Source: The Economic Times, May 09, 2012
Reserve Bank of India eased restrictions on the usage of foreign currency deposits on Wednesday, just days after its move to relax the interest rate ceiling on such deposits.
The Reserve Bank of India has allowed banks to use funds from foreign currency non-resident deposits as collateral against lending to related local residents.
Source: Business standard, May 10, 2012
Mumbai: The rupee continued its downward slide due to the euro zone crisis, closing at an all-time low of 53.83 a dollar today. Though the Reserve Bank of India (RBI) intervened by selling dollars, it was unable to arrest the fall.
The political upheaval in Greece continued to hurt the sentiment across the world, as political parties haggled over chances of renegotiating the terms of a bailout. The weekend elections in France and Greece had seen voters reject harsh austerity measures. Banks on today sold dollars on behalf of the RBI when the rupee hit the 53.80 levels, which helped the currency recover to 53.70. But, last-minute demand from importers hurt the currency further. The previous closing low was recorded at 53.72 on December 14, 2011. The currency has depreciated two per cent since the start of this month and 5.8 per cent since April 1.
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Source: The Economic Times, May 08, 2012
MUMBAI: In an effort to encourage foreign banks to incorporate in the country, finance minister Pranab Mukherjee on Monday proposed to limit tax liability when they convert from branches into subsidiaries.
The Reserve Bank of India is in the process of formulating a scheme for local incorporation of Indian branches of foreign banks to ring fence local depositors from external shocks.
Source: The Economic Times, May 08, 2012
MUMBAI: The Reserve Bank of India laid out norms for safer securitisation of loans that can theoretically help banks lend more without having to resort to raising capital often. However, it remains to be seen whether the market will receive it well.
The central bank prescribed a minimum lock-in period for loans that could be bundled and sold off to investors, and minimum retention criteria, i.e., the portion of the loan that will still be on the books of banks to ensure that the loan originators have their skin in the game.
Source: Financial Express, May 08, 2012
New Delhi: Chassis for commercial vehicle, ball point pen ink and goods required for solar power projects would become cheaper under duty concessions announced by Finance Minister Pranab Mukherjee in the Lok Sabha after which Finance Bill, 2012 was passed.
Source: The Economic Times, May 03, 2012
MUMBAI: The Reserve Bsnk of India has laid out a six-year road map to make Indian banks safer and avoid recurrence of the 2008 crisis, but it will need an estimated Rs 1.5 lakh crore in capital at a time it is scarce.
The central bank has raised the equity component in overall capital and restricted dividend or bonus payouts when capital ratios fall close to mandated levels. It has also addressed banks’ leverage ratios, which will shrink off-balance sheet businesses and investments in subsidiaries, to reduce risk.
Source: The Economic Times, Apr 25, 2012
NEW DELHI: Seven World Bank-sponsored projects, worth about Rs 22,426 crore, are being implemented across the country to improve delivery in centrally-funded schemes and meet other objectives, the government said today.
“The projects include National Rural Livelihoods Project (USD 982 million; about Rs 5,106 crore), PMGSY Rural Roads Project (USD 1,517 million; approx Rs 7,826 crore), Vocational Training India (USD 287 million; about Rs 1,492 crore) and Technical Engineering Education Quality Improvement II (USD 286 million; approx Rs 1,487 crore),” Minister of State for Personnel and Public Grievances V Narayanasamy told Lok Sabha in a written reply.
Source: The Economic Times, Apr 23, 2012
NEW DELHI/MUMBAI: The finance ministry has asked the Reserve Bank to open a $10-billion window for individual foreign investors in corporate debt, hoping high yields on Indian paper will attract greater flows and prevent large government borrowing from pushing up interest rates.
This year’s budget has proposed to allow qualified foreign investors, including individuals, trusts and pension funds, to invest in bonds of companies. At present, FIIs can invest up to $15 billion in government bonds and $20 billion in corporate bonds.
Source: The Hindu Business Line, Apr 03, 2012
Mumbai: To provide operational flexibility to Indian entities making overseas direct investments, the Reserve Bank of India has liberalised regulations pertaining to foreign currency accounts (FCA).
Indian entities can open, hold and maintain FCAs abroad to smoothen the process of making overseas direct investments, subject to certain conditions, the RBI said in a notification. ]
