NEWS /ECONOMY - ARCHIVES 0F 2017-18 |
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GDP GROWTH REVISED TO 8.2 % IN 2016-17 AND 7.2 % IN 2017-18 : STATISTICAL MINISTRY
DATED 01.12.2018 : According to press release of Department of Statistics , Government of India released on 31.01.2019 , Gross Domestic Product ( GDP ) for the financial year 2016-17 is upwardly revised to 8.2 % and to 7.2 % during financial year 2017-18 . The earlier estimates were 7.1 % for fy 2016-17 and 6.7 % for fy 2017-18 .
As the per the first revised estimate released by the ministry , Real GDP or GDP at constant ( 2011-12 ) stood at Rs 122.98 lakh crores and Rs 131.80 lakh crores during fy 2016-17 and 2017-18 respectively .
To read the complete report , CLICK HERE
DATED 01.12.2018 : According to press release of Department of Statistics , Government of India released on 31.01.2019 , Gross Domestic Product ( GDP ) for the financial year 2016-17 is upwardly revised to 8.2 % and to 7.2 % during financial year 2017-18 . The earlier estimates were 7.1 % for fy 2016-17 and 6.7 % for fy 2017-18 .
As the per the first revised estimate released by the ministry , Real GDP or GDP at constant ( 2011-12 ) stood at Rs 122.98 lakh crores and Rs 131.80 lakh crores during fy 2016-17 and 2017-18 respectively .
To read the complete report , CLICK HERE
RETAIL INFLATION FALLS TO 18 MONTH LOW IN DECEMBER 2018 : STATISTICAL MINISTRY
DATED 15.01.2019 : According to press release of Department of Statistics , Government of India released on 14.01.2019 , Inflation rate as measured by Consumer Price Index ( CPI ) reduced to 2.19 % ( provisional ) in December 2018 compared to the figure of 2.33 % ( final ) of previous month November 2018 . CPI for December 2018 is also lower than the last year CPI of 5.21 % for December 2017 . The rate is much below the midterm range of 4 % set by Reserve Bank of India .
To read the Press Release of the ministry , CLICK HERE
DATED 15.01.2019 : According to press release of Department of Statistics , Government of India released on 14.01.2019 , Inflation rate as measured by Consumer Price Index ( CPI ) reduced to 2.19 % ( provisional ) in December 2018 compared to the figure of 2.33 % ( final ) of previous month November 2018 . CPI for December 2018 is also lower than the last year CPI of 5.21 % for December 2017 . The rate is much below the midterm range of 4 % set by Reserve Bank of India .
To read the Press Release of the ministry , CLICK HERE
INDUSTRIAL PRODUCTION SHOWS DISMAL GROWTH OF 0.5 % DURING NOVEMBER 2018 : STATISTICAL MINISTRY
DATED 12.01.2019 : According to press release of Department of Statistics , Government of India released on 11.01.2019 , Index of Industrial Production ( IIP ) has shown a growth of 0.5 % for the month of November 2018 compared with the corresponding month of previous year ( November 2017 ) . The cumulative growth for the current financial year from April 18 to November 18 is higher by 5.0% compared with the same period previous year ( April 17 to November 17 ) .
The quick estimate of IIP with base 2011-12 stood at 126.4 for the month of November 2018 against 125.8 at November 2017 .
To read the Press Release of the ministry , CLICK HERE
DATED 12.01.2019 : According to press release of Department of Statistics , Government of India released on 11.01.2019 , Index of Industrial Production ( IIP ) has shown a growth of 0.5 % for the month of November 2018 compared with the corresponding month of previous year ( November 2017 ) . The cumulative growth for the current financial year from April 18 to November 18 is higher by 5.0% compared with the same period previous year ( April 17 to November 17 ) .
The quick estimate of IIP with base 2011-12 stood at 126.4 for the month of November 2018 against 125.8 at November 2017 .
To read the Press Release of the ministry , CLICK HERE
RETAIL INFLATION REDUCES IN OCTOBER 2018 : STATISTICAL MINISTRY
DATED 13.12.2018 : According to press release of Department of Statistics , Government of India released on 12.12.2018 , Inflation rate as measured by Consumer Price Index ( CPI ) reduced to 2.33 % ( provisional ) in November 2018 compared to the figure of 3.38 % ( final ) of previous month October 2018 . CPI for November 2018 is also lower than the last year CPI of 4.88 % for November 2017 . The rate is below the midterm range of 4 % set by Reserve Bank of India .
To read the Press Release of the ministry , CLICK HERE
DATED 13.12.2018 : According to press release of Department of Statistics , Government of India released on 12.12.2018 , Inflation rate as measured by Consumer Price Index ( CPI ) reduced to 2.33 % ( provisional ) in November 2018 compared to the figure of 3.38 % ( final ) of previous month October 2018 . CPI for November 2018 is also lower than the last year CPI of 4.88 % for November 2017 . The rate is below the midterm range of 4 % set by Reserve Bank of India .
To read the Press Release of the ministry , CLICK HERE
INDUSTRIAL PRODUCTION GROWS AT A ROBUST 8.1 % DURING OCTOBER 2018 : STATISTICAL MINISTRY
DATED 13.12.2018 : According to press release of Department of Statistics , Government of India released on 12.12.2018 , Index of Industrial Production ( IIP ) has shown a growth of 8.1% for the month of October 2018 compared with the corresponding month of previous year ( October 2017 ) . The cumulative growth for the current financial year from April 18 to October 18 is higher by 5.6 % compared with the same period previous year ( April 17 to October 17 ) .
The quick estimate of IIP with base 2011-12 stood at 132.4 for the month of October 2018 against 122.5 at October 2017 .
To read the Press Release of the ministry , CLICK HERE
DATED 13.12.2018 : According to press release of Department of Statistics , Government of India released on 12.12.2018 , Index of Industrial Production ( IIP ) has shown a growth of 8.1% for the month of October 2018 compared with the corresponding month of previous year ( October 2017 ) . The cumulative growth for the current financial year from April 18 to October 18 is higher by 5.6 % compared with the same period previous year ( April 17 to October 17 ) .
The quick estimate of IIP with base 2011-12 stood at 132.4 for the month of October 2018 against 122.5 at October 2017 .
To read the Press Release of the ministry , CLICK HERE
CONSUMER CONFIDENCE DECLINES IN NOV 2018 : RBI
DATED 07.12.2018 : According to survey conducted by Reserve bank of India in 13 major cities across India , Consumer Confidence of the public on General economic condition , employment scenerio and the overall price situation continues to be on decline in November 2018 also .
Consumer Confidence Index ( CCP ) declined to 93.9 in November 2018 from 94.8 in September 2018 .
The survey was conducted by RBI in Ahemdabad , Bengaluru , Bhopal , Chennai , Delhi , Gawhati , Hyderabad , Jaipur , Kolkatta , Lucknow , Mumbai , Patna and Thiruvananthapuram . Totally 5326 respondents participated in the survey .
CCP which was above 110 in November 2014 is on a declining trend for the past 4 years and now is at 93.9
To read complete survey Report , CLICK HERE
DATED 07.12.2018 : According to survey conducted by Reserve bank of India in 13 major cities across India , Consumer Confidence of the public on General economic condition , employment scenerio and the overall price situation continues to be on decline in November 2018 also .
Consumer Confidence Index ( CCP ) declined to 93.9 in November 2018 from 94.8 in September 2018 .
The survey was conducted by RBI in Ahemdabad , Bengaluru , Bhopal , Chennai , Delhi , Gawhati , Hyderabad , Jaipur , Kolkatta , Lucknow , Mumbai , Patna and Thiruvananthapuram . Totally 5326 respondents participated in the survey .
CCP which was above 110 in November 2014 is on a declining trend for the past 4 years and now is at 93.9
To read complete survey Report , CLICK HERE
GDP GROWS AT SLOWER AT 7.1 % DURING QUARTER ENDING SEPT 2018 : STATISTICAL MINISTRY
DATED 01.12.2018 : According to press release of Department of Statistics , Government of India released on 30.11.2018 , Gross Domestic Product ( GDP ) has shown a growth of 7.1% for the second quarter ( Q2 ) ending September 2018 compared with the corresponding month of previous quarter ending september 2017 .
GDP at Constant (2011-12) Prices in Q2 of 2018-19 is estimated at `33.98 lakh crore by the ministry , as against `31.72lakh crore in Q2 of 2017-18, showing a growth rate of 7.1 percent. Quarterly GVA (Basic Price) at Constant (2011-2012) Prices for Q2 of 2018-19 is estimated at `31.40 lakh crore, as against `29.38lakh crore in Q2 of 2017-18, showing a growth rate of 6.9 percent over the corresponding quarter of previous year.
The Economic Activities which registered growth of over 7 percent in Q2 of 2018-19 over Q2 of 2017-18 are ‘Manufacturing, ‘Electricity, Gas, Water Supply & Other Utility Services’‘Construction’ and‘Public Administration, Defence and Other Services’. The growth in the ‘Agriculture, Forestry and Fishing’, ‘Mining and Quarrying’, ‘Trade, Hotels, Transport, Communication and Services related to Broadcasting’ and Financial, Real Estate and Professional Services is estimated to be 3.8 percent, (-) 2.4 percent, 6.8 percent, and 6.3 percent .
The GDP growth of 7.1 % for q2 is much lower than 8.2% estimated for q1 of the current financial year .
To read the Press Release of the ministry , CLICK HERE
DATED 01.12.2018 : According to press release of Department of Statistics , Government of India released on 30.11.2018 , Gross Domestic Product ( GDP ) has shown a growth of 7.1% for the second quarter ( Q2 ) ending September 2018 compared with the corresponding month of previous quarter ending september 2017 .
GDP at Constant (2011-12) Prices in Q2 of 2018-19 is estimated at `33.98 lakh crore by the ministry , as against `31.72lakh crore in Q2 of 2017-18, showing a growth rate of 7.1 percent. Quarterly GVA (Basic Price) at Constant (2011-2012) Prices for Q2 of 2018-19 is estimated at `31.40 lakh crore, as against `29.38lakh crore in Q2 of 2017-18, showing a growth rate of 6.9 percent over the corresponding quarter of previous year.
The Economic Activities which registered growth of over 7 percent in Q2 of 2018-19 over Q2 of 2017-18 are ‘Manufacturing, ‘Electricity, Gas, Water Supply & Other Utility Services’‘Construction’ and‘Public Administration, Defence and Other Services’. The growth in the ‘Agriculture, Forestry and Fishing’, ‘Mining and Quarrying’, ‘Trade, Hotels, Transport, Communication and Services related to Broadcasting’ and Financial, Real Estate and Professional Services is estimated to be 3.8 percent, (-) 2.4 percent, 6.8 percent, and 6.3 percent .
The GDP growth of 7.1 % for q2 is much lower than 8.2% estimated for q1 of the current financial year .
To read the Press Release of the ministry , CLICK HERE
FITCH RETAINS INDIAN SOVEREIGN RATING :
Dated 16.11.2018 : International Credit rating agency M/S Fitch Ratings kept India's sovereign credit rating BBB- unchanged with stable outlook as per their announcement dated 15.11.2018 . The rating corresponds to the level of " Lower Middle " grade . The outlook remains "Stable " . Fitch had upgraded India's rating to BBB- Stable from BB+ last in August 2006 and has kept the rating unchanged for the last twelve years .
The Fitch has mapped its decision to keep the rating unchanged to balance between weak financial sector and strong medium term growth outlook .
To read the Fitch Ratings announcement text and full report , CLICK HERE
Dated 16.11.2018 : International Credit rating agency M/S Fitch Ratings kept India's sovereign credit rating BBB- unchanged with stable outlook as per their announcement dated 15.11.2018 . The rating corresponds to the level of " Lower Middle " grade . The outlook remains "Stable " . Fitch had upgraded India's rating to BBB- Stable from BB+ last in August 2006 and has kept the rating unchanged for the last twelve years .
The Fitch has mapped its decision to keep the rating unchanged to balance between weak financial sector and strong medium term growth outlook .
To read the Fitch Ratings announcement text and full report , CLICK HERE
RETAIL INFLATION REDUCES IN OCTOBER 2018 : STATISTICAL MINISTRY
DATED 13.11.2018 : According to press release of Department of Statistics , Government of India released on 12.11.2018 , Inflation rate as measured by Consumer Price Index ( CPI ) reduced to 3.31 % ( provisional ) in October 2018 compared to the figure of 3.70 % ( final ) of previous month September 2018 . CPI for October 2018 is also lower than the last year CPI of 3.58 for October 2017 . The rate is below the midterm range of 4 % set by Reserve Bank of India .
To read the Press Release of the ministry , CLICK HERE
DATED 13.11.2018 : According to press release of Department of Statistics , Government of India released on 12.11.2018 , Inflation rate as measured by Consumer Price Index ( CPI ) reduced to 3.31 % ( provisional ) in October 2018 compared to the figure of 3.70 % ( final ) of previous month September 2018 . CPI for October 2018 is also lower than the last year CPI of 3.58 for October 2017 . The rate is below the midterm range of 4 % set by Reserve Bank of India .
To read the Press Release of the ministry , CLICK HERE
INDUSTRIAL PRODUCTION GROWS AT 4.5 % DURING SEPTEMBER 2018 : STATISTICAL MINISTRY
DATED 13.11.2018 : According to press release of Department of Statistics , Government of India released on 12.11.2018 , Index of Industrial Production ( IIP ) has shown a growth of 4.5% for the month of September 2018 compared with the corresponding month of previous year ( September 2017 ) . The cumulative growth for the current financial year from April 18 to September 18 is higher by 5.1 % compared with the same period previous year ( April 17 to September 17 ) .
The quick estimate of IIP with base 2011-12 stood at 128.6 for the month of September 2018 against 123.10 at September 2017 .
To read the Press Release of the ministry , CLICK HERE
DATED 13.11.2018 : According to press release of Department of Statistics , Government of India released on 12.11.2018 , Index of Industrial Production ( IIP ) has shown a growth of 4.5% for the month of September 2018 compared with the corresponding month of previous year ( September 2017 ) . The cumulative growth for the current financial year from April 18 to September 18 is higher by 5.1 % compared with the same period previous year ( April 17 to September 17 ) .
The quick estimate of IIP with base 2011-12 stood at 128.6 for the month of September 2018 against 123.10 at September 2017 .
To read the Press Release of the ministry , CLICK HERE
RETAIL INFLATION MARGINALLY INCREASES : STATISTICAL MINISTRY
DATED 15.10.2018 : According to press release of Department of Statistics , Government of India released on 12.10.2018 , Inflation rate as measured by Consumer Price Index ( CPI ) raised marginally to 3.77 % in September 2018 compared to the figure of 3.69 % of previous month August 2018 . CPI for September 2018 is also above the last year CPI of 3.28 for September 2017 . The rate is below the midterm range of 4 % set by Reserve Bank of India .
To read the Press Release of the ministry , CLICK HERE
DATED 15.10.2018 : According to press release of Department of Statistics , Government of India released on 12.10.2018 , Inflation rate as measured by Consumer Price Index ( CPI ) raised marginally to 3.77 % in September 2018 compared to the figure of 3.69 % of previous month August 2018 . CPI for September 2018 is also above the last year CPI of 3.28 for September 2017 . The rate is below the midterm range of 4 % set by Reserve Bank of India .
To read the Press Release of the ministry , CLICK HERE
INDUSTRIAL PRODUCTION GROWS AT 4.3 % DURING AUGUST 2018 : STATISTICAL MINISTRY
DATED 15.10.2018 : According to press release of Department of Statistics , Government of India released on 12.10.2018 , Index of Industrial Production ( IIP ) has shown a growth of 4.3% for the month of August 2018 compared with the corresponding month of previous year ( August 2017 ) . The cumulative growth for the current financial year from April 18 to August 18 is higher by 5.2 % compared with the same period previous year ( April 17 to August 17 ) .
The quick estimate of IIP with base 2011-12 stood at 127.4 for the month of August 2018 against 122.10 at August 2017 .
To read the Press Release of the ministry , CLICK HERE
DATED 15.10.2018 : According to press release of Department of Statistics , Government of India released on 12.10.2018 , Index of Industrial Production ( IIP ) has shown a growth of 4.3% for the month of August 2018 compared with the corresponding month of previous year ( August 2017 ) . The cumulative growth for the current financial year from April 18 to August 18 is higher by 5.2 % compared with the same period previous year ( April 17 to August 17 ) .
The quick estimate of IIP with base 2011-12 stood at 127.4 for the month of August 2018 against 122.10 at August 2017 .
To read the Press Release of the ministry , CLICK HERE
RUPEE TOUCHES ALL TIME NEW LOW , MARKETS DIVE WHILE RBI KEEPS REPO RATE UNCHANGED
DATED 05 .010 .2018 : As Mr Urjit Patel , Governor Reserve Bank of India announced no change in Repo Rate and no change in key interest rates while announcing fourth bi-monthly monetary policy in today's press conference in the afternoon , Indian rupee touched historical new low of Rs 74.21 and stock markets dropped drastically . Sensex dropped around 792 points to 34, 217 and NIFTY dropped by 335 points to 10,263 .
Yesterday ( 04.10.2018 ) , Mr Arun Jaitley , finance minister had announced a relief of Rs 2.5 per letre to the petrol / diesel customers . Government of India reduced central excise by Rs 1.50 per litre for both petrol / diesel and it asked oil companies to bear Rs 1.00 / per litre themselves . Added to the excise reduction , many state governments reduced their taxes by another Rs 2.50 per litre .
DATED 05 .010 .2018 : As Mr Urjit Patel , Governor Reserve Bank of India announced no change in Repo Rate and no change in key interest rates while announcing fourth bi-monthly monetary policy in today's press conference in the afternoon , Indian rupee touched historical new low of Rs 74.21 and stock markets dropped drastically . Sensex dropped around 792 points to 34, 217 and NIFTY dropped by 335 points to 10,263 .
Yesterday ( 04.10.2018 ) , Mr Arun Jaitley , finance minister had announced a relief of Rs 2.5 per letre to the petrol / diesel customers . Government of India reduced central excise by Rs 1.50 per litre for both petrol / diesel and it asked oil companies to bear Rs 1.00 / per litre themselves . Added to the excise reduction , many state governments reduced their taxes by another Rs 2.50 per litre .
RUPEE TOUCHES ALL TIME LOW OF RS 72.97 AGAINST USD WHILE PETROL PRICES REACH ALL TIME HIGH
DATED 19.09.2018 : Indian rupee touched historical day end low of Rs 72.97 per USD on 18.09.2018 down 46 paise from the previous day end price of Rs 72. 51 against dollar . Rupee is 13.50 % down compared on an year to year basis .
Coinciding with the rupee fall , Petrol prices recorded all time high of above Rs 91 per liter in many Maharashtra towns while Mumbai retail price was Rs 89.54 on 18.09.2018 . It was Rs 84.01 in Kolkatta , 85.41 in Chennai , Rs 82.16 in Delhi and Rs 82.82 in Bengaluru on 18.09.2018 . Bengaluru was only city where retail prices of petrol dropped due to cut in taxes by the state government .
For the prices of petrol in various cities , CLICK HERE
RETAIL INFLATION COOLS : STATISTICAL MINISTRY
DATED 14.09.2018 : According to press release of Department of Statistics , Government of India released on 12.09.2018 , Inflation rate as measured by Consumer Price Index ( CPI ) cooled to 3.69 % in August 2018 compared to the figure of 4.17% of previous month July 2018 . However it is above the last year CPI of 3.28 for August 2017 . The rate is below the midterm range of 4 % set by Reserve Bank of India .
To read the Press Release of the ministry , CLICK HERE
DATED 14.09.2018 : According to press release of Department of Statistics , Government of India released on 12.09.2018 , Inflation rate as measured by Consumer Price Index ( CPI ) cooled to 3.69 % in August 2018 compared to the figure of 4.17% of previous month July 2018 . However it is above the last year CPI of 3.28 for August 2017 . The rate is below the midterm range of 4 % set by Reserve Bank of India .
To read the Press Release of the ministry , CLICK HERE
INDUSTRIAL PRODUCTION GROWS AT 6.6 % DURING JULY 2018 : STATISTICAL MINISTRY
DATED 14.09.2018 : According to press release of Department of Statistics , Government of India released on 12.09.2018 , Index of Industrial Production ( IIP ) has shown a growth of 6.6% for the month of July 2018 compared with the corresponding month of previous year ( July 2017 ) . The cumulative growth for the current financial year from April 18 to July 18 is higher by 5.4 % compared with the same period previous year ( April 17 to July 17 ) .
The quick estimate of IIP with base 2011-12 stood at 125.8 for the month of JulY 2018 against 118 at July 2017 .
To read the Press Release of the ministry , CLICK HERE
DATED 14.09.2018 : According to press release of Department of Statistics , Government of India released on 12.09.2018 , Index of Industrial Production ( IIP ) has shown a growth of 6.6% for the month of July 2018 compared with the corresponding month of previous year ( July 2017 ) . The cumulative growth for the current financial year from April 18 to July 18 is higher by 5.4 % compared with the same period previous year ( April 17 to July 17 ) .
The quick estimate of IIP with base 2011-12 stood at 125.8 for the month of JulY 2018 against 118 at July 2017 .
To read the Press Release of the ministry , CLICK HERE
RUPEE TOUCHES NEW LOW AGAINST USD
DATED 12.09.2018 : Indian rupee touched historical low of Rs 72.91 per USD on 11.09.2018 before recovering to Rs 72.80 .
PARLIAMENTARY COMMITTEE ASKS RBI TO RESTORE LOU : MEDIA
DATED 07.08.2018 : The Parliamentary Standing Committee on Commerce has asked Reserve Bank of India to restore Letter of Undertakings ( LOU ) in a report tabled by it in Rajyasabha , as per media reports .
Reserve Bank of India had disallowed the practice of issuing LOUs in March 2018 , in the wake of large scale fraud happened in public sector lender Punjab National Bank . Punjab National Bank lost more than Rs 13,000 crores in the fraud said to be perpetuated by an officer in collusion with a group of diamond trading companies . Now the committee has noted that the sudden knee jerk reaction of RBI without consulting all the stake holders has raised the cost of credit by 2% to 2.5 % . Committee has alleged that RBI acted in haste without giving much thought and consideration while banning the LOU .
The committee has noted that the efficacy of Letter of Credits ( LC ) and Letter of Undertakings ( LOU ) was unmatched as a source of cheap overseas credit and they are accepted worldwide . It also has noted that cost effectiveness of India's imports have been adversely affected by such ban on LOUs . Further committee has expressed fear over job loss specially in MSME sector , because of the move by RBI . Hence the committee has recommended restoration of LOU with proper safeguards .
DATED 07.08.2018 : The Parliamentary Standing Committee on Commerce has asked Reserve Bank of India to restore Letter of Undertakings ( LOU ) in a report tabled by it in Rajyasabha , as per media reports .
Reserve Bank of India had disallowed the practice of issuing LOUs in March 2018 , in the wake of large scale fraud happened in public sector lender Punjab National Bank . Punjab National Bank lost more than Rs 13,000 crores in the fraud said to be perpetuated by an officer in collusion with a group of diamond trading companies . Now the committee has noted that the sudden knee jerk reaction of RBI without consulting all the stake holders has raised the cost of credit by 2% to 2.5 % . Committee has alleged that RBI acted in haste without giving much thought and consideration while banning the LOU .
The committee has noted that the efficacy of Letter of Credits ( LC ) and Letter of Undertakings ( LOU ) was unmatched as a source of cheap overseas credit and they are accepted worldwide . It also has noted that cost effectiveness of India's imports have been adversely affected by such ban on LOUs . Further committee has expressed fear over job loss specially in MSME sector , because of the move by RBI . Hence the committee has recommended restoration of LOU with proper safeguards .
FRDI BILL TO BE SCRAPPED : MEDIA
DATED 20.07.2018 : The Financial Resolution and Deposit Insurance ( FRDI ) Bill which was introduced in the parliament in August 2017 is going to be scrapped by the government , as per media reports .
The bill which was introduced by the Government of India with a view to strengthen the protection and safeguarding the interest of depositors had come to criticism from several quarters . The bill had proposed to form a Resolution Corporation to monitor financial institutions , anticipate risk of their failure , take corrective steps and work out resolution plan . Further corporation was to take over critically ill financial companies and prepare a resolution plan .
The most controversial part of the bill was its Bail - in clause where depositors' money could be used to bail failing financial institutions . This clause created panic in the minds of depositors . Further there was no clarity about the quantum of deposit insurance in the new bill while depositors are presently insured up ro Rs 1.00 lakh presently .
With the scrapping of the bill , depositors who were worried about the bill may feel relieved .
DATED 20.07.2018 : The Financial Resolution and Deposit Insurance ( FRDI ) Bill which was introduced in the parliament in August 2017 is going to be scrapped by the government , as per media reports .
The bill which was introduced by the Government of India with a view to strengthen the protection and safeguarding the interest of depositors had come to criticism from several quarters . The bill had proposed to form a Resolution Corporation to monitor financial institutions , anticipate risk of their failure , take corrective steps and work out resolution plan . Further corporation was to take over critically ill financial companies and prepare a resolution plan .
The most controversial part of the bill was its Bail - in clause where depositors' money could be used to bail failing financial institutions . This clause created panic in the minds of depositors . Further there was no clarity about the quantum of deposit insurance in the new bill while depositors are presently insured up ro Rs 1.00 lakh presently .
With the scrapping of the bill , depositors who were worried about the bill may feel relieved .
NUMBER OF ON-SITE ATMS IN INDIA SHOW DECLINING TREND
Dated 09.05.2018 : Recent data released by Reserve Bank of India shows declining trend in number of ATMs serving bank customers in India. While Indian banks had 110,116 on-site atms , numbers of have reduced to 106,776 in March , 2018 as per bankwise statistics released by RBI on 8, May 2018 . However off-site ATMs have increased from 98,360 to 100,276 during the same period . Still total number of ATMS serving have come down from 208,476 to 207,052 .
Though reduction of ATMs in banking system is very small , statistics points out to the static state of banking facilities available in India in recent times . While there was rapid growth of alternate cash dispensing facilities in earlier times , now banks in India are consolidating the existing facilities . With introduction / enhancement of charges on ATM usage in recent times , customers may be forced to use other methods like on-line payment , cash wallets , debit cards etc . Otherwise customers may desist banking channels .
For RBI statistics dated 08.05.2018 , CLICK HERE
Dated 09.05.2018 : Recent data released by Reserve Bank of India shows declining trend in number of ATMs serving bank customers in India. While Indian banks had 110,116 on-site atms , numbers of have reduced to 106,776 in March , 2018 as per bankwise statistics released by RBI on 8, May 2018 . However off-site ATMs have increased from 98,360 to 100,276 during the same period . Still total number of ATMS serving have come down from 208,476 to 207,052 .
Though reduction of ATMs in banking system is very small , statistics points out to the static state of banking facilities available in India in recent times . While there was rapid growth of alternate cash dispensing facilities in earlier times , now banks in India are consolidating the existing facilities . With introduction / enhancement of charges on ATM usage in recent times , customers may be forced to use other methods like on-line payment , cash wallets , debit cards etc . Otherwise customers may desist banking channels .
For RBI statistics dated 08.05.2018 , CLICK HERE
RBI / GOVERNMENT ALLAYS FEARS OVER CASH CRUNCH
Dated 18.04.2018 : In the wake of widespread news about out of cash ATMs across the nation , Reserve Bank of India has allayed the fears about cash crunch in Indian economy , akin to the shortage faced by public after demonetisation of currencies . It has clarified that currency chests have sufficient currencies to cater to the needs of public . It has said that shortages might be in some pockets due to logistic problems or re-calibration of ATMs .
Newspapers reported that Finance minister Mr Arun Jaitley and Economic secretary Mr Subash Garg have also assured the public that there is no cash crunch and new notes were being printed in sufficient quantity . However media is abuzz with cash shortages and "no cash " boards in ATMs across India . Newspaper reports also suggest that more than 33,000 ATMs are unable to dispense cash . It seems problems with PSB ATMs are more acute compared with its private sector peers and in states of Andhra Pradesh , Telangana , Karnataka , Madhya Pradesh and Bihar .
For RBI Press Release dated 17.04.2018 , CLICK HERE
Dated 18.04.2018 : In the wake of widespread news about out of cash ATMs across the nation , Reserve Bank of India has allayed the fears about cash crunch in Indian economy , akin to the shortage faced by public after demonetisation of currencies . It has clarified that currency chests have sufficient currencies to cater to the needs of public . It has said that shortages might be in some pockets due to logistic problems or re-calibration of ATMs .
Newspapers reported that Finance minister Mr Arun Jaitley and Economic secretary Mr Subash Garg have also assured the public that there is no cash crunch and new notes were being printed in sufficient quantity . However media is abuzz with cash shortages and "no cash " boards in ATMs across India . Newspaper reports also suggest that more than 33,000 ATMs are unable to dispense cash . It seems problems with PSB ATMs are more acute compared with its private sector peers and in states of Andhra Pradesh , Telangana , Karnataka , Madhya Pradesh and Bihar .
For RBI Press Release dated 17.04.2018 , CLICK HERE
STANDARD AND POOR'S RETAINS INDIAN SOVEREIGN RATING :
Dated 24.11.2017 : International Credit rating agency M/S Standard & Poor's today kept India's sovereign Foreign currency and local long term credit rating BBB- unchanged . The short term rating continues to be at A-3 . The rating corresponds to the level of " Lower Middle " grade . The outlook remains "Stable " . It is reported that the Standard & Poor's rating is based on expectation of " Expectation of continued growth of GDP in next two years and managing sound external accounts of the country "
Dated 24.11.2017 : International Credit rating agency M/S Standard & Poor's today kept India's sovereign Foreign currency and local long term credit rating BBB- unchanged . The short term rating continues to be at A-3 . The rating corresponds to the level of " Lower Middle " grade . The outlook remains "Stable " . It is reported that the Standard & Poor's rating is based on expectation of " Expectation of continued growth of GDP in next two years and managing sound external accounts of the country "
MOODY'S UPGRADES INDIAN SOVEREIGN RATING :
Dated 17.11.2017 : International Credit rating agency M/S Moody's Investor Services today upgraded India's sovereign long term rating to Baa2 outlook stable from existing Baa3 . The short term rating continues to be at P2 . The rating corresponds to one level up in " Lower Middle " grade . It is reported that the decision of Moody's to upgrade is based on expectation of " Continued progress on economic and institutional reform will enhance India's high growth potential and a general decline in government debts "
Moody's also have India's long term foreign currency bonds to Baa1 from Baa2 and long term currency deposit ceiling to Baa2 from Baa3. Now both short term foreign currency bond ceiling and short term foreign currency deposit ceiling stand at P2 . Earlier short term foreign currency deposit ceiling was at P3 .
The rating agency has also warned that rating might be downgraded if fiscal metrics and fiscal consolidation deteriorates materially in future.
The immediate impact of the decision of Moody's is felt in the market today with NIFTY raising around 100 points to 10, 324 and Sensex jumping 330 points to 33,440 in the morning trade today . India rupee also improved around 47 paise U S dollar to 64.47 on the trade today . Further the upgrade is believed to be positive for Indian bond market .
Dated 17.11.2017 : International Credit rating agency M/S Moody's Investor Services today upgraded India's sovereign long term rating to Baa2 outlook stable from existing Baa3 . The short term rating continues to be at P2 . The rating corresponds to one level up in " Lower Middle " grade . It is reported that the decision of Moody's to upgrade is based on expectation of " Continued progress on economic and institutional reform will enhance India's high growth potential and a general decline in government debts "
Moody's also have India's long term foreign currency bonds to Baa1 from Baa2 and long term currency deposit ceiling to Baa2 from Baa3. Now both short term foreign currency bond ceiling and short term foreign currency deposit ceiling stand at P2 . Earlier short term foreign currency deposit ceiling was at P3 .
The rating agency has also warned that rating might be downgraded if fiscal metrics and fiscal consolidation deteriorates materially in future.
The immediate impact of the decision of Moody's is felt in the market today with NIFTY raising around 100 points to 10, 324 and Sensex jumping 330 points to 33,440 in the morning trade today . India rupee also improved around 47 paise U S dollar to 64.47 on the trade today . Further the upgrade is believed to be positive for Indian bond market .
MR MUNDHRA ALLAYS FEARS OVER WEAK BANKS :
Dated 19.07.2017 : In the wake of rumours floating over weak banks , Mr S.S. Mundhra , Deputy Governor of Reserve Bank of India has recently urged people not to fall prey to falsehood of misleading news about the future of weak banks . He has told that notion about impending collapse of banks due to poor asset quality is misleading and RBI has included certain banks for Prompt Corrective Action ( PCA ) for improvement of their asset quality . He also told " PCA will not imply that banks will cease normal banking activities including lending "
The list of bankers under PCA include IDBI Bank , Central bank of India , Indian Overseas Bank , Bank of Maharashtra , UCO Bank and Dena Bank who have higher Non Performing Assets and making losses in recent times . Banks under PCA have restrictions on issuing of dividends , opening branches , hiring and giving loans to companies rated below investment grade . . However it does not hamper day to day banking .
. The Deputy Governor expressed his displeasure over social media messages spreading false news about the future of some of the banks .Unsubstantiated rumours around these banks , mostly carried in social media , suggest closure of some of the banks or mergers with other public sector banks which has made customers of these banks panicky . Some messages have gone to the extent of asking viewers to withdraw deposits and close their bank accounts with these banks . The finance minister had earlier stated that India needs five or six global sized banks and it is expected that mergers of some of the Public sector banks will take place in order to build bigger banks . Recent merger of State bank group entities in to State Bank of India is giving credence to the possibility of further mergers .
OUR OPINION :
Customers of banks need not panic about the rumours as Reserve Bank of India has not allowed any major bank to fail in recent history . Even when mergers have taken place , RBI has taken sufficient steps to safeguard the interest of the customers of the weak banks which were merged with bigger / stronger banks . We hope the statement of Mr S.S.Mundhra will bring clarity on the situation .
Dated 19.07.2017 : In the wake of rumours floating over weak banks , Mr S.S. Mundhra , Deputy Governor of Reserve Bank of India has recently urged people not to fall prey to falsehood of misleading news about the future of weak banks . He has told that notion about impending collapse of banks due to poor asset quality is misleading and RBI has included certain banks for Prompt Corrective Action ( PCA ) for improvement of their asset quality . He also told " PCA will not imply that banks will cease normal banking activities including lending "
The list of bankers under PCA include IDBI Bank , Central bank of India , Indian Overseas Bank , Bank of Maharashtra , UCO Bank and Dena Bank who have higher Non Performing Assets and making losses in recent times . Banks under PCA have restrictions on issuing of dividends , opening branches , hiring and giving loans to companies rated below investment grade . . However it does not hamper day to day banking .
. The Deputy Governor expressed his displeasure over social media messages spreading false news about the future of some of the banks .Unsubstantiated rumours around these banks , mostly carried in social media , suggest closure of some of the banks or mergers with other public sector banks which has made customers of these banks panicky . Some messages have gone to the extent of asking viewers to withdraw deposits and close their bank accounts with these banks . The finance minister had earlier stated that India needs five or six global sized banks and it is expected that mergers of some of the Public sector banks will take place in order to build bigger banks . Recent merger of State bank group entities in to State Bank of India is giving credence to the possibility of further mergers .
OUR OPINION :
Customers of banks need not panic about the rumours as Reserve Bank of India has not allowed any major bank to fail in recent history . Even when mergers have taken place , RBI has taken sufficient steps to safeguard the interest of the customers of the weak banks which were merged with bigger / stronger banks . We hope the statement of Mr S.S.Mundhra will bring clarity on the situation .
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