statement, the exchange rates for the pound and the yen against the rupee were 82.8192 and 58.63 per 100 yens, respectively, based on reference rates for the dollar and cros

GST council may lower tax rate on high collections: Reports

A Government Official has said that the GST Council may consider lowering tax on items of common consumption if the high trajectory of collections continues over the next few months. Commenting on the issue, a Government Official told the media, “The first-month collection under the new Goods and Services Tax (GST) regime has been encouraging and if the rising trend continues till Decembe

Rainfall deficit narrows to 3% from 5% in last week: Report

As rainfall improved this week, the deficit narrowed to 3 per cent in this week compared to 5 per cent in the previous, according to a report. Rainfall, which was above normal for most of this week, has narrowed the deficit to 3 per cent from 5 per cent last week, according to Morgan Stanley's report on 'India Economics: Rainfall Deficit Narrowed, Sowing Continued to Contract'. It a

Modi suggests 10 commitments for BRICS leadership in global transformation

Indian Prime Minister Narendra Modi on Tuesday suggested 10 commitments to be made by the BRICS nations, including counter-terrorism efforts, for their role in global transformation.

Speaking at the Dialogue of Emerging Markets and Developing Countries in the course of the 9th BRICS (Brazil, Russia, India, China, South Africa) Summit here, Modi said that the bedrock of India's dev

DIPP launches social media campaign to promote GIs

Cell for IPR Promotions and Management (CIPAM) has launched a social media campaign to promote Indian Geographical Indications to make more people aware about the importance of intellectual property rights (IPRs), the commerce and industry ministry said according to the PTI report. CIPAM, which works under the Department of Industrial Policy and Promotion (DIPP) in the ministry, has started an

Last date for filing of GST returns for Jul, Aug extended

Businesses will have more time to file the final GST returns as the government extended the last date for filing of sales and purchase data as well as payment of taxes for the months of July and August, reported PTI. Now sales return or GSTR-1 for July will have to be filed by September 10 instead of September 5 earlier and purchase returns or GSTR-2 would be filed by September 25 instead of Se

Never backed note ban, warned of damage: Raghuram Rajan

Former RBI governor Raghuram Rajan has stated that he was never in favour of demonetisation and had warned the government of the damage that pulling out 86 per cent of cash would cause to the economy. Rajan was RBI governor in February 2016 when he was asked by the government for his views on junking of old 500 and 1,000 rupee notes, he revealed in his book 'I do what I do'. "At no

GST return filing deadline extended till September 10

The government has extended the deadline for filing the GST sales return -- GSTR-1 -- which was to expire on Tuesday, for another five days till September 10, according to an official announcement.

"GIC (GST Implementation Committee) decides to extend date of GSTR 1, GSTR 2 and GSTR 3 for the month of July to 10th, 25th and 30th September 2017, respectively," the the Central

RBI adds HDFC among banks 'too big to fail' with SBI, ICICI

The Reserve Bank of India (RBI) on Monday announced it has added private lender HDFC Bank to its list of "domestic systemically important banks" (D-SIBs) considered too big to fail.

"In addition to the SBI (State Bank of India) and ICICI Bank, which continue to be identified as Domestic Systemically Important Banks (D-SIBs), the Reserve Bank of India has also identified

CBDT signs 4 more Advance Pricing Agreements

The Central Board of Direct Taxes (CBDT) has entered into four more Advance Pricing Agreements (APAs), pertaining to sectors like telecom, banking, manufacturing and education, during August, an official statement said on Monday.

"Out of these four agreements, three are unilateral and one is a bilateral. The bilateral APA is for international transactions between an Indian compan

BRICS nations sign four pacts

To boost cooperation in different areas, including economy and trade, BRICS member states on Monday signed four agreements at the 9th Summit of the five-nation bloc here.

The four documents are: BRICS (Brazil, Russia, India, China, South Africa) Action Agenda on Economic and Trade Cooperation; BRICS Action Plan for Innovation Cooperation (2017-20); Strategic Framework of BRICS Customs

GST India`s biggest economic reform measure ever: Narendra Modi

Prime Minister Narendra Modi on Monday said that the Goods and Services Tax (GST) introduced in July this year is the biggest economic reform ever in India.

"India is changing fast into one of the most open economies in the world today," Modi said while addressing the BRICS (Brazil, Russia, India, China, South Africa) Business Council meet here as part of the 9th BRICS Summi

DBS Bank India gets RBI nod to turn India franchise into WOS

DBS Bank India on Monday said that it has received "in-principle" approval from the Reserve Bank of India (RBI) to convert its existing India-based franchise to a "locally incorporated wholly-owned subsidiary (WOS)".

"DBS has been present in India for over 20 years. Over this time, we have grown to become the fifth-largest foreign bank in India," said Piy

Short-term note ban costs to outweigh long-term benefits: Raghuram Rajan

RBI former governor Raghuram Rajan had cautioned the government against cost of demonetisation and suggested that there were better alternatives to achieve the main goals of note ban. In his book titled 'I Do What I Do: On Reforms Rhetoric and Resolve', Rajan, who was the governor between 2013 and 2016, had also warned of what would happen if the preparations for demonetisation were ina

ATMs to take 3 months before dispensing Rs 200 notes: Report

While the RBI launched the 200-rupee note a week ago, it may take up to three months for ATMs to start dispensing the new denomination currency, said media reports. As per reports, some banks have even asked the ATM companies to begin testing the new note for recalibration of the machines, though they have not got supplies of the new currency. Commenting on the issue, ATM manufacturing companie

IT department to focus on widening of tax base: Reports

The Income Tax Department has said that it will focus on widening of tax base and maximise e-assessment to cut down on human interface. As per reports, efforts will be made by the Central Board of Direct Taxes (CBDT) to exceed the income tax collection target set for current fiscal by use of big-data analytics. The conference also discussed strategies for widening of tax base, with special focu

RBI reports prove note ban move was immature: Sharad Yadav

Reiterating that the November 8 demonetisation of high-value currency notes was "an immature decision", rebel JD-U leader Sharad Yadav on Monday said recent RBI reports have vindicated his earlier denunciation of the note ban decision.

Yadav, however, welcomed the decision of cabinet reshuffle and hoped the new ministers would help in fulfilling the promises made by the Bhar

RBI sets rupee reference rate at 64.0468 against dollar

The Reserve Bank of India today fixed the reference rate of the rupee at 64.0468 against the US dollar and 76.1516 for the euro.

The corresponding rates were 63.9804 and 76.1047 on Sept 1, 2017. According to an RBI statement, the exchange rates for the pound and the yen against the rupee were 82.9662 and 58.51 per 100 yens, respectively, based on reference rates for the dollar and cro

Suresh Prabhu takes charge as commerce & industry minister

Union minister Suresh Prabhu today took charge of the commerce and industry ministry. His predecessor Nirmala Sitharaman has been elevated as the Defence Minister. Prabhu is taking charge of the commerce department at a time when export growth is waning.

Export growth fell to an eight-month low of 3.94 per cent in July, while trade deficit widened to USD 11.44 billion on account of hi

Economic growth to rise to 7.5% in Q2 FY-18: Rajiv Kumar

Niti Aayog's new Vice-Chairman Rajiv Kumar has said that economic growth in the second quarter (July-September) of 2017-18 is expected to soar to 7- 7.5 per cent on the back of good monsoon and clarity over GST. As per reports, India's GDP growth rate slid to a 3-year low of 5.7 per cent in the first quarter (April-June), mainly on account of a slump in manufacturing.