Sakshi Education
- Multi-sectoral, multi-dimensional policy stimulus will boost stability, growth: CII
Industry body Confederation of Indian Industry (CII) has said that the multi-sectoral and multi-dimensional policy stimulus announced last week will have significant impact, imparting stability and underpinning a new growth impetus for India.
It said, the measures announced come at a time when the world economy is buffeted by global headwinds and trade slowdown. The Industry body further added it expects that the economy will climb up in the coming months.
The government announced a raft of measures, including rollback of enhanced super-rich tax on foreign and domestic equity investors, exemption of start-ups from 'angel tax', a package to address distress in the automobile sector and upfront infusion of 70,000 crore rupees to public sector banks, in efforts to boost economic growth.
- Serbia becomes 73rd country to join AIIB
Serbia officially became the 73rd non-regional member of the Asian Infrastructure Investment Bank (AIIB).
The membership allows the country access to favourable loans for priority projects. The AIIB started operations in 2016, and besides Serbia, non-regional members included Great Britain, Germany, France, Italy, Spain and other.
- RTGS System To Open At 7 AM
In order to promote digital transactions, the Reserve Bank of India (RBI) has extended the customer transactions timing for Real-Time Gross Settlement (RTGS) system by an hour.
Funds can be transferred through the RTGS system from 7 am instead of 8 am from 26 August 2019. At present, RTGS system is available for customer transactions from 8 am to 6 pm.
- RBI to transfer Rs 1.76 lakh crore as dividend, surplus reserve to government
The Reserve Bank of India(RBI) has decided to transfer 1.76 lakh crore rupees as dividend and surplus reserve to the government.
RBI informed that this amount includes over 1,23,000 crore rupees of surplus for the year 2018-19 and 52,637 crore rupees of excess provisions identified as per the revised Economic Capital Framework.
The statement informs that RBI’s Central Board has accepted the recommendations of a high-level panel headed by former RBI Governor Bimal Jalan on transfer of excess reserves to the government.
It adds that the Central Board has finalized RBI’s accounts for 2018-19 using the revised framework as suggested by the Jalan committee to determine risk provisioning and surplus transfer.
- Government extends last date for furnishing of annual return in form GSTR-9
The Government has extended the last date for furnishing of annual return in form GSTR-9 or form GSTR-9A and reconciliation statement in FORM GSTR-9C for the financial year 2017-18 to 30th November 2019.
The last date for filing return was 31st August, 2019.
- September to be celebrated as a month of nutrition
PM Narendra Modi announced to celebrate September as a month of nutrition.
In his Mann Ki Baat programme, he laid emphasis on creating awareness to fight malnutrition among children, particularly the girl child.
Gujarat Government launched a pilot project, Poshan Abhiyan, last year, which is a statewide mission to eradicate malnutrition among children.
- Government permits 100% FDI in coal mining, associated infrastructure
The Union Cabinet has relaxed Foreign Direct Investment rule for foreign single-brand retailers and also permitted foreign investment in contract manufacturing and coal mining.
100 per cent FDI under automatic route in coal mining and associated infrastructure has been approved.
To boost domestic manufacturing, 100 per cent FDI in contract manufacturing under automatic route has been allowed.
26 per cent FDI has also been allowed under government route for uploading and streaming of News and Current Affairs through Digital Media.
On FDI in single-brand retailing, the Cabinet has expanded the definition of mandatory 30 per cent domestic sourcing norm.
It also allowed single-brand retailers to start on-line sales, waiving the previous condition of setting up a mandatory brick-and-mortar store.
- India, Nepal organize training programme on EXIM Bank's guidelines
The Embassy of India in Nepal and National Reconstruction Authority (NRA) of Nepal organized a two-day training programme in Kathmandu on the Export-Import (EXIM) Bank of India’s Line of Credit guidelines and procedures.
Senior experts from the EXIM Bank of India conducted the training programme which was attended by 27 officials from Government of Nepal.
The first day of the training covered a general introduction to the EXIM Bank of India’s Line of Credit (LOC) modality including project identification, pre-qualification and tendering process, evaluation of tender documents, empanelment process, project implementation and monitoring.
The second-day training included a session by Nepal Government officials on Import/Export and domestic tax for Indian contractors involved in LoC projects in Nepal. A total of 28 Indian contractors attended this training session.
The training programme, which concluded yesterday, was organized as part of a bilateral understanding reached between Government of Nepal and Government of India during the 7th Line of Credit (LOC) Review Meeting held in June 2019 in India.
The two sides also agreed to collaborate on future capacity building efforts of the Government of Nepal officials who would be working on the Government of India’s Line of Credit supported projects.
- Digital media firms term FDI norms as ‘restrictive’
Companies operating news portals on 29 August, 2019 expressed disappointment with the government’s new Foreign Direct Investment (FDI) policy capping the investment in digital media at 26% and asserted that the measure would impact both existing digital platforms as also affect new platforms that may be looking to expand.
Commerce Minister Piyush Goyal announced that the Cabinet had cleared FDI up to 26% under the “government route” for digital media companies that upload or stream news and current affairs.
This is a departure from existing policy, as until now only the print media and news broadcast television companies in India have had FDI caps of 26% and 49% respectively, while there have been no restrictions so far on foreign investors or entities running digital media ventures aimed at Indian consumers.
- Indian Bank opened MSME processing centre
Indian Bank has opened MSME CPC (centralised processing centre) in Chennai.
The centralised processing centre will give a boost to the bank’s MSME portfolio and will lead to speedy disposal of micro, small and medium enterprises’ loans.
The bank has also deployed skilled manpower in the CPC to improve credit quality and shorten transaction processing time.
- Government announces mega merger of public sector banks
The government has announced the merger of ten public sector banks into four banks for a strong financial system to make the country a five trillion economy.- The merger of Oriental Bank of Commerce and United Bank with Punjab National Bank. The new merged bank will be the second largest PSB in the country.
- Canara and Syndicate Bank will also be merged to become the fourth largest PSB.
- Merger of Union Bank of India, Andhra Bank and Corporation Bank will create India's fifth largest PSB.
- Indian Bank and Allahabad Bank will be merged. The new bank will be seventh largest.
The profitability of public sector banks has improved and total gross non-performing assets have come down to 7.9 lakh crore rupees in March, 2019 from 8.65 lakh crore rupees in December, 2018.
The FM clarified that no retrenchment has taken place post-merger of Bank of Baroda, Dena Bank and Vijaya Bank and staff has been redeployed and best practices in each bank have been replicated in others.
Ms Sitharaman also unveiled governance reforms in public sector banks, saying their boards will be given autonomy and enabled to do succession planning.
The government is trying to build next-generation banks and eight PSBs have launched repo-linked loans in last one week.
There will be no interference in the bank's commercial decisions.
Loans above 250 crore rupees are being closely monitored.
- Income Tax (I-T) Department to adopt tax payers friendly approach
The Income Tax (I-T) Department decided to adopt friendly approach in its dealings with the tax assessees following Finance Minister Nirmala Sitharaman's call for a mindset change among tax officials.The I-T Department to bridge the communcation gap between tax officials and the assessees and sought a change in mindset amid allegations of "tax terrorism".
The issues are concerned and solve issues by treating them respectfully
The I-T department is set to change its approach and adopt friendly language but not at the cost of forgoing any lapses.
The department will use friendly language in its communications with taxpayers rather than intimidating, according to a source, amid allegations of intrusive, threatening and arbitrary behaviour by the department.
The data mining and data analytics, the Central Board of Direct Taxes (CBDT) is now working on ways to ensure the department makes information such as large-cash deposits or high-value transactions" available to taxpayers well in time for filing of tax returns.
On the lines of reminders for filing returns, messages could be sent to indicate transactions while stating that they are ignored if already responded to or accounted.
The Central Board of Direct Taxes (CBDT) introduce a computer-generated Document Identification Number (DIN), which will be quoted in any notice issued by its officials.
- State Bank of India aims to eliminate debit cards
State Bank of India bank debit cards from the banking system as the bank plans to promote more digital payment solutions and eliminate the plastic cards.
The debit cards by customers of SBI which services a fifth of the population.
Around 90 crore debit cards in the country as against 3 crore credit cards, and pointed out to digital solutions like its own 'Yono' platform as the key for achieving a debit card-less country.
Kumar said through the Yono platform, one can withdraw cash at automated teller machines or pay for purchases at a merchant establishment without having a card at all.
The bank already set up 68,000 'Yono cashpoints' and is in the process of scaling it up massively to over 1 million in the next 18 months.which will make the necessity to have a card even less.
The Yono platform can also give credit for buying certain merchandise, making the credit card in the pocket also as a stand-by.
In the next five years, there will be a limited need to have any plastic cards in your pocket, Kumar said, pointing out that virtual coupons is the future.
The QR code is also a very inexpensive way of ensuring payments.
- CBDT says small start-ups with turnover upto Rs 25 crore to continue to get promised tax holiday
The Central Board of Direct Taxes (CBDT) has clarified that small start-ups with turnover upto 25 crore rupees will continue to get the promised tax holiday as specified in the section of the Income Tax Act.
The Act provides deduction for 100 per cent of income of an eligible start-up for 3 years out of 7 years from the year of its incorporation. According to the Finance Ministry, the CBDT also clarified that all the start-ups recognised by Department for Promotion of Industry and Internal Trade-DPIIT which fulfilled the conditions specified in the DPIIT notification did not automatically become eligible for deduction.
- RBI allowed e-mandate for cards
The RBI has permitted processing of e- mandate on credit and debit cards for recurring transactions (merchant payments).
The maximum limit for such a transaction will be Rs 2,000.
While processing the first transaction in e- mandate-based recurring transaction series, additional factor authentication (AFA) validation should be performed.
- Upfront capital for PSBs to boost loan growth
The government’s decision to provide capital to the public sector banks (PSBs) upfront will give them growth capital apart from meeting regulatory requirements, bankers.
Finance Minister Nirmala Sitharaman announced a host of measures to boost the slowing economy and assured to provide 70,000 crore in capital to the PSBs — as announced in the Budget — upfront, which will release liquidity to the tune of 5 lakh crore.
This will benefit corporates, retail borrowers, MSME, small traders etc,according to a presentation made by the Finance Minister.
Many banks, which had reported the April-June earnings, saw their common equity tier-I capital depleted.
These lenders will be benefited as their capital levels will improve.
Typically, the government releases capital at the end of the financial year.
So, there was not much scope to boost loan growth. If the capital is released now, loan growth for the current financial year will get a boost.
- RBI Governor Shaktikanta Das rules out asset quality review of NBFCs
RBI governor Shaktikant Das has ruled out ordering an asset quality review of the large NBFCs but he reiterated the regulatory resolve to not let any large NBFC fail.
He was addressing the press on the sidelines of the national banking conference being organized by the industry lobby Ficci in Mumbai today. He said at the moment there is no such proposal to have an asset quality review on NBFC but also added that 500odd NBFCs and HFCs are closely being monitored by the apex bank and the monitoring and supervision include all aspects of their functioning, including their capital adequacy, stability, their cash inflow, outflow.
The over 12,000-odd non-banking financial institutions, coupled with their housing finance peers, collectively control a quarter of the credit market, have been under severe stress following the bankruptcy of one of the largest players IL&FS group last September.
The IL&FS group owes close to Rs 1 trillion to the system and more than half of that is to banks, mostly state-owned ones. Its failure has made banks highly risk-averse to the NBFC sector, leading to a severe liquidity crunch.
The group is not only under the bankruptcy process now but also under many a probe including by the ED, CBI and the SFIO.
- SEBI announces reward of Rs 1 crore to insider trading informants
The Securities and Exchange Board of India (SEBI) has announced a reward of upto one crore rupees for informants willing to provide credible information regarding insider trading cases.
This will be a part of the detailed set of rules for the new 'Informant Mechanism' under Prohibition of Insider Trading Regulations that was approved by the SEBI board.
The norms also propose a possible amnesty or settlement for minor wrongdoings in return for cooperation in the probe.
SEBI will establish an Office of Informant Protection, which will be responsible for the receipt, registration and processing of the disclosure form and also for ascertaining its authenticity.
Other major decisions include relaxation in 'Muni Bonds' to enable smart city developers and municipalities to raise funds through issuance and listing of their debt securities.
- Indian Railways launches onboard shopping
Indian Railways introduced onboard shopping in train for passengers traveling in the Ahmedabad-Mumbai Karnavati Express.
The services will start from Thursday and passengers can enjoy it on both the directions of the train.
This will give the opportunity to passengers to buy FMCG products of daily need while commuting. The Ministry of Railways tweeted about the new service.
The passengers can buy cosmetics, stationery and other items on some trains on MRP. Among others, household products, oral care, skincare, haircare products, cosmetics, health-related items, paper products, confectionery, stationery products and other will be available and sold as per their maximum retail price.
Apart from the cash payment mode, passengers traveling in the train and buying goods can make payment through credit cards, debit cards, Google Pay and Paytm.
The double-decker Karnavati Express travels from Ahmedabad to Mumbai Central and vice-versa.
The Mumbai division of Western Railway was awarded the contract for onboard shopping for passengers in 16 mail and express trains for a period of five years to a private player who will have the license to sell household products and beauty products among others.
The contract was given for five years at a cost of Rs.3.5 crore.
- YES Bank appointed Anurag Adlakha as CFO
Yes Bank announced the appointment of Anurag Adlakha as chief financial officer (CFO).
Raj Ahuja was serving as the CFO of the company till now.
He will continue to report to Chief Executive Officer Ravneet Gill.
Ahuja will now be in charge of strategy, planning and functions of the bank.
Adlakha was earlier senior group president and head of financial management & strategy.
- Aditya Puri: Top paid bank CEO
HDFC Bank MD Aditya Puri remained the highest- paid bank chief executive in India with a monthly basic salary of Rs 89 lakh in FY19.
Puri has led the bank the most valuable lender in the country since its inception 25 years ago.
Axis Bank CEO Amitabh Chaudhry, who took over the position in January, was second at a basic monthly salary of Rs 30 lakh.
- RBI launches regulatory sandbox for Fintech Companies
The Reserve Bank of India (RBI) issued the final framework for regulatory sandbox (RS) for the startups, banks and financial institutions. The Fintech companies can now set up their own RS for live testing of innovative products in areas like retail payments, digital KYC and wealth management.
The framework aims to enable innovations in the financial technology space. It will also foster responsible innovation in financial services, promote efficiency and bring benefit to consumers.
It will encourage innovations that are intended for use in the Indian market in areas where there is absence of governing regulations.
Fintech companies including startups, banks, financial institutions and any other company partnering with or providing support to financial services businesses.
- RBI asks banks not to count failed transactions, balance enquiry as free ATM transaction
Reserve Bank of India has asked banks not to count failed transactions at ATMs due to technical reasons as part of "free ATM transactions" permitted every month.
Use of ATMs for balance enquiry and fund transfers too should not be part of the free transactions facility given to a customer. Banks provide certain number of free transactions at ATMs to their customers and beyond that impose charges.
The RBI clarified that transactions which fail on account of technical reasons, non-availability of cash, and any other reason attributable to the bank should not be counted as valid ATM transactions for the customer. It said, consequently, no charges will be levied.
- Centre amended National Housing Bank Act
The government has activated two Budget proposals laid out to provide relief to the Non-Banking Finance Companies (NBFCs). The National Housing Bank Act has been amended to bring Housing Finance Companies (HFCs) under the RBI's ambit.
Also, banks can now classify the credit provided to NBFCs (for example, HFCs) for on-lending as priority sector lending.
- Scheme regarding partial credit guarantee
The Government has issued a scheme regarding partial credit guarantee. It would enable the Public Sector Banks (PSBs) to purchase pooled assets of financially sound NBFCs amounting to Rs. one lakh crore.
The objective is to address temporary asset liability mismatches of otherwise solvent NBFCs/HFCs without having to resort to distress sale of their assets for meeting their commitments.
- Narendra Modi reviews economy with Nirmala Sitharaman, officials
Prime Minister Narendra Modi held a review meeting with Finance Minister Nirmala Sitharaman and senior officials of the Finance Ministry.
The meeting was to review the state of the economy and also look into the ways forward for faster growth. The Finance Minister also informed the Prime Minister about the outcomes of the various review meetings she held last week.
Ms. Sitharaman had met representatives from the banking, FMCG, auto, real estate, and steel sectors last week. While the government itself has been silent on what it plans to do to reinvigorate the economy and help reverse the current slowdown, industry representatives have acknowledged that the Finance Minister had apprised herself of all the issues and was receptive to their suggestions.
The Goods and Services Tax (GST) Council will likely discuss the possibility of a rate reduction for certain categories of automobiles, as also the possibility of restoring the provision of input tax credits for premium under-construction properties in a bid to boost demand in the real estate sector, at its next meeting.
- India beat China in fintech deals
The number of fintech deals in Indian start-ups surpassed those in China for the previous quarter.
India saw 23 fintech deals during the 2nd quarter of 2019, compared to 15 investments in China, according to the Global Fintech report from CB Insights. However, China had marginally higher investments at $375 million during the period, compared to the $350 million in India.
- European markets fall sharply
The European markets fell sharply after China's announcement that the US intent to impose fresh tariffs violates a consensus between President Trump and Xi Jinping.
The FTSE 250, seen as a good gauge of the UK economy, fell 0. 9% after closing down 1.5% the previous day.
Weak data from Germany and grim signs in bond markets had also spooked investors. As a result, the three main US stock markets closed 3% lower overnight and European stocks fell across the board, while the Nikkei closed 1.2% lower.
Earlier this month, US President Donald Trump delayed imposing tariffs on some imports from China until 15th December in part to avoid hitting US shoppers this Christmas. The products included mobile phones, laptops, video game consoles, some toys, computer monitors, and certain footwear and clothing.
- India contributed 1 million to UN Fund
India has contributed 1 million US Dollars to the United Nations Special Purpose Trust Fund for the Resident Coordinator System.
Special Purpose Trust Fund (SPTF) is housed within the UN Secretariat. It is established to receive, consolidate, manage all contributions and financial transactions of the new Resident Coordinator system in a transparent and effective way.
- RBI updated fit & proper norms for PSB boards
Members of Parliament, state legislatures, or local bodies such as municipal corporations cannot be on the boards of public sector banks, as per RBI.
Also, partners of chartered accountancy firms engaged as statutory central auditors at any public sector bank cannot join the boards of these banks. Candidates for the post of board members should also not be a member of any rival bank.
- RBI imposed Rs.50 lakh fine on SBI
The Reserve Bank of India has imposed a penalty of Rs.50 lakh on SBI for non-compliance relating to reporting of frauds.
RBI has slapped penalties on eight commercial banks, including, Punjab National Bank and Bank of Baroda, for a host of violations.
RBI imposed a penalty of Rs.50 lakh on PNB for delay in reporting of fraud in the account of Kingfisher Airlines.
- RBI to announce 3rd bi-monthly monetary policy statement for FY 2019-20 today
The Reserve Bank of India (RBI) will announce its third bi-monthly monetary policy statement for FY 2019-20 in Mumbai .
The three-day meeting of the monetary policy committee (MPC) began on Monday amid expectations of yet another 25 basis points cut in lending rate to boost the slowing economy.
During the present calendar year, the Reserve Bank has slashed the repo rates by 0.75 per cent or 75 basis points including a 25 bps cut in three MPC meetings held in February, April and June 2019.
In its June policy review, while reducing the rate for the third time in a row, the RBI had signaled more easing as it looked to support an economy growing at the slowest pace since the BJP first came to power in 2014.
- Loans to get cheaper as RBI cuts repo rates
Loans are set to get cheaper as Reserve Bank of India cut repo rate by 35 basis points to 5.40 per cent on 07 August, 2019.
The move is said to give a fillip to the economy. This was the fourth consecutive time that the Monetary Policy Committee reduced the rates.
Consequently, the reverse repo rate under the liquidity adjustment facility stands revised to 5.15 per cent, and the marginal standing facility rate and the Bank Rate to 5.65 per cent.
Within hours of the steep reduction in the repo rates, country’s largest lender, State Bank of India announced a 15 basis points reduction in its lending rates.
The SBI, in a statement, said, the new rates of 8.25 per cent will be effective from 10th August, 2019. After this cut, SBI home loans have become cheaper by 35 bps since April.
The bank is offering a repo linked home loans from 1st July 2019.
- RBI announces NEFT facility will be available round-the-clock for customers
The Reserve Bank of India on 07 August, 2019 announced that the National Electronic Funds Transfer(NEFT) facility will be available round-the-clock for the customers.
Speaking at a press conference after the release of the third bi-monthly policy statement, RBI Governor Shaktikanta Das said the RBI will make available the NEFT system on a 24x7 basis from December 2019.
Currently, NEFT payment system operated by the Reserve Bank as a retail payment system is available for customers from 8 AM to 7 PM on all working days of the week except 2nd and 4th Saturdays of the month.
Addressing the media, the RBI Governor said that the RBI has also decided to create a central payments fraud information registry system to deal banking frauds adding that the details of the same will be shared later.
The RBI Governor further said in order to leverage the advantages of the Bharat Bill Payment System and harness its full potential, it has been decided to permit all categories of billers (except prepaid recharges) who provide for recurring bill payments to participate in BBPS on a voluntary basis.
The BBPS, an inter operable platform for repetitive bill payments, currently covers five segments that are direct-to-home, electricity, gas, telecom and water bills.
- PNB scam-CBI seeks polygraph, narco-analysis tests on accused Gokulnath Shetty
The CBI has sought permission to conduct polygraph and narco-analysis tests on Gokulnath Shetty, a key conspirator in the multi-crore Punjab National Bank fraud.
The former deputy manager at PNB's Brady House branch in Mumbai was arrested in March 2018.
In the application moved before special CBI judge J C Jagdale, the agency has said that it needs to know about monetary benefits received by the accused.
It adds that the assets and quid pro quo revealed so far during the investigation is minuscule as compared to the quantum of the fraud. The court will hear the plea on 14th August, 2019.
- RBI opened liquidity tap for stressed NBFCs
The RBI announced 2 key measures to help non- bank financial companies.
The first initiative deals with harmonisation of single counterparty exposure limit for banks’ exposure.
The second initiative deals with credit to the priority sector.
Detailed guidelines on the above measures will be issued by the end of August 2019.
- SGX and NSE to operate jointly in GIFT City
SEBI approved Singapore Stock Exchange and National Stock Exchange of India Ltd to operate jointly in Gujarat International Finance Tec-City, Gandhinagar.
The two entities will create a new platform for trading called NSE International Financial Service Centre (IFSC)-SGX Connect.
NSE-IFSC will allow trading in Nifty index derivatives and single-stock derivatives of Nifty’s 50 constituent.
- DBS Bank India ties up with Social Alpha
DBS Bank India has tied up with Social Alpha to mentor enterprises that focus on sectors such as inclusion, healthcare, and environment.
DBS Bank will also give an annual programme grant of Rs.1 crore.
DBS Bank will mentor and support three ventures over the next 18 months.
This includes Even Cargo, Trust Circle, and Incredible Devices.
- Odisha small savings incentive scheme launched
The Odisha government launched a small savings scheme for 2019.
It will stop people from transacting with 'suspicious' non-banking private financial institutions.
Under this scheme, any eligible person who deposits a minimum amount of Rs 2,000 in any small savings scheme during 2019 in any post office or bank in the state, can obtain a free web based coupon from the office of collectors.
- RBI relaxes External Commercial Borrowing norms for corporates, non-banking lenders
In more liquidity easing measures, the Reserve Bank has liberalised the end-use stipulations for the External Commercial Borrowings both for corporates as well as liquidity starved non-banking lenders.
The central bank in a statement liberalisation will be applicable to ECBs taken for working capital, general corporate purpose loans or repayment of rupee loans.
Corporate borrowers will be able to avail of ECBs to repay rupee loans taken for Capital expenditures if they are into manufacturing or infrastructure building and classified as Special Mention Account, SMA-2 or Non-Performing Asset, under any one-time settlement arrangement with lenders.
The RBI also issued a revised circular for bankers capturing the changes.
- Government did not try out GST system before rollout
The first ever audit of the Goods and Services Tax, has said the government had failed to try out the system before its rollout, leading to inadequate compliance mechanisms, and lower tax revenues. The report was tabled in Parliament on 30 July, 2019.
The keystone of the tax system, the invoice matching system, had not yet been put in place even two years after the GST rollout. It added that compliance in terms of the number of returns filed had been falling month after month, and that the government had not been following the rules set out regarding the transfer of revenue to the States.
Even after two years of rollout of GST, system validated Input Tax Credit through invoice matching’ is not in place and non-intrusive e-tax system still remains elusive, the report, tabled in Parliament.
The complexity of the return mechanism and the technical glitches resulted in rollback of invoice-matching, rendering the system prone to ITC [Input Tax Credit] frauds.
Without invoice matching and auto generation of refunds, assessments, etc.
on the whole, the envisaged GST tax compliance system is non-functional.”
- China bets big on 5G, to spend $150 billion in next 6 years
China is planning to spend $150 billion on 5G wireless technology in the next six years — a move to jump-start automated manufacturing and enable Beijing to emerge as a world leader in Artificial Intelligence (AI).
China’s heavy investment in 5G has huge implications as it could sharpen Beijing’s competitive edge, vis-à-vis the U.S., the world’s largest economy.
China regards next-generation 5G networks — which offer faster data rates, reduced latency, energy savings, cost reductions, higher system capacity and massive device connectivity — as a chance to get out in front for the first time.
5G networks would be at the heart of a Wi-Fi linked “connected” world.
Every asset can be connected through the internet.
Every device, even your clock on the wall, could become internet connected.
- Government to soon notify constitution of National Traders Welfare Board to help small traders
Commerce and industry ministry notifies the constitution of a National Traders Welfare Board will identify ways to improve access to funds for this unorganized sector and suggest measures to simplify acts and rules applicable to traders.
The board will also make recommendations to reduce the compliance burden of traders as well as to ensure social security benefits such as insurance, pension, and healthcare for traders and their employees.
- India became fifth largest investor in Africa
Trade and investment ties between India and Africa are growing.
India has become the fifth largest investor in Africa with cumulative investment at over 54 billion US dollars.
African continental Free Trade Area Agreement launched this month will make Africa the largest free trade area in the world.
India views this development as yet another opportunity to boost economic ties with Africa.
After South Asia, the African Continent is the largest recipient of Indian overseas assistance.
President has promised India's support to Gambia in areas of skills development. Later President participated in a community reception at Banjul.
The event was organised by the Indian community and Friends of India.
India's priority for the Africa region. India is opening 18 new missions, of which seven will be in west Africa.
During his two-day visit to Gambia, President had extensive talks with his Gambian counterpart Adama Barrow.
During the delegation-level talks, the two leaders reviewed the entire spectrum of bilateral relations and regional and global issues of mutual interest.
- Postal department decides to convert India Post Payments Bank into Small Finance Bank (SFB)
The Postal Department said it has decided to convert the India Post Payments Bank (IPPB) into a small finance bank (SFB), enabling it to offer small loans to customers.
Besides, the department also looks to open one crore accounts for IPPB in 100 days.
A statement of the Postal Department said that the decisions were taken at the annual Heads of Circles Conference held at Srinagar.
- Task force on direct tax code to submit report by August 16
The Government has allowed the task force, formed to draft new direct tax law, to submit its report by August 16.
Earlier, the force had to submit its report by July 31.
The extension has been given as new members of the Task Force requested for more time to provide further inputs.
The Task Force was constituted by the Government in November, 2017 to review the existing Income Tax Act, 1961 and to draft a new direct tax law in consonance with economic needs of the country.
- US announces fresh 10 per cent tariff on Chinese imports
President Donald Trump has announced that the US will impose an additional 10 per cent tariff on 300 billion US Dollars in Chinese imports.
The US President accused China of not being serious in arriving at the trade deal and failing to keep its promise to buy more American agricultural products.
The new tariff, in addition to the 25 per cent on goods worth 250 billion US dollars that was previously in place, would come into effect from 1st of next month.
The announcement came a day after US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin returned from Shanghai after two days of the latest round of trade negotiations with China.
Since the commencement of trade war last year China and US have so far hit each other with punitive tariffs covering more than USD 360 billion in two-way trade.
The US President's new tariffs on China sent a shock wave through global markets, pushing Wall Street stocks into the red, sharpening an oil-price rout and pressuring US Treasury yields.
Trump was "not concerned" by the negative reaction among investors, saying he had anticipated it.
- Government approves proposal given by RBI on draft modalities of guarantee to operationalize Budget announcement
The government has approved a proposal given by the Reserve Bank of India on draft modalities of the guarantee to operationalize the Budget announcement.
This is in regard to one-time partial credit to the Public Sector Banks for purchase of high-rated assets of financially sound Non-banking financial companies.
Disclosing this Finance Ministry officials said in New Delhi on 02 August, 2019, after the approval from the Government, the modalities would be set in motion by RBI.
The Department of Financial Services would put in place an oversight mechanism for this scheme.
- India at 7th Spot in GDP Rankings of 2018
India has slipped to the 7th spot in the global GDP rankings of 2018.
The UK and France have raced ahead and taken the fifth and the sixth spots respectively.
As per the data compiled by the World Bank, in 2017, India was the fifth-largest economy while France stood at number seven.
China was the second-largest economy with $13.6 trillion, while Japan stood third with $5 trillion.
- RBI allows Bank of China to offer regular banking services in INDIA
The Reserve Bank of India (RBI) allowed Bank of China to offer regular banking services in the country. Commercial banks, like SBI, HDFC Bank, Punjab National Bank and ICICI Bank, are in the Second Schedule.
Banks falling under this schedule have to adhere to the norms of the RBI.The Bank of China Limited included in the Second Schedule to the Reserve Bank of India Act, 1934.
The RBI told Jana Small Finance Bank Limited included in the Second Schedule.The Royal Bank of Scotland plc' changed to 'NatWest Markets Plc' in the Second Schedule.National Australia Bank' ceased to be a banking company within the meaning of the Banking Regulation Act excluded from the Second Schedule.
Bank of China is one of the four biggest state-owned commercial banks in China. Bank of China is legally separate from its subsidiary Bank of China.
- German bank KfW explores funding for MMRDA infra projects
A delegation from Germany’s state-owned development bank KFW met the Mumbai Metropolitan Commissioner on 03 August, 2019 to discuss about the various infrastructure projects being undertaken by the Authority.
A statement issued by Mumbai Metropolitan Region Development Authority - MMRDA informed that the delegation was briefed about the various Metro and the multi-modal integration projects. The delegation also visited the sites that are presently under development and reacted positively to the development plans as proposed by MMRDA.
In the statement, Metropolitan Commissioner, RA Rajeev has said that association with Germany's third largest bank will be a big boon to MMRDA's flagship project, the Mumbai Metro. He added that MMRDA has emphasized on its need to protect the environment while creating infrastructure. MMRDA has planned 12 metro lines for Mumbai and its suburbs with a total length of 276 kilometers.
- RBI imposed fine on seven Public Sector Banks
The Reserve Bank has imposed a collective penalty of Rs.11 crore on seven public sector banks for violating norms on current account opening.
Allahabad Bank and Bank of Maharashtra have been imposed a fine of 2 crore each, Bank of Baroda, Bank of India, Indian Overseas Bank and United Bank of India have been fined 1.5 crore each, while Oriental Bank of Commerce with a penalty of Rs.1 crore.
Published date : 13 Aug 2019 03:46PM
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