States can borrow directly from foreign agencies for infra projects

Source: Business Standard, Apr 20, 2017

New Delhi: The Union Cabinet has approved new rules to allow financially sound state government entities to borrow directly from other countries which give Official Development Assistance for major infrastructure projects.

In such cases, the state government concerned will give a guarantee and the Centre will provide a counter-guarantee. Read the rest of this entry »

India signs $175-million loan pact with World Bank to improve water management

Source: The Economic Times, Apr 18, 2017

NEW DELHI: India today signed a $175 million loan pact with the World Bank for National Hydrology Project that aims to improve management of water resources.

The project will strengthen the capacity of institutions to assess the water situation in their regions and reduce their vulnerability to recurring flood and droughts, saving hundreds of lives and livelihoods, the multilateral agency said in a statement.

Noting that rainfall in India is highly seasonal with half the precipitation falling in just 15 days and over 90 per cent of river flowing for just four months, the World Bank said India continues to be water-stressed and is faced with the challenge of managing its water needs amidst recurring floods and droughts. Read the rest of this entry »

Government planning an easy credit scheme for rural households

Source: The Economic Times, Apr 19, 2017

NEW DELHI: The government is redrawing a micro-credit programme to help pull rural households out of poverty. The proposal is to lend up to Rs 1 lakh per family in the next three to five years, with the loans coming collateral-free and with subsidised interest rates.

“We have simplified the process for accessing loans… We are getting into the details of livelihood each house can undertake so that the money can be lent accordingly,” said rural development secretary Amarjeet Sinha. Read the rest of this entry »

Government may soon allow 100% FDI in cash, ATM management companies

Source: The Economic Times, Apr 16, 2017

NEW DELHI: Cash and ATM management companies will soon be allowed to attract 100 per cent foreign direct investment as they are not required to comply with the Private Security Agencies (Regulation) Act (PSARA).

A clarification to this effect is likely to be issued by the home ministry shortly.

The clarification will be against the backdrop of the confusion among firms in cash and ATM management relating to compliance with the Act, under which they can receive FDI only up to 49 per cent. Read the rest of this entry »

RBI monetary policy: Five things to watch out for

Source: LiveMint.com, Apr 06, 2017

Mumbai: By virtue of being the first monetary policy of this financial year, the upcoming announcement of the Reserve Bank of India (RBI) will be a signal of the way the central bank views various macroeconomic parameters and the pace at which it expects the gross domestic product (GDP) growth to come back.

While a majority of the economists surveyed by Mint expect the RBI to hold the repo rate at 6.25% and continue with its neutral stance, they also expect more announcements around excess liquidity.

Read the rest of this entry »

RBI clears proposal to introduce Rs 200 notes

download (3).jpgSource: LiveMint.com, Apr 04, 2017

The board of the Reserve Bank of India (RBI) has cleared a proposal to introduce banknotes of Rs200 denomination, two people aware of the development said.The decision was taken at the RBI board meeting in March, these people said. They didn’t want to be identified as they aren’t authorized to speak to the media.

The process of printing the new Rs200 notes is likely to begin after June, once the government officially approves this new denomination, said one of the two people cited earlier.

Read the rest of this entry »

RBI increases FPI limits in govt bonds by Rs170 billion

Source: IBEF.org, Apr 03, 2017

New Delhi: The Reserve Bank of India (RBI) has raised the limit on investment in government bonds by foreign portfolio investors (FPI) by an aggregate Rs 170 billion (US$ 2.62 billion) during the April-June 2017 period. The investment limit in central government securities have been increased by Rs 110 billion (US$ 1.7 billion), which takes the total increase in the investment caps in g-secs by FPIs up to Rs 2,310 billion (US$ 35.63 billion) from Rs 2,200 billion (US$ 35.32 billion) earlier. The limit for State development loans have been raised by Rs 60 billion (US$ 925 million), thereby increasing the total limit to Rs 270 billion (US$ 4.16 billion) from the earlier Rs 210 billion (US$ 3.24 billion). The cap on general category has been increased to Rs 1,565 billion (US$ 24.14 billion) from Rs 1,520 billion (US$ 23.45 billion), whereas the limit for long term investors have been raised to Rs 745 billion (US$ 11.49 billion) from Rs 680 billion (US$ 10.49 billion) earlier.