Finance
Cash spending during elections 22 per cent higher this time
Incremental currency in circulation since the election commission announced the election date in March till the last phase of election at Rs 89,080 crore as of June 7 was 22 percent higher than Rs 72,680 crore in the same period of 2019 elections. This could be probably due to the impact of COVID related disruptions and the surge in inflation over the five year period.
Modi govt releases Rs 1.4 lakh crore installment of tax devolution to states
The Ministry of Finance on Monday announced the release of an additional installment of tax devolution to states for June 2024. The objective of the move is to support state finances and spur economic development, it said.
RBI brings 100 MT gold reserve from UK to India; nothing more should be read into it: Shaktikanta Das
The Reserve Bank of India has transferred 100 metric tonnes of gold from the UK to India, citing sufficient domestic storage capacity. Governor Shaktikanta Das emphasized that this move does not signify any deeper implications, highlighting the country's evolving gold reserves strategy and a more balanced local and foreign gold holding distribution.
RBI to set up digital payments intel platform after cyber frauds spike over 700%
The Reserve Bank of India (RBI) Governor, Shaktikanta Das, announced the launch of a digital payments intelligence platform to address the recent rise in bank and digital frauds.
India, US, 12 others likely to ink pact today to meet climate financing goal
India, the US, and a dozen other nations are poised to sign a Clean Economy Agreement under the Indo-Pacific Economic Framework, aimed at meeting climate objectives through collaborative financing. The agreement, to be signed at a Singapore meet, focuses on improving market conditions and reducing barriers for low-carbon projects. While the pact is in its final stages of approval, experts caution against allowing imports of genetically modified seeds and foods under the guise of food security.
India set for first current account surplus in 10 quarters by Q4FY24: Ind-Ra
India's current account balance (CAB) is projected to reach a surplus of approximately USD 6 billion in Q4 2024, marking the first surplus since Q1 2022. However, the overall CAB for FY24 is expected to remain in deficit at 0.6% of GDP, the lowest since FY17. The global economic environment is showing signs of improvement for 2024, with easing inflationary pressures and robust economic growth in the US and emerging markets.
PFRDA reviews strategies for expansion and distribution of NPS
Almost 63% of the enrolments in the voluntary segment (UoS-All Citizen) were sourced through the extensive efforts of PoPs, which include banks, NBFCs, stockbroking firms, fintech companies and pension funds, it said. "During the year, 3,112 corporates got registered under the NPS corporate model, which has been the highest number so far," the statement said.
FY24 GDP growth at 8.2 pc great news for India: Panagariya
Arvind Panagariya, the chairman of the 16th Finance Commission, praised India's GDP growth rate of 8.2% for the fiscal year 2023-24, calling it "great news for India." However, the National Statistical Office (NSO) reported that India's economy grew at a four-quarter low of 7.8% in the March quarter. The GDP growth rate for the fiscal year 2023-24 surpassed the 7% recorded in the previous fiscal year. ICRA Chief Economist Aditi Nayar noted a sequential slowdown driven by investment activity, while PHDCCI President Sanjeev Agrawal highlighted the growth as a reflection of efforts towards "Viksit Bharat by 2047."
CBDC usage soars 39-fold among retail users, plunges in wholesale
In the wholesale segment, the outstanding amount stood at ₹8 lakh in March 2024, from ₹10.6 crore last year, and in the retail segment, the amount climbed to ₹234 crore in March 2024, from ₹6 crore last year. India's CBDC, the Digital Rupee (e₹), is a digital form of its official currency, introduced after the FY23 budget.
Sharp drop in provisions helped RBI transfer bumper dividend to RBI
The Reserve Bank of India's income rose 15% last fiscal due to higher interest income from bond holdings and a sharp drop in provisions transferred to the Contingency Fund, enabling a record dividend payment to the central government.
Must Watch
Timely rescue of firms pushes IBC recovery to 49%
Creditors in India have been able to recover nearly half of their claims under the Insolvency and Bankruptcy Code (IBC) when the resolution is completed within the 330-day deadline. However, delays have lowered the proportion of money recovered. The IBC was introduced eight years ago and has been the most challenging to address due to litigation-related holdups. Experts have called for amendments to the IBC to address this issue.
Pledged $2.6 bn sovereign loans to India in 2023: ADB
The Asian Development Bank (ADB) has pledged $2.6 billion in sovereign lending to India in 2023 for projects aimed at urban development, industrial corridor projects, power reforms, climate resilience, horticulture, and connectivity. The multilateral lender also committed over $1 billion for private sector projects and extended $23.53 million in technical assistance and $4.1 million in grants.
ADB commits USD 2.6 billion in sovereign lending to India
Asian Development Bank (ADB) committed USD 2.6 billion (about Rs 21,500 crore) in sovereign lending to India in 2023 for various projects. The fund is aimed to strengthen urban development, support industrial corridor development, promote power sector reforms, build India's climate resilience, and enhance connectivity.
IBC recoveries down even as resolutions soar in FY24
The recovery from defaulters under the Insolvency and Bankruptcy Code (IBC) in India decreased in 2023-24 despite 42% more cases being resolved. The realisation for creditors from the resolution of stressed companies decreased to ₹47,653 crore from ₹55,449 crore in 2022-23. Long delays in resolution led to larger haircuts for lenders.
RBI tells money changers to avoid build-up of idle foreign currency balances
“Data of such sale and purchase should be maintained and made available for audit / inspection,” the RBI said. Central bank norms allow full fledged money changers to obtain their normal business requirements of foreign currency notes from other full fledged money changers and authorised dealers in India.
Dividend income fuels surge in personal income tax: Motilal Oswal report
The transition from corporation-based dividend taxes to personal income taxes has been a major driver of the increased PIT in recent years. This shift has not only changed the tax dynamics but also underscored the substantial contribution of high-income earners to the tax pool through their dividend receipts.
