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FINANCIAL NEWS IN A NUT SHELL

Yatheendradas C.k. at 05:38 AM - Jul 01, 2017 ( ) Views: 400

In a meeng
with industry chambers ahead of
midnight launch of GST, Jaitley asked them to
ensure that all benefits arising due to
implementaon
of GST from July 1, 2017, are
passed on to the consumers in a transparent
manner.
‐Moneycontrol.com


All banking services such as ATM withdrawals,
cheque book issuance, demand dras
and cash
deposits will get costlier from July 1 with the
implementaon
of GST. Under GST, financial
services have been put under the 18% slab,
whereas currently customers pay 15% service tax
for them. As the historic tax reform is set to be
passed, banks, insurance firms and financial
instuons
will pass on the enre
3% hike to
their customers.
‐Economic Times


The Government has reduced interest rates on
small saving schemes, including the PPF, NSCs
and Kisan Vikas Patra by 10 basis points. PPF
and NSCs will now earn 7.8%, while KVPs will
fetch only 7.5%. Prior to this rate cut, PPF,
NSC and KVP were offering 7.9%, 7.9% and 7.6%
respecvely.
The Senior Cizen’s
Savings Scheme
and Sukanya Samriddhi Yojana will now offer
8.3%. Both Senior Cizen’s
Savings Scheme and
Sukanya Samriddhi Yojana were earlier offering
8.4%.
‐Economic Times


The RBI today warned that asset quality of banks
connued
to remain weak with gross NPAs rising
to 9.6% in the year to March 2017 and may rise to
10.2% by next March.
‐Moneycontrol.com
The RBI said a payment bank, which acts as a
Business Correspondent (BC) of other banks and
has sweep out arrangements with them, can
facilitate withdrawals and transfers by the
customer from his/her account with the other
bank of which it is the BC. Under the BC
arrangement and with prior specific or general
consent of the customer, PB may effect the
transfer of funds deposited by the customer into
the customer’s account with another eligible
bank, so that the balance in his/her account with
the PB does not exceed ₹1 lakh or any such lower
amount as specified by him/her. PBs are
permied
to make arrangements with a
scheduled commercial bank / small finance bank,
for amounts in excess of the prescribed limits, to
be swept into an account opened for the
customer at that bank.
‐Business Line


RBI has issued an advisory to general public
against deposing
money in co‐operave
sociees
or primary co‐operave
credit sociees
( PACS).
"Such co‐operave
sociees
have
neither been issued any licence under Banking
Regulaon
Act, 1949 (As Applicable to
Cooperave
Sociees)
nor are they authorized for
doing banking business,
" RBI said.
‐Economic Times


The RBI flagged the rapid proliferaon
of frauds in the banking space over the last 5
years marking out a 19% increase in the number
of fraudulent incidents and 72% increase in the
value of the amount lost in the aacks.
Around
86% of the frauds reported in 2016‐17 was in the
space of various credit accounts, said RBI.
‐Economic Times


SBI has wrien
a leer
to the finance ministry
raising concerns over the stringent provisioning
norms for companies under the Bankruptcy Code,
which will eat into its profit margins. The bank is
reluctant to meet these norms and has sought
the ministry’s intervenon
on the maer.
‐Economic Times


Essar Steel’s insolvency proceedings could turn
into a test case for India’s bankruptcy framework
with lenders differing on the choice of the
so‐called interim resoluon
professional (IRP),
the enty
that will oversee the exercise,
according to sources with knowledge of with the
maer.
One of these is an unsecured lender and
has apparently broken with the other banks and
opted to pursue its case separately.
‐Economic Times


Dena Bank has cut MCLR by 0.05% for select
maturity periods with effect from tomorrow. For
3‐months, 6‐months and one year tenors, the
new MCLR rates will be 8.35%, 8.45% and 8.55%.
‐Moneycontrol.com


Indian Overseas Bank said that around 46%
reducon
in its net loss during the second half of
the financial year 2016‐17 (FY17) was an
indicaon
that correcve
acons
taken by the
bank were yielding results.
‐Business Standard


With rising concerns on addional
provisionings
to be made on accounts headed for
insolvency, Axis Bank said it has exposure to
eight of the 12 companies named by the
regulator and has already set aside adequate
money for the same.
‐Economic Times


To prepare MSMEs for migraon
to the new GST
system, YES Bank along with YES Global Instute
has launched a tailor‐made programme for
MSMEs. The bank has iniated
the programme
on the back of findings of its naonwide
survey
with 100 MSMEs.
‐Business Line


The UAE Exchange and Financial Services Ltd has
applied for a universal banking license in India,
becoming the first enty
to seek it aer
RBI
opened the door for on‐tap license last
August. The non‐banking company is in the
business of foreign exchange, outward
remiance,
money transfer, gold loan, insurance
and share trading.
‐Economic Times


Vijay Mallya had no intenon
of honouring a
personal guarantee he had given to IDBI Bank,
even before his now defunct private carrier
allegedly got involved in a loan default worth Rs
900 crore, according to a supplementary
chargesheet filed in the case by the CBI. In the
chargesheet filed last week in a Mumbai court
against Mallya, and officials of Kingfisher Airlines
and IDBI Bank, the CBI has sought to support its
charge with a copy of an email allegedly sent by
Mallya on January 6, 2012, to United Spirits
Limited (USL).
‐Indian Express


In a boost to India’s infrastructure development
programme, the Asian Development Bank (ADB)
commied
to invesng
$10 billion in the country
over the next five years. The investment, part of
ADB’s new strategy for India, was announced by
the mullateral
agency’s president Takehiko
Nakao in New Delhi.
‐Livemint


Rich farmers will be blocking a substanal
coverage of the farm loan waiver scheme in
Maharashtra, as only 1% of all defaulng
farmers
account for 46% of total amount owed to
banks.Only 17% of overall defaulng
farmers in
Maharashtra account for
46 % of total amount owed to banks in the rural
sector, as per a report in The Times of India. This
could mean the rich farmers will corner a chunk
of the farm loan waivers in the state.
‐Moneycontrol.com


Mutual funds have to work on due diligence
pracces
before picking up corporate bonds and
should not just rely only on credit rangs
given
the rising defaults, SEBI chairman warned.
‐Hindustan Times


The Centre’s fiscal deficit rose to ₹3,73,361 crore
or 68.3%of the full year target ll
May 2017.
However, the revenue deficit rose to ₹3,23,478
crore, surpassing the full year target by 0.5%
during May 2017 itself.This was driven by higher
expenditure that rose to ₹4,59,026 crore or 21.4%
of the total budgeted expenditure for the full
financial year 2017‐2018.
‐Business Line


The income tax department has said permanent
account numbers that are not linked
toAadhaar by July 1 will not be cancelled,
stepping in to calm the panic caused by a
noficaon
issued on Wednesday.
“There is no
need for any panic. PAN will not become invalid
aer
June 30,
” chairman of CBDT toldThe board
will nofy
a date later on when PAN without
Aadhaar will not be valid, he said.
‐Economic Times


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