India needs to create bad bank quickly - Arvind Subramanian

NEW DELHI - India needs to create a bad bank quickly, the finance ministry's top economic adviser said on Wednesday, supporting forthright views expressed by Viral Acharya, the new deputy governor of the Reserve Bank of India.

Chief Economic Adviser Arvind Subramanian, who has proposed setting up a public asset rehabilitation agency to fix the balance sheets

`Promoting biz, investment necessary to address trade deficit`

Promoting two-way commerce and investment between India and China is necessary to bridge the widening trade deficit between the two neighbours, a Chinese official said.

"The issue of trade deficit between India and China needs to be addressed and therefore, promoting business, trade and investment is necessary between the two countries," Liu Jinsong, Minister Counsellor, Emb

RBI sets rupee reference rate at 66.9644 against dollar

The Reserve Bank of India today fixed the reference rate of the rupee at 66.9644 against the US dollar and 70.5403 for the euro.

The corresponding rates were 66.9771 and 71.0560, yesterday. According to an RBI statement, the exchange rates for the pound and the yen against the rupee were 83.6921and 58.98 per 100 yens, respectively, based on reference rates for the dollar and cross-cur

Cabinet approves signing of India-Australia MoU to boost aviation security

The Union Cabinet on Wednesday gave its approval for signing of a memorandum of understanding (MoU) between India and Australia for promotion and development of cooperation in civil aviation security.

According to Cabinet statement, the MoU will provide an opportunity to Indian aviation security authorities to share the expertise of their Australian counterparts and enhance the overal

India`s bankers sceptical over RBI proposal on bad loans

By Devidutta Tripathy

MUMBAI - A proposal by India's central bank to set up new private or state companies that would buy up bad debt from lenders was met with widespread scepticism by bankers on Wednesday, who warned the plan would add more complexity and delay any restructuring.

Banks in India have record stressed loans of $133 billion, or 12.34 p

Cabinet okays pact between India, Poland on coop in agriculture

The Cabinet has given its approval for signing of an Agreement between India and Poland on cooperation in the field of agriculture and allied sectors. “The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for signing of an Agreement between India and Poland on cooperation in the field of agriculture and allied sectors,” said an official statement

Russia still India`s largest defence partner

Despite India expanding its military ties with the US, Europe and Israel, Russia remains New Delhi's number one supplier of weapons with America at a distant second, according to a report on global arms trade in the last five years.

From 2012 to 2016, Russia supplied 68 per cent of India's arms import, as per the survey by Stockholm International Peace Research Institute (SIPR

No plans to introduce Rs 1,000 notes: Shaktikanta Das

The government has no plans to introduce Rs 1,000 notes and the focus is on increasing production of lower denomination currencies, Economic Affairs Secretary Shaktikanta Das said as per the PTI report. He also said complaints of cash shortages at ATMs are being addressed and requested people to desist from withdrawing more money than they need. "No plans to introduce Rs 1000 notes.

Urgent steps need to be taken to resolve NPAs: Viral V Acharya

Newly-appointed Reserve Bank deputy governor Viral V Acharya has called for some urgent steps to resolve NPAs, saying none of the "piece-by-piece approach" offered so far has worked, including the AQR, simply because of "the many discretions given to banks" as also their "skewed incentive system", said media reports.

He also said even the December 2015 as

Government to reduce MDR charges to encourage digital payments: Reports

The Indian Government has said that it is looking to reduce Merchant Discount Rate (MDR) charges to encourage digital payments. Commenting on the issue, Niti Aayog Chief Executive Amitabh Kant told the media, "We are pushing digital transactions. Our aim is to bring down MDR charges. Also, if volume of transactions increase, MDR charges will come down."

"We are examinin

`Using RBI funds to recapitalise banks not a good idea`

RBI deputy governor Viral V Acharya suggested that using a part of the Reserve Bank reserves for recapitalising state-run banks may not be a good idea, reported PTI.

After an assessment of the money required for handling various stress scenarios in the banking system and the financial markets, the RBI transfers its surplus or the dividend, to the government. Once it transfers the mone

FIPB clears 15 FDI proposals worth Rs 12,000 cr

Inter-ministerial body FIPB today approved 15 investment proposals, including that of Apollo Hospitals, Hindustan Aeronautics, Dr Reddy's and Vodafone, envisaging foreign investment of Rs 12,200 crore. "15 out of 24 FDI proposals were approved while three were rejected," sources said as per the media report. The Foreign Investment Promotion Board (FIPB), headed by Economic Affairs

Market took DeMo positively; rising dollar dampened sentiment

The Finance Ministry said demonetisation of Rs 500/1,000 notes last year was viewed "positively" by the market though the bullish sentiment was restrained due to strengthening of US dollar, reported PTI.

"The government's decision on November 8, 2016 to demonetise high denomination value notes was viewed positively by the market as deposits were expected to surge in

Narendra Modi to US: Develop a farsighted perspective on movement of professionals

Welcoming a 26-member bipartisan delegation from the US Congress, Prime Minister Narendra Modi on Tuesday urged the United States to develop a balanced outlook towards the movement of skilled professionals, said an official here.

Underlining the contribution of the Indian talent to the US economy and society, the Prime Minister asked the United States to develop a reflective, balanced

Bank account suspected for money laundering will be probed: CBDT

The CBDT has said that any bank account suspected to have been misused for money laundering or shell company operations won't be exempted from probe under 'Operation Clean Money' despite having low deposits.

The Central Board of Direct Taxes (CBDT), the policy- making making body of the department, issued specific guidelines to ascertain if a particular cash deposit is gen

India must urgently resolve bad debt at lenders - RBI deputy governor

By Suvashree Choudhury and Rafael Nam

MUMBAI - Reserve Bank of India (RBI) Deputy Governor Viral Acharya said India needs to urgently address the large amounts of bad debt held by its lenders, outlining potential solutions including the creation of public or private agencies to buy the soured loans.

Acharya, in his first speech since taking up his post

G-sec yields hit by note ban; public debt rises 2.4% in Q3

Union government securities' (G-sec) yields declined sharply during the third quarter ended December 2016 on account of the demonetisation drive that led to a surge in bank deposits and bullish market sentiment, an official said on Tuesday.

"G-sec yields declined sharply across the curve during the quarter, post the government's decision in November to demonetise high den

UP Power Corp raises Rs 6,510 cr on BSE Bond platform

Stock market major BSE on Tuesday reported that state-run Uttar Pradesh Power Corporation has raised Rs 6,510 crore worth of debt capital on its bond platform.

"On February 16, 2017, UP Power Corporation successfully raised a whopping Rs 6,510 crore the highest ever mobilisation of debt capital by a public sector unit on the BSE BOND platform," the stock exchange major said

Media attacks orchestrated to harm Infosys reputation: Vishal Sikka

Terming media stories on Panaya acquisition false and malicious, Infosys Chief Executive Vishal Sikka told its employees that the attacks were orchestrated by people hell-bent on harming their reputation.

"Once again, some newspapers have carried false and malicious stories about our company -- this time it is about the acquisition of Panaya. These speculations and fabrications a

Corporate philanthropy lesser known in India: Arun Jaitley

Finance Minister Arun Jaitley on Tuesday said that conventionally corporate philanthropy was lesser known in India, but it has begun well as an institutionalised mechanism in the form of corporate social responsibility (CSR).

"Conventionally corporate philanthropy lesser known in India. But it has begun well as institutionalised mechanism," Jaitley said here in his keynote a

Making Digital Payments a mass movement in India: Amitabh Kant

Addressing the media on the progress in making Digital Payments a mass movement in India, CEO Niti Aayog Amitabh Kant said that there are nearly 10 lakh citizens who have so far got reward money of over Rs. 153.5 crore for embracing digital payments.

"Among the 9.8 lakh winners, more than 9.2 lakh consumers, 56000 merchants and 120 consumers have won the prize money worth Rs. one

Indian economy to reach $5 trn by 2025: Morgan Stanley

India's millennial population is a massive disruptive force and driven by this supportive demographics alongwith government's policy action, Indian economy is likely to reach USD 5 trillion by 2025, says a report as per the PTI. India's USD 2.2 trillion economy makes it the seventh largest in the world in terms of nominal GDP (and the third largest in PPP terms), but the country'

India wants certainty, transparency in US visa regime: Nirmala Sitharaman

India pitched for certainty in the US visa regime arguing that businesses flourish only in a stable environment, reported PTI. Commerce and Industry Minister Nirmala Sitharaman said that the issue has been discussed in detail with a group of US Congressmen. "We have discussed in detail as to what the uncertainties are all about...Business always flourishes in an environment of certainty an

Banks may be history unless they evolve into new-age digital bank: RBI

The Reserve Bank of India (RBI) on Monday said the traditional banks needed to evolve into new-age digital banks to remain operational as financial technology (FinTech) lending companies were emerging fast as alternative source for the micro-small medium enterprises (MSMEs).

"The age of FinTech is here and for the incumbent banks there is no time to lose. The banks that do not qu