worldjute.com logo    tepcon banner

Home | About Jute | Jute Prices | Organisation | Directory | Technology | Statistics | Diversification | Jute Policy |Jute News | FAQ

  Home Financial and Banking News 2013 (India)
                                                                      Financial and Banking News 2011
                                                                     Financial and Banking News 2010
                                                                     Financial and Banking News 2009
                                                                         Financial and Banking News 2012    

 

   RBI cuts repo rate by 0.25%, but warns room for further easing limited
   Mumbai,March 20, 2013: The Reserve Bank of India (RBI) cut its key repo rate -- the rate at which the central bank lends short- term money to banks -- by 0.25 per  cent to 7.5 per cent on Tuesday. The central bank left the cash reserve ratio (CRR) -- the proportion of deposits that banks have to mandatorily park with the RBI -- at 4 per cent, the lowest since December 1974.
  However, the RBI has cautioned that even as the policy stance emphasises addressing the growth risks, the headroom for further monetary easing re mains quite limited. The caution reinforced market expectations that the central bank will only lower them by a further 25 or 50 bps in the next fiscal year starting April 1, 2013.
  Montek Singh Ahluwalia, Deputy Chairman at the Planning Commission, said, "_We are looking at it (the 25 bps rate cut) with unhappiness. We fee l, the signal should have been stronger... Many people would say that the signal should have been more robust than 25 basis points."
  This is the second policy rate cut by the RBI this calendar year to help revive a faltering economy, taking comfort from moderating core price pressures and the government's commitment to trim the fiscal deficit.The RBI had reduced the repo rate by 25 basis points to 7.75 per cent in January after holding it steady for nine months. The central bank expressed growth concerns, saying headline inflation is likely to remain range-bound at the current levels over the next fiscal year.
  "Notwithstanding the moderation in non-food manufactured products inflation, the headline inflation is expected to be range-bound around current levels over 2013-14," the central bank said in a statement issued on Tuesday.Source: NDTV


   RBI probing charges of money laundering, ICICI, HDFC & Axis Bank under lens
  
MUMBAI, March 15, 2013: The Reserve Bank of India has begun a probe into allegations that staff at Axis Bank encourages customers to evade income-tax payments, siphon off funds overseas, and convert politicians' bribe funds to legally acceptable wealth. The central bank's probe follows a sting operation by Cobrapost.com, an online news provider, which claimed that staff at these banks was helping customers do deals that violate income-tax, enforcement and banking laws, said three people familiar with the development. "We are in touch with banks," Deputy Governor Urjit Patel said at the sidelines of a conference. "No show-cause notice has been sent as yet," he said. Bankers' advice to avoid tax ranges from declaring oneself as a farmer to opening multiple accounts with small amounts that could escape the taxman's radar. Other tips include use of other customers' accounts for a fee, and a shell company to account for overseas travel and other expenses.
  "RBI has asked for preliminary reports and we have sent them," said an executive from one of the banks who did not want to be identified. "Once our enquiries are over, we will send our findings. There are enough checks and balances."  No transaction seems to have taken place. Some silly conversations in bravado," said the executive.
  Aniruddha Bahal, editor, Cobrapost.com, said the three top private banks have been helping customers launder money for years and their branches across the nation offer escape route to those with ill-gotten wealth. Bahal claimed these activities and advice provided by bankers have been recorded for months, running into hundreds of hours, in a sting operation by its Associate Editor Syed Masroor Hasan , posing as Rajeev Sharma. "The investigation finds the banks and their managements systematically and deliberately violating several provisions of the Income-Tax Act, FEMA , RBI regulations, KYC norms, Banking Act and Prevention of Money laundering Act with utter disregard to consequences, driven by their desire to boost cheap deposits and thereby increasing their profits," Cobrapost.com said in a statement.

  RBI cuts repo rate: Banks to pass on benefit to customers; lower lending rates

  MUMBAI, January 29, 2013: Banks will cut lending rates after the Reserve Bank of India reduced its key interest rate by 25 basis points on Tuesday, the head of industry body Indian Banks' Association, KR Kamath, said in a post-policy conference. Borrowers could as a result see better days ahead as lending rates will come down. State Bank of India Chairman Pratip Chaudhuri also said banks are likely to cut lending rates.  Commenting on RBI's action, SBI Managing Director A Krishna Kumar said "a rate cut is likely. Rates on advances and deposits could come down simultaneously. The RBI's action is positive". 
  Keki Mistry of HDFC said that CRR cut, which has come as a pleasant surprise will benefit banks. "Repo and CRR rate cut will help lenders lower rates," he told ET Now. Indian Overseas Bank executive director A K Bansal said the RBI's action will result in moderation of interest rates in the coming days. Both lending and deposit rates are expected to see a downward revision which will improve growth prospects, he said.
  According to Canara Bank executive director A K Gupta, the bank would consider interest rate cut in the light of RBI policy action.
If the interest rate on a 20 year housing loan of Rs 50 lakh home lowers to 11% from 11.25%, it will translate into a saving of Rs 853 per month in the EMI. 
 RBI lowered its key policy rate for the first time in nine months on Tuesday, but struck a cautious note on further easing as it waits to see how the government's upcoming budget aims to bring a bloated fiscal deficit under control. With more rate cuts by the RBI on the horizon this year, new borrowers stand to gain as banks pass on the benefit to them. If they also cut their benchmark base rates (to which home loan rates are linked), it will benefit the existing borrowers as well. Source: The Economic Times  

 

   

 

     

 

 

 

     

[ About Jute ] [ Jute prices ] [ Jute Organisation ] [ Directory ] [ Jute Technology][ Diversification ] [ Statistics ] [Jute Policy ] [ FAQ ] [ Railways ] [ Airways ] [ Weather ] [ Contact Us ] [Advertise With Us] [ About Us ] [ Disclaimer ]

Site copyright 2002, Worldjute.com All Rights Reserved.