ECONOMY - 2013 SEPTEMBER

September 1, 2

HSBC on 2nd September 2013 lowered India's GDP forecast for the financial year 2013-14 to 4 percent from 5.5 percent.

HDFC Bank Ltd launched its rural financial literacy initiative in Koteshwar village in Ahmedabad. HDFC Bank became the first bank to translate curriculum into Gujarati language.

Delhi's per capita income is more than Rs. 2 lakh per year in 2012-13 (According to Delhi development report 2013), Delhi stands on first in India.

Micromax acquired 22 percent of the Indian market share in the second quarter according to the latest IDC numbers.
* IDC stands for International Data Corporation

September 4

RBI announced that the Companies can use ECB for general corporate purposes.
Related Topics:
* ECB stands for external commercial borrowing
* ECB is an instrument used in India to facilitate the access to foreign money by Indian Corporations and PSUs (public sector undertakings)
* ECBs include commercial bank loans, buyers' credit, and suppliers’ credit, securitized
Instruments such as floating rate notes and fixed rate bonds etc.
* DEA (Department of Economic Affairs), Ministry of Finance, Government of India along with Reserve Bank of India monitors and regulates ECB guidelines and policies.

September 5

ICICI bank launched its “Branch on wheels” to offer basic banking services in villages.

September 6

Parliament passed a Pension Bill that aims to create a regulator for the sector and allows at least 26 per cent FDI.

September 7

The Reserve Bank of India has decided to introduce a US dollar-rupee swap window for fresh foreign currency non-resident (banks) dollar funds.
* Swap window will be operated on a daily basis on all working days.

* RBI will soon setup a committee to examine feasibility of encrypted sms-based fund transfers.
RBI on 6th Sep 2013 allowed the Non-Residential Investors including NRI’s to purchase shares of Indian entities under FDI scheme.
RBI announced some measures to curb the demand for gold in the month of Sep 2013 considering one of the major reasons for widening the current account deficit (CAD).
The Foreign Investment Promotion Board has cleared gold-loan company Muthoot finance’s proposal to set up white leble ATM’s in the country.
* 65% of the ATM’s would be located in semi urban and rural areas.

Tata Communication’s payment solutions ltd (TCPSL) is the first company to launch first white label ATM under the brand Indicash.
* ATM was located at Chandrapada near Mumbai.
SEBI barred 34 entities from capital markets for fraudulent dealings in the shares of 12 companies.

September 9

Retirement fund body EPFO is likely to announce an interest rate of 8.5 per cent on provident fund deposits for 2013-14.
* EPFO Stands for Employee’s Provident Fund Organization.

September 11

Making garlands of currency notes has been sought to be discouraged by the Reserve Bank of India.

One third of the food produced worldwide is wasted, costing the global economy around $750 billion (570 billion Euros) a year, a new report by the UN food agency.
State bank of India announced that the eligibility limit for loan issuance for salaried individual for car purchase has been raised from Rs 2.5 lakh per annum to Rs. 6 lakh per annum.

September 12

Karur Vysya Bank has won the Best Banker Growth-Mid Sized award in the second edition of 'The Sunday Standard Best Bankers’ Awards 2013.

People belonging to weaker sections in the country can also open zero balance accounts in foreign banks.
According to UN agency UNCTAD report Indian economy is likely to grow at 5.2 per cent in 2013.
ICICI has announced the launch of its next generation Credit Card ICICI Bank Carbon in partnership with Visa.
Central Bank of India, Suvidhaa and MasterCard launched a prepaid card named Channel Card for retailers.

September 13

Prime Minister's key economic adviser C Rangarajan lowered the growth forecast for the current fiscal to 5.3 per cent from 6.4 per cent.
The government announced its decision to buy $4.3 billion worth of World Bank's special private placement bonds (SPPBs).
* With this decision India could remain eligible for the global lender's low-cost funding for various domestic infrastructure projects..

September 14

The Reserve Bank of India (RBI) has decided to offer two-day funds to banks through the marginal standing facility (MSF).
The government approved the proposal of Rs. 700 crore capital infusions in Export-Import Bank of India to support future growth of the lender.

Asian Development Bank (ADB) sanctioned a project with funds to develop a water supply system in Agartal, Tripura.

September 15

World Bank president announced that China is likely to achieve its growth target of 7.5 per cent this year.

September 18

Wholesale Price Index (WPI) for all commodities (Base year 2004-2005), in the month of August 2013 stood at 6.1 percent as compared to 5.79 percent in July 2013. This is the highest inflation in six months.

* Wholesale Price Index (WPI) indicates the inflation in the Country.

The Union Minister of Finance, P. Chidambaram announced the strictness measures such as a complete ban on the creation of non-plan and plan posts, as well as a slash in the non-plan expenditure by 10 percent.

Net direct tax collections for the current financial year (2013-14),up to 17th September 2013 increased 238325 crore Rupees from 211641 crore Rupees compared to 2012-13, up to 17th September 2012, showing a growth of 12.5 percent.

Corporation tax:
* Corporate tax collections were increased to 146610 crore Rupees from 135791 crore Rupees compared to 2012-13, which is a growth of 7.97 percent.

Income Tax:
* Income tax collections were increased to 89006 crore Rupees from 65752 crore Rupees compared to 2012-13, which is a growth of 21.08 percent.

The Government of India on 18 signed an agreement with Latvia on Double Tax Avoidance Agreement (DTAA) and the Prevention of Fiscal Evasion with respect to Taxes on Income.

* The Agreement and the Agreed Note were signed by Salman Khurshid, External Affairs Minister of India and Mr. Edgars Rinkevics, Minister of Foreign Affairs of Latvia.

* Latvia is the third Baltic country with which DTAA has been signed by India. Earlier DTAAs were signed with Lithuania and Estonia.

September 19

Reserve Bank of India (RBI) on 19th September 2013 announced that banks can open their branches in Tier I centers without taking its permission in each case. But RBI imposed some conditions to open branches.

* According to 2011 census Tier I center are those with population above 1 lakh.

* Conditions Imposed by Reserve Bank of India (RBI).

RBI passed the guidelines under following conditions:

* Banks should open 25 percent of their branches in a financial year in Un - banked tier - V and tier - VI centers as earlier.

* Total number of branches in tier – I center’s can’t exceed the number of branches opened in tier - II to tier - VI centers during a year.

* If the banks are unable to open all tier – I branches during that year, they can carry it over for next two years.

* If the banks unable to open requisite branches in tier - II to tier - VI centers for some reason, it should necessary rectify the shortfall in the next financial year.

September 21

The Reserve Bank of India (RBI) increased the repo rate or the short term lending rate by 25 basis points to 7.5 percent from 7.25 percent with immediate effect. This means that the repo rate has been increased by 0.25 percent.
The Governor of RBI, Raghuram Rajan while reviewing the monetary policy for the first time as a Governor, however, brought down the marginal standing facility (MSF) rate by 0.75 percent to 9.5 percent.

* The cash reserve ratio (CRR) remained unchanged at 4 percent

September 24

The Finance Ministry clarified that ‘auxiliary educational services’ such as hostels, canteen and school buses will not attract 12 percent services tax.
ONGC is to explore share gas in the Cambay Basin. It will spend nearly Rs. 150 - 200 crore to drill the first set of wells starting next month N.K Verma, Director (Exploration) of India’s largest explorer.

Reliance Life Insurance has launched life insurance policies in electronic demat form across all its products.

Moody’s has lowered its outlook for India’s GDP growth to 4.5 percent per 2013-14 from 5.5 percent.

India’s Tata Consultancy Services (TCS) in partnership with GE and Saudi Aramco launched first all-female business process outsourcing (BPO) centre in Saudi Arabia that will create nearly 3,000 jobs in the Gulf kingdom.

Tata Communications Payment Solutions Ltd (TCPSL), a wholly owned subsidiary of Tata Communications Ltd.

September 25

Global beverages and snacks major PepsiCo is looking to enhance potato procurement in India by around 20 percent to 65 percent through its tie-up with farmers in the next five years.

Making a strong case for approval of their proposed airline JV Tata Group and Singapore Airlines have said that the joint venture (JV) would create significant job opportunities in India, boost aviation sector and would boost the country’s image as an international investment destination.

Reserve Bank of India on 25th September 2013 banned zero percent interest rate schemes for purchase of consumer goods. The decision has taken in order to protect consumer interest.

September 26

The Union government of India notified GAAR (General Anti Avoidance Rules) which seeks to check tax avoidance by investors routing their funds through tax havens.
* It will come into effect from 1st April 2016 and applies to foreign institutional investors, FIIs that claim benefits under any Double Tax Avoidance Agreement (DTAA) of at least 3 crore rupees.

September 27

The Egyptian Iron and Steel Company signed a contract with UK-based Tata Steel Consulting, a subsidiary of Tata to boost its production levels.
* The Egyptian Iron and Steel Company largely state-owned company has been Suffering from chronic losses in the past years, which reached 98 million US Dollar in the third quarter of the 2012 - 13 fiscal year.

Egypt
* Capital: Cairo
* Currency: Egyptian Pound
* President: Aldi Mansour
* PM: Hazem Al Beblawi

UK
* Capital: London
* Currency: Pound Sterling
* PM: David Cameroon
The Finance Ministry approved 15 foreign investment proposals totalling Rs. 2,000 crore and recommended two FDI applications, including that of US drug major Mylan, for final Cabinet clearance. The 15 proposals were cleared following recommendations by Foreign Investment Promotion Board (FIPB) on August 27th.

Banks have to bear the cost of fraudulent credit card transaction through point of sales (POS) that do not have prescribed security features. The credit card issuing bank has to ascertain within three working days from the date of receiving the complaint whether the respective POS terminal where the fraud occurred comply with mandated security features. If it is found that the POS terminals do not have prescribed security features, the issuing bank shall pay the disputed amount to the customer within seven working days, failing which a compensation of Rs. 100 per day will be payable to the customer from the eighth working day.

The Reserve Bank of India in a notification said that urban cooperative banks (UCBs) with total deposits of over Rs. 750 crore will come under scheduled bank category, if they fulfill certain listed criteria. All the public sector banks, private sector banks, foreign banks, regional rural banks are part of the second schedule.

September 30

RBI said that High imports of gold and oil pushed Current Account Deficit (CAD) to 4.9 percent of GDP to $21.8 billion in the April-June quarter of the current fiscal CAD means the difference between inflow and outflow of foreign exchange.

The National Bank for Agriculture and Rural Development (NABARD) has opened a lending window for private sector from the creation of warehouse space and also to set up cold storages and cold chains in Karnataka.

The famous company Apple is the most valuable brand in the world, according to a closely followed annual report.

 

 

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