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Specially compiled for Banker

! S"mi# Bose is ne$ Finance Secre#ary%
Bose, has been designated as the new Fin
Secretary. He will continue to hold the pos
Revenue Secretary.
&! 'ars( B(an$ala is ne$ Na)ard C(airma
Centre has appointed Harsh Kumar Bhanwa
Chairman of the ational Ban! for "gricul
and Rural #evelopment $abard%. &rior to
appointment, Bhanwala was an '(ecu
#irector at )ndia )nfrastructure Finance Comp
*td $))FC*%, a state+owned infrastructure len
Bhanwala, succeeds &ra!ash Ba!shi, w
as abard Chairman in September.
*! C!+!R! Ra,endran appoin#ed CM- of An
Bank% &rior to this elevation, Ra,endran
e(ecutive director at Ban! of -aharashtra.
.! Ar"n /i$ari ne$ CM- of 0nion Bank
.nion /overnment has appointed "run 0iwa
Chairman and -anaging #irector of .nion B
of )ndia. &rior to this elevation, 0iwari wa
e(ecutive director at "llahabad Ban!.
1! C(airman IBA% K R Kamath is the Chairma
)ndian Ban!s "ssociation.
2! 3old #raders op# for ,e$ellery impor
#ackle c"r)s on )"llion%
4! 0hough /old bullion attracts import duty o
per cent, and duty on gold ,ewellery is 13
cent, yet conditions attached to bullion imp
li!e 452672 scheme8, under which merchants w
to re+e(port 72 per cent of each gold consignm
before ordering fresh shipments ma!es impo
bullion difficult.
5! Minis#ry clarifies on role of s(ares (e
fid"ciary capaci#y% "ccording to Corpo
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Bankersadda )y Mr! A!6! 3"p#a7 E8 9 C(ief Mana:er7 P

;AN &<.
Secre#ary% Sumit
ed as the new Finance
ue to hold the post of
d C(airman% 0he
rsh Kumar Bhanwala as
al Ban! for "griculture
$abard%. &rior to this
a was an '(ecutive
ucture Finance Company
ed infrastructure lender.
!ash Ba!shi, who retired

CM- of And(ra
evation, Ra,endran was
! of -aharashtra.
nion Bank% 0he
ppointed "run 0iwari as
#irector of .nion Ban!
levation, 0iwari was an

math is the Chairman of
lery impor#s #o
racts import duty of 12
gold ,ewellery is 13 per
ched to bullion imports
r which merchants were
of each gold consignment
ipments ma!es import of
s(ares (eld in
ccording to Corporate
"ffairs -inistry, shares held b
fiduciary capacity should not b
purpose of determining h
relationship. Further, the powe
can e(ercise in another compa
capacity $only in the capacity as
e(cluded for determining h
=! Bank of India plans #o :
)ankin:% Ban! of )ndia is plan
merchant ban!ing space via
*td. &ublic sector ban!s which
ban!ing subsidiary include Sta
)#B) Ban! and Ban! of Baroda.
<! Pradeep 6"mar is ne$ M-
Kumar has been appointed by t
-anaging #irector of State Ban!
his elevation, Kumar was the
#irector and /roup '(ecutive
Ban!ing /roup in )ndia8s large
! Ca)ine# nod for cancer ins#i
.nion Cabinet, has approved th
up a ational Cancer )nstitute
7,2:3 crore. 0he institute, whic
at the ;ha,,ar campus of the "ll
-edical Sciences in Haryana
completed within <3 months.
&! Ins"rance )rokin:% )n ma,or r
companies without bancassura
finance ministry has as!ed all p
to act as insurance bro!ers to
penetration in the country. Cu
penetration $the ratio of the p
insurance premia to gross dom
about five per cent. 0he min
ban!s to leverage their bra
insurance penetration. 0he c
model should be done away w
to train and orient its staff to
provisions. Currently, bancassu
corporate agency model, throu
can only tie up with one life, on

Mana:er7 PNB
istry, shares held by a company in a
apacity should not be counted for the
of determining holding+subsidiary
p. Further, the powers that a company
e in another company in a fiduciary
nly in the capacity as a trustee% will be
for determining holding+subsidiary
lans #o :e# in#o merc(an#
an! of )ndia is planning to enter the
ban!ing space via B9) Shareholding
sector ban!s which have a merchant
bsidiary include State Ban! of )ndia,
and Ban! of Baroda.
is ne$ M- of SBI% &. &radeep
been appointed by the /overnment as
irector of State Ban! of )ndia. &rior to
on, Kumar was the #eputy -anaging
d /roup '(ecutive of the Corporate
oup in )ndia8s largest ban!.
ancer ins#i#"#e a# ;(a,,ar% 0he
net, has approved the proposal to set
nal Cancer )nstitute at a cost of Rs
. 0he institute, which would be set up
ar campus of the "ll )ndia )nstitute of
iences in Haryana, is li!ely to be
within <3 months.
)n ma,or relief to insurance
without bancassurance partners, the
istry has as!ed all public sector ban!s
nsurance bro!ers to boost insurance
in the country. Currently, insurance
$the ratio of the percentage of total
premia to gross domestic product% is
per cent. 0he ministry has advised
leverage their branch networ! for
enetration. 0he corporate agency
ld be done away with and each ban!
d orient its staff to conform to new
Currently, bancassurance follows the
agency model, through which a ban!
up with one life, one non+life and one

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health insurer to sell their insurance prod
0herefore, non+ban! promoted insur
companies and late entrants to the insur
sector do not have any ban! partner to sell t
policies. "s an insurance bro!er, a ban! is li
to consumers, in terms of an insurance po
unli!e a corporate agent. 0he liability is h
especially as the ban! will sell product
multiple insurers. 0he customers will now
more choice while buying insurance from ba
0he Finance -inistry has set ;anuary 13 as
deadline for ban!s to start selling product
more than one insurance company.
*! 5!5 m families li>e in "r)an sl"ms
survey conducted by ational Sample Su
9ffice $SS9%, about 5.5 million househol
)ndia live in urban slums. " total of ::,312 sl
are present in urban )ndia, of which <1 per
are notified as slums by the conce
municipalities, corporations, local bodies
development authorities which accommo
about =: per cent of all slum
households. -aharashtra, accounts for 7:
cent of all slums in the country. >ith 1:.3
cent of slums, "ndhra &radesh comes sec
followed by >est Bengal $17 per cent%.
.! O>er 5<? of r"ral (omes (a>e po$e
2<? (a>e no #oile#s% "s per /overnment d
52 per cent of rural households and ?@.? per
urban households had electricity for dom
use, and 55.3 per cent households in rural )
and ?3.: per cent in urban areas had impro
source of drin!ing water. 0he percentag
households who get drin!ing water facil
within premises was <=.1 per cent in rural )
and @=.5 per cent in urban )ndia while about
per cent of rural households and 1=.@ per ce
urban households did not have any bathr
facility. 3?.< per cent and 5.5 per cent hous
in rural and urban )ndia, respectively, had
latrine facilities.
1! 3o># dra$s "p lis# of &* co"n#ries for c"r
s$ap arran:emen#% 0he Commerce -inistry
finalised a list of 7: countries with which )
can trade in local currencies to save pr
foreign e(change and strengthen the rupee.
list includes oil e(porting nations such as "n
"lgeria, igeria, 9man, )ran, )raA, BeneC
Datar, Eemen and Saudi "rabia. 9ther coun
on the list include Russia, ;apan, Singap
"ustralia, )ndonesia, South Korea, -ala
-e(ico, South "frica and 0hailand. " curr
swap arrangement for trade basically invo
trading in local currencies where countries
for e(ports and imports with domestic curren
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heir insurance products.
promoted insurance
trants to the insurance
an! partner to sell their
bro!er, a ban! is liable
of an insurance policy,
nt. 0he liability is high,
will sell products of
ustomers will now have
g insurance from ban!s.
t ;anuary 13 as the
tart selling products of
sl"ms6 "s per a
ational Sample Survey
.5 million household in
. " total of ::,312 slums
ia, of which <1 per cent
s by the concerned
tions, local bodies or
s which accommodate
of all slum+dwelling
a, accounts for 7: per
country. >ith 1:.3 per
&radesh comes second,
$17 per cent%.
a>e po$er7 )"#
s per /overnment data,
eholds and ?@.? per cent
electricity for domestic
ouseholds in rural )ndia
ban areas had improved
ter. 0he percentage of
g water facilities
.1 per cent in rural )ndia
n )ndia while about =7.:
olds and 1=.@ per cent of
not have any bathroom
5.5 per cent households
ia, respectively, had no
ries for c"rrency
Commerce -inistry has
ntries with which )ndia
encies to save precious
rengthen the rupee. 0he
g nations such as "ngola,
, )ran, )raA, BeneCuela,
9ther countries
ussia, ;apan, Singapore,
outh Korea, -alaysia,
d 0hailand. " currency
trade basically involves
ies where countries pay
with domestic currencies
at pre+determined e(change
trading in .S dollars.
2! Women :ainin: :ro"nd in
incl"sion% 0he share of fema
increased to 75 per cent of th
individual deposit accounts in
per cent in the previous year. 0h
individual deposit accounts in
at @@.:7 crore in 7217 against
previous year. )n terms of amou
in the total individual deposits
7= per cent in 7217 from 77 pe
7217, individual deposits agg
la!h crore against Rs 75.23 l
previous year. 0he share of fem
in the total number of loan acco
to 13.57 per cent in 7217. >om
total outstanding loans $individ
15 per cent in 7217 against 13
0he total outstanding loans
individuals aggregated Rs 11.
7217 against Rs ?.=: la!h crore
4! Ins"rance policy $ill cos#
0he /overnment has widened
to cover the policy premiums
rates will be 17.:= per cen
)nsurance &olices $only on
mortality and administration%,
traditional products as most of
into savings, and 17.:= per cent
5! SEBI proposes frame$ork f
aid the financing and refinanc
infrastructure pro,ects in )n
mar!et regulator S'B) has prop
for the introduction of infrastru
trusts $)nv)0%. "ccording to th
&lan, )ndia reAuires an investm
crore in infrastructure between
S'B) suggested that the trust
floated using the mutual fu
through a separate structural fr
=! Cons"mer infla#ion linked
)nde(ed ational Savings Secur
see! to protect savings from
offering returns over and abov
retail level. 9nly retail investo
bonds. 0he minimum investmen
0he interest rate is the sum
inflation based on the combine
ermined e(change rates instead of
:ro"nd in )anks@ financial
0he share of female depositors has
o 75 per cent of the total number of
deposit accounts in 7217 against 7<
the previous year. 0he total number of
deposit accounts in the country stood
ore in 7217 against @7.32 crore in the
ar. )n terms of amount, women8s share
l individual deposits has improved to
t in 7217 from 77 per cent in 7211. )n
vidual deposits aggregated Rs :2.@5
against Rs 75.23 la!h crore in the
ear. 0he share of female loan accounts
number of loan accounts has gone up
r cent in 7217. >omen8s share in the
g loans $individuals% has risen to
t in 7217 against 13 per cent in 7211.
outstanding loans in the case of
aggregated Rs 11.=? la!h crore in
st Rs ?.=: la!h crore in 7211.
$ill cos# more from ;an 6
ment has widened its service ta( net
e policy premiums paid. Service ta(
be 17.:= per cent on .nit+*in!ed
&olices $only on charges, such as
nd administration%, :.2? per cent on
s most of the premium goes
s, and 17.:= per cent on term plans.
ame$ork for infra #r"s#s% 0o
ancing and refinancing of long+term
ure pro,ects in )ndia, the capital
ulator S'B) has proposed a framewor!
oduction of infrastructure investment
)0%. "ccording to the 17th Five Eear
reAuires an investment of Rs =3 la!h
frastructure between 7217 and 721@.
ested that the trust could either be
g the mutual fund structure or
eparate structural framewor!.

ion linked )onds% )nflation
tional Savings Securities + Cumulative,
rotect savings from price rise, by
turns over and above inflation at the
. 9nly retail investors can buy these
minimum investment siCe is Rs 3,222.
st rate is the sum of the prevailing
sed on the combined consumer price

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inde( $C&)% and a fi(ed rate of 1.3 per
annually. 0he inflation rate will be rec!oned
a lag of three months, with the September
used in #ecember, and so on. )nterest on
bonds will not be paid out but compounded
half+yearly basis.
&<! SME >arsi#y #o come "p in 'ydera)
national Small and -edium 'nterprises $S
university will be soon set up at Hydera
"nother technical training institute was
being set up in Bisa!hapatnam at an investm
of over Rs 132 crore.
&! Sid(ar#( Birla is ne$ FICCI Presiden#%
Birla was elected as &resident, F)CC), after
industry chamber8s 5=
"nnual /eneral -ee
&&! Mis"se of )ank :"aran#ees7 le##ers of cre
#(e rise% #ue to rising incidents of frauds, b
are not in favour of issuing non+fund b
facilities, such as ban! guarantees and
credit, to non+customers.
&*! CCEA "ps :as price for RIL s"),ec# #o
:"aran#ee% 0he Cabinet Committee on 'cono
"ffairs $CC'"% approved a &etroleum and at
/as -inistry proposal to allow R)* to sell K/
bloc! gas at the new price effective "pril 721
also decided against putting any capFfloor p
on the gas rates and to maintain the gas p
formula approved earlier. R)* can now get
benefit of the revised gas price in return f
ban! guarantee for the unmet su
commitment from its K/+#= bloc!.
&.! Ca)ine# appro>es Rs 272<<Acr in#eres
loans for s":ar mills% 0he Cabinet Committe
'conomic "ffairs has approved Rs =,=22 c
interest free loans to sugar mills to ease t
cane payment burden. 0he CC'" also appro
the e(ports of sugar without any Auantita
&1! Lok Sa)(a passes landmark Lokpal Bil
&arliament on 15
#ec passed the *o!pal
paving the way for the setting up of
corruption watchdogs at the Centre and S
level. 0he Bill was passed by *o! Sabha on
#ec and by Ra,ya Sabha on 1@
#ec. Highligh
the Bill include G $a% 0he *o!pal will consist
chairperson and a ma(imum of eight member
whom half will be ,udicial membersH $b% Fifty
cent of the *o!pal members shall be SCFS0F9
minorities and womenH $c% 0he chairpers
members will be chosen by a selection comm
consisting of the &rime -inister, Spea!er of
*o! Sabha, *eader of the 9pposition in the
Sabha, Chief ;ustice of )ndia or a sitting Supr
Court ,udge nominated by the C;), and an emi
,urist to be nominated by the &resident of )
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d rate of 1.3 per cent
te will be rec!oned with
with the September C&)
so on. )nterest on the
ut but compounded on a
'ydera)ad% "
ium 'nterprises $S-'%
set up at Hyderabad.
ing institute was also
atnam at an investment
esiden#% Sidharth
dent, F)CC), after the
"nnual /eneral -eeting.
##ers of credi# on
ncidents of frauds, ban!s
fund based
uarantees and letters of
s"),ec# #o )ank
Committee on 'conomic
a &etroleum and atural
allow R)* to sell K/+#=
tive "pril 721<. )t
tting any capFfloor price
maintain the gas price
r. R)* can now get the
as price in return for a
the unmet supply
cr in#eres#Afree
he Cabinet Committee on
pproved Rs =,=22 crore
ugar mills to ease their
he CC'" also approved
ithout any Auantitative
Lokpal Bill% 0he
passed the *o!pal Bill,
he setting up of anti+
t the Centre and State
ed by *o! Sabha on 15

#ec. Highlights of
e *o!pal will consist of a
um of eight members, of
al membersH $b% Fifty per
ers shall be SCFS0F9BCs,
$c% 0he chairperson and
by a selection committee
-inister, Spea!er of the
e 9pposition in the *o!
dia or a sitting Supreme
y the C;), and an eminent
y the &resident of )ndia
on the basis of recommendation
members of the selection com
,urisdiction will include all ca
servants and incorporate
attachment and confiscation
by corrupt means, even whi
pendingH $e% Setting up of *o
enactment of a law by the State
:=3 days from the date of com
&2! Rename company secre#ari
professionals@6 0he Comp
)nstitute has written to the
-inistry suggesting that their
rechristened as Igovernance pro
&4! S#a#"s C"o on repo ra#e7 CR
status Auo on the repo rate at
cash reserve ratio $CRR% at < pe
announced on 15
#ec. '(plai
for not hi!ing the rate in the m
RB) /overnor stated that
wholesale inflation have incr
account of food prices and veg
li!ely to fall both at the who
&5! /esco #o in>es# D<< milli
re#ail s#ores% British retailer 0
the first global retailer to see!
nod to enter multi+brand reta
0esco plans to pic! up a 32
0rent Hypermar!et *td, a reta
group, and enter the multi
0he stores will operate under
BaCaar, Star #aily or Star
will come up in -aharashtra an
&=! RBI plans carro#AandAs#ick a
)ad loans% 0o spur ban!sFfin
to agree collectively and Auic
resolution of stressed assets, R
liberal regulatory treatment in
the loss on sale of the asset ove
yearsH allowing ta!eout fina
over a longer period and no
same as restructuring. )n cas
reach an agreement on resol
assets then they will be sub,e
provisioning. Before a loan acc
non+performing asset $&"%
s of recommendations of the first four
of the selection committeeH $d% 0he
will include all categories of public
and incorporate provisions for
and confiscation of property acAuired
t means, even while prosecution is
e% Setting up of *o!ayu!tas through
of a law by the State *egislature within
rom the date of commencement of the

y secre#aries as B:o>ernance
6 0he Company Secretaries
as written to the Corporate "ffairs
ggesting that their members may be
d as Igovernance professionalsJ.
po ra#e7 CRR% RB) maintained
on the repo rate at @.@3 per cent and
e ratio $CRR% at < per cent in its policy
#ec. '(plaining the rationale
ing the rate in the mid+Auarter policy,
rnor stated that both retail and
inflation have increased mainly on
food prices and vegetable prices are
all both at the wholesale and retail
D<< million in m"l#iA)rand
British retailer 0esco &lc became
obal retailer to see! the /overnment8s
brand retail trade segment.
s to pic! up a 32 per cent sta!e in
rmar!et *td, a retail arm of the 0ata
enter the multi+brand retailing arena.
will operate under the names Star
r #aily or Star -ar!et, and the first few
p in -aharashtra and Karnata!a.
s#ick approac( #o c"r#ail
0o spur ban!sFfinancial institutions
ollectively and Auic!ly to a plan of
of stressed assets, RB) may consider a
ulatory treatment including spreading
sale of the asset over a period of two
wing ta!eout financingFrefinancing
ger period and not considering the
estructuring. )n case lenders cannot
ment on resolution of stressed
they will be sub,ect to accelerated
g. Before a loan account turns into a
ming asset $&"%, ban!s should

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identify incipient stress in the account by creating
a new sub+asset category K Special -ention
"ccounts $S-"% + a standard account, which is
moving towards the substandard category. S-"
will have three sub+categories K S-"+F
$classified on the basis of non+financial signals%H
S-"+1 $when principal or interest payment is
overdue between :1+=2 days%H and S-"+7 $when
principal or interest payment is overdue between
=1+?2 days%. 0he RB) also plans to set up a
Central Repository of )nformation on *arge
Credits $CR)*C% to collect, store, and disseminate
credit data to lenders. Ban!s will have to furnish
credit information to CR)*C on all their
borrowers having aggregate fund+based and non+
fund+based e(posure of Rs 3 crore and above.
Systemically important non+ban!ing finance
companies $BFC+S)s% will also be as!ed to
furnish such information. )n addition, ban!s will
have to furnish details of all current accounts of
their customers with outstanding balance $debit
or credit% of Rs 1 crore and above. 0he reporting
of an account as S-"+7 by one or more lending
ban!sFBFC+S)s will trigger the mandatory
formation of a ;oint *enders8 Forum $;*F% and
formulation of Corrective "ction &lan $C"&%. ;*F
formation would be made mandatory for
distressed corporate borrowers with aggregate
fund+based and non+fund based e(posure of Rs
122 crore and above. 0he options under the C"&
by the ;*F would generally include6 rectification
$for regularising the loan account%, restructuring
and recovery $when the first two options fail%.
*<! Relief #o )anks on asse# sales #o ARCs% "s per
RB), the e(cess provision on any bad loan which
is sold to an asset reconstruction company $"RC%
for a higher value can be reversed to the ban!8s
*! Infla#ion (i#s .Amon#( (i:(% Surging food
prices pushed ovember wholesale price inde(+
based inflation to a 1<+month high of @.37 per
cent. Food inflation shot up a huge 1?.?: per cent
K a near+four+year high. )t had risen 15.1? per
cent in 9ctober. Begetable prices shot up an
alarming ?3.73 per cent in ovember compared
with @5.:5 per cent in the previous month.
*&! India for food sec"ri#y s")sidies o"# of W/O
ac#iona)le sops am)i#% )ndia will push for
complete e(clusion of subsidies given under
public stoc! holding programmes from the
category of actionable subsidies at the >orld
0rade 9rganisation. )ndia has managed to get
only an interim reprieve from legal action against
such breaches at the recently concluded
-inisterial -eeting in Bali.
**! /(ird (ome loan as a commercial real es#a#e
ad>ance6 0he ational Housing Ban! has
suggested to the Finance -inistry that home
loans provided to a borrower for the third time
should not be treated as commercial real estate
advance. "ccording to R. B. Berma, Chairman and
-anaging #irector, HB, such an approach would
help improve housing stoc! in the country and
also give a fillip to the rental housing mar!et.
HB is the housing finance regulator of the
*.! SMS aler#s% Banks prefer #o c(ar:e a fla# ra#e%
)nstead of lin!ing the charges to the number of
transaction alerts received by customers, ban!s
are weighing the possibility of recovering Rs 3+12
a month from those opting to receive the alerts
via S-S.

*1! Cen#re #o re>ie$ RBI po$ers as par# of
financial sec#or reforms% 0he Financial Sector
*egislative Reforms Commission $FS*RC% has
proposed a financial regulatory mechanism
comprising the RB), .nified Financial "gency,
Financial Sector "ppellate 0ribunal, Resolution
Corp, Financial Redressal "gency, &ublic #ebt
-anagement "gency and the Financial Stability
#evelopment Council. .nder the proposed
regulatory structure, the RB) will perform the
functions of monetary policy, regulation and

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supervision of ban!ing and payment systems.
Financial Stability #evelopment Council
function in the systemic ris! and developm
*2! IA/ dep# s#akes claim #o 6in:fis(er asse#
)ncome 0a( #epartment has said a consortiu
ban!s cannot sta!e any claim to the asset
Kingfisher "irlines until the department8s du
over Rs :32 crore are settled.
*4! 3o># offers more concessions "nder r"ra
sc(eme% .nion -inister for Rural #evelopm
;airam Ramesh has announced that
,ob card holder under -R'/", will be entitle
Rs 12,222 to build an individual toilet. "t pre
a ,ob card holder can avail Rs <,322 to bu
toiletH the Centre will provide assistance for
construction of buildings for women self
federationsH -arega scheme will be conve
with the )ndira "was Eo,ana and other hou
schemes for the poorH $d% to allow the buildin
community storage facilities for agricul
produce in gram panchayats to lin! the -/R
with the Food Security SchemeH $e% if wages
delayed beyond 13 days, compensation at
per cent of wage per day of delay will be paid
this amount will be deducted from the salar
the responsible personnel.
*5! P")lic sec#or )anks may (a>e #o se
ins"rance )rokin: arms )y Fe)r"ar
present, ban!s are allowed to tie up with only
insurance company and sell products of only
insurer under the corporate ag
$bancassurance% channel. "ccording to Finan
Services Secretary Ra,iv 0a!ru, all insur
products should be available through the
la!h+plus ban! branches. "ccording to
guidelines finalised by the )nsurance Regula
and #evelopment "uthority, as bro!ers, b
will have to cap business from their own gr
companies at 73 per cent for life insurance a
similar cap for non+life insurance business. -
ma,or public sector and private sector ba
such as State Ban! of )ndia, .nion Ban! of )n
Ban! of Baroda, Canara Ban!, Ban! of
&un,ab ational Ban!, "ndhra Ban!, )C)C) B
and )#B) Ban!, have promoted insur
companies. -ost ban!s are not in favou
bro!ing as many of them had promoted insur
companies. "lso, they will have fiduc
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nd payment systems. 0he
elopment Council will
c ris! and development
is(er asse#s% 0he
onsortium of
claim to the assets of
the department8s dues of
"nder r"ral ,o)s
for Rural #evelopment
ced that G $a% every
R'/", will be entitled to
ividual toilet. "t present,
vail Rs <,322 to build a
rovide assistance for the
en self+help
heme will be converged
o,ana and other housing
% to allow the building of
cilities for agriculture
ats to lin! the -/R'/S
SchemeH $e% if wages are
s, compensation at 2.23
of delay will be paid and
ucted from the salary of

a>e #o se# "p
y Fe)r"ary% "t
ed to tie up with only one
sell products of only that
corporate agency
"ccording to Financial
iv 0a!ru, all insurance
ilable through the one+
es. "ccording to the
he )nsurance Regulatory
ority, as bro!ers, ban!s
s from their own group
t for life insurance and a
insurance business. -ost
d private sector ban!s,
dia, .nion Ban! of )ndia,
a Ban!, Ban! of )ndia,
ndhra Ban!, )C)C) Ban!
e promoted insurance
are not in favour of
had promoted insurance
will have fiduciary
responsibility towards the custo
insurance products under the br
*=! A/M densi#y s#ill lo$ in Indi
data outlining global financial in
for 7211, there are ,ust 73.< m
1,222 sA. !m in )ndia. 0his tr
"0-s for every one la!h popu
lowest densities in the world. B
China have access to 7,?@3 mac
geographical e(panse, with <?
la!h population. )n .K, "0- den
per 1,222 sA !m. But the numb
la!h population is higher at 1
density in populous -alaysia
1,222 sA !m, with 3=.< mach
population. >hile the densi
machines per 1,222 sA !m is lo
such as )ndonesia, -e(ico and
they have more machines per
owing to the lower population. H
of ban! branch density, )ndia
many developing countries. Ban
in )ndia is :2.< per 1,222 !m, co
in the .S, :.1 in South "frica
China ran!s highest in terms
.<! F"ndin: for Bspecialised@ e
discussion paper on resolutio
stated that RB) will allow ban!s
to 4specialised8 entities pu
acAuisition of troubled compan
lenders should ensure that t
adeAuately capitaliCed. 0he R
withdraw the minimum holdin
initial loan sale. However, the
the &" will have to hold the as
at least one year before selling t
.! C"r)s on firms ropin: in dir
)oards of B$ilf"l defa"l#ers
in respect of e(isting loansFe(p
companies having directorFs
appear more than once in t
defaulters, could be set higher
case of standard accounts $a
provisioning of 2.<2 per ce
.&! Coal Re:"la#ory A"#(ori#y B
establish an independent regula
effective monitoring and regu
ity towards the customer while selling
roducts under the bro!ing regulation.
lo$ in India% "ccording to RB)
ing global financial inclusion indicators
here are ,ust 73.< machines in every
!m in )ndia. 0his translates into 5.?
very one la!h population, one of the
sities in the world. Ban! customers in
access to 7,?@3 machines in the same
al e(panse, with <?.= "0-s per one
tion. )n .K, "0- density stands at 7=1
sA !m. But the number of "0-s per 1
ation is higher at 177.5 "0-s. "0-
populous -alaysia stands at :< per
!m, with 3=.< machines per 1 la!h
. >hile the density in terms of
er 1,222 sA !m is lower in countries,
donesia, -e(ico and the &hilippines,
more machines per one la!h people
e lower population. However, in terms
anch density, )ndia fares better than
loping countries. Ban! branch density
< per 1,222 !m, compared to ,ust ?.=
:.1 in South "frica and @.? in BraCil.
s highest in terms of ban! branch
cialised@ en#i#ies% RB), in its
paper on resolution of &"s, has
ow ban!s to e(tend finance
lised8 entities put together for
of troubled companies. However, the
ould ensure that these entities are
capitaliCed. 0he Reserve Ban! will
the minimum holding period for any
sale. However, the ban! purchasing
ll have to hold the asset in its boo!s for
year before selling the asset.
pin: in direc#ors $(o are on
defa"l#ers@% 0he provisioning
ing loansFe(posures of ban!s to
having directorFs, whose nameFs
re than once in the list of wilful
could be set higher at 3 per cent in
andard accounts $against the usual
g of 2.<2 per cent for standard

A"#(ori#y Bill #a)led% " Bill to
n independent regulatory authority for
onitoring and regulation of the coal

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sector has been introduced in the *o! Sabha.
ob,ective of the proposed coal regula
authority include putting in place regulation
will be a counter to the practices and method
a monopolistic producer of coal.
.*! Banks may soon )e:in c(ar:in: c"s#ome
A/M "sa:e% 0o ma!e good the e(penses incu
on beefing up security, ban!s are con
levying a charge on all "0- transactions, be
cash withdrawal or a balance enAuiry.
all transactions by customers at their ba
"0-s are free. 0he first five transactions
month at other "0-s are also free. "ccordin
initial estimates, the cost per transaction w
out to Rs = on the basis of an average of
transactions in each of the 122,222+
across the country.
..! Fac#ory o"#p"# falls7 re#ail infla#ion
Retail inflation surged to 11.7< per cen
ovember $12.1@ per cent in 9ctober%. Fac
output contracted in 9ctober to 1.5 per c
though this was partly because of the base e
K in 9ctober 7217, ))& growth was at a m
month high of 5.7 per cent.
.1! 3o># plans ed"ca#ion loans #o min
comm"ni#ies for o>erseas s#"dy% .nder &a
&ardesh $study abroad% scheme, interest sub
will be given on education loans ta!en
meritorious students belonging to economi
wea!er sections of notified minority commun
G -uslims, Christians, Si!hs, Budd
Loroastrians $&arsis%. 0he &adho &ardesh sch
is being put together by the -inistry of -ino
"ffairs and the Finance -inistry to pro
minority community students with be
opportunities for higher education $-asters
&h.# level% abroad and enhance t
employability. 0hirty per cent of the be
under the scheme will be reserved for fem
.2! IOB :e#s RBI nod #o open second )ran
Ban:kok% )ndian 9verseas Ban! $)9B%
received RB) approval for opening a sec
branch in Bang!o!. )9B is the only )ndian le
to have a branch presence in Bang!o!.
.4! E8por# :ro$#( slo$s #o 1!52? in No>e
'(ports grew at a slower pace in ovembe
3.5= per cent, from double+digit increases po
| www.careerpower.in | www.ca
ed in the *o! Sabha. 0he
posed coal regulatory
in place regulation that
practices and methods of
n: c"s#omers for
od the e(penses incurred
, ban!s are considering
0- transactions, be it a
lance enAuiry. Currently,
tomers at their ban!8s
t five transactions in a
"ccording to
t per transaction wor!s
is of an average of 722
+plus "0-s

infla#ion rises%
to 11.7< per cent in
ent in 9ctober%. Factory
ctober to 1.5 per cent,
ecause of the base effect
growth was at a multi+
s #o minori#y
.nder &adho
scheme, interest subsidy
cation loans ta!en by
longing to economically
ed minority communities
Si!hs, Buddhists and
e &adho &ardesh scheme
the -inistry of -inority
ce -inistry to provide
students with better
education $-asters and
and enhance their
er cent of the benefit
be reserved for female
econd )ranc( in
rseas Ban! $)9B% has
for opening a second
is the only )ndian lender
e in Bang!o!.
? in No>em)er%
er pace in ovember, at
digit increases posted
in the four preceding months.
due to a drop in shipments of ge
petroleum products and phar
trade deficit, however, shran!
easing pressure on the country
deficit as imports posted a shar
per cent during the month
Commerce -inistry is confiden
e(port target of M::3 billion for
.5! SBI plans s#"dy on c"s#ome
bid to assess the current le
satisfaction and e(perience, Sta
planning to conduct a study acro
as products, channels and p
conducted across all 1< circle
identify opportunities to im
e(perience across various area
SB)8s processes and service ag
ban!s in )ndia and overseas.
.=! Po$er #ariffs may drop
prod"cers are #i:(#ened%
see a marginal drop if the dra
power tariffs, issued by the C
Regulatory Commission $C'RC
C'RC reviews tariff regulations
0he e(isting regulations $722?
-arch :1.
1<! /a#a 'all opens a# 'ar>ard
0ata Hall was funded by a
donated by the philanthro
/roup K the Sir #orab,i 0ata 0
'ducation and #evelopment 0ru
1! 3armen# e8por#s "p 1? in
e(ports have grown 13.3 per ce
months of the fiscal to M5.7 bill
of demand in the .S and the '..
1&! More remi##ances dir
in>es#men# p"rposes6 "s per
7217+1:, the share of trans
average siCe of individual remit
and above was relatively higher
the total value of remittances a
in 722?+12. 0he trends seem to
the years, a higher proportion o
being directed towards inve
"bout 3@ per cent of the total r
are received in terms of dollar,
of remittances are received in
."' dirham. 0he share of
sterling are @ per cent a
respectively. "ccording to th
$Society for >orldwide )nte
0elecommunication% is the co
transferring funds.
preceding months. 0his was mainly
op in shipments of gems and ,ewellery,
products and pharmaceuticals. 0he
it, however, shran! to M?.7 billion,
sure on the country8s current account
ports posted a sharp decline of 1=.:@
during the month. However, the
-inistry is confident of reaching the
et of M::3 billion for 721:+1<.
on c"s#omer e8perience% )n a
sess the current level of customer
and e(perience, State Ban! of )ndia is
conduct a study across !ey areas such
ts, channels and processes. 0o be
across all 1< circles, the study will
pportunities to improve customer
across various areas and benchmar!
and service against best+in+class
dia and overseas.
may drop as norms for
:(#ened% 'lectricity rates may
inal drop if the draft regulations on
ffs, issued by the Central 'lectricity
Commission $C'RC%, are approved.
ws tariff regulations every five years.
g regulations $722?+1<% will e(pire on
a# 'ar>ard B"siness Sc(ool%
was funded by a M32+million gift
the philanthropic subsidiaries of 0ata
he Sir #orab,i 0ata 0rust and the 0ata
nd #evelopment 0rust.
"p 1? in AprilAOc#% "pparel
ve grown 13.3 per cent the first seven
the fiscal to M5.7 billion due to revival
in the .S and the '..
nces direc#ed #o$ards
6 "s per a study by RB), in
the share of transactions with an
e of individual remittance of Rs 1 la!h
was relatively higher at <3 per cent of
lue of remittances against 7@ per cent
. 0he trends seem to suggest that over
higher proportion of remittances are
cted towards investment purposes.
er cent of the total remittance inflows
n terms of dollar, while 1= per cent
ces are received in Saudi riyal and
m. 0he share of 'uro and pound
re @ per cent and 5 per cent,
y. "ccording to the survey, S>)F0
or >orldwide )nter+ban! Financial
nication% is the costliest means of

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1*! RBI (i#s #(e ,ackpo# $i#( dollar deposi#
sc(eme% Ban!s have managed to mobilise M:<
billion in foreign currency deposits since the
special swap scheme was flagged off in
September. 0his is much higher than the sums
raised by the Resurgent )ndia Bonds $R)Bs% of
1??5 $M<.7 billion% and the )ndia -illennium
Bonds $M3.3 billion%.
1.! MFI c"s#omers #o )e :i>en credi# scores%
'Auifa( Credit )nformation Services, a credit
information company, is offering scores to help
understand the credit profile of microfinance
customers. 0he product is called 'Auifa( -F) Ris!
Score. 0hrough this product, a microfinance
institution that is a member of 'C)S, can obtain
credit reports of its customers.
11! Minis#ers@ panel okays Rs 47&<<Acrore sof#
loans for cas(As#rapped s":ar mills%
12! " panel of senior .nion ministers, which
considered the demands of the sugar mills, has
decided a soft loan of Rs @,722 crore to settle the
amounts due to sugarcane farmers. 0he loan will
be given at 17 per cent interest rate to the sugar

14! W/O adop#s (is#oric Bali packa:e% 0he >orld
0rade 9rganisation $>09% -inisters at Bali
adopted the historic five+draft decision
declaration and the 12+document full Bali
&ac!age that addresses the #oha #evelopment
"genda. 0he draft proposes an interim
mechanism for safeguarding minimum support
prices to farmers against >09 caps till a
permanent solution is found and adopted.
15! -efa"l#s on commercial >e(icle loans on #(e
rise6 "ccording to )ndia Ratings N Research
report, the performance of commercial vehicle
loans touched a new low in the third Auarter $to
September :2% of the ongoing calendar year. 0he
Fitch /roup8s credit rating agency, in its Auarterly
analysis, found that Ieven creditworthy
borrowers may not remain insulated in times of
economic slowdownJ.
1=! 'o"se panel opposes )ank licences #o
ind"s#rial (o"ses% "s per the Standing
Committee on Finance, RB) should desist from
giving new ban! licences to industrial houses.
2<! Re)o"nd in F-I flo$s in#o India6 )n its >orld
)nvestment and &olitical Ris! Report, by >orld
Ban!, the foreign direct investment $F#)% flows
received by )ndia in the ;anuary+-arch 721:
period reflects a rebound in inflows. 0his is a
result of the new investment policies put in place
for select sectors, such as telecoms and insurance.
)ndia is by far the largest recipient of F#) in South
"sia, comprising )ndia, &a!istan, Sri *an!a and
Bangladesh. 0he growth of F#) flows into
developing economies has been dominated by
BraCil, China, and )ndia. )n 7217, China received
12.3 times more F#) than )ndia. >hile )ndia
received M7< billion, China received M73:.3
2! Moody@s o"#look #"rns )leak for India Inc%
-oody8s )nvestors Service said its outloo! for
)ndian corporates $non+financial% is negative,
reflecting macro+economic challenges over the
ne(t 17 months. )t also e(pects the rupee to
remain volatile due to heightened e(pectations of
a scale+bac! of Auantitative easing by the .S
Federal Reserve in 721<. 0his could ma!e the
operating environment more challenging for
importers and e(porters.
2&! SBI asks officers #o mee# loanAseekers only a#
)ranc(6 0o ensure that the dealings of its officers
are more transparent, State Ban! of )ndia has
as!ed them not to meet the borrowers, e(isting as
well as prospective, at any location other than the
branch. "n officer should hold meetings with the
borrower only in the presence of other officers.
9ne+on+one meetings and meetings at the
residence of either the officer or the borrower
should be avoided. Further, tal!s between the

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ban! staff and the borrower, who may come
loanFenhancement of loan limitF one
compromise settlement of a loan that has g
sour, should ideally be video recorded.
emphasis on transparency in officers8 dea
with borrowers comes in the wa!e of the Cen
Bureau of )nvestigation recently registerin
case against SB) #eputy -anaging #ire
Shyamal "charya, Chairman of a ew #elhi
private company and others in an alleged bri
2*! Asse# C"ali#y of )anks $ill $orsen )y M
&<.6 "ccording to a report by credit rat
agency )CR", the asset Auality of the ban
sector is set to worsen with gross non+
assets $&"s% ratio li!ely to end at <.7
cent by -arch+end 721< from < per cen
September 721:. 0he absolute gross &"s
deteriorate to Rs 7.@2+7.?2 la!h crore by -
721< from 7.:@+la!h crore in September this y
2.! M"llin: a"#oma#ion #o c"# opera#ional co
Bno frills@ acco"n#s% 0he State Ban! of )ndia $
is loo!ing to develop an automated system
will help minimise the operational c
frillsJ or Cero balance savings accounts. 0
Cero balance accounts, has led to hi
operational costs but has not resulted in
improvement in the C"S" $current and sav
account% ratio.
21! /imely7 acc"ra#e da#a no# comin: from )
FIs6 "ccording to C)B)* chief, inadeAuate
poor Auality data from financial institutions
challenge for credit health assessing age
C)B)* has four divisions or bureaus
commercial, mortgage and frauds K
which it serves ban!s, other financial institut
and telecom companies. )t will soon laun
4microfinance8 division, to offer credit informa
to microfinance institutions. 0he bu
currently has over :72 million records
the retail bureau predominantly $:23 mil
and the commercial bureau $13 million%.
22! Ma(ila Bank m"lls c(ildcare allo$anc
$omen s#aff% 0he Bharatiya -ahila Ban
planning to give childcare allowance to its wo
employees. 0he proposed move is aimed
attracting and retaining talent, especially
employees in the ,unior management g
$entry+level officer% and middle managem
grade $officers of the ran! of manager and se
manager% in )ndia8s first women8s ban! in
public sector.
24! Crea#e a$areness amon: cons"mers
advised credit information companies $C)Cs
create awareness among consumers about cr
| www.careerpower.in | www.ca
wer, who may come for a
loan limitF one+time
of a loan that has gone
e video recorded. 0he
ncy in officers8 dealings
the wa!e of the Central
recently registering a
uty -anaging #irector
an of a ew #elhi+based
ers in an alleged bribery
$orsen )y Marc(
report by credit ratings
Auality of the ban!ing
ly to end at <.7+<.< per
1< from < per cent in
bsolute gross &"s may
.?2 la!h crore by -arch
e in September this year.
ra#ional cos#s of
State Ban! of )ndia $SB)%
automated system that
operational costs of Ino
savings accounts. 0hese
s, has led to higher
has not resulted in an
S" $current and savings
in: from )anks7
* chief, inadeAuate and
financial institutions is a
ealth assessing agency.
s or bureaus K retail,
K through
financial institutions
. )t will soon launch a
o offer credit information
itutions. 0he bureau
million records K from
ominantly $:23 million%
au $13 million%.
e allo$ance for
aratiya -ahila Ban! is
e allowance to its women
sed move is aimed at
talent, especially women
ior management grade
d middle management
! of manager and senior
t women8s ban! in the
s"mers6 RB) has
ion companies $C)Cs% to
consumers about credit
behaviour and credit scores
finances better. )ndia stands at
15? countries on the ease of g
has the best ran!ing amo
economies K China is at @:,
BraCil are at ran! 12?.
25! C"rren# acco"n# defici# na
3-P% >ith a pic! up in mercha
a dip in imports, the country8
deficit narrowed sharply to a
1.7 per cent of /#& in the secon
the e(cess of all goods, servi
imported in a period over the to
to M3.7 billion in the ;uly
M71 billion in the year+ago per
lower than the C"# of <.? per c
previous Auarter, ended ;une :2
2=! Core ind"s#ries@ o"#p"# dec
"fter a robust 5 per cent rise
eight core industries8 output c
cent in 9ctober. 0he eight
crude oil, natural gas, re
fertilisers, steel, cement and e
recorded a @.5 per cent grow
9ctober last year.
4<! Odis(a displaces 3",ara#
a##rac#i>e S#a#e for in>es
accounts for over one+fifth of
across the country in the first
year, which were cumulatively
la!h crore, according to #epart
&olicy and &romotion $#)&&% da
4! /o ens"re s#a)ili#y7 RBI $a
"p capi#al )"ffer% )n its
implementation of counter
$CCCB% regime in )ndia, the
endeavour to ensure that individ
solvent through periods of stres
see!s to ensure that the ba
capital in hand to help maintain
in the economy during econom
periods of stress.
4&! Mo)ile paymen#s are :ainin
data show there has been a 1
immediate payment service
transferred using mobile p
September 7217 and ;uly 72
seven+fold rise in the numbe
and credit scores to manage their
tter. )ndia stands at 75
ran! amongst
ies on the ease of getting credit and
best ran!ing amongst the BR)CS
China is at @:, both Russia and
defici# narro$s #o !&? of
a pic! up in merchandise e(ports and
ports, the country8s current account
rowed sharply to a more manageable
t of /#& in the second Auarter. C"# K
of all goods, services and transfers
a period over the total e(ports K fell
ion in the ;uly+September Auarter from
ago period. 0his was also
the C"# of <.? per cent of /#& in the
arter, ended ;une :2, 721:.
o"#p"# declines <!2? in Oc#%
ust 5 per cent rise in September, the
industries8 output contracted 2.= per
ober. 0he eight core industries K coal,
, natural gas, refinery products,
steel, cement and electricity K had
@.5 per cent growth in output in
s 3",ara# as India@s mos#
for in>es#men#% 0he State
fifth of pro,ect proposals
country in the first 12 months of the
h were cumulatively valued at Rs <.@
according to #epartment of )ndustrial
&romotion $#)&&% data.
7 RBI $an#s )anks #o )"ild
)n its draft report on
ation of counter+cyclical capital buffer
gime in )ndia, the RB) said it will
to ensure that individual ban!s remain
ough periods of stress. 0he regime also
nsure that the ban!ing sector has
and to help maintain the flow of credit
omy during economic downturns and

are :ainin: c"rrency% *atest
there has been a 13+fold increase in
payment service $)-&S% amounts
using mobile phones between
7217 and ;uly 721:, as well as a
rise in the number of transactions.

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Seventeen million of the 5@2 million mo
phone users in )ndia now access ban!ing serv
through their mobile phones.
4*! Sys#emically impor#an# )anks s
main#ain (i:(er #ier capi#al6 "ccordin
draft framewor! by RB), #omestic+Systemi
)mportant Ban!s $#+S)Bs% will have to
additional common eAuity 0ier 1 capital ran
from 2.72 per cent to 2.52 per cent of their
weighted assets. Common eAuity tier $C'0
capital includes common sharesH share prem
resulting from the issue of instruments, inclu
C'0 1H and retained earnings. 0he ban!s havi
siCe of beyond 7 per cent of /#& will be sele
in the sample of ban!s.
4.! M! +! /anksale is IBA@s ne$ c(ief e8ec
-.B. 0an!sale, former Chairman and -ana
#irector of Central Ban! of )ndia, has ta!en
as Chief '(ecutive of the )ndian Ba
41! RBI mo>e permi##in: )anks@ en#ry
ins"rance )rokin: )iE (ailed% )t will e(p
coverage and offer more choice to customer
per RB)8s draft guidelines, ban!s will
permitted to underta!e insurance bro
business departmentally. For underta!ing
business, a ban!8s capital+to+ris! weighted as
ratio $CR"R% should not be less than 12 per
$as against the regulatory minimum of ?
cent%H and its net non+performing assets r
should not be more than : per cent. Further
ban! should have made profits for the last t
consecutive yearsH its net worth should no
less than Rs 322 croreH and the trac! record o
performance of the subsidiariesF ,oint ventur
any, should be satisfactory.

FEB &<.

! Fiscal defici# (i#s =1? of es#ima#e in = mo
"ccording to data published by the Contr
/eneral of "ccount, the total deficit at the en
#ecember touched Rs. 3.1=+la!h crore, whic
?3.7 per cent of the budget estimate
la!h crore.
&! 3-P :ro$#( in &<&A* scaled do$n
decadal lo$ of .!1?% 0he downward revi
has been prompted by lower than provision
| www.careerpower.in | www.ca
llion mobile
access ban!ing services
)anks s(o"ld
6 "ccording to
s% will have to maintain
ty 0ier 1 capital ranging
52 per cent of their ris!+
on eAuity tier $C'0% 1
sharesH share premium
of instruments, including
ings. 0he ban!s having a
t of /#& will be selected
$ c(ief e8ec"#i>e%
hairman and -anaging
of )ndia, has ta!en over
f the )ndian Ban!s8

ks@ en#ry in#o
)t will e(pand
choice to customers. "s
elines, ban!s will be
ce bro!ing
y. For underta!ing the
ris! weighted assets
be less than 12 per cent
ory minimum of ? per
performing assets ratio
: per cent. Further, the
profits for the last three
et worth should not be
nd the trac! record of the
idiariesF ,oint ventures, if
a#e in = mon#(s%
ished by the Controller
otal deficit at the end of
la!h crore, which is
get estimate of Rs. 3.<7+
caled do$n #o
0he downward revision
lower than provisionally
estimated agricultural and man
0he revised /#& growth of <
decadal low K the previous low
recorded in 7227+2:. 0he C
raised /#& growth for 7211
$second revised estimate% fro
'conomic growth for 7212
per cent $third revised estima
cent pro,ected earlier. "ccord
revised estimate of national inc
agricultural growth stood at 1.
cent in 7211+17%, and mining
cent $2.1 per cent growth in 721
*! Core ind"s#ries o"#p"# "p
output of the eight core indust
oil, natural gas, refinery pro
steel, cement, electricity
than @.3 per cent growth recor
7217. )n "pril+#ecember 7
industries8 output grew a me
against =.5 per cent in same
output fell $+% 2.= per cent in #
year. &etroleum refinery produc
1.@ per cent.
.! Banks #o re#(ink fee on A/M
action points mooted at a recen
9mbudsmen conference relate
use. )n order to provide enh
"0-s, ban!s plan to cap the nu
transactions to five a month
whether customers use thei
another ban!8s "0-s. RB) #ep
Cha!rabarty had said it would b
customers transacting at their o
0he practice of levying a p
maintenance of a minimum ba
savings ban! accounts was also
conference. Henceforth, ban!
converting such accounts into B
#eposit accounts. 0he )B" may
to discontinue levying a pre
all floating+rate loans. Further
that fi(ed rate loans are tru
referenced to any floating rate b
and the )B" will also formulate
liability of customers in el
transactions, when a ban! is u
customer+level negligence. 0he
customer+level negligence wou
and when such negligence is
beyond doubt, the benefit of su
given to the customer.
1! Need for more specialised )
-r achi!et -or, Chairma
committee on financial inclusio
gricultural and manufacturing output.
d /#& growth of <.3 per cent is a
the previous low of < per cent was
2:. 0he CS9 has however
growth for 7211+17 to =.@ per cent
vised estimate% from =.7 per cent.
rowth for 7212+11 was lowered to 5.?
third revised estimate% from ?.: per
cted earlier. "ccording to the first
imate of national income for 7217+1:,
l growth stood at 1.< per cent $3 per
17%, and mining declined 7.7 per
r cent growth in 7211+17%.
"# "p &!?% 0he latest
he eight core industries G coal, crude
l gas, refinery products, fertilisers,
nt, electricity G was however lower
er cent growth recorded in #ecember
#ecember 721:, eight core
output grew a mere 7.3 per cent
per cent in same period year. Coal
% 2.= per cent in #ecember year+on+
leum refinery production shran! by $+%
fee on A/M "se% 9ne of the si(
ts mooted at a recent annual Ban!ing
n conference related to fee on "0-
der to provide enhanced security at
s plan to cap the number of free "0-
s to five a month, irrespective of
ustomers use their own ban! or
n!8s "0-s. RB) #eputy /overnor KC
y had said it would be unfair to charge
transacting at their own ban!8s "0-s.
ice of levying a penalty for non+
ce of a minimum balance in ordinary
ounts was also discussed at the
. Henceforth, ban!s may consider
such accounts into Basic Savings Ban!
ounts. 0he )B" may issue instructions
nue levying a pre+payment penalty on
rate loans. Further, it has to ensure
rate loans are truly fi(ed and not
to any floating rate benchmar!. Ban!s
" will also formulate a policy on Cero
f customers in electronic ban!ing
s, when a ban! is unable to establish
evel negligence. 0he onus of proving
evel negligence would be on the ban!
such negligence is not established
ubt, the benefit of such doubt may be
ecialised )anks% "ccording to
!et -or, Chairman of the RB)8s
on financial inclusion, there is a need

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to have specialised ban!s compared to new
service ban!s. 0he idea of financial inclusion
be better served in the medium term
specialised ban!s li!e the payments only b
and lending only ban!s are allowed to flourish
2! RBI $orkin: on early $arnin: sys#em fo
loans% 0he framewor! to revitalise distre
loans in the economy will be fully effective f
"pril 1. 0he framewor! has been envisage
there is a need to ensure that the ban!ing sys
recognises financial distress early, ta!es pro
steps to resolve it, and ensures fair recovery
lenders and investors. 0he main proposals o
framewor! include early formation of a lend
committee with timelines to agree to a plan
resolution. -ain proposals include G
will be given incentives to agree collectively
Auic!ly wor! out a debt resolution planH be
regulatory treatment of stressed assets
resolution plan is underway and a
provisioning if no agreement can be reached
0o improve the current restructuring process
framewor! wants independent evaluation
large+value restructurings mandated, with a f
on viable plans and a fair sharing of losses
future possible upsides% between the promo
and the creditorsH $c% Borrowing could bec
more e(pensive if borrowers do not co
with lenders in resolution. *enders will be g
more liberal regulatory treatment for asset s
$d% *enders can spread the loss on sale over
years provided the loss is fully disclosed. Fur
ta!e+out financing F refinancing will be pos
over a longer period and will not be construe
restructuringH $e% leveraged buyouts allowed
specialised entities for acAuisition of 4stre
companies8. Sector+specific companies F pri
eAuity firms will be encouraged to play an ac
role in the stressed assets mar!et.
4! F-I inflo$s in#o India in &<* rose 4
D&5 )illion% "ccording to the . Conferenc
0rade and #evelopment $.nctad% report
721:, F#) during the year rose 11 per cen
M1.<= trillion which is the highest since the
of the global economic crisis in 7225. .n
forecasts that F#) flows will rise graduall
721< and 7213, to M1.= trillion and M1.5 tril
respectively, indicating that the worst may
over for the crisis+ridden global econom
| www.careerpower.in | www.ca
s compared to new full
of financial inclusion will
the medium term if
ts only ban!
re allowed to flourish.
: sys#em for )ad
to revitalise distressed
ill be fully effective from
has been envisaged as
that the ban!ing system
ress early, ta!es prompt
ensures fair recovery for
he main proposals of the
formation of a lenders8
s to agree to a plan for
$a% *enders
to agree collectively and
t resolution planH better
f stressed assets if a
erway and accelerated
ent can be reachedH $b%
estructuring process, the
pendent evaluation of
s mandated, with a focus
ir sharing of losses $and
between the promoters
orrowing could become
wers do not co+operate
n. *enders will be given
reatment for asset salesH
the loss on sale over two
s fully disclosed. Further,
nancing will be possible
will not be construed as
ged buyouts allowed for
acAuisition of 4stressed
ific companies F private
uraged to play an active

* rose 4? #o
to the . Conference on
nt $.nctad% report for
ear rose 11 per cent to
e highest since the start
crisis in 7225. .nctad
s will rise gradually in
lion and M1.5 trillion,
that the worst may be
den global economy in
terms of foreign investment
inflows in 7217 had shrun! 15
trillion due to the wea!ening
environment, slow growth in
employment. )ndia attracted
billion in 7217 which was 1:
than M:1.3 billion worth of F#)
BraCil, Russian Federation, )ndia
"frica, popularly !nown
accounted for 77 per cent of
which was nearly twice that o
5! /rade defici# $i#( C(ina se
"ccording to data from #irec
Foreign 0rade, )ndian e(ports
M? billion between "pril
imports totalled M:<.3 billion.
=! IR-A officials mee# RBI7 )an
concerns o>er ins"ranc
concerns relate to ta!ing the
selling insurance policies. 0hre
of ban!s relate to their con
venture partners, eAuity arran
compete clause with insurance
other ma,or concern is the )R#
ban!s will have to cap busines
group companies at 73 per cent
with a similar cap on non
too. Ban!s, as insurance bro!er
fiduciary responsibility to the
policies sold by them. However
professional indemnity policy
liabilities. By selling produ
insurers, the customer will have
will be able to choose the prod
his needs rather than the insur
whom the ban! has a an e(clu
the present system of distribu
products through ba
$bancassurance%, ban!s act as
and sell the policies of only on
non+life insurer and a standalon
<! C"rrency no#es iss"ed )e
$i#(dra$n% RB) has decide
ban!notes printed prior to 72
behind move to withdraw b
prior to 7223 is to remove them
as they have fewer security feat
ban!notes printed after 7223
easily identify the notes to be
notes issued before 7223 do no
printing on the reverse sid
ban!notes comes in the bac!dr
of counterfeit currency and t
money in sto!ing inflation
oreign investment flows. /lobal F#)
7217 had shrun! 15 per cent to M1.:1
e to the wea!ening macroeconomic
nt, slow growth in trade, /#& and
t. )ndia attracted F#) worth M7@.:
217 which was 1:.3 per cent lower
billion worth of F#) attracted in 7211.
sian Federation, )ndia, China and South
ularly !nown as the BR)CS economies,
for 77 per cent of global F#) flows,
nearly twice that of their pre+crisis
#( C(ina se# #o #o"c( D.< )%
to data from #irectorate+/eneral of
ade, )ndian e(ports to China touched
between "pril+ovember 721:, while
alled M:<.3 billion.
e# RBI7 )ank c(iefs #o disc"ss
ins"rance )rokin:% 0he
elate to ta!ing the bro!ing route for
rance policies. 0hree ma,or concerns
relate to their contracts with ,oint
rtners, eAuity arrangement and non+
lause with insurance companies. 0he
r concern is the )R#" provision that
have to cap business from their own
es at 73 per cent for life insurance
ilar cap on non+life insurance business
as insurance bro!ers, will also have a
esponsibility to the customer for the
d by them. However, ban!s can ta!e a
ty policy to cover their
By selling products of multiple
e customer will have more choice and
e to choose the product best suited to
ather than the insurer8s product with
ban! has a an e(clusive tie up. .nder
t system of distribution of insurance
through ban! branches
ance%, ban!s act as corporate agents
e policies of only one life insurer, one
urer and a standalone health insurer.
ed )efore &<<1 #o )e
RB) has decided to withdraw
printed prior to 7223. 0he rationale
ve to withdraw ban!notes printed
23 is to remove them from the mar!et
e fewer security features compared to
printed after 7223. 0he public can
tify the notes to be withdrawn as the
d before 7223 do not have the year of
n the reverse side. 0he recall of
comes in the bac!drop of rising cases
feit currency and the role of blac!
sto!ing inflation in the economy.

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"ccording to RB), it is standard international
practice to withdraw old series notes. Between
"pril 1 to ;une :2, 721<, ban!s will e(change
these notes both for customers and non
customers. From ;uly 1, 721<, members of public
can e(change any number of these old series
notes from the ban! branches where they have
their accounts. However, to e(change more than
12 pieces of Rs 322 and Rs 1222 notes, non+
customers will have to furnish proof of identity
and residence to the ban! branch in which sheFhe
wants to e(change the notes. 0he notes printed
prior to 7223 will continue to be legal tender.
! Nanda 6"mar is ne8# N--B c(ief% anda
Kumar, currently -ember of the ational
#isaster -anagement "uthority, is slated to ta!e
over as Chairman of ##B from -arch 1. anda
Kumar will be the first ever person from the
)ndian "dministrative Service to hold the position
of ##B Chairman.
&! NBFCs s(o"ld form a sin:le represen#a#i>e
)ody6 RB) has advised BFCs to form a single
representative body with the e(ception for
microfinance where the RB) is !een on a self+
regulatory organisation to cater to this segment8s
needs. 0he RB) now regulates as many as 12
categories of BFCs, including those engaged in
asset financing, gold loans, micro+finance, credit
information companies, factoring and residuary
BFCs. Currently, different segments of BFCs
have separate associations to pursue their
*! Moody@s "ps :ro$#( #o 1!1? in &<.% 0he
report titled 4)ndia 9utloo!6 Steady /rowth,
*ower Ris!8 highlighted there is growing list of
reasons to believe that the )ndian economy has
started to turn the corner, albeit slowly, after :2
months of sub+par growth. " pic!+up in e(ports
and normal monsoon besides the prospect of a
better /overnment after the -ay election have
boosted business sentiment and investor
confidence. Both the >orld Ban! and
)nternational -onetary Fund have said that the
world economy is showing signs of bouncing bac!
this year. >hile the >orld Ban! has forecast
global growth of :.7 per cent, the )-F has now
pro,ected global growth to be higher at :.@O in
721<. For 7213, )-F sees global growth at :.?O.
.! 2? infla#ion #ar:e# in & years $ill raise
in#eres# ra#es6 0he e(pert committee set up to
revise and strengthen the monetary policy
framewor!, headed by .r,it &atel has suggested
that RB) will try to bring down inflation gradually
from 12 per cent to 5 per cent over the ne(t 17
months and to =O over the ne(t 7< months
before formally adopting the recommended
target of < per cent inPation with a band of QF+7
per cent around it. )f the RB) accepts the
recommendations of the .r,it &atel Committee,
interest rates are unli!ely to come down in 721<+
13 even if the RB) removes its current restriction
on ban! borrowing through the repo window.
0he committee has also advocated that the real
policy rate should be positive, implying that the
repo rate $currently at @.@3 per cent% should be
higher than the e(pected C&) inflation $e(pected
to average around 5.3 per cent in 721<+13%. 0he
report is a step in the right direction as inflation
leads to distortion of facts, such as savings
behaviour, investment decisions and e(port
competitiveness. Hence, bringing down inflation
cannot be debated for growth.
1! All )ranc(es of I-BI Bank #o offer e8por#
credi#% 0hese branches also support the e(port
credit $both in foreign currency and rupees%
reAuirements of e(porters+customers of the 1,232

2! Panel #o re>ie$ commodi#y f"#"res marke#
li)eraliEa#ion% 0he Finance -inistry has set up a
3+member panel to e(amine whether the
ob,ectives of price discovery and ris!
management, which motivated liberalisation of
the commodity futures mar!et, have been

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achieved or not. 0he panel may loo! at the m
of liberalisation of the commodities fut
mar!et even from the aspect of infla
management. )ndia had till early 7222 ban
trading in commodities futures. But progressi
from 7227, all commodities were permitted
futures trading G purely as a hedging mechan
But options contracts are still banned.
4! Banks can no$ lend "p #o 41? of >al
pled:ed :old% RB) has allowed ban!s to
more against pledged gold ,ewellery, the
creating a level+playing field for them vis
gold loan companies which can also lend up t
per cent of the value of pledged gold ,ewe
against the earlier =2 per cent. By allowing b
and BFCs to lend more against the pledg
gold ,ewellery, the central ban! may be tryin
brea! the shac!les of the unorganised
the business of lending against gold.
5! RBI commi##ee #o re>ie$ :o>ernance of
)oards% 0he committee will review
regulatory compliance reAuirements of the b
of directors of ban!s, ,udge what can
rationalised and where reAuirements n
enhancements, e(amine the wor!ing of
boards, including whether adeAuate time is b
devoted to issues of strategy, growth, govern
and ris! management. 0he committee will rev
central ban! regulatory guidelines on b
ownership, ownership concentration
representation on the board, analyse
representation to see whether the boards
the appropriate mi( of capabilities and neces
independence to govern the institution,
investigate possible conflicts of interest in b
representation, including among ow
representatives and regulators. 0he Comm
will also assess and review the 4fit and pro
criteria for all categories of directors of ba
including tenor of directorship, b
compensation guidelines and any other i
relevant to the functioning of the boards and
governance they e(ercise. 0he Committee wi
headed by &.;. aya!, former Chairman and
of "(is Ban!.
=! CB-/ clarifies on /-S on ser>ice #a8%
not be deducted at source on the service
component on payments madeFdue to a resi
payee. 0his will be allowed only in cases w
the service ta( component comprised in
amount payable to a resident is indic
separately in the contract between the payer
the payee. )n such situation, ta( has to
deducted on the amount paidFpayable wit
including the service ta( component.
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el may loo! at the merits
e commodities futures
e aspect of inflation
till early 7222 banned
utures. But progressively
ities were permitted for

41? of >al"e of
allowed ban!s to lend
gold ,ewellery, thereby
field for them vis+R+vis
can also lend up to @3
f pledged gold ,ewellery
r cent. By allowing ban!s
re against the pledge of
al ban! may be trying to
e unorganised sector in
ernance of )ank
tee will review the
Auirements of the board
, ,udge what can be
re reAuirements need
the wor!ing of the
er adeAuate time is being
tegy, growth, governance
he committee will review
y guidelines on ban!
ncentration and
e board, analyse the
hether the boards have
apabilities and necessary
rn the institution, and
flicts of interest in board
ing among owner
ulators. 0he Committee
iew the 4fit and proper8
s of directors of ban!s,
directorship, board
s and any other issue
ng of the boards and the
e. 0he Committee will be
rmer Chairman and C'9
ice #a8% 0a( need
urce on the service ta(
madeFdue to a resident
ed only in cases where
nent comprised in the
resident is indicated
t between the payer and
ta( has to be
t paidFpayable without

&<! IndiaAE0 free #rade pac# Blik
0he 'uropean .nion is )ndia8
&! Merc(an#in:@ eli:i)le for s(
per RB), short+term credit e
suppliers8 credit or buyers8 cred
for intermediary trade
merchanting. -erchanting or in
transaction involves purchase o
residents from non+residents a
them to another non+resident di
goods touching )ndian ports.
transactions will include the
e(port leg *etter of Credit by a b
deal in foreign e(change, as in t
&&! -ip in food prices eases inf
lo$ a# 2!2? in -ecem)
articles fell =.< per cent month
primary articles were down 3 pe
&*! CA- #o )e aro"nd D1< )
-inister &. Chidambaram, the
deficit $C"#% for 721:+1< shou
billion, down from nearly M5
previous year.
&.! 3o># :ran#s CBI more financ
Centre has told the Supreme Co
#irector will be given the ran!
Secretary with more financial a
#irector could now approve pro
crore in a year. 0he #irector w
hand to appoint consultants an
on contract in the investigating
&1! NC-EX la"nc(es :old con#
0he ational Commodity #eri
has launched gold+hedge con
mimic the international
considering other charges such
local ta(es and premiums.
charges will ma!e the contr
compared with the convention
thus leading to lower margin re
effect help to increase mar!et pa
&2! RBI #i:(#ens norms #o red"c
#o "nA(ed:ed forei:n c"rren
to introduce incremental provis
reAuirements for ban!s8 e(po
with unhedged foreign currenc
"pril 1, 721<. .nhedged
de pac# Blikely )y early &<1@%
ean .nion is )ndia8s biggest trading
i)le for s(or#A#erm credi#6 "s
term credit either by way of
redit or buyers8 credit will be available
mediary trade transactions or
g. -erchanting or intermediary trade
involves purchase of goods by )ndian
residents and then reselling
resident directly without the
hing )ndian ports. 0he merchanting
s will include the discounting of
etter of Credit by a ban! authorised to
ign e(change, as in the case of import
s eases infla#ion #o 1Amon#(
n -ecem)er% &rices of food
l =.< per cent month+on+month, while
ticles were down 3 per cent.
d D1< )6 "ccording to Finance
Chidambaram, the current account
1< should be around M32
wn from nearly M55 billion in the
ore financial a"#onomy% 0he
told the Supreme Court that the CB)8s
the ran! of a /overnment
ith more financial autonomy. 0he CB)
uld now approve pro,ects worth Rs 13
year. 0he #irector will be given a free
point consultants and employ people
in the investigating agency.
:old con#rac# for (ed:ers%
al Commodity #erivatives '(change
hedge contract which will
e international prices without
other charges such as customs duty,
s and premiums. '(cluding other
ill ma!e the contract value lesser,
with the conventional gold contracts,
g to lower margin reAuirement and in
to increase mar!et participation.

s #o red"ce )anks@ e8pos"re
ei:n c"rrency% RB) has decided
e incremental provisioning and capital
ts for ban!s8 e(posures to entities
ged foreign currency e(posures from
.nhedged foreign currency

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e(posures $.FC's% of corporates are an are
concern not only for individual corporates
also for the entire financial system.
&4! Employees@ Pro>iden# F"nd #o fe#c( 5
Central Board of 0rustees $CB0% of the 'mplo
&rovident Fund 9rganisation $'&F9% h
recommended to the /overnment 5.@3
rate of interest for 721:+1< to its subscriber
against 5.3O last year.
&5! Aad(aar enrolmen# #o co>er 2< crore ci
soon6 0he .niAue )dentification "uthority
)ndia $.)#")% has said that it would comp
issuing =2 crore "adhaar numbers i
three+four months, from 33 crore at present.
&=! Ro":( ride a(ead for ins"rance We) po
>eb aggregators, that is, >eb sites that com
and provide information on policies of var
insurers, will have to face tighter regula
norms. 0he new regulations rolled out by
)nsurance Regulatory and #evelopment "utho
do not allow these aggregators to dis
information pertaining to other pro
categories, such as loans, deposits and mu
funds $which are revenue+generators at pres
or display advertisements or tie+ups with so
media sites. )n a bid to ensure that they dis
only factual information, the regulator
disallowed >eb portals from showing rat
ran!ings, endorsements or listing of bestsel
0he )R#" has also introduced a foreign d
investment limit at 7= per cent for ownersh
>eb aggregators.
*<! SBI #o o"#so"rce opera#ions of some A
0he State Ban! of )ndia $SB)% has plan
outsource the management of some of its "0-
has called for a ReAuest for &roposal $RF&% f
vendors to manage about @,5<: cash dispen
$"0-s%. SB) had :7,@@@ "0-s as at
September 721:. )t has e(panded its netw
steadily in the past few years, adding abo
third of its networ! $about 11,222 "0-s% in
past 15 months.
*! Piped :as7 CN3 likely #o cos# more from
0he prices of piped coo!ing gas, transporta
fuel C/, and electricity generated from gas c
go up, as the /overnment is set to announce
new price for domestically produced ga
-arch. 0he /overnment on ;anuary 12
notified the new gas pricing policy that woul
applicable to all domestically produced nat
gas from "pril 1 for the ne(t five years. 0he p
could range between M@ and M5 a unit w
would almost be double the current rates. '
dollar increase in natural gas price results
hi!e of about Rs 7.=2 a unit for piped natural
| www.careerpower.in | www.ca
rporates are an area of
dividual corporates but
#o fe#c( 5!41?%
s $CB0% of the 'mployees
nisation $'&F9% have
vernment 5.@3 per cent
1< to its subscribers as
2< crore ci#iEens
ntification "uthority of
that it would complete
ar numbers in the ne(t
33 crore at present.
ce We) por#als%
, >eb sites that compile
n on policies of various
face tighter regulatory
tions rolled out by the
d #evelopment "uthority
aggregators to display
to other product
s, deposits and mutual
generators at present%,
ups with social+
ensure that they display
on, the regulator has
from showing ratings,
or listing of bestsellers.
oduced a foreign direct
er cent for ownership of
of some A/Ms%
dia $SB)% has plans to
nt of some of its "0-s. )t
or &roposal $RF&% from
t @,5<: cash dispensers
@@ "0-s as at end+
s e(panded its networ!
years, adding about a
out 11,222 "0-s% in the
ore from April%
!ing gas, transportation
generated from gas could
t is set to announce the
ically produced gas in
nt on ;anuary 12 had
ing policy that would be
tically produced natural
ne(t five years. 0he price
@ and M5 a unit which
rent rates. 'very
al gas price results in a
nit for piped natural gas,
Rs : a unit for C/, and 32 pai
for electricity at the retail end.
is measured in standard cubic
*&! NELP X $ill offer "niform
reso"rces% *ifting all restriction
&etroleum N atural /as, in th
the oil and gas bloc!s auction
allow e(plorers to hunt for all !
K oil, gas, coal bed methane,
the country has been offering e
under specific policies6
*icensing &olicy $'*&% for oil
&olicy for coal bed methane.
**! Bank s#aff can claim )enefi#
from ser>ice6 0he Supreme Co
a ban! employee can clai
encashment of leave even wh
service. 0he case pertained to
claims of late S.K. Kool who w
service 4as a measure of punish
*.! Work on -/C7 3S/ co
&arthasarathi Shome, "dvise
Finance -inister, the .nion Fin
completed the nitty+gritty on
0a(es Code $#0C% and the /ood
$/S0%. For /S0 to be impl
clearance from the States is also
*1! -ec e8por# :ro$#( slo$s
e(ports grew at a sluggish :.3 p
billion in #ecember 721: c
corresponding year+ago period
e(port growth, the trade defici
dropping to M=7.@@ billion in
compared with M?=.1< billion in
0his was largely because of the
gold and silver imports, which
per cent to M1.@ billion after va
were put in place. 9verall, im
month declined by 13.73 per
*2! 3o># no#ifies ne$ :as pric
/overnment has notified the
policy that would be appli
produced natural gas from "p
five years. However, Reliance
foreign partners B& and i!o
for C/, and 32 paise a unit increase
ity at the retail end. &iped natural gas
d in standard cubic metre and C/ in
fer "niform licence for all
*ifting all restrictions, the -inistry of
N atural /as, in the 12th edition of
gas bloc!s auction, has proposed to
rers to hunt for all !inds of resources
coal bed methane, or shale. 0ill now
has been offering e(ploration bloc!s
ecific policies6 ew '(ploration
olicy $'*&% for oil and gas, and CB-
oal bed methane.
im )enefi#s e>en on remo>al
6 0he Supreme Court has ruled that
mployee can claim pension and
t of leave even when removed from
e case pertained to the denial of the
ate S.K. Kool who was removed from
of punishment8 by Ban! of
7 3S/ comple#ed6 "s per
thi Shome, "dviser to the .nion
nister, the .nion Finance -inistry has
gritty on both the #irect
$#0C% and the /oods and Services 0a(
/S0 to be implemented, further
rom the States is also reAuired.
$#( slo$s #o *!1?% )ndia8s
w at a sluggish :.3 per cent to M7=.:<
#ecember 721: compared to the
ago period. #espite the low
wth, the trade deficit stayed on leash
o M=7.@@ billion in #ecember 721:
with M?=.1< billion in #ecember 7217.
rgely because of the continued fall in
ilver imports, which declined by =5.:
M1.@ billion after various restrictions
in place. 9verall, imports during the
lined by 13.73 per cent to M:=.<5

$ :as price mec(anism% 0he
t has notified the new gas pricing
would be applicable to all domestically
atural gas from "pril 1 for the ne(t
However, Reliance )ndustries and its
rtners B& and i!o Resources in the

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K/+#= bloc! would have to submit a b
guarantee before they can avail themselves o
new price. 0he new gas pricing mechanism
suggested by a panel headed by &rime -inis
'conomic "dvisory Council Chief C. Rangar
has been approved by the Cabinet Committe
'conomic "ffairs $CC'"%.
*4! Bank acco"n#s for all can )e ac(ie>ed #(
Aad(aar6 "ccording to achi!et -or, Chair
of the RB)+appointed financial inclu
committee, ban! accounts for all can be achie
in two years if ban!s can ride on the "ad
enrolment drive that is currently underway.
-or committee, has proposed that ban!s sh
provide every individual over 15 years a b
account by ;anuary 721=. )n )ndia, only :=
cent adults have ban! accounts.
*5! LIC la"nc(es ne$ ;ee>an Anand plan%
re+launched its I;eevan "nandJ plan
participating non+lin!ed plan which offers
attractive combination of protection and sav
0his product provides financial protection aga
death throughout the lifetime of the policyho
with a special feature wherein it offers cove
whole life even after payment of
*=! PreApaid ins#r"men# pro>iders can )e #"
in#o )anks6 "ccording to achi!et
Chairman of the RB)+appointed financial inclu
committee, payment ban!s can be created
converting the e(isting pre+paid instrument $
providers into ban!s. 0he committee
recommended setting up of specialised paym
ban!s to provide payment services and dep
products to small businesses and low
households. 0here are 7@ such &&)s in
.<! /o pro#ec# lenders7 mor#:a:e re:is#ry #o
more asse#s% Ban!s and lending institutions
soon be reAuired to file with a central registr
information on loans sanctioned for
,ewellery, plant and machinery, corporate br
and logos. " legal wor!ing group set up
C'RS") and )nternational Finance Corpora
under the chairmanship of -. R. .mar,i, C
*egal "dvisor, )ndian Ban!s8 "ssociation,
recommended that the scope of C'RS")
e(panded to cover movable assets, tangibles
intangibles. C'RS") $Central Registry
Securitisation "sset Reconstruction and Secu
)nterest of )ndia%, a state+owned entity, curre
operates a central registry with w
information on all eAuitable mortgages is file
lending institutions. 0his legal wor!ing group
also recommended to the Finance -inistry
| www.careerpower.in | www.ca
ave to submit a ban!
n avail themselves of the
s pricing mechanism, as
aded by &rime -inister8s
ncil Chief C. Rangara,an,
e Cabinet Committee on
c(ie>ed #(ro":(
achi!et -or, Chairman
d financial inclusion
ts for all can be achieved
an ride on the "adhaar
urrently underway. 0he
osed that ban!s should
l over 15 years a ban!
=. )n )ndia, only := per
nd plan% *)C has
an "nandJ plan, a
plan which offers an
f protection and savings.
ancial protection against
etime of the policyholder
herein it offers cover for
payment of maturity
rs can )e #"rned
g to achi!et -or,
ointed financial inclusion
n!s can be created by
paid instrument $&&)%
0he committee had
of specialised payment
ent services and deposit
nesses and low+income
7@ such &&)s in the
re:is#ry #o co>er
lending institutions may
with a central registry all
sanctioned for gold
hinery, corporate brands
r!ing group set up by
al Finance Corporation,
of -. R. .mar,i, Chief
Ban!s8 "ssociation, has
scope of C'RS") be
ble assets, tangibles and
$Central Registry of
onstruction and Security
owned entity, currently
registry with which
ble mortgages is filed by
legal wor!ing group has
e Finance -inistry that
the scope of C'RS") be e(pan
!inds of mortgage transactio
established with the main ob,ec
the lenders against fraudsFm
and preventing multiple finan
same asset $immovable proper
.! 3o># confiden# of mee#in:
D*&1 )illion% 0he Comme
confident of meeting the e(po
billion this fiscal with most sec
such as pharmaceuticals and g
doing well.
.&! Crisil sees loss of . million
sec#or o>er ne8# 2 years%
people will return to wor! in
activities in the period betwee
non+farm ,obs will li!ely vanis
slow economic growth and
according to ratings agency
pro,ections come true, this will
of a trend seen in the previous
between FE 7223+17 that saw a
farm+related ,obs.
.*! Offs(ore $ind ener:y a:en
-inistry of ew and Renewabl
is ma!ing efforts to set up a
>ind 'nergy "gency to e(plore
potential in the offshore areas.
..! 3o># #o clearly define dire
0he /overnment is wor!ing on
for multi+layer mar!eting and d
foreign direct investment $F#)%
ambiguities on the legal s
companies operating in the s
selling industry in )ndia is va
crore and is growing at over
annum. )n multi+layered di
company distributors sponsor n
turn, bring in more suppliers.
earned on the basis of products
distributors and their sponsor
the F#) policy is silent
mar!eting and direct selling, su
the ris! of being clubbed with
and pyramid schemes and
under the &riCe Chit and -one
of C'RS") be e(panded to cover all
mortgage transactions. C'RS") was
with the main ob,ective of protecting
s against fraudsFmisrepresentations
nting multiple financing against the
$immovable property in the current
of mee#in: e8por# #ar:e# of
0he Commerce -inistry is
f meeting the e(port target of M:73
fiscal with most sectors, e(cept some
icals and gems N ,ewellery,
f . million ,o)s in nonAfarm
# 2 years% "bout 17 million
l return to wor! in farms or related
n the period between FE 721:+1? as
,obs will li!ely vanish in thin air due to
omic growth and policy paralysis,
to ratings agency Crisil. )f the
come true, this will mar! the reversal
een in the previous seven+year period
17 that saw a loss of :@ million

ner:y a:ency on cards% 0he
ew and Renewable 'nergy $-R'%
efforts to set up a ational 9ffshore
gy "gency to e(plore wind generation
the offshore areas.
ine direc# sellers for F-I%
ment is wor!ing on a clear definition
yer mar!eting and direct selling in the
ect investment $F#)% policy to remove
s on the legal status of foreign
operating in the sector. 0he direct
ustry in )ndia is valued at Rs @,222
is growing at over 12 per cent per
layered direct selling, the
istributors sponsor new sellers who, in
in more suppliers. Sales credits are
he basis of products sold by the main
s and their sponsored vendors. Since
policy is silent on multi+layered
and direct selling, such companies run
being clubbed with fraudulent ponCi
id schemes and getting penalised
&riCe Chit and -oney Circulation "ct,

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.1! Adi#ya Birla :ro"p is #op corpora#e donor #o
Con:7 B;P% "ccording to "ssociation of
#emocratic Reforms $"#R%, business houses
were the biggest donors to political parties,
accounting for 5@ per cent of their total
contribution from !nown sources. 9ver the last
eight years, business houses donated Rs :@?
crore to political parties. 0he donations were
made by companies across sectors, including
manufacturing, power, oil, mining and real estate.
.2! Soon7 )ank c"s#omers $ill :e# li>e >ideo
assis#ance% Some ban!s li!e .nion Ban! of )ndia,
Ban! of Baroda, "ndhra Ban! are preparing to
introduce interactive televisions which will guide
customers and help resolve their issues. 0hese
will be connected live to a central studio, where
ban! personnel will be available round+the+cloc!
to interact with customers.

.4! SEBI no#ifies norms for por#folio in>es#ors%
0he Foreign &ortfolio )nvestor $F&)% Regulations
formed on the recommendations of the K.-.
Chandrase!har Committee on rationalising
investment routes and monitoring foreign
portfolio investments has been notified. 0he
regulations merge foreign institutional investors,
sub+accounts and Aualified foreign investors into
a single investor class called F&). S'B) has
decided to do away with prior direct registration
of F))s and sub+accounts. 0his would be done by
designated depository participants authorised by
the regulator and would be sub,ect to !now+your+
client compliance. F&)s have been divided into
three categories. 0hey would receive the same ta(
treatment as F))s. F))s and DF)s that are already
registered would be deemed to be F&)s until their
registration e(pires. F))s are allowed to buy and
sell securities on payment of conversion fees till
either the their F))Fsub account registration
e(pires or a certificate of registration as F&) is
obtained. However, DF)s have been given one
year to re+register as F&)s.
.5! <<? F-I in p(arma s#ays% )ndia will continue
to allow 122 per cent Foreign #irect )nvestment
$F#)% in e(isting pharmaceutical companies.
#omestic companies selling their facilities or
operations to foreign players, however, will not
be barred from starting a fresh venture in the
same area as the Inon+competeJ clause will not
apply in deals e(cept in special cases. 0he #)&&
had sought reduction of F#) limit for brownfield
pharma pro,ects from 122 per cent to <? per cent
in Icritical88 areas as it feared that acAuisition of
)ndian companies could vitally affect availability
and affordability of generic $off+patent%
.=! IR-A c(ief )a#s for sin:le prod"c# for all
ins"rance needs% "ccording to 0.S. Bi,ayan,
Chairman, )nsurance Regulatory and
#evelopment "uthority, a single product covering
all basic needs of insurance will help increase the
reach of insurance.
1<! 'eal#( co>er7 pension plans #o dri>e :ro$#( in
ins"rance sec#or% "ccording to an "ssocham+
'rnst and Eoung Report, Health insurance and
pension plans will drive growth in the )ndian
insurance industry. However, the distribution
and claim management would continue to be
ma,or challenges.
1! Co"r# order p"#s spoke in )anks@ loan
reco>ery process in nonAme#ros% "s per
Section 1< of the Sarfaesi "ct, where the
possession of any secured assets is reAuired to be
ta!en by the secured creditor the secured
creditor may, for the purpose of ta!ing
possession or control of any such secured asset,
reAuest, in writing, the Chief -etropolitan
-agistrate or the #istrict -agistrate within
whose ,urisdiction any such secured asset or
other documents relating thereto may be situated
or found, to ta!e possession thereof. ,0he -adurai
Bench of the -adras High Court observed that
secured creditors in metropolitan areas could
approach either the Chief -etropolitan

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-agistrate or #istrict -agistrate but cannot
approach Chief ;udicial -agistrate for relief under
the S"RF"'S) "ct.
1&! RBI (ikes NBFCs@ :old loan limi# #o 41? of
>al"e% BFCs can now give up to @3 per cent, up
from =2 per cent, of the value of the gold
,ewellery pledged as loan. )n -arch 7217, the RB)
had directed BFCs not to give more than =2 per
cent of the value of gold ,ewellery pledged in view
of the rapid pace of their business growth and the
nature of their business model, which has
inherent concentration ris! and is e(posed to
adverse movement of gold prices.
1*! -IPP seeks s#ake(olders@ >ie$s on F-I in eA
commerce% 0he e(isting policy does not allow
F#) in business+to+consumer $B7C% e+commerce
activities. But 122 per cent F#) is allowed in
business+to+business $B7B% e+commerce and in
the mar!et place model under which the e+
retailer does not sell directly to consumers but
provides a platform to other sellers.
1.! E>ery ad"l# s(o"ld (a>e )ank acco"n# )y ;an
&<26 "ccording to RB) appointed achi!et -or
Committee on Comprehensive Financial Services
for Small Businesses and *ow+)ncome
Households, every resident should be issued a
.niversal 'lectronic Ban! "ccount automatically
at the time of receiving their "adhaar number by
a high Auality, national, full+service ban!. "n
instruction to open the ban! account should be
initiated by the .niAue )dentification "uthority of
)ndia upon the issuance of an "adhaar number to
an individual over the age of 15. By ;anuary 1,
721=, the number and distribution of electronic
payment access points would be such that every
resident would be within a 13+ minute wal!ing
distance from such a point anywhere in the
11! Crea#e one a:ency #o redress all c"s#omer
complain#s6 0he Committee on Financial Services
has suggested that a unified Financial Redress
"gency $FR"% across all financial products and
services should be created by the -inistry of
Finance to solve consumer complaints within :2
days. 0he FR", which will in turn coordinate with
the respective regulator, should have a presence
in every district in the country and customers
should be able to register complaints over the
phone, using te(t messages, internet, and with the
financial services provider directly. 0he provider
should then forward the complaint to the
redressal agency and customers should have their
complaints resolved within :2 days of
registration of the complaint with the FR".
12! Specialised )anks for lo$Aincome (o"se(olds6
0he RB)+appointed committee on financial
inclusion has recommended that the central ban!
should set up specialised ban!s called &ayments
Ban! to provide payment services and deposit
products to small businesses and low+income
households. Since the new ban! will be dealing
with poor customers, such a ban! must be
allowed to accept a ma(imum deposit of not more
than Rs 32,222. Such a ban! will earn from the
payment services it offers, such as money
transfers and online payments, as well as by
deploying the deposits in secure government
securities $/+secs%. )n order to protect the money
of the poor customer, such a ban! will not be
allowed to lend in the mar!et.

14! Priori#y lendin: #ar:e#s may )e re>ised )ased
on sec#ors7 dis#ric#s% 0o enable greater regional
and sectoral specialisation among ban!s, RB) may
revise the priority sector lending $&S*% targets
and reAuire ban!s to meet an ad,usted &S* target
of 32 per cent against the current reAuirement of
<2 per cent.
15! Se# "p S#a#e finance re:"la#ory panel% 0he
Committee on Comprehensive Financial Services
for Small Businesses and *ow+)ncome
Households has suggested that a State Finance
Regulatory Commission $SFRC% could be created
into which all the e(isting State /overnment+level
regulators could be merged. Functions such as the
regulation of non+government organisations,

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microfinance institutions and local mo
services business could be added on to the SF
1=! Bank desi:n F (oriEon#al G >er#ical
committee on financial inclusion has come
with two broad designs for the ban!ing syste
the country K the HoriContally #ifferenti
Ban!ing System $H#BS% and the Berti
#ifferentiated Ban!ing System $B#BS%. )n H
design while all configurations are deposit
the variations between them are on account o
the ways in which they originate ris!s
transmit them throughout the systemH and
their siCe and focus K whether regiona
sectoral. 0he H#BS has si( design categorie
national ban! with branchesH national ban!
agentsH regional ban!H national K
ban!H national+wholesale ban!H and natio
infrastructure ban!. 0he rational for B#B
usually lin!ed to niche capabilities such as cr
under+writing for specialised business segm
or networ! management in the case of paym
0he H#BS has five design categories K
networ! operatorH payments ban!H full
ban!H wholesale consumer ban!H and whole
investment ban!.
2<! CA3 can a"di# pri>a#e #elcos% 0he #elhi
Court has ruled that the Comptroller and "ud
/eneral can audit revenues of private compa
if they have an impact on /overnment8s incom
2! Ser>ices PMI do$n for si8#( consec
mon#(% 0he HSBC &-) )nde( shran! to <=
#ecember from <@.7 in ovember. " rea
above 32 indicates growth while anything be
32 denotes a contraction.
2&! FinMin #o reAe8amine capi#al con#rols7 fo
por#folio in>es#men# norms% 0he -inistry
e(tended the term of the Sahoo Committee, w
recently submitted its recommendations
depository receipts. )n the second phase,
nine+member panel K headed by -. S. Sahoo
been as!ed to review the framewor! on e(te
commercial borrowings $'CBs% and for
currency convertible bonds $FCCBs%. Bes
reviewing the framewor! of direct listin
)ndian companies abroad, the panel will loo
dual listing of corporates.
2*! Banks approac( RBI #o (ike A/M #ransa
fee% Ban!s have mooted the charge on
transactions to pay for the increased secu
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ns and local money
e added on to the SFRC.
G >er#ical% 0he
inclusion has come up
or the ban!ing system in
Contally #ifferentiated
S% and the Bertically
ystem $B#BS%. )n H#BS
ations are deposit+ta!ing,
em are on account of6 $i%
ey originate ris!s and
ut the systemH and $ii%
whether regional or
si( design categories K
chesH national ban! with
K consumer
!H and national+
e rational for B#BS is
apabilities such as credit
lised business segments
in the case of payments.
K payments
ents ban!H full+service
er ban!H and wholesale

0he #elhi High
Comptroller and "uditor
ues of private companies
/overnment8s income.
8#( consec"#i>e
)nde( shran! to <=.@ in
ovember. " reading
th while anything below
con#rols7 forei:n
0he -inistry has
Sahoo Committee, which
recommendations on
the second phase, the
eaded by -. S. Sahoo, has
e framewor! on e(ternal
s $'CBs% and foreign
onds $FCCBs%. Besides
r! of direct listing of
d, the panel will loo! at
A/M #ransac#ion
ed the charge on "0-
the increased security
costs at "0-s, put in place
/overnments, following the gri
woman inside an "0- !ios!
ovember. Currently, there is
number of transactions that
underta!e at his own ban!8s "0
country has about 1.<2 la!h
ban!s will roughly see an outg
crore a month on account of p
2.! Company La$ /ri)"nal
-inistry has invited application
posts of technical member
Company *aw "ppellate 0r
.nder the new company law,
appeals against the orders
Company *aw 0ribunal, an o
being set up for implementatio
in )ndia.
21! Early $arnin: sys#em #o (e
s#ressed loans% Faced with a
State Ban! of )ndia plans to
warning system to identify sign
loans so that it can act imme
them. 0he move comes in the w
gross non+performing assets in
<2 per cent to Rs =<,72= cro
September 721: against Rs <?
end of September 7217.
22! SEBI names * C"alified cl
sec"ri#ies marke#% 0he capital
S'B) has said that ational S
Corporation *td $SCC*%,
Corporation *td $)CC*% and
Corporation *td $-CS
Aualified central counterpartie
)ndian securities mar!et.
are designated as -ar!e
)nstitutions for oversight co
importance in securities mar!et
S'B). 0hey are also sub,ec
regulations that are based
9rganisation of Securities Com
&rinciples for Financial -ar!e
$&F-)s%. 0hese principles were
in "pril 7217 to enhance the sa
in payment, clearing, etc.
0-s, put in place by many State
ts, following the grievous attac! on a
ide an "0- !ios! in Bangalore last
Currently, there is no cap on the
f transactions that a customer can
at his own ban!8s "0-. /iven that the
s about 1.<2 la!h "0-s at present,
roughly see an outgo of about Rs 3=2
account of providing security
ri)"nal6 0he Corporate "ffairs
s invited applications for filling up two
technical member in the ational
*aw "ppellate 0ribunal $C*"0%.
new company law, C*"0 will hear
gainst the orders of the ational
*aw 0ribunal, an overarching body
p for implementation of company law
s#em #o (elp SBI Eero in on
Faced with a pile of bad loans,
)ndia plans to set up an early+
stem to identify signs of stress in such
at it can act immediately to resolve
move comes in the wa!e of the ban!8s
performing assets increasing by about
t to Rs =<,72= crore at the end of
721: against Rs <?,727 crore at the

"alified clearin: (o"ses for
0he capital mar!et regulator
aid that ational Securities Clearing
n *td $SCC*%, )ndian Clearing
n *td $)CC*% and -CS+SS Clearing
n *td $-CS+SSCC*% are the only
entral counterparties $DCC&s% in the
urities mar!et. Clearing Corporations
nated as -ar!et )nfrastructure
for oversight considering its systemic
in securities mar!ets regulated by the
y are also sub,ect to rules and
that are based on )nternational
n of Securities Commissions8 $)9SC9%
for Financial -ar!et )nfrastructures
hese principles were issued by )9SC9
17 to enhance the safety and efficiency
, clearing, etc.

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24! -espi#e le:al c(allen:es7 3o># mo>es a(ead on
Company La$ /ri)"nal% 0he /overnment is
moving ahead with the formation of the ational
Company *aw 0ribunal $C*0%, an overarching
body being set up for implementing most
provisions of the new company law, even as the
outcome of a petition filed before the Supreme
Court by the -adras Bar "ssociation is awaited.
25! RBI panel enlis#s & adminis#ra#ors for se##in:
financial )enc(marks% "ccording to an RB)
committee, the Fi(ed )ncome -oney -ar!et and
#erivatives "ssociation of )ndia $F)--#"% and
the Foreign '(change #ealers "ssociation of )ndia
$F'#")% may be designated as administrators for
all rupee interest rate and foreign e(change
benchmar!s, respectively. F)--#" is a voluntary
mar!et body for the bond, money and derivatives
mar!ets. F'#") is a self+regulatory body, whose
ma,or activities include framing of rules
governing the conduct of inter+ban! foreign
e(change business and liaison with the RB) for
reforms and development of the fore( mar!et.
Financial benchmar!s are primarily used for
pricing, valuation and settlement purposes in
financial contracts.
2=! /o )oos# s"pply7 3o># rela8es norms for me:a
po$er pro,ec#s% 0he /overnment has decided to
ease the -ega &ower &olicy in a move that will
help nearly 73 pro,ects with investments of more
than Rs 1.= la!h crore. 0his is e(pected to
increase power availability in the country and
also ensure that consumers are charged
reasonably for electricity supply. 0he amendment
allows pro,ect developers to tie up for only =3 per
cent of generation capacity through competitive
bidding with the State distribution utilities
against the earlier norm of 53 per cent. 0he
amendment allows the developer to sell up to :3
per cent of installedFnet capacity under regulated
tariff as per the specific host State policy.
4<! In FH*7 e8por# marke#s remain almos# same6
"ccording to statistics put out by RB), the
destination of )ndia8s e(ports during the first half
of the current fiscal remained broadly the same as
the previous year. )ndia e(ported goods worth
M:22 billion in fiscal 721:. )n the first si( months
of the current fiscal, e(ports have nearly touched
M137 billion. "bout a third of the e(ports goes to
9'C# countries, which include the 'uropean
.nion, orth "merica $.SFCanada%, "ustralia and
;apan. "bout a fifth of the e(ports goes to 9&'C
countries $)ndonesia, )ran, )raA, Kuwait, the ."'
and Saudi "rabia%. Forty+three per cent of the
e(ports were sent to 4other developing8 countries
$such as those in the S""RC region, other parts of
"sia and "frica% in the first si( months ending
September 721:.
4! Infla#ion7 ,o) crea#ion are #(e c(allen:es for
3o>#6 "ccording to &-, there are three main
challenges on economic front G creating ,obs in
the manufacturing sector, controlling the
persistent inflation, and curbing corruption.
4&! Ca)ine# nod for con>ersion of pref s(ares in#o
eC"i#y in * )anks% 0he .nion Cabinet has given
its nod for conversion of perpetual non+
cumulative preference shares held by the
/overnment in three public sector ban!s K
)ndian Ban!, .C9 Ban! and Bi,aya Ban! K into
eAuity shares. &C&S amounting to Rs <22 crore,
Rs 1,57: crore and Rs 1,722 crore in )ndian Ban!,
.C9 Ban! and Bi,aya Ban!, respectively, will be
converted into eAuity in favour of Central
4*! 3o>ernmen# cancels Rs *71<<Acr c(opper deal
$i#( A:"s#aWes#land% 0he /overnment has
scrapped the controversial Rs :,322+crore deal to
purchase 17 helicopters from "gusta>estland.
0he deal was cancelled following allegations of
unethical dealings by )talian company
Finmeccanica in the sale by its "nglo+)talian
subsidiary "gusta>estland to the -inistry of
#efence. )t is alleged that !ic!bac!s were paid to
win the contract.

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4.! RBI seeks #a8man@s feed)ack on )ank licence
aspiran#s% RB) has as!ed the income+ta(
authorities information on si( issues related to
ta( compliance of the 73 groups that have applied
for starting a ban!. 0he issues include whether
the groups were sub,ected to any search and
seiCureFsurvey in the past five yearsH whether
any penalty was imposed for concealment of
particularsFfurnishing inadeAuate particulars of
incomeH whether the entities are facing any
prosecution proceedings under the )ncome+0a(
"ct andFor whether they were convicted for any
offence under the "ctH whether the entities have
filed their returns up+to+dateH whether any ta(
dues are outstandingH and whether the entities
are complying with the provisions relating to
deduction of ta( at source.
41! Ser>ice #a8 on ins"rance #akes effec#% From 1

;anuary 721<, the services related to insurance
li!e third+party administrators $0&"s%, bro!ers,
agents, insurance repositories, >eb aggregators,
referral entities and surveyors will be sub,ect to
service ta(.
42! Farm7 ind"s#rial sec#ors acco"n# for mos# of
#(e )ad loans6 "s per RB)8s Financial Stability
Report, gross non+performing assets $&"s% are
li!ely to go up to <.= per cent of total loans by
September 721< from <.7< per cent this
September K from Rs 1.=@+la!h crore to Rs 7.7?+
la!h crore. )n terms of gross &"s, agriculture has
the highest ratio at 3.3 per cent at end+September
721:. 0he sector is followed by industries at <.?
per cent. Share of retail loans in gross &"s stood
at 7.7 per cent, while restructured standard
advances to total advances were 2.: per cent at
end+September. &ublic sector ban!s have the
lowest share of the retail segment in their loans
portfolio K around 1=O.
44! Ca)ine# okays se##in: of 15 medical colle:es%
0he Cabinet Committee on 'conomic "ffairs
$CC'"% has approved the establishment of 35
new medical colleges which will be attached with
the e(isting district or referral hospitals.

MAR &<.

! India7 -")ai reac( air ser>ices pac#7 #o increase
sea#s )y 7<<<% 0he increase in the seats is to be
in three phases, e(tending up to -arch 7213.
&! -6 Saraff #o (ead ON3C% #K Saraff, -# of 9/C
Bidesh, will ta!e over as the new Chairman from
-arch 1. He will hold the post till September

*! IR-A eases norms #o red"ce a:en# a##ri#ion%
0he )nsurance Regulatory and #evelopment
"uthority $)R#"% has decided to remove
minimum persistency criteria $the minimum
number of policies sold by agents that have to be
renewed%, leaving it to the board of each life
insurer to have their own norms on persistency.
)n 7211, the )R#" had put in place a minimum
persistency rate of at least 32 per cent. *ast year
the )R#" had also waived off the condition of
fresh training for agents whose licences had
lapsed. Further, in a bid to attract more agents
into the life insurance industry, the regulator
reduced the cut+off percentage in the pre+
recruitment e(amination from 32 per cent to :3
per cent.
.! /iny deposi# collec#ors :e# a minim"m $a:e
(ike% 0he 0ribunal has ruled that on a monthly
collection of Rs. : la!h, a deposit collector should
get fallbac! wages of Rs. 5,222 and conveyance of
Rs. @32 a month. 9n a monthly collection of over
Rs. : la!h and up to Rs. 3 la!h, a deposit collector
will earn an incentive of : per cent. For a monthly
collection of over Rs. 3 la!h, a deposit collector
will earn an incentive of 7 per cent. 0he award
will be applicable retrospectively from ;uly 1?,
7223, the date when the ban!s were summoned
to appear before the 0ribunal. Currently, a

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deposit collector F agent gets fallbac! wage
Rs. @32 on a collection of Rs. @,322 per month
collections above Rs. @,322Fmonth, they ge
incentive of 7 per cent of the amount collecte
case a deposit collector mops up Rs. : la!h
month, he can ta!e home only Rs. =,=22 $ Rs.
as fallbac! wages plus Rs. 3,532 as incen
1! A8is Bank rolls o"# eA6HC acco"n# op
ser>ice% 0he customer can approach the ba
business correspondents, who will access
-icro"0- $a biometric handheld device% to o
an "adhaar+based account through e+KEC $!n
your+customer%. For the "adhaar+based e
mode of account opening, "(is Ban! has tie
with the ational &ayments Corporation of )
and the .niAue )dentification "uthority of )nd
2! /(ird par#y mo#or ins"rance ra#es likely
marke# dri>en )y yearAend% 0he rates are li
to go up from "pril this year, conseAuent t
)R#" proposal for rate hi!es of between 73
cent and 1:@ per cent. Currently, third p
motor insurance is the only segment w
premium rates are fi(ed by the insur
regulator. 0hird party liability premium r
have been going up for the last two years.
4! Lendin: ra#e for fres( loans rise fas#er
for e8is#in: ones6 "ccording to RB)8s Auar
data on >"*R, the weighted average lending
$>"*R% for fresh loans rose 3@ basis points f
11.<= per cent $in the "pril+;une period% to 1
per cent $in the ;uly+September period%.
>"*R for e(isting loans nudged up 11 b
points from 17.72 per cent to 17.:1 per cent.
5! Rs! *7<<<Acr PF deposi#s lyin: "nclaime
per the C"/ report, 5.3: per cent of the tot
5.33+crore accounts were inoperative as
-arch 7217. 0he number of such acco
Coomed to over @: la!h in 7211+17 from ove
la!h in 722=+2@.
=! 0ni#ed Bank of India c(ief C"i#s as )ad
crisis )oils o>er% "rchana Bhargava, C-#
.nited Ban! of )ndia $.B)%, opted for volun
retirement with effect from February
Bhargava8s resignation comes in the wa!e
surge in bad loans at .B), leading to a los
around Rs. 1,722 crore in the third Auarter. .
gross non+performing assets $&"s% ,umpe
Rs. 5,3<= crore in the 9ctober+#ecember Aua
$including a fresh slippage of Rs. :,1@7 crore%
of #ecember :1, 721:, .B)8s gross &"
12.57 per cent of total advances, one of
highest among )ndian ban!s.
| www.careerpower.in | www.ca
t gets fallbac! wages of
Rs. @,322 per month. For
322Fmonth, they get an
f the amount collected. )n
mops up Rs. : la!h per
only Rs. =,=22 $ Rs. @32
Rs. 3,532 as incentive
cco"n# openin:
can approach the ban!8s
s, who will access the
andheld device% to open
KEC $!now+
based e+KEC
g, "(is Ban! has tied up
nts Corporation of )ndia
tion "uthority of )ndia.
ra#es likely #o )e
0he rates are li!ely
year, conseAuent to an
hi!es of between 73 per
Currently, third party
e only segment where
(ed by the insurance
liability premium rates
e last two years.
rise fas#er #(an
rding to RB)8s Auarterly
ted average lending rate
ose 3@ basis points from
;une period% to 17.2:
eptember period%. 0he
s nudged up 11 basis
to 17.:1 per cent.
: "nclaimed% "s
per cent of the total of
ere inoperative as on
ber of such accounts
17 from over 73
"i#s as )adAloan
ana Bhargava, C-# of
B)%, opted for voluntary
t from February 72.
comes in the wa!e of a
leading to a loss of
n the third Auarter. .B)8s
ssets $&"s% ,umped to
#ecember Auarter
e of Rs. :,1@7 crore%. "s
B)8s gross &"s stood at
l advances, one of the
<! IA/ -ep# s(oo#s le##ers #o
0he Finance -inistry has st
identified 71.@3 la!h people for
ta( returns and letters have
individuals. 0he )ncome
identified these non filers on
business intelligence pro,ect
&ermanent "ccount umber $&
have not filed income ta( re
whom specific information is a
)nformation Return $")R%, Ce
Branch $C)B% data and 0#S $
Source% or 0CS $0a( Collected at
! Fer#iliser s")sidy may #o"c
&<.A1% Fertiliser subsidy is
to Rs. ?2,222 crore for the 721
:2 per cent more than the esti
interim budget. 0he estimate
carry+over from the current
demand for subsidy.
&! Banks as )rokers% Life Ins"
no firm >ie$6 0he *ife )nsura
ape( industryFconsultative bod
life insurers in the country.
Finance has as!ed public sector
compulsory insurance bro!era
13, 721<, which has howeve
abeyance. "s a corporate agent,
to sell products of a singl
company. But as a bro!er, it
policies of different insurers.
*! RBI panel #o e8amine rec
financial sec#or reforms%
constitute a committee to
recommendations of the
*egislative Reforms Commission
to capacity building in the ban!
e(amine if the members on ban
be certified K by way of say,
designed course which could be
for every individual before ap
board of a ban!. 0he committee
by / /opala!rishna, '(ecutive
Ban! of )ndia, has been
responsibility of identifying
reAuirements !eeping in view th
sector and what it should delive

le##ers #o 1<7<<< nonAfilers%
ce -inistry has stated that it has
1.@3 la!h people for not filing income
and letters have been sent to 32,222
0he )ncome+0a( #epartment
these non filers on the basis of a
intelligence pro,ect. 0his identifies
"ccount umber $&"% holders who
filed income ta( returns and about
ormation is available in "nnual
n Return $")R%, Central )nformation
)B% data and 0#S $0a( #educted at
0CS $0a( Collected at Source% returns.
y may #o"c( Rs! =<7<<< cr in
Fertiliser subsidy is estimated to rise
22 crore for the 721<+13 fiscal. 0his is
t more than the estimate made in the
dget. 0he estimate is based on the
from the current fiscal and new
s% Life Ins"rance Co"ncil (as
6 0he *ife )nsurance Council is an
tryFconsultative body representing 7<
rs in the country. 0he -inistry of
s as!ed public sector ban!s to ta!e up
y insurance bro!erage from ;anuary
has however, been !ept in
s a corporate agent, a ban! is allowed
oducts of a single life insurance
But as a bro!er, it can sell multiple
ifferent insurers.
amine recommenda#ions on
reforms% RB) has decided to
a committee to e(amine the
dations of the Financial Sector
Reforms Commission $FS*RC% relating
building in the ban!ing sector. )t will
the members on ban! boards need to
by way of say, an appropriately
urse which could be made mandatory
individual before appointment to the
ban!. 0he committee, which is headed
la!rishna, '(ecutive #irector, Reserve
)ndia, has been tas!ed with the
ity of identifying capacity building
ts !eeping in view the role of financial
what it should deliver.

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.! Weakenin: )ank )alanceAs(ee#s is a $orry6
0he )nternational -onetary Fund $)-F% has
cautioned )ndian authorities to Iclosely monitorJ
the deteriorating corporate financial position and
wea!ening ban! balance sheets of ban!s,
especially public sector ban!s. 0here is need to
strengthen prudential regulations of ban!s8 asset
Auality classification and concentration ris!s.
1! S#a#e Bank of India #o :o slo$ on (irin:6 0he
country8s largest lender, which used to hire
:2,222+:3,222 employees annually till a few
years ago, has slowed down fresh recruitments
since last year amid rising staff e(penses and
other concerns.
2! Indian )anks a)road see credi# :ro$#( rise
*!4?% "ccording to Reserve Ban! of )ndia8s
survey on international trade in ban!ing services,
)ndian ban!s operating overseas witnessed
higher credit growth compared to their foreign
counterparts operating in )ndia. "ccording to the
survey for 7217+1:, growth of credit e(tended by
)ndian ban!s8 branches operating abroad
increased by :1.@ per cent to Rs. 3,53,3@2 crore
$M 12@.@ billion%. Credit e(tended by foreign
ban!s operating in )ndia increased 7@.3 per cent
to Rs. :,2@,@22 crore billion $M3=.= billion%
during 7217+1:. #eposits mobilised by )ndian
ban! branches operating abroad increased <3.3
per cent to Rs. :,?:,2@2 crore $M@7.: billion%
during 7217+1:. )n case of foreign ban!s
operating in )ndia, deposit growth moderated to
:.7 per cent at Rs. 7,5:,312 crore.
4! 3o># #o #ake )ack coal )locks allo##ed #o 1<
companies% "ccording to the /overnment, bloc!s
that were not able to achieve the reAuisite
milestones have been de+allocated.
5! Parliamen# passes /elan:ana Bill% Both *o!
Sabha and Ra,ya Sabha have passed "ndhra
&radesh Reorganisation Bill, 721<, to create a
separate 0elangana State.
=! Rice e8emp#ed from ser>ice #a8% Rice was
originally e(empted from service ta( as it was
classified as agriculture produce. However, the
Finance -inistry later said that only paddy was
agriculture produce, while rice was a processed
item. By virtue of the definition of 4agricultural
produce8 in Finance "ct 7217, read with the
egative *ist, storage or warehousing of paddy
was e(cluded from the levy of service ta(. Rice
was not. Budget 721<+13 has proposed to e(empt
loading, unloading, pac!ing, storage and
warehousing of rice from service ta(.
&<! Banks can con#in"e as a:en#s of ins"rers6
)nsurance Regulatory and #evelopment "uthority
$)R#"% is renewing the corporate agency licences
of ban!s having tie+ups with insurers. "t present,
ban!s have a corporate agency arrangement with
insurance companies to sell insurance products.
.nder this arrangement, they are allowed to sell
products e(clusively of one life insurer, one non+
life insurer and a standalone health insurer. )R#"
has not yet set a deadline on when ban!s should
become insurance bro!ers. )n #ecember, the
Finance -inistry issued a notification as!ing
ban!s to become insurance bro!ers, whereby
they will sell policies of multiple insurers. 0his
move is aimed at creating a level+playing field for
non+ban! promoted insurance companies vis+R+
vis ban!+promoted insurance companies. -a,or
public sector and private sector ban!shave
promoted insurance companies. -ost of these
ban!s are not !een to become insurance bro!ers
as they have contractual obligations with ,oint
venture partners of insurance companies.
&! Infla#ion #"m)les #o 5Amon#( lo$ of 1!<1? in
;an% *ed by softening food prices, inflation as
measured by the >holesale &rice )nde( $>&)%
cooled to an eight+month low of 3.23 per cent in
;anuary. 0he >&) inflation in ;anuary is the
lowest since -ay 721: and significantly lower
than the @.:1 per cent figure in ;anuary 721:.
0his moderation comes on the heels of Consumer
&rice )nde( $C&)% inflation hitting a two+year low
of 5.@? per cent in ;anuary. 0here was, however,
no respite on the core inflation front, with the
rate inching up to : per cent in ;anuary from 7.5
per cent in #ecember 721:.
&&! SBI #$eaks reco>ery model% >ith bad loans
surging 7@ per cent year+on+year to touch Rs.
=@,@?? crore towards the end of #ecember, State
Ban! of )ndia has got into a 4non+performing asset
control8 mode, twea!ing its recovery model and
setting up committees to chec! further slippages.
&*! 3o># rakes in Rs! 272& cr in spec#r"m sale%
0he spectrum auction, which ended after 12 days
of intense bidding, has thrown up Bodafone,
"irtel and Reliance ;io as clear winners giving
these operators spectrum that can be used for
high+end data services using :/ and </
&.! Re:"la#or se#s se>enA)oard cap for
independen# direc#ors% )n a move to promote
good business practices, the S'B) board has
approved new corporate governance norms that
restrict the number of independent directors on a
company board, spell out whistleblower policies,
and institute chec!s on salaries of !ey managerial
persons, among other things. 0he board has now
revised its listing agreement, bringing it in line
with the reAuirement of the provisions of the

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Companies "ct, 721:. 0he new norms will c
into effect from 9ctober 1. .nder the new r
an individual can serve as an indepen
director on a ma(imum of seven li
companies. 0he Board also decided that i
individual is a whole+time director in a li
company, he can serve as an indepen
director in a ma(imum of three companies. "
if one has completed five years or more a
independent director, he will be eligible for
one more term of five years. -anag
remuneration will be decided by a compensa
committee headed by an independent directo
&1! Modera#ion in farm s"ppor# prices $il
ease infla#ion6 -oderation in agricult
support price will ensure that these prices
provide a baseline level of support when
farmer is in difficulty, without displacing ma
prices. Raising energy prices to mar!et levels
also lead to lower inflation over the med
term, the horiCon over which the RB) is tryin
contain inflation. 0he reason is that higher pr
will reduce e(cessive consumption, red
subsidies and fiscal deficits, and incent
investment and competition, even while allow
prices to be determined by an increasingly st
and plentifully supplied global mar!et for ene
&2! IIP con#rac#s <!2?I re#ail infla#ion eases
year lo$ in ;an% /rowth in industrial produc
remained negative for the third month in a
contracting 2.= per cent in #ecember 7
mainly due to the sluggish performance of
manufacturing sector. However, retail infla
for ;anuary 721<, eased to a two+year low of
per cent as against ?.5@ per cent in the prev
&4! Bi#coins are s#ill "nder #(e lens6 RB) /ove
Raghuram Ra,an has said the central ban
currently trying to understand virtual curren
and will come out with a more considered v
on it. )n #ecember, the RB) had cautioned u
holders and traders of virtual currencies a
potential financial, operational, legal
security+related ris!s they are e(po
themselves to. 0he /overnment has said crea
trading or usage of virtual currencies a
medium of payment are not authorised by
central ban! or monetary authority.
| www.careerpower.in | www.ca
he new norms will come
1. .nder the new rules,
ve as an independent
um of seven listed
also decided that if an
r in a listed
ve as an independent
f three companies. "lso,
ve years or more as an
will be eligible for ,ust
five years. -anagerial
cided by a compensation
independent director.

prices $ill (elp
ration in agricultural
e that these prices only
l of support when the
ithout displacing mar!et
ices to mar!et levels will
ation over the medium
hich the RB) is trying to
son is that higher prices
consumption, reduce
eficits, and incentivise
tion, even while allowing
by an increasingly stable
lobal mar!et for energy.
a#ion eases #o &A
in industrial production
e third month in a row,
nt in #ecember 721:,
gish performance of the
owever, retail inflation
year low of 5.@?
per cent in the previous
6 RB) /overnor
aid the central ban! is
rstand virtual currencies
a more considered view
RB) had cautioned users,
virtual currencies about
perational, legal and
they are e(posing
as said creation,
irtual currencies as a
not authorised by any
&5! /rade defici# (al>es in ;an"
sil>er impor#s% )ndia8s trade de
M?.?7 billion in ;anuary from M1
corresponding month last
/overnment succeeding in cutti
silver imports through higher i
other curbs. 0otal imports fe
year+on+year to M:=.3@ billion
cent drop in gold and silve
e(ports increased a modest
M7=.@3 billion over the correspo
year. " low trade deficit is nec
the current account deficit, and
to maintain a healthy balance of
current account deficit, on
wea!ens the domestic currency
foreign investors.
&=! Marked drop in complain
sellin: and reco>ery a:en#
annual report on the Ban! 9m
prepared by the Reserve Ban! o
against direct selling agents an
declined to :31 at the end of
1,@77 at the end of 7212+
*<! Mar"#i 5<< prod"c#ion s#op
largest carma!er -aruti SuC
production of its nearly three
car -aruti 522 with effect from
small car was being sold in non
two years. But with the stoppag
will now no longer be available
*! S":ar ind"s#ry calls for c(a
sc(eme% 0he )ndian sugar indu
/overnment to ease or remove
the proposed ban! loan scheme
to cane farmers. )n #ecembe
Cabinet Committee on 'cono
approved Rs. =,=22+crore intere
sugar industry and announced
cent interest subvention would
*&! Rs! < plas#ic no#e #o )e #rie
"bout 1billion Rs. 12 plasti
introduced on a trial basis in fi
-ysore, ;aipur, Shimla and B
field trial is e(pected to be launc
half of 721<.

>es in ;an"ary on fall in :old7
)ndia8s trade deficit fell by half to
n in ;anuary from M15.5@ billion in the
ing month last year, with the
t succeeding in cutting down gold and
rts through higher import duties and
s. 0otal imports fell 15.2@ per cent
ar to M:=.3@ billion due to a @@ per
in gold and silver imports, while
creased a modest :.@? per cent to
ion over the corresponding month last
trade deficit is necessary to contain
account deficit, and this in turn helps
a healthy balance of payments. " high
count deficit, on the other hand,
e domestic currency and !eeps away
complain#s a:ains# direc#
>ery a:en#s% "ccording to the
on the Ban! 9mbudsman scheme,
y the Reserve Ban! of )ndia complaints
ect selling agents and recovery agents
:31 at the end of 7217+1: against
"c#ion s#opped% 0he country8s
rma!er -aruti SuCu!i has stopped
of its nearly three+decade+old popular
522 with effect from ;anuary 15. 0he
as being sold in non+metros in the last
But with the stoppage of production, it
e available to the public.
alls for c(an:es #o )ank loan
he )ndian sugar industry has urged the
t to ease or remove !ey conditions of
ed ban! loan scheme to clear the dues
)n #ecember last year, the
ommittee on 'conomic "ffairs had
crore interest+free loan to the
stry and announced that the 17 per
st subvention would be borne by the
e #o )e #ried o"# in fi>e ci#ies%
llion Rs. 12 plastic notes will be
on a trial basis in five cities K Kochi,
ipur, Shimla and Bhubaneswar. 0he
e(pected to be launched in the second

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**! . more S#a#es iden#ified for Aad(aar
enrolmen#% "adhaar enrolment in four States K
.ttar &radesh, Bihar, Chhattisgarh and
.ttara!hand K will be carried out in addition to
enrolment by the Registrar /eneral of )ndia $R/)%.
"s of now, over 3@+crore "adhaar numbers have
been generated, facilitating the roll+out of the
#irect Benefits 0ransfer $#B0% scheme in select
districts. "t present, the #B0 scheme covers 75
Centrally+sponsored schemes in 171 districts.
*.! ;"s#ice Ma#("r #o (ead 4#( Cen#ral Pay panel%
0he /overnment has approved the composition
of the Seventh Central &ay Commission. 0he
Commission will be headed by former Supreme
Court ;udge "sho! Kumar -athur. 0he
Commission has been mandated to submit its
report in two years8 time and its
recommendations would be implemented from
;anuary 1, 721=.
*1! RBI releases Repor# of #(e Commi##ee on
Financial Benc(marks% 0he Committee was
headed by Shri &. Bi,aya Bhas!ar, '(ecutive
#irector, RB) to study various issues relating to
financial benchmar!s in )ndia.
*2! Repor# on Ena)lin: P6I in Paymen# Sys#em
Applica#ions6 RB) has released, the Report of the
0echnical Committee on 'nabling &ublic Key
)nfrastructure $&K)% in &ayment System
*4! Commi##ee #o e8amine FSLRC
Recommenda#ions6 RB) has constituted a
Committee headed by Shri /. /opala!rishna,
'(ecutive #irector, Reserve Ban! of )ndia to
e(amine issues relating to Capacity Building in
Ban!ing Sector as suggested by the Report of the
Financial Sector *egislative Reforms Commission
*5! Repor# of #(e /ec(nical Commi##ee on Mo)ile
Bankin:% RB) has released the TReport of the
0echnical Committee on -obile Ban!ingT which
was headed by Shri B. Sambamurthy, #irector,
)nstitute for #evelopment and Research in
Ban!ing 0echnology, to e(amine the
optionsFalternatives including the feasibility of
using encrypted S-S based funds transfer using
an application that can run on any type of handset
for e(pansion of mobile ban!ing in the country.

Impor#an# -a#a6 FE1< fiscal deficit seen at <.=O of
/#&H FE1< C"# li!ely to be M:3 bnH FE1< &lan
'(penditure at Rs <.@3 la!h crH FE1< e(ports pro,ected
at M:7= bnH Fore( reserves crossed M:22 bn
ReAprom"l:a#ion of ordinance #o )oos# Se)i
po$er6 0he Securities *aws $"mendment% 9rdinance,
721<, that see!s to empower the Securities N
'(change Board of )ndia $Sebi% to effectively chec!
illegal deposit ta!ing and &onCi schemes has been re+
promulgated. 0he ordinance, gives the legal bac!ing to
Sebi for powers to respond to the growing menace of
illegal deposit ta!ing and &onCi schemes. )t also
empowers the Sebi board to recall and enhance a
penalty imposed by the ad,udicating officer.
NRI remi##ances s"r:e #o D4!5 )n in &<*%
Remittances by non+resident )ndians grew =.<< per
cent between ;anuary and #ecember 721:, as
compared with last year, which is the highest since
7225. States li!e Kerala, -aharashtra and 0amil adu
have contributed nearly =2 per cent to the total
inflows during the year. 0his is 12 per cent of the total
global remittance of M@1 billion in 721:, estimated by
the >orld Ban!. Kerala remains the top recipient,
contributing :: per cent to the total remittances into
the country.
Re:"la#or for Coal Sec#or6 0he government has put
in place a Regulator for Coal sector, through an
e(ecutive order. 0he coal regulator will advise the
government on principles and methodologies for price
determination, while state+owned Coal )ndia *td $C)*%

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will continue to fi( prices, sub,ect to the
ministry8s approval. 0here are proposals
regulatory bodies to govern the roads, biotechno
and real estate sectors as well.
Indirec# #a8 collec#ion a# Rs .!. lak( cr in
Fe)% )ndirect ta( collections grew by 3.= per cent t
<,<1,57= crore in the "pril+February period of
financial year. '(cise collection dropped by :.5
cent to Rs 1,<?,@11 croreH Service ta( collection
by 15.7 per centH 0he government has set a rev
indirect ta( collection target of Rs 3.1? la!h crore
Limi# raised for in>es#men# in infla#ion )ond
has decided to increase the ma(imum limit
investment in )nflation )nde(ed ational Sa
Securities+Cumulative $))SS+C% to Rs 12 la!h
annum from Rs 3 la!h earlier for eligible indivi
investors and Rs 73 la!h per annum from Rs 3
per annum earlier for institutions such as H
undivided families, charitable trusts, e
endowments and similar institutions which are
pro+profit in nature. )nterest rate on the bonds
lin!ed to Consumer &rice )nde( $C&)%.
Elec#ion Commission >e#oes :as price (ike
'lection Commission $'C% has refused to clear
.nion governmentUs proposal for a steep increas
domestic gas prices. 0his will have a ma,or bearin
Reliance )ndustries *td $R)*%, besides 9il and at
/as Corporation, 9il )ndia *td $9)*% and Cairn )n
0he poll panel decision puts on hold doubling of
domestic natural gas price, from M<.7 per mi
British thermal units $mBtu% to M5.<, till a
government ta!es charge at the Centre.
Core sec#or :ro$s only !2? in ;an"ary%
sector + fertilisers, cement, steel, electricity, crude
coal, petroleum refinery products and natural gas
roughly 75 per cent in the )nde( of )ndus
0nified #ranspor# minis#ry moo#ed% " high
committee on transport development, headed
former Reserve Ban! of )ndia $RB)% deputy gov
Ra!esh -ohan, has suggested a unified ministr
transport with roads, railways and ports as
departments. )t has also recommended raising
| www.careerpower.in | www.ca
s, sub,ect to the coal
e are proposals for
the roads, biotechnology
lak( cr in AprA
rew by 3.= per cent to Rs
February period of this
ion dropped by :.5 per
rvice ta( collection, grew
nment has set a revised
of Rs 3.1? la!h crore for
a#ion )onds% RB)
he ma(imum limit for
tional Saving
C% to Rs 12 la!h per
er for eligible individual
r annum from Rs 3 la!h
itutions such as Hindu
able trusts, education
titutions which are not
t rate on the bonds are
price (ike% 0he
as refused to clear the
l for a steep increase in
have a ma,or bearing on
, besides 9il and atural
d $9)*% and Cairn )ndia.
on hold doubling of the
from M<.7 per million
u% to M5.<, till a new
an"ary% 0he core
teel, electricity, crude oil,
ucts and natural gas has
he )nde( of )ndustrial

" high+powered
evelopment, headed by
a $RB)% deputy governor
d a unified ministry of
ays and ports as its
commended raising the
road cess on petrol to Rs < a litre
cess of Rs 7 a litre.
Ne$ IIP #o "se >al"e of som
ensure an accurate picture of econ
point of time, a new )nde( of )ndu
$))&% would include value of pro
capital goods in various phases of p
of their volumes at the final stage.
over double of e(isting 522 items. )t
12 as the base year against 722<
C+C seeks repor# on 0ni#ed B
Bigilance Commission $CBC% has sou
Finance -inistry on crisis+ ridden .n
for under reporting of its bad loans o
"ssets $&"s%. .B)Us gross &"s ro
5,3<= crore at the end of #ecember 7
FinMinA)acked A/M rollo"# pla
.nion finance ministry+bac!ed plan
public sector ban!sU "utomated
$"0-s% by -arch 721< is stuc! in va
and commercial problems. 0he pla
"0-s to be installed in 1= geog
::,222 during 7217+1: and :2,
Ins"rers no# ye# ready for Sol>
norms, which call for ris!+based cap
may ta!e longer than e(pected to b
)ndia. Solvency+)) is a 'uropean .nio
programme to be implemente
states. )t introduces a new, harm
insurance regulatory regime. Solven
insurers what Basel+))) norms are
norms are made up of provisions rel
reAuirements of companies, regulat
a specific firm8s ris!, and the re
supervision of the entire mar!et.
No error in prin#in: of no#es
that new Rs 1,222 and Rs 32
Subbarao8s signature, who had d
September 721:, are being rolle
printing presses of RB). RB) has
bearing a signature of former gove
are legal tender and the process of c
was underway. Changing the govern
the ban!notes is a tedious process. "
)ndia are issued in the denomination
72, Rs 32, Rs 122, Rs 322 and Rs 1
notes from four currency note printin
the currency note printing presses
/overnment of )ndia and two ar
Reserve Ban!, through its wholly o
etrol to Rs < a litre from the e(isting
e of some capi#al :oods% 0o
rate picture of economic activity at a
new )nde( of )ndustrial &roduction
clude value of production of some
various phases of production, instead
l stage. ew ))& will have
(isting 522 items. )t will have a 722?+
year against 722<+23 in the present
n 0ni#ed Bank6 0he Central
ission $CBC% has sought a report from
ridden .nited Ban! of )ndia
ting of its bad loans or on &erforming
.B)Us gross &"s rose 155.:O to Rs
e end of #ecember 721:.
rollo"# plan (i#s a $all% 0he
bac!ed plan for e(pansion in
ban!sU "utomated 0eller -achines
h 721< is stuc! in various operational
0he plan was for =:,222
stalled in 1= geographical regions,
1: and :2,222 in 721:+1<.
y for Sol>encyAII% Solvency+))
based capital in insurance,
r than e(pected to be implemented in
)) is a 'uropean .nion $'.% legislative
be implemented in all 75 '. member
duces a new, harmonised '.+wide
atory regime. Solvency+)) norms are to
))) norms are for ban!s. 0hese
up of provisions related to the capital
, regulatory assessment of
8s ris!, and the regulator8s broader
he entire mar!et.
of no#es6 0here were reports
1,222 and Rs 322 notes bearing
nature, who had demited office in
:, are being rolled out from the
s of RB). RB) has said new notes
ture of former governor # Subbarao
and the process of changing signature
Changing the governor8s signature on
a tedious process. "t present, notes in
in the denomination of Rs 3, Rs 12, Rs
22, Rs 322 and Rs 1,222. RB) receives
currency note printing presses. 0wo of
te printing presses are owned by the
)ndia and two are owned by the
through its wholly owned subsidiary,

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the Bharatiya Reserve Ban! ote -udran *td
$BRB-*%. 0he government owned presses are at
asi! and #ewas. 0he other two presses are at -ysore
and Salboni. Coins are minted in four mints owned by
the /overnment of )ndia. 0he mints are located at
-umbai, Hyderabad, Calcutta and oida.
CA- falls #o <!=? of 3-P in J*I lo$es# in . years%
)ndia8s current account deficit $C"#% for the Auarter
ended #ecember stood at M<.7 billion, or 2.? per cent
of the gross domestic product $/#&%, a sharp fall from
M:1.? billion $=.3 per cent% in the year+ago period. 0he
fall resulted from a pic!+up in e(ports and moderation
in imports, especially of gold.

3o># appro>es 5!41? in#eres# on EPF deposi# for
&<*A.% )nterest rate was 5.3 per cent in 7217+1:.
M"#(oo# #o se# "p =7<<< $(i#eAla)el A/Ms% 0he
-uthoot group company has partnered with F)S
&ayment Solutions N Services )ndia, which will act as
the technical partner for the pro,ect and Federal Ban!
*td, is the sponsor ban! for this venture.
Cen#ral Bank sells en#ire s#ake in CIBIL% Central
Ban! of )ndia has sold its entire sta!e in credit
information provider Cibil to 0ransunion )nternational
)nc. Central Ban! had a 3 per cent sta!e in C)B)*.
0ransunion is the ma,ority shareholder in C)B)* at
7@.3 per cent. "mong others, Ban! of Baroda, Ban! of
)ndia, &un,ab ational Ban!, .nion Ban!, Citicorp
Finance $)ndia%, HSBC, Standard Chartered Ban!,
)ndian 9verseas Ban! and H#FC *td each hold 3 per
cent sta!e in C)B)*. State Ban! of )ndia and )C)C) Ban!
carry 12 per cent each, while rest of 7.3 per cent is
with Sundaram Finance *td.
-emand for ener:y (i:(es# in India6 0he growth in
energy demand in )ndia would be the highest among
all countries by 72:2+:3, beating even China, says the
721< energy outloo! report issued by British oil giant
B&. "ccording to the report, )ndia8s energy production
would rise by 117 per cent, while consumption would
grow by 1:7 per cent. 9il imports would rise by 1=?
per cent and account for over =2 per cent of the net
increase in imports, followed by increasing imports of
gas $Q3@: per cent% and coal $Q53 per cent%.
0P clocks ma8im"m food :rain prod"c#ion in
India% 0he food grain production in .ttar &radesh
during 7217+1: crop year $;uly+;une% has once again
topped its peers at about 32.5< million tonnes $-0%.
Higher production has come about primarily due to
improving productivity. "gainst food grain
productivity of 7,<<5 !gFhectare in 7211+17, the
productivity inde( rose to 7,3<@ !gFhectare in 7217+
Ind"s#rial Prod"c#ion rises6 Having declined for
three months in a row, industrial production
e(panded by 2.1 per cent in ;anuary. However,
merchandise e(ports declined :.=@ per cent in
February, for the first time in eight months.
-anufacturing output declined for the fourth
consecutive month in ;anuary. 0his sector, which
occupies over @3 per cent weight in the )nde( of
)ndustrial &roduction $))&%, fell by 2.@ per cent
compared to a 1.7 per cent decline a month ago.
>ithin manufacturing, consumer durables and capital
goods persisted with a fall in output.
3o># panel #o re>ie$ LP3 s")sidy pipeline% 0he
government has set up a committee to recommend
changes in a scheme to pay the coo!ing gas subsidy
into consumersU ban! accounts. 0he 17+member panel,
headed by S / #hande, former director of the )ndian
)nstitute of 0echnology, Kanpur, will loo! at the
difficulties consumers faced in receiving the subsidy
after buying gas cylinders at mar!et rates. 0he scheme
was launched last ;une and put on hold in ;anuary over
difficulties in implementing it.
Re#ail infla#ion declines #o &1Amon#( lo$ in
Fe)r"ary% Consumer &rice )nde( $C&)%+based inflation

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fell to 5.1 per cent in February, the second+lowest
since the inde( was launched in 7217. )nflation for
food items, which account for about <3 per cent
weight of C&), fell to 5.3@ per cent from ?.? per cent in
Fe) WPI a# =Amon#( lo$% >holesale inflation fell to a
nine+month low of <.=5 per cent in February from 3.23
per cent in the previous month, as prices of food items
rose at a lower pace. 0he inflation, based on the
>holesale &rice )nde( $>&)%, declined to the Reserve
Ban! of )ndia $RB)%8s comfort Cone K below five per
cent K after eight months.
Fore8 reser>es "p D!<= )nI )ack #o April le>el%
Foreign e(change reserves rose M1.2? billion for the
wee! ended -arch @ to M7?3.<3 billion, bac! to the
level seen at the start of the current financial year.
India remains #(e )i::es# arms )"yer% "ccording to
Stoc!holm )nternational &eace Research )nstitute
$S)&R)%, )ndia imported nearly three times as many
weapons as its nearest competitors China and
&a!istan over the last five years. 0he main supplier of
arms to )ndia in 722?+1: was Russia, accounting for
@3 per cent of all imports. 0he five largest arms
suppliers worldwide between 722? and 721: were
the .S, Russia, /ermany, China and France. 0he
world8s top five arms importers were now )ndia,
China, &a!istan, the .nited "rab 'mirates and Saudi
Pri>a#e )anks pip PSBs in Casa mo)iliEa#ion% )n
721:, while the share of low+cost current account and
savings account $Casa% deposits improved in the case
of most private lenders, many government ban!s
reported a decline. >hile the Casa ratios of public
sector ban!s such as SB), Ban! of )ndia, Canara Ban!
and .nion Ban! of )ndia declined compared to the
year+ago period, the ratio improved for private ban!s
such as )C)C) Ban!, "(is Ban!, Kota! -ahindra Ban!,
)ndus)nd Ban! and E'S Ban!.
"ttractive pricing, better customer service and
branding of Casa products have helped private ban!s
gain a good share of the low+cost deposit mar!et.
BanksK deposi# :ro$#( )ea#s rise in credi#6 0he
ban!ing system8s deposit growth continues to be
higher than the growth in credit, owing to slow
economic growth. Reserve Ban! of )ndia $RB)% data
show for the fortnight ended -arch @, credit grew
1<.=3 per cent year+on+year, while deposits rose 13.33
per cent.
Reser>e Bank (as ye# #o decide on infla#ion
#ar:e#in:6 .r,it &atel committee8s has recommended
that monetary policy should move towards inflation
targeting. However, RB) is yet to ta!e a final view. 0he
committee has said retail inflation should be the
anchor measure for the central ban!, instead of
wholesale inflation. 0he aim is to bring C&) to eight per
cent in one year and si( per cent at the end of two
RBIKs forei:n e8c(an:e reser>es near &4Amon#(
(i:(% 0he foreign e(change reserves rose by M1.5<
billion to M 7?@.7? billion for the wee! ending -arch
1<. Foreign e(change reserves had hit a :?+month low
on September = when it touched M 7@< billion.

Ne$ players op# o"# of na#ional (eal#( ins"rance
sc(eme% 0he scheme was launched by the labour
ministry to provide health insurance to families living
below the poverty line. 0he Rashtriya Swasthya Bima
Eo,ana provides insurance to five members of a
familyKthe head of the household, spouse and three
dependentsKup to Rs :2,222 for most diseases that
need hospitalisation. 0he government has set hospital
rates for a large number of treatments. '(isting
ailments are covered from day one and there is no age
bar. Beneficiaries register with Rs :2 and the
government pays the policy premium to insurers
chosen through bids. 0he Centre pays @3 paise of

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every rupee of policy premium for the Rasht
Swasthya Bima Eo,ana and the states pay the
;ammu N Kashmir and the northeastern states
only 12 per cent of the premium.
P")lic sec#or lenders $ri#e off more )ad
#(an reco>ery% 0hese ban!s wrote off Rs 1?,323 c
non+performing assets in the third Auarter of 721:
0he cash they recovered over the Auarter wa
15,?:: crore. "nother Rs 71,?55 crore w
reclassified as not being bad any more, bringing d
the stic!y loan portfolio of these ban!s by Rs =2
crore. 0he state+owned ban!s had Rs 1,=<,<=1 cro
non+performing assets on their boo!s on "pril 1, 7
which grew by Rs 1,7<,1<@ crore in nine months t
7,75,151 crore on #ecember :1, 721:.
eAfilin: ser>ices "nder MCAA& #empo
s"spended from April A*% 0his move is intende
facilitate a smooth transition to the new forms u
the new company law. )n this "pril 1+1: period, al
new forms under the new company law are e(pe
to be uploaded so that they could be used by
business community under the new company
regime. "s many as 757 sections in the new comp
lawKwhich comprises <@2 sectionsKwill come
effect from "pril 1.
0ni>ersi#y of C(ica:o opens academic cen#
-el(i% 0he centre will promote scholarship thro
three broad programmes K business, economics,
and policyH science, energy, medicine, and pu
healthH and culture, society, religion, and arts.
university already has centres in Bei,ing and &
Ne$ company la$% Firs# se# of final r"les is a m
)a: for India Inc% &rivate companies with an an
turnover of Rs. 722 crore or an outstanding loan o
122 crore would now be reAuired to appoin
internal auditor. 0he final rules provide that unli
public companies $with paid up capital of Rs. 12 c
and above and those with loan of over Rs. 32 cr
need to have at least 7 independent directors.
in variance to earlier proposal that one+third of
boards of unlisted public companies should comp
independent directors. "lso, now every li
company and a public company with a paid
of Rs. 122 crore or a turnover of Rs. :22 crore sh
have a woman director.
| www.careerpower.in | www.ca
r the Rashtriya
the states pay the rest.
northeastern states pay
more )ad loans
wrote off Rs 1?,323 crore
third Auarter of 721:+1<.
er the Auarter was Rs
s 71,?55 crore were
any more, bringing down
ese ban!s by Rs =2,<7=
had Rs 1,=<,<=1 crore of
ir boo!s on "pril 1, 721:,
ore in nine months to Rs

& #emporarily
0his move is intended to
to the new forms under
1: period, all the
mpany law are e(pected
y could be used by the
the new company law
ons in the new company
will come into
demic cen#re in
ote scholarship through
usiness, economics, law,
, medicine, and public
religion, and arts. 0he
in Bei,ing and &aris.
l r"les is a mi8ed
mpanies with an annual
n outstanding loan of Rs.
reAuired to appoint an
that unlisted
up capital of Rs. 12 crore
an of over Rs. 32 crore%
endent directors. 0his is
third of the
panies should comprise
so, now every listed
ny with a paid+up capital
r of Rs. :22 crore should
3o># #o )orro$ Rs! *!25Alak( cr
/overnment will borrow Rs. :.=5 la!
first si( months $"pril+September%
year 721<+13 starting "pril 1.
for the first half is =1.3 per cent
borrowing as announced in the inte
borrowing was pegged at Rs. 3.?
:<,222 crore higher than 721:
:1. However, net borrowing,
redemptions of government securitie
la!h crore, which is around : per ce
current fiscal.
RBI e8#ends deadline #o impleme
#o &<=% 0he implementation of
regulations may necessitate some le
to raise capital within the intern
timeline for full implementation of
regulations. 0he breather w
implementation of Basel ))) in )n
internationally agreed date of ;anuar
RBI eases fore8 (ed:i
e8por#ersLimpor#ers% Contracts bo
cent of the eligible limit may be c
e(porterFimporter bearingFbeing en
or gain as the case may be. 0he el
lak( cr in AprilASep#% 0he
l borrow Rs. :.=5 la!h crore during the
September% of the ne(t fiscal
tarting "pril 1. Borrowing programme
lf is =1.3 per cent of gross mar!et
nnounced in the interim budget. 0otal
pegged at Rs. 3.?@ la!h crore, Rs.
gher than 721:+1< fiscal ending -arch
net borrowing, which e(cludes
government securities, will be Rs. <.3@
h is around : per cent lower than the
#o implemen# Basel III norms
implementation of Basel ))) capital
necessitate some lead time for ban!s
l within the internationally agreed
implementation of the Basel ))) capital
0he breather will align full
of Basel ))) in )ndia closer to the
greed date of ;anuary 1, 721?.

8 (ed:in: r"les for
Contracts boo!ed up to @3 per
ible limit may be cancelled with the
ter bearingFbeing entitled to the loss
case may be. 0he eligible limit in the

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case of e(porters is computed as the average of
previous three financial years8 $"pril to -arch%
e(port turnover or the previous year8s actual e(
turnover, whichever is higher. 0he eligible limit in
case of importers is computed as 73 per cent of
average of the previous three financial years8 ac
import turnover or the previous year8s actual im
turnover, whichever is higher.
MCXASX appoin#s former LIC c(ief Mr Ma#(
c(airman% "shima /oyal, &rofessor at )ndira /a
)nstitute of #evelopment Research, has b
appointed as Bice+Chairperson.
6o#ak Bank rolls o"# social ne#$orked ac
B;ifi@% )n an aggressive bid to go digital, Kota! -ahi
Ban! has launched an online social current acc
integrated with Faceboo! and 0witter. 0argeted a
tech+savvy and the young, Kota! ;ifi is a no minim
balance, Cero interest current account which can
opened with an initial payment of Rs. 3,222. 0he b
has tied up with online retailers such as e
-a!e-y0rip and ;abong, among others, to at
Banks denied access #o $eal#( #a8 re#"r
defa"l#in: )orro$ers% 0hough the details of we
in the hands of defaulters $as stated in the wealth
returns% could be useful for recovery of dues,
income ta( authorities do not share the same
ban!s even under the Right to )nformation "ct.
IR-A allo$s collec#ion of ad>ance premi"m
commission to the agents, however, could be paid
after the ad,ustment of premium on due date.
Corr"p#ion7 )ri)ery7 corpora#e fra"ds )i::es
fac#ors for India Inc% "s per )ndia Ris! Survey 7
carried out by F)CC) and &in!erton to assess
impact of ris!s across industry and geographies w
the country, corruption, bribery, corporate fr
biggest ris! factors for )ndia )nc. 4Stri!es, closures,
unrest8 have been rated as the second biggest
Bank )oards s"ffer from (":e :o>ernance d
"ccording to RB) #eputy /overnor KC Cha!rab
the )ndian ban!ing system needs a clean
governance, especially at the board level and sys
should be rule+based or principle+based but
discretion+based, as is the case now.
3o># #o sell s#ake in A8is Bank6 S..0), owned
/ovt currently holds 72.@7 per cent in "(is Ban!.
6C C(akra)ar#y C"i#s RBI% RB) #eputy /overnor
Cha!raborty has reAuested for a slightly ea
| www.careerpower.in | www.ca
d as the average of the
s8 $"pril to -arch% actual
ious year8s actual e(port
. 0he eligible limit in the
ed as 73 per cent of the
e financial years8 actual
ear8s actual import
f Mr Ma#(e$ as
ofessor at )ndira /andhi
Research, has been
rked acco"n#
o digital, Kota! -ahindra
e social current account
0witter. 0argeted at the
ta! ;ifi is a no minimum
t account which can be
nt of Rs. 3,222. 0he ban!
etailers such as eBay,
mong others, to attract
#a8 re#"rns of
gh the details of wealth
stated in the wealth ta(
r recovery of dues, the
ot share the same with
)nformation "ct.
e premi"m% 0he
ever, could be paid only
um on due date.
"ds )i::es# risk
)ndia Ris! Survey 721<,
!erton to assess the
y and geographies within
ibery, corporate frauds
nc. 4Stri!es, closures, and
the second biggest ris!
>ernance defici#6
vernor KC Cha!rabarty,
needs a clean+up of
board level and system
based but not
6 S..0), owned by
r cent in "(is Ban!.
B) #eputy /overnor, K C
for a slightly earlier
departure $"pril 73% than the sche
IR-A may ask life ins"rers
reposi#ories% 0he )nsurance
#evelopment "uthority $)R#"% is
mandatory for life insurance compan
all five insurance repositories by ;
repository system lets policyholder
electronic form, and ma!e changes
the policy. )R#" has licensed Karvy
Central )nsurance Repository, SHC
C"-S Repository Services as reposit
Ne$ secre#arial a"di# r"les likel
)nstitute of Company Secretarie
recommended that the norms for pr
audit should be on par with that of
audit. 0he /overnment needs
recommendation as a rule under t
Pri>a#e )anks a# (i:(er risk of
#(an S#a#eAr"n lenders%
commissioned by )B- and con
)nternational #ata Corporation $)#
ban!s are at a higher ris! of losin
their public sector counterparts,
unsatisfactory customer services. "b
private ban! customers transact wi
ban!, compared with 7< per cent
ban!s. 0he prime reasons for custom
are unsatisfactory branch e(perience
respondents%, problem resolution $3
channel e(perience $<1 per cent%.
3o># m"lls ne$ $ays #o raise
0hese include investment by pe
insurance companies, rights issu
shareholders at the time of capita
/overnment and issuance of shares
estimated that ban!s need around
capital in the ne(t few years to meet
il 73% than the scheduled one $;une+
ins"rers #o #ie "p $i#(
0he )nsurance Regulatory and
uthority $)R#"% is li!ely to ma!e it
ife insurance companies to tie up with
ce repositories by ;uly.0he insurance
m lets policyholders !eep policies in
, and ma!e changes and revisions in
has licensed Karvy, S#* #atabase,
ce Repository, SHC)* &ro,ects, and
y Services as repositories.
r"les likely from April % 0he
ompany Secretaries of )ndia has
hat the norms for proposed secretarial
on par with that of internal financial
vernment needs to approve the
n as a rule under the new company
(er risk of losin: c"s#omers
ers% "ccording to a study
by )B- and conducted by the
ata Corporation $)#C%, private sector
ris! of losing customers than
ector counterparts, chiefly due to
ustomer services. "bout <1 per cent of
stomers transact with more than one
d with 7< per cent at public sector
ons for customer dissatisfaction
ry branch e(perience $=:.= per cent of
roblem resolution $33.: per cent% and
nce $<1 per cent%.
s #o raise capi#al for )anks%
investment by pension funds and
panies, rights issue for minority
t the time of capital infusion by the
d issuance of shares to employees. )t is
ban!s need around Rs. 1+la!h crore
(t few years to meet business needs.

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;0NE 9 ;0LH &<.
Ne$ C(ief ;"s#ice of India6 ;ustice R.-.*odha
been appointed as new Chief ;ustice of )ndia.
-ep"#y 3o>ernor of RBI6 R. /andhi has b
appointed as #eputy /overnor of RB).
Ne$ FE- C(ief6 ;anet Eellen, ta!es over from
Bernan!e as new Fed Reserve Chief..
-adasa(e) Falke A$ard &<*6 &oet /ulCar has b
selected for the #adasaheb &hal!e "ward 721:.
Ar>ind Mayaram is finance secre#ary%
government has named 'conomic "ffairs Secre
"rvind -ayaram the finance secretary. Sumit Bose
retired in -arch.
RBI appoin#s #(ree ne$ E-s% 0he Reserve Ban
)ndia $RB)% has appointed three new e(ecu
directors $'#s% namely S Bishwanathan, Chan
Sinha, and . S &aliwal. 0he central ban! has
e(ecutive directors. 0raditionally, among the
deputy governors, two are promoted from within
ran!s of RB) while one is an economist and the fo
one is a commercial ban!er. "part from R /andhi
has been recently appointed as #eputy /overnor
other deputy governors are H R Khan and .r,it &at
S(ri 3"rdial Sin:( Sand(" nomina#ed on
Cen#ral Board% 0he Central /overnment
nominated Shri /urdial Singh Sandhu, Secre
#epartment of Financial Services, -inistry of Fina
ew #elhi as a director on the Central Boar
#irectors of the Reserve Ban! of )ndia.
Ila Pa#naik appoin#ed principal economic ad
in FinMin% oted economist )la &atnai! has b
appointed principal economic advisor in the .
finance ministry. &atnai!, is currently Reserve Ban
)ndia chair professor at the ational )nstitute of &u
Finance and &olicy $)&F&%, a government fun
thin! tan!.
Iss"e of M 1 coins #o commemora#e #(e occas
NAc(arya /"lsi Bir#( Cen#enaryN% 0he /overnm
of )ndia has minted the above mentioned coins w
the Reserve Ban! of )ndia will shortly put
India Ra#in:s pe:s FH1 :ro$#( a# 1!2?%
group entity )ndia Ratings on -onday !ept its gro
forecast for 721<+13 unchanged at 3.= per
despite the )ndia -eteorological #epartment $)
predicting a sub+normal monsoon this year.
official estimate for growth in 721:+1< is <.? per c
against a decade+low of <.3 per cent in 7217
| www.careerpower.in | www.ca
6 ;ustice R.-.*odha has
ustice of )ndia.
6 R. /andhi has been
n, ta!es over from Ben
6 &oet /ulCar has been
al!e "ward 721:.
secre#ary% 0he
nomic "ffairs Secretary
tary. Sumit Bose had
0he Reserve Ban! of
three new e(ecutive
Bishwanathan, Chandan
central ban! has nine
nally, among the four
romoted from within the
economist and the fourth
part from R /andhi who
as #eputy /overnor, the
R Khan and .r,it &atel.
ina#ed on RBI
tral /overnment has
ngh Sandhu, Secretary,
ices, -inistry of Finance,
tral Board of
conomic ad>isor
t )la &atnai! has been
ic advisor in the .nion
urrently Reserve Ban! of
ational )nstitute of &ublic
, a government funded
e #(e occasion of
0he /overnment
ed coins which
will shortly put into
a# 1!2?% Fitch
-onday !ept its growth
anged at 3.= per cent,
#epartment $)-#%
onsoon this year. 0he
1< is <.? per cent,
r cent in 7217+1:.
-GB sees FH1 :ro$#( a# 1!1?
cloc! a /#& growth of 3.3O du
financial year provided there is nor
stable government at the centre, says
M"#"al f"nds make A0M disc
houses have begun disclosing inve
companies in their assets under man
Birla Sun *ife -F tops the list with Rs
its related entities.
No en#ry a:e limi# for :o># s#a
pension sector regulator has s
government employees $central N st
the government can be enrolled
&ension System $&S%, irrespective
of entry. However, this is sub,ect to
the total period of contribution to
not be more than <7 years. &S is
pension scheme launched by the .ni
;anuary 722<. )t was made compu
government employees.
Ind"sInd Bank #o foray in#o ass
)ndus)nd Ban! plans to start ass
business in the ne(t couple of mon
sector lender has already firmed
strategy and plans to partner ass
companies $"RCs% for this new b
>hile the Reserve Ban! of )ndia has
acAuiring bad loans from sponsor ba
basis, it has allowed such transactio
auctioned in a transparent manner, o
basis and if prices are determined by
ICAI #o iss"e norms on fra"d rep
"ccounting watchdog the )nstitu
"ccountants of )ndia $)C")% will bri
note for auditors on detecting corp
follows the new Companies "ct ma!
for auditors to report corporate
government within a specified time
new "ct, if the statutory auditor has
to believe an offence involving frau
been committed in a company, it has
the government within =2 days of
about it.
$#( a# 1!1?% )ndia is li!ely to
rowth of 3.3O during the current
rovided there is normal monsoon and
ent at the centre, says a #NB report.
A0M disclos"res% "ll fund
gun disclosing investments of group
eir assets under management $".-s%.
F tops the list with Rs =,353 crore from
r :o># s#aff "nder NPS% 0he
r regulator has said all eligible
ployees $central N state% on the rolls of
rolled into the ational
$&S%, irrespective of age at the time
er, this is sub,ect to the condition that
of contribution to &S account shall
an <7 years. &S is the contributory
launched by the .nion government in
)t was made compulsory for all new
ay in#o asse# recons#r"c#ion%
plans to start asset reconstruction
ne(t couple of months. 0he private+
has already firmed up its business
lans to partner asset reconstruction
Cs% for this new business venture.
ve Ban! of )ndia has barred "RCs from
ans from sponsor ban!s on a bilateral
owed such transactions if the asset is
ransparent manner, on an armUs+length
es are determined by mar!et factors.

fra"d repor#in: )y a"di#ors%
tchdog the )nstitute of Chartered
)ndia $)C")% will bring out a guidance
rs on detecting corporate fraud. 0his
Companies "ct ma!ing it mandatory
o report corporate frauds to the
hin a specified time frame. .nder the
tatutory auditor has sufficient reasons
ffence involving fraud is being or has
in a company, it has to be reported to
t within =2 days of coming to !now

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Se)i re>ises norms for liC"idi#y en(ance
sc(emes% Capital mar!ets regulator Securities
'(change Board of )ndia $Sebi% has revised no
governing the incentive schemes that stoc! e(cha
can provide members for trading on t
platforms.0he new norms allow e(changes t
incentives for a ma(imum of three years.
RBI :ro"p $an#s "se of p")lic key infras#r"
for safe paymen# sys#em% "s consumer ban
frauds are on the rise, a Reserve Ban! of )ndia $
group has suggested the use of public
infrastructure $&K)% in order to ensure a safe
secure payment system in the country. 0he cen
ban! has launched a series of initiatives to imp
technological infrastructure to support payment
settlement systems $R0/S% K which are terme
&K) K such as real time gross settlement, nati
electronic fund transfer $'F0%, etc. "c!nowled
that non+&K) payment systems such as magnetic
character recognition $-)CR% or non+-)CR clea
electronic credit system, credit and debit c
contributed @3 per cent in volume terms but only
per cent in value terms in 7217+1: in ban
transactions, the group has called for using &K
provide a safe, secure payment system and en
legal compliance. "ccording to the report, ban!
their internet ban!ing applications, sh
mandatorily create an authentication environmen
password+based, two+factor authentication as we
a &K)+based system. Besides, ban!s should provi
&K)+based authentication system for online ban
transactions as an optional feature for customers.
RBI p"#s c"r) on "sin: ECB #o repay dom
loans% 0he Reserve Ban! of )ndia $RB)% has ba
companies from repaying domestic loans thro
funds raised through e(ternal commercial borrow
$'CBs% from foreign branches of )ndian ban!s.
ban!s to put restrictions on their foreign branche
terms of giving guarantees to offshore
venturesFsubsidiaries of )ndian companies to ava
foreign currency loans to repay rupee credit.
IndoA0S #rade #o cross D<< )illion% "ccordin
;ames /olsen, principal commercial officer
)ndia, .S Commercial ServiceH trade between
.nited States and )ndia is soon e(pected to cross M
0he total goods trade between the countries in 7
stood at M =:.@ billion.
In#er>en#ion diffic"l# $(en c"rrency falls s(
"ccording to RB) #eputy /overnor H R K
intervention in the face of the sharp depreciation
| www.careerpower.in | www.ca
#y en(ancemen#
egulator Securities and
ebi% has revised norms
es that stoc! e(changes
or trading on their
ow e(changes to provide
y infras#r"c#"re
"s consumer ban!ing
erve Ban! of )ndia $RB)%
use of public !ey
r to ensure a safe and
he country. 0he central
of initiatives to improve
to support payment and
which are termed as
oss settlement, national
s such as magnetic in!
-)CR clearing,
redit and debit cards
lume terms but only =.:
1: in ban!ing
called for using &K) to
ent system and ensure
to the report, ban!s, in
applications, should
tication environment for
uthentication as well as
, ban!s should provide a
stem for online ban!ing
ature for customers.
repay domes#ic
)ndia $RB)% has barred
domestic loans through
l commercial borrowings
an ban!s. RB) told
their foreign branches in
es to offshore ,oint
an companies to avail of
y rupee credit.
"ccording to
mercial officer + south
iceH trade between the
n e(pected to cross M 122
en the countries in 721:
cy falls s(arply%
/overnor H R Khan,
e sharp depreciation is a
difficult choice for several reasons,
reserves, particularly in a country li!
e(ternal liabilities far e(ceed the
Between "pril and "ugust, 7
depreciated about 1? per cent a
following fears of the .S FedUs tap
and also, wea! domestic fundam
current account deficit aggravated th
RBI E- seeks >ol"n#ary re#ireme
)ndia $RB)% '(ecutive #irector / /
voluntarily retired from the servi
director of Centre for "dvanced F
and *earning $Cafral%. Cafral,
organisation, is an independent bod
Mor panelKs financial incl"sion
on )ack )"rner% 0he .nion finance
Reserve Ban! of )ndia $RB)% have ra
viability and implementation of the
made in the achi!et -or commit
panel had, among other things,
ban!ing structure to foster financial
unease with the idea of non
getting the status of ban!s, withou
adhering to the cash reserve ratio
liAuidity ratio. 0he -or committe
setting up two types of ban!s
wholesale ban!s + besides tal!
convergence in regulations for ban!s
financial companies $BFCs%.
suggestion that e(isting commercial
to hold payment ban!s as subsidiar
unviable as this might not serve
financial inclusion, as BFCs charge
rates and might continue to do so
converted into ban!s.
C"/ can audit private companies6 0
has held that the Comptroller and
$C"/% could audit the account b
telecom companies, which share th
the government for using spectrum
such a scrutiny was crucial fo
government got its Ilegitimate sh
private telecom operators to use th
resource. 0hough the Supreme Cou
is for the telecom sector, it may ha
for several reasons, including loss of
ularly in a country li!e )ndia where the
ies far e(ceed the official reserves.
l and "ugust, 721:, the rupee
out 1? per cent against the dollar
of the .S FedUs tapering programme
! domestic fundamentals li!e high
deficit aggravated the problem.
ry re#iremen#6 Reserve Ban! of
cutive #irector / /opala!rishna has
red from the service and ,oined as
tre for "dvanced Financial Research
$Cafral%. Cafral, a not+for+profit
an independent body fully funded by

incl"sion repor# may )e p"#
0he .nion finance ministry and the
f )ndia $RB)% have raised Auestions on
plementation of the recommendations
achi!et -or committeeUs report. 0he
ong other things, suggested a new
re to foster financial inclusion. 0here is
he idea of non+ban!ing companies
us of ban!s, without obligations li!e
cash reserve ratio and the statutory
0he -or committee had suggested
types of ban!s + payment ban!s and
besides tal!ing about some
regulations for ban!s and non+ban!ing
anies $BFCs%. 0he committeeUs
e(isting commercial ban!s be allowed
t ban!s as subsidiaries is also seen as
is might not serve the purpose of
on, as BFCs charge very high interest
t continue to do so even after being
rivate companies6 0he Supreme Court
he Comptroller and "uditor /eneral
udit the account boo!s of private
nies, which share their revenues with
t for using spectrum. 0he Court said
ny was crucial for ensuring the
t its Ilegitimate shareJ for allowing
operators to use the valuable natural
h the Supreme Court8s present order
m sector, it may have an implication

www.bankersadda.com |
for other industries li!e power, mining, roadw
ports and airports, in which private companies ei
share revenues with the government or part
under the public+private partnership $&&&% model.
S#amp Ac# re>amp #o )enefi# #reas"ry%
proposed Bill to amend the )ndian Stamp "ct of 1
has sought to increase the ma(imum penalty to
la!h for various offences, compared with a
hundred rupees at present. "ccording to the d
circulated by the .nion finance ministry for comm
if a share warrant is issued without being
stamped, the penalty on those e(ecuting or signi
will increase from Rs 322 at present to Rs 1 la!
the case of any other instrument chargeable with d
such as debentures or preferential shares, the fine
be Rs 12,222. 9nce the Bill was enacted, st
revenue would double to about Rs =2,222 crore a y
as penalties for various offences under th
proposed to be increased substantially. )n the d
Bill, a provision has also been made to levy a pen
of up to Rs 1 la!h for failure to provide the reAu
cooperation in inspection of private and governm
premises and providing the reAuired information
records $paper as well as electronic%. 0he fine has
been increased substantially for stamp duty eva
Currently, the ma(imum penalty for this is Rs 3,22
| www.careerpower.in | www.ca
wer, mining, roadways,
private companies either
vernment or partner it
ership $&&&% model.

#reas"ry% 0he
ndian Stamp "ct of 15??
a(imum penalty to Rs 1
compared with a few
"ccording to the draft,
ce ministry for comment,
ed without being duly
e e(ecuting or signing it
present to Rs 1 la!h. )n
ent chargeable with duty,
ntial shares, the fine will
ill was enacted, stamp
ut Rs =2,222 crore a year,
nces under the "ct are
bstantially. )n the draft
n made to levy a penalty
to provide the reAuired
private and government
ired information and
tronic%. 0he fine has also
for stamp duty evasion.
lty for this is Rs 3,222. )t
has been proposed that for an eva
la!h, the fine can be increased to Rs
cent of the duty evaded, whicheve
evaded amount is more than R
punishment will involve imprisonme
or a fine of at least Rs 32,222 or both
RBI p"s( for In#eres# Ra#e
#radin:% RB) may introduce more t
Rate Futures $)RF% to drive trading v
#ecember, the regulator made a
launch )RFs. 0he previous two attem
a lu!ewarm response. RB)Us defini
standardised interest rate derivativ
on a recognised stoc! e(change
notional security or any other
instrument or an inde( of such instru
rates at a specified future date,
at the time of the contractJ. Cu
permitted where the underlying pr
treasury bill, a two+year, five
bearing government security.
S#a#e Bank of India #o re>ie$
me#ros% 0he State Ban! of )ndia gr
on a fresh strategy for e(pansio
branches and automated teller mac
relocating branches + in the four me
of #elhi, -umbai, Chennai and Bang
cut the time for brea!+even to a year
from the present period of up to
from the imperatives of competitio
effective use of locations and bett
resources in metropolitan regions.
Marc( infla#ion da#a das(
>holesale &rice )nde( $>&)%
three+month high of 3.@ per cent
nine+month low of <.=5 per cent
increase was mainly due to supply
primarily in certain foods. Ret
measured by the Consumer &r
increased to 5.:1 per cent in -arch
cent in February, led by a sharp ris
vegetables and fruit. 0he increase i
5.5? per cent and in urban area
showed the official data.
sed that for an evasion up to Rs 12
be increased to Rs 32,222 or 72 per
ty evaded, whichever is more. )f the
t is more than Rs 12 la!h, the
l involve imprisonment of up to a year
st Rs 32,222 or both.
es# Ra#e F"#"res #o )oos#
ay introduce more tenures in )nterest
F% to drive trading volumes further. )n
regulator made a third attempt to
previous two attempts had witnessed
sponse. RB)Us definition of )RF is, Ta
terest rate derivative contract, traded
d stoc! e(change to buy or sell a
ity or any other interest+bearing
n inde( of such instruments or interest
fied future date, at a price determined
f the contractJ. Currently )RFs are
e the underlying product is a ?1+day
year, five+year or 12+year coupon
ent security.

#o re>ie$ )ranc( policy in
ate Ban! of )ndia group is embar!ing
rategy for e(pansion + opening of
utomated teller machines $"0-s% and
in the four metropolitan regions
ai, Chennai and Bangalore. )t wishes to
even to a year for new branches
nt period of up to 7< months. "part
atives of competition, it is loo!ing at
f locations and better deployment of
tropolitan regions.
#a das( ra#e c"# (opes%
)nde( $>&)%+based inflation rose to a
gh of 3.@ per cent in -arch, from a
of <.=5 per cent in February. 0his
e to supply+side constraints,
certain foods. Retail inflation, as
the Consumer &rice )nde( $C&)%,
1 per cent in -arch against 5.2: per
y, led by a sharp rise in the prices of
increase in rural areas was
and in urban areas, @.31 per cent,

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No$7 life ins"rers can file only 1 prod"c#s a yr% 0he
)nsurance Regulatory #evelopment "uthority $)rda%
has come out with a new product planner rule by
which an insurance company can file only five
products for approval a year. But, this has not gone
down well with the companies. )rda has said if the
number of products e(ceeded five, the insurer should
furnish supporting mar!et research, product+wise
persistency for the 1:th month, 73th month and :@th
month as on "pril :2 of the previous year. "t present,
)rda follows the file+and+use method of application,
wherein insurers apply to obtain prior approval of the
authority to introduceFmodify insurance products.
Beginning "pril 721<, insurers have been advised to
file this planner, at least <3 days before the beginning
of the ne(t financial year, that is, before February 13 of
each year.
;alan )a#s for )e##er :o>#Acen#ral )ank #ies and
fle8i)le policyAmakin:% Former RB) governor Bimal
;alan has said that the priority of a central ban! should
not be fi(ated on either growth or inflation. Central
ban!s need to consider national priorities in their
policy decisions. 0he .r,it &atel committee advised
e(plicit focus on an inflation target, with the retail
price inflation figure seen as appropriate in this
Corpora#e 3o>ernance Norms% Capital mar!et
regulator, S'B), has issued corporate governance
norms for listed companies. 0he new rules will be
effective from 1st 9ctober 721<. Highlights include G
$a% 0he listed companies need to provide the option of
facility of e voting to shareholders on all resolutions
proposed to be passed at general meetingsH $b% 0o get
shareholders approvals for related party transactionsH
$c% 'stablish whistle blower mechanismH $d% 'laborate
disclosures on pay pac!agesH $e% "t least a woman
director on their boardsH $f% -a(imum tenure of an
independent director to two terms of five years and if
a person has already served as an independent
director for five years or more in a listed company till
the date new norms come into effect, he would be
eligible for appointment for one more term of five
years only.
Final S#andards #o c"r) E8pos"res of Banks #o
c"s#omers6 0he Basel Committee on Ban!ing
Supervision issued Final standards for measuring and
controlling large e(posures of ban!s to customers.
0hese standards will ta!e effect from 1 ;anuary 721?.
-ain ob,ective of the rules is to minimiCe the ris! of
fallout from a counterparty going default without
imposing e(cessive burdens on financial firms and to
ensure that the ma(imum possible loss a ban! could
incur if such a default were to occur would not
endanger the ban!Us survival as a going concern. )n
cases where the ban!Us counterparty is another ban!,
large e(posure limits will directly contribute towards
the reduction of system+wide contagion ris!. 0he
supervisors can impose a 73O cap on e(posures. "
tighter limit will apply to e(posures between ban!s
that have been designated as global systemically
important ban!s $/S)Bs%. 0his limit has been set at
13O of 0ier 1 capital.
India do$n in le>era:in: IC/ for :ro$#(6 " >orld
'conomic Forum report states that )ndia has slipped
down to 5:rd spot among 1<5 economies in terms of
leveraging information and communications
technologies for growth and well being. )n 721:, it
ran!ed =5th out of 1<< countries. "mong emerging
mar!et economies, China was placed on the =7nd
position, BraCil $=?th%, -e(ico $@?th% and )ndia $5:rd%.

;0LH &<.

XLRI recei>es reco:ni#ion as #op ed"ca#ional
ins#i#"#ion6 S*R), was felicitated in *ondon at the
first+ever 4S!ill0ree /reat &lace to Study G )ndia
'dition8. 0he other institutions felicitated include
/reat *a!es )nstitute of -anagement, )-0+C#*,
/haCiabad, )CF") .niversity, -anipal .niversity, ")-S
)nstitutes, "pee,ay 'ducation Society and "pee,ay Stya
.niversity, among others.

SBI la"nc(es di:i#al #o"c( )ankin: )ranc(es% State
Ban! of )ndia has launched si( digital branches in
-umbai, Bangalore,Chennai and "hmedabad, besides
#elhi. amed as sbi)09.CH, these branches will
have digital ban!ing capabilities, which include instant
account opening with personalised debit cards, instant
loan approvals for education, car and home and
remote e(pert advisors available via video lin!s. 0he
ban! has engaged "ccenture to develop the digital
business strategy for its programme.

Man"fac#"rin: o"#p"# re:is#ers s#ron:es# :ro$#(
since Fe)6 0he HSBC &urchasing -anager )nde( $&-)%
rose to 31.3 in ;une from 31.<. 0hough the increase is
marginal the important thing is that the
manufacturing output has increased for the eighth
successive month.
Fiscal defici# (i#s .1? of f"llAyear #ar:e# in &
mon#(s% 0he country8s fiscal deficit in the first two
months of the current fiscal $721<+13% touched <3.=
per cent of the Budget 'stimate for the whole yearH it
was ::.: per cent in the same period last year.

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1A4 lak( )ankin: ,o)s in #(e offin:% >ith close t
per cent of the wor!force in public sector ban!s s
retire in the ne(t few years, the ban!ing industry
soon be among the top employers offering five
la!h ,obs.

E8#ernal de)# rises #o D..<!2 )illion%
e(ternal debt as of -arch :1, 721<, showed
increase of M:1.7 billion over the year to M<
billion. 0he increase in total e(ternal debt du
721:+1< was primarily on account of the rise in
resident deposits. )n terms of ma,or components
share of e(ternal commercial borrowings continue
be the highest at ::.: per cent of total e(ternal d
followed by R) deposits $7:.= per cent% and s
term debt $72.: per cent%.

/rea# :old deposi#s as par# of CRRLSLR
want the Reserve Ban! of )ndia to include a portio
their gold deposits to meet the statutory pre
reAuirements relating to either Cash Reserve R
$CRR% or Statutory *iAuidity Ratio $S*R%, bot
which ban!s consider as non+productive.

'i:( infla#ion remains a #(rea# for economy
RB), high inflation and the conseAuent low real ra
return on financial assets may force savers to
e(cessive ris!s in their search for better returns. )
| www.careerpower.in | www.ca
>ith close to 32
ublic sector ban!s set to
he ban!ing industry will
oyers offering five+seven

)illion% )ndia8s
:1, 721<, showed an
ver the year to M<<2.=
al e(ternal debt during
count of the rise in non+
f ma,or components, the
borrowings continued to
nt of total e(ternal debt,
:.= per cent% and short
RRLSLR6 Ban!ers
ia to include a portion of
e statutory pre+emption
her Cash Reserve Ratio
y Ratio $S*R%, both of
economy6 "s per
nseAuent low real rate of
ay force savers to ta!e
for better returns. )n its
Financial Stability Report, th
domestic growth and high inflation
an adverse effect on the savings
Households8 financial savings as a
/#& declined from about 17O in 722
in 721:+1<. '(penditure on valuabl
about @O to about 12O.

Minis#ry clears #(e air on s
companies% 0he Corporate "ffai
clarified that private companies tha
of foreign parents will not be t
company for the purpose of complia
company law.

SEBI raises #(e )ar on rela#ed p
ew company law $enacted in 7
revised corporate governance fram
effective from 9ctober 1, have clearly
R&0s but it would enhance the tran
of such transactions. 0he new regi
board and shareholders8 approval in
to conform to the new law. 0he big d
now and the erstwhile regime $com
in 1?3=% is that the /overnment will
to play in the approval process
transactions. .nder the new regime,
be approved by an audit committee
reAuired to have such committee
directors and also shareholders.

Arran:emen# )e#$een )anks7 as
firms needs a relook% " spurt in the
reconstruction companies $"RCs%
efforts to clean up their balance s
closer loo! at the e(tant arrangeme
and ban!s. )n 721:+1< $FE1<%,
performing assets $&"s% aggreg
15,222 crore $ around Rs. 12,222
"RCs. "s most of the securitisation
place predominantly with the issu
receipts $SRs% rather than cash, ther
ban!s may tend to use this option t
balance sheets.

NBFCs o"#side re:"la#ory am)i#
financial sys#em% " Shadow Ban!in
/roup carried out a preliminary
tability Report, the RB) said low
h and high inflation continue to have
t on the savings+investment dynamics.
ancial savings as a percentage of the
om about 17O in 722@+25 to about @O
enditure on valuables has risen from

air on s#a#"s of pri>a#e
he Corporate "ffairs -inistry has
ivate companies that are subsidiaries
ents will not be treated as public
e purpose of compliance with the new
n rela#ed par#y #ransac#ions%
law $enacted in 721:% and S'B)8s
te governance framewor! to become
ctober 1, have clearly raised the bar on
ld enhance the transparency Auotient
tions. 0he new regime reAuires both
holders8 approval in certain situations
e new law. 0he big difference between
stwhile regime $company law enacted
the /overnment will now have no role
approval process for related party
regime, R&0s will have to
an audit committee $if a company is
ve such committee%, the board of
so shareholders.
n )anks7 asse# recons#r"c#ion
" spurt in the activities of asset
companies $"RCs% driven by ban!s8
up their balance sheets calls for a
e e(tant arrangements between "RCs
1< $FE1<%, ban!s sold non+
sets $&"s% aggregating about Rs.
around Rs. 12,222 crore in FE1:% to
of the securitisation activity is ta!ing
antly with the issuance of security
ather than cash, there is a concern that
to use this option to evergreen their
#ory am)i# may pose risk #o
" Shadow Ban!ing )mplementation
out a preliminary study of such

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institutions and recommended that they be bro
under some regulation. )t found that there was a
degree of heterogeneity in business models and
profiles across various non+ban!ing Vnancial ent
in the organised as well as the unorganised $infor
sectors. )t also identified Ie(emptedJ provident fu
unregulated chit funds, co+operative and cr
societies and primary agricultural credit societie
groups of institutions that need a greater degre
oversight. 0he current regulations focus only
deposit+ta!ing BFCs and large systemi
important non+deposit ta!ing BFCs. 0hose B
which are below the asset siCe threshold of Rs
crore, are not under the surveillance of the RB).

3o># imposes D.1<L#onne MEP on po#a#o
/overnment has imposed a minimum e(port pric
M<32Ftonne on potatoes to prevent shortage
domestic mar!et and tame rising prices. 0his fol
similar restrictions imposed on onion e(ports
wee!. 0he #/F0 had fi(ed an -'& of M:22 on onio

-el(i 0ni>ersi#y rolls )ack FH0P% )n line with
directive of the ./C, the .niversity of #e
decided to roll bac! the Four Eear .ndergrad

SBI )"siness per employee s"r:es on lar:e
(irin:% 0he State Ban! of )ndia8s business
employee has seen a 31 per cent ,ump in the last
years on the bac! of large+scale recruitment.
productivity or business per employee increased t
12.=< crore as at -arch+end 721< against Rs.
crore as at -arch+end 7211. 0he large
recruitment of /eneration e(t employees in
9fficers and "ssistant grade over the last th
years has brought about a far+reaching attitud
change among staff in their customer interface
services across the branches.

3o># (ikes impor# d"#y on s":ar% 0he /overnm
has hi!ed the import duty on sugar to <2 per cent f
13 per cent to curb inflow of cheaper sweete
/overnment also decided to provide additi
interest+free loans of about Rs. <,<22 crore to the c
starved sugar mills to clear cane payment arr
estimated at around Rs. 11,222 crore. 0he subsid
raw sugar e(ports would be e(tended till Septem
721<. "lso 12 per cent mandatory blending of eth
$a by+product of sugar% with petrol would be allo
against 3 per cent at present. However, all t
decisions were sub,ect to the sugar indus
guarantee that it would clear all arrears.

| www.careerpower.in | www.ca
ed that they be brought
here was a high
usiness models and ris!
Vnancial entities
e unorganised $informal%
mptedJ provident funds,
operative and credit
ltural credit societies as
eed a greater degree of
ulations focus only on
d large systemically
BFCs. 0hose BFCs,
siCe threshold of Rs. 32
illance of the RB).
on po#a#o% 0he
inimum e(port price of
prevent shortage in the
ising prices. 0his follows
on onion e(ports last
-'& of M:22 on onions.
)n line with the
.niversity of #elhi has
ur Eear .ndergraduate
s on lar:eAscale
f )ndia8s business per
ent ,ump in the last four
itment. Staff
mployee increased to Rs.
d 721< against Rs. @.2<
0he large+scale
e(t employees in the
ver the last three to four
reaching attitudinal
customer interface and
0he /overnment
sugar to <2 per cent from
of cheaper sweetener.
to provide additional
. <,<22 crore to the cash+
cane payment arrears
22 crore. 0he subsidy on
e(tended till September
atory blending of ethanol
petrol would be allowed
ent. However, all these
the sugar industryUs
3o># se#s &A$eek deadline for
cons"l#a#ions on Ca)ine# propos
where the notes for the CabinetFCa
are reAuired to be circulated for
consultations, the entire process wil
two wee!s8 time.

FI0 $an#s )anks #o sniff o"#
#ransac#ions% FreAuent operation
and ma!ing loan re+payments in c
reported by ban!s to the financial in
0his is to !eep a tab on suspicious
has advised ban!s to incorporate m
their transaction monitoring system
gets alerts on suspicious transactions

Ho"n:s#ers may :e# an earnin
A/M keepers% "ndhra Ban! pl
individuals and business persons for
efficient management of its "0
graduates and other willing individu
to !eep a watch on "0-s as a sub
security personnel who now man the

RBI se#s #imelines for re:"la#o
has announced timelines for regulat
CitiCens Charter for delivery of ser
approvals that the RB) will grant in ?
principle approval for a privat
appointmentFre+appointment of who
and part+time chairmen in priva
"mong the approvals that the centr
in =2 days include remuneration, bo
Stoc! 9ption &lan of whole+
chairmen of private sector ban!s an
ban!s operating in )ndia. "pprova
finance companies for the issue
Registration $other than Sec
Reconstruction Companies% will be is

A(ead of B"d:e#7 rail fare (iked
From ;une 73, rail travel will becom
per cent and moving goods by ab
'very day, the Railways ferries over
and hauls over 7.5 million tonnes of c
cement, fertiliser and petroleum pro

eadline for in#erAMinis#erial
ne# proposals% )n all the cases
s for the CabinetFCabinet Committees
be circulated for inter+ ministerial
he entire process will be completed in

sniff o"# more s"spicio"s
reAuent operation of loc!er facility
payments in cash will soon be
!s to the financial intelligence agency.
a tab on suspicious transactions. )B"
!s to incorporate more parameters in
n monitoring system so that the F).
spicious transactions.
an earnin: oppor#"ni#y as
"ndhra Ban! plans to rope in
business persons for cost+effective and
gement of its "0-s. .nemployed
ther willing individuals will be as!ed
h on "0-s as a substitute to private
nel who now man these counters.
r re:"la#ory appro>als% RB)
timelines for regulatory approvals and
r for delivery of services. "mong the
he RB) will grant in ?2 days include in+
oval for a private ban! licence,
appointment of whole+time directors,
chairmen in private sector ban!s.
rovals that the central ban! will grant
de remuneration, bonus and 'mployee
+time directors, part+time
vate sector ban!s and C'9s of foreign
"pproval to non+ban!ing
nies for the issue of Certificate of
other than Securitisation and
Companies% will be issued in <3 days.
fare (iked .?7 frei:(# 2!1?%
ail travel will become costlier by 1<.7
oving goods by about =.3 per cent.
ailways ferries over 72 million people
.5 million tonnes of cargo such as coal,
r and petroleum products.

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Ne$ s(are(oldin: norm% 3o># in a )ind on di
s#ake $or#( Rs! 27<<< cr% "bout :3 &S.s $73 C&
nine public sector ban!s and one State+level pu
enterprise% would need to dilute sta!e worth aro
Rs. =1,757 crore. S'B) has said all listed &S.s will h
to maintain 73 per cent minimum public sharehol
as against 12 per cent currently.

MidAsiEed )anks may s#r"::le #o mo)ilise
deposi#s% -id+siCed ban!s will now be ma!ing a
to mobilise more retail deposits and increase liAu
to meet the liAuidity coverage ratio $*CR% reAuirem
prescribed by RB). 0he main ob,ective of *CR i
promote short+term resilience of a ban!8s liAuidity
profile by ensuring that it has sufficient high
liAuid assets to survive a significant stress scen
lasting :2 days.

PS0 )anks la: peers in code implemen#
"ccording to the Ban!ing Codes and Stand
of )ndia, the overall score of public sector ban!s
lower at =?.= against that of all ban!s at @<.7 per
0he overall score of private sector ban!s $@5.7%
foreign ban!s $55.=% was above the all ba
average.0he overall scoring was based on
parameters K information dissemina
transparency, customer centricity, grievance redre
and customer feedbac!.

Ins"rance firms eye #elecom opera#ors #o
prod"c#s% )nsurers have written to the #epartme
Financial Services to allow them to approach
0elecom Regulatory "uthority of )ndia. 0his will
in using the wide distribution networ! of tele
companies to sell basic insurance products, suc
health and personal accident covers. )f the distribu
of insurance products is allowed through tele
operators, then they can sell the products
facilitate premium payments through mobile phon

P"d"c(erry #ops on elemen#ary ed"c
&uducherry with an '#) score of 2.@=7 has toppe
the 'ducational #evelopment )nde( $'#)% for 721:
while .ttar &radesh fared worst at 2.
*a!shadweep, Si!!im, Himachal &radesh
Karnata!a were second, third, fourth and
respectively. 0he inde( is a measurement of
country8s progress in terms of elementary educa
| www.careerpower.in | www.ca
)ind on dil"#in:
bout :3 &S.s $73 C&S's,
level public
lute sta!e worth around
d all listed &S.s will have
um public shareholding
mo)ilise re#ail
ill now be ma!ing a rush
its and increase liAuidity
ratio $*CR% reAuirement
n ob,ective of *CR is to
e of a ban!8s liAuidity ris!
as sufficient high+Auality
gnificant stress scenario
des and Standards Board
public sector ban!s was
ll ban!s at @<.7 per cent.
sector ban!s $@5.7% and
above the all ban!s8
ased on five
ation dissemination,
icity, grievance redressal
pera#ors #o sell
ten to the #epartment of
them to approach the
y of )ndia. 0his will help
ion networ! of telecom
rance products, such as
covers. )f the distribution
llowed through telecom
sell the products and
through mobile phones.

ary ed"ca#ion%
e of 2.@=7 has topped in
e( $'#)% for 721:+1<,
ed worst at 2.<=7.
machal &radesh and
hird, fourth and fifth
a measurement of the
of elementary education.
'#) is calculated using a set
regrouped into four sub
infrastructure, teachers and outcome

Po$er sec#or% A risky asse# f
"ccording to -oody8s )nvestor Serv
will continue to be a source o
public and private sector ban!s in )n
condition of State electricity bo
companies $discoms% do not i
structural reforms.

Crackdo$n on (oarders #ops m
infla#ion% >ith the prices of esse
shooting up, Finance -inister "
announced a series of measures, incl
of fruits and vegetables and releasin
mar!et, to tame inflation. 0he Centr
States to crac! down on hoarder
commodities under active obse

Sops for elec#ronics prod"c#ion
to boost electronics manufacturing
and )nformation 0echnology -inis
&rasad said incentives would be gi
that set up greenfield factories in e
/haCiabad, Badodara, /andhinag
agpur, ashi!, "urangabad and 0h
called -odified Special )ncentive Su
S)&S%, was launched by the .&" /ov
)t provides refunds for investm
e(penditure K 72 per cent in S'Ls a
non+S'Ls. )t also provides for r
countervailing dutyFe(cise for cap
the non+S'L units. &rasad also anno
up of greenfield electronic manufac
Bhopal, Bhubaneshwar, Hyderabad
Bhiwadi, ;abalpur, Hosur and
'lectronic -anufacturing Cluster Sch
in 7217, offers financial assistance th
For greenfield clusters, the assistanc
the pro,ect cost, sub,ect to a ceiling
every 122 acres of land.

-on@# )lame "s for emissions%
Climate Summit 721< to be
September, 'nvironment -inister &
said, Idon8t blame us for carbon emi
country definitely needs to reduce it
and other developing countries also
growJ which can entail some rise i
year, the )ndian delegation, along wi
developing countries, had wal!ed o
ations Climate Change Conferenc
ted using a set of 7< indicators
to four sub+groups K access,
eachers and outcomes.
ky asse# for Indian )anks%
oody8s )nvestor Service, power sector
be a source of asset Auality ris! for
te sector ban!s in )ndia if the financial
State electricity board distribution
scoms% do not improve through
ers #ops meas"res #o #ame
the prices of essential food items
Finance -inister "run ;aitley has
ries of measures, including free trading
getables and releasing rice in the open
0he Centre has also advised
down on hoarders. 0here are 77
under active observation of the
rod"c#ion in 5 ci#ies% )n a bid
nics manufacturing, Communications
n 0echnology -inister Ravi Shan!ar
entives would be given to companies
nfield factories in eight cities namely
dodara, /andhinagar, "hmedabad,
, "urangabad and 0hane. 0he scheme,
Special )ncentive Subsidy Scheme $-+
ched by the .&" /overnment in 7217.
efunds for investments in capital
72 per cent in S'Ls and 73 per cent in
lso provides for reimbursement of
dutyFe(cise for capital eAuipment in
its. &rasad also announced the setting
electronic manufacturing clusters in
neshwar, Hyderabad, -aheshwaram,
lpur, Hosur and Ka!!anad. 0he
facturing Cluster Scheme, also notified
inancial assistance through aid grants.
lusters, the assistance is 32 per cent of
, sub,ect to a ceiling of Rs. 32 crore for
emissions% "head of the .
t 721< to be held in ew Eor! in
ironment -inister &ra!ash ;avade!ar
e us for carbon emissions.J >hile the
ly needs to reduce its emissions, )ndia
loping countries also have a Iright to
some rise in emissions. *ast
delegation, along with more than 122
ntries, had wal!ed out of the .nited
e Change Conference $.CCC% 721:

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held in >arsaw over the refusal of the develo
countries to agree to a mechanism for compensa
for climate change+induced disasters, which affec
developing and least developing countries most.

RBI no# in fa>o"r of #$o s#r"c#"res for re:"la
"ccording to RB) /overnor, Raghuram R
regulators must be given the fle(ibility and freedo
regulate as too much of chec!s and balances c
completely vitiate the fle(ibility afforded.
Financial Sector *egislative Reforms Comm
$FS*RC% report has suggested that almost everyt
the regulator does should be sub,ect to legal appe
has suggested the creation of a Financial Se
"ppellate 0ribunal.

Common ser>ice cen#res #o )e:in sellin
ins"rance% CSC e+/overnance Services )ndia *t
special purpose vehicle floated by the /overnmen
operate common service centres, will begin selling
insurance in about a month8s time. 0he organisa
which operates 1:2,222 common service centre
provide a host of services in rural areas across
country, has tied up with 1< insurers and is wor
on teaming up with the others.

Ins#an# #ransfer f"nds from 0S #o Indian
&un,ab ational Ban! $&B% and asdaA+listed S
Corporation have partnered to roll out instant b
deposit services to ban! accounts in )ndia. 0he ins
money transfer will be done by using the )mmed
&ayment Services $)-&S%, a uniAue remitt
processing platform offered by the ational &aym
Corporation of )ndia. 0hrough this tie+up, money
be transferred instantly by a Soom user from the .
not only ban! accounts held in &un,ab ational B
but to any ban! account in )ndia. "t present, )-&S
=: ban!s $in )ndia% as part of its ecosystem.

S#a#e Bank #o ramp "p POS #erminal ne#$or
will ramp up its point+of+sale $&9S% terminal netw
by 1.72 la!h each year over the ne(t two years. B
install &9S terminals at merchant outlets to facil
acceptance of payments from customers by swi
their debitFcreditFpre+paid cards on the termi
0owards "pril+end, )C)C) Ban! had the lar
networ! of &9S terminals $7,?2,5?5%, followed by
Ban! $7,<@,:?7%, H#FC Ban! $7,17,@<5% and
$1,<2,=75%. "lready, SB) has the largest networ
"0-s $<<,2=7 of "pril+end% in the country. >ith
"0- networ! of SB)8s five "ssociate Ban!s
together, the State Ban! /roup has 31,@3: "0-s.

| www.careerpower.in | www.ca
efusal of the developed
anism for compensation
isasters, which affect the
ng countries most.
s for re:"la#ions%
nor, Raghuram Ra,an,
le(ibility and freedom to
c!s and balances could
(ibility afforded. 0he
e Reforms Committee
d that almost everything
,ect to legal appeal. )t
of a Financial Sector
:in sellin: life
ce Services )ndia *td, a
d by the /overnment to
res, will begin selling life
0he organisation,
mon service centres to
n rural areas across the
insurers and is wor!ing
#o Indian )ank6
listed Soom
to roll out instant ban!
unts in )ndia. 0he instant
by using the )mmediate
a uniAue remittance
by the ational &ayment
up, money can
oom user from the .S to
in &un,ab ational Ban!
dia. "t present, )-&S has
its ecosystem.
nal ne#$ork% SB)
$&9S% terminal networ!
he ne(t two years. Ban!s
hant outlets to facilitate
customers by swiping
cards on the terminals.
Ban! had the largest
?2,5?5%, followed by "(is
n! $7,17,@<5% and SB)
the largest networ! of
in the country. >ith the
e "ssociate Ban!s put
p has 31,@3: "0-s.

Forei:n credi#ors may recall loa
s#ake falls )elo$ 1?6 )f the gove
public sector ban!s drops below
foreign creditors of these ban!s
negotiate the loans or call them bac!

Infla#ion a# 1Amon#( (i:( on r
>holesale price inde( $>&)%+
five+month high of =.21 per cent in
spi!e in food, fuel and manufacture
0his was higher than the <.35 per
same month last year and the 3.7 p

India is poores# in So"#( Asia
"ccording to an 9(ford varsity study
over :<2 million destitute people a
poorest country in South "sia
"fghanistan. Forty per cent of all po
live in )ndia, mostly in rural areas.

RBI :"idelines on liC"idi#y
posi#i>e for )anks6 "ccording to
guidelines on liAuidity standards a
for )ndian ban!s. 0he *CR is des
short+term liAuidity ris! by ensurin
sufficient cash and other liAuid
obligations in a :2+day mar!et stress

Po$er Minis#ry $an#s S#a#
periodically re>ise #ariffs% 0he &ow
State regulators to regularly revise e
that there are no financial outage
companies or distribution utilitie
protect consumers from sudden, st
electricity bills. 0he Central 'lect
Commission $C'RC% underta!es
annually while the tariff determinat
revised every five years.

Sardar Saro>ar% 3",ara#@s )a##le
$ar on canals a(ead% /u,arat /ove
the eight+year+long battle to install
Sardar Sarovar dam on the river
increasing its height by 1@ metr
However, so far, the State /overnme
construction of only 77,75< !m of c
of a total of @7,=7< !m planned. 0hi

y recall loans #o PSBs if 3o>#
6 )f the government8s sta!e in
an!s drops below 31 per cent then
rs of these ban!s may either re+
ans or call them bac!.
(i:( on risin: food prices%
+based inflation touched a
of =.21 per cent in -ay, driven by a
uel and manufactured product prices.
r than the <.35 per cent recorded in
t year and the 3.7 per cent logged in
#( Asia af#er Af:(anis#an6
9(ford varsity study, )ndia is home to
n destitute people and is the second
y in South "sia after strife+torn
rty per cent of all poor in <? countries
tly in rural areas.
liC"idi#y s#andards credi#
6 "ccording to -oody8s, RB)8s
iAuidity standards are credit positive
!s. 0he *CR is designed to address
idity ris! by ensuring that ban!s hold
and other liAuid assets to meet
day mar!et stress scenario.
$an#s S#a#e re:"la#ors #o
0he &ower -inistry wants
to regularly revise electricity tariff so
no financial outages for generation
distribution utilities. 0his will also
ers from sudden, steep hi!es in their
0he Central 'lectricity Regulatory
'RC% underta!es a tariff revision
the tariff determination principles are
a#@s )a##le on (ei:(# $on7 )"#
/u,arat /overnment have won
ong battle to install :2 sluice gates at
dam on the river armada, thereby
height by 1@ metres to 1:5.=5 m.
, the State /overnment had completed
only 77,75< !m of canal networ!, out
=7< !m planned. 0his means, now, the

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/overnment will have to rush through the
construction of nearly 37,:<2+!m+long canal networ!
so that benefits of armada waters could reach across

Cos# infla#ion inde8 raised )y =!<1?% *ast year, the
inde( was 4?:?8, and this year it is 4127<8. 0he inde( is
useful for income+ta( assessees in the computation of
ta( on long+term capital gains $for inde(ation

+is(al Sikka is ne$ Infosys CEO% )n a ma,or brea!
with tradition, )ndiaUs o 7 )0 services firm, )nfosys,
brought in an outsider as its C'9 after !eeping the top
,ob among its co+founders ever since its inception, in

SEBI #o okay C"o#a7 disco"n# for re#ail in>es#ors in
offer for sale% -ar!et regulator S'B) proposes to
reserve for retail investors as much as 12 per cent of
the issue siCe of offer+for+sale $9FS% of shares through
the stoc! e(change platform. "s part of its efforts to
enhance retail investors8 participation in 9FS, S'B)
also intends to allow sellers of shares to offer
discounts to retail investors. For this purpose, retail
investors will be those who bid for amounts less than
Rs. 7 la!h. 0ill date, the 9FS mechanism K launched in
February 7217 K is allowed only for promoters so as
to help them achieve minimum public shareholding in
listed companies.

Ordinance #o empo$er SEBI $ill )ecome an Ac#
soon6 0he 9rdinance to empower S'B) to curb ponCi
scheme, will be converted into "cts during the Budget
session starting ne(t month. S'B) 9rdinance was re+
promulgated by the previous /overnment on -arch
7?. 0he 9rdinance aims to provide more teeth to the
capital mar!et regulator S'B) to act against ponCi and
fraudulent schemes, assessing call data record in
securities related offences besides others.

C(an:e in norms for commodi#y )o"rses%
Commodity mar!et regulator Forward -ar!ets
Commission has amended regulations for corporate
governance and independent director in commodity
e(change. 0he regulator has now aligned the norms in
line with the new Companies "ct.

Infla#ionAlinked )onds #o )e made more a##rac#i>e%
0he proposed features will ma!e sure the retail
investor gets payouts at regular intervals and higher
ta(+ad,usted returns.

AirAsia #akes off7 eyes nonA#r"nk ro"#es% "ir"sia
)ndia became the country8s latest domestic airline.
>ith its maiden flight, "ir"sia )ndia became the
country8s fourth low+cost carrier, after )ndi/o, Spice;et
and /o"ir.

E8por#s pos# do")leAdi:i# :ro$#( in May% '(ports
increased 17.< per cent in -ay $the highest in si(
months % to M75 billion over the same month a year
ago. )mports fell 11.<1 per cent in -ay to M:?.7:
billion. /old imports declined to M7.1? billion,
plummeting @7O from -ay 721:.

India (as #(e po#en#ial #o :ro$ a# 4? ann"ally A
IMF6 0he )-F8s current forecast for )ndia8s /#&
growth for 721<+13 is 3.< per cent, rising to =.: per
cent in 7213+1=. 0he )-F8s optimism on )ndia8s
potential comes on the heels of the >orld Ban!8s 3.3+
per cent growth pro,ection for 721<+13 and =.: per
cent for 7213+1=.

Canara Bank opens Ne$ Hork )ranc(% Canara Ban!
has opened a branch in ew Eor!, the ban!8s seventh
overseas branch after *ondon, *eicester $.K%, Hong
Kong, Shanghai, Bahrain and ;ohannesburg.

IR-A #o la"nc( pilo# on life ins"rance reposi#ory
sys#em% 0his is meant for !eepingFstoring a policy in
digitisedFde+materialised form to enable access as and
when reAuired. #uring the launch, each life insurer
shall convert a minimum of 1,222 or 3 per cent of the
e(isting individual policies $issued in hard form and
currently in force%, whichever is less for each of the
)Rs into electronic form. 'ach life insurer shall also
issue a minimum of 1,222 or 3 per cent of the total
individual policies issued during the launch period,
whichever is lower, in electronic form for each of the
)Rs. )n ;uly 721:, the authority had granted certificates
of registration to five entities to act as insurance

Banks seek e8emp#ion from /-S $(ile sellin:
mor#:a:ed proper#y% Ban!s have sought e(emption
from ta( deducted at source $0#S% when they sell
mortgaged property to recover loans. "ccording to
Section 1?<+)" of the )ncome 0a( "ct, any person,
being a transferee $buyer%, responsible for paying to a
resident transferor $seller%, any sum by way of
consideration for transfer of any immovable property
$other than agricultural land%, is reAuired to deduct an
amount eAual to one per cent of the sum as income
ta(, at the time of credit of the sum to the account of
the transferor. 0#S is not applicable when the
consideration for the transfer of an immovable
property is less than Rs. 32 la!h.

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By &<&17 e>ery se>en#( ne#iEen $ill )e an In
0he country would emerge as a leading player in
virtual world by having @22 million )nternet user
against the <.@ billion global users by 7273. Half o
<.@ billion will come from the emerging countries
by countries li!e )ndia, Cameroon and &a!istan.

PM@s call #o impro>e $ork c"l#"re e8#en
)ankin: sec#or% &rime -inister8s fiat to Cen
ministries and departments to ensure Iimproved w
culture and wor! environmentJ has been e(tende
all financial sector regulators, chiefs of public se
ban!s, financial institutions and public se
insurance companies. Finance -inistry has adv
ban!s to initiate immediate action to improve w
culture and wor! environment in all their off
branches, premises or any other spaces in t
organisation. "s part of this e(ercise, the min
wants the wor!space cleared and spruced up
filedFpapers neatly stac!ed so that a positive w
environment is created. 0he financial sector regula
and financial intermediaries are reAuired to ide
forms that are in vogue and shorten them to one p
For Auic! turnaround in decisions, the ministry
decision+ma!ing layers should be whittled down
ma(imum of four. 0he entire organisation sh
wor! as a team, with every level being encourage
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$ill )e an Indian%
s a leading player in the
million )nternet users as
sers by 7273. Half of the
emerging countries, led
oon and &a!istan.
#"re e8#ends #o
nister8s fiat to Central
ensure Iimproved wor!
ntJ has been e(tended to
s, chiefs of public sector
s and public sector
ce -inistry has advised
action to improve wor!
ent in all their offices,
other spaces in their
s e(ercise, the ministry
d and spruced up and
so that a positive wor!
inancial sector regulators
are reAuired to identify
horten them to one page.
isions, the ministry said
d be whittled down to a
ire organisation should
evel being encouraged to
provide inputs and value+addition.
well as the financial intermediaries h
ensure effective and timely reso
grievances. )n the case of financial
the ministry wants them to identify a
processes and even archaic laws, wh
and not lead to any loss of efficiency
be repealed. 0here are five financial
K Reserve Ban! of )ndia, Securiti
Board of )ndia, )nsurance
#evelopment "uthority, &ension Fun
#evelopment "uthority, and F
Commission K in the country.

Recei>in: money from a)road
Ban! of )ndia $SB)% plans to launch
the beneficiaries of foreign remittan
withdraw money easily. " on
a deposit account with an overseas
needs to give instructions using
ban!ing to load his !in8s pre
reAuired funds. )n turn, the benefi
withdraw cash from any of SB)8s <:
the country using the card. 9nline r
entail any documentation as the R)
SB)8s customerH the money tra
instantaneousH and be relatively easy
poc!et in terms of charges vis
companies. "ccording to a >orld Ba
recipients of remittances for 721:
billion%, China $M=2 billion%, the
billion%, -e(ico $M77 billion%, igeria

Sid)i reposi#ionin: i#self #o f"lfil
MSMEs% 0he Small )ndustries #eve
)ndia $Sidbi% has Ceroed in on fou
niche financing. 0hese include fina
ris! capital, services sector, and
development of the -S-' sector.

Banks "l#ima#"m #o 0ni#ed Spiri
from )oard or no credi#% 0he ban!
Sprits that not only will no fresh lo
.nited Spirits, but even the e(is
company may be recalled if -allya c
the company8s board.

addition. 0he regulators as
cial intermediaries have been as!ed to
e and timely resolution of public
he case of financial sector regulators,
nts them to identify at least 12 rules or
ven archaic laws, which are redundant
any loss of efficiency, so that they can
ere are five financial sector regulators
! of )ndia, Securities and '(change
dia, )nsurance Regulatory and
uthority, &ension Fund Regulatory and
"uthority, and Forward -ar!ets
in the country.

m a)road made easy% State
B)% plans to launch pre+paid cards for
s of foreign remittances to receive and
ly. " on+Resident )ndian having
nt with an overseas SB) branch, only
instructions using internetFmobile
d his !in8s pre+paid card with the
)n turn, the beneficiary in )ndia can
any of SB)8s <:,322 "0-s across
g the card. 9nline remittance will not
entation as the R) would already be
rH the money transfer would be
nd be relatively easy on the remitter8s
of charges vis+R+vis other remittance
rding to a >orld Ban! report, the top
emittances for 721: are )ndia $M@1
$M=2 billion%, the &hilippines $M7=
$M77 billion%, igeria $M71 billion%.
self #o f"lfil financial needs of
all )ndustries #evelopment Ban! of
s Ceroed in on four or five areas of
. 0hese include financing receivables,
ervices sector, and for sustainable
the -S-' sector.
ni#ed Spiri#s% Remo>e Mallya
0he ban!s have told .nited
only will no fresh loans be granted to
but even the e(isting debt to the
recalled if -allya continues to be on

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Po$er Minis#er plans #o roll o"# 3",ara#@s ;yo#i
3ram sc(eme a# #(e na#ional le>el% .nion &ower
-inister &iyush /oyal has said that he plans to
replicate /u,arat8s flagship scheme of ;yoti /ram
Eo,ana $;/E%, which is aimed at providing 7<+hour
electricity to non+agriculture consumers in the State.
;/E, announced in 722:, was aimed at ma!ing
available :+phase Auality power supply for 7<+hours
to all the villages and their hamlets for non+
agricultural activities. 0he scheme provides for a
separate electric feeder for domestic use. )t also
provides limited but Auality supply of power to
agriculture for about eight hours a day.

RBI allo$s forei:n in>es#ors #o in>es# on
repa#ria#ion )asis% RB) has allowed a host of foreign
investors to invest, on repatriation basis, in non+
convertibleF redeemable preference shares or
debentures issued by an )ndian company and listed on
recognised stoc! e(changes in )ndia. 0his investment
will be within the overall limit of M31 billion
earmar!ed for corporate debt. 0he investors who can
invest in non+convertibleF redeemable preference
shares or debentures include F))s, Aualified foreign
investors deemed as registered Foreign &ortfolio
)nvestors. *ong+term investors registered with S'B) G
Sovereign >ealth Funds, -ultilateral "gencies,
&ensionF )nsuranceF 'ndowment Funds, foreign
Central Ban!sK too will be considered as eligible

&<. EXAM